Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
SEC Despite being almost completely neutered by the Trump administration, even today’s SEC can’t turn a blind eye to some business that’s simply too shady. The SEC and the Financial Industry Regulatory Authority (FINRA) have reportedly contacted some of the more than 200 companies that have found new life as crypto treasury companies this year. Many of these companies made a dramatic pivot to crypto (such as Justin Sun’s Tron treasury company, which previously sold theme park merchandise [I86]), and in some cases their stock prices moved substantially as they unveiled their new plans. The SEC and FINRA have noted, however, that in some of these cases, trading activity and stock prices spiked in the days prior to the announcement, leading the agencies to write to the firms to underscore that selectively disclosing material non-public information violates Regulation Fair Disclosure. Such communications often signal the beginning of an investigation or insider trading enforcement action, though it’s not clear if they do in this case.15
SEC Despite being almost completely neutered by the Trump administration, even today’s SEC can’t turn a blind eye to some business that’s simply too shady. The SEC and the Financial Industry Regulatory Authority (FINRA) have reportedly contacted some of the more than 200 companies that have found new life as crypto treasury companies this year. Many of these companies made a dramatic pivot to crypto (such as Justin Sun’s Tron treasury company, which previously sold theme park merchandise [I86]), and in some cases their stock prices moved substantially as they unveiled their new plans. The SEC and FINRA have noted, however, that in some of these cases, trading activity and stock prices spiked in the days prior to the announcement, leading the agencies to write to the firms to underscore that selectively disclosing material non-public information violates Regulation Fair Disclosure. Such communications often signal the beginning of an investigation or insider trading enforcement action, though it’s not clear if they do in this case.15
SEC Despite being almost completely neutered by the Trump administration, even today’s SEC can’t turn a blind eye to some business that’s simply too shady. The SEC and the Financial Industry Regulatory Authority (FINRA) have reportedly contacted some of the more than 200 companies that have found new life as crypto treasury companies this year. Many of these companies made a dramatic pivot to crypto (such as Justin Sun’s Tron treasury company, which previously sold theme park merchandise [I86]), and in some cases their stock prices moved substantially as they unveiled their new plans. The SEC and FINRA have noted, however, that in some of these cases, trading activity and stock prices spiked in the days prior to the announcement, leading the agencies to write to the firms to underscore that selectively disclosing material non-public information violates Regulation Fair Disclosure. Such communications often signal the beginning of an investigation or insider trading enforcement action, though it’s not clear if they do in this case.15
MeaningfulBits.eth
@MeaningfulBits@mastodon.social  ·  activity timestamp 2 days ago
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
Trump business interests Hot on the heels of New York Times reporting about questionable timing in deals involving the Trump family’s World Liberty Financial and Emirati firm MGX [I93], The Washington Post has published related reporting focused on MGX’s upcoming 15% stake in the TikTok deal brokered by the Trump administration. Senator Warren (D-MA), who had already demanded an ethics investigation into the World Liberty and MGX deals, has stated that the “shady Abu Dhabi firm” had “already cut deals to get sensitive American technology while enriching the Trump family’s crypto firm. The American people deserve to know if the President has struck another backdoor deal for this billionaire takeover of TikTok.” A White House official has said that MGX’s investment profiting the Trump family crypto project had no bearing on the MGX deals, so... case closed, I guess? Some have raised separate concerns about the TikTok deal, wondering if it’s a scheme to benefit the Trump allies who will take ownership of the firm. Vice President Vance’s recent statement that the firm was valued at only around $14 billion — a fraction of the $100 billion that one analyst previously estimated for the app — has led some to speculate that the company was intentionally undervalued to allow new investors to profit from an artificially large increase in value. Senator Wyden also commented on the arrangement, stating that “By steering TikTok to allies like Larry Ellison and a fund backed by the United
Trump business interests Hot on the heels of New York Times reporting about questionable timing in deals involving the Trump family’s World Liberty Financial and Emirati firm MGX [I93], The Washington Post has published related reporting focused on MGX’s upcoming 15% stake in the TikTok deal brokered by the Trump administration. Senator Warren (D-MA), who had already demanded an ethics investigation into the World Liberty and MGX deals, has stated that the “shady Abu Dhabi firm” had “already cut deals to get sensitive American technology while enriching the Trump family’s crypto firm. The American people deserve to know if the President has struck another backdoor deal for this billionaire takeover of TikTok.” A White House official has said that MGX’s investment profiting the Trump family crypto project had no bearing on the MGX deals, so... case closed, I guess? Some have raised separate concerns about the TikTok deal, wondering if it’s a scheme to benefit the Trump allies who will take ownership of the firm. Vice President Vance’s recent statement that the firm was valued at only around $14 billion — a fraction of the $100 billion that one analyst previously estimated for the app — has led some to speculate that the company was intentionally undervalued to allow new investors to profit from an artificially large increase in value. Senator Wyden also commented on the arrangement, stating that “By steering TikTok to allies like Larry Ellison and a fund backed by the United
