Crypto was already in bad odor before jumping into bed with Trump. Now it smells worse

Los Angeles Times - May 15th, 2025
Open on Los Angeles Times

The recent involvement of former President Donald Trump in the cryptocurrency space has stirred significant controversy and allegations of corruption. Trump and his family have been promoting a cryptocurrency known as $TRUMP, a memecoin that surged in value around his inauguration but has since plummeted. The coin's promotion includes offers of exclusive access to Trump, such as private dinners and White House tours, fueling suspicions of 'pay to play' schemes, especially since many of the largest investors appear to be foreign entities. This has prompted calls from Democratic senators for an ethics inquiry into potential conflicts of interest and violations of federal laws prohibiting foreign political contributions.

The implications of Trump's crypto ventures are significant, affecting both domestic and international regulatory landscapes. His actions have stalled legislative efforts like the GENIUS Act aimed at regulating stablecoins, while also influencing the Securities and Exchange Commission to drop key enforcement cases against major crypto firms. This deregulation trend has alarmed both political and crypto industry figures, with concerns about the erosion of regulatory oversight leading to a 'Wild West' scenario in the crypto market. The situation underscores the complex interplay between political power and emerging financial technologies, raising questions about transparency and accountability in the digital asset space.

Story submitted by Fairstory

RATING

6.8
Fair Story
Consider it well-founded

The article provides a detailed and engaging exploration of the controversies surrounding cryptocurrencies, particularly in the context of their association with Trump. It effectively highlights the potential risks and regulatory challenges facing the industry, drawing on credible sources and public statements from political figures.

While the article is timely and addresses issues of significant public interest, it could benefit from a more balanced representation of perspectives, particularly from crypto advocates or neutral experts. Additionally, enhancing transparency by providing more explicit citations and clarifying the basis for some claims would improve credibility.

Overall, the article succeeds in capturing readers' attention and provoking discussion, but could further enhance its impact by offering actionable insights and incorporating more diverse viewpoints.

RATING DETAILS

7
Accuracy

The article accurately captures the contentious nature of cryptocurrencies, particularly in the context of their association with scams and regulatory challenges. The FBI's report on the increase in crypto-related fraud is a well-documented fact, supporting the claim that criminality is pervasive in the field.

However, some claims, such as Trump's direct involvement in crypto ventures and the specific actions of his administration, need further verification. For instance, the assertion that Trump's executive order effectively wiped out federal regulations on cryptocurrencies is a significant claim that requires corroboration from official documents or additional reliable sources.

The article also cites political figures expressing concerns about Trump's crypto dealings, which aligns with public statements from senators like Richard Blumenthal and Elizabeth Warren. These claims are verifiable through public records and statements, adding to the article's credibility.

Overall, while the article presents a coherent narrative, some specific details, such as the exact nature of Trump's crypto-related actions and their legal implications, would benefit from further evidence.

6
Balance

The article predominantly presents a critical view of cryptocurrencies and their association with Trump. It highlights the negative aspects, such as potential corruption, regulatory challenges, and the questionable legitimacy of meme coins.

The piece includes perspectives from political figures and crypto critics, which adds to the narrative's depth. However, it lacks a balanced representation of viewpoints from crypto advocates or neutral experts who might provide a more nuanced view of the industry's potential benefits or legitimate uses.

By focusing heavily on the negative implications and criticisms, the article might appear biased to readers looking for a more comprehensive analysis of the cryptocurrency landscape. Including more diverse perspectives would enhance the balance and provide a more rounded understanding of the issues.

8
Clarity

The article is generally well-written, with a logical flow and clear language that makes it accessible to a broad audience. It effectively outlines the key issues and controversies surrounding cryptocurrencies and their association with Trump.

The structure is coherent, with distinct sections covering different aspects of the story, such as regulatory challenges, political implications, and potential corruption. This organization helps readers follow the narrative and understand the complex issues involved.

However, some sections could benefit from additional clarification, particularly where technical terms or intricate legal matters are discussed. Providing brief explanations or definitions would enhance clarity and ensure that all readers can fully grasp the content.

7
Source quality

The article references credible sources, including the FBI's report on cryptocurrency fraud and statements from well-known political figures. These sources lend authority to the claims made about the risks and controversies surrounding cryptocurrencies.

However, the article could benefit from a more diverse range of sources, particularly from the crypto industry itself or academic experts who can provide insights into the technical and economic aspects of cryptocurrencies.

While the political and regulatory perspectives are well-represented, incorporating expert opinions on the technological and economic dimensions would enhance the overall source quality and provide a more comprehensive view of the topic.

6
Transparency

The article provides a clear narrative of the issues surrounding cryptocurrencies and their association with Trump, but it lacks transparency in some areas. For instance, it does not clearly outline the methodology or sources used to verify claims about Trump's executive orders or specific crypto transactions.

While the article mentions public figures and their statements, it does not always provide direct links or references to the original sources, which could help readers verify the information independently.

Enhancing transparency by providing more explicit citations and clarifying the basis for some of the more contentious claims would improve the article's credibility and allow readers to assess the information more critically.

Sources

  1. https://www.axios.com/2025/05/06/trump-coin-democrats-crypto-stablecoin
  2. https://www.ainvest.com/news/trump-endorsement-fuels-xrp-2025-growth-potential-2504/
  3. https://www.blumenthal.senate.gov/newsroom/press/release/permanent-subcommittee-on-investigations-opens-inquiry-into-trump-crypto-corruption
  4. http://acecomments.mu.nu/?post=387226%3Futm_source%3Dakdart