Democrats can be both pro-crypto and and anti-corruption

Brett Carlsen/Bloomberg

Imagine hearing this sentence 20 years ago: President Donald Trump is shilling meme coins. In 2005, that wouldn't just have been improbable, it would have been nonsensical.

But here we are. Trump has launched a series of NFT trading cards, his son is touting Trump-themed tokens, and his political allies are leaning into pump-and-dump schemes in plain sight. Everyone should be concerned that the sitting president and his family are using crypto for political advantage and personal financial gain. 

Meanwhile, Congress is working on several vital bills to ensure that the 18 million Americans who own crypto can safely participate in these emerging markets. Trump's self-dealing should galvanize all Democrats into supporting legislation that would protect investors from this very type of scam. Instead, some prominent Democrats have doubled down on their hostility to the entire crypto ecosystem, refusing to engage in policymaking or even acknowledge the urgent need for guardrails.

But stonewalling the legislative process is exactly what leaves everyday investors vulnerable to fraudsters and grifters, whether they're operating from Russian troll farms or Pennsylvania Avenue. 

As a Democrat who believes in crypto's potential to promote financial inclusion and advance American competitiveness, I urge my fellow Democrats to take a different approach: Embrace crypto optimism while stepping up as the corruption cops.

Perhaps who's most alarmed by Trump's corruption is the crypto industry itself. For years, responsible crypto companies have been some of the loudest voices calling for clear rules of the road and strong penalties for those who flout them. Those efforts bore fruit in 2024, with the election of the "most pro-crypto Congress" in history.

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The industry notched more wins when the Securities and Exchange Commission began rolling back aggressive Biden-era pressure on legitimate platforms like Coinbase and Kraken. And David Sacks' appointment as crypto czar signaled a new era of pro-innovation policymaking. 

Now, Congress is negotiating several proposals that would fundamentally bolster crypto regulation and protect consumers. 

One legislative priority is a bill defining regulatory responsibilities between federal agencies. Last year, the Financial Innovation and Technology for the 21st Century Act, or FIT21, passed the House with strong bipartisan support from 71 Democrats. Another priority is establishing a clear regulatory framework for stablecoin issuers, preventing a repeat of the Terra-Luna collapse in 2022.

But Congress shouldn't stop there. Momentum is building among Democrats for legislation that would ban lawmakers from issuing, endorsing or profiting from crypto assets. That includes proposals from crypto optimists like Rep. Sam Liccardo and Rep. Ritchie Torres, who believe in crypto's potential but see the need to prevent self-dealing. Crypto skeptics like Sen. Jeff Merkley and Sen. Elizabeth Warren have introduced a separate bill focused on tightening ethical standards.

This isn't an either/or choice. Democrats should be firmly pro-crypto and anti-corruption. 

We should support responsible innovation and regulatory clarity while holding bad actors accountable. And we can't afford to let MAGA grifters own the narrative on crypto, or worse, write the rules themselves. The best way to protect investors, stop corruption and promote fair markets is for Democrats to contribute to constructive crypto regulation.