Author: 636Marx

As a president and businessman with a background in real estate, no one understands how to discover new business opportunities better than Trump. CNN Politics confirmed today that Trump will meet with the CEO of Coinbase. The Financial Times also revealed a deal, indicating that President Trump is in the process of a full stock acquisition of a cryptocurrency exchange. Earlier this year, Trump spoke about his family's cryptocurrency project WLFI (World Liberty Financial), using the words: "It's very young and very growing."

These seemingly unrelated matters involve the President of the United States, regulatory agencies, and political intersections. Additionally, after Zhao Changpeng's release from prison, Binance has begun to quietly withdraw from the U.S. market—let the new dominant player replace Binance as the winds change!

The Advancing President: Expanding into Political Cryptocurrency

According to reports, Trump Media & Technology Group (TMTG), the company behind Truth Social, is in advanced negotiations to acquire Bakkt, a cryptocurrency trading platform under Intercontinental Exchange (ICE). Although Bakkt has struggled with profitability since its launch, the acquisition signifies TMTG's expansion from social media into the cryptocurrency sector.

The Financial Times reported that the acquisition negotiations indicate a full stock transaction utilizing TMTG's $6 billion equity valuation. Bakkt's stock price, which has a market capitalization slightly above $150 million, surged 162% after the news broke. TMTG's valuation, largely driven by its association with former President Trump, also rose by 16.7%. Upon completion of the acquisition, Trump will gain access to Bakkt's infrastructure and regulatory licenses for cryptocurrency exchanges.

Trump's previous proposals included establishing a "Bitcoin and Digital Currency Presidential Advisory Council," suggesting that the U.S. may be moving towards a more comprehensive regulatory framework for digital assets. If Bakkt becomes part of TMTG, it could play a leading role in the current regulatory landscape for cryptocurrency exchanges, especially as Trump prepares for a second term.

Coinbase CEO Armstrong Meets Trump

Reports indicate that their discussions primarily focused on regulatory and policy issues, as Trump is forming his government and outlining his stance on financial innovation. Armstrong publicly expressed support for Trump's appointment of Hester Peirce as SEC Chair, noting that Peirce is not only a loyal supporter of cryptocurrency but also a friend of Armstrong's.

Armstrong has traditionally maintained political neutrality but has recently taken a stand advocating for policies and candidates that support cryptocurrency. In 2024, Coinbase and the political action committee (PAC) supported by Armstrong invested approximately $46 million to support activities favoring cryptocurrency-friendly regulations.

The shift occurred after Coinbase's legal conflict with the U.S. SEC, which in 2023 accused Coinbase of offering unregistered securities.

While the details of the meeting remain confidential, Armstrong's attendance signifies that cryptocurrency is increasingly viewed as a key economic and political issue. Trump's hints at regulatory reform, including replacing SEC Chair Gary Gensler, have been welcomed by many leaders in the cryptocurrency space.

Binance Exits the U.S. Market, Losing Dominance

Meanwhile, Binance, the world's largest cryptocurrency exchange, continues to lose ground in the U.S. market due to increasing regulatory scrutiny.

Binance faces growing scrutiny from U.S. regulators, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), which have accused it of operating without proper registration and offering unregulated securities. In June 2023, the SEC filed a lawsuit against Binance, accusing the exchange of mishandling customer funds and violating securities laws.

This scrutiny has led to a series of defensive measures from Binance, including losing partnerships with payment processors and banking institutions. Recently, Binance announced it would no longer support certain trading pairs in the U.S.

As Binance's operations in the U.S. struggle, it is focusing on markets in the Middle East, Europe, and Asia. Although Binance continues to innovate by launching new trading pairs and services to maintain its global competitive edge, its footprint in the U.S. is shrinking, and its market position is further eroded due to legal restrictions.

With competitors continually encroaching, Binance finds itself in a defensive position. In an industry where a year in the real world equates to a day in the crypto world, it cannot escape decline. Perhaps returning to Hong Kong is the way out, just like TikTok, shedding biases to embrace growth. Throughout history, competing with the public for profit has never been a healthy environment worth cherishing.