Ethereum co-founder Vitalik Buterin has raised alarms over the rise of politically linked cryptocurrencies, calling them vehicles for 'unlimited political bribery.' His comments come as Ether (ETH) shows signs of a potential price surge following a pivotal regulatory shift by the U.S. Securities and Exchange Commission (SEC).
The risk of politician coins comes from the fact that they are such a perfect bribery vehicle. If a politician issues a coin, you do not even need to send *them* any coins to give them money. Instead, you just buy and hold the coin, and this increases the value of their holdings… https://t.co/8Zkd7KcpuA
— vitalik.eth (@VitalikButerin) January 23, 2025
In his post on X, Buterin criticized projects promoting “sugar-high short-term fun” over sustainable wealth-building, specifically targeting tokens tied to political figures. Though he did not name U.S. President Donald Trump, his remarks followed the January 17 launch of the Trump-themed “TRUMP” token.
Buterin warned that such tokens risk enabling foreign interference by circumventing constitutional bans on gifts to public officials.
Confirming his sentiment, another user on X with the pseudonym “punk5736” shared a similar post. The X post reads: ‘Now is the time to address how large-scale political coins cross a line: they are not merely sources of fun—whose harm is limited to mistakes by voluntary participants—but vehicles for unlimited political bribery, including from foreign nations.’
"Now is the time to talk about the fact that large-scale political coins cross a further line: they are not just sources of fun, whose harm is at most contained to mistakes made by voluntary participants, they are vehicles for unlimited political bribery, including from foreign… https://t.co/VUhPnlLW0c
— punk5736 (@punk5736) January 23, 2025
Still on the $TRUMP token saga, it’s important to note that this crypto project has drawn scrutiny from ethics watchdogs following its launch. It marks the first time a U.S. president has introduced a cryptocurrency, raising unprecedented concerns about financial entanglements.
As of now, Citizens for Responsibility and Ethics in Washington is reportedly exploring legal action. The group is arguing that the token may violate the Constitution’s Foreign Emoluments Clause.
Meanwhile, Ether is gaining traction after the SEC revoked a contentious accounting rule that had deterred institutional crypto adoption. The regulator scrapped Staff Accounting Bulletin 121 (SAB 121) on January 23, freeing financial firms from reporting crypto holdings as liabilities.
Analysts say the move could accelerate Ethereum’s role in decentralized finance (DeFi). Markus Thielen, head of research at 10x Research, in a news release called the SEC’s decision a “pivotal moment” for Ethereum. He noted ETH’s current chart pattern suggests a “low-risk, high-reward opportunity,” with a potential breakout above 3,500 if it holds support near 3,186.
However, this optimism extends beyond data coming out of technical analysis. Ethereum co-founder Joseph Lubin told Cointelegraph that approval of Ether ETFs with staking features could further boost demand. He also hinted at the Trump family’s potential expansion into Ethereum-based ventures, stating, “They will build one or more giant businesses on Ethereum.”
Traders are eyeing ambitious targets. Pseudonymous analyst Titan of Crypto predicts ETH could reach $7,000, while Crypto Caesar expects a near-term “explosion” in price. Such forecasts hinge on broader market sentiment and regulatory clarity.
#Ethereum $7,000 is Inevitable 🚀
— Titan of Crypto (@Washigorira) January 23, 2025
The hate & FUD surrounding #ETH is at an all-time high. But markets love to surprise.
Those who jumped ship out of frustration might regret it in the coming weeks. pic.twitter.com/4CXoq7bvIM
The juxtaposition of Buterin’s warnings and Ether’s regulatory tailwinds highlights crypto’s dual trajectory: growing institutional acceptance amid lingering governance risks. As the SEC reshapes oversight, the industry faces pressure to balance innovation with accountability—a challenge underscored by the rise of politically charged tokens.
Buterin’s focus on long-term ethics contrasts with the market’s reaction to short-term regulatory wins. Yet both narratives reflect crypto’s evolving role in global finance, where technological promise and political pitfalls increasingly collide.
Abimbola Adu
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