Cryptocurrency companies are making significant financial contributions to Trump’s inauguration, with major players like Ripple, Kraken, and Coinbase leading the way. However, there are questions about the nature of these multi-million dollar donations, whether they are strategic moves or borderline bribery.
Cryptocurrency companies are donating a lot of money to the upcoming inauguration of President Donald Trump, with big names like Kraken, Coinbase, and Ripple participating. The cryptocurrency industry is hoping to build a good relationship with the incoming administration.
But the big question is: Are these donations a smart investment in the future of cryptocurrencies, or are these companies just trying to win their favor to secure better regulations for themselves?
Huge donations from crypto giants
Ripple joins the race by donating $5 million in XRP tokens to Trump. Ripple: “We believe in supporting initiatives that help drive innovation and technology forward.”
Kraken, another major crypto exchange, has also committed $1 million. Ondo Finance is following suit with a $1 million commitment after a Trump-linked DeFi project invested $250,000 in the ONDO token. “We’re happy to support an administration that understands the value of digital assets,” said founder Tim Draper.
Coinbase and MoonPay also joined in, with Coinbase donating $1 million even before the election results. “This donation demonstrates our commitment to building relationships with policymakers who understand the future of finance,” said Brian Arms, Coinbase CEO.
Cryptocurrency companies have long been donating to the campaign. Elon Musk, who supports cryptocurrencies like Dogecoin, played a major role in supporting Trump. His support helped bring attention to cryptocurrencies during the campaign.
Ripple's donations during the campaign were a strategic move to ensure that the new administration understands the cryptocurrency industry.
The donations are part of a larger effort that raised more than $200 million for Trump’s inauguration, breaking previous fundraising records, while companies like Amazon and Meta also contributed significantly.
Why the entire crypto industry is in favor of Trump
The main reason behind these donations is that the cryptocurrency industry needs clearer rules. For a long time, cryptocurrency companies have faced uncertainty about the legal status of digital assets in US agencies, such as the Securities and Exchange Commission, which has muddied the regulatory waters.
Trump's pro-business approach and promises to reduce regulations make him a key figure in the cryptocurrency industry.
Coinbase is committed to working with the administration and both sides of Congress to create regulatory clarity for cryptocurrencies, said Kara Calvert, Coinbase’s vice president of U.S. policy. “That’s why we committed to supporting President Trump’s dent phase and eventual inauguration well before the election.”
During his campaign, Trump hinted at making regulations less stringent, which made him an attractive candidate for crypto leaders who feel Biden’s policies are restrictive.
Many of the donations came even before the election results were in, which could be interpreted as these companies strategically aligning themselves with the Trump administration early on.
Coding Friendly Timings
The crypto industry’s early support for Trump has been repaid with high-profile appointments to his administration. Trump has tapped Paul Atkins, a well-known cryptocurrency advocate, to lead the Securities and Exchange Commission.
Ripple CEO Brad Garlinghouse hailed the appointment, hoping it will lead to less stringent regulation than outgoing SEC Chairman Gary Gensler.
Trump also appointed David Sachs as the first “chief cryptocurrency and artificial intelligence officer,” indicating that his administration is friendly toward digital assets. However, the appointment may face some skepticism, according to reports.
With over $200 million already pledged, these donations show that the crypto industry wants a tron relationship with the Trump administration. The timing and size of these donations point to a strategic move to influence future regulations.
While it is unclear whether this will lead to the changes they hope for, one thing is certain: the cryptocurrency industry is making its voice heard, and is investing heavily in securing a safe environment for cryptocurrencies.