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    Musk should stay out of politics, treasury secretary says after ‘America’ party news

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    Elon Musk should focus on running his companies and keep himself out of politics, Donald Trump’s treasury secretary said on Sunday, a day after the world’s richest person – and a former White House adviser – announced the formation of a new political party.“The principles of Doge were very popular – I think if you looked at the polling Elon was not,” Scott Bessent said on CNN’s State of the Union, referring to the so-called “department of government efficiency” that Musk temporarily headed after Trump’s second presidency began in January.Opinion polls found Doge and Musk’s work implementing brutal spending and job cuts within the federal government to be deeply unpopular. And Bessent alluded to how investors in Musk’s companies – including the electrical vehicle maker Tesla, whose sales have suffered during Doge’s existence – publicly pleaded for his time with the Trump administration to be short-lived.“So I believe that the boards of directors at his various companies wanted him to come back and run those companies,” Bessent remarked. “I imagine that those boards of directors did not like this announcement yesterday, and will be encouraging him to focus on his business activities, not his political activities.”Bessent’s reaction came after Musk delivered on his promise to form and bankroll a new US political party, and accused his one-time ally Trump of “bankrupting” the country by signing his massive tax and spending bill into law.The tech billionaire announced the creation of the America party in a series of posts late on Saturday and early Sunday to X, the social media platform he owns.“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” he wrote.“Today, the America Party is formed to give you back your freedom.”Musk, who was appointed to slash federal spending through the unofficial Doge from January through May, has been a vocal critic of Trump’s “big, beautiful bill” that the non-partisan Congressional Budget Office said would increase the national deficit by $3.3tn (£2.85tn) through 2034.It provides substantial tax cuts for the super wealthy while slashing federal safety net welfare programs, with up to 10.6 million people losing healthcare insurance.The pair have feuded over its cost and impacts since Musk left the government in May, and on Friday, when Trump signed the bill into law in a Fourth of July picnic at the White House, the Tesla and SpaceX chief opened a poll on X: “the perfect time to ask if you want independence from the two-party (some would say uniparty) system”.Respondents voted two to one in the affirmative, Musk announced late on Saturday. He gave few details about the structure of his new venture or a timeline for its creation. But his earlier posts suggested it would focus on two or three Senate seats, and eight to 10 House districts.Both chambers of Congress are narrowly controlled by Republicans.“Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people,” Musk said.Bessent was one Trump ally to quickly take a swipe at Musk’s move.Musk’s series of posts to X, which continued into the early hours of Sunday, also appeared to indicate that his on-again, off-again relationship with Trump was firmly back in negative territory.When the pair fell out earlier in the summer, Musk lashed out during an astonishing social media duel in which he stated Trump’s name was in the files relating to associates of the late pedophile and sex trafficker Jeffrey Epstein.Musk later deleted the post and apologized to the president as they embarked on an uneasy truce. On Sunday, however, Musk returned to the subject, reposting a photo of the jailed Epstein facilitator Ghislaine Maxwell that questioned why she was the only person in prison while men who engaged in sex with underage girls – a crime colloquially known in the US as statutory rape – were not.In other posts he said it would be “not hard” to break the two-party stranglehold in US politics enjoyed by Democrats and Republicans. And he questioned “when & where should we hold the inaugural American Party congress? This will be super fun!”There was no immediate comment from the White House about Musk’s announcement, but Trump has made clear his feelings about his former friend in recent days after criticism of the bill.In response to Musk’s posts calling the bill “insane”, Trump said he might “look into” deporting the South African-born, naturalized US citizen billionaire. The president also mused about slashing subsidies to his companies, especially SpaceX, which holds billions of dollars in government contracts.“Doge is the monster that might have to go back and eat Elon. Wouldn’t that be terrible?” Trump asked reporters on Tuesday.There is no requirement for new political parties in the US to register with the Federal Election Commission (FEC) initially, but reporting regulations kick in once spending surpasses what the FEC calls “certain thresholds”.Musk is estimated to have spent more than $275m of his personal fortune helping to get Trump elected to a second term in the White House in last November’s presidential election. More

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      ‘It’s harsh. It’s mean, brutal’: Trump bill to cause most harm to America’s poorest

