Molly WhiteNewsletter: President on brink of bailout for bitcoin
Trump tries to breathe life back into the crypto markets’ “Trump pump” while federal regulatory agencies wash their hands of any crypto industry oversight
While cryptocurrencies were once viewed as a subversive financial instrument intended to be independent from governments, banks, or the traditional financial system, it’s become clear that the crypto world is deeply dependent on outside forces propping it up.
Seeming to respond to the panicked pleas from the cryptocurrency industry, Trump rescued bitcoin from its below-$80,000 slide in a Sunday Truth Social post reiterating his plans for a “U.S. Crypto Reserve”.
But the “announcement” doesn’t seem to actually announce anything new, and instead seems to be Trump’s attempt to apply some electroshock paddles to the easily swayed crypto markets.
Every time he does this, it seems to work less and less.
Rocky crypto markets have not exactly been steadied by a new theft from a crypto exchange that dwarfs other previous hacks. North Korea has added another $1.5 billion to its stash of stolen crypto — more than all of their (also substantial) thefts last year combined.
While Bybit’s CEO immediately claimed that “all of client assets are 1 to 1 backed”, it was later disclosed that wasn’t true. Bybit papered over the stolen funds by taking loans from other exchanges and crypto VCs, but their ability to repay those loans will remain to be seen.
The SEC has rapidly been pausing and dropping enforcement cases and investigations against crypto companies, including some of the largest crypto-focused political donors (and those paying Trump in more... creative ways).
Gemini’s Cameron Winklevoss isn’t satisfied with the SEC merely dropping an ongoing investigation into his crypto exchange. The billionaire is now suggesting that the SEC should have to repay 3× his legal expenses, and “dishonorably discharge” any employees who were involved.
Ongoing cases and investigations from the SEC against crypto firms have been paused or dropped. A few remain, but not likely for long.
Sam Bankman-Fried has managed to pop his head back up, despite his 25-year prison sentence. The former Democratic megadonor is now making Trumpian claims that he was targeted by a “politicized DOJ” under Biden, clearly angling for a pardon.
Former Rep. Patrick McHenry has taken not one but three roles at crypto-involved firms. This includes Andreessen Horowitz, where he will “ensure that Little Tech gets a fair shot”. (a16z is the largest VC firm in the world and has installed four employees in the White House)
All that and more in this week’s issue of Citation Needed. If you enjoy my work, please consider supporting it with a free or pay-what-you-want subscription. I’m entirely independent and funded by readers like you.
Also, I will be at SXSW later this week talking about digital sovereignty and (separately) crypto! Come to my talks and/or say hi if you’re going to be there too!
Keith Williams@molly0xfff I love SXSW, but can't make it this year. So, you're...breaking INTO the walled garden?!
tylercheung@molly0xfff im just impressed flipboard still exists
soaproot@tylercheung @molly0xfff I hadn't much heard of Flipboard until they implemented ActivityPub. There are some accounts you can follow and interact with at places like @Flipboard (and a whole bunch of other addresses).
FlatFootFox@molly0xfff Do you know if a SXSW badge will be required for Flipboard's Fediverse House events? It sounds like a fun series of talks!
Surf@FlatFootFox @molly0xfff Hi! No badge required for the #FediverseHouse, but badge required for Molly's digital sovereignty and crypto talks.
@surf @molly0xfff Does that mean the Fediverse House “9:45am: “A Better Web Is Possible” with Molly White, Researcher, Software Engineer and Writer” session also requires a badge?
@FlatFootFox @molly0xfff No, that doesn't. This does: https://schedule.sxsw.com/2025/events/PP147154
Digital Sovereignty Is the New Influencer Status
SXSW 2025 Schedule | The real power move for creators is ownership and control of their work and livelihoods. This freedom is actually closer for more people than ever before! Learn from two fediverse futurists how decentralized social media facilitates better publishing, community, and business models. These speakers will cover the theoretical and the practical, including how the landscape is evolving in 2025, where creators should focus their energies, and how they might thrive with or without “walled garden” s...
virkon@molly0xfff For some reason I have this image in my mind, that #Putin and #Trump will #scam each other and each others countries into oblivion.
Cascadia Secession Zone@molly0xfff that illustration has strong Kool Aid Man vibes. OH YEAH!
What is digital sovereignty?
It could be a good thing like 'EU needs to divest of US cloud dependencies'.
Or it could be a bad thing like the sovereign citizen movement, to justify ignoring laws that protect other people.