Latest news with #decentralizedfinance
Forbes
3 days ago
- Business
- Forbes
Trump Sold Stake In Crypto Company, Document Suggests
Trump visits a crypto-themed bar in New York City in September, the month he unveiled World Liberty Financial. Around the time that Donald Trump took office, he Trump Organization made moves to sell a stake in one of the president's crypto companies. That revelation was buried in a letter that an independent monitor overseeing the president's business submitted to a New York judge last month. The letter noted that the Trump Organization had repurposed an old entity to enter into an agreement related to World Liberty Financial, a decentralized-finance project that sold at least $550 million of crypto tokens, much of it in a mania-fueled blitz leading up to the inauguration. 'In January 2025, the monitor's team was notified that a portion of this entity would be sold to a third party,' states the letter, which did not specify the price of the transaction, size of the stake or identity of the purchaser. Forbes was not able to confirm whether the deal closed. No one involved seems eager to talk about it. A White House spokesperson directed questions to the Trump Organization, which did not respond to a request for comment. A press representative for World Liberty stayed mum, as did one of its cofounders, Alex Witkoff. Same with crypto magnate Justin Sun, who announced a $45 million World Liberty Financial investment on Jan. 19, the day before Trump's inauguration. It remains unclear whether Sun merely purchased tokens that World Liberty Financial distributed or if he instead bought a stake in Trump's entity. The deal seems to say something about the Trump family's intentions in crypto. In public, the Trumps pump up their projects, with the president posting on social media about his efforts and his sons insisting they are 'all in.' In private, however, the first family appears to be dumping least a portion of its holdings. Donald Trump announced World Liberty Financial in September. A 'gold paper'—Trump's twist on the industry-standard white paper—detailed plans for a token sale. The first $30 million would apparently stay inside the venture, but the rest would be split up among insiders, with 75% going to one of Trump's companies, 12.5% going to two entrepreneurs who helped set everything up, and the remaining 12.5% going to a company connected to the family of Steve Witkoff, a real-estate developer who now serves as ambassador at large in the Trump administration. Trump renamed one of his existing entities to enter into an agreement related to the token, according to a different letter the monitor sent to the New York judge. The new name for the entity appears to be DT Marks DEFI LLC, registered in Delaware on Jan. 4, 2016, according to state records. A financial disclosure report that Trump filed in 2017 shows 12 companies created that day. Eleven of those entities appeared on the most recent disclosure Trump filed, in August 2024. At that time, the president held a 100% interest in all 11. World Liberty Financial struggled to get much traction at first, selling an estimated $15 million of tokens by Nov. 2. But Trump won the election three days later, apparently piquing the interest of Sun, a crypto entrepreneur accused of fraud by the Securities and Exchange Commission. In late November, Sun announced a $30 million investment into World Liberty Financial, without specifying exactly what he had purchased. Sales crept up from there, reaching an estimated $94 million by Jan. 18, two days before the inauguration. Then things got out of hand. The president-elect released a separate memecoin, sparking a frenzy that extended to the World Liberty tokens. By the night of Jan. 19, World Liberty Financial announced that it had offloaded $300 million worth of tokens, an estimated two-thirds of that coming in a 29-hour period leading up to the inauguration. Sun also disclosed his $45 million add-on investment. World Liberty released more tokens, raising another $250 million. Last month, Eric Trump and Donald Trump Jr. took the stage at a Bitcoin conference in Las Vegas, where they opened up talking about their father. 'We finally have a competent president in the White House,' Eric said to a cheering crowd. 'And we have a president who loves this industry and is behind this industry 100%.' Except, it seems, when he finds a good opportunity to sell.