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      Last November, Donald Trump made a solemn vow to all Americans: “Every citizen, I will fight for you, your family and your future every single day.” Eight months later, Trump is vigorously backing many policies that will mean pain for millions.Trump has pushed to enact the Republican budget bill, which would make significant cuts to Medicaid, Obamacare, and food assistance, and would do the greatest damage to those Americans struggling hardest to make ends meet – the 30% of the US population that lives in households earning under $50,000 a year.Even as Trump and Republican lawmakers are rushing to cut over $1.4tn in health and food assistance for non-affluent Americans, Trump continues to pressure Congress to extend over $3tn in tax cuts that disproportionately help the wealthy and corporations.Trump has embraced these Robin-Hood-in-reverse policies, even though it was voters earning less than $50,000 a year who delivered victory to him last November. They favored him over Kamala Harris by 50% to 48%, according to exit polls, while Trump and Harris tied among voters earning $50,000 or more a year.Several social policy experts said Trump has engaged in hypocrisy at best and betrayal at worst when it comes to the working-class and blue-collar Americans he promised to fight for. Speaking about the Republicans’ “big, beautiful” budget bill, Sharon Parrott, president of the Center for Budget and Policy Priorities, said: “Who’s getting hit, who’s bearing the cost? It’s people with low and middle incomes, people that the president and many Republican policymakers promised to serve and support in the last election.”View image in fullscreenThe budget bill would mean a net financial loss for the bottom 30% of American households by income – after factoring in its tax provisions and cuts in benefits. The House bill would hit the lowest-earning 10% of Americans hardest: for them, it would mean a painful $1,600 cut in income on average (a 3.9% drop), according to the Congressional Budget Office (CBO). At the same time, the Trump-backed bill would be a boon to wealthy households – it would mean a $12,000 increase in net income, on average, for households in the top 10%, those earning above $692,000 a year. According to the Yale Budget Lab, the top 0.1% – those with income over $3.3m – would receive tax cuts of $103,500 on average.The CBO says the income of the bottom 10% tops off at $22,868 (before factoring in government transfers). The second lowest decile earns from $22,868 to $43,137; the third decile earns up to $55,628; and the fourth up to $68,601.The Yale Budget Lab found that the bottom 20% of US households would see their incomes drop by 2.9% on average over the next decade, and the second lowest quintile – moderate-income households – would suffer a 0.4% loss of income on average. But the richest 20% would see their incomes rise by 2.3%. Those in the top 1% would see their incomes climb by $29,585 on average.Trump is demanding these big tax cuts for the rich even though the CBO says the budget bill will increase the federal debt by $3.3tn – a move that will push up interest rates and make mortgages and home-buying more expensive.According to the Institute of Taxation and Economic Policy, a left-leaning thinktank, the $121bn tax cuts that would go just to the richest 1% next year are significantly more than all the tax cuts that would go to the bottom 60% of Americans in terms of income.The poorest 20% of Americans would receive just 1% of the bill’s tax cuts next year, while the highest earning 5% would receive 44% of the cuts.Last week, Trump urged lawmakers to enact the bill, saying: “There are hundreds of things in there. It is so good.” At a news conference, the president said the more than $1tn in Medicaid and food assistance cuts wouldn’t hurt anyone.“It won’t affect anybody,” he said. “It is just fraud, waste and abuse.”But Parrott took a sharply different view: “The bill stands alone historically for its unique upside-down mix of large tax cuts for the top, deep cuts that affect low- and middle-income people, and massive increases in deficits and debt.”John Ricco, the Yale Budget Lab’s associate director of policy analysis, said: “It’s unambiguous that low- and moderate-income Americans will be worse off on average under the budget bill, and that’s principally because the cuts in Medicaid and Snap [the Supplemental Nutrition Assistance Program] would by definition fall most heavily on these groups,” Ricco said.Jeanne Lambrew, the Century Foundation’s director of health policy reform, estimates that at least 16 million Americans will lose health coverage because of the budget bill – refuting White House claims that “no one will lose coverage”. Lambrew said the bill would cause a more than 50% increase in the number of uninsured nationwide, to nearly 45 million people.What’s more, the Trump-backed plan sharply reduces Affordable Care Act subsidies, and that will force millions of Americans to either drop coverage or pay far more for coverage. Millions of Americans will find it harder to obtain healthcare, with many forced to take on far more medical debt.While Trump and many Republicans say the Medicaid cuts are all about reducing “waste, fraud and abuse”, Lambrew calculates that a mere 3.5% of the $1tn in healthcare cuts come from cutting waste and abuse. “What Trump has been saying is, ‘We’re not cutting Medicaid. We’re just cutting fraud.’ That’s gaslighting.” Lambrew said.Archbishop Timothy Broglio, president of the US Conference of Catholic Bishops, sent the Senate a letter that harshly criticized the budget bill. “As Pope Leo XIV recently stated, it is the responsibility of politicians to promote and protect the common good, including by working to overcome great wealth inequality,” he wrote. “This bill does not answer this call. It takes from the poor to give to the wealthy.”According to a Quinnipiac University poll, only 27% of registered voters support the GOP budget bill, while 53% oppose it. A Fox News poll found that 38% support the bill, while 59% oppose it.The House bill’s deep cuts in food benefits will cause 7 million people, including over 2 million children, to lose food aid or have their food aid cut significantly. The Trump-supported bill also makes sharp cuts in Pell grant awards. The Center for American Progress says this means 4.4 million students from low- and moderate-income families could lose some or all of their federal grant aid.In another blow to Americans earning under $50,000, Trump pushed to have the budget bill eliminate the “Low-Income Home Energy Assistance Program”, which, as one website put it, “keeps poor people from freezing to death at home”. Killing the program would end heating subsidies for 6 million Americans, but so far congressional Republicans have spared the program and not bowed to Trump on this.View image in fullscreenIn another blow to blue-collar Americans, the bill would undo much of Joe Biden’s efforts to speed the creation of clean-energy industries, and that could put hundreds of thousands of potential jobs at risk, many of them factory jobs.“In this bill, folks in Congress went out of their way not to give anything to low-income people,” said Chuck Marr, vice-president for federal tax policy at the Center for Budget and Policy Priorities. He noted that in previous tax cut bills that favored the rich, GOP lawmakers made sure to include some sweeteners for low- and moderate-income Americans.“But in this bill,” Marr said, “folks in Congress said: no, we’re going to go after these people. They’re going after healthcare and food, and these are the people who are also going to get hammered by Trump’s tariffs.” Lower-income people spend a higher percentage of their income on goods.“This bill is a major shift,” Marr added. “They’re taking away from poor people and working-class people and channeling it to very high-income people. I think it’s punitive. It’s harsh. It’s mean, brutal.”Trump’s tariffs would also hit less affluent Americans hardest. One study found that Trump’s planned tariffs would cause the bottom 20% of households to pay up to 5.5% of their income toward tariff-caused higher prices. That’s more than two and a half times the percentage that those in the top 20% would pay (2.1% of income).Trump has repeatedly boasted that the bill contains several provisions he championed to help working-class Americans. At a White House event to promote the bill, he pointed to a DoorDash driver from Wisconsin who was on hand to help make his case that the “no tax on tips” provision would help workers.But tax experts say that provision will help only a tiny fraction of those earning under $50,000. Only 4% of workers in the bottom half by income are in tipped jobs. Moreover, nearly two-fifths of tipped workers are already earning so little that they don’t pay federal income taxes.“Given how the current income tax system works, this provision will provide little or no benefit to those workers,” said Ricco. “Those workers tend to have low incomes, and the US system doesn’t basically tax their incomes, and this won’t offer them any additional tax reduction.” In other words, the server making $100,000 a year at a high-end restaurant will benefit substantially from no tax on tips, while the hotel housekeeper or 20-hour-a-week waiter at a diner making $25,000 a year will be helped little or not at all.As for Trump’s much-ballyhooed “no tax on overtime” provision, that, too, will do little for those earning under $50,000, Ricco said. “That provision is really geared to middle- and upper-middle groups,” he said. “People in the bottom 50% aren’t paying much income tax, and so no tax on overtime wouldn’t benefit them much. People in the bottom 40%, they’re often in a precarious employment situation. They’re generally not working 45 or 50 hours a week.”Ricco estimated that for Americans in the bottom 40% by income, the no tax on overtime provision will mean “less than a $10 tax cut per year”. “It’s essentially a rounding error,” he said.Republicans boast that increasing the child-tax credit will help millions of struggling families – the House bill would increase that credit, now $2,000, to $2,500, while the Senate raises it to $2,200. Under current law, one in four children – about 17 million – are ineligible to qualify for the full $2,000 credit because their family’s income is too low to qualify for the full credit. A two-parent family with two children needs to earn over $48,000 to obtain the full credit.Under the House bill, a single parent with two children who earns $16,000 a year would get no additional tax credit, while a married couple with two kids and a $400,000 income would see their tax credit jump by $1,000.With their eagerness to cut the social safety net, Republicans seem to be treating millions of Americans who earn less than $50,000 as undeserving takers. “People earning under $50,000 are major targets of the Republican agenda. Their health coverage is targeted. Their food security is targeted,” said Marr. “They are left out of key provisions expanding tax cuts, like the child tax credit. They are most at risk from the Republican tariffs. They’ll be hurt across the board.”Marr said the budget bill treats “these people very harshly”.“It’s the harshest bill we’ve ever seen since budget deficits became an issue 40 years ago,” he said. “This is the first bill that simultaneously targets programs for poor people and working-class people to pay for it, and then takes that money to pay for tax cuts for very wealthy people. It makes poor and working-class people worse off. That’s not been done before.” More

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      Wall Street shivers over ‘hot commie summer’ after Mamdani’s success

