President-elect Donald Trump is making moves to fulfill his promises regarding cryptocurrency by engaging in talks with Brian Armstrong, the CEO of Coinbase, the largest crypto exchange in America. This meeting comes amidst speculations about Trump’s interest in acquiring the digital asset trading platform, Bakkt.
The reshuffling of federal agencies has been ongoing as Trump prepares to take office in January 2025. He has appointed Jay Clayton, the former chair of the Securities and Exchange Commission (SEC), to a key position in the U.S. Attorney’s Office for the Southern District of New York. This move was followed by an announcement from the office about scaling back crypto litigation, reflecting a shift in policy.
Amidst mounting pressure and criticism, the current SEC chair, Gary Gensler, hinted at his resignation. Many in the digital asset industry and among policymakers have been unhappy with the SEC’s approach towards crypto, calling for clearer regulations instead.
Speculation is rife about who will succeed Gensler, with names like Brian Brooks and Dan Gallagher being considered as top contenders. However, much attention is also on Trump’s choice for the U.S. Treasury Secretary, as this position could play a crucial role in shaping the future of crypto regulations and banking access for blockchain businesses.
The media has been abuzz with reports of Trump’s Media & Technology Group being in advanced talks to acquire Bakkt, a crypto trading platform owned by Intercontinental Exchange. This potential acquisition could significantly boost Trump’s influence in the crypto market, especially as Bitcoin and other cryptocurrencies continue to gain momentum post-election.
The deal, if finalized, would involve an all-stock transaction using TMTG’s stock as currency. While TMTG has a substantial equity valuation, its revenue is relatively low, raising questions about the financial implications of the acquisition. Bakkt, originally founded by Kelly Loeffler, operates under ICE’s majority ownership and has strong ties to Trump’s inauguration committee.
However, key components of Bakkt’s operations, such as its crypto custody business licensed in New York, may be excluded from the deal. This acquisition follows Trump’s support for World Liberty Financial, another crypto venture, indicating a growing alignment between his administration and the crypto industry.
Overall, Trump’s engagement with key figures in the crypto world and his interest in acquiring Bakkt signal a significant shift in the government’s approach towards digital assets. As details of the acquisition are still being negotiated, the outcome of these developments remains uncertain but holds the promise of shaping the future of crypto regulations in the U.S.
