Until 2021, Donald Trump described cryptocurrencies as a “fraud“ and “disaster“, but last year alone he declared over $1 billion in profits from them. The largest part - from the “World Liberty Financial“ platform and the so-called meme coins.
Both Trump and Farage are fans of cryptocurrencies
Since returning to the White House, Trump has begun to pursue an extremely favorable policy towards cryptocurrencies. He seeks to deregulate trade in them as much as possible. And he is not the only politician who supports digital currencies based on blockchain technology. In the UK, Nigel Farage has come under fire after it emerged that his Reform UK party had received over £5m in gifts from crypto billionaire Christopher Harbour. Farage himself has vowed to "bring crypto out of the shadows" if he wins power.
In the Czech Republic, Justice Minister Pavel Blažek resigned last year after accepting 468 bitcoins, worth $45m, from convicted criminal Tomasz Žirikovsky. In Spain, right-wing MP Luis Pérez Fernández has also been accused of receiving cryptocurrency from a convicted fraudster.
In Argentina, President Javier Milley, who has close ties to Trump, has come under fire from financial authorities and the public for promoting the $LIBRA crypto project. Its price jumped sharply after the president posted about it on social media, but collapsed soon after.
Risks of abuse and use for nefarious purposes
Cryptocurrencies are becoming increasingly influential in global economic markets, and this poses the question for a number of governments: how to regulate them?
“Cryptocurrencies are gaining increasing importance in politics - not only as a way of political donations, but also as a well-funded industry that seeks to influence the regulatory framework“, Eliza Lockhart from the Center for Finance and Security at the British think tank RUSI told DW.
Edoardo Beretta, professor of economics at the Swiss university USI, adds, however, that there is also a cooling effect: “The price of bitcoin has halved and more than doubled since its peak on October 6, 2025. "...and the market capitalization of cryptocurrencies has been showing a similar trend. There is currently less political and economic enthusiasm around cryptocurrencies," he explains to DW. But he emphasizes: "This does not mean that economic entities have lost interest in the crypto market, the atmosphere around them has simply become a little calmer."
The anonymity and speed of transactions make it much more difficult to track donations and other means of influencing politicians when they receive cryptocurrencies. "The blockchain records transactions, but does not necessarily reveal the real identity of the person controlling the wallet, nor the original source of the funds," says Eliza Lockhart. "Money can also be transferred through multiple wallets, exchanges and jurisdictions before reaching politics. Cryptocurrencies create vulnerabilities that hostile states and other malicious entities can exploit, the expert added.
The company “Chainanalysis“in 2025 concluded that European extremist groups are increasingly using cryptocurrencies and are catching up with their “colleagues“ in the United States. The reason is that crypto companies do not have the means to block extremist groups, as with other financial services. For this reason, the UK followed Brazil, Ireland and some US states and temporarily banned political donations with cryptocurrencies.
Why do cryptocurrencies and right-wing politicians go hand in hand?
Trump's policies have led to an increase in the use of the technology by Republicans, as a study by “Pew“ shows that 22% of Republicans have invested in crypto, compared to 17% of Democrats.
Cryptocurrencies have no political ideology, but the industry often looks to right-wing politicians. “This reflects its preference for financial deregulation and decentralization, which has led to the crypto industry's strategic support for politicians who offer a more favorable regulatory environment,“ says Eliza Lockhart in this regard.
The vast sums paid to politicians by crypto companies - whether directly or in the form of campaign donations - have raised concerns about conflicts of interest. In Trump's case, the White House has said his business investments are managed by his sons while he is president. "Neither the president nor his family have ever been involved in, nor will they ever be involved in, any conflicts of interest," a White House spokeswoman said on Tuesday.
Change the laws?
All of this raises questions about how much political influence politicians should have in a sector that can be directly influenced by government decisions. "If the law allows politicians to receive income in addition to that derived from their political activities, nothing can be done until the laws are changed," says Professor Edoardo Beretta.
Author: Matthew Pearson