Trump To Speak At BTC Conference
The Daily Crypto Update for Institutional Investors
US Presidential Candidate Donald Trump Will Speak At A BTC-Focused Conference In Nashville At The End Of The Month - Crypto’s Prominence In The US Election Is In Contrast To Rumours Of ‘Operation Chokepoint 2.0’ That Came To A Head This Time Last Year
'Operation chokepoint 2.0’ is a term used to describe the perceived effort by US regulators to restrict the banking and financial services available to the cryptocurrency industry. Notable examples of these efforts include the opaque closure of crypto-friendly Signature Bank in March of last year. Warnings from the Federal Reserve, FDIC and OCC that crypto activities are ‘highly likely to be inconsistent with safe and sound banking practices,’ made at the start of the year, are also considered to be a part of Operation chokepoint 2.0. The alleged crackdown was also widely perceived to be in concert with scrutiny from US regulators, most notably the SEC.
Anxiety over the treatment of crypto by the US government was additionally driven by the downfall of FTX in November 2022. For instance, in January the White House put out a statement on the ‘Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks.’ The statement explained that ‘the events of the past year underscore that more is needed,’ pointing to Terra Luna and FTX’s implosion. The statement urged Congress to pass legislation that would ‘expand regulators’ powers to prevent misuses of customers’ assets’ but urged lawmakers not to ‘greenlight mainstream institutions, like pension funds, to dive headlong into cryptocurrency markets.’
Media coverage significantly added to sentiment that the Biden administration was taking on anti-crypto policy positions. For instance, Axios wrote an article titled ‘Washington turns hostile on crypto’ in February. Bloomberg remarked that the shutdowns of Silvergate and Signature Bank ‘provide more impetus for already-wary lenders across America to further restrict their relationships with crypto companies, concerned about the possible damage to their balance sheets if said firms were to collapse FTX-style.’
Donald Trump, on the other hand, compared to the Biden administration, has taken on a diametrically opposed position on crypto. Trump’s most recent pro-crypto overture has been accepted to speak at the Bitcoin 2024 conference in Nashville at the end of the month. Trump will appear at the event alongside Michael Saylor, Cathie Wood, fellow presidential candidate Robert F. Kennedy Jr., Edward Snowden, and others.
Takeaway: The storyline for the crypto industry over the past 18 months has been highly dynamic. Sentiment within the crypto community during this time has also been volatile. Having said that, political support for crypto has been building among both parties. Trump’s campaign, in particular, for some time, has included numerous pro-crypto individuals, including contenders for cabinet positions and VP. However, the extent of Trump’s crypto embrace may have surprised some in the crypto community.
CRYPTO HEADLINES
The attempt by US lawmakers to override President Biden's veto of a crypto accounting measure was unsuccessful. Falling short of the needed two-thirds majority, the vote ended at 228-184. The measure in question was in response to the SEC’s SAB 121, perceived by the industry as anti-crypto. This bulletin mandates that crypto custodians list customer assets as liabilities. - link - @TheBlock
Crypto industry leaders expressed frustration at a White House meeting over Biden's regulatory approach. Hosted by Ro Khanna and Mark Cuban, the meeting aimed to address concerns about SEC actions and advocate for a more supportive crypto policy. - link - @FoxBusiness
Northern Data AG (ETR: NB2) predicts its revenue could more than triple to between EUR 200M and EUR 240M in 2024. The anticipated growth is driven by expansion in high-performance computing, with a 2025 target of EUR 520M to EUR 570M. In November, the company secured EUR 575M in debt financing from Tether to ‘invest in the most sophisticated hardware available’ for ‘Generative AI technology.’- link - @Bloomberg
The SEC will not pursue enforcement against Paxos regarding Binance’s stablecoin, BUSD. After receiving a Wells notice in February 2023, the New York-based firm argued that the stablecoins it issues, including BUSD, are not securities under federal laws. - link - @Paxos
Blockchain data shows that Germany’s government has transferred 10,567 BTC, worth USD ~600M, to various exchanges, reducing its BTC holdings to 4,925. Originating from a seizure of 50,000 BTC, the state is poised to finalize its disposals by the following week. Crypto media has largely attributed the recent performance of crypto markets to the sales, alongside distributions from Mt. Gox’s trustee this month. - link - @CoinDesk
Coinbase's (NASDAQ: COIN) subpoena for SEC Chairman Gary Gensler's personal communications was deemed unsuitable by a federal judge. In a court session, Judge Katherine Polk Failla prompted Coinbase to present a more substantial rationale via a formal motion to compel. The requested documents, pertaining to the period prior to Gensler's appointment, were challenged by the SEC on grounds of irrelevance. - link - @CoinDesk
Morgan Creek Digital announced plans to raise up to USD 500M for a new Web3 venture capital fund. The fund aims to invest in blockchain and digital asset innovations. The US-based firm is also looking to expand across EMEA and APAC. - link - @CoinDesk
Partior, supported by JPMorgan, DBS, and Standard Chartered, raised USD 60M in Series B funding. Led by Peak XV Partners, the round included Valor Capital and Jump Trading. The funds will enhance Partior's blockchain-based interbank payment systems, focusing on FX swaps and cross-currency repurchases. - link - @CoinDesk
Blockchain-based payments and FX startup Partior raised over USD 60M in a Series B funding round. The raise, led by Peak XV Partners, included new investors Valor Capital and Jump Trading, alongside existing backers JPMorgan, Standard Chartered, and Temasek. Partior aims to improve liquidity management and streamline cross-border payments and FX settlements using its private blockchain, planning to expand capabilities and integrate additional currencies. - link - @Partior
TOP ARTICLES
OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY
Institutional Investors Offer Reassuring Long View: ‘No Need To Blow Up 8 years Of Building’ Because Of Gensler, Fortune, May 19, 2023
FRNT CEO Stephane Ouellette, at a moment when dynamics surrounding the supposed 'Operation chokepoint 2.0’ were coming to a head last year, cautioned on taking a narrow view of that regulatory environment.
CRYPTO MULTIMEDIA
Why the SEC Lawsuit Against Consensys May Hold Little Ground, Unchained Podcast, July 9, 2024
Crypto-focused lawyers Kayvan Sadeghi and Sam Enzer analyze the SEC’s lawsuit against Consensys.
CHART OF THE DAY
ETH, priced in BTC, has struggled since the Ethereum network transitioned to proof-of-stake in September 2022. ETH/BTC is currently testing historical support...
About FRNT Financial
FRNT: TSXV is an institutional capital markets and advisory platform focused on digital assets. FRNT aims to bridge the worlds of traditional and web-based finance. Business lines include deliverable trading services, structured derivative products, merchant banking, advisory, consulting and principal investments.