Trump hated crypto before he loved it. So what? That’s half the community

The Daily Telegraph thinks it’s funny. Donald Trump hated crypto, called Bitcoin a scam, and slammed it as competition for the dollar. Now he’s calling himself the “crypto president.”

The paper paints his conversion as some kind of warning sign, a red flag waving over the world. But let’s get real — half of the crypto community used to not care for Bitcoin too. Trump isn’t the first skeptic turned believer, and he won’t be the last. That’s literally the whole point of the industry.

Jeremy Warner, assistant editor at The Telegraph, recalled Trump’s 2021 Fox News interview, where he said, “Bitcoin, it just seems like a scam” to claim Trump’s love for crypto is “positively Damascene,” before going on to label his pro-crypto plans as reckless.

Trump’s crypto team: A lineup designed to disrupt

Trump’s administration is staffing up with some of the biggest names in the game. Paul Atkins, the crypto-friendly former SEC commissioner, is set to take charge of the agency. This guy was investing in Bitcoin back in 2011. Yeah, that’s a true believer.

Then there’s David Sacks, a tech veteran and proud blockchain lover. He’s stepping into a newly created role as the White House’s “AI and crypto czar,” though as we reported, he had to delegate some of his responsibilities to the Crypto Council, led by Bo Hines.

Stephen Miran, the nominee for Chair of the Council of Economic Advisers, adds to this powerhouse roster. He’s been a vocal critic of heavy-handed crypto regulation and promises to push for a lighter touch on policies affecting blockchain innovation.

But the biggest headline grabber might be Howard Lutnick, Trump’s pick for Commerce Secretary. Lutnick has a 5% stake in Tether, one of the world’s largest stablecoin issuers. Plus, he’s well-liked in the crypto community. The nerds go crazy for him on X (formerly Twitter).

It doesn’t stop there. Trump and his sons, Eric and Don Jr., have launched World Liberty Financial, a crypto venture touting “no direct oversight by government agencies.” However, some people, like Warner, think he only launched it to make money.

But is there a single person in the world who isn’t in anything to make money? What a ludicrous argument! If the paper had a 45% stake in Trump’s company, bet they wouldn’t think the same.

Deregulation fears: A recipe for disaster or crypto’s big break?

The Telegraph sees Trump’s crypto enthusiasm as dangerous. Warner argues that deregulating crypto will open the floodgates for fraud, money laundering, and financial crises.

He pointed to the fallout from the Sam Bankman-Fried scandal. Bankman-Fried, who once ran the massive FTX exchange, is now serving 25 years for fraud and money laundering tied to crypto.

To Warner, Trump’s promises of deregulation signal a replay of past financial disasters. Sadly, history does back up some of these concerns. Deregulation has often led to massive blowups, like the 2008 financial crisis. Warner’s argument is simple: loosen the leash on finance, and in five to ten years, expect disaster.

He sees Trump as the lobbyist’s dream, a champion for vested interests eager to cash in on America’s crypto boom. But for crypto believers, deregulation is the key to breaking the industry free from its current limitations.

The crypto market, now worth nearly $3.5 trillion, has bounced back from its 2022 meltdown. Bitcoin has crossed $100,000, and institutional investors are piling in. The optimism surrounding Trump’s crypto-friendly policies has injected new energy into the market.

Still, Warner cautions that lifting restrictions on banking exposure to crypto could create systemic risks that affect the global financial system.

But while The Telegraph can raise all the red flags it wants, Trump’s crypto strategy isn’t going anywhere. Whether it’s deregulation, pro-crypto appointments, or the launch of a national Bitcoin strategic reserve, Trump will do what he wants in the end, regardless.