As the globe awaits Donald Trump’s inauguration as the 47th president of the US on January 20, the cryptocurrency market is booming. Crypto Donations to Trump companies and investors have felt that Trump’s return is a much-needed lifeline after the last several years under Joe Biden’s administration, which were marked by harsh crackdowns, unclear laws, and a negative market.
The American inauguration is more than just a formality; it’s a spectacular event with high-stakes networking, sparkling balls, and expensive meals. There is a sophisticated game of influence going on behind the surface, though, as firms and affluent individuals use financial contributions to curry favor with the new leadership.
Trump’s $200M Inaugural Fundraising
Contributions to inaugural committees are not only prevalent but also provide individuals with a strong opportunity to network with influential decision-makers. It’s clear that Trump’s campaign has mastered the art of fundraising. The New York Times reports that his campaign has surpassed the $107 million record set during his 2017 inauguration, raising over $200 million for the event and other political endeavors.
Contributors who contribute $1 million or more will receive exclusive dinners with Trump and Vice President-elect JD Vance, albeit in a room full of other prominent donors. Technology companies have moved swiftly. IT giants Google, Meta, and Amazon have all contributed $1 million in a strategic move to improve relations with the incoming government.
Millionaire donors, such as hedge fund tycoon Ken Griffin, are vying for a place at the table. But the crypto realm is where the most intriguing changes are taking place, not Silicon Valley. Crypto Donations to Trump companies are making a historic entrance into the limelight, establishing themselves as major players in this high-stakes arena.
Crypto Firms Back Trump
How much are these cryptocurrency firms wagering on Trump’s election, and what do they intend to do now that a new era has begun? Let’s look at the figures, identify the key participants, and speculate on what this could signify for the future of cryptocurrency under Trump’s administration.
hy are cryptocurrency companies opening their wallets: to make strategic donations or to stay afloat. Crypto Donations to Trump companies are expressing their presence with substantial contributions to Donald Trump’s inaugural fund as he gets ready for his inauguration.
Ripple Backs Trump with $5M
Among cryptocurrencies, Ripple (XRP) has spent more than any other on political campaigns. In a dramatic change of direction from its previous approaches to Democratic candidate Kamala Harris, the business has donated $5 million to Trump’s inauguration fund.
Harris received an unprecedented $10 million in campaign contributions from Ripple co-founder Chris Larsen, and Ripple CEO Brad Garlinghouse had previously lauded her for her “constructive” position on digital assets. But now that Trump is president, Ripple’s strategy adjustment is plain to see. The motivation behind his change appears to be more survival-driven than politically motivated. Ripple’s protracted dispute with the SEC, which began under Biden’s administration, heavily influences its calculations.
Robinhood Donates $2M to Trump
Another cryptocurrency company that has donated to Trump’s inauguration fund is Robinhood, which sent $2zmillion. Considering the company’s problematic past with authorities, the action stands out. To resolve SEC claims of misleading practices, Robinhood paid a $65 million fine in 2020.
The cryptocurrency division has lately been the target of a Wells Notice from the SEC, which suggests possible enforcement action in May 2024. Donating to Trump’s inauguration appears to be Robinhood’s way of wagering on a political reset, which could lead to the SEC taking a more moderate approach and giving its growing crypto products some opportunity to grow.
Coinbase Donates $1M to Trump
Another crypto industry behemoth, Coinbase, has donated $1 million to the first fund. A defining moment in the company’s recent past has been its continuing legal struggle with the SEC over claims of running an unregistered securities exchange.
A federal judge recently allowed Coinbase’s interlocutory appeal, giving the company a minor victory in court. Given the Trump administration’s stated goal of creating a more business-friendly regulatory climate, Coinbase’s donation appears to be an effort to strengthen relationships with a government that may rewrite the game’s rules.
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