Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
Not long after the deal was announced, the Trump administration negotiated a highly favorable AI chips deal benefitting MGX [I93], and shortly afterwards announced that MGX will take a 15% stake in the TikTok deal brokered by the Trump administration [I94]. For Binance, the SEC dismissed with prejudice a fraud and unregistered securities case looming over the company [I85] — one in which Binance’s Chief Compliance Officer was quoted admitting that “we are operating as a fking unlicensed securities exchange in the USA bro”. Now, Zhao has earned his pardon. And discussions to prematurely remove independent monitors installed to oversee Binance’s compliance programs seem to remain ongoing [I93]. Binance has also reportedly discussed other, more direct business deals with the Trumps, including the possibility that the family would take a stake in Binance’s US division [I79]. Such a deal has not yet emerged, though the pardon may be an attempt to mitigate reputational concerns that might otherwise complicate any future arrangement. And the pardon would certainly smooth the pathway for Binance to expand its business in the US — potentially with CZ back at the helm. (CZ was required to step down as CEO as part of his plea agreement, which also permanently banned CZ from regaining a leadership role at the company, though he has maintained substantial influence over the company and owns a majority of its shares.)
Not long after the deal was announced, the Trump administration negotiated a highly favorable AI chips deal benefitting MGX [I93], and shortly afterwards announced that MGX will take a 15% stake in the TikTok deal brokered by the Trump administration [I94]. For Binance, the SEC dismissed with prejudice a fraud and unregistered securities case looming over the company [I85] — one in which Binance’s Chief Compliance Officer was quoted admitting that “we are operating as a fking unlicensed securities exchange in the USA bro”. Now, Zhao has earned his pardon. And discussions to prematurely remove independent monitors installed to oversee Binance’s compliance programs seem to remain ongoing [I93]. Binance has also reportedly discussed other, more direct business deals with the Trumps, including the possibility that the family would take a stake in Binance’s US division [I79]. Such a deal has not yet emerged, though the pardon may be an attempt to mitigate reputational concerns that might otherwise complicate any future arrangement. And the pardon would certainly smooth the pathway for Binance to expand its business in the US — potentially with CZ back at the helm. (CZ was required to step down as CEO as part of his plea agreement, which also permanently banned CZ from regaining a leadership role at the company, though he has maintained substantial influence over the company and owns a majority of its shares.)
Not long after the deal was announced, the Trump administration negotiated a highly favorable AI chips deal benefitting MGX [I93], and shortly afterwards announced that MGX will take a 15% stake in the TikTok deal brokered by the Trump administration [I94]. For Binance, the SEC dismissed with prejudice a fraud and unregistered securities case looming over the company [I85] — one in which Binance’s Chief Compliance Officer was quoted admitting that “we are operating as a fking unlicensed securities exchange in the USA bro”. Now, Zhao has earned his pardon. And discussions to prematurely remove independent monitors installed to oversee Binance’s compliance programs seem to remain ongoing [I93]. Binance has also reportedly discussed other, more direct business deals with the Trumps, including the possibility that the family would take a stake in Binance’s US division [I79]. Such a deal has not yet emerged, though the pardon may be an attempt to mitigate reputational concerns that might otherwise complicate any future arrangement. And the pardon would certainly smooth the pathway for Binance to expand its business in the US — potentially with CZ back at the helm. (CZ was required to step down as CEO as part of his plea agreement, which also permanently banned CZ from regaining a leadership role at the company, though he has maintained substantial influence over the company and owns a majority of its shares.)
But while Trump acknowledged he was being urged behind the scenes to pardon the crypto billionaire, he did not address his own financial gains linked to Binance. Taken together, his personal profits and the subsequent executive leniency toward the company and its figureheads create the clear appearance of a quid pro quo — and only one of many swirling around crypto interests during Trump’s second administration. In May, Binance accepted a $2 billion investment from the Emirati investment fund MGX, denominated in the Trump family’s USD1 stablecoin. The stablecoin had only just been announced, and it would have been odd for either entity to wish to use a brand new, untested stablecoin for such a high-value transaction — that is, unless they both had substantial interests in buying favor from the president. With that $2 billion to invest in money market funds, World Liberty has likely already made around $35 million in interest from the Binance/MGX deal alone,a and they stand to make hundreds of millions if the stablecoins are not redeemed over Trump’s term. And Binance has promoted the USD1 stablecoin to customers on its platform, driving more business to the Trumps (though the Binance deal still comprises around 70% of the USD1 issued to date).
But while Trump acknowledged he was being urged behind the scenes to pardon the crypto billionaire, he did not address his own financial gains linked to Binance. Taken together, his personal profits and the subsequent executive leniency toward the company and its figureheads create the clear appearance of a quid pro quo — and only one of many swirling around crypto interests during Trump’s second administration. In May, Binance accepted a $2 billion investment from the Emirati investment fund MGX, denominated in the Trump family’s USD1 stablecoin. The stablecoin had only just been announced, and it would have been odd for either entity to wish to use a brand new, untested stablecoin for such a high-value transaction — that is, unless they both had substantial interests in buying favor from the president. With that $2 billion to invest in money market funds, World Liberty has likely already made around $35 million in interest from the Binance/MGX deal alone,a and they stand to make hundreds of millions if the stablecoins are not redeemed over Trump’s term. And Binance has promoted the USD1 stablecoin to customers on its platform, driving more business to the Trumps (though the Binance deal still comprises around 70% of the USD1 issued to date).
