Crypto industry fractures over Trump’s immigration policies
I’ve been watching this situation unfold, and it’s interesting to see how the crypto community is reacting. The industry had largely rallied around President Trump, especially after he positioned America as the future “crypto capital of the world.” But something shifted after that Minneapolis shooting last weekend.
When Border Patrol officers shot and killed Alex Pretti during immigration protests, the White House response seemed to trigger something in certain crypto circles. Bruce Fenton, who runs Chainstone Labs, posted a video that really caught my attention. He accused the administration of cracking down on First and Second Amendment rights. That’s strong language from someone in the crypto space.
Libertarian principles clash with political reality
Fenton said something that stuck with me: “I barely even want to associate with Republicans now.” That’s coming from a guy who ran for Senate in New Hampshire. His background in Bitcoin goes back over a decade, to when crypto was more tightly linked to libertarian ideals. You know, that whole idea of financial sovereignty and censorship resistance.
It’s not just Fenton though. Ethereum’s Vitalik Buterin weighed in too, warning about police state apparatus expanding its targets. David Marcus from Superstate made a simpler point – people can be appalled by citizens being shot on the streets, regardless of protestors’ intentions.
The limits of political alliances
John Deaton, the pro-XRP attorney running for Senate in Massachusetts, described the situation well. He said he’s seen Bitcoiners struggling with this. Libertarians who are hardcore Bitcoin supporters have a real problem when you start questioning the Second Amendment.
Deaton brought up some constitutional concerns that I think are worth considering. There’s the First Amendment issue with Homeland Security warning about comparisons to Nazi Gestapo. Then there’s that ICE memo about entering homes without warrants – that’s Fourth Amendment territory.
What’s interesting is how Deaton framed the crypto industry’s support for Trump. He called it a “marriage of convenience.” That feels accurate to me. The industry was fighting an existential battle against the SEC under Gary Gensler, and Trump’s administration offered relief. But maybe that support has limits.
Political calculations versus principles
Deaton made a point that I think captures the tension here. He said the government had a “boot on the neck of the industry” before, and Trump’s administration might still be viewed as a net positive compared to alternatives. But it’s a comparison, not an endorsement.
Here’s the thing that puzzles me a bit. Despite this public pushback from some crypto advocates, Trump’s approval rating on Myriad – that prediction market platform – has actually ticked up to nearly 56%. It was underwater for most of November and all of December.
Maybe that tells us something about political calculations versus principles. Or perhaps it shows that different segments of the crypto community weigh things differently. Some might prioritize regulatory relief above all else, while others can’t look past civil liberties concerns.
I’m left wondering how this plays out. The crypto industry isn’t monolithic, despite sometimes appearing that way. There are libertarian roots here that run deep for some people. When those principles get tested against political realities, you see fractures like this.
It reminds me that political alliances in emerging industries are often temporary. What brings people together one year might push them apart the next. The Minneapolis shooting seems to have exposed some of those underlying tensions that were already there, just below the surface.
