Crypto, Politics, & Regulation: the Growing Tension in the Market

Before the beginning of the elections and after the elections, several reports were published about the massive funds invested by the crypto industry in the U.S elections

A report published by the Centre for Political Accountability says that collectively, the digital assets market has invested $134 million in the presidential elections held in the last year

Surging political penetration could hinder the growth of crypto

The growing connections of the crypto industry with U.S politics have raised new concerns over the security of investors with the expected unwanted inclination of regulators towards the stance of the nation’s government

It is worth noting that Donald Trump fought in the elections as a crypto leader by launching his own memecoin at the beginning of 2025

In the past 2 months, the Securities and Exchange Commission of the United States has dropped a year-long lawsuit against some known crypto-based companies; this is now termed as the decision influenced by the funding received by the crypto sector.

The report also notes that $LIBRA fall and growth have also been reported to be directly linked with the politics of Argentina; the token was reportedly based on the Solana ecosystem.

However, a direct influence of the Trump administration has been seen over the crypto market in the past few months, as he signed several executive orders regarding trade and other sectors.

The report also quoted, “ As the industry continues to seek influence through vast contributions and opaque financial maneuvers, the risks of instability, regulatory backlash, and public distrust only grow.”

Several other firms have donated in advance for the 2026 midterm elections, which mirrors the growing penetration of crypto in politics and politics in the crypto.

Is the market struggling due to the growing geopolitical tension?

Until publishing, the crypto market cap is below $3 trillion, with a decline of 11% in the past 30 days and a 4.80% decline in the past 24 hours.

Back-to-back fall in crypto market cap and the prices of known cryptocurrencies Bitcoin has been trading below $85k with an intraday decline of 1.42% and around 10.21% in a week.

The fear and greed index is at 17, indicating a massive fear in the wider market. The change in tariff rates in nations like Canada, India, and others fuels the tension.

According to data from CoinMarketCap, the intraday list is ruled by Maker, Kaspa, Bittensor, Aptos, Monera, and Movement. On the other hand, the weekly loser list has been ruled by Sonic, Jupiter, Worldcoin, Raydium, and Kaspa.

Bitcoin and Neurashi have led the trending list in the past 24 hours, followed by Ethereum, XRP, and Solana, and the most viewed are Fort Knox, This is Fine, Bitcoin, and PI coin, which are most traded.