Key Takeaway: Eric Trump argues that growing demand for cryptocurrencies—especially stablecoins and Bitcoin—could pull global capital into the U.S., reinforcing the dollar’s position during times of weakening confidence. It’s a bold claim with real consequences, especially given recent Fed moves and the Trump family’s crypto stakes.
The son of President Donald Trump and co-founder of publicly traded Bitcoin miner American Bitcoin has made bold claims about cryptocurrency’s potential to bolster the US dollar, coinciding with the Federal Reserve’s first interest rate cut of 2025.
Trump’s Dollar-Crypto Connection Theory
Eric Trump told the Financial Times that “crypto can save the US dollar” by attracting overseas digital assets back to American shores. His argument centers on the idea that dollar-pegged stablecoins and other cryptocurrency products provide foreign investors with easier access to USD-denominated assets, ultimately increasing demand for the greenback.
Speaking to Yahoo Finance, Trump elaborated on how the Fed’s monetary policy decisions directly impact cryptocurrency markets. “A widely expected 25-basis-point Federal Reserve rate cut would potentially see this asset class soar,” he stated, explaining that cheaper money typically pushes investors toward riskier investments like Bitcoin.
The Federal Reserve delivered exactly what Trump predicted on Wednesday, cutting its benchmark interest rate by 0.25 percentage points to a range of 4% to 4.25%—the first reduction since December 2024. Fed Chair Jerome Powell characterized the move as a “risk management cut” due to deteriorating labor market conditions despite persistent inflation.
American Bitcoin’s Market Debut Success
Trump’s cryptocurrency thesis gained credibility on September 3, when American Bitcoin Corp. made its Nasdaq debut following a merger with Gryphon Digital Mining. The company’s stock price surged as much as 39% on its first trading day, though it closed at $8.04, marking a 16.5% gain from its opening price.
Eric Trump and his brother Donald Trump Jr. collectively own approximately 20% of American Bitcoin, giving their combined stake a value of $1.5 billion at the close of trading. At the stock’s peak during the trading session, their holdings were worth $2.6 billion.
“Going public is a game-changer,” Eric Trump said. “It unlocks capital and institutional access that will fuel our mission to build the largest, most investable platform for long-term Bitcoin accumulation”.
The Trump Family’s Crypto Empire Expansion
American Bitcoin represents just one piece of the Trump family’s rapidly growing cryptocurrency portfolio. The company has already mined 215 bitcoins between its April launch and May 31, and raised $220 million from investors to fund bitcoin purchases and mining equipment.
The Trump family’s crypto wealth has expanded dramatically in recent weeks. Their stake in World Liberty Financial, another crypto venture, generated approximately $5 billion in paper wealth when its $WLFI token began public trading on Monday. Combined with American Bitcoin’s success, the family added roughly $1.3 billion to their net worth in just a few weeks.
Historical Context and Policy Implications
Trump’s current crypto enthusiasm marks a dramatic shift from his previous stance. President Donald Trump once called cryptocurrency a “scam,” but the family has since embraced the sector as a core business strategy. This transformation accelerated during the 2024 campaign when Trump courted crypto investors by promising to make the United States the “crypto capital of the world”.
The timing of Eric Trump’s statements coincides with broader regulatory changes favoring the cryptocurrency industry. Under President Trump’s administration, crypto-friendly officials have been appointed to key financial regulatory positions, including Paul Atkins to head the Securities and Exchange Commission.
Market Impact and Future Outlook
Cryptocurrency markets have responded positively to the combination of Fed rate cuts and pro-crypto policies. As Trump predicted, lower interest rates typically reduce the appeal of traditional savings instruments, pushing investors toward higher-risk, higher-reward assets like Bitcoin.
The Fed’s latest projections suggest two additional rate cuts are possible in 2025, which could provide further tailwinds for cryptocurrency investments. Fed Chair Powell noted that the central bank expects inflation pressures to ease while supporting a weakening labor market.
Industry Response and Criticism
While crypto enthusiasts celebrate the Trump family’s high-profile embrace of digital assets, critics raise concerns about potential conflicts of interest. Democratic Senator Elizabeth Warren called the family’s crypto ventures “corruption, plain and simple,” highlighting the unprecedented nature of a sitting president’s family profiting from an industry they help regulate.
Ethics experts point out that the president is largely exempt from traditional conflict of interest rules, but they argue that the extensive overlap between personal profit and policy influence creates concerning precedents.
Looking Ahead
As American Bitcoin continues its public market operations and the Fed potentially implements additional rate cuts, Eric Trump’s thesis about cryptocurrency strengthening the dollar will face real-world testing. The company’s stock performance and Bitcoin mining operations provide investors with a direct barometer of whether Trump’s dollar-plus-Bitcoin strategy resonates on Wall Street.
With the Trump administration’s plans for a national crypto reserve and lighter compliance rules potentially on the horizon, the integration of digital assets into America’s financial system appears likely to accelerate.
Sources: Financial Times interview, Yahoo Finance coverage