Trump Day 3: No BTC Reserve, but Crypto Pardon Begging Abounds

As Donald Trump’s second term progresses, Bitcoin enthusiasts are left hanging on the promise of a “strategic BTC reserve,” while the crypto world buzzes with $TRUMP memecoin drama, pardon requests, and a notable rise in USDC.

• No progress on Trump’s BTC reserve
• $TRUMP memecoin value declines
• Democrats push for Trump memecoin investigation
• Justin Sun and Vitalik Buterin seek pardons
• USDC sees $5 billion market cap growth

Three days into Trump’s second term, and the long-awaited “strategic BTC reserve” (SBR)—a government-held stockpile of Bitcoin intended to bolster national economic stability—remains a no-show. Bitcoin maximalists, who had hoped for a governmental embrace of the world’s first cryptocurrency, are growing increasingly antsy. As the SBR continues to be a pipe dream, Geoff Kendrick, the head of digital assets research at Standard Chartered, reminds us, “Hope is not a strategy… When hope dies, digital asset prices will fall 10-20%.” This stark warning underlines the fragile optimism that fuels the crypto markets.

On the flip side, Trump’s foray into the memecoin world with $TRUMP has been anything but a smashing success. Touted with much fanfare, the memecoin has since tanked to just above $37, a far cry from its peak. As investor Mark Cuban bluntly put it, “Mint it, print it, sell it F*ck it,” perfectly capturing the wild west nature of memecoin culture. Yet, Cuban also challenges the token’s model, suggesting, “If it’s a grift. Make it a grift to benefit all Americans.” This sentiment echoes a wider critique of memecoins—often little more than speculative bubbles with questionable utility. The current value and performance of $TRUMP memecoin reflect this volatility.

The political arena isn’t immune to the crypto craze. Democrats are now pressuring Republicans to investigate potential conflicts of interest surrounding Trump’s memecoin venture. The heat is on for the House Financial Services Committee and Oversight Committees to delve into the ethical quagmire of a sitting president dabbling in digital assets.

In the midst of this political and legal drama, crypto luminaries are making their moves. Justin Sun’s involvement with World Liberty Financial and potential pardon requests have become focal points. The founder of the Tron blockchain, has thrown a hefty $30 million into Trump’s family-run decentralized finance (DeFi) product, World Liberty Financial (WLF). DeFi, a blockchain-based form of finance that bypasses traditional financial intermediaries, could be Sun’s ticket to a presidential pardon. With the SEC breathing down his neck for alleged securities fraud, Sun’s strategic investment highlights the murky intersection of finance and politics in the digital age.

Not to be outdone, Ethereum co-founder Vitalik Buterin is advocating for pardons for Ethereum developers caught in legal crosshairs, particularly those associated with Tornado Cash, a service that helps anonymize cryptocurrency transactions. Buterin’s rallying cry, “No man left behind,” underscores the community’s desire to shield its own from regulatory overreach and ensure the continued development of decentralized technologies.

Amidst this political and legal drama, the stablecoin USDC has quietly been making gains. With a $5 billion increase in its market cap, USDC has benefited from the frenzy around Trump-related tokens, particularly on the Solana network. This growth suggests that while memecoins may grab headlines, stablecoins like USDC—pegged to the US dollar—provide a more stable foundation for crypto transactions, serving as a hedge against the volatility of speculative assets.

The House Financial Services Committee isn’t sitting idly by. They’re gearing up to tackle regulatory issues surrounding digital assets, from the potential misuse of regulatory authority to the Federal Reserve’s research into central bank digital currencies (CBDCs). These discussions will be crucial in shaping the future landscape of cryptocurrency regulation, balancing innovation with consumer protection.

As the crypto world navigates these turbulent waters, it’s clear that the intersection of politics and digital assets will continue to create both opportunities and challenges. Whether it’s the unrealized promise of a BTC reserve, the speculative bubble of memecoins, or the strategic maneuvers for pardons, the story of cryptocurrency under Trump’s second term is far from over. For more detailed coverage on these developments, visit Trump Day 3: No BTC reserve, but crypto pardon begging galore.

Key Takeaways and Questions

• What is the current status of Trump’s promised “strategic BTC reserve”?

  The strategic BTC reserve, a government-held stockpile of Bitcoin, has not been established by the third day of Trump’s second term.

• How has the $TRUMP memecoin performed since its launch?

  The $TRUMP memecoin has declined significantly, now trading just above $37, despite initial promotion by Trump’s social media accounts.

• What actions are Democrats taking regarding Trump’s involvement with memecoins?

  Democrats are pressuring Republicans to investigate potential conflicts of interest related to Trump’s involvement with memecoins, with specific calls for action from the House Financial Services and Oversight Committees.

• Why might Justin Sun be seeking a pardon from Trump?

  Justin Sun, founder of the Tron blockchain, is under investigation for alleged securities fraud and may be seeking a pardon from Trump due to his significant investments in Trump’s family-run DeFi product, World Liberty Financial.

• What is the significance of USDC’s growth in relation to Trump’s memecoins?

  USDC, a stablecoin pegged to the US dollar, has seen its market cap increase by $5 billion, primarily due to increased activity on the Solana network where Trump’s memecoins were issued.

• What are the regulatory concerns mentioned by the House Financial Services Committee?

  The Committee plans to address the misuse of regulatory authority to prevent digital asset firms from accessing banking services and to monitor the Federal Reserve’s research into central bank digital currencies.