But while Trump acknowledged he was being urged behind the scenes to pardon the crypto billionaire, he did not address his own financial gains linked to Binance. Taken together, his personal profits and the subsequent executive leniency toward the company and its figureheads create the clear appearance of a quid pro quo — and only one of many swirling around crypto interests during Trump’s second administration. In May, Binance accepted a $2 billion investment from the Emirati investment fund MGX, denominated in the Trump family’s USD1 stablecoin. The stablecoin had only just been announced, and it would have been odd for either entity to wish to use a brand new, untested stablecoin for such a high-value transaction — that is, unless they both had substantial interests in buying favor from the president. With that $2 billion to invest in money market funds, World Liberty has likely already made around $35 million in interest from the Binance/MGX deal alone,a and they stand to make hundreds of millions if the stablecoins are not redeemed over Trump’s term. And Binance has promoted the USD1 stablecoin to customers on its platform, driving more business to the Trumps (though the Binance deal still comprises around 70% of the USD1 issued to date).
Nevertheless, the White House press secretary has positioned the pardon as relief from an unfair prosecution, asserting that “The Biden administration’s war on crypto is over” and describing Zhao’s conviction as evidence of the previous administration’s “desire to punish the cryptocurrency industry”. While the crypto industry and the Trump administration have tried to portray any regulatory oversight or enforcement in the crypto space as an unjust “war on crypto”, I think the Trump administration has overplayed its hand by describing this prosecution as such. Most outsiders can distinguish targeted enforcement against clear misconduct from hostility toward innovation, and excusing justifiable prosecutions as mere political persecution only serves to highlight how frequently the Trump administration and the crypto industry use this tactic to try to dodge justice, accountability, and reasonable regulatory oversight. In a statement to the press, Trump acknowledged that Zhao “had a lot of support... and so I gave him a pardon at the request of a lot of good people.” Some of these “good people” were lobbyists hired by Zhao and/or Binance, including BakerHostetler lawyer Teresa Goody Guillén. While she lobbied the president for Zhao’s pardon, Goody Guillén simultaneously represented Trump’s World Liberty Financial cryptocurrency project; she wrote the brief May retort from the company in response to Senator Blumenthal’s questions about Trump’s conflicts of interest [I83, 84, 90].
Nevertheless, the White House press secretary has positioned the pardon as relief from an unfair prosecution, asserting that “The Biden administration’s war on crypto is over” and describing Zhao’s conviction as evidence of the previous administration’s “desire to punish the cryptocurrency industry”. While the crypto industry and the Trump administration have tried to portray any regulatory oversight or enforcement in the crypto space as an unjust “war on crypto”, I think the Trump administration has overplayed its hand by describing this prosecution as such. Most outsiders can distinguish targeted enforcement against clear misconduct from hostility toward innovation, and excusing justifiable prosecutions as mere political persecution only serves to highlight how frequently the Trump administration and the crypto industry use this tactic to try to dodge justice, accountability, and reasonable regulatory oversight. In a statement to the press, Trump acknowledged that Zhao “had a lot of support... and so I gave him a pardon at the request of a lot of good people.” Some of these “good people” were lobbyists hired by Zhao and/or Binance, including BakerHostetler lawyer Teresa Goody Guillén. While she lobbied the president for Zhao’s pardon, Goody Guillén simultaneously represented Trump’s World Liberty Financial cryptocurrency project; she wrote the brief May retort from the company in response to Senator Blumenthal’s questions about Trump’s conflicts of interest [I83, 84, 90].
Nevertheless, the White House press secretary has positioned the pardon as relief from an unfair prosecution, asserting that “The Biden administration’s war on crypto is over” and describing Zhao’s conviction as evidence of the previous administration’s “desire to punish the cryptocurrency industry”. While the crypto industry and the Trump administration have tried to portray any regulatory oversight or enforcement in the crypto space as an unjust “war on crypto”, I think the Trump administration has overplayed its hand by describing this prosecution as such. Most outsiders can distinguish targeted enforcement against clear misconduct from hostility toward innovation, and excusing justifiable prosecutions as mere political persecution only serves to highlight how frequently the Trump administration and the crypto industry use this tactic to try to dodge justice, accountability, and reasonable regulatory oversight. In a statement to the press, Trump acknowledged that Zhao “had a lot of support... and so I gave him a pardon at the request of a lot of good people.” Some of these “good people” were lobbyists hired by Zhao and/or Binance, including BakerHostetler lawyer Teresa Goody Guillén. While she lobbied the president for Zhao’s pardon, Goody Guillén simultaneously represented Trump’s World Liberty Financial cryptocurrency project; she wrote the brief May retort from the company in response to Senator Blumenthal’s questions about Trump’s conflicts of interest [I83, 84, 90].
