Elon Musk’s beef with U.S. President Donald Trump has taken a newer, more radical turn after the billionaire Tesla founder and CEO announced a new political party on Sunday, called the “America Party” – an alternative to the Republican-Democratic duopoly that has dominated US politics.
In an X post, Musk declared that the America Party, which aims to represent the “80 percent in the middle” of the political spectrum, will position digital assets at the center of its platform. When asked by a fellow X user whether the organization would endorse Bitcoin, he responded in agreement, calling fiat currency “hopeless”.
Elon Musk Announces Pro-Bitcoin America Party to Save the US from a Debt Crisis
This development comes after Trump signed the “Big, Beautiful Bill” into law on July 4, which enacted $3.3 trillion in federal spending, a move that Musk heavily opposed, citing it as “debt slavery”. He then conducted a poll on X, asking his followers their thoughts on the initiative to kickstart a third party that would end America’s non-democratic, “one-party system”, receiving overwhelming support.
Reports indicated that the political outfit has already been registered with the Federal Election Commission (FEC) as America Party (AMEP), with the filing mentioning the candidate’s name as “Elon Reeve Musk”. Tesla CFO and one of Musk’s close associates, Vaibhav Taneja, is listed as its treasurer and custodian of records.
However, it was later confirmed that no such record existed on the FEC website. Musk also publicly denied any connection, claiming the filing to be false. Multiple political factions referencing the America Party, DOGE, or X were filed with the Commission after his announcement.
He had promised to create a third party if Trump’s massive tax and spending bill passed Congress, which it did on July 2. The world’s richest man endorsed Trump during the 2024 presidential election, donating $239 million to his campaign through a political action committee called America PAC on the promise of eliminating wasteful government spending, balancing the federal budget, and reducing the national debt, which stands at $37 trillion.
After Trump was inaugurated as President in January, Musk was named as a special advisor and headed the Department of Government Efficiency (D.O.G.E.), tasked with modernizing information technology, maximizing government productivity, and cutting excess regulations and spending within the federal government, until late May. The organization created under the President’s executive order was also intended to bring accountability and transparency to the government, to ensure taxpayer money was spent wisely and effectively.
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The public spat with Trump began just before Musk completed his special government employee role at the White House and D.O.G.E., which lasted 120 days. At the time, he claimed that the President-endorsed spending bill would undermine his organization’s work to cut wasteful government spending, calling it a “disgusting abomination”. It is estimated that the “Big, Beautiful Bill” would add $3.3 trillion to the federal debt over the next decade and raise the debt ceiling by $5 trillion.
Musk even threatened he would use his platform and influence to unseat any lawmaker who supported the legislation during next year’s elections.
The President had strong words for Musk hours after declaring he had formed the ‘America Party’. In a post made on his Truth Social platform on Sunday, Trump wrote that he is “saddened” to see his former cost-cutting czar go completely off the rails and essentially become a “train wreck” over the past five weeks. He noted that a third political party has never succeeded in the US, as the system is not designed to support it.
Trump supporters are worried that the Musk-led America Party could win over potential Republican voters in the 2026 midterm elections, splitting the party’s base and risking the
conservatives’ thin majority in the US Congress or allowing Democrats to win key seats. While third parties other than Democratic and Republican have seen considerable success in electing state and local officials, they haven’t won a presidential election since 1856, when the Republican Party became a major political organization in the country.
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Unlike the more than 50 other third parties in the country, such as the Libertarian Party, Green Party, and the Constitution Party, the America Party has the financial capacity to influence future elections. The US has a first-past-the-post election system, where the candidate with the most first-preference votes is declared the winner even if they don’t get a majority of the votes.
Crypto Community and Pro-Crypto Lawmakers Back America Party
Right-wing influencers claim that high-profile Trump supporters and pro-crypto lawmakers like Representatives Marjorie Taylor Greene and Thomas Massie are already leaning toward the America Party. The organization is focused on winning 8 to 10 House seats and 2 or 3 Senate seats that would seemingly be enough to halt Republican or Democratic agendas, according to Musk.
The crypto community was quick to offer its support for Musk’s political faction. Popular Dogecoin (DOGE) developer, known as DogeDesigner on X, was among the first people to announce the news and endorse the movement.
Meanwhile, pro-crypto attorney John Deaton also supported the initiative. In a reply to Musk’s X post, the former Republican candidate who challenged Senator Elizabeth Warren in an unsuccessful 2024 campaign shared a short clip of his debate with the anti-crypto lawmaker in which he lambasted the two-party system, saying it is “broken” and he intends to disrupt it.
James Toledano, COO of Unity Wallet, said that the BBB’s massive fiscal expansion could weaken the dollar and “stoke” inflation, potentially boosting Bitcoin’s “digital gold” appeal. Crypto investor Lark Davis called the bill a “red flag” for fiscal sustainability and a green flag for risk assets, especially crypto. He noted that BTC has historically delivered double-digit gains whenever the US government has passed spending bills, predicting that the flagship crypto’s price could surge to $150,000 if the pattern repeats this cycle.
At the time of writing, Bitcoin (BTC) is trading at $109,157, up 0.97% in the last 24 hours.
