Crypto Firms Pour Millions into Trump Inaugural Committee

The cryptocurrency industry has emerged as a significant player in political funding, with major firms contributing substantial sums to the Trump U.S. Presidential Inaugural Committee. In a recent filing to the Senate, it was revealed that prominent cryptocurrency companies such as Coinbase, Crypto.com, Galaxy Digital, and Paradigm Operations each contributed $1 million to the committee. Additionally, Robinhood Markets made a notable donation of $2 million. These contributions are projected to surpass the financial support received during the 2017 inaugural ceremony, indicating a growing influence of the crypto industry in political funding.

The Inaugural Committee is scheduled to release a comprehensive list of all contributors to the Federal Election Commission (FEC) by April 19th. This disclosure may further alter the landscape of political donations intertwined with the cryptocurrency market. As the crypto industry continues to gain prominence, its role in political financing is expected to grow, potentially reshaping the political funding landscape.

However, not all investors are enthusiastic about the growing influence of cryptocurrencies in politics. A $71 billion hedge fund, Elliott Management, has warned that President Donald Trump's support for cryptocurrencies could end in disaster. In an investor letter, the fund cautioned that crypto prices have soared with "no substance" and that politicians backing crypto are playing a dangerous game. The hedge fund sees parallels with the AI boom and sky-high stock prices, calling investors "a crowd of sports bettors." However, it considers crypto to be "ground zero" for the mania, thanks to its "proximity to the White House."

The hedge fund, which managed $69.7 billion in assets under management in 2024, warned that any official pushing alternatives to the greenback is making a "profoundly dangerous" move. Trump's business ties to crypto are growing, with his involvement in a decentralized finance fund called World Liberty Financial and the launch of meme coins Official Trump (TRUMP) and Melania (MELANIA). Trump Media, where he owns a majority stake, also plans to invest up to $250 million in crypto. Despite these developments, the hedge fund remains critical of Trump's policies and has donated to a Trump PAC in the past.