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      When Zohran Mamdani, a 33-year-old self-described socialist, won New York’s mayoral Democratic nomination last week over a seasoned but scandal-scarred veteran, the city’s financial elite had a meltdown.This was the start of “hot commie summer” in the city, New York hedgevfund billionaire Daniel Loeb posted to X. John Catsimatidis, billionaire CEO of grocery chain Gristedes and friend of Donald Trump, warned on Fox Business: “If the city of New York is going socialist, I will definitely close, or sell, or move.”CNBC financial news channel anchor Joe Kernen compared New York to Batman’s crime-riddled Gotham. “ They’re taking Wall Streeters and making them walk out onto the ice in the East River, And, and then they fall through. I mean there is a class warfare that’s going on.”With five months until the mayoral election proper, the 1% are revolting, led by loquacious billionaire hedge funder Bill Ackman, who said he and others in the finance industry are ready to commit “hundreds of millions of dollars” into an opposing campaign. “The risk/reward of running for mayor over the next 132 days is extremely compelling as the cost in time and energy is small and the upside is enormous.”Ackman said he was “gravely concerned” because he believed the leftwing candidate’s policies would trigger an exodus of the wealth that would destroy the tax base and undermine New York’s public services. The city under Mamdani, he posted on Wedneday, “is about to become much more dangerous and economically unviable.”In 2021, the top 1% of New York City taxpayers paid 48% of taxes – up from 40% in 2019, according to a report from the city’s finance department. But at the same time, New York has become an increasingly unaffordable city for those outside the 1% – especially for people of color.In a post a day later, Ackman said: “The ability for New York City to offer services for the poor and needy, let alone the average New Yorker, is entirely dependent on New York City being a business-friendly environment and a place where wealthy residents are willing to spend 183 days and assume the associated tax burden. Unfortunately, both have already started making arrangements for the exits.”“Terror is the feeling,” Kathryn Wylde, the chief executive of the Partnership for New York City, which represents top business leaders, told CNBC on Tuesday.Gerard Filitti, senior legal counsel at the Lawfare Project, a pro-Israel thinktank, non-profit and litigation fund, and a New Yorker with strong ties to the finance industry, said Mamdani’s nomination “marked a dangerous turning point for the city”.“There’s big concern that businesses and the economy will be hurt. There’s already a move by business leaders and entrepreneurs to consider a move outside of the city, taking jobs and tax dollars with them, at time when the front-running candidate promises to make even more change that could destroy the economy,” Filitti said.The anger was not necessarily purely economic. Wall Street’s decision makers have been shaken after seeing their preferred candidate, Andrew Cuomo, pushed aside despite the millions they poured into his campaign.Fix the City, Cuomo’s political action committee (Pac), raised a record $25m to help see off Mamdani. Former New York mayor Michael Bloomberg alone gave $8.3m to the Pac.“These are billionaires who are giving hundreds of thousands and millions of dollars to Andrew Cuomo precisely because they know we are going to tax them to make life a little bit more affordable here, in the most expensive city in the United States,” Mamdani told the New York Times before the election. “They know they can count on Cuomo because Cuomo has a track record of rewarding the political donors.”View image in fullscreenNew York’s moneyed class argues it’s not about them but the future of the city. “When you look at what New York City is and has been historically – a bastion of trading and the center of world capitalism, the engine of economic growth and prosperity, the stock market, an the inspiration for other world economies to develop their markets and economies in line with New York – and now what were seeing is an economy and quality of life that is slowly deteriorating,” said Filitti.“Now we have a front-running Democrat candidate who is promising even more radical change and that change is a threat to the structure of New York and the way people identify with New York City,” Filitti added.It’s an argument the rich have made many times before. Many of the 1% threatened to leave after former mayor Bill de Blasio called for raising their taxes to pay for the losses the city experienced after the Covid pandemic. Wall Street poured millions into mayor Eric Adam’s 2021 campaign for office to see off more progressive candidates. They won those fights; this time, they lost.A former Wall Street CEO told Politico: “These titans of Wall Street and titans of finance are used to getting their way. They didn’t get their way. They got the opposite of their way. They got a guy who couldn’t be more disliked by them – and vice versa.”Wall Street’s vision for the city is probably far from that shared by many other residents of a sprawling metropolis that traditionally has played host to vibrant immigrant communities from all over the world, many of them poor. It is of course, host to the Statue of Liberty on whose base is written the famous lines: “Give me your tired, your poor, Your huddled masses yearning to breathe free.”Manhattan was also the birthplace of the Occupy Wall Street protests in the US back in 2011, which occupied the downtown Zucotti Square – blocks from Wall Street – and eventually saw protests spread across the rest of the country and the world.Democratic progressives were quick to celebrate Mamdani’s victory. “Your dedication to an affordable, welcoming, and safe New York City where working families can have a shot has inspired people across the city. Billionaires and lobbyists poured millions against you and our public finance system. And you won,” wrote representative Alexandria Ocasio-Cortez, another progressive who won out against a more establishment candidate.Another longtime critic of Wall Street and the billionaire class also saw a change in politics as usual. “The American people are beginning to stand up and fight back. We have seen that in the many Fighting Oligarchy events that we’ve done around the country that have drawn huge turnouts. We have seen that in the millions of people who came out for the No Kings rallies that took place this month in almost every state. And yesterday, we saw that in the Democratic primary in New York City,” senator Bernie Sanders wrote in The Guardian.Millions will now be spent attacking Mamdani. But he has seen off one well-funded attempt to derail his campaign. Whether or not his campaign has the momentum to last until November, remains to be seen. But Wall Streeters have been put on notice that New York, and the changing nature of the Democratic party, may no longer be as amenable to their interests, or their vision for New York. More

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      Union leaders’ exit from DNC exposes ‘mind-boggling’ tensions inside Democratic party

