Washington — Over recent years, Crypto.com found itself heavily scrutinized under the Biden administration’s efforts to regulate the cryptocurrency industry, with financial regulators preparing enforcement actions against the firm. However, after Donald Trump was elected president in 2024, the regulatory investigation into Crypto.com quickly dissipated. Following this shift, the company increased its political donations to committees linked to Trump and hired a lobbyist close to the new president. Within months of these developments, the government investigation was halted.
In August, Crypto.com revealed it would invest nearly $1 billion in a new venture alongside Trump’s social media company, Trump Media and Technology Group, marking a significant partnership. This alliance raised concerns among legal and ethics experts about potential conflicts of interest, as Trump’s presidency appears unique in maintaining business ties with entities subject to federal regulation. The deal notably provided Trump Media, which has faced substantial financial losses since 2021, with a considerable ownership stake in the newly formed treasury for Crypto.com’s Cronos token while requiring a minimal upfront investment from Trump’s company.
Ethics experts highlighted that previous administrations have worked hard to avoid even appearances of personal profit from the presidency, whereas this situation signifies what some describe as a pay-to-play environment. Crypto.com emphasized its alignment with companies that support cryptocurrency and hailed Trump Media as an innovator in digital media. Meanwhile, Trump Media dismissed inquiries about the deal as politically motivated.
Despite assurances from the White House that Trump has taken measures to prevent conflicts of interest, including placing his business holdings in a trust managed by his sons, critics remain skeptical. Trump Media, primarily known for the Truth Social platform launched in 2022, has expanded into new areas such as streaming, financial services, and crypto, reflecting a marked change in Trump’s stance on digital currencies since leaving office.
Crypto.com’s earlier regulatory troubles under the Biden administration, including anticipated SEC charges, were reportedly postponed due to negotiations that coincided with the transition of presidential power. Shortly after Trump’s inauguration, Crypto.com made significant political contributions and increased lobbying efforts that appeared to correspond with the investigation’s closure. The company denies any connection between its political spending and the outcome of the investigation.
The partnership with Trump Media, formed just as the investigation ended, entails Crypto.com committing the majority of capital—valued at approximately $1 billion in Cronos tokens—to the joint venture. Trump Media’s investment mainly consists of intellectual property licenses, with all involved parties expected to hold controlling interests, although exact stakes remain undisclosed.
Experts in crypto regulation and ethics express concern over this arrangement’s implications, suggesting it blurs lines between regulatory actions and political influence. Meanwhile, Trump Media’s leadership touts the new partnership as a trustworthy future for finance.
Further collaborations are underway, including a plan by Crypto.com to launch an online marketplace enabling users of Truth Social to bet on various global events, including elections, signaling continued integration between the two companies.
