Jack Paul 
A shift in crypto political alliances
I’ve been watching this unfold over the past few days, and it’s interesting to see how quickly things can change in political alignments. The crypto industry had largely rallied around President Trump, especially after he made those promises about making America the “crypto capital of the world.” But now, following that fatal shooting in Minneapolis last weekend, some prominent voices are stepping back.
It started with Bruce Fenton, who’s been in the Bitcoin space for over a decade. He posted a video on Tuesday that really caught my attention. Fenton accused the White House of cracking down on First and Second Amendment rights, calling their response to the shooting an affront to civil liberties. What struck me was how personal it felt—he said he barely even wants to associate with Republicans now.
Civil liberties concerns emerge
The shooting involved two Border Patrol officers firing shots that killed Alex Pretti, a legal observer during immigration protests. Pretti apparently had a weapon in legal possession, but it was removed during the skirmish before his death. Fenton expressed frustration about officials questioning why Pretti was armed in the first place.
Then other voices joined in. Vitalik Buterin, Ethereum’s co-founder, warned on Wednesday about how Immigration and Customs Enforcement officials are acting. He suggested that once a police state apparatus exists to this extent, it keeps finding new targets. David Marcus from Superstate made a simpler point—regardless of protestors’ intent, people can still be appalled by citizens being shot dead on streets.
The libertarian dilemma
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 make up a significant portion of hardcore Bitcoin supporters, have a real problem when you start questioning the Second Amendment. Deaton also mentioned First Amendment concerns coming from Homeland Security warnings about comparing ICE to the Nazi Gestapo.
What’s more concerning, perhaps, is an internal ICE memo that apparently grants agents permission to enter homes without judicial warrants. That raises Fourth Amendment issues too. Deaton described the crypto industry’s support for Trump as a “marriage of convenience”—the government had been putting pressure on the industry, and Trump’s administration offered relief compared to alternatives.
Political calculations and polling
It’s worth remembering that Trump pardoned Ross Ulbricht last year, which many libertarians praised. That move recognized Ulbricht’s importance to their movement. But this shooting incident shows there are limits to that support. The alignment was always somewhat transactional, I think.
Despite these public criticisms, Trump’s approval rating on Myriad—that prediction market platform—has actually ticked up to nearly 56%. It had been underwater for most of November and all of December. So while some prominent voices are expressing concerns, the broader crypto community might still view the administration as a net positive compared to other options.
The tension here is real, though. When your political support is based on specific policy positions rather than broader ideology, incidents like this can create fractures. Crypto’s relationship with politics has always been complicated—rooted in libertarian ideals but needing practical regulatory solutions. This Minneapolis situation just highlights that complexity in a very immediate, human way.