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      As the Democratic party fights to rebuild from a devastating election defeat, the abrupt exit of the presidents of two of the nation’s largest labor unions from its top leadership board has exposed simmering tensions over the party’s direction.Randi Weingarten and Lee Saunders quit the Democratic National Committee, saying it isn’t doing enough to “open the gates” and win back the support of working-class voters. Ken Martin, the new DNC chair, and his allies told the Guardian that the party was focused on doing exactly that.Weingarten, president of the 1.8-million-member American Federation of Teachers, resigned after Martin did not renominate her to serve on the DNC’s important rules committee. In her resignation letter, Weingarten wrote that education, healthcare and public service workers were in “an existential battle” due to Donald Trump’s attacks and that she did not “want to be the one who keeps questioning why we are not enlarging our tent”.Saunders, the long-time president of the 1.3-million-member American Federation of State, County and Municipal Employees, also issued a critical statement. “These are new times. They deserve new strategies,” he said. “We must evolve to meet the urgency of the moment. This is not a time to close ranks or turn inward … It is our responsibility to open the gates [and] welcome others.”View image in fullscreenSeveral DNC officials asserted that the two departures were a “tempest in a teapot”, insisting that Martin is working to have the DNC welcome more people and battle against Trump. Weingarten and Saunders evidently felt sore that their candidate for DNC chair, Ben Wikler, the head of Wisconsin’s Democratic party, lost to Martin, the officials suggested.Steve Rosenthal, former political director of the AFL-CIO, the main US labor federation, said the resignations were an inarguable blow to the DNC.“When something like this becomes public, there’s clearly a spotlight on it,” he said. “Giving the longstanding leadership role that Randi and Lee have played in the Democratic party, and at a time when the party is trying to desperately improve its image with working-class voters and remake itself in a lot of ways, this is really unacceptable.”In an interview, Weingarten said she wished the DNC was conducting an all-out nationwide mobilization to defeat the Trump/GOP budget bill, which would throw an estimated 11 million Americans off health insurance, cut food stamps to millions of families and cause the federal debt to soar by over $3tn.DNC chair Martin told the Guardian that, under his leadership, the DNC was already doing what Weingarten and Saunders were calling for. “I’ve always called myself a pro-labor progressive,” Martin said, noting that he had been a union member and labor organizer. “My family grew up on programs that would be cut if Trump’s tax scam passes. Winning back the working class and stopping Trump from harming families is exactly where our focus is.”Martin added that in his nearly five months as DNC chair, the committee has held 130 town halls and launched an “aggressive war room” to take on Trump. “My first action as DNC chair was pledging to have strong labor voices at the table,” Martin said. “Our job is to win in 2025, 2026 and beyond.”But their resignation statements signal that Weingarten and Saunders have a very different view from Martin of what the DNC is doing on his watch. Several DNC officials said the pair might not be up to date with the DNC’s activities across the 50 states.Weingarten told the Guardian that Martin and the DNC are not showing nearly enough urgency in opposing the Trump/GOP budget bill. “The number one issue in the next two weeks is: how do we help fight the GOP budget bill that faces almost two-to-one public opposition,” she said, adding that the DNC should be going all out to help House and Senate Democrats torpedo the bill.“We can be the voice and be out there with stories about how the budget bill will hurt, and the DNC is a perfect place for doing that,” Weingarten said. “You got to win hearts and minds now, not in October 2026. That’s the kind of thing that we’ve been looking for since January. We have to be a party that wins on the ground.”Artie Blanco, a union activist and DNC vice-chair, said that under Martin, the DNC had been fighting hard against the budget bill.“There are over 16,000 Democratic volunteers making phone calls across the country in targeted congressional districts about the GOP budget, and how it will be devastating to working people,” Blanco said.Weingarten voiced dismay about not being renominated for the rules committee. “It was definitely a sign that my input was not sought any more and [not] appreciated,” she said, stressing that the AFT “will continue to be a leader in electing pro-public education, pro-working family candidates” and planned to be “especially engaged” in the 2025-26 elections.Jane Kleeb, president of the Association of State Democratic Committees, said that Weingarten’s and Saunders’s “claims that Ken and the DNC are not standing up for working people and not standing on the side of unions and union members is laughable”.“Ken has been on the front line to bring unions back to our party,” added Kleeb, who is also chair of the Nebraska Democratic party. “He has appointed more union leaders than any other [DNC] chair” – and put unions at the forefront while chair of the Minnesota Democratic-Farmer-Labor party, before he assumed the DNC’s helm, she said.Stuart Appelbaum, the DNC’s labor chair, and president of the Retail, Wholesale and Department Store Union, took issue with the statements Weingarten and Saunders made about Martin.“I am thrilled that Ken Martin is prioritizing the importance of having labor at the table and has ensured that there is strong labor representation in every part of the DNC,” Appelbaum said. He added that Martin “understands that working people are the backbone of the party”.Michael Podhorzer, a political strategist and former AFL-CIO political director, said the Democratic party has for decades not focused enough on working-class voters. He said Democrats would have a tough battle winning back blue-collar voters. “The experience of many American working people is they feel left off the radar,” Podhorzer said.Democrats, Podhorzer noted, have suffered the greatest loss of support in communities that were “gutted” after the 2008-09 recession; from the signing of Nafta, a trade deal with Canada and Mexico; and from normalized trade relations with China. Nafta and normalized trade with China were ratified under President Clinton, a Democrat.Arlie Russell Hochschild, a sociologist who has studied Trump’s success in wooing working-class voters, said the decline of US labor unions over the past 50 years has necessarily meant that unions have less sway in the Democratic party.Rosenthal, the former AFL-CIO official and also a former DNC deputy political director, called on the DNC and Democrats to work far more closely with unions.“Among working-class voters, support for unions is through the roof, and the Democratic party and the Republican party have no credibility with working-class voters,” he said. “They don’t trust the parties, but they trust the labor movement. It’s incumbent on the party to build bridges and put the labor movement front and center in everything it does.”“From that standpoint,” he continued, the tension that led to Weingarten and Sauders quitting “is mind-boggling”. Several labor leaders said Martin should have done more to keep prominent and powerful union leaders like Weingarten and Saunders satisfied and on the DNC, even if they backed one of his opponents for DNC chair.Responding to Weingarten and Saunders’ concerns, Martin said: “The DNC and our partners are leading the fight against Trump’s budget bill, investing unprecedented dollars into states so Democrats can win elections from the ground up, and reaching out to voters in working-class districts.”Martin told the Guardian that he’s trying hard to build bridges with the broader labor movement, and increase its role in the DNC and in the Democrats’ efforts. “Winning back the working class and stopping Trump’s budget bill isn’t a political goal, it’s personal,” he said. “Labor runs through my family’s veins.” More

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      ‘I’m scared to death to leave my house’: immigrants are disappearing from the streets – can US cities survive?

