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Newsletter: As the US government lays a very favorable groundwork for the crypto industry, Trump positions himself for maximum personal profits. Meanwhile crypto companies write their own rules, and an adviser mulls swapping US gold reserves for bitcoin.

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#crypto #cryptocurrency #USpol #USpolitics


Issue 80 – Aimed at benefiting the digital assets industry

Molly White (Citation Needed)
#Crypto #Cryptocurrency #uspol #uspolitics

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Molly White
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Molly White
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Lead crypto adviser Bo Hines is already hard at work getting “a lot of high IQ people” to work on “countless ideas” for how the US can add more bitcoin to its reserve while remaining technically “budget neutral”.

#crypto #cryptocurrency #USpol #USpolitics

Any sense of relief that may have followed the March executive order’s stipulation that a “strategic bitcoin reserve” would not incur costs to taxpayers has melted away with news that White House are already looking for creative ways to acquire bitcoin in a “budget neutral” way. Bo Hines, the baffling choice of executive director for the White House’s “crypto advisory council” [I72, 74], sat for an interview in which he commented that “there’s a lot of high IQ people working on ... countless ideas” to ~~pump bitcoin prices to profit bitcoin holders~~ acquire additional bitcoins for the reserve, including “realizing the gains” on US gold reserves. Asked by the interviewer if he might consider selling some of the country’s gold reserves to swap them for bitcoin, Hines answered, “if it's budget neutral and doesn't cost a taxpayer a dime”.5 In the same interview, he commented that bitcoin “is different” from the other crypto assets like Ether, Ripple’s XRP, Solana, or Cardano’s ADA. “It’s unique. It’s a commodity, not a security.” Evidently, Hines has not been briefed that they’re not supposed to admit anymore that these other crypto assets are securities.5
#Crypto #Cryptocurrency #uspol #uspolitics

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Molly White
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Molly White
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Trump is seeking to expand his personal crypto footprint, and his Trump Media company is looking to partner with Crypto​.com to launch ETPs. The Singapore-headquartered company is an odd choice of partner for a plan with a “Made in America focus”.

#crypto #cryptocurrency #USpol #USpolitics

Trump business interests As the Trump administration continues the process of establishing a regulatory environment maximally beneficial to the cryptocurrency industry, Trump is doing the only thing you might expect of him: increasing his business interests in the crypto sector so that he too can personally profit. His Trump Media organization, which is the business entity behind the Truth Social platform, has announced a partnership with the Singapore-based Crypto.com to launch various exchange-traded products of the both crypto and non-crypto varieties. The overseas Crypto.com is a bit of an odd choice in partner, given the press release’s emphasis that the project will have a “Made in America focus”.6
#Crypto #Cryptocurrency #uspol #uspolitics

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Molly White
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In order to close the deal, Crypto​.com had to resurrect $7 billion in CRO tokens that were burned in 2021. This was decided by a “vote” in which Crypto​.com validators controlled more than 70% of the voting power — nearly all other CRO holders opposed.

#crypto #cryptocurrency #USpol #USpolitics

Though the details were scarce, the press release suggested the crypto ETFs would “include a unique ETF basket of cryptocurrencies incorporating Bitcoin, Cronos, and other crypto assets.” (Cronos is the token issued by Crypto.com subsidiary Cronos Labs.) All of this will happen via the “Truth.Fi” brand, a business venture announced by Trump Media in February [I76]. There has been some controversy over this deal in the crypto world, centering around a decision by Crypto.com and Cronos to fund the deal by “reissuing” tokens notionally worth $7 billion that had been burned (ostensibly permanently destroyed) in 2021.7 The proposal was unpopular among many Cronos holders, and comments on the proposal were universally negative. “Veto. Reversing a burn is a violation of trust and integrity of the ecosystem,” commented one community member. “This is a disaster on so many levels—I don’t even know where to begin. This should be a firm NO, with a veto. It feels more like a rug pull from [Crypto.com], where they’re essentially seeking exposure to the US reserve using consumers' money,” argued another.8 Most Cronos validators voted no on the proposal. However, at the last minute, a sudden surge in yes votes came in from validators operated by Crypto.com, which controls 70–80% of the voting power in Cronos, forcing through the proposal.9
Voting breakdown for the reissue decision, showing five major “yes” voters are Crypto.com-run validators
#Crypto #Cryptocurrency #uspol #uspolitics

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Molly White
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Trump Media execs have filed paperwork for a SPAC to target the crypto industry, reasoning that it’s strategic because of Trump’s “unprecedented steps to integrate digital assets into the national financial strategy” that were “aimed at benefiting the digital assets industry”.

