The plunge into encryption — the asset he once described as “scam” — is not uncontroversial, even from within the Crypto community itself.
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Some of these crypto billionaires are concerned that the controversy surrounding Trump’s holdings will recover into the industry, just as Trump’s support was trying to bring crypto into the mainstream of the US financial system.
The president, who is ultimately responsible for regulating the sector, has a clear conflict of interest, and in March signed an executive order to create a national strategic reserve for Bitcoin and other crypto assets. In some ratings, almost 40% of his net worth (and rising) is code-bound.
What remains undispelled is that Trump is acting the most non-presidential way and accepts conflict.
He has been springing his meme coins on social media – “I love Trump – so cool!!!!!!!” – promote the sector and loosen its regulations, even if he is heavily involved in it.
More importantly, his crypto assets raised more than a few brows, causing a backlash within Congress.
Chinese crypto billionaire Justin San on a tour last week for a few guests who became one of the top 220 owners of the $220 Trump Coin and won an invitation at a private dinner and tour at the White House.
Crypto Mogul Justin Sun is an investor in World Liberty Financial, the Trump family’s new cryptocurrency venture.credit: Bloomberg
During the Biden administration, Sun was sued by the Securities and Exchange Commission during the Biden administration, which allegedly distributed crypto assets illegally and inflated its value. He was an early investor at World Liberty’s Tokens last year, investing US$30 million in November, followed by a US$45 million investment. He is now an advisor to the freedom of the world.
After Trump took office, the SEC asked the judge to hold off the case.
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More broadly, the US Department of Justice has shut down its national cryptocurrency enforcement team under the Trump administration, declaring it not a digital asset regulator, and criticising the Biden administration for “a reckless prosecutor’s strategy of regulatory.” It praised Trump’s executive order for a change in approach.
There is another controversy surrounding the freedom of the world. This month, MGX, a state-backed Abu Dhabi investment fund, announced that it will use World Liberty’s stubcoin to invest US$2 billion in crypto exchange binance.
This transaction provides reliability and generates great revenues at the world’s freedom. This has promoted stubcoin as an attractive asset for sovereign wealth funds and other government agencies, but also raises some troubling issues.
Binance pleaded guilty to money laundering fees in 2023 and agreed to pay a US$4.3 billion penalty. Its founder and former CEO Changpen Zao owns 90% of the platform and served four months in prison last year.
He says he is seeking pardon from Trump. The Trump family also reportedly discussed gaining interest in Binance’s US business. What an intertwined web they are!
The dispute in Trump trade in Crypto has derailed what was a partisan consensus on crypto regulations.
Earlier this month, the so-called genius law would have provided a regulatory framework for stubcoins that are not currently present – a bill not supported by the crypto sector was voted in the Senate for the perceived Trump conflict and the potential crypto assets used as an announcement for corruption of civil servants.
Trump’s VIP dinner and tour for his memecoin buyers could have played a role in rejecting the bill.
Senate Democrats proposed their own cryptography (the “final crypto corruption law”) that prohibits the president, lawmakers, and their families from issuing or approving crypto assets. Even if it passes, Trump could reject it, which would add another layer of conflict.
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Crypto investors and entrepreneurs are worried about Trump’s dealings as they are on the verge of success after years of lobbying for preferred legislative and regulatory models, and fear that the Trump tribe put their goals at stake in crypto schemes.
There will be no conflict of interest in his role as president. With executive orders and legislative sponsors (or rejections), he has shaped the control of sectors where his net worth is invested, or companies that are thriving trade wars around the world, promoting foreign government investments.
While you might argue that his assets are in the length of the weapon from the family’s crypto trading, as he lies in the trust managed by his eldest son, Don Jr., his repeated cryptography, especially his meme coin, undermines his claim.
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