Trump crypto backing draws warning of US power dilution

New federal filings reveal that Trump and the GOP have amassed a historic $1.2 billion cash stockpile. Crypto executives have played a major role in funding the Republican war chest for the November midterms.

Professor Jayati Ghosh of the University of Massachusetts Amherst has warned that the Trump administration is pursuing a “self-destructive” strategy that weakens the U.S. dollar.

Is crypto deregulation helping America’s enemies?

Professor Jayati Ghosh of the University of Massachusetts Amherst, writing in the Bangkok Post, explains that the Trump administration’s push to deregulate crypto markets, paired with the promotion of dollar-pegged “stablecoins” via the GENIUS Act, has created a financial system that hostile nations are exploiting. 

In 2025 alone, illegal cryptocurrency transactions surged by more than 160%, largely driven by U.S. rivals. Iran, for example, has integrated crypto into the Strait of Hormuz. Shipping companies are reportedly charged $1 per barrel of oil payable in Bitcoin or the USDT stablecoin for safe passage. 

On a single day this month, this reportedly generated an estimated $36 million for the Iranian regime. 

Russia, after having central bank assets frozen, legalized crypto mining and used exchanges to procure military drones and re-export sensitive goods. The country is also launching a “digital ruble” to further bypass the U.S.-led financial order.

Alongside Russia and Iran, North Korea is also a major beneficiary of the opacity of crypto markets, utilizing the same channels to fund weapons programs. 

How much crypto cash is funding the midterms?

Despite the national security warnings, the flow of money from the crypto sector to the GOP shows no signs of slowing. Reports filed with the Federal Election Commission (FEC) show that the pro-Trump super PAC MAGA Inc. raised $35.6 million in March alone, contributing to a massive $1.2 billion stockpile held by Trump-affiliated groups and the Republican National Committee. 

Democrats currently hold only $261 million in comparison. 

Key crypto donations driving this war chest include $10 million donated by Crypto.com’s Foris Dax. Gemini Trust Company donated $1.5 million in USDC stablecoin, and venture capitalists Marc Andreessen and Ben Horowitz (a16z) each donated $3 million. 

The industry’s primary super PAC, Fairshake, entered the cycle with $193 million on hand. The PAC network is aggressively spending to defeat lawmakers critical of crypto, including a $9.9 million campaign against Illinois Senate candidate Juliana Stratton. 

The overlap between politics and the cryptocurrency industry has drawn formal investigation from Senate Democrats Elizabeth Warren, Adam Schiff, and Richard Blumenthal. 

The Senators launched an inquiry into a “memecoin” conference scheduled for April 25 at Mar-a-Lago. Access to the event, hosted by Fight Fight Fight LLC, is limited to the top holders of the $TRUMP token. 

The investigation also mentioned that while insiders have reportedly earned $1.2 billion off the meme coin, roughly 2 million retail holders are currently “underwater” on their investments.