Newsletter: President on brink of bailout for bitcoin
Trump tries to breathe life back into the crypto markets’ “Trump pump” while federal regulatory agencies wash their hands of any crypto industry oversight
While cryptocurrencies were once viewed as a subversive financial instrument intended to be independent from governments, banks, or the traditional financial system, it’s become clear that the crypto world is deeply dependent on outside forces propping it up.
Seeming to respond to the panicked pleas from the cryptocurrency industry, Trump rescued bitcoin from its below-$80,000 slide in a Sunday Truth Social post reiterating his plans for a “U.S. Crypto Reserve”.
But the “announcement” doesn’t seem to actually announce anything new, and instead seems to be Trump’s attempt to apply some electroshock paddles to the easily swayed crypto markets.
Every time he does this, it seems to work less and less.
Rocky crypto markets have not exactly been steadied by a new theft from a crypto exchange that dwarfs other previous hacks. North Korea has added another $1.5 billion to its stash of stolen crypto — more than all of their (also substantial) thefts last year combined.
While Bybit’s CEO immediately claimed that “all of client assets are 1 to 1 backed”, it was later disclosed that wasn’t true. Bybit papered over the stolen funds by taking loans from other exchanges and crypto VCs, but their ability to repay those loans will remain to be seen.
The SEC has rapidly been pausing and dropping enforcement cases and investigations against crypto companies, including some of the largest crypto-focused political donors (and those paying Trump in more... creative ways).
Gemini’s Cameron Winklevoss isn’t satisfied with the SEC merely dropping an ongoing investigation into his crypto exchange. The billionaire is now suggesting that the SEC should have to repay 3× his legal expenses, and “dishonorably discharge” any employees who were involved.
Ongoing cases and investigations from the SEC against crypto firms have been paused or dropped. A few remain, but not likely for long.
@molly0xfff This is another reason why #decentralized, #permissionless and #censorship-resistant #technology will ultimately prevail.
