'Crypto Dad' Expressed Dismay With Increasing Politicization of Digital Currency
The collapse of Sam Bankman-Fried's FTX exchange transformed cryptocurrency from a bipartisan issue to a political battleground: Giancarlo.
WASHINGTON, May 12, 2025 - The United States risks ceding leadership in cryptocurrency innovation to global competitors if political divisions prevent effective regulation, warned J. Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission.
"We dominated the 20th century - our banks, our financial regulation, our dollar itself. And if our dollar is going to remain the world reserve currency, if we're going to remain the financial engine of the world, the growth engine of the world, we need to dominate this technology and not squander it through petty political fights," Giancarlo said at a Broadband Live event Wednesday.
The collapse of Sam Bankman-Fried's FTX exchange transformed cryptocurrency from a bipartisan issue to a political battleground, according to Giancarlo, who served as CFTC chairman during Trump's first term.
J. Christopher Giancarlo
"Sam Bankman-Fried made a major showing in the 2022 midterm election of contributing to Democrats," Giancarlo said. "I believe that the embarrassment of that led to [...] a lot of those recipients of Sam Bankman-Fried contributions to suddenly overnight become anti-crypto."
This political shift has had real electoral consequences, he argued, as the Biden administration's subsequent hostility toward cryptocurrency became “detrimental” to Democrats in the 2024 election.
Giancarlo, known in cryptocurrency circles as "crypto dad," expressed dismay at the increasing politicization of cryptocurrency policy, particularly after the recent walkout by Democrats from a Congressional hearing on crypto legislation.
"The parties have seemed to have gone to the mattresses once again, and it's sad because America benefits from its leadership in tech innovation,” he said.
The former regulator also revealed that the Trump administration has established both a cryptocurrency stockpile from seized assets and a strategic Bitcoin reserve intended to maintain the dollar's status as the world's reserve currency.
"There are a number of countries in the world that are talking about basing their currency on Bitcoin to rival the dollar," said Giancarlo. "If we want to be able to have control over the dollar's global price, we need to be able to buy and sell Bitcoin in the same way we buy and sell petroleum to protect the dollar's reserve currency status."
Giancarlo outlined three elements of the Trump administration's approach to cryptocurrency. First, they've moved quickly to end what he described as hostility toward the sector, including what critics called "Operation Chokepoint 2.0," referring to alleged pressure on banks to drop cryptocurrency clients.
Second, the administration is fulfilling campaign promises that include the Bitcoin reserve, cryptocurrency tax policy changes, and formation of a cryptocurrency council. The third phase, which Giancarlo described as "probably the hardest," involves creating "good lasting crypto policy" through legislation and regulatory frameworks.
Giancarlo noted that stable coin legislation may be voted on in the Senate as early as next week, with the House bill "moving rapidly as well," potentially seeing action by the 4th of July recess.
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J. Christopher Giancarlo