Trump business interests Hot on the heels of New York Times reporting about questionable timing in deals involving the Trump family’s World Liberty Financial and Emirati firm MGX [I93], The Washington Post has published related reporting focused on MGX’s upcoming 15% stake in the TikTok deal brokered by the Trump administration. Senator Warren (D-MA), who had already demanded an ethics investigation into the World Liberty and MGX deals, has stated that the “shady Abu Dhabi firm” had “already cut deals to get sensitive American technology while enriching the Trump family’s crypto firm. The American people deserve to know if the President has struck another backdoor deal for this billionaire takeover of TikTok.” A White House official has said that MGX’s investment profiting the Trump family crypto project had no bearing on the MGX deals, so... case closed, I guess? Some have raised separate concerns about the TikTok deal, wondering if it’s a scheme to benefit the Trump allies who will take ownership of the firm. Vice President Vance’s recent statement that the firm was valued at only around $14 billion — a fraction of the $100 billion that one analyst previously estimated for the app — has led some to speculate that the company was intentionally undervalued to allow new investors to profit from an artificially large increase in value. Senator Wyden also commented on the arrangement, stating that “By steering TikTok to allies like Larry Ellison and a fund backed by the United
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
Speaking alongside Donald Trump Jr. at a conference in Singapore, World Liberty Financial co-founder and ALT5 Sigma chairman Zach Witkoff pitched allowing retail investors to invest in the Trump family’s real estate portfolio using crypto tokens. “What if I told you that you could, you know, go on an exchange and buy one token of Trump Tower Dubai?” he asked. He presented the idea as a boon to everyday people, stating that he, Donald Trump Jr., and everyone else involved with World Liberty believed real estate deals are unfairly “saved for an elite few to be able to invest in”. He failed to highlight that providing the President with a huge new pool of unsophisticated investors for his various real estate projects would likely benefit him far more than it would them.2
Speaking alongside Donald Trump Jr. at a conference in Singapore, World Liberty Financial co-founder and ALT5 Sigma chairman Zach Witkoff pitched allowing retail investors to invest in the Trump family’s real estate portfolio using crypto tokens. “What if I told you that you could, you know, go on an exchange and buy one token of Trump Tower Dubai?” he asked. He presented the idea as a boon to everyday people, stating that he, Donald Trump Jr., and everyone else involved with World Liberty believed real estate deals are unfairly “saved for an elite few to be able to invest in”. He failed to highlight that providing the President with a huge new pool of unsophisticated investors for his various real estate projects would likely benefit him far more than it would them.2
Speaking alongside Donald Trump Jr. at a conference in Singapore, World Liberty Financial co-founder and ALT5 Sigma chairman Zach Witkoff pitched allowing retail investors to invest in the Trump family’s real estate portfolio using crypto tokens. “What if I told you that you could, you know, go on an exchange and buy one token of Trump Tower Dubai?” he asked. He presented the idea as a boon to everyday people, stating that he, Donald Trump Jr., and everyone else involved with World Liberty believed real estate deals are unfairly “saved for an elite few to be able to invest in”. He failed to highlight that providing the President with a huge new pool of unsophisticated investors for his various real estate projects would likely benefit him far more than it would them.2
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
If realized, this would be the Trump-related second treasury firm with serious conflicts of interest in its management. ALT5 Sigma, a Nasdaq-listed company that pivoted to a WLFI treasury company, added several of World Liberty Financial’s executives to its board. A similar structure, where the treasury company shares leadership with the company that issues the token held in treasury, would suffer from similar issues: executives responsible for managing the treasury company would also stand to benefit from decisions that inflate the token’s value or promote its use, rather than from prudent management. This conflict was so blatant that the Nasdaq forced Eric Trump’s removal from the planned board of ALT5 Sigma, though other World Liberty executives were still allowed to take leadership and board positions [I92]. A $TRUMP treasury company would certainly benefit President Trump, whose businesses control 80% of the $TRUMP token supply and will require a liquid market to sell those holdings. If the same individuals are involved in both the token-issuing entity and the treasury company, they would effectively be negotiating with themselves — able to set whatever price they wish for the tokens the treasury purchases.
