Crypto industry fractures over Trump administration’s handling of fatal shooting
The crypto industry has mostly supported President Donald Trump’s push to make America a crypto hub, but something changed last weekend. After a fatal shooting in Minneapolis during immigration protests, some prominent voices in the space started speaking out against the administration’s response.
Bruce Fenton, a longtime Bitcoin advocate and CEO of Chainstone Labs, posted a video criticizing what he called the White House’s attack on First and Second Amendment rights. He seemed genuinely frustrated, saying he barely wants to associate with Republicans anymore. That’s a strong statement from someone who’s been in crypto for over a decade.
Libertarian principles clash with political reality
Fenton’s perspective comes from that early crypto era where Bitcoin was closely tied to libertarian ideals. You know, the whole censorship resistance and financial sovereignty thing. But now he’s watching what he sees as civil liberties being eroded, and it’s creating real tension.
John Deaton, the pro-XRP attorney running for Senate in Massachusetts, put it well. He said he’s seen a lot of Bitcoiners struggling with this situation. Libertarians who are hardcore Bitcoin supporters have a real problem when you start questioning the Second Amendment, he noted.
It’s interesting because Trump had built some goodwill with libertarians by pardoning Ross Ulbricht last year. That was a big deal for the movement. But this Minneapolis incident seems to be testing the limits of that support.
Constitutional concerns emerge
Deaton pointed to several constitutional issues that worry him. There’s the First Amendment concern about the Department of Homeland Security warning against comparing ICE to the Nazi Gestapo. Then there’s the Fourth Amendment issue with ICE agents reportedly being allowed to enter homes without warrants.
Ethereum co-founder Vitalik Buterin weighed in too, warning about the expansion of police state apparatus. He suggested that once this kind of system exists, it keeps finding new targets. That’s a sobering thought.
David Marcus from Superstate made a simpler point – regardless of protesters’ intentions, people can still be appalled by citizens being shot dead on the streets. That seems like common sense, but maybe it needs saying these days.
A marriage of convenience faces strain
Deaton described the crypto industry’s support for Trump as a “marriage of convenience.” That feels accurate. The industry was fighting for survival against the SEC under Gary Gensler, and Trump’s administration offered relief. But now some are wondering about the cost.
“It really is fair to say that the government had a boot on the neck of the industry,” Deaton said. He thinks the crypto community might still view the Trump administration as a net positive, but only compared to what the alternative was.
What’s curious is that despite this public criticism, Trump’s approval rating on the Myriad prediction market has actually gone up recently to nearly 56%. Maybe the broader crypto community isn’t as bothered by these events, or perhaps they’re prioritizing regulatory relief over other concerns.
This whole situation shows how complicated political alliances can be in the crypto world. People come to this space with different values and priorities, and sometimes those values conflict with political realities. The Minneapolis shooting seems to have exposed some of those fault lines.
I think we’ll see more of these tensions as crypto becomes more mainstream. When you’re fighting for regulatory clarity, you might overlook other issues. But when those other issues hit close to home – literally, in terms of constitutional rights – people start reconsidering their positions.
It’s a messy situation, and I don’t think anyone has clear answers. But it’s worth watching how these relationships evolve, especially as we get closer to the next election cycle.