After months of lobbying, President Trump has pardoned Binance founder Changpeng Zhao. Zhao, who in 2017 founded what would later become the largest crypto exchange in the world, pleaded guilty in late 2023 to one felony charge of failing to maintain an effective anti-money laundering program at Binance. The company itself pleaded guilty to three additional charges: conspiracy to conduct an unlicensed money transmitting business and to fail to maintain an effective anti-money laundering program, conducting an unlicensed money transmitting business, and sanctions violations. CZ served four months of prison time, and was released in September 2024 [I68]. He paid a $50 million fine, and his company paid another $4.3 billion in penalties. The indictment was damning, with evidence suggesting that CZ himself had directed Binance to implement a sham compliance program that would fool US regulators into believing they were screening for suspicious or illicit activity, while simultaneously allowing illicit transactions to continue unimpeded. While the primary Binance platform was not permitted to serve US customers, the company actively encouraged US-based users to circumvent Binance’s own geofencing, with CZ instructing: “On the surface we cannot be seen to have US users but in reality, we should get them through other creative means.” Binance was simultaneously aware that it was offering services to sanctioned users, with the company’s Chief Compliance Officer writing that “There i
After months of lobbying, President Trump has pardoned Binance founder Changpeng Zhao. Zhao, who in 2017 founded what would later become the largest crypto exchange in the world, pleaded guilty in late 2023 to one felony charge of failing to maintain an effective anti-money laundering program at Binance. The company itself pleaded guilty to three additional charges: conspiracy to conduct an unlicensed money transmitting business and to fail to maintain an effective anti-money laundering program, conducting an unlicensed money transmitting business, and sanctions violations. CZ served four months of prison time, and was released in September 2024 [I68]. He paid a $50 million fine, and his company paid another $4.3 billion in penalties. The indictment was damning, with evidence suggesting that CZ himself had directed Binance to implement a sham compliance program that would fool US regulators into believing they were screening for suspicious or illicit activity, while simultaneously allowing illicit transactions to continue unimpeded. While the primary Binance platform was not permitted to serve US customers, the company actively encouraged US-based users to circumvent Binance’s own geofencing, with CZ instructing: “On the surface we cannot be seen to have US users but in reality, we should get them through other creative means.” Binance was simultaneously aware that it was offering services to sanctioned users, with the company’s Chief Compliance Officer writing that “There i
After months of lobbying, President Trump has pardoned Binance founder Changpeng Zhao. Zhao, who in 2017 founded what would later become the largest crypto exchange in the world, pleaded guilty in late 2023 to one felony charge of failing to maintain an effective anti-money laundering program at Binance. The company itself pleaded guilty to three additional charges: conspiracy to conduct an unlicensed money transmitting business and to fail to maintain an effective anti-money laundering program, conducting an unlicensed money transmitting business, and sanctions violations. CZ served four months of prison time, and was released in September 2024 [I68]. He paid a $50 million fine, and his company paid another $4.3 billion in penalties. The indictment was damning, with evidence suggesting that CZ himself had directed Binance to implement a sham compliance program that would fool US regulators into believing they were screening for suspicious or illicit activity, while simultaneously allowing illicit transactions to continue unimpeded. While the primary Binance platform was not permitted to serve US customers, the company actively encouraged US-based users to circumvent Binance’s own geofencing, with CZ instructing: “On the surface we cannot be seen to have US users but in reality, we should get them through other creative means.” Binance was simultaneously aware that it was offering services to sanctioned users, with the company’s Chief Compliance Officer writing that “There i
drathir
@drathir@mastodon.social  ·  activity timestamp 2 days ago
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
The pardon has infuriated Congressional Democrats like House Financial Services Committee Ranking Member Maxine Waters:2 Trump is doing massive favors for crypto criminals who have helped line his pockets. Trump’s pardon of Binance founder Changpeng Zhao—who pleaded guilty to enabling money laundering and facilitating suspicious transactions with child abusers, drug dealers, and terrorists—is an appalling but unsurprising reflection of his presidency: one defined by corruption, self-interest, and loyalty to criminals over working-class American families. Let’s be clear about why this happened. CZ has spent months lobbying Trump and his family while funneling billions into Trump’s personal crypto company, World Liberty Financial. The pardon was the payoff and a blatant example of the kind of pay-to-play corruption that Trump and his Administration continue to engage in. Democratic Senators Warren and Schiff introduced a (mostly symbolic) Senate resolution to condemn the pardon, “calling for Congress to use its authority to stop this form of corruption.”3 Warren has specifically urged Congress to address corruption as part of its ongoing negotiations over crypto market structure legislation,4 and more crypto-friendly Democrats like Senator Gallego have begun to agree that Trump’s corruption needs to be addressed in the bill.5 While this is likely to be unpopular with Republicans, some in the GOP are beginning to show unease with Trump’s activities
The pardon has infuriated Congressional Democrats like House Financial Services Committee Ranking Member Maxine Waters:2 Trump is doing massive favors for crypto criminals who have helped line his pockets. Trump’s pardon of Binance founder Changpeng Zhao—who pleaded guilty to enabling money laundering and facilitating suspicious transactions with child abusers, drug dealers, and terrorists—is an appalling but unsurprising reflection of his presidency: one defined by corruption, self-interest, and loyalty to criminals over working-class American families. Let’s be clear about why this happened. CZ has spent months lobbying Trump and his family while funneling billions into Trump’s personal crypto company, World Liberty Financial. The pardon was the payoff and a blatant example of the kind of pay-to-play corruption that Trump and his Administration continue to engage in. Democratic Senators Warren and Schiff introduced a (mostly symbolic) Senate resolution to condemn the pardon, “calling for Congress to use its authority to stop this form of corruption.”3 Warren has specifically urged Congress to address corruption as part of its ongoing negotiations over crypto market structure legislation,4 and more crypto-friendly Democrats like Senator Gallego have begun to agree that Trump’s corruption needs to be addressed in the bill.5 While this is likely to be unpopular with Republicans, some in the GOP are beginning to show unease with Trump’s activities