If realized, this would be the Trump-related second treasury firm with serious conflicts of interest in its management. ALT5 Sigma, a Nasdaq-listed company that pivoted to a WLFI treasury company, added several of World Liberty Financial’s executives to its board. A similar structure, where the treasury company shares leadership with the company that issues the token held in treasury, would suffer from similar issues: executives responsible for managing the treasury company would also stand to benefit from decisions that inflate the token’s value or promote its use, rather than from prudent management. This conflict was so blatant that the Nasdaq forced Eric Trump’s removal from the planned board of ALT5 Sigma, though other World Liberty executives were still allowed to take leadership and board positions [I92]. A $TRUMP treasury company would certainly benefit President Trump, whose businesses control 80% of the $TRUMP token supply and will require a liquid market to sell those holdings. If the same individuals are involved in both the token-issuing entity and the treasury company, they would effectively be negotiating with themselves — able to set whatever price they wish for the tokens the treasury purchases.
If realized, this would be the Trump-related second treasury firm with serious conflicts of interest in its management. ALT5 Sigma, a Nasdaq-listed company that pivoted to a WLFI treasury company, added several of World Liberty Financial’s executives to its board. A similar structure, where the treasury company shares leadership with the company that issues the token held in treasury, would suffer from similar issues: executives responsible for managing the treasury company would also stand to benefit from decisions that inflate the token’s value or promote its use, rather than from prudent management. This conflict was so blatant that the Nasdaq forced Eric Trump’s removal from the planned board of ALT5 Sigma, though other World Liberty executives were still allowed to take leadership and board positions [I92]. A $TRUMP treasury company would certainly benefit President Trump, whose businesses control 80% of the $TRUMP token supply and will require a liquid market to sell those holdings. If the same individuals are involved in both the token-issuing entity and the treasury company, they would effectively be negotiating with themselves — able to set whatever price they wish for the tokens the treasury purchases.
The company behind Donald Trump’s memecoin is reportedly seeking to raise $200 million to $1 billion for a $TRUMP treasury company.3 Bill Zanker and others involved with the memecoin side of Trump’s crypto businesses appear to hope this will revive the struggling token, which has fallen roughly 90% from its peak shortly after launch. Whether this plan proves more successful than his previous Trump-related venture remains to be seen — Zanker’s plan to launch a Trump memecoin-branded wallet was hastily abandoned after the Trump sons disavowed any involvement.
The company behind Donald Trump’s memecoin is reportedly seeking to raise $200 million to $1 billion for a $TRUMP treasury company.3 Bill Zanker and others involved with the memecoin side of Trump’s crypto businesses appear to hope this will revive the struggling token, which has fallen roughly 90% from its peak shortly after launch. Whether this plan proves more successful than his previous Trump-related venture remains to be seen — Zanker’s plan to launch a Trump memecoin-branded wallet was hastily abandoned after the Trump sons disavowed any involvement.
The company behind Donald Trump’s memecoin is reportedly seeking to raise $200 million to $1 billion for a $TRUMP treasury company.3 Bill Zanker and others involved with the memecoin side of Trump’s crypto businesses appear to hope this will revive the struggling token, which has fallen roughly 90% from its peak shortly after launch. Whether this plan proves more successful than his previous Trump-related venture remains to be seen — Zanker’s plan to launch a Trump memecoin-branded wallet was hastily abandoned after the Trump sons disavowed any involvement.
