Trump's fresh crypto venture boosts the wealth of his kin
In a significant shift, the US Securities and Exchange Commission (SEC), under Chairman Paul Atkins and the Biden administration, is pursuing regulatory reforms aimed at updating cryptocurrency rules. The reforms include new proposals for digital asset offerings with potential 'safe harbor' protections, clarifications on broker-dealer rules to integrate crypto into traditional markets, enabling trading of cryptocurrencies on national securities exchanges, and reducing compliance burdens for listed companies. This more flexible regulatory stance, a departure from previous administrations, signals a development-friendly approach to the crypto industry.
Amidst these reforms, former President Trump, once a critic of cryptocurrency, has embraced it and vowed to make the United States the crypto capital of the world. Trump's appointment of Paul Atkins, a crypto supporter, to head the SEC, potentially indicates a shift in the regulatory approach towards the crypto industry.
Trump's foray into the crypto world began earlier this year with the launch of a 'meme coin.' Despite initial criticisms, Trump has since profited substantially from cryptocurrency sales, reporting income of over $57 million last year. The crypto business co-founded by Trump and his sons, World Liberty Financial, is now trading publicly, with the price of its tokens approximately 22 cents each by Wednesday afternoon, down from their high of 32 cents shortly after their debut.
However, concerns have been raised about the potential conflicts of interest. Democratic Senator Elizabeth Warren called the Trump family's $5 billion on-paper windfall from the cryptocurrency venture 'corruption, plain and simple.' Ross Delston, a lawyer and former banking regulator, stated that investing in this cryptocurrency could allow sketchy individuals or foreign state actors to curry favor with the president.
The 2024 federal elections saw crypto investors pouring money in, possibly influenced by Trump's pro-crypto stance. Deep-pocketed crypto investors have courted Trump in the past, and anyone can buy or sell the '$WLFI' token, potentially contributing to Trump's personal finances.
Trump's crypto ventures have put him in a position to profit from the more relaxed rules coming out of his administration. In addition to cryptocurrencies, Trump has licensed his name to sell various products, from sneakers to Bibles.
Notably, President Trump signed the GENIUS Act, the country's first major standalone cryptocurrency legislation, in July. However, under President Biden's Securities and Exchange Commission, there has been a crackdown on crypto companies, highlighting the ongoing debate about the regulation of this burgeoning industry.
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