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      At Hector’s Mariscos restaurant in the heavily Latino and immigrant city of Santa Ana, California, sales of Mexican seafood have slid. Seven tables would normally be full, but diners sit at only two this Tuesday afternoon.“I haven’t seen it like this since Covid,” manager Lorena Marin said in Spanish as cumbia music played on loudspeakers. A US citizen, Marin even texted customers she was friendly with, encouraging them to come in.“No, I’m staying home,” a customer texted back. “It’s really screwed up out there with all of those immigration agents.”Increasing immigrant arrests in California have begun to gut-punch the economy and wallets of immigrant families and beyond. In some cases, immigrants with legal status and even US citizens have been swept into Donald Trump’s dragnet.The 2004 fantasy film A Day Without a Mexican – chronicling what would happen to California if Mexican immigrants disappeared – is fast becoming a reality, weeks without Mexicans and many other immigrants. The implications are stark for many, both economically and personally.“We are now seeing a very significant shift toward enforcement at labor sites where people are working,’ said Andrew Selee, president of the nonpartisan Migration Policy Institute. “Not a focus on people with criminal records, but a focus on people who are deeply integrated in the American economy.”In California, immigrant workers comprise bigger shares of certain industries than they do for the nation overall. Here, the foreign-born make up 62% of agriculture labor and 42% of construction workers, according to the American Immigration Council. About 85% of sewing machine operators in garment factories are foreign-born. Fully 40% of entrepreneurs are foreign-born.Nationally, about a quarter of workers are foreign-born in agriculture and construction, according to the American Immigration Council. More than half of drywall hangers, plasterers and stucco masons are foreign-born. And in science, technology, engineering and math – the so-called Stem fields – nearly a quarter of workers are foreign-born, said the council.The current enforcement trend, Selee said, will “lead to a strategy that will have big economic implications if they continue to go after people who are active in the labor force rather than those who have criminal records”.In both California and across an ageing nation, about half of the foreign-born are naturalized US citizens – a crucial defense in immigration raids and arrests.View image in fullscreenSelee said the current strategy was launched when “the Trump administration realized they weren’t getting large numbers by following traditional approaches to pursuing people who are priority targets for deportation”.Now the threat and chilling effect from immigration raids can be felt in disparate communities from Dallas to El Paso to rural Wisconsin – among migrants and, in some cases, the employers who hire them.In the small town of Waumandee in Wisconsin, dairy farmer John Rosenow said he can’t find US citizens who can withstand the rigors of dairy work.“Fact of the matter is if you want to eat or drink milk you are going to need immigrant workers,” he said.“Yes, we want to get rid of the people who are bad actors,” Rosenow said. “But the people I know, people who are working in the dairy farms, are just hard-working people, getting things done, doing jobs Americans don’t want to do.”In California’s San Joaquin valley, rancher and melon-grower Joe Del Bosque has heard reports of US agents chasing workers in the strawberry fields south of his operation.The San Joaquin valley, known as the food basket of the world, is heavily dependent upon foreign-born workers, especially at harvest time, Del Bosque said. He currently has 100 people working for him and that number will double as the harvest picks up in the coming weeks.“They’re going to disrupt the harvest and food chain. This will hurt the American consumer,” Del Bosque said. “These people are hard workers. They come to work, especially if they have families here or in Mexico.”In a surprise pivot late last week, Trump said there would be an easing of the crackdown in agriculture and the hospitality industries. The New York Times first reported that new guidance from a senior Immigration and Customs Enforcement (Ice) official called for a “hold on worksite enforcement investigations/operations” in the agriculture sector and restaurants and hotels. The Ice guidance, issued in an email, also said agents were not to make arrests of “noncriminal collaterals”, a key point for those who note that many detained immigrants have had no criminal record. However, the Department of Homeland Security told staff it was reversing that guidance on Monday.Some business leaders and immigrants remain scared and confused.View image in fullscreenRaids, or the threat of them, are also taking an emotional toll on families and generating protests in Chicago, Seattle, Spokane, New York, San Antonio, Dallas and elsewhere. Bigger protests are expected in days to come.In El Paso, protesters flipped the White House script that undocumented immigrants were “criminals”. They waved mostly US flags and shouted “No justice, no peace. Shame on Ice.”Among the protesters was Alejandra, a US citizen and a junior at the University of Texas at El Paso. She asked for partial anonymity for fear of reprisal against her mixed-status family.skip past newsletter promotionafter newsletter promotionShe said she took to this border city’s streets to honor the sacrifice of her grandparents who migrated from Ciudad Juárez. “All it takes is for you to look at who took that first step to bring you the life you have currently,” Alejandra said.In the Dallas area, a Guatemalan worker said he had been absent from construction sites for days.“There’s too much fear, too much to risk,” said Gustavo, 34, requesting his surname be withheld because he is undocumented. “I fear tomorrow, tonight. I may be deported, and who loses? My family back in Guatemala.”Tough immigration enforcement has been the top-polling issue for Trump. But favor may be slipping. A poll released this week by Quinnipiac University showed Trump had a 43% approval rating on immigration and a 54% disapproval rating. That poll was conducted between 5 and 9 June – after several days of protests.Meantime, back in Santa Ana, a city of about 316,000 in southern California, shop owner Alexa Vargas said foot traffic had slowed around her store, Vibes Boutique, with sales plummeting about 30% in recent days.On a recent day, the shop’s jeans and glitzy T-shirts remained un-browsed. Metered parking spots on the usually busy street sat empty. A fruit and snow cone vendor whom Vargas usually frequents had been missing for days.“It shouldn’t be this dead right now,” Vargas, 26, said on a Tuesday afternoon. “People are too scared to go out. Even if you’re a citizen but you look a certain way. Some people don’t want to risk it.”Reyna, a restaurant cook, told her boss she didn’t feel safe going to work after she heard about the immigration detentions at Home Depot stores in the city.The 40-year-old, who is in the US without legal status, said she fears becoming an Ice target. Current immigration laws and policies don’t provide a way to obtain legal status even though she’s been living in the US for more than 20 years.“I need to work but, honestly, I’m scared to death to leave my house,” she said.For now her life is on hold, Reyna said.She canceled a party for her son’s high school graduation. She no longer drives her younger children to summer school. She even stopped attending behavioral therapy sessions for her seven-year-old autistic son.Reyna said she can’t sleep. She suffers headaches every day.Early on Tuesday, she said, immigration agents in an unmarked vehicle swept up her husband’s 20-year-old nephew, who is a Mexican national without legal status. The scene unreeled across from her home.Her autistic son, a US-born citizen, has begged her to allow him to play on the front yard swing set.“No, honey. We can’t go outside,” Reyna told him.“Why?” he asked.“The police are taking people away,” she explained. “They are taking away people who were not born here.”This story was co-published with Puente News Collaborative, a bilingual non-profit newsroom, convener and funder dedicated to high-quality, fact-based news and information from the US-Mexico border. More

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      in UK Politics

      Energy bills could be cut by up to 25% for thousands of UK businesses

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      Electricity costs for thousands of businesses will be cut by scrapping green levies to help them compete with foreign rivals.The plan, which could cut bills by up to 25 per cent, forms a key part of Sir Keir Starmer’s 10-year industrial strategy which he hopes will address stuttering economic growth and transform the business landscape.The prime minister said the plan marks a “turning point for Britain’s economy” by supporting key industries where there is potential for growth.Manufacturers have warned “crippling” power costs are far higher for UK businesses than competitors overseas.Sir Keir Starmer, right, and climate change and Net Zero secretary Ed Miliband, left, visited Rocester last week More

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      in US Politics

      ‘This presidency is a brand-franchise’: Trump has taken the commercialization of politics to a new level

