TRON founder Justin Sun has made a public call to back a U.S. presidential candidate favorable to cryptocurrencies. Sun emphasizes the importance of recognizing the cryptocurrency community—including companies and protocols—as key stakeholders in the political arena. He urges that their voices be heard and their interests safeguarded, highlighting the growing influence of digital currencies in […]
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Vanguard Appoints Crypto-Friendly Salim Ramji as CEO, Sparks Speculation on Bitcoin ETFs
Salim Ramji, a former executive at Blackrock renowned for his leadership in Ishares and Index Investments, and for overseeing the filing for Blackrock’s Ishares Bitcoin Trust, has been appointed the new CEO of Vanguard, signaling a potential shift in the asset management firm’s stance on cryptocurrencies. Ramji, set to replace Tim Buckley on July 8, […]
Bitcoin News
CEO Drops Bombshell: Trump Campaign Eyes Crypto-Friendly Policies
The intersection of cryptocurrency and politics has taken center stage as the potential return to power of former President Donald Trump emerges with a crypto-friendly agenda. The revelation comes from none other than David Bailey, CEO of Bitcoin Magazine, who disclosed his involvement in advising Trump’s campaign to adopt policies favorable to the crypto industry.
Bailey’s Bombshell: Advising Trump For A Pro-Crypto Future
Bailey, a prominent figure in the cryptocurrency community, shocked many when he unveiled his team’s role in guiding Trump’s campaign towards embracing Bitcoin and other digital assets. Bailey revealed that they had proposed a crypto-focused executive order to be signed on Trump’s first day back in office, signaling a significant departure from Trump’s previous skepticism towards cryptocurrencies.
It’s time for Bitcoin to elect the next President of the United States.
— David Bailey
.65m/btc is the floor (@DavidFBailey) May 11, 2024
Trump’s Crypto Evolution: From Skepticism To Embrace
Trump’s shifting stance on cryptocurrencies has been nothing short of remarkable. Once vocal about his disdain for digital assets, Trump now appears open to embracing them, contrasting sharply with President Biden’s purported lack of understanding of the crypto space. This evolution has ignited discussions about the potential impact of a Trump presidency on the crypto industry.
For the past month we have been working with the Trump campaign to develop their bitcoin and crypto policy agenda. We proposed a comprehensive executive order for President Trump to sign on day 1. I will be sharing those details soon. This week Trump took the first step, but…
— David Bailey
.65m/btc is the floor (@DavidFBailey) May 11, 2024
The Divide: Pro-Bitcoin Or Anti-Biden?
Bailey’s announcement has sparked debates within the crypto community, with some viewing it as a strategic move to ensure a more favorable regulatory environment for Bitcoin and cryptocurrencies.
However, others question the motives behind supporting Trump, citing concerns about his controversial tenure as president. Bailey himself clarified that their actions are aimed at defending Bitcoin rather than endorsing Trump personally.
Election Dynamics: Bitcoin As A Deciding Factor?
With the upcoming presidential elections looming, the role of Bitcoin in shaping political landscapes has never been more apparent. Bailey’s call to mobilize and ensure a pro-Bitcoin president raises questions about the growing influence of cryptocurrency in electoral politics.
Will Bitcoin enthusiasts unite to sway the outcome of the elections in favor of a crypto-friendly candidate?
Trump: Second Term And Regulatory Outlook
Geoff Kendrick, head of FX Research and Digital Assets Research at Standard Chartered Bank, weighed in on the potential implications of a Trump second term for the cryptocurrency industry.
Kendrick believes that a Trump presidency would likely result in a more supportive regulatory environment, offering hope to crypto advocates amidst ongoing regulatory uncertainties.
How This Will Impact Crypto Prices
The news of Trump’s potential support for cryptocurrencies has stirred both excitement and caution in the market. While some see it as a promising sign for increased adoption and investment, others remain wary of the potential volatility and uncertainty associated with Trump’s involvement.
The impact on crypto prices will depend on factors like regulatory clarity and broader market sentiment, making it essential for investors to stay informed and adaptable in the face of evolving developments.
