Crypto Assets have become a key force in American politics

The Crypto Assets industry has recently rapidly become a central player on the American political stage. The Trump family's investments, the friendly attitude of regulatory agencies, and the industry's large election expenditures have all contributed to this change.

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In late April, a small logistics company in Texas announced plans to invest $20 million in purchasing TRUMP Meme coin, a Crypto Asset launched by Trump three days before he took office. The same week, Pakistan entered into a partnership with the Trump family's company World Liberty Financial(WLF), raising speculation about Pakistan's attempts to curry favor with Trump.

These events reflect the changes happening in Washington. Crypto Assets are on the rise, promoted by the President and his family. Regulatory agencies are adopting a more lenient attitude towards it. Investors are flocking in. Large lobbying groups are emerging like mushrooms after rain, supporting pro-Crypto Assets politicians. This young industry suddenly finds itself at the center of American public life.

The speed at which the Crypto Assets industry has rapidly ascended from the margins to become an official darling is astonishing. At the beginning of Trump's first term, the global total market value of Crypto Assets was less than $20 billion. Now it has exceeded $3 trillion. The attitude of regulatory agencies has also undergone a significant shift. The U.S. Securities and Exchange Commission (SEC) now takes a narrower definition of which Crypto Assets qualify as securities. Since Trump took office, more than a dozen enforcement actions against Crypto companies have been halted.

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The Trump family has been increasing its investments in the Crypto Assets sector. The USD1 stablecoin launched by WLF company has surpassed a market capitalization of 2 billion dollars. Trump also owns the TRUMP Meme coin, which once reached a market cap of about 15 billion dollars. First Lady Melania has also launched her own Meme coin. The Trump Media and Technology Group has also announced a partnership with Crypto.com to sell ETFs involving digital assets.

Crypto Assets may have become the Trump family's largest single line of business. The TRUMP Meme coin held by the family alone is valued at nearly $2 billion, which is comparable to the total of all their real estate, golf courses, and clubs.

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Large election pressure groups are also making significant investments to promote the interests of the encryption industry. Super PACs like Fairshake spent over $130 million on the eve of last year's elections. Fairshake still has $116 million in cash, ready to deploy for the midterm elections in 2026.

The crypto industry hopes that Congress will classify most crypto assets as commodities, regulated by the smaller Commodity Futures Trading Commission (CFTC). However, the Trump family's crypto craze is making it harder for the industry to gain enough support in Congress. Trump's apparent conflicts of interest have drawn criticism from Democratic lawmakers.

Some industry leaders privately criticize the president's investment in Crypto Assets, fearing it may hinder the passage of favorable legislation. Nevertheless, supporters of Crypto Assets remain optimistic about the industry's prospects, while also acknowledging the existence of real conflicts of interest.

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