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”.
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")
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”.
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.
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.
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.”
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.
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