My heart sank last week when I read that JPMorgan Chase was looking into lending against clients’ cryptocurrency holdings, even though we all knew the day was coming when crypto would make its way into the real economy.

Bitcoin, one of the digital assets banks may lend against, has been nearly four times as volatile as major indices since 2020. It has also had ties to terror funding, and I have yet to read anything that made me think it is more than a tool for speculators and criminals. But that hardly matters when the largest political donors are behind it.

Crypto political action committees have, over the last several years, spent tens of millions of dollars donating to not only Republican politicians but many Democrats too. This effort culminated a couple of weeks ago in the passage of the Genius Act. Legislation covering other crypto assets is expected later this year. I predict all this will not only cause the next financial crisis, but fuel even more political populism and unrest in the US.