The pardon has infuriated Congressional Democrats like House Financial Services Committee Ranking Member Maxine Waters:2 Trump is doing massive favors for crypto criminals who have helped line his pockets. Trump’s pardon of Binance founder Changpeng Zhao—who pleaded guilty to enabling money laundering and facilitating suspicious transactions with child abusers, drug dealers, and terrorists—is an appalling but unsurprising reflection of his presidency: one defined by corruption, self-interest, and loyalty to criminals over working-class American families. Let’s be clear about why this happened. CZ has spent months lobbying Trump and his family while funneling billions into Trump’s personal crypto company, World Liberty Financial. The pardon was the payoff and a blatant example of the kind of pay-to-play corruption that Trump and his Administration continue to engage in. Democratic Senators Warren and Schiff introduced a (mostly symbolic) Senate resolution to condemn the pardon, “calling for Congress to use its authority to stop this form of corruption.”3 Warren has specifically urged Congress to address corruption as part of its ongoing negotiations over crypto market structure legislation,4 and more crypto-friendly Democrats like Senator Gallego have begun to agree that Trump’s corruption needs to be addressed in the bill.5 While this is likely to be unpopular with Republicans, some in the GOP are beginning to show unease with Trump’s activities
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
In the courts Fellow crypto felon Sam Bankman-Fried has been working to rehabilitate his image as he prepares for his upcoming appeal hearings. He’s spent the last 19 months or so in prison after being found guilty on all counts in the FTX fraud trial, though he has continued to maintain his innocence. Since Trump’s election, he’s attempted to jump on the same bandwagon of complaining that his prosecution was based on not on the billions of dollars in customer funds he illegally squandered and his other various crimes, but instead on “Biden’s anti-crypto SEC/DOJ [that] went after me”. Earlier this year, SBF used prison interviews with the New York Sun and Tucker Carlson to spread his message [I78, 79]; now he’s proxying social media posts through a friend on the outside. Though once known as a Democratic megadonor, Bankman-Fried has begun emphasizing his history of dark-money contributions to Republicans, posting, “In 2020, I was center-left. By 2022—having seen Gensler/Biden's DOJ on crypto—I was a centrist, and (privately) donated tens of millions to Republicans.”7’ Bankman-Fried seems to be angling for a pardon of his own if his appeal is unsuccessful, though whether Trump would oblige is less clear. Unlike CZ, who is one of the wealthiest men in the world and continues to be a powerful and relatively well-liked figure in the crypto industry, Bankman-Fried is staring down the remainder of a 25-year prison sentence, with few assets to his name, high-profile links to Democr
In the courts Fellow crypto felon Sam Bankman-Fried has been working to rehabilitate his image as he prepares for his upcoming appeal hearings. He’s spent the last 19 months or so in prison after being found guilty on all counts in the FTX fraud trial, though he has continued to maintain his innocence. Since Trump’s election, he’s attempted to jump on the same bandwagon of complaining that his prosecution was based on not on the billions of dollars in customer funds he illegally squandered and his other various crimes, but instead on “Biden’s anti-crypto SEC/DOJ [that] went after me”. Earlier this year, SBF used prison interviews with the New York Sun and Tucker Carlson to spread his message [I78, 79]; now he’s proxying social media posts through a friend on the outside. Though once known as a Democratic megadonor, Bankman-Fried has begun emphasizing his history of dark-money contributions to Republicans, posting, “In 2020, I was center-left. By 2022—having seen Gensler/Biden's DOJ on crypto—I was a centrist, and (privately) donated tens of millions to Republicans.”7’ Bankman-Fried seems to be angling for a pardon of his own if his appeal is unsuccessful, though whether Trump would oblige is less clear. Unlike CZ, who is one of the wealthiest men in the world and continues to be a powerful and relatively well-liked figure in the crypto industry, Bankman-Fried is staring down the remainder of a 25-year prison sentence, with few assets to his name, high-profile links to Democr
In the courts Fellow crypto felon Sam Bankman-Fried has been working to rehabilitate his image as he prepares for his upcoming appeal hearings. He’s spent the last 19 months or so in prison after being found guilty on all counts in the FTX fraud trial, though he has continued to maintain his innocence. Since Trump’s election, he’s attempted to jump on the same bandwagon of complaining that his prosecution was based on not on the billions of dollars in customer funds he illegally squandered and his other various crimes, but instead on “Biden’s anti-crypto SEC/DOJ [that] went after me”. Earlier this year, SBF used prison interviews with the New York Sun and Tucker Carlson to spread his message [I78, 79]; now he’s proxying social media posts through a friend on the outside. Though once known as a Democratic megadonor, Bankman-Fried has begun emphasizing his history of dark-money contributions to Republicans, posting, “In 2020, I was center-left. By 2022—having seen Gensler/Biden's DOJ on crypto—I was a centrist, and (privately) donated tens of millions to Republicans.”7’ Bankman-Fried seems to be angling for a pardon of his own if his appeal is unsuccessful, though whether Trump would oblige is less clear. Unlike CZ, who is one of the wealthiest men in the world and continues to be a powerful and relatively well-liked figure in the crypto industry, Bankman-Fried is staring down the remainder of a 25-year prison sentence, with few assets to his name, high-profile links to Democr
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
In Congress Crypto executives flocked to Washington to advocate for their desired crypto market structure legislation. Some legislators and crypto industry figures had been optimistic that such a bill would speed through the Senate, but many of their estimated deadlines have come and gone by now. With the government still shut down, and lawmakers beginning to shift their attentions to campaigning for next year’s midterm elections, hopes of a bill passing by the end of the year are faltering. Donald Trump isn’t exactly helping matters by becoming only more brazen in his crypto corruption. His supporters in Congress are now stuck with the prospect of explaining why they wouldn’t support language in the bill to limit crypto-related conflicts of interest by officeholders, while, in the background, Trump is swan-diving Scrooge McDuck–style into his more than $1 billion in crypto profits in under a year14 and flashing plans for a gold-plated ballroom funded by his crypto patrons.