#crypto #cryptocurrency #USpol #USpolitics

Three Trump Media executives have also filed paperwork for a new special purpose acquisition company (SPAC), which they aim to focus on “the cryptocurrency and blockchain, data security and dual-use technologies markets”. Explaining why the crypto industry was among their targets, they wrote: “The current administration has taken unprecedented steps to integrate digital assets into the national financial strategy.” They also noted the establishment of a strategic bitcoin reserve, and were even blunter than the Trump administration about the reserve’s purpose, explaining that it was “aimed at benefiting the digital assets industry”. They’re looking to raise $179 million.10
#Crypto #Cryptocurrency #uspol #uspolitics

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Molly White
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And Trump’s WLFI is looking to launch a stablecoin. Though Trump has described central bank-controlled stablecoins as “a dangerous threat to freedom”, he seems to have no qualms with a president-controlled token.

#crypto #cryptocurrency #USpol #USpolitics

World Liberty Financial, the crypto project from which Trump earns 75% of the revenue, has announced plans to issue a stablecoin that they plan to call USD1.11 Trump and other Republicans have been vehemently opposed to any talk of establishing a central bank digital currency, or CBDC,a and Trump’s January 23 executive order on crypto established a prohibition on the creation of such a thing. Trump has described CBDCs as “a dangerous threat to freedom”, adding that “such a currency would give a federal government — our federal government — absolute control over your money. They could take your money and you wouldn’t even know it’s gone.”12 These concerns apparently don’t apply when it is the president himself who has absolute control over your money. Although the project’s WLFI token ostensibly grants holders “the right to vote and take an active role in the governance of the World Liberty Financial protocol”, including “the overall WLF Protocol direction and plans”, no governance vote was held regarding this decision.13
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Molly White
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The SEC has requested input to write essentially entirely new rules for the crypto industry, and the industry has been only too happy to oblige.

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Meanwhile, crypto companies are busy writing their own rules for the game now that they’ve successfully lobbied for the previous ruleset to be put through the shredder. SEC Commissioner and “Crypto Task Force” lead Hester Peirce invited input in a request containing 48 questions,16 though some of those questions seem asked merely so they can say they asked them. For example, the questions about the status of various crypto assets as securities have already been undercut by the SEC’s moves to drop crypto-related enforcement cases, given that it’s not likely that the SEC is going to turn around and say “actually, after we thought about it, we’ve determined these assets are probably securities after all” and reopen the cases.b Andreessen Horowitz has submitted a 49-page response that only gets through the first six questions (with a note that will shortly produce additional letters responding to the remaining 42).17 Coinbase submitted 41 pages of their own.18 Other submission have come from Robinhood, Cumberland DRW, and Ripple, as well as a number of lawyers (including crypto skeptic Lee Reiners).19
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Molly White
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Molly White
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Other input has come from the likes of Lee Reiners, who writes “I must admit that whole endeavor seems performative and intended to justify a predetermined outcome.”

#crypto #cryptocurrency #USpol #USpolitics

I. Introduction I appreciate the opportunity to participate in the SEC’s first Crypto Task Force roundtable and offer comments on several of Commissioner Peirce’s 48 questions included in her February 21, 2025, statement titled, “There Must Be Some Way Out of Here.”2 As excited as I am to participate and comment, I must admit that whole endeavor seems performative and intended to justify a predetermined outcome. While the stated purpose of the Task Force is to develop a “comprehensive and clear regulatory framework for crypto assets,”3 the Commission has proceeded to front-run the Task Force by either dismissing, or pausing, nearly every outstanding crypto-related case and investigation, often with prejudice. In several court submissions stipulating that ongoing crypto litigation will be dismissed, as well as in press releases announcing the dismissal, the Commission justifies the action by referencing the work of the Crypto Task Force in “helping the Commission develop the regulatory framework for crypto assets.”4 Has the Task Force already concluded that every named crypto asset in outstanding enforcement actions is not a security? These actions open the Commission up to allegations of politicization – the very same allegations leveled at the Commission by the crypto industry just months earlier. The crypto industry raised over $238 million this past election cycle in a successful effort to support industry-friendly candidates in Congressional races.5
And just three days before his inauguration, President Trump and the First Lady issued their own meme coins, netting the Trump Organization significant profits.6 Is the public expected to think it is just a coincidence then when the Commission’s Division of Corporate Finance issues a staff statement expressing their view that meme coins “do not involve the offer and sale of securities under the federal securities laws”?7 Perhaps more concerning, the Commission has paused cases involving credible allegations of fraud and misconduct. In March 2023, the Commission charged Justin Sun and three of his wholly-owned companies for the unregistered offer and sale of crypto asset securities (TRX and BTT) and for “fraudulently manipulating the secondary market for TRX through extensive wash trading.”8 And in June 2023, the Commission filed 13 charges against Binance entities and founder Changpeng Zhao. In the press release, the SEC noted that “Zhao and Binance exercise control of the platforms’ customers’ assets, permitting them to commingle customer assets or divert customer assets as they please”; that Binance “misled investors about
#Crypto #Cryptocurrency #uspol #uspolitics

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Molly White
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Molly White
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The crypto super PACs have spent a combined $1.5 million on two special elections in deeply red districts in Florida, where Republicans have been panicking about being outspent by Democrats. Musk’s America PAC also dropped some cash to help out Trump’s picks.

