Author: 636Marx
As a businessman and real estate mogul-turned-president, no one understands finding 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 transaction, with President Trump currently engaged in a full-stock acquisition of a digital currency exchange. Earlier this year, Trump spoke about his family's digital currency project WLFI (World Liberty Financial), using the words: "It's very young and very growing."
These seemingly unrelated events involve the US President, regulatory agencies, and political intersections. And after CZ's release from prison, Binance has begun to quietly withdraw from the US market - the winds are changing, and let the new hegemon replace Binance!
The Advancing President, Expanding Digital Currency into Politics
According to reports, the company behind Truth Social, the Trump Media and Technology Group (TMTG), is in advanced negotiations to acquire the digital currency trading platform Bakkt, which is owned by Intercontinental Exchange (ICE). Although Bakkt has been unprofitable since its launch, the acquisition marks TMTG's expansion from social media into the digital currency realm.
The Financial Times reported that the acquisition negotiations indicate a full-stock transaction using TMTG's $6 billion equity valuation. Bakkt's stock price, with a market capitalization slightly above $150 million, soared 162% after the news broke. TMTG's valuation has largely been driven by its association with former President Trump, and it has also risen by 16.7%.
Trump's previous proposals, including the establishment of a "Bitcoin and Digital Currency Presidential Advisory Council," suggest that the US may be poised to establish a more comprehensive regulatory framework for digital assets. If Bakkt becomes part of TMTG, it could take a leadership role in the current digital currency exchange regulation, especially as Trump prepares for a second term.
Coinbase CEO Armstrong Meets with Trump
According to reports, their discussion primarily focused on regulatory and policy issues, as Trump is currently assembling his government and outlining his attitude towards financial innovation. Armstrong publicly expressed support for Trump's appointment of Peirce as SEC Chair, as Peirce is not only a loyal digital currency supporter but also a close friend of Armstrong.
Armstrong has traditionally maintained political neutrality, but has recently taken a stance, advocating for policies and candidates that support digital currencies. In 2024, Coinbase and the political action committee (PAC) supported by Armstrong invested around $46 million to support activities promoting digital currency-friendly regulation.
The shift came after Coinbase's legal conflict with the US SEC in 2023, when the SEC accused Coinbase of offering unregistered securities.
While the details of the meeting remain confidential, Armstrong's attendance signifies that digital currencies are increasingly seen as a key economic and political issue. Trump's hints at regulatory reform, including replacing SEC Chair Gensler, have been welcomed by many digital currency heavyweights.
Binance Withdraws from the US Market, Losing its Dominance
Meanwhile, the world's largest digital currency exchange, Binance, continues to lose ground in the US market due to increasing regulation.
Binance is facing growing scrutiny from US regulatory agencies, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), which have accused the exchange of operating without proper registration and offering unregulated securities. In June 2023, the SEC filed a lawsuit against Binance, alleging improper handling of client funds and violations of securities laws.
This scrutiny has led to a series of defensive measures by Binance, including the loss of partnerships with payment processors and banking institutions. Recently, Binance announced that it will no longer support certain trading pairs in the US.
As Binance's business in the US faces difficulties, it is expanding in other regions, such as the Middle East, Europe, and Asia. While Binance continues to innovate, launching new trading pairs and services to maintain its global competitive edge, its footprint in the US is steadily shrinking, and its market position is further eroded due to legal constraints.
From the constant encroachment of competitors, Binance is in a defensive position. In an industry where a year is like a day in the crypto world, it cannot escape its downfall. Perhaps returning to Hong Kong is the way to break the deadlock, just like TikTok, by embracing growth and leaving behind prejudices. Throughout history, competing with the people for profit has never been a desirable environment.
