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.
Molly White replied to Molly White's status
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”.
![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](https://bookwyrm-social.sfo3.digitaloceanspaces.com/images/status/18c6f5d0-88c0-46f6-8c91-628b9d359e0c.png "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")
Molly White replied to Molly White's status
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”.
Molly White replied to Molly White's status
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.
![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](https://bookwyrm-social.sfo3.digitaloceanspaces.com/images/status/572d5ec4-72ee-4e85-9fcd-9b88b9e31449.png "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")
Molly White replied to Molly White's status
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”.
Molly White replied to Molly White's status
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.
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.
Molly White replied to Molly White's status
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.
Molly White replied to Molly White's status
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.”
