Given the serious implications of the President’s about-face on crypto – of which, at this point, there’s no doubt – it should be setting off alarm bells. He began his tenure as a crypto-skeptic, but has recently launched his own central bank-backed stablecoin. He’s gone so far as to proclaim America the “crypto capital of the world”! What changed? Or is this a professional belief in the technology’s promise? Or is it a shrewd move to court a somewhat specific slice of the electorate while potentially enriching the Trump clan? I’m going with option two, and you should be too.

Crypto: A Tool for the Elite?

Additionally, the notion that crypto is a democratizing force in the world is wearing thin. Yet more and more people are coming around to view it as the biggest establishment bust ever. As described, decentralized finance sounds wonderful, but unfortunately that’s not typically how things go down. To be clear, we don’t have anything against the crypto community. Is it the average person struggling to make ends meet, or is it wealthy investors and tech bros who can afford to take the risks and navigate the complexities?

The Trump family’s recent and growing investments in crypto businesses further adds to this impression. They're not in this to revolutionize finance for the masses; they're in it to make money. And with a light touch regulatory approach apparently brewing on the gilded pot of gold, the room for exploitation is huge. We’re describing a market that is ripe for pernicious manipulation, consumer protection empty, and may worsen already entrenched inequalities. It’s a complete free-for-all, akin to the original Wild West, but with digital tokens in place of gold.

Is "Light Touch" Really a Green Light?

The Trump administration’s indication that they will pursue a “light touch” approach to crypto regulation is deeply alarming on many levels. It's not just about protecting investors from scams (though that's crucial, given that about 28% of U.S. adults owned crypto assets in 2024, up from 15% in 2021). It’s not really about preventing every corner-case risk, it’s about keeping systemic risk away from the whole financial system.

Think about it: a largely unregulated crypto market, worth about $2.74 trillion as of April 2, 2025, is a breeding ground for instability. We’ve seen this in practice most recently in the collapse of a number of crypto exchanges. Secondly, lurid price fluctuations wipe out wealth in instant bursts of ill-timed volatility. A “light touch” approach is the regulatory equivalent of handing a drunken toddler a loaded gun – sooner or later, somebody’s gonna get shot.

Remember the 2008 financial crisis? And deregulation was a big part of that calamity. Are we really going to make the same blunder with crypto? The SEC’s unexpected change of tune, apparently becoming more positive towards crypto, is pouring more gasoline on that fire. Removing sanctions against Tornado Cash, despite a successful district court ruling, would be a mistake that sends the wrong message. The U.S. appears willing to tolerate whatever level of illicit activity. This openness is not just to be hip or fashionable, but rather to encourage creative new ideas.

  • Deregulation: Dangerous for the average person.
  • Lack of Oversight: Invites market manipulation.
  • Trump Crypto: Benefit the rich, not you.

Crypto's Dirty Secret: Social Justice

Beyond the financial risks, there’s a social justice dimension to all of this that rarely sees the light of day. While crypto’s decentralized nature is often celebrated as empowering its users, in practice crypto often deepens inequalities. Communities marginalized by systemic inequities, who have less access to financial literacy education or tools, are especially susceptible to fraud and predatory practices. The promise of financial freedom rings severely hollow when the game is rigged in every way possible against you.

Let's not forget the environmental impact. Some cryptos require massive amounts of energy for the mining process. This practice is deeply damaging to climate change and impacts communities long burdened by environmental racism the most. This is not only a fiscal matter, it’s a question of the health of the planet and who is really paying the price for our actions.

Think about the Flint water crisis. That’s what a total absence of regulation and oversight led to in Jackson, Mississippi—a true public health disaster. This preventable crisis disproportionately impacted a low-income, majority Black community. Is a “light touch” approach to crypto just setting us up to repeat history all over again? This time, though, it might be orders of magnitude larger.

We need stronger regulation, not less. Stricter KYC/AML requirements, consumer protection laws, and taxation policies are essential to protect vulnerable populations and ensure a fair and stable crypto market. These are the kinds of steps we need to make sure that the Trump family and other crypto entrepreneurs are held accountable for their actions. This isn't just about preventing financial losses; it's about building a more just and equitable society.

The UK government’s recently announced “action plan of radical deregulation” to reduce the burden of regulation on businesses. That is indeed concerning, as it may set us up for just as much of a disaster as the “light touch” alternative.

Power Grab or Disaster? Both?

Is Trump’s embrace of the crypto space a future populist power grab, or economic calamity? Now, it’s quickly shaping up to be both. He cynically and effectively panders to a key segment of the voter base all the while lining his own pockets and his family’s. His “light touch” regulatory approach is endangering our economic stability and continues to exacerbate social inequalities.

This is not anti-innovation, this is pro-responsibility. We need to keep the weak safe. Let’s ensure that all Americans are able to enjoy the fruits of cutting-edge technology, not just the privileged few. Now is the time to call for greater regulation. Let’s demand accountability from the powerful and build a crypto future that is fair and equitable for us all. Failing to take action now means we’re on a collision course with a calamity of our own making.