Crypto Industry Gets Quick Return on Trump Investment After Pouring Millions Into Campaign

Crypto Executives, Companies and Investors are gotting an early return on their Investment in Donald Trump.

After Pouring Tens of Millions of Dollars Into Trump’s 2024 Campaign for President, The Crypto Industry has been paid back handsomely during his first week in the white house.

“I don’t think they could have developed a better than they just got in the past 48 hours,” Benchmark’s Bill Gurley, Known For An Early Bet on UberTold CNBC’s “Closing Bell” on Friday. Gurley said that while tech’s newfound influence in washington may be harmful to some parts of the Startup World, “It’s obvious good for crypto.”

The Industry’s Support for Trump Was Built on the Republican Leader’s Promise to Stop the Government’s Crackdown on Crypto and Implement Regulation Favorable to Thws Chnologies while Easing Restrictions on Investments in Cryptocurrency.

Industry Heavyweights Like Coinbase CEO Brian Armstrong and Binance Ceo Richard Teng are lauding the start of a new era.

“You have to Remember, The Last Four Years, We Really Felt Like We We WEing Attacked by this administration,” Armstrong Told CNBC At the Annual World Economic Forum in Davos, Switzerland. Armstrong criticized the biden white house for trying to “Weaponize the lacked of class in the rules,” Panishing even the companies that were tried to be helpful.

“There was some bad actors too, to be fair,” Armstrong said. “But they even tried to go after the good actors, i think, like us.” Coinbase was One of the Leading Corporate Donors in the 2024 election cycle.

Bitcoin Hit a record high of Around $ 109,000 on Monday and Hovered Near $ 105,000 by the end of the week. It’s up more than 50% Since Trump’s Election Victory in Early November.

The 48-hour stretch referenceed by gurley inclined an Executive Order Signed by trump on Thursday to promote digital asset adoption in the US

Trump Called on Members of Treasury, The Secology and the Commodity Futures Trading Commission to join forces in a working group to evaluate the potential of stockpiling cryptocurrencies seized.

The Order Outlined Other Key Priorities, Such as Protecting Bitcoin Miners and Software Developers from What the President Called “PERESECUTION,” and Promoting Us Doller-PELECONS Oollar from the federal reserve.

Venture Capitalist David Sacks, Who Trump tapped To be the white house ai and crypto czar, joined the president in the oval office for the signing of the order.

Later on Thursday, The Sec Made a Landmark Announcement, Withdrawing An Accounting Rule That Made Institutional Crypto Adoption more Difentials by Forcing Banks to Treat Bitcoin and Other Tokens as a Liability on their balance sheet.

The rule, Known as sab 121, was introduced in 2022 and subjected digital assets to strict capital requirements. It is also also raised the financial and regulatory expenses of offering Crypto Custody Services and Boosted Operational Costs for Financial Institutions.

Efforts to overcurn sab 121 gained bipartisan support in Congress last year. But then-president biden Vetoed the proposed legislation, leaving the rules, further discouraging banks from adopting digital assets beyond derivatives trading and offering exchange-trades to wealth managment clients.

The move was celebrated by Sec Commissioner Hester Peerce, Who on tuesday was tapped to lead a new “crypto task force” with the agency.

“Bye, bye sab 121! It’s not been fun,” She Wrote in a Post on x,

Before the sec’s announs, Goldman Sachs Ceo David Solomon told CNBC in Davos that From a Regulatory Perspective, The Bank Bladn’s Bitcoin and that it would revisit the rules if the rules will change. The Ceos of Morgan Stanley and Bank of America Also said that President Trump’s Pro-Crypto ToneWe Reshape their plans and potentially lead to expanded digital offers.

Days Earlier, Gary Gensler Stepped Down from His Role as Sec Chair. Gensler, who emerged as an adversary to the crypto industry, had defended the rules as negaory to protectors in the event of crypto firm bankruptcies. Trump’s pick to successed gensler is former sec commissioner Paul atkinsWho is currently Ceo at Patomak Global Partners.

Trump’s first big nod to the crypto industry as president came earlier in the week and took a very different form.

On tuesdayHis second day in office, trump granted a full pardon to ross ulbrich, the founder of silk road. Ulbricht, 40, Had been serving a life sentence without the possibility of parole since 2015, after he was convicated in federal court on Seven Charges that Included Distributing Narcotics and Conspiring to Commit Computer Hacking.

Silk road operated from 2011 to 2013, serving as a dark web marketplace where users boght and sleep a mix of contrast, Including Illegal Narcotics Like Heroin. The platform Facilitated more than $ 200 million in salesAccording to federal prosecutors, and was tied to the death of at least six people.

At Its Peak, Silk Road Functioned as a Global Drug Bazaar, with Transactions Conducted Largely in bitcoinMaking it one of the earliest large-speculation applications of a cryptocurrency. Prosecutors laater argued that anonymity afforded by bitcoin was instrumental in letting silk road vendors mask their identies.

Ulbricht had become a Cult Hero of Sorts in the Crypto Community, and the “Free ross “ Movement Had Gained Resonance Among Conservative Media Personalities and Politicians.

“I just called the mother of ross william ulbricht to let her know that in honor of her and the libertarian movement, which supported me so stangly, it was my pleasure to have jus Son, ross, ” Trump Wrote in a post on truth social on tuesday.

Changpeng Zhao, The Billionaire Co-Founder and Former Ceo of Binance, commented on x with a clapping emoji after the pardon was Announced. Zhao was sentenced To four months in prison in April, after pleading guilty to charges of enabling money laundering at his crypto exchange.

Not all of trump’s actions in the past week have been universally praised by the crypto industry.

Most notably, The President has been fried in a part of the market that’s notorious for scams. Last weekend, while crypto leaders and members of trump’s family and inner circle was partying at the Crypto ball In Washington, the $ Trump Meme Coin was Taking Off Online.

Then came the $ melania coin. Taken Togeether, The Trump Family Made Billions of Dollars on paper due to their ownership of assets created out of thin air. Crypto Enthusiasts worry that it’s a Troubleing Sign of Trump’s real intent and is damaging to the creedibility of an industry that’s trying to prove its legitimacy.

“Call me old fashioned but i think presidents should focus on running the country and not launching scam tokens,” Wrote nic carter of castle island ventures, in a post on x.

The website For $ Trump says 80% of the supply is help by the Trump Organization and Affiliates.

Lawmakers also have objections.

Sen. Elizabeth warren and rep. Jake auchincloss, bot massachusetts democrats, raised issues Regarding the first couple using their positions for enrichment, Along with the potential for “Rug-Pull” Scams.

“We wrote with deep concern about the decision by presiding trump and first lady melania trump to launch two meme coins, $ trump and $ trump and $ melania, that allow them to earn extractionary protrdaryry proplies off hiskya,” The pair said in a letter obtained by cnbc.com. “These coins do not create new faster, cheaper, and safer payments railway. These coins do not help people borrow more affordally.

$ Trump is now trading at under $ 30, down more than 50% from its peak shortly after launch. The $ Melania token has plunged more than 80% from its high, and is currently trading below $ 2.50.

The meme coins are Subject to a Multi-Year Vesting Schedule, Ensuring that the Majority of Tokens cannot be liquidated all at Once. Without selling any tokens, former Coinbase Executive and Crypto Analyst Conor Grogan Estimates That The Trump Team Still Generated $ 58 Million in Trading Fees on the first day.

Skepticism isn’t limited to the meme coins.

In Trump’s Executive Order on Thursday, The President Fell Short of Directing the us to start buying bitcoin directly and holding it as a reserve.

Ahead of the Order, Binance CEO Richard Teng Told CNBC in Davos That he anticipated the us would establish a strategic bitcoin reserve. Circle Ceo Jeremy Allaire Called It “Prudent” for Central Banks to Hold Reserves in Bitcoin.

Trump Had Floated The Idea on the Campaign Trail, Suggesting that a Us Bitcoin Reserve Back Be Backed by Crypto Assets Seized from Hackers and Fraud Rings, A Proposal that reMains Undersal CONSDERCE.

But in his 1,300-Word Executive Order on Thursday, Trump Didn Bollywood Avoid Calling for a Bitcoin Reserve. The word bitcoin was nowhere to be found.

, CNBC’s Ryan Browne Contributed to this Report.