Trump Family’s Embrace of Cryptocurrency
Eric Trump, the son of former President Donald Trump, recently disclosed that the Trump family embraced cryptocurrency following their experience of being “debanked” after the Capitol riots in January 2021. In an interview with The Wall Street Journal, he revealed that several banks abruptly closed numerous accounts associated with the Trump Organization without explanation. This forced the organization to seek out regional banks for their banking needs until eventually locating a new, unnamed bank to partner with.
“I understood how vulnerable the financial system could be and how it can easily be turned against individuals.”
Political Motivations Behind the Shift
Noting the impact of these actions, Trump argued that the impetus behind this shift towards cryptocurrency was a perceived political motivation, alleging that the Biden administration was pressuring financial institutions to limit banking access for crypto-related companies – similar to how banks had allegedly acted against his family.
“The entire system was weaponized against them, just as it was against us for different reasons.”
Legal Actions and Warnings
In March of this year, the Trump Organization initiated legal action against Capital One, accusing the bank of closing their accounts for political motivations, which they claim financially harmed the organization significantly. Merely a month later, Eric Trump voiced a stark warning for traditional banks: adopt cryptocurrency or risk obsolescence within a decade.
Criticism of Traditional Banking
Furthermore, critics suggest that traditional banking institutions are implementing operational “chokepoints” by shutting down accounts of firms operating in the cryptocurrency sector. In addition to advocating for the advancement of cryptocurrencies, Eric Trump also emphasized the potential for tokenizing real-world assets, questioning why something like Trump Tower couldn’t be tokenized and made available for investment on a global scale.
Trump Family’s Involvement in Crypto
The Trump family’s involvement in the crypto space is notable, with several connections drawing scrutiny over the potential for personal enrichment. Just before his inauguration as the 47th President, Donald Trump launched his own memecoin called TRUMP. Additionally, the family established World Liberty Financial, which trades in a USD1 stablecoin and lists Donald Trump as a co-founder emeritus, while Eric and Donald Trump Jr. are identified as co-founders.
They also founded American Bitcoin, a subsidiary of Hut 8, which successfully raised $220 million for Bitcoin investments and mining operations. Recent reports claim that Donald Trump has accrued a substantial amount of $2.4 billion from his ventures into cryptocurrency.
Despite this, Eric Trump has refuted claims suggesting that the Trump family’s wealth benefited from his father’s presidential ascension, and has even hinted at a possible family bid for the presidency in 2028.
