The U.S. Crypto Reserve Is Trump's Money Laundering Dream
A lack of transparency, the coffers of the U.S. Treasury, and unmitigated greed
NOTE: I am licensed to sell insurance and fixed annuity products, not securities. Nothing in this article should be taken as financial advice. I believe cryptocurrency is a scam and no one should ever spend their money on it. Please consult a financial advisor you trust before making any investing decisions.
The Trump Regime’s next big plan is to use U.S. taxpayer money to buy up large quantities of cryptocurrencies and use them to replace the dollar standard.
As a licensed financial professional, I am required to take regular anti-money laundering trainings (AML for short). That’s because life insurance and annuities are prime candidates for criminals who want to obfuscate the source of their income.
In a nutshell, imagine having a large sum of money you want to spend but can’t because it’s the result of criminal activity. If you find someone like me to annuitize it for you then you can put it an annuity, turn it into monthly income, and it’s laundered and safer for you to spend.
There are plenty of safeguards in place to prevent this, including what we call a suitability report that examines a potential client’s financial situation and the source of the funds. It’s not as easy as it once was to use these products for money laundering. Banks and insurance companies were left holding the bag when the source of funds turned out to be from some illegal enterprise.
If you’re a modern money launderer, cryptocurrencies are far easier to manipulate.
In order to understand how crypto can be used for money laundering, let’s first go over how the crypto markets work.
Similarly to the stock market, investors put their money into products they believe will increase in value over time. Someone invests today, the value of their investment increases, and they then withdraw the money later along with the gains they’ve accumulated.
However, publicly traded companies must go through processes to prove their valuation. Quarterly and annual filings, earnings reports, and shareholder meetings all reveal the current state of a company’s financial strength and where company leaders believe they’ll go over time. The stock market is forward-looking, meaning it’s a predictor of a company’s future not only an examination of where they are.
Crypto has no such infrastructure. The value of a cryptocurrency is exclusively derived from what others are willing to purchase it for.
If a current holder and a new buyer agree on a price then that’s it. There is no underlying reason why a cryptocoin has value. There are no quarterly audits, no annual reports, no plans for what’s next. Some coins do have active developers that have plans for their coins, but that is an exception.
Crypto is the ultimate fiat currency.
Yesterday, the U.S. Treasury announced it would not enforce the Corporate Transparency Act, a law passed during the Biden Administration that reveals the identities of business owners.
The Trump Regime wants the U.S. to be the #1 spot in the world for money launderers, and they are now aware that there are fewer measures in place to identify them.
Trump’s handlers even used his social media account to call out certain cryptocoins as being the future major beneficiaries of U.S. taxpayer money:
BTC means Bitcoin, ETH means Etherum, XRP is Ripple, SOL is Solana, and ADA is Cardano.
Investing in cryptocurrencies is exceptionally easy. Places like Coinbase and Crypto.com allow potential investors to make a purchase with their cell phone.
Crypto is also inherently unstable. Prices move up and down constantly, meaning it’s almost impossible to predict if an investment will ever provide any gains at all.
Imagine having a million or so dollars on hand. You throw it into one of those cryptocoins, knowing it’s backed by regular purchases from the U.S. Treasury, wait for it to increase in value, and then cash out with your gains.
Meanwhile, those who invested right before you (and likely with far less money on hand to invest) cashed out are left with crypto that is worth less than when they bought in. You made money, they lost theirs.
Because nothing backs crypto’s value, it could crash to nothing in a moment or rocket up 1000% the next. It’s the ultimate gamble and can really hurt smaller investors trying to make a few dollars when someone with far more to invest hikes the price up significantly with a large purchase then pulls the rug out.
I know I said it above, but I want to reiterate: do not ever buy crypto. I consider it a scam and a Ponzi scheme.
Unfortunately, the Trump Regime wants to balloon this Ponzi scheme upwards and use U.S. taxpayer funds to do so.