In Congress Crypto executives flocked to Washington to advocate for their desired crypto market structure legislation. Some legislators and crypto industry figures had been optimistic that such a bill would speed through the Senate, but many of their estimated deadlines have come and gone by now. With the government still shut down, and lawmakers beginning to shift their attentions to campaigning for next year’s midterm elections, hopes of a bill passing by the end of the year are faltering. Donald Trump isn’t exactly helping matters by becoming only more brazen in his crypto corruption. His supporters in Congress are now stuck with the prospect of explaining why they wouldn’t support language in the bill to limit crypto-related conflicts of interest by officeholders, while, in the background, Trump is swan-diving Scrooge McDuck–style into his more than $1 billion in crypto profits in under a year14 and flashing plans for a gold-plated ballroom funded by his crypto patrons.
In Congress Crypto executives flocked to Washington to advocate for their desired crypto market structure legislation. Some legislators and crypto industry figures had been optimistic that such a bill would speed through the Senate, but many of their estimated deadlines have come and gone by now. With the government still shut down, and lawmakers beginning to shift their attentions to campaigning for next year’s midterm elections, hopes of a bill passing by the end of the year are faltering. Donald Trump isn’t exactly helping matters by becoming only more brazen in his crypto corruption. His supporters in Congress are now stuck with the prospect of explaining why they wouldn’t support language in the bill to limit crypto-related conflicts of interest by officeholders, while, in the background, Trump is swan-diving Scrooge McDuck–style into his more than $1 billion in crypto profits in under a year14 and flashing plans for a gold-plated ballroom funded by his crypto patrons.
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
Some pro-crypto Senate Democrats have reportedly blown up at the crypto executives in these meetings, urging them: “Don’t be an arm of the Republican Party — they used you and your megaphones to fuck us.”15 This was likely in response to the recent leak by Senate Republicans of a Democratic draft proposal to regulate decentralized finance, which sparked dramatic backlash from crypto industry figures who fear it would effectively outlaw defi. Paradigm lobbyist Alexander Grieve bashed the proposal as “worse than anything Gensler cooked up”,16 and industry advocate Jake Chervinsky described it as “basically a crypto ban”.17 Other Democrats have expressed annoyance at Republicans for pushing them to agree to a markup date without having had much time to negotiate the draft. “Democrats have shown up ready to work but our Republican counterparts are crashing out,” said a staffer for Arizona Senator Ruben Gallego. “Their demand to set a markup date before text is agreed to is like setting a wedding date before the first date. It’s nonsensical.”18 But the Republicans are feeling the time crunch. A source familiar with the meetings, speaking to Decrypt, said, “[T]he Republicans are like: ‘If we don't move this in November, we don't get it done by the end of the year, then the whole thing derails.’”19
Some pro-crypto Senate Democrats have reportedly blown up at the crypto executives in these meetings, urging them: “Don’t be an arm of the Republican Party — they used you and your megaphones to fuck us.”15 This was likely in response to the recent leak by Senate Republicans of a Democratic draft proposal to regulate decentralized finance, which sparked dramatic backlash from crypto industry figures who fear it would effectively outlaw defi. Paradigm lobbyist Alexander Grieve bashed the proposal as “worse than anything Gensler cooked up”,16 and industry advocate Jake Chervinsky described it as “basically a crypto ban”.17 Other Democrats have expressed annoyance at Republicans for pushing them to agree to a markup date without having had much time to negotiate the draft. “Democrats have shown up ready to work but our Republican counterparts are crashing out,” said a staffer for Arizona Senator Ruben Gallego. “Their demand to set a markup date before text is agreed to is like setting a wedding date before the first date. It’s nonsensical.”18 But the Republicans are feeling the time crunch. A source familiar with the meetings, speaking to Decrypt, said, “[T]he Republicans are like: ‘If we don't move this in November, we don't get it done by the end of the year, then the whole thing derails.’”19
Some pro-crypto Senate Democrats have reportedly blown up at the crypto executives in these meetings, urging them: “Don’t be an arm of the Republican Party — they used you and your megaphones to fuck us.”15 This was likely in response to the recent leak by Senate Republicans of a Democratic draft proposal to regulate decentralized finance, which sparked dramatic backlash from crypto industry figures who fear it would effectively outlaw defi. Paradigm lobbyist Alexander Grieve bashed the proposal as “worse than anything Gensler cooked up”,16 and industry advocate Jake Chervinsky described it as “basically a crypto ban”.17 Other Democrats have expressed annoyance at Republicans for pushing them to agree to a markup date without having had much time to negotiate the draft. “Democrats have shown up ready to work but our Republican counterparts are crashing out,” said a staffer for Arizona Senator Ruben Gallego. “Their demand to set a markup date before text is agreed to is like setting a wedding date before the first date. It’s nonsensical.”18 But the Republicans are feeling the time crunch. A source familiar with the meetings, speaking to Decrypt, said, “[T]he Republicans are like: ‘If we don't move this in November, we don't get it done by the end of the year, then the whole thing derails.’”19
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
