Political Undercurrents Amid the Cryptocurrency Boom: Profitability Doubts and Regulatory Challenges

CN
15 hours ago

On May 11, 2025, U.S. President Donald Trump responded to questions from reporters regarding the profitability of his personal cryptocurrency "Trump Coin" ($TRUMP), stating that he "hasn't even paid attention" to the related earnings, and directly pointed fingers at former House Speaker Nancy Pelosi, insinuating that she profits from insider information.

According to a post by X platform user @unusual_whales on May 11, 2025, Trump stated in response to a reporter's question about whether he profits from cryptocurrency: "I haven't even paid attention. If I own stock in a company and I'm doing well, the market is up, I think I'm profiting. But the real profit goes to people like Pelosi who use insider information."

Since its launch on January 17, 2025, "Trump Coin" has seen its market value soar to $27 billion, thanks to Trump's personal brand effect and political influence. The Trump family, through their companies CIC Digital LLC and Fight Fight Fight LLC, holds 80% of the tokens, with a book value exceeding $20 billion. However, the token's price subsequently experienced severe fluctuations, leading to losses of $2 billion for over 813,000 crypto wallets within three weeks, raising widespread suspicions about "market manipulation." Additionally, Chainalysis data shows that Trump and his allies profited nearly $900,000 from token transaction fees within two days of its issuance, further intensifying public discussions about the compliance of his "presidential coin issuance."

Trump likened his role to that of an ordinary investor, claiming that the profits from a rising market are normal and not a result of deliberate manipulation. However, this argument is unlikely to fully quell concerns about potential conflicts of interest. After all, the Trump family holds 80% of "Trump Coin," and the timing of the token's issuance coincided with the eve of his second inauguration, making it hard not to think of the possibility of leveraging his presidential identity to empower his personal brand.

His accusation against Pelosi of "using insider information" directly touches on a long-standing sensitive topic in American politics. Nancy Pelosi's husband, Paul Pelosi, has faced controversy for his precise investments in tech stocks, with his trading timing often closely aligned with congressional legislative processes. In April 2025, Time magazine reported that Paul Pelosi accurately purchased related stocks during the period when Congress finalized legislation affecting tech stocks, achieving investment returns that even surpassed "Oracle of Omaha" Warren Buffett. Although Pelosi herself has repeatedly denied direct involvement in stock trading, the rapid growth of her family's wealth has always drawn public criticism.

By targeting Pelosi, Trump is employing both a political strategy and a precise grasp of public sentiment. In recent years, there has been increasing criticism in American society regarding politicians using their power for insider trading. In 2022, Congress attempted to push the "Ban Congressional Stock Trading Act," but it ultimately stalled due to bipartisan disagreements. Trump's remarks undoubtedly capitalize on this hot topic, shaping himself as an "outsider" while shifting the moral pressure of profiting from cryptocurrency onto the Democratic camp.

Since his election in 2024, Trump has vigorously promoted pro-cryptocurrency policies, including establishing a strategic Bitcoin reserve, appointing crypto-friendly individuals to his cabinet, and withdrawing enforcement actions against companies like Coinbase. These measures have driven Bitcoin's price to surpass $100,000 by the end of 2024 and reach a peak of nearly $110,000 in early 2025, although it later fell back to around $80,000 due to market fluctuations.

However, Trump's cryptocurrency strategy is not without risks. Nanjing University researcher Ma Bo pointed out that the extreme volatility of cryptocurrency prices poses challenges for financial fund management, and digital assets are susceptible to hacking, as evidenced by the $1.4 billion Ethereum theft incident at Bybit exchange in early 2025. Furthermore, the Trump family's direct involvement in the issuance of "Trump Coin" blurs the lines between political power and personal interests, drawing strong criticism from ethics experts. Former Coinbase executive Nick Tomaino bluntly stated that Trump's actions are "predatory" and could harm the long-term reputation of the crypto industry.

X platform user @BitXsocn commented that Trump's response "sounds like a mouthful," suggesting that while his strategy of blaming Pelosi is clever, it fails to cover up his own controversies.

Public opinion is polarized. Supporters believe that Trump's willingness to publicly name Pelosi highlights his determination to confront the "establishment"; critics point out that his nonchalant attitude towards the profits from "Trump Coin" reveals his intent to evade responsibility. Richard Painter, a former ethics lawyer for President George W. Bush, stated that Trump's remarks could trigger an investigation by the U.S. Securities and Exchange Commission (SEC) into market manipulation, especially since similar doubts have arisen after his previous posts led to a surge in U.S. stocks due to tariff policies.

Trump's statement, on the surface, addresses questions about personal profit, but in reality, it reflects the intertwining of U.S. politics and the cryptocurrency market in 2025. As the Trump administration continues to push for deregulation in the crypto industry, it may stimulate market enthusiasm in the short term, but in the long run, the lack of a clear regulatory framework could exacerbate market volatility and fraud risks. The Federal Deposit Insurance Corporation (FDIC) has already warned that regulatory gaps could lead to a repeat of the 2022 FTX collapse.

Regarding the "insider trading" issue represented by Pelosi, Trump's accusations hit the mark but could also be a double-edged sword. Public scrutiny of politicians' sources of wealth will not be limited to the Democratic Party; the Trump family's substantial holdings in the cryptocurrency market may also become a focal point for future investigations. It is foreseeable that cryptocurrency, as a new battlefield for political capital, will continue to spark controversy during Trump's second term.

This article represents the author's personal views and does not reflect the stance or views of this platform. This article is for informational sharing only and does not constitute any investment advice to anyone.

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