Bojan Land
@bojanland@mastodon.social  ·  activity timestamp 2 days ago
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
In the White House After rumors that the Trump administration was considering new candidates to replace Brian Quintenz as their nominee for CFTC chair [I93], the White House has withdrawn his nomination. Politico remarked on the “stunning turn of events for a nominee who once appeared to be a lock for confirmation”, writing that the incident was an “illustration of the new balance of power in Trump’s Washington” as the Winklevoss twins pressured President Trump to rescind his nomination.5 Quintenz has alleged that the Winklevosses might have “misled” Trump, publishing text messages with the brothers that he said he believed “make it clear what they were after from me, and what I refused to promise.” [I92] An anonymous source quoted by crypto outlet DL News, who they described as “familiar with discussions surrounding the CFTC nomination process”, stated, “They completely nuked him. They made a phone call. They were like, ‘This is not going to fly with us.’ And it was a very short trip from there to [Quintenz’s nomination] being killed.”6 The Winklevosses are not the only ones happy to see Quintenz out of the running, though. Dina Titus (D-NV), the co-chair of the Congressional Gaming Caucus who had called for an investigation into possible ethics violations by Quintenz pertaining to prediction markets [I90], responded to the news of the withdrawn nomination by writing, “Good. The CFTC deserves strong, independent leadership that will follow and enforce agency regulations.”7
In the White House After rumors that the Trump administration was considering new candidates to replace Brian Quintenz as their nominee for CFTC chair [I93], the White House has withdrawn his nomination. Politico remarked on the “stunning turn of events for a nominee who once appeared to be a lock for confirmation”, writing that the incident was an “illustration of the new balance of power in Trump’s Washington” as the Winklevoss twins pressured President Trump to rescind his nomination.5 Quintenz has alleged that the Winklevosses might have “misled” Trump, publishing text messages with the brothers that he said he believed “make it clear what they were after from me, and what I refused to promise.” [I92] An anonymous source quoted by crypto outlet DL News, who they described as “familiar with discussions surrounding the CFTC nomination process”, stated, “They completely nuked him. They made a phone call. They were like, ‘This is not going to fly with us.’ And it was a very short trip from there to [Quintenz’s nomination] being killed.”6 The Winklevosses are not the only ones happy to see Quintenz out of the running, though. Dina Titus (D-NV), the co-chair of the Congressional Gaming Caucus who had called for an investigation into possible ethics violations by Quintenz pertaining to prediction markets [I90], responded to the news of the withdrawn nomination by writing, “Good. The CFTC deserves strong, independent leadership that will follow and enforce agency regulations.”7
In the White House After rumors that the Trump administration was considering new candidates to replace Brian Quintenz as their nominee for CFTC chair [I93], the White House has withdrawn his nomination. Politico remarked on the “stunning turn of events for a nominee who once appeared to be a lock for confirmation”, writing that the incident was an “illustration of the new balance of power in Trump’s Washington” as the Winklevoss twins pressured President Trump to rescind his nomination.5 Quintenz has alleged that the Winklevosses might have “misled” Trump, publishing text messages with the brothers that he said he believed “make it clear what they were after from me, and what I refused to promise.” [I92] An anonymous source quoted by crypto outlet DL News, who they described as “familiar with discussions surrounding the CFTC nomination process”, stated, “They completely nuked him. They made a phone call. They were like, ‘This is not going to fly with us.’ And it was a very short trip from there to [Quintenz’s nomination] being killed.”6 The Winklevosses are not the only ones happy to see Quintenz out of the running, though. Dina Titus (D-NV), the co-chair of the Congressional Gaming Caucus who had called for an investigation into possible ethics violations by Quintenz pertaining to prediction markets [I90], responded to the news of the withdrawn nomination by writing, “Good. The CFTC deserves strong, independent leadership that will follow and enforce agency regulations.”7
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
In Congress The AFL-CIO, the largest federation of US unions, has slammed proposed crypto market structure legislation in a letter to the Senate Banking Committee. They write, “As drafted, this bill will enable the crypto industry to operate in wider and deeper ways in our financial system without sufficient oversight or meaningful safeguards.” They urge Senators to oppose the proposed bill, citing concerns that it will poorly regulate assets that may be incorporated into pension funds, and that it would increase financial instability. “This legislation provides the perfect environment for the next financial crisis to germinate,” they write.11 Whether anyone’s actually read the letter is unclear, as the government enters its second week of shutdown. With many congressional staff furloughed and legislative business largely stalled, the shutdown has thrown a wrench in the crypto industry’s hopes to get market structure legislation expeditiously passed into law. The industry had been pushing for quick passage before midterm campaigning begins and before a potentially less crypto-friendly Congress could make their preferred rules more challenging to implement [I84, 85].