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      “I like thinking big. I always have. To me it’s very simple: if you’re going to be thinking anyway, you might as well think big.”Those were Donald Trump’s words to writer Tony Schwartz in the Art of the Deal. In his second term, Trump has been thinking big about making money. Since his reelection campaign began, Trump is estimated to have more than doubled his net worth to $5.4bn.A sizeable chunk of that cash has come from the launch of Trump-branded products. This week the Trump Organization entered the mobile phone business with a Trump-branded service that will include a “sleek gold” phone, which costs $499, that is “made in America”. Maybe?Never to miss a patriotic marketing moment, they launched Trump Mobile at Trump Tower in New York on the 10-year anniversary of their father’s announcement at the top of a gold escalator, to the sound of Neil Young’s Rockin’ in the Free World, that he would run for president. The premium tier of service would be dubbed the 47 Plan, priced at $47.45 a month.Donald Trump Jr said the brothers had partnered with “some of the greatest people in the industry to make sure that real Americans get true value from their mobile carriers”.“Celebrity” phone launches are hardly new. The launch announcement came days after the actor-hosts of the popular SmartLess podcast – Will Arnett, Jason Bateman and Sean Hayes – announced their own cut price phone plan, and more than two years since actor Ryan Reynolds profited from his stake in Mint Mobile, sold to T-Mobile for $1.35bn.So was Trump – or the Trumps – thinking big or just following a pattern of seemingly random licensing deals that renew concerns about the president’s business enterprises? After all, if Trump is really concerned about phone prices, he could – as president – push for legislative change.“There was a lot of dialog when Trump returned to power that we would see in this term a particularly interesting residency in the White House about how much money would be made,” says marketing-PR guru Mark Borkowski, “and this is a typical Trump side-hustle playing off Maga patriotism.”The blurred lines between business and politics, impacting how candidates are portrayed, policies are shaped and voters engage with the political process – commonly referred to as the commercialization of politics – may not be Trump’s to own exclusively, but he’s taken it to a new level.“It is troubling, and more than in jest, that this is now a political economy and he’s actually saying this presidency is a brand-franchise,” says Borkowski. “There is no separation between power and profit. He’s redrawn the boundaries between commerce and the office of the president, and he’s accelerated the notion of post-ethical politics.”The gold phone and patriotically-priced phone plan – “47” referring to Trump’s current term, and “45” referring to the previous – is only the latest ask of the Maga (Make America Great Again) faithful, otherwise known as ultra-Magas, to show their commitment in dollar terms.“The Trumps’ continued business expansion often serves to reinforce Trump’s political persona rather than distract from it. For Maga supporters, his business ventures are interpreted as proof of his self-made success and outsider status – both key pillars of his political brand,” says Zak Revskyi at the New York brand management consultancy Baden Bower.“These business moves don’t just coexist with his political identity – they actively feed into it. They help sustain the image of Trump as a results-oriented executive who blends capitalism with populism,” Revskyi adds.On Thursday, Bloomberg revealed that investment bank Dominari Holdings, where Donald Jr and Eric work as advisers, helped an obscure toymaker selling Smurf-branded tumblers, koala backpacks and plush sea turtles, pivot into crypto this week, sending its shares up more than 500%.The outlet noted that there was no sign in regulatory filings that Trump family members were involved in this or previous crypto-related transactions through the bank – which is based in Trump Tower – but noted that “the gain added to the windfalls of executives orbiting the president’s family”.Aside from the Trump’s well-publicized (and profitable) adventures in crypto – his ownership stake in World Liberty Financial produced $57,355,532 in income since it was launched last year – the family brand has upped by 20 its Trump-branded real-estate projects around the globe, calculated Citizens for Ethics, including an 80-storey skyscraper in Dubai, and plans for branded hotels in Riyadh and Jeddah, and a golf course in Qatar, to an estimated value of $10bn.skip past newsletter promotionafter newsletter promotionA 234-page financial disclosure form released by the Office of Government Ethics this month showed 145 pages of stock and bond investments. The disclosure showed that 2024 was a very good year for royalty payments from products featuring his name and likeness.Among them, calculated NBC News, was $3m from a Save America coffee table book; $2.5m from Trump sneakers and fragrances; $2.8m from Trump watches; $1.3m from a Trump-endorsed Bible; and just over $1m each from “45” guitars and non-fungible token (NFT) sales. Most have at least some aspect of gold-coloring, according to a review of the “Golden Age of America” Trump collection.Many of the assets are held in a revocable trust overseen by Donald Jr, including more than 100,000 shares, or 53%, of Trump Media and Technology Group, the company that owns Truth Social, valued at 5.15bn, or held in partnerships that do not require divestment under conflict of interest laws.The business of selling the family name hums along despite, or because of, the on-the-fly dramas that envelope the White House from week to week.The White House claims that the president “has been the most transparent president in history in all respects, including when it comes to his finances”, noting that Trump handed over “his multibillion-dollar empire in order to serve our country, and he has sacrificed greatly”.The Trump phone, which analysts doubt can be “made in America”, as promotional materials assert, is merely an add-on to a thriving political-business operation.Democrats have found it hard to find a footing in calling out the interplay, in part because Trump’s predecessor, Joe Biden, was similarly accused of allowing a family business of influence peddling to evolve around him and issued a pre-emptive pardon of family members before he left office.“I don’t do it for the money. I’ve got enough, much more than I’ll ever need. I do it to do it,” Trump wrote in the opening lines of in the Art of the Deal, published in 1987. “Deals are my art form. Other people paint beautifully on canvas or write wonderful poetry. I like making deals, preferably big deals. That’s how I get my kicks.”But under Trump politics and business have become melded as never before.“It’s a new hyper-reality that exists in America,” says Borkowski. “It’s about turning political fandom into money, and he’s laughing all the way to the bank. He’s doing exactly what was expected. Nobody in Trump’s heartland sees this as damaging – it’s what they expect a deal-maker to do. The absurdity of everything Trump does is the point.” More

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      in UK Politics

      Starmer warned British jobs at risk without better trade deal from Trump

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      Keir Starmer has been warned that UK jobs are at risk without a better trade deal with Donald Trump that removes tariffs from the beleaguered steel industry. President Trump and the PM finally signed off a US-UK agreement to slash trade barriers on goods when they met at the G7 in Canada on Monday.But missing from the deal was the steel industry, which still faces levies of a whopping 25 per cent on goods entering the US. Industry experts and unions have now called for these to be scrapped as soon as possible, amid warnings they are a threat to jobs and livelihoods. But there are fears negotiations could drag on into the autumn after the transport secretary said work to get tariffs removed will continue in the coming “days, weeks and months”. Alasdair McDiarmid, assistant general secretary of the Community union, said it was “absolutely vital” to secure a deal on steel as quickly as possible.“Our steel producers and their US customers need an end to the current state of uncertainty to allow normal business to resume,” he said.“Crucially, we must see a full exemption for all UK steel exports to the US – without that guarantee some of our leading steel businesses could be left behind, with a threat to jobs and livelihoods.”Gareth Stace, Director-General, UK Steel said the sector should also benefit “imminently… from a tariff rate cut similar to that which the automotive and aerospace industries will enjoy in seven days.” The government said the two leaders had pledged to “make progress towards 0% tariffs on core steel products”, but the Chinese ownership of British Steel could be a sticking point, as an executive order signed by Mr Trump suggests the US wants assurances that the metal originates in the UK.President Trump left the summit earlier than expectedAfter signing it, the US President was asked whether steel tariffs would be eliminated, to which he replied: “We’re gonna let you have that information in a little while.”In April, parliament gave the government emergency powers to take control of British Steel and continue production after Chinese owners Jingye proposed shutting the Scunthorpe site’s two blast furnaces and other key steelmaking operations.But its future is still uncertain.The uncertainty comes as a £500 million five-year deal has been struck between Network Rail and British Steel, which Ms Alexander said was a “vote of confidence”.Workers at the British Steel site in Scunthorpe will make rail tracks (Danny Lawson/PA)British Steel is to supply 337,000 tonnes of rail track, with a further 80-90,000 tonnes to be provided by other European manufacturers.The Network Rail contract will start on July 1 and is set to provide the company with 80 per cent of its rail needs.Jingye, which bought British Steel in 2020, launched a consultation in March which it said would affect between 2,000 and 2,700 jobs, despite months of negotiations and a £500 million co-investment offer from the Government.The Scunthorpe plant has been producing steel for Britain’s railways since 1865.The Network Rail agreement is the first major public procurement since the Government’s emergency legislation was passed.Network Rail’s group director for railway business services Clive Berrington said: “We are committed to buying British where it makes economic sense to do so and British Steel remain extremely competitive in the provision of rail and will remain our main supplier in the years ahead.”Charlotte Brumpton-Childs, national officer at the GMB union, said it was a “crucial first step in securing the future of our steel industry” and urged ministers to make sure British Steel has a “constant flow of orders” from other infrastructure projects.No 10 said it wanted to implement a further deal to remove tariffs on steel “as soon as possible”. More