The Trump administration is also working to push the Federal Reserve in a more pro-crypto direction, interviewing various candidates for a shortlist of nominees for the central bank’s board of governors and, eventually, chair.24 Among them is Michelle Bowman, who’s criticized bank regulators of being “overly cautious” and recommended loosening restrictions on Fed staff investments to allow them to own crypto.25 Another candidate for the list of possible nominees is Trump economic adviser Kevin Hassett, who served on Coinbase’s Academic and Regulatory Advisory Council and has disclosed holding $1 million–$5 million in Coinbase stock.26 Current Fed Governor Christopher Waller might also be a candidate for eventual chair. He’s recently made headlines for proposing issuing crypto firms “skinny” versions of master accounts, which grant financial institutions direct access to the Federal Reserve payment rails. The Fed has typically been hesitant to issue master accounts to crypto firms due to high risk, but Waller has urged the central bank to “embrace the disruption, don’t avoid it.”27
The Trump administration is also working to push the Federal Reserve in a more pro-crypto direction, interviewing various candidates for a shortlist of nominees for the central bank’s board of governors and, eventually, chair.24 Among them is Michelle Bowman, who’s criticized bank regulators of being “overly cautious” and recommended loosening restrictions on Fed staff investments to allow them to own crypto.25 Another candidate for the list of possible nominees is Trump economic adviser Kevin Hassett, who served on Coinbase’s Academic and Regulatory Advisory Council and has disclosed holding $1 million–$5 million in Coinbase stock.26 Current Fed Governor Christopher Waller might also be a candidate for eventual chair. He’s recently made headlines for proposing issuing crypto firms “skinny” versions of master accounts, which grant financial institutions direct access to the Federal Reserve payment rails. The Fed has typically been hesitant to issue master accounts to crypto firms due to high risk, but Waller has urged the central bank to “embrace the disruption, don’t avoid it.”27
The Trump administration is also working to push the Federal Reserve in a more pro-crypto direction, interviewing various candidates for a shortlist of nominees for the central bank’s board of governors and, eventually, chair.24 Among them is Michelle Bowman, who’s criticized bank regulators of being “overly cautious” and recommended loosening restrictions on Fed staff investments to allow them to own crypto.25 Another candidate for the list of possible nominees is Trump economic adviser Kevin Hassett, who served on Coinbase’s Academic and Regulatory Advisory Council and has disclosed holding $1 million–$5 million in Coinbase stock.26 Current Fed Governor Christopher Waller might also be a candidate for eventual chair. He’s recently made headlines for proposing issuing crypto firms “skinny” versions of master accounts, which grant financial institutions direct access to the Federal Reserve payment rails. The Fed has typically been hesitant to issue master accounts to crypto firms due to high risk, but Waller has urged the central bank to “embrace the disruption, don’t avoid it.”27
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Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
Meanwhile, the Office of the Comptroller of the Currency is sifting through a growing pile of applications for national trust bank charters from cryptocurrency firms. Circle, Ripple, BitGo, and Erebor applied for theirs earlier this year [I88], and Paxos followed not long after. This month, Coinbase, Stripe’s recently acquired stablecoin firm Bridge, and Crypto.com have all added their applications to the stack. Erebor’s is the first application of the lot to be granted preliminary approval. As I wrote in July: Another bank called Erebor, which as you might guess by the Lord of the Rings name is backed by Peter Thiel, Joe Lonsdale, and Palmer Luckey, has also applied for a bank charter. According to the Financial Times, the new bank will aim to “fill the gap left by Silicon Valley Bank” — the tech startup-focused bank that failed in March 2023. Around 85% of Silicon Valley Bank’s deposits, mostly belonging to venture capitalists and venture-backed tech companies, were uninsured; the FDIC nevertheless covered those uninsured depositors and spent $20 billion on the whole boondoggle. As is so often the case with “tech visionaries”, yesterday’s warning lesson is tomorrow’s blueprint. A statement by Comptroller Jonathan Gould suggests that the approval was at least partially motivated by a desire to cast off accusations from the crypto industry that government agencies had targeted it for “debanking”. In a statement, Gould announced that the approval “is also proof that the OCC u
Meanwhile, the Office of the Comptroller of the Currency is sifting through a growing pile of applications for national trust bank charters from cryptocurrency firms. Circle, Ripple, BitGo, and Erebor applied for theirs earlier this year [I88], and Paxos followed not long after. This month, Coinbase, Stripe’s recently acquired stablecoin firm Bridge, and Crypto.com have all added their applications to the stack. Erebor’s is the first application of the lot to be granted preliminary approval. As I wrote in July: Another bank called Erebor, which as you might guess by the Lord of the Rings name is backed by Peter Thiel, Joe Lonsdale, and Palmer Luckey, has also applied for a bank charter. According to the Financial Times, the new bank will aim to “fill the gap left by Silicon Valley Bank” — the tech startup-focused bank that failed in March 2023. Around 85% of Silicon Valley Bank’s deposits, mostly belonging to venture capitalists and venture-backed tech companies, were uninsured; the FDIC nevertheless covered those uninsured depositors and spent $20 billion on the whole boondoggle. As is so often the case with “tech visionaries”, yesterday’s warning lesson is tomorrow’s blueprint. A statement by Comptroller Jonathan Gould suggests that the approval was at least partially motivated by a desire to cast off accusations from the crypto industry that government agencies had targeted it for “debanking”. In a statement, Gould announced that the approval “is also proof that the OCC u
