Did Crypto Firms "Pay" Trump for Regulatory Rollbacks? New York Times Investigates

U.S President Donald Trump, along with his family, allegedly gained from various dismissed or settled cryptocurrency cases, according to a report from the New York Times (NYT). The report suggests these cases were linked to deals involving political donations or business relationships with Trump's extensive involvement in the crypto industry.

Key Takeaways

The Trump administration reportedly dismissed 33% of crypto cases initiated during Biden's presidency, significantly higher than the 4% average seen across other industries.
Many of the defendants in these cases developed strong ties with the administration, leading to allegations of a "pay-to-play" situation.
Major companies like Coinbase and Binance saw favorable outcomes in their legal battles, raising questions about potential corruption and connections to Trump-backed initiatives.
The Trump family's presence in the crypto space has expanded dramatically, encompassing various sectors, though this has faced criticism from Democratic lawmakers.

Did crypto firms ‘pay’ Trump for regulatory rollbacks? NYT thinks so…

Trump crypto
Source: NYT

Analyzing Trump's Connections to Crypto

The NYT report indicates that the Trump administration dismissed a staggering 33% of crypto-related cases from the Biden era, contrasting sharply with an average dismissal rate of just 4% in other sectors. Of the 14 crypto investigations that were rolled back, a majority involved defendants who established close links with the administration either before or after their cases were resolved.

For instance, Coinbase had its lawsuit dismissed, and it is noteworthy that the company was one of the key supporters of Fairshake, a pro-crypto Super PAC during the 2024/2025 election cycle. Additionally, it launched Stand With Crypto to rally backing for pro-crypto lawmakers.

In May, a significant civil case filed by the SEC against Binance, which alleged that it was operating an unregistered exchange within the U.S., was also dismissed. Binance’s founder, Changpeng Zhao (CZ), was pardoned shortly after this dismissal, triggering accusations of corruption. Reports suggest that CZ's legal resolution came after he assisted in the development of the USD1 stablecoin for Trump-backed World Liberty Financial.

"Just weeks before the Binance case was dismissed, the firm engaged in a $2 billion business transaction utilizing digital currency from World Liberty, potentially generating millions annually for the Trump family," the report claims.

Similar patterns of "pay-to-play" have emerged, involving companies such as Consensys, Cumberland, Kraken, Tron, and Ripple among others.

However, Hester M. Peirce has defended these rollbacks by stating that "they shouldn’t have been filed in the first place." She further remarked that "the drastic action happened in prior years when cases were brought that lacked a legal foundation."

The Expansion of Trump's Crypto Empire

Over the past year, the Trump family's involvement in the crypto industry has significantly expanded, now including Bitcoin mining, decentralized finance (DeFi) lending, memecoins, and stablecoins. Despite this growth, Trump's push for favorable crypto regulations has faced scrutiny from Democrats.

Concerns surrounding conflicts of interest nearly derailed the stablecoin law (referred to as the GENIUS Act) and resurfaced during ongoing discussions regarding the structure of crypto markets.

Most of the dismissed cases were resolved with prejudice, meaning they cannot be reopened by a new SEC regime. However, implications remain as to whether regulatory challenges will arise again should Democrats regain control in the future.

Conclusion

The intertwining of political and financial interests within the cryptocurrency sector raises significant questions. As investigations continue and regulations evolve, the future landscape of crypto in the U.S. remains uncertain.