Bitcoin First: Musk’s Political Party, Crypto Push Shakes Up Washington

Elon Musk has stirred up Washington by announcing that his yet‑to‑be‑registered “The American Party” will back Bitcoin. His move comes as he takes aim at what he calls wasteful government spending and vows to shake up the status quo.

Musk’s short statement—that “fiat is hopeless”—has already sent ripples through both political and crypto circles.

Musk Launches Political Bid

According to Musk’s recent tweet, his new centrist party will start by fielding candidates for the US Senate and House. He’s on record saying he won’t jump straight to a White House run.

Instead, he plans to build out support at the state level first. This measured approach reflects the massive effort needed to get on ballots: most states demand tens of thousands of signatures for each race. Musk will need a ground game rivaling established parties.

Fiat is hopeless, so yes

— Elon Musk (@elonmusk) July 7, 2025

Bitcoin Figures Front And Center

Based on reports, Musk isn’t just talking the talk. Two of his companies, Tesla and SpaceX, hold a combined 19,794 BTC—11,509 at Tesla and 8,285 at SpaceX.

That stash is worth about $2.1 billion at current prices. He’s also said he personally holds Bitcoin, Ethereum and Dogecoin. By tying his political project to Bitcoin, Musk is likely appealing to the same audience that powered US President Donald Trump’s 2024 campaign on crypto buzz.

The price of Bitcoin has barely budged on the news. The coin sits at $108,772, showing no clear spike or dip. Traders seem to view this more as another Musk headline than a sign of concrete policy change.

Volatility has hit 30 % swings in recent months, so any real plan to take campaign funds or taxes in Bitcoin would face tough questions about price swings.

Based on public filings, no “Department of Government Efficiency” exists—Musk’s DOGE jibe is just a nod to Dogecoin fans. Actual agencies like the IRS and SEC would need to weigh in if a political party tried to use Bitcoin for donations or payments.

US campaign finance laws cap donations and demand strict reporting. Converting crypto to cash quickly, especially during sell‑offs, could trigger accounting nightmares.

Getting on ballots is another mountain. Each state has unique rules on deadlines, forms and signature thresholds. Some require petitions submitted more than a year before an election.

Musk will have to hire or mobilize coordinate teams to track hundreds of deadlines. Failure in just one key state could keep him off that state’s ballot entirely.

The real test will come if Musk files party paperwork and publishes a plan for handling crypto volatility and compliance.

Featured image from Pexels, chart from TradingView