Meanwhile, the Office of the Comptroller of the Currency is sifting through a growing pile of applications for national trust bank charters from cryptocurrency firms. Circle, Ripple, BitGo, and Erebor applied for theirs earlier this year [I88], and Paxos followed not long after. This month, Coinbase, Stripe’s recently acquired stablecoin firm Bridge, and Crypto.com have all added their applications to the stack. Erebor’s is the first application of the lot to be granted preliminary approval. As I wrote in July: Another bank called Erebor, which as you might guess by the Lord of the Rings name is backed by Peter Thiel, Joe Lonsdale, and Palmer Luckey, has also applied for a bank charter. According to the Financial Times, the new bank will aim to “fill the gap left by Silicon Valley Bank” — the tech startup-focused bank that failed in March 2023. Around 85% of Silicon Valley Bank’s deposits, mostly belonging to venture capitalists and venture-backed tech companies, were uninsured; the FDIC nevertheless covered those uninsured depositors and spent $20 billion on the whole boondoggle. As is so often the case with “tech visionaries”, yesterday’s warning lesson is tomorrow’s blueprint. A statement by Comptroller Jonathan Gould suggests that the approval was at least partially motivated by a desire to cast off accusations from the crypto industry that government agencies had targeted it for “debanking”. In a statement, Gould announced that the approval “is also proof that the OCC u
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
In the states Nevada’s Financial Institutions Division (NFID) has issued a cease and desist order against Fortress Trust [W3IGG], a crypto custody company founded by Scott Purcell. Purcell had previously founded Prime Trust, which filed for bankruptcy in 2021 after raising tens of millions in seed funding, giving half of it to executives, and then promptly losing a hardware wallet storing customer funds [I31, 38]. The company’s bankruptcy filing came only after the firm was placed into receivership by NFID, which alleged they were insolvent and ordered them to halt operations. Now, NFID is ordering Fortress Trust to halt operations because — you guessed it — Fortress is “on the verge of insolvency”. NFID elaborates that Fortress has about $1.3 million in custodial assets, but they owe clients around $12.3 million; and have acknowledged that they “failed to safeguard assets under its custody and is unable to meet all customer withdrawals”. (I’m not quite sure why NFID describes this as merely “on the verge” of insolvency.)29 Fortress previously made it to this newsletter in September 2023 after suffering a $15 million theft. At the time, Fortress announced it would be acquired by Ripple, which had agreed to cover the losses; however, the deal fell through later that month [I39, W3IGG]. It’s not clear how — or if — Fortress ever plugged that hole. Fortress is a state-chartered trust company — the very same category of company that the SEC just greenlighted to serve as crypto
In the states Nevada’s Financial Institutions Division (NFID) has issued a cease and desist order against Fortress Trust [W3IGG], a crypto custody company founded by Scott Purcell. Purcell had previously founded Prime Trust, which filed for bankruptcy in 2021 after raising tens of millions in seed funding, giving half of it to executives, and then promptly losing a hardware wallet storing customer funds [I31, 38]. The company’s bankruptcy filing came only after the firm was placed into receivership by NFID, which alleged they were insolvent and ordered them to halt operations. Now, NFID is ordering Fortress Trust to halt operations because — you guessed it — Fortress is “on the verge of insolvency”. NFID elaborates that Fortress has about $1.3 million in custodial assets, but they owe clients around $12.3 million; and have acknowledged that they “failed to safeguard assets under its custody and is unable to meet all customer withdrawals”. (I’m not quite sure why NFID describes this as merely “on the verge” of insolvency.)29 Fortress previously made it to this newsletter in September 2023 after suffering a $15 million theft. At the time, Fortress announced it would be acquired by Ripple, which had agreed to cover the losses; however, the deal fell through later that month [I39, W3IGG]. It’s not clear how — or if — Fortress ever plugged that hole. Fortress is a state-chartered trust company — the very same category of company that the SEC just greenlighted to serve as crypto
In the states Nevada’s Financial Institutions Division (NFID) has issued a cease and desist order against Fortress Trust [W3IGG], a crypto custody company founded by Scott Purcell. Purcell had previously founded Prime Trust, which filed for bankruptcy in 2021 after raising tens of millions in seed funding, giving half of it to executives, and then promptly losing a hardware wallet storing customer funds [I31, 38]. The company’s bankruptcy filing came only after the firm was placed into receivership by NFID, which alleged they were insolvent and ordered them to halt operations. Now, NFID is ordering Fortress Trust to halt operations because — you guessed it — Fortress is “on the verge of insolvency”. NFID elaborates that Fortress has about $1.3 million in custodial assets, but they owe clients around $12.3 million; and have acknowledged that they “failed to safeguard assets under its custody and is unable to meet all customer withdrawals”. (I’m not quite sure why NFID describes this as merely “on the verge” of insolvency.)29 Fortress previously made it to this newsletter in September 2023 after suffering a $15 million theft. At the time, Fortress announced it would be acquired by Ripple, which had agreed to cover the losses; however, the deal fell through later that month [I39, W3IGG]. It’s not clear how — or if — Fortress ever plugged that hole. Fortress is a state-chartered trust company — the very same category of company that the SEC just greenlighted to serve as crypto
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
In elections and political influence Tens of millions of Americans are days away from losing lifesaving food, childcare, and utility support,30 and many are weighing the risk of going without health insurance next year as their premiums double (or more).31 In the middle of it, Trump has begun demolishing the East Wing of the White House to build a gold‑plated ballroom bankrolled by crypto industry and other benefactors — symbolism so blunt no novelist could get away with it. Heavy machinery dismantles the East Wing of the White House in October (CC BY-SA 4.0, Sizzlipedia) Among those funding the $300 million project are Coinbase, Ripple, Tether, and Gemini’s Winklevoss twins. The size of their contributions to this effort have not been published, but the contributions only add to the millions these groups have already poured into Trump super PACs, his inauguration fund, and other pet projects like the June military parade. Other donors funding the ballroom include tech megafirms like Amazon, Apple, Google, Microsoft, and Palantir, as well as a motley crew ranging from weapons manufacturers to tobacco companies to sugar barons.32