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      in US Politics

      ‘I have never seen such open corruption’: Trump’s crypto deals and loosening of rules shock observers

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      Cryptocurrency multibillionaire Justin Sun could barely contain his glee.Last month, Sun publicly flaunted a $100,000 Donald Trump-branded watch that he was awarded at a private dinner at Trump’s Virginia golf club. Sun had earned the recognition for buying $20m of the crypto memecoin $Trump, ranking him first among 220 purchasers of the token who received dinner invitations.Trump’s much-hyped 22 May dinner and a White House tour the next day for 25 leading memecoin buyers were devised to spur sales of $Trump and wound up raking in about $148m, much of it courtesy of anonymous and foreign buyers, for Trump and his partners.Memecoins are crypto tokens that are often based on online jokes but have no inherent value. They often prove risky investments as their prices can fluctuate wildly. The $Trump memecoin was launched days before Trump’s presidential inauguration, spurring a surge of buyers and yielding tens of millions of dollars for Trump and some partners.Trump’s private events on 22 May to reward the top purchasers of $Trump have sparked strong criticism of the president from ethics watchdogs, ex-prosecutors and scholars for exploiting his office for personal gain in unprecedented ways. But they fit in a broader pattern of how Trump has exploited the power and lure of his office to enrich himself and some top allies via cryptocurrencies.“Self-enrichment is exactly what the founders feared most in a leader – that’s why they put two separate prohibitions on self-benefit into the constitution,” said former federal prosecutor Paul Rosenzweig. “Trump’s profiting from his presidential memecoin is a textbook example of what the framers wanted to avoid.”Scholars, too, offer a harsh analysis of Trump’s crypto dealings.“I have never seen such open corruption in any modern government anywhere,” said Steven Levitsky, a professor of government at Harvard University and an expert on authoritarian regimes who co-authored the book How Democracies Die.Such ethical and legal qualms don’t seem to have fazed Trump or Sun. The pair forged their ties well before the dinner as Sun invested $75m in another Trump crypto enterprise, World Liberty Financial (WLF), that Trump and his two older sons launched last fall and in which they boast a 60% stake.The Chinese-born Sun’s political and financial fortunes, as well as those of other crypto tycoons, have improved markedly since Trump took office and moved fast to loosen regulations of cryptocurrency ventures at the Securities and Exchange Commission (SEC), the justice department and other agencies to upend Joe Biden’s policies.As the SEC has eased regulations and paused or ended 12 cases involving cryptocurrency fraud, three Sun crypto companies that were charged with fraud by an SEC lawsuit in 2023 had their cases paused in February by the agency, which cited the “public interest” and reportedly has held settlement talks.Trump’s and Sun’s mutually beneficial crypto dealings symbolize how the US president has boosted his paper wealth by an estimated billions of dollars since he returned to office, and worked diligently to slash regulations fulfilling his pledges to make the US the “crypto capital of the planet” and end the “war on crypto”.After the 22 May dinner, Sun posted: “Thank you @POTUS for your unwavering support of our industry!”Although Trump’s crypto ventures are less than a year old, the State Democracy Defenders Fund watchdog group has estimated that as of mid-March they are worth about $2.9bn.In late March, Reuters revealed that WLF had raised more than $500m in recent months and that the Trump family receives about 75% of crypto token sales.Trump’s pursuit of crypto riches and deregulation represents a big shift from his comments to Fox News in 2021, when he said that bitcoin, a very popular crypto currency, “seems like a scam”.View image in fullscreenIn July 2019, Trump posted that “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade”, and noted that their value was “highly volatile and based on thin air”.Now, Trump’s new pro-crypto policies have benefited big campaign donors who lead crypto firms as well as Elon Musk, the world’s richest person, who spent almost $300m to help elect Trump, and who boasts sizable crypto investments in bitcoin through his electric car firm Tesla and his other ventures. Though Trump and Musk have since fallen out, the mogul’s crypto fortunes seem to have improved due to the president’s deregulatory agenda.Trump’s special envoy to the Middle East, Steve Witkoff, is a real estate billionaire who helped found WLF, in which he has a stake; Trump’s two oldest sons, Eric and Don Jr, and Witkoff’s son Zach have played key roles promoting WLF in the Middle East and other places.Trump’s use of his Oval Office perch to increase his wealth through his burgeoning crypto businesses while his administration rapidly eases regulations is unprecedented and smacks of corruption, say scholars, many congressional Democrats and some Republicans.“To me, Trump’s crypto dealings seem pretty explicit,” Julian Zelizer, a Princeton University professor who focuses on political history, told the Guardian. “Policy decisions are being made regarding parts of the financial industry that are being done not to benefit the nation, but his own financial interests … It’s hard to imagine what he’s doing benefits the nation.”Rosenzweig stressed that “not only do Trump’s extravagant crypto ventures benefit him personally as his administration slashes crypto regulations and takes pro-crypto steps at the SEC; they also benefit his tech bro backers who will take full advantage of the end of regulatory enforcement”.In Congress, leading Democrats, including Richard Blumenthal, a senator from Connecticut, and Jamie Raskin, a representative from Maryland, in May announced separate inquiries by key panels in which they are ranking members into Trump’s crypto dealings, and attacked Trump for using his office to enrich himself via his crypto operations.“With his pay-for-access dinner, Trump put presidential access and influence on the auction block,” Blumenthal told the Guardian. “The scope and scale of Trump’s corruption is staggering – I’ll continue to demand answers.”Last month, too, the Democratic senator Jeff Merkley, from Oregon, and the Senate minority leader, Chuck Schumer, introduced the “end crypto corruption” bill, which 22 other Democrats have endorsed.