Trump’s Crypto Caucus Cracks as White House Balks at Industry Pressure

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In July 2025, tensions erupted between the Trump administration and powerful crypto stakeholders—ending what had felt like a mutual honeymoon. Key friction centered around two proposed laws: the GENIUS Act (stablecoin regulation) and the broader Clarity Act (crypto market structure).

Crypto leaders had hoped merging parts of both bills would quickly create favorable regulation. Instead, the White House rebuffed that plan, viewing the industry’s push as undue interference that risked delaying real progress.
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 Loyalty Over Leverage: Power Plays in Trump’s Crypto Policy

Though Trump and his family maintain strong cryptocurrency ties—including ownership of a meme coin and his own stablecoin ventures—the administration signaled that political allegiance outweighs industry influence. Oiling the wheels of regulatory change now depends on institutional alignment, not merely campaign contributions.
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Critics warn that policy-making effectively favors insiders and may sideline consumer protections or bipartisan oversight, potentially recreating the regulatory risks of the 2008 financial era.
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 Fallout With Major Players: Coinbase and a16z Tension

Much of the rupture stems from crypto firms seeking bipartisan relationships—like Coinbase hiring Obama-aligned strategist David Plouffe. That angle irritated loyalists in the administration who expect unwavering loyalty.
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The move marked a signal that cooperation with both political camps won’t secure influence under the current administration’s crypto agenda.


 Implications for Crypto Regulation

  • The White House’s hardline stance may slow passage of comprehensive crypto legislation like the Clarity Act or GENIUS Act, forcing bills to move on the administration’s own terms.

  • Congressional “Crypto Week” stalled when Republicans conflicted over whether to vote on individual bills or bundled legislation. Proponents argue modular voting would accelerate reform—but Trump’s team pushed against bundling.
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Industry insiders signal growing frustration after investing heavily in pro-crypto lawmakers, expecting clarity—but receiving uncertainty.


 Final Takeaway

The Trump administration’s shift from pro-crypto friend to skeptical arbiter highlights a critical turning point: the industry’s political capital no longer guarantees influence. As friction grows over legislative priorities, crypto advocates may find doors slowing—even amid open regulatory enthusiasm.

This internal realignment makes the future of U.S. crypto policy more uncertain—and reveals that, in this era, political loyalty and strategic patience may matter more than checks—or coins.


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