In elections and political influence Tens of millions of Americans are days away from losing lifesaving food, childcare, and utility support,30 and many are weighing the risk of going without health insurance next year as their premiums double (or more).31 In the middle of it, Trump has begun demolishing the East Wing of the White House to build a gold‑plated ballroom bankrolled by crypto industry and other benefactors — symbolism so blunt no novelist could get away with it. Heavy machinery dismantles the East Wing of the White House in October (CC BY-SA 4.0, Sizzlipedia) Among those funding the $300 million project are Coinbase, Ripple, Tether, and Gemini’s Winklevoss twins. The size of their contributions to this effort have not been published, but the contributions only add to the millions these groups have already poured into Trump super PACs, his inauguration fund, and other pet projects like the June military parade. Other donors funding the ballroom include tech megafirms like Amazon, Apple, Google, Microsoft, and Palantir, as well as a motley crew ranging from weapons manufacturers to tobacco companies to sugar barons.32
In elections and political influence Tens of millions of Americans are days away from losing lifesaving food, childcare, and utility support,30 and many are weighing the risk of going without health insurance next year as their premiums double (or more).31 In the middle of it, Trump has begun demolishing the East Wing of the White House to build a gold‑plated ballroom bankrolled by crypto industry and other benefactors — symbolism so blunt no novelist could get away with it. Heavy machinery dismantles the East Wing of the White House in October (CC BY-SA 4.0, Sizzlipedia) Among those funding the $300 million project are Coinbase, Ripple, Tether, and Gemini’s Winklevoss twins. The size of their contributions to this effort have not been published, but the contributions only add to the millions these groups have already poured into Trump super PACs, his inauguration fund, and other pet projects like the June military parade. Other donors funding the ballroom include tech megafirms like Amazon, Apple, Google, Microsoft, and Palantir, as well as a motley crew ranging from weapons manufacturers to tobacco companies to sugar barons.32
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
Andrew Cuomo seems to be in the “panicked flailing” portion of his NYC mayoral campaign. Besides posting (and then quickly deleting) an astonishingly racist AI-generated “criminals for Mamdani” spoof video33 and suggesting his opponent would revel in another terrorist attack on the city,34 Cuomo has signaled his distress in another way: by trying to appeal to the crypto industry. Perhaps hoping for a last-minute infusion of cash, à la the New Jersey gubernatorial race earlier this year [I85], Cuomo has announced plans to bolster the tech sector in the city, including by installing an “Innovation Council” headed by crypto, biotech, and artificial intelligence executives.35 This helped draw an endorsement from a tiny PAC called Innovate NY, which issued an enthusiastic statement about Cuomo’s “forward-looking economic agenda that leverages blockchain, tokenization, public-benefit stablecoins, and artificial intelligence”.36 The PAC made its first expenditure in the race shortly after, spending $30,000 to disseminate a typo-ridden and evidently AI-generated flyer including false claims about Mamdani’s platform and suggesting he would endanger the city. Innovate NY is headed by Edward Cullenb of Tennessee, who is also the CEO of a company that plans to issue The Catholic Token™.
Andrew Cuomo seems to be in the “panicked flailing” portion of his NYC mayoral campaign. Besides posting (and then quickly deleting) an astonishingly racist AI-generated “criminals for Mamdani” spoof video33 and suggesting his opponent would revel in another terrorist attack on the city,34 Cuomo has signaled his distress in another way: by trying to appeal to the crypto industry. Perhaps hoping for a last-minute infusion of cash, à la the New Jersey gubernatorial race earlier this year [I85], Cuomo has announced plans to bolster the tech sector in the city, including by installing an “Innovation Council” headed by crypto, biotech, and artificial intelligence executives.35 This helped draw an endorsement from a tiny PAC called Innovate NY, which issued an enthusiastic statement about Cuomo’s “forward-looking economic agenda that leverages blockchain, tokenization, public-benefit stablecoins, and artificial intelligence”.36 The PAC made its first expenditure in the race shortly after, spending $30,000 to disseminate a typo-ridden and evidently AI-generated flyer including false claims about Mamdani’s platform and suggesting he would endanger the city. Innovate NY is headed by Edward Cullenb of Tennessee, who is also the CEO of a company that plans to issue The Catholic Token™.
Andrew Cuomo seems to be in the “panicked flailing” portion of his NYC mayoral campaign. Besides posting (and then quickly deleting) an astonishingly racist AI-generated “criminals for Mamdani” spoof video33 and suggesting his opponent would revel in another terrorist attack on the city,34 Cuomo has signaled his distress in another way: by trying to appeal to the crypto industry. Perhaps hoping for a last-minute infusion of cash, à la the New Jersey gubernatorial race earlier this year [I85], Cuomo has announced plans to bolster the tech sector in the city, including by installing an “Innovation Council” headed by crypto, biotech, and artificial intelligence executives.35 This helped draw an endorsement from a tiny PAC called Innovate NY, which issued an enthusiastic statement about Cuomo’s “forward-looking economic agenda that leverages blockchain, tokenization, public-benefit stablecoins, and artificial intelligence”.36 The PAC made its first expenditure in the race shortly after, spending $30,000 to disseminate a typo-ridden and evidently AI-generated flyer including false claims about Mamdani’s platform and suggesting he would endanger the city. Innovate NY is headed by Edward Cullenb of Tennessee, who is also the CEO of a company that plans to issue The Catholic Token™.
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