“Trump’s crypto schemes are the Mount Everest of corruption,” Merkley told the Guardian. “We must ban Trump-style crypto corruption so all elected federal officials – including the president, vice-president and members of Congress – cannot profit from shady crypto practices,” which his bill would curtail.Some former congressional Republicans are also incensed by Trump’s blatant use of his presidency to peddle $Trump. “Nobody should be allowed to use their public positions while in office to enrich themselves,” said ex-Republican congressman Charlie Dent of Pennsylvania, who once chaired the House ethics panel. “A member of Congress would not be permitted to engage in the kind of memecoin activities which the president has been doing.”Trump and his family have dismissed critics concerns about the 22 May events and his other crypto ventures.Before the 22 May dinner, Trump’s press secretary, Karoline Leavitt, told reporters that the president would attend his crypto gala in his “personal time” and it was not a White House event, but declined to release names of the many anonymous and foreign attendees.To allay criticism, the Trump Organization said in January that Trump’s business interests, including his assets and investments, would be placed in a trust his children would manage and that the president wouldn’t be involved in decision-making or daily operations. Trump’s family also hired a lawyer as an ethics adviser.But those commitments have been dwarfed by Trump’s public embrace of his crypto ventures and strong deregulatory agenda. In March, for instance, Trump hosted the first-ever “crypto summit” at the White House, which drew a couple dozen industry bigwigs who heard Trump promise to end Biden’s “war on crypto”.Trump’s crypto critics worry that the president’s strong push for less industry regulation may create big problems: the crypto industry has been battered by some major scandals including ones involving North Korean hackers and has been plagued by concerns about industry’s lack of transparency and risks.For instance, a report last December by leading research firm Chainalysis found that North Korean hackers had stolen $1.34bn of cryptocurrency in 2024, a record total and double what they stole the year before.The report concluded that US and foreign analysts believe the stolen funds were diverted in North Korea to “finance its weapons of mass destruction and ballistic missile programs”.Other crypto fraud schemes in the US have spurred loud alarms.In an annual report last September, the FBI revealed that fraud related to crypto businesses soared in 2023 with Americans suffering $5.6bn in losses, a 45% jump from the previous year.Sam Bankman-Fried, who founded the now bankrupt FTX crypto exchange, was sentenced to 25 years in prison in March 2024 by a New York judge for bilking customers out of $8bn.Nonetheless, a justice department memo in April announced it was closing a national cryptocurrency enforcement team that was established in 2022, which had brought major crypto cases against North Korean hackers and other crypto criminals.The memo stressed that the justice department was not a “digital assets regulator” and tried to tar the Biden administration for a “reckless strategy of regulation by prosecution”. The memo stated that a pro-crypto Trump executive order in January spurred the justice department’s policy shift.Ex-prosecutors and ethics watchdogs worry increasingly that crypto scandals and conflicts of interest will worsen as the Trump administration moves fast to ease crypto oversight at the justice department, the SEC and other agencies.Some of WLF’s high-profile crypto deals have involved overseas crypto firms which have had recent regulatory and legal problems in the US, fueling new concerns, watchdogs and ex-prosecutors say.View image in fullscreenOne lucrative deal raised eyebrows when WLF was tapped to play a central role in a $2bn investment by Abu Dhabi financial fund MGX that is backed by the United Arab Emirates in the world’s largest crypto exchange, Binance.As part of the deal, the Abu Dhabi fund bought $2bn of a WLF stablecoin, dubbed USD1, to invest in Binance. Stablecoins are a popular type of cryptocurrency that are often pegged to the dollar.The WLF deal comes after Binance in 2023 pleaded guilty to violating US money-laundering laws and other violations and the justice department fined it a whopping $4bn.Furthermore, Binance’s ex-CEO and founder, Changpeng Zhao, pleaded guilty in the US to violating the Bank Secrecy Act and failing to maintain an effective anti-money-laundering program.Zhao, who still owns 90% of Binance, served a four-month jail term last year.WLF’s $2bn deal was announced at an Abu Dhabi crypto conference on 1 May that drew Eric Trump two weeks before Trump’s visit to the UAE capital, sparking concerns of foreign influence and ethics issues.Increasing WLF’s ties further with Binance, the crypto exchange announced on 22 May that it had begun listing the stablecoin for trading purposes. Binance got some good news at the end of May, too, when the SEC announced the dismissal of a civil lawsuit it filed in 2023 against the exchange for misleading investors about surveillance controls and trading irregularities.Paul Pelletier, a former acting chief of the justice department’s fraud section, noted that SEC moves back in February “to emasculate its crypto enforcement efforts sent crypto fraudsters a welcome mat of impunity”.He added: “The recent dismissal of the SEC’s lawsuit against Binance for mishandling customer funds, days after it began listing the Trump family’s cryptocurrency on its exchange, seemed to be the natural consequence of such enforcement laxity. Victims be damned.”Other agency deregulatory moves that favor crypto interests can boost Trump’s own enterprises and his allies, but pose potential risks for ordinary investors, say legal scholars.Columbia law professor Richard Briffault noted that as part of the Trump administration’s wide-ranging and risky crypto deregulatory agenda which can benefit Trump’s own crypto ventures, the Department of Labor in late May nixed a Biden-era “extreme care” warning about 401K plans investing in crypto.“[The labor department] has rescinded the red light from the Biden years for 401K retirement plans, which is another sign of the Trump administration’s embrace of crypto,” Briffault said.Briffault, an expert on government ethics, has told the Guardian more broadly that Trump’s crypto ventures and his 22 May memecoin bash are “unprecedented”.“I don’t think there’s been anything like this in American history,” he said. “Trump is marketing access to himself as a way to profit his memecoin. People are paying to meet Trump and he’s the regulator-in-chief. It’s doubly corrupt.”In late May, in a new crypto business twist, the Trump Media and Technology Group, the parent of Truth Social, said it had sealed a deal to raise $2.5bn to be used to buy bitcoin, creating a reserve of the cryptocurrency.Meanwhile, Trump’s stablecoin fortunes and those of many industry allies could get boosts soon from a Senate stablecoin bill, dubbed the “genius act”, that’s poised to pass the Senate on Tuesday but which critics have said loosens regulatory controls in dangerous ways unless amended with consumer protections and other safeguards.Senators Merkley and Elizabeth Warren, of Massachusetts, led unsuccessful efforts to amend the bill to thwart potential criminal abuses, protect consumers and prevent Trump from using his office to profit his crypto businesses.“The ‘genius act’ fails to prevent sanctions evasion and other illicit activity and lets big tech giants like Elon Musk’s X issue their own private money – all without the guardrails needed to keep Americans safe from scams, junk fees or another financial crash,” Warren told the Guardian.“Donald Trump has turned the presidency into a crypto cash machine,” Warren said. The Genius act, Warren stressed, should have “prohibited the President AND his family from profiting from any stablecoin project.”More broadly, Kedric Payne, the general counsel and ethics director at the Campaign Legal Center, said: “President Trump’s financial stakes in the crypto industry at the same time that he is determining how the government will regulate the industry is unprecedented in modern history. This is precisely the type of conflict of interest that ethics laws and norms are designed to stop.” More