Last week, Emily DiVito, Senior Advisor for Economic Policy at Groundwork Collaborative, published a new op-ed in MSNBC criticizing President Trump’s crypto reserve. As the White House hosted a crypto summit, DiVito deemed the reserve another “giveaway” to Trump’s billionaire donors and friends:
“Proposing to use taxpayer funds to buy crypto at the same time that Elon Musk and Republicans in Congress try to cut vital programs like Medicaid, disaster relief and food assistance confirms yet again that Trump’s loyalties are not with the voters who elected him, but the billionaire donors who funded him.
“This crypto reserve, if created, would lay the groundwork for the largest bailout in history — with taxpayers footing the bill.”
Email press@groundworkcollaborative.org to speak with a Groundwork expert about the Trump Administration and crypto.
EXCERPTS
“The crypto reserve is a dream come true for Trump’s oligarch donors, many of whom would benefit from this fund. Other strategic reserves — like the Strategic Petroleum Reserve and the Strategic National Stockpile — store valuable assets the U.S. may need in an emergency. But a crypto reserve has no value to anyone but the crypto industry.”
“Because the price of crypto rises as the public’s interest in it does, crypto companies are prone to clever marketing that postures crypto as the magic solution to all that ails the U.S. economy. But many of these firms’ claims are misleading. In fact, crypto’s inherent volatility and popularity with fraudsters and criminals make it, at best, a highly risky gamble for working people interested in investing. At worst, it is the source of significant loss of wealth for millions of Americans and a risk to U.S. financial stability.”
“Aside from Elon Musk, two of the most prominent names are venture capitalists David Sacks, Trump’s new crypto czar, and Marc Andreessen, who has helped staff the new administration. Just look at the five cryptocurrencies included in the reserve: bitcoin, ether and XRP, plus the lesser-known SOL from Solana and ADA from Cardano. All five surged after the announcement, and all five are held by Bitwise, a crypto fund manager whose investors until recently included Sacks’ firm Craft Ventures.”
“Andreessen, in addition to advising the presidential transition and the so-called Department of Government Efficiency, has primed the Trump administration for an orchestrated crypto resurgence. His firm, Andreessen Horowitz, has invested billions in crypto ventures. Last year, Andreessen Horowitz donated tens of millions to pro-crypto super PACs ahead of the presidential election. Now that Trump is in office, he’s been on a media blitz, decrying crypto regulations as ‘sanctions.’”
“Proposing to use taxpayer funds to buy crypto at the same time that Elon Musk and Republicans in Congress try to cut vital programs like Medicaid, disaster relief and food assistance confirms yet again that Trump’s loyalties are not with the voters who elected him, but the billionaire donors who funded him.”