Trump Crypto Enforcement Crushed After Shocking $1.2B Donations

Key Points

•  Trump Crypto Enforcement Crushed After Shocking $1.2B Donations
• Trump-era policies eased crypto, AI, and fintech enforcement.
• Over 165 federal actions dropped since 2024, with Web3 as the top beneficiary.
• $1.2B in campaign funds allegedly influenced policy leniency.
• Critics say this created a roadmap to bypass regulation entirely.

A new report by watchdog group Public Citizen has pulled back the curtain on how President Donald Trump allegedly dismantled crypto enforcement during his current term.

Since winning the 2024 election, Trump has reshaped the regulatory landscape, creating what some call a haven for Web3, AI, and fintech firms. The report reveals that 165 enforcement actions were quietly dropped after his return to office, with nearly 25% involving crypto companies.

But what raised eyebrows wasn’t just the leniency. It was the why. According to the report, this wasn’t just deregulation; it was a well-orchestrated campaign funded by over $1.2 billion in crypto-related donations to Trump’s political efforts.

New @Public_Citizen report:

The Trump admin is deleting enforcement against Big Tech lawbreaking amidst the industry’s BILLION-dollar influence efforts.

Turns out in Trump’s techno-swamp, tech insiders are immune & “tough on crime” rhetoric is just for punishing the poor. pic.twitter.com/6x6gnisMlh

— Rick Claypool (@RickClaypool) August 13, 2025

And the results were immediate. Firms once targeted by federal watchdogs suddenly saw cases vanish, while new protections were written into policy to prevent future scrutiny.

Trump, once an open critic of crypto, flipped his stance after major donors from Web3 platforms backed his re-election. From Gemini to anonymous DeFi projects, high-level executives demanded (and received) relaxed enforcement in exchange for political support.

This wasn’t about turning a blind eye; it was about rewriting the rules altogether.

For example, crypto-native institutions like Metaplanet, which recently made headlines for acquiring 18,113 BTC,  benefited from the pro-crypto policy winds blowing through Washington.

I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….

— Donald J. Trump (@realDonaldTrump) July 12, 2019

Data Shows Systematic Pullback in Crypto Regulation

The numbers tell the story:

•  165 cases dropped – Federal regulators backed off from dozens of crypto, AI, and fintech firms.
•  $1.2 billion in donations – Strategic funding funneled into Trump’s campaign.
• Web3 firms were top winners – Leading the pack in enforcement leniency.

Critics have called the moves a “silent coup” against oversight. And while Trump’s team says it’s all about “supporting innovation,” many fear the precedent being set.

The report includes detailed records of crypto firms donating to the Trump campaign, followed by a rapid increase in favorable outcomes from federal agencies.

In some cases, these companies were able to directly influence policy through White House connections,  with executives now serving as advisors or committee members.

Some of these crypto firms mirror the trajectory of projects like Stellar (XLM), which is now seeing renewed institutional interest amid looser regulatory conditions.

Even if a new administration tries to reverse course, it may be too late. Legal frameworks have shifted, and the lines between policymaking and profit have blurred significantly.

Influence Beyond Crypto: Fintech, AI, and Treasury Firms Benefit

While Web3 companies were the biggest winners, the ripple effect of Trump’s crypto enforcement policies extended far beyond blockchain.

A substantial portion of dropped enforcement actions involved AI startups and fintech platforms. Firms managing digital treasuries,  including blockchain-backed finance companies,  benefited just as much.

According to the report, these companies mimicked the crypto sector’s playbook:

• Donate strategically

• Demand softer enforcement

• Gain direct influence in federal policy circles

This blueprint mirrors the moves of firms like Pantera Capital, which recently made a massive $300 million investment into crypto treasury firms — clearly betting on a lenient regulatory future.

Meanwhile, ecosystems with massive user traction like NEAR Protocol — which recently surpassed 3 million users– are positioned to ride the wave of deregulation, tapping into Trump-era momentum.

Even XRP, once a target of the SEC, is staging a comeback, fueled in part by changing sentiment and ongoing whale activity in escrow markets. Analysts attribute the recent rebound to regulatory quietness.

The Public Citizen report warns that these shifts may be impossible to reverse in just one presidential term. Institutions are being built on top of this new normal, and enforcement agencies now lack the clarity and power they had before 2024.

Some insiders now joke that “crypto crime is legal”,  a dark joke, but one that might hold some truth.