#crypto #cryptocurrency #USpol #USpolitics

While crypto-focused super PACs have mostly been hard at work preparing to launch a 2024-esque funding onslaught on the 2026 midterms, they’re not twiddling their thumbs until then. After panic at the White House and among Republican Congresspeople that their favored candidate was being out-raised,32 the Republican-focused arm of the crypto lobby, Defend American Jobs, dumped $1.2 million in ad spending to support Randy Fine in his Florida special election against Democratic opponent Joshua Weil.33 Musk’s America PAC followed shortly after to fund a text message blast. A television ad funded by the Defend American Jobs PAC states: Florida voters: President Donald J. Trump has an urgent message. President Trump needs Randy Fine in Congress. Fine and Trump will drive prices down and end the border crisis once and for all, and you can count on Randy Fine to tackle our high insurance rates head on. Florida approved, Trump endorsed. Stand with Trump. Vote Randy Fine for Congress.
As usual for ads from these super PACs, cryptocurrency is not mentioned. The two candidates are battling to secure the seat vacated by Michael Waltz, Trump’s new National Security Adviser who has wasted no time in making a name for himself after adding the editor-in-chief of the Atlantic to a top secret war planning group chat. Oopsie. Fine has been a member of Florida’s state legislature since 2016, and prior to that he worked as an executive and then consultant for the casino industry. Defend American Jobs dropped another $345,000 on ads supporting Republican Jimmy Patronis in his campaign against Democrat Gay Valimont.33 The two are competing in the special election to fill the seat vacated by its also illustrious former occupant, Matt Gaetz, who resigned in confidence that he would be confirmed as Trump’s pick for attorney general before withdrawing his nomination after it became clear that that pesky child sex abuse scandal might prove challenging to overcome. Patronis is a career politician who currently serves as the Chief Financial Officer for the state of Florida. In October, he advocated that Florida state pensions look into investing in crypto.34 While both districts are heavily red, and both Republican candidates are strongly favored to win, the nervousness around these races reveals Republican fear that Americans concerned about the horrors of the past few months might channel it into elections.
#Crypto #Cryptocurrency #uspol #uspolitics

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Molly White
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Molly White
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That and more in this week’s issue of Citation Needed, a completely independent and subscriber-funded publication. To support my work, please consider subscribing!

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Citation Needed

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Tim
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Tim
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lowcostloans.ca
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For the disabled, indigent, homeless, working poor, veterans. Trafficked. People who need help.
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phi1997
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phi1997
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That's because Trump is *his* dangerous threat to freedom, at least in his eyes
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Tom Bortels
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Tom Bortels
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I hope nobody (other than the coin holders, I guess) was surprised about this outcome.

A con is a con.

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ruurd@mastodon.social
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ruurd@mastodon.social
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begins to show all the hallmarks of a Trump scam. Same old same old. He must think he is Kind Midas. Pity that instead of gold everything he touches turns into failure.
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vruz
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vruz
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Interesting. Isn't it there where one of Milei's crypto scam partners lives? (not the $MELANIA Haydens, but another guy by the surname Peh)
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Sunflower Björnskalle 🌻
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Sunflower Björnskalle 🌻
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Clearly it's Joe Rogan kn the shadows this time lulling the puppet strings instead of Steve Bannonm 😂
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Anne Ominous
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Anne Ominous
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feel like a real oppurtunity was missed by not calling them IQ go up people
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bouriquet
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bouriquet
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There is no such thing as a bitcoin reserve. It is not tangible. Probably less than stocks.
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Toni Aittoniemi
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Toni Aittoniemi
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Perfect for evading sanctions with Russia!
#NAFO
#nafo
This entry was edited (1 week ago)
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Knut Branson
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Knut Branson
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i haven't seen media covering Trump's rank corruption as much as one would expect.
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Lucas Werkmeister
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Lucas Werkmeister
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two minor issues: dark mode, typo

Sensitive content

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George B
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George B
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> this is one of those lawsuits that tends to appear in the crypto world where I hope everybody loses

A very relatable sentiment

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