In Congress The AFL-CIO, the largest federation of US unions, has slammed proposed crypto market structure legislation in a letter to the Senate Banking Committee. They write, “As drafted, this bill will enable the crypto industry to operate in wider and deeper ways in our financial system without sufficient oversight or meaningful safeguards.” They urge Senators to oppose the proposed bill, citing concerns that it will poorly regulate assets that may be incorporated into pension funds, and that it would increase financial instability. “This legislation provides the perfect environment for the next financial crisis to germinate,” they write.11 Whether anyone’s actually read the letter is unclear, as the government enters its second week of shutdown. With many congressional staff furloughed and legislative business largely stalled, the shutdown has thrown a wrench in the crypto industry’s hopes to get market structure legislation expeditiously passed into law. The industry had been pushing for quick passage before midterm campaigning begins and before a potentially less crypto-friendly Congress could make their preferred rules more challenging to implement [I84, 85].
In Congress The AFL-CIO, the largest federation of US unions, has slammed proposed crypto market structure legislation in a letter to the Senate Banking Committee. They write, “As drafted, this bill will enable the crypto industry to operate in wider and deeper ways in our financial system without sufficient oversight or meaningful safeguards.” They urge Senators to oppose the proposed bill, citing concerns that it will poorly regulate assets that may be incorporated into pension funds, and that it would increase financial instability. “This legislation provides the perfect environment for the next financial crisis to germinate,” they write.11 Whether anyone’s actually read the letter is unclear, as the government enters its second week of shutdown. With many congressional staff furloughed and legislative business largely stalled, the shutdown has thrown a wrench in the crypto industry’s hopes to get market structure legislation expeditiously passed into law. The industry had been pushing for quick passage before midterm campaigning begins and before a potentially less crypto-friendly Congress could make their preferred rules more challenging to implement [I84, 85].
Molly White
@molly0xfff@hachyderm.io  ·  activity timestamp 2 days ago
Another bizarre fly in the market structure ointment is that one of the top lobbyists behind the bill, Justin Slaughter, is married to an FTC Commissioner who President Trump tried to fire in March. Rebecca Slaughter has been fighting her dismissal, and the Supreme Court agreed to take up her case last month. The outcome of that case, which will determine Trump’s ability to fire heads of independent agencies like the FTC or crypto regulators like the SEC and CFTC, could dramatically affect support for the market structure bill. An anonymous source quoted by Decrypt said, “I think it’s ironic that one of the Trump admin’s more monarchical acts six months ago is going to potentially blow up one of their major legislative projects.”12
Another bizarre fly in the market structure ointment is that one of the top lobbyists behind the bill, Justin Slaughter, is married to an FTC Commissioner who President Trump tried to fire in March. Rebecca Slaughter has been fighting her dismissal, and the Supreme Court agreed to take up her case last month. The outcome of that case, which will determine Trump’s ability to fire heads of independent agencies like the FTC or crypto regulators like the SEC and CFTC, could dramatically affect support for the market structure bill. An anonymous source quoted by Decrypt said, “I think it’s ironic that one of the Trump admin’s more monarchical acts six months ago is going to potentially blow up one of their major legislative projects.”12
Another bizarre fly in the market structure ointment is that one of the top lobbyists behind the bill, Justin Slaughter, is married to an FTC Commissioner who President Trump tried to fire in March. Rebecca Slaughter has been fighting her dismissal, and the Supreme Court agreed to take up her case last month. The outcome of that case, which will determine Trump’s ability to fire heads of independent agencies like the FTC or crypto regulators like the SEC and CFTC, could dramatically affect support for the market structure bill. An anonymous source quoted by Decrypt said, “I think it’s ironic that one of the Trump admin’s more monarchical acts six months ago is going to potentially blow up one of their major legislative projects.”12
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