By Mary Jones | Saturday, December 7, 2024 | 5 min read
As Donald Trump prepares for his return to the White House, a troubling picture is emerging: his administration is set to be one of unparalleled wealth and influence concentrated in the hands of billionaires and ultra-rich individuals. According to Axios, Trump has assembled a team of unprecedented financial might—raising alarm bells about the future of democracy in America.
For decades, America has grappled with the outsized influence of wealthy interests, a persistent wound in its democratic fabric. But Trump’s new team marks a significant escalation. Among his allies is the world’s richest man, Elon Musk, who contributed a staggering $250 million to Trump’s campaign. In return, Musk and others are poised to benefit from a pro-business administration, with policies aimed at slashing government spending and dismantling social safety nets. Notably, Musk’s own companies rely heavily on billions of dollars in federal contracts, creating a striking contradiction.
In the U.S., the term “oligarchy” is often used to describe a system where wealthy individuals and corporations wield undue influence over policy. Under Trump, however, this concept is evolving from metaphorical to literal. Billionaires are no longer just lobbying—they’re being handed the keys to government power.
A prime example is Trump’s decision to appoint David Sachs, a venture capitalist and former PayPal executive, as his crypto czar. Sachs, a wealthy, right-wing figure born in South Africa, is a close ally of Musk and billionaire Peter Thiel. In the 1990s, Sachs co-authored The Diversity Myth, a book critical of diversity initiatives, and has since maintained a staunchly conservative stance. Earlier this year, he hosted a $300,000-per-person fundraiser for Trump at his San Francisco mansion.
Sachs’ appointment coincides with skyrocketing cryptocurrency values. Bitcoin, for instance, reached $100,000 per coin just yesterday, fueled by expectations of favorable regulatory policies under Trump. The cryptocurrency industry was one of the biggest contributors to Trump’s campaign, spending millions to unseat crypto-skeptical Democrats, such as Senator Sherrod Brown of Ohio.
While crypto has its advocates, the industry is rife with scams, fraud, and volatility. Many Democrats have sought to limit its integration into the financial system to avoid catastrophic economic fallout. But the Trump administration seems ready to embrace crypto fully—benefiting a small group of wealthy investors while exposing taxpayers to significant risks.
A centerpiece of the Trump administration’s crypto agenda is the controversial “Bitcoin Act,” introduced by Senator Cynthia Lummis of Wyoming. The bill proposes creating a federal Bitcoin reserve, backed by secure storage vaults and funded through the sale of gold reserves from Fort Knox. If passed, the act would require the government to purchase large amounts of Bitcoin at market rates, driving up its value and lining the pockets of major crypto holders.
Critics argue this is nothing more than a bailout for the crypto industry. The scheme allows wealthy investors to offload their speculative assets onto the government, transferring financial risks to taxpayers. It’s a stark reversal for an industry that has long championed itself as a libertarian alternative to government oversight.
Trump’s Personal Stake in Crypto
Donald Trump’s connection to cryptocurrency isn’t just about shaping policy—it’s deeply personal and, some argue, deeply troubling. In an unexpected twist, Trump launched his own cryptocurrency, “World Liberty Financial,” just weeks before the election. Marketed as an investment opportunity, the coin has drawn criticism for its murky structure and questionable value. Buyers of the coin can’t sell it, nor does it provide any stake in profits. Yet, it serves one clear purpose: funneling money directly into Trump’s pocket, with 34% of the revenue going straight to him.
Critics warn that Trump appears to be leveraging his political power to rewrite laws around financial transparency and money laundering—laws that were tightened in the wake of 9/11 to curb illicit activities. If successful, these changes could benefit bad actors like Vladimir Putin, authoritarian regimes, terrorists, and, of course, Trump and his family.
One of the coin’s major backers is none other than Justin Sun, a controversial crypto mogul under investigation by the SEC. Sun has reportedly invested $30 million into World Liberty coins, effectively handing $23 million directly to Trump.
The venture raises serious ethical and legal questions about the intersection of Trump’s financial ventures and his political ambitions, with some calling it a blatant cash grab disguised as innovation.
The regulatory landscape for crypto is poised for significant change. Under President Biden, the SEC, led by Gary Gensler, has taken a hard stance against the industry, seeking to protect the broader financial system from crypto’s volatility. Trump’s administration, however, is expected to take a radically different approach. Paul Atkins, Trump’s pick for SEC chair, has previously lobbied for looser crypto regulations and criticized the strict rules that held firms like FTX accountable.
Trump’s embrace of the cryptocurrency industry represents a seismic shift in how government power is wielded. His administration’s policies, appointments, and personal financial ties suggest a troubling alignment between state authority and private wealth. Billionaires like Sachs, Musk, and Sun stand to gain immensely, while ordinary Americans bear the risks.
As Zeke Faux, an investigative journalist and author, puts it: “This is an enormous heist. Billionaires are backing the truck up to the government, and we’re all watching it happen.”
This unfolding story highlights not just the growing influence of the ultra-rich but the very real consequences of prioritizing their interests over the public good. In Trump’s America, the line between governance and greed is becoming increasingly blurred.
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