Elon Musk has stirred up Washington by announcing that his yet to registered “The American Party” Coming back Bitcoin. His movement comes when he is aiming for what he calls wasteful government expenses and promises to shake up the status quo.
Musk’s short statement – that “Fiat is hopeless” – has already sent ripples through both political and cryptocets.
Musk launches political bid
According to Musk’s latest tweet, his New Centerist Party Will start by fielding candidates for the US Senate and the house. He is on the record and says he does not jump directly to a white house.
Instead, he plans to expand support at the state level first. This measured approach reflects the enormous effort needed to come up with polls: most states require tens of thousands of signatures for each race. Musk will need a ground game that competes with established parties.
Fiat is hopeless, so yes
– Elon Musk (@elon musk) July 7, 2025
Bitcoin figures front and mine
Based on reportsMusk not only talks the conversation. Two of his companies, Tesla and SpaceX, have a combined 19 794 BTC – 11.509 on Tesla and 8 285 on SpaceX.
This stash is worth approximately $ 2.1 billion at current prices. He has also said that he personally has Bitcoin, Ethereum and Dogecoin. By tying its political project to Bitcoin, Musk is probably appealing to the same audience that ran US President Donald Trump’s 2024 campaign at Crypto Buzz.
Elon Musk is forming his own political party. Image: Bloomberg/Getty Images
The price of Bitcoin has barely taken on the news. The coin is sitting at 108 772 $, Shows no clear nail or dip. Merchants seem to see this more as a other musk than a sign of concrete policy change.
Volatility has hit 30 % swings in recent months, so all real plans to take campaign funds or taxes in Bitcoin would meet tough issues of price swings.
Bitcoin is expected to play a major role in Musk's political push. Image: FXEmpire
Regulatory and logistical obstacles
Based on public applications, there is no “Department of Government Efficiency” – Musk’s Dogge Jibe is just a nick to Dogecoin fans. Actual agencies such as the IRS and SEC would have to weigh if a political party tried to use bitcoin for donations or payments.
The US campaign fines are donations and require strict reporting. Converting crypto to cash quickly, especially during sales, can trigger accounting nightmares.
Getting on polls is another mountain. Each state has unique rules for deadlines, forms and signature thresholds. Some require petitions submitted more than a year before an election.
Musk must hire or mobilize coordinate teams to track hundreds of deadlines. Failure in just an important state can keep him away from that state vote completely.
The real test will come if Musk archives party paper and publishes a plan for handling cryptovolatility and compliance.
Image from Pexels, Chart from TradingView
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