Trump has normalized crypto. Is it the path to the next financial collapse? | Eduardo Porter
News Source
β’Sat, 18 Jul 2026 10:00:02 GMT
π° What Happened
Eduardo Porter's Guardian opinion piece argues that Donald Trump has normalized cryptocurrency in ways that could lead to the next financial collapse. Trump made $1.2 billion from the crypto industry in his first year in office, according to revelations about his personal fortune of $2.2 billion. His administration pushed regulators off crypto's case and plugged the currency directly into the US financial system.
The article warns that crypto is uninsured, unregulated, and highly volatile. Trump's cheerleading has given it legitimacy it did not have before. Porter argues that Trump's most worrying action is putting the stability of the US economy at risk for personal profit. He refused to put his businesses in a blind trust, unlike previous presidents, creating conflicts of interest.
π The Backstory
Cryptocurrency has been a controversial financial technology since Bitcoin was created in 2009. It has survived multiple crashes, scandals, and fraud cases including the collapse of FTX in 2022. Before Trump, both Republican and Democratic administrations took a cautious approach to crypto regulation.
Trump changed all that. He appointed crypto-friendly regulators, promoted Bitcoin at conferences, and his family launched their own crypto ventures. Critics say this creates dangerous conflicts of interest. If the crypto market crashes, as it has several times before, the losses would now affect a much wider part of the financial system because banks and investment funds have been allowed to hold crypto. The lack of insurance means taxpayers could be on the hook for a bailout.
π― Why It Matters
If crypto crashes again, it could take the whole financial system with it this time. For ordinary people, that means their savings, pensions, and jobs could be at risk from a largely unregulated market.
Eduardo Porter's Guardian opinion piece argues that Donald Trump has normalized cryptocurrency in ways that could lead to the next financial collapse. Trump made $1.2 billion from the crypto industry in his first year in office, according to revelations about his personal fortune of $2.2 billion. His administration pushed regulators off crypto's case and plugged the currency directly into the US financial system.
The article warns that crypto is uninsured, unregulated, and highly volatile. Trump's cheerleading has given it legitimacy it did not have before. Porter argues that Trump's most worrying action is putting the stability of the US economy at risk for personal profit. He refused to put his businesses in a blind trust, unlike previous presidents, creating conflicts of interest.
Cryptocurrency has been a controversial financial technology since Bitcoin was created in 2009. It has survived multiple crashes, scandals, and fraud cases including the collapse of FTX in 2022. Before Trump, both Republican and Democratic administrations took a cautious approach to crypto regulation.
Trump changed all that. He appointed crypto-friendly regulators, promoted Bitcoin at conferences, and his family launched their own crypto ventures. Critics say this creates dangerous conflicts of interest. If the crypto market crashes, as it has several times before, the losses would now affect a much wider part of the financial system because banks and investment funds have been allowed to hold crypto. The lack of insurance means taxpayers could be on the hook for a bailout.
If crypto crashes again, it could take the whole financial system with it this time. For ordinary people, that means their savings, pensions, and jobs could be at risk from a largely unregulated market.