Featured image from AP Photo/Jeff Dean, chart from TradingView
Luetkemeyer’s Exit Sets Up Potentially Crypto-Friendly Turn in House Banking Committee
Rep. Blaine Luetkemeyer’s retirement at the end of 2024 opens the door for a new era in cryptocurrency regulation, with Rep. French Hill (R-Ark.) poised to lead the charge in the House Financial Services Committee.
Shift in House Financial Services Committee Leadership Could Lead to More Progressive Crypto Legislation
In a move that could impact the future of cryptocurrency regulation, U.S. Rep. Blaine Luetkemeyer (R-Mo.) announced his retirement at the end of 2024. This decision leaves a potential opening for a more crypto-friendly chairmanship of the House Financial Services Committee, following the departure of the current chair, Patrick McHenry, in early 2025 when his term ends.
— Blaine Luetkemeyer (@RepBlaine) January 4, 2024
Luetkemeyer, who currently holds a position on the House Financial Services Committee, had expressed interest in running for McHenry’s chairmanship. His retirement opens the door for Rep. French Hill (R-Ark.), known for leading the committee’s digital assets panel and his involvement in crypto-related legislation, especially concerning stablecoins. Hill, the vice-chairman of the House Financial Services Committee, has stated his intent to bring two crypto regulation bills to the floor and pass them in early 2024.
Ron Hammond, Director of Government Relations at the Blockchain Association, noted Hill’s bipartisan approach and his focus on cryptocurrency. While Luetkemeyer wasn’t anti-crypto, Hammond believes that cryptocurrency would not have been a high priority under his chairmanship, unlike under Hill or McHenry.
Rep. Hill seems to genuinely believe in crypto as a new viable asset class, and its importance in the future. In a Forbes interview, when asked what it means that there are numerous pieces of important upcoming crypto specific legislation, had this to say:
I think it says that members of Congress recognize that Web3 innovation, blockchain innovation, the earliest stage of innovation here is growing; that there’s a demand among institutional investors and consumers. If we don’t facilitate that framework, then you’re going to see that engagement move offshore.
As Luetkemeyer and McHenry step down, the GOP Steering Committee will consider several factors, including legislative performance and fundraising capabilities, to decide on their replacements in 2025.
Rep. Hill is seen as a top contender for the House Financial Services chair position. Other potential candidates include Rep. Bill Huizenga (R-Mich.) and Rep. Andy Barr (R-Ky.), with their chances contingent on the Republicans retaining control of the House after the upcoming elections.
Do you think more US politicians will warm up to crypto? Share your thoughts and opinions about this subject in the comments section below.
Executives Of Crypto-Friendly Bank Silvergate Step Down As Lawsuits, Liquidation Rages On
In a recent turn of events, multiple executives of the embattled California-based cryptocurrency bank Silvergate Capital have announced that they will be stepping away from their roles at the bank.
The announcement comes as the bank remains deep in the throes of liquidation while battling multiple lawsuits linked to its demise.
Top Executives Set to Step Down
Silvergate Capital Corp announced on Tuesday, August 16, the departure of some of its primary employees working in executive leadership positions in its company. The executives leaving include Chief Financial Officer, Antonia Martino, Chief Legal Officer, John Bonino, and CEO, Alan Lane.
Lane and the company’s Chief Legal Officer will be departing on Tuesday, August 16, and according to a financial filing delivered to the United States Securities and Exchange Commission (SEC), Silvergate’s Chief Legal Officer is set to step down on September 30.
The executives’ decision to depart from Silvergate follows the bank’s announcement in March to shut down operations and liquidate its assets. Lane has served as the CEO of Silver Capital Corp and Silvergate Bank since 2008 and played a pivotal role in Silvergate’s development and growth.
In the absence of a CEO, Silvergate has replaced Lane with Silvergate’s Chief Transition Officer, Kathleen M. Fraher. It has also made Andrew Surry, Silvergate’s Accounting Officer, the principal financial offer in the absence of Martino.
Silvergate stated in the filing to the SEC that it will provide each executive severance benefits previously offered to employees laid off through the bank’s liquidation process.
Earlier this year in January, Silvergate laid off over 180 employees, cutting its workforce by 40%. Again, in May, the bank laid off over 250 workers, leaving a group of about 80 to oversee its liquidation and termination process.
The San-Diego-based bank said in a report that it plans to significantly reduce the number of employees in its company and manage its operations using a skeleton crew.
Silvergate Enveloped in Lawsuits and Liquidations
In November 2022, Silvergate collapsed following the FTX failure and embroilment in fraud. Silvergate, which served as one of the two major banks for cryptocurrency companies in the industry, decided to officially shut down all operations and start a liquidation process.
As a result, stocks plunged by 36% and the bank suffered massive customer withdrawals. Toward the end of Q3, Silvergate’s total deposits from crypto customers plummeted by 68%, declining to .8 billion from an astonishing .9 billion.
According to reports, FTX was one of Silvergate’s major customers and it was revealed that Silvergate held about billion in deposits from FTX at the time of its failure. Silvergate’s affiliation with FTX has caused severe financial damage to the bank’s reputation and put it on the radar of the regulatory authorities in the United States.
Silvergate was also mentioned in multiple lawsuits due to its association with the bankrupt FTX and allegations of participation in FTX’s fraudulent activities.
Robert Kennedy Jr Slams SEC for Protecting Banks Instead of American People — Calls for Crypto-Friendly Commissioners
U.S. presidential candidate Robert F. Kennedy Jr. says he does not want anti-crypto people on the Securities and Exchange Commission (SEC). He also slammed the securities regulator for protecting banks rather than the American people. “What they’re doing is obscure, it’s not transparent, and it’s not bringing transparency to our system,” said the presidential hopeful.
RFK Jr on SEC, Bitcoin, Crypto Regulation
U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) expressed admiration for bitcoin while criticizing the regulatory approach of the Securities and Exchange Commission (SEC) towards the cryptocurrency industry in an interview with Thestreet, published Friday. RFK Jr. is a nephew of former U.S. President John F. Kennedy and a son of former U.S. Attorney General Robert F. Kennedy.
Sharing his intention to nominate crypto-friendly individuals to the SEC should he be elected president, Kennedy stated:
I don’t want people on the SEC commission who are anti-crypto. At most, they should be neutral, and we should have people on there who are from the crypto community.
Multiple people have criticized the SEC, under Chair Gary Gensler, for taking an enforcement-centric approach to regulating the crypto space. In December last year, Gensler said the securities watchdog will use all available tools to crack down on uncompliant crypto firms. However, many have complained that the rules are so unclear that it is very difficult to ensure compliance. Last month, the Nasdaq-listed crypto exchange Coinbase filed legal action against the SEC over a lack of regulatory clarity. In the same month, U.S. Congressman Warren Davidson (R-OH) revealed that he is introducing legislation to remove the chairman of the SEC “to correct a long series of abuses.”
Kennedy stressed: “SEC’s function now is not to protect the American people, but it’s to protect the banks — particularly the central banks and those interests.” He added:
What they’re doing is obscure, it’s not transparent, and it’s not bringing transparency to our system.
RFK Jr Highlights Benefits of Bitcoin
The presidential hopeful has been a strong supporter of bitcoin and his campaign accepts BTC donations. Kennedy explained:
One of the fundaments of Bitcoin is that you can trust it. And nobody can manipulate it. There’s no human being that can manipulate it.
“What happens with Bitcoin is very, very democratic. It’s all decided by all the miners in a democratic way and by algorithms that can’t be manipulated,” Kennedy continued. “It’s the perfect base currency, because there’s a finite amount of it… The Bitcoin that exists on the Earth is infinitely divisible, so it’s kind of the perfect currency — it has an intrinsic value and it gives people a way out.”
Do you agree with Robert F. Kennedy Jr.? Let us know in the comments section below.
Balaji Srinivasan: ‘Giant Robot’ of Crypto-Friendly States Needed to Battle ‘Giant Monster’ of US Gov., Explains Why He Made Bitcoin Bet
Tech entrepreneur, angel investor, and author of The Network State, Balaji Srinivasan, says a proverbial “giant robot” of supportive governing bodies and crypto proponents is needed to do battle with the “giant monster” of the U.S. federal government. The former CTO of Coinbase also said he will issue an update on his ongoing million-dollar bitcoin bet “soon,” noting that “the reason I did that was to draw attention to this crisis.”
Balaji Envisions Fall of Western Fiat, Promotes In-Person Meetups to Build Trust
Speaking remotely at the first in-person ETHGlobal Pragma Tokyo Summit on April 13, tech entrepreneur, author, and bitcoin proponent Balaji Srinivasan emphasized to attendees that difficult economic and societal changes are coming, but he is also optimistic about the tools crypto and the larger community focused on “network states,” already provide to weather the storm.
Asked by Bitcoin.com News what the next practical steps are on the road to setting up network states and what work is being done, Srinivasan emphasized that the fiat crisis will draw people to decentralization due to a “deficit of trust in the world,” but noted that some degree of trust is still required for society to work at a primary level, elaborating:
The decentralization is coming and then we need re-centralization, but consensual re-centralization [of] the other side into these small clusters. I recognize that’s thinking ahead, but we need to think ahead because these changes may come very quickly.
The author noted he is working on a follow-up to his book The Network State, and creating videos to go along with it, because “a lot of those things that I thought were going to come in ten years might be coming in a few years.”
“I may fund, you know, more DAOs and network states and so on, but a lot of that stuff is kind of happening in parallel. I’ve been gratified to see that happening,” Srinivasan noted. “And the biggest thing about it is just building high-trust communities, as hard as that is, with physical meet-ups. Where people know each other and know each other in person. And that’s the seed for rebuilding things after what follows.”
Speaking of the draconian physical lockdowns of recent years, said to be medical in nature by the mainstream media, the angel investor emphasized that “the network state is in part a recipe for a ‘new normal.’” Later in the Q&A session, he explained:
Once we have digital lockdown, which is coming, and that’s capital controls, wage controls, price controls, CBDCs that get rolled out [to] try to block the exits. That’s actually easier in some ways to roll out than physical lockdown. Digital lockdown — the alternative to that … is freedom, is cryptocurrency, is bitcoin, and I believe it is what you guys are also building.
He emphasized to the room: “What I think you guys should be doing is thinking about building high-trust societies with physical meetups where you can physically verify people,” going on to lay out a vision of the near future:
In this post-fiat crisis kind of world where AI has risen, where China has risen, where fiat has collapsed, where it’s a low-trust society, you need to cryptographically verify all kinds of things — the identity of somebody on the other side, the fact that they actually have the money they say they do. Everything that you’re doing in crypto becomes much more valuable, if you can survive.
Srinivasan said the shift will go from people thinking Web3 is “this stupid thing” in an adversarial environment to where it becomes an “absolutely necessary thing.”
Deals With ‘Smart People of the State’ — Building the Giant Crypto Robot, and Making Bitcoin Bets
Addressing American politics repeatedly in his presentation and in the Q&A session after, Srinivasan said that “the farther you are away physically, financially, and socially from Blue America the better off you are.” He noted that many people are migrating to areas perceived as crypto-friendly and pro-freedom, like Latin America and Republican states in the U.S. Speaking to one summit participant he noted:
“The closer you are to Blue America [Democratic Party-controlled regions] the more the level of state failure … I don’t think all states fail … I think the red states might turn out to be like Eastern Europe or the Baltics.” He went on:
What I think the next step is, is to not simply think of it as just the state versus the network … Another way is the network working with smart people of the state, like Nayib Bukele, like Dubai … red states and purple states [in the U.S.].
“Find jurisdictions like El Salvador. Find jurisdictions like Palau. Find places where the state is actually supporting the network. Do deals with them … And then you’ve got state support and you’ve got, you know, a government in your corner.” The author brought up the Hollywood film Pacific Rim, where he noted that humans were unable to fight a massive monster that had emerged from the sea:
So right now, this giant monster has arisen out of the ocean and it is the U.S. Federal Government, and it is attacking all of the crypto banks, it is attacking all the tech banks … it’s attacking every single piece of the future and it’s just going all-out on us.
He continued: “Against the government you cannot fight as an individual or even as a company. To beat this gigantic monster you need a giant robot, a good robot of your own. You need your own government … you need the good states fighting the bad states … now it’s sovereign versus sovereign.”
While many proponents of bitcoin and crypto freedom hold the view there are no such things as “good states,” traditionally understood, as even taxation is a form of theft, Srinivasan nonetheless says that the average individual needs the “HP” and power of government-tier action.
Closing his appearance at Pragma Tokyo, and explaining his current M bitcoin bet, the tech entrepreneur explained to the summit: “I’ll have an update on the bet also soon … I think it’ll be satisfying of course for everybody. The reason I did that was to draw attention to this crisis.”
What are your thoughts on Balaji Srinivasan’s visions of network states and the current economic crisis and its ramifications for crypto? Let us know in the comments section below.
Circle Partners With Cross River Bank, Handful of US ‘Crypto-Friendly’ Banks Remain; Okcoin Suspends USD Deposits
Circle Financial, the issuer of the stablecoin USDC, is partnering with Cross River Bank after its former settlement partner, Signature Bank, was closed by New York regulators, according to a statement from CEO Jeremy Allaire. “The 1:1 redeemability of all USDC in circulation is of paramount importance to Circle,” Allaire emphasized.
Crypto Firms Scramble for New Banking Partners in the United States
Circle Financial has announced a new banking partner following the depegging of its stablecoin, usd coin (USDC), from the U.S. dollar over the weekend. CEO Jeremy Allaire said in a statement on Sunday evening that more than billion in funds that were previously stuck in Silicon Valley Bank (SVB) would now be accessible thanks to the federal bailout announced by the U.S. central bank and Treasury. USDC regained parity with the U.S. dollar, or came very close to it, roughly 45 minutes after the U.S. Federal Reserve announced that all depositors from SVB and Signature Bank would be made whole.
Circle CEO Jeremy Allaire’s announcement said that the company is working with a new banking partner and that Circle’s USDC operations will open for business on Monday morning, with new automated settlement via Cross River Bank. Despite the closures of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank, some U.S. crypto businesses still have banking partners, according to Larry Cermak, head of research and data at The Block. He noted that there are only a small number of so-called crypto-friendly banks available today.
Cermak listed a number of banks that are considered friendly to the crypto industry, including Customers Bank, First Foundation Bank, Sutton Bank, Evolve Bank & Trust, Bankprov, Quontic Bank, and Cross River Bank. There are rumors that Coinbase, a popular crypto exchange, is also leveraging Cross River Bank as a banking partner. However, the situation has not been smooth for everyone, as Okcoin’s U.S. exchange had to suspend U.S. dollar deposits and over-the-counter services due to issues with its former primary USD bank, Signature Bank. Okcoin President Hong Fang confirmed the suspension and explained that the exchange was working to find a new banking partner.
Okcoin has suspended U.S. dollar ACH and wire transfers, but Okcoin President Hong Fang has assured the public that “all corporate and customer funds are safe.” The scramble for new banking partners by crypto companies comes after the Federal Deposit Insurance Corporation (FDIC) transformed Signature Bank and Silicon Valley Bank (SVB) into bridge banks. On Monday morning, U.S. president Joe Biden reassured the nation that America’s “banking system is safe” and that “your deposits will be there when you need them.”
Meanwhile, reports say that trading has been halted for multiple U.S. banks when stocks opened on Monday.
What do you think the future holds for cryptocurrency companies and their banking partnerships in the ever-evolving financial landscape? Share your thoughts in the comments section below.
Silvergate Bites The Dust, Down 35% As Crypto-Friendly Bank Ceases Operations
Silvergate Capital Corporation, the holding company for crypto-friendly Silvergate Bank, announced on Wednesday its decision to cease operations and voluntarily liquidate its bank.
Shares of Silvergate (SI) have taken a significant hit, trading down over 35% on the Nasdaq in the last seven days, in light of the recent regulatory approach by authorities to the industry.
Shares of Silvergate Bank, under the ticker SI, have lost more than 5% of their value in the last 24 hours, trapped in a sideways price action between .9 and .9 per share, following the crypto crackdown by the Securities and Exchange Commission (SEC) to over-regulate the industry.
The digital asset bank has confirmed investors’ doubts about its viability after announcing on Friday that it had made a “risk-based decision” to shut down the Silvergate Exchange Network, leading to the decision to cease operations. Silvergate states:
This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance
Silvergate Shares Are Doomed For The Worst
Silvergate shares fell more than 2% on Friday after the opening bell on the Nasdaq Stock Market, after closing 0.9% above the .70 mark.
Moreover, on Thursday, SI shares suffered what investors feared after the public feuds between the SEC and the crypto-friendly bank. Falling to a record low as they ended the trading day down more than 95% from the all-time high of 0 per share in November 2021.
Previously, Silvergate suffered breakups with former major partners after the warning that the bank emitted from the ongoing concerts of the ability to continue its operations, which caused the sale of additional debt at a loss; Coinbase Global and Galaxy Digital dropped the company as their banking partners, according to a Reuters report.
In addition, stablecoin issuer Paxos, the former issuer of Binance’s BUSD, and Circle, the issuer of USDC stablecoin, suspended their partnership with the bank and exchanged Gemini, Cboe’s, and Bitstamp.
After battling to stay afloat, SI shares have been hit by the company’s disclosed problems, with the genesis being the FTX case, where investors withdrew more than billion in deposits from the bank in the last months of 2022.
SI shares have closed the trading day on the Nasdaq at .91, with no hope for it to recover after the announcement by Silvergate Corporation.
Feature image from Unsplash, chart from TradingView.com.
Crypto-Friendly Bank Silvergate Suspends Dividend Payouts
Silvergate, a California-based crypto bank whose shares are listed on the New York Stock Exchange, is suspending dividend payout to remain highly liquid as the digital currency market tries to pull itself out of the liquidity crisis of 2022.
In a press release on January 27, Silvergate, a state-chartered bank that went public in 2019, said it would suspend dividend payout on its “5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A” to preserve capital.
Focus On Liquidity
The crypto bank said its primary focus is maintaining a highly liquid balance sheet with a strong capital position. This will give it an advantage as it navigates the high volatility in crypto. The move means the crypto bank will have more capital than customers’ digital assets.
The bank’s board of directors will re-evaluate the payments of quarterly dividends depending on market conditions evolve.
There was no official comment from any of Silvergate’s executives.
The high volatility in crypto saw prices peak at around ,000 in November 2021 before plunging to ,300 in November 2022.
Losses were due to several macroeconomic factors and crypto-related events. The shift in monetary policy saw central banks hike interest rates to tame runaway inflation.
In return, this change saw capital flow in the other direction, away from what investors would ordinarily label as “risky”, including crypto and stocks, to safe havens like bonds and gold.
Silvergate Forced To Take Bold Steps
The collapse of several CeFi platforms, first 3AC, Voyager, and BlockFi, before FTX said it was halting withdrawals and eventually filing for Chapter 11 bankruptcy protection, broke the markets. In the aftermath, crypto assets capitulated, with Bitcoin sinking to 2022 lows.
At one time, FTX was valued at over billion. It later emerged that Sam Bankman-Fried misappropriated clients’ funds through the exchange’s related trading firm, Alameda Research.
The risk to safety from investors spilled over to Silvergate, stretching the crypto bank. On January 17, Silvergate posted its financial statements with the United States Securities and Exchange Commission (SEC), saying they posted a loss of 9 million in 2022. This was a sharp reversal in fortunes considering the bank made .5 million in profits in 2021.
Early this month, Silvergate clients withdrew almost billion of their crypto deposits. Reports indicate that roughly 66% of the bank’s clients pulled out their coins in the last three months of the year. Subsequently, the bank was forced to sell .2 billion of its assets to cover costs and remain liquid amid the industry’s rapid changes.