Forbes
3 days ago
- Business
- Forbes
SEC On Digital Assets: ‘We Should Not Automatically Fear The Future'
At a Securities and Exchange Commission roundtable on June 9, 2025, Chairman Paul S. Atkins called for protecting the right to self-custody Bitcoin and other digital assets. His remarks, delivered at the Crypto Task Force event titled 'DeFi and the American Spirit,' were rooted in a broader vision of economic liberty. Atkins, known for his market-friendly regulatory philosophy, framed decentralized finance and self-custody as modern expressions of deeply American ideals. Pointedly private property, innovation, and individual sovereignty. Atkins' speech comes amid increasing public awareness of digital asset custody. After the spectacular collapses of centralized crypto platforms like FTX and Celsius, many investors have turned to self-custody, storing their assets in wallets they control to minimize counterparty risk. In his remarks, Atkins praised blockchain technology for enabling direct ownership of digital property without intermediaries. He likened decentralized networks to 'free market systems' that reward users for validating transactions, and he rejected regulatory frameworks that penalize participation in open protocols. He drew a vivid analogy of holding developers liable for how users employ self-executing software is equivalent to suing a carmaker because someone used their vehicle to commit a crime. Atkins also challenged the SEC to move beyond ambiguous guidance and adopt clear, fit-for-purpose rules for decentralized systems. While he welcomed recent statements from the Division of Corporation Finance clarifying that staking and validating do not necessarily constitute securities transactions, he emphasized that such opinions lack the force of law. To address this, Atkins proposed a conditional 'innovation exemption' allowing both registrants and non-registrants to launch on-chain products without navigating an outdated regulatory maze. It was a striking statement from a senior SEC official, underscoring the political realignment around crypto in 2025. Atkins' remarks reflect a growing recognition that self-custody isn't just a technical preference, but a philosophical choice. Bitcoin, often likened to digital gold, is especially well-suited to self-custody. Its fixed supply and peer-to-peer nature allow users to hold it outside the traditional financial system. With a growing number of platforms offering user-friendly tools for multi-signature cold storage, self-custody is no longer the exclusive domain of tech-savvy early adopters. Multisig vaults require multiple approvals to move funds, dramatically lowering the risk of theft or accidental loss. Bitcoin can be purchased instantly, stored digitally, and transferred globally. Because of that, investors who want complete control over their assets, much like holding physical gold, now have more options to securely self-custody their Bitcoin. The rise of these services signals a shift toward empowering everyday investors, including retirees and wealth managers, to take control of their financial futures. But self-custody is not without risk. One of the most commonly cited concerns is user error. Losing the private keys that unlock a Bitcoin wallet can mean permanent loss of funds, with no customer service line to call. This risk grows more acute in natural disasters, death, or memory loss. Without a robust inheritance plan or backup access, Bitcoin held in self-custody can effectively vanish. Others worry about the threat of hacking, especially when funds are stored in so-called 'hot wallets' connected to the internet. These are more convenient for frequent use but also more vulnerable to attack. Security experts often recommend storing most crypto assets in 'cold wallets' that remain offline. While Atkins' advocacy for a more straightforward regulatory path is a step forward, the door remains open for retroactive enforcement. Previous administrations blurred the line between software development and financial services, resulting in lawsuits against creators of non-custodial wallet software. Atkins' call for legal clarity, especially for developers of self-custody and DeFi tools, is a welcome signal to the industry. However, the industry still needs concrete rulemaking before it can confidently build on American soil. The collapse of FTX in 2022 served as a painful reminder of the dangers of centralized custody. Billions in user funds were lost or frozen, with limited recourse. In the aftermath, self-custody has gained traction as the default recommendation among many Bitcoin advocates. The phrase "not your keys, not your coins" has emerged as a popular expression of digital sovereignty. However, true self-custody requires more than just control. It calls for education, careful planning, and a strong sense of responsibility. In response, hybrid models are gaining traction by helping users maintain control over their assets while offering support features like guided setup, backup key storage, and institutional-grade security to reduce risk. These innovations mirror the growing consensus that self-custody is achievable and advisable, but must be done responsibly. Atkins' remarks may prove to be a defining moment in crypto's regulatory history. By championing self-custody and decentralized software, he reaffirmed a vision of financial freedom rooted in individual agency rather than institutional control. But the road forward remains uncertain. Without legally binding reforms, entrepreneurs may continue to innovate offshore, and investors may continue to face an uneven patchwork of protections. Still, there is momentum. With a supportive SEC commissioner, a deregulatory White House, and a surge of interest in Bitcoin's store-of-value properties, the groundwork is laid for a more secure and sovereign financial future. As Atkins concluded, 'We should not automatically fear the future.' If the future embraces safe and responsible self-custody of digital assets, the potential benefits are significant.
Irish Times
28-05-2025
- Business
- Irish Times
‘Dublin can be a leader' in blockchain, says digital finance founder Stani Kulechov
Decentralised