Donald Trump has entered the cryptocurrency space, sparking spirited discussions. Because of this, his fortune made from cryptocurrency has already increased to $56.6 billion. His evolving stance on cryptocurrency, marked by an executive order to promote its growth and instructions to the Treasury Department to create a government cryptocurrency stockpile, has drawn scrutiny. Trump's financial stake in the $TRUMP cryptocurrency, where he benefits from every transaction, coupled with his administration's efforts to ease regulations on cryptocurrency deposits and investments, raise ethical questions. Trump’s nascent ties to the cryptocurrency industry are mind-blowing and should be deeply alarming. Moreover, since it is entirely speculative, cryptocurrency mining and trading is a major environmental blight.

If you’ve been following Donald Trump’s relationship with cryptocurrency, you’ll know it has taken quite a turn in the past year. Initially skeptical, he has now embraced the digital currency market, evidenced by his launch of the $TRUMP cryptocurrency and his call for legislation to govern stablecoins. Here’s the thing though, while his attitude hasn’t changed much over the years, it is starting to change. Notably, this creates opportunities for real or perceived conflicts of interest.

Initially, this $TRUMP cryptocurrency saw a quick pump—gaining close to 60% just a few days after its release. This quick increase emphasizes just how lucrative investing in cryptocurrency can be. It’s doubly encouraging for those of us with a strong public profile, like Donald Trump. Even worse, it opens the door to potential market manipulation. Unsuspecting investors could be lured into a Wild West of a market that grinds them down with fees and risk.

The transition to a new administration made things more complicated as Trump rolled back much of Biden-era guidance. This guidance was meant to keep crypto deposits out of banks. They loosened restrictions on retirement account investment in cryptocurrency. Each of these moves has appeared to support the struggling cryptocurrency industry. In response, speculation is swirling about what Trump might be up to and what he stands to gain from this.

World Liberty Financial, a newly launched cryptocurrency trading platform, has already figured it out. This news further deepens Trump’s already burgeoning connection to the digital currency ecosystem. A company affiliated with Trump now owns 60 percent of World Liberty Financial. This private firm collects a whopping 75% of the net revenue from coin purchases, raising severe ethical concerns around self-dealing and conflicts of interest.

Beyond the morality issues, Trump’s crypto projects have significant environmental implications, as well. Cryptocurrency mining, the method of confirming and securing transactions while adding new blocks to the blockchain, takes copious amounts of energy. This energy consumption is often tied to fossil fuel usage, which directly contributes to greenhouse gas emissions and worsens climate change impacts.

Trump’s continued push of the industry has raised fears that he’ll trigger a new wave of adoption. This wave could benefit not just Trump and fellow crypto entrepreneurs, but companies that use dirty energy to create cryptocurrency. This, they argue, would roll back the crucial shift towards a cleaner, more sustainable economy that regulators and advocates have fought hard to achieve.

Under Trump’s direction, the SEC has allegedly put the brakes on enforcement ops against at least 12 cryptocurrency startups. Critics say that this decision threatens to blow a hole through the SEC’s critical protective function. They think it puts investor protection and market integrity at risk. Hitting the pause button on these investigations would throw a lifeline to cryptocurrency companies. This change would benefit many of Trump’s personal investments in the industry.

Despite these complications, Trump calls on lawmakers to get it done. He’s hoping they’ll pass bipartisan legislation to regulate and bring some order to stablecoins – a kind of cryptocurrency pegged to relatively stable assets such as the US dollar. This latest move is intended to provide much-needed regulatory clarity to the entire cryptocurrency ecosystem. Critics are still doubtful about his plans.

Trump's growing involvement in cryptocurrency has the potential to significantly impact the industry's future. His support could lead to increased adoption and investment, further enriching Trump and other key players in the crypto world. Alternatively, it might only worsen the environmental issues caused by cryptocurrency mining and open up new avenues for financial predation.

When they intertwine his business interests with his political power, there are grave concerns. This troubling blend of commercial and governmental interests begs the question whether our shallow and compromised democracy is for sale. Taken together, his actions paint a picture of a person willing to use his powerful position for his own financial benefit. This could be done at the public’s expense.

Yet the ethical implications of Trump’s foray into cryptocurrency are both profound and troubling. His proposed policies would benefit him handsomely. At the same time, his push to deregulate and create a business-friendly environment have some wondering if he’s acting in the best interests of the country—or his own self-interest.

Beyond the ethical ramifications, the environmental effects of Trump’s cryptocurrency promotion must be considered. Mining new cryptocurrency requires the equivalent energy output of the nation of Ireland. This extremely energy-intensive process directly increases greenhouse gas emissions, exacerbating climate change and threatening public health and the environment.

The absence of regulatory oversight in the cryptocurrency market further complicates this issue and poses significant risks to investors. Fraud, market manipulation, and other nefarious activities are a clear and present danger. The unsuspecting investor ends up with the big financial hit as a direct consequence.

Trump’s environmental and pro-business moves on cryptocurrency have polarized critics from environmental groups to consumer advocates to ethics watchdogs. These organizations claim that his influence in the industry poses a serious threat to the environment. They think it shields their investor protection agenda and endangers the integrity of our democratic process.

What might happen to cryptocurrency regulation under a Trump administration is anyone’s guess. While he has called for legislation to govern stablecoins, his overall approach to the industry is likely to be shaped by his own financial interests and his desire to promote economic growth.

The stakes of Trump’s cryptocurrency business are therefore enormous. His directives will increase adoption of cryptocurrency while directly enriching himself and other prominent players in the crypto space. If done poorly, they might worsen existing environmental harms and create new avenues for economic predation.

The ongoing controversy over Trump’s cryptocurrency dealings is a stark reminder of the profound difficulties in the regulatory approach to this fast-moving sector. We need to honestly assess the tradeoffs of using cryptocurrency and weigh its benefits against protecting investors and our environment. Considered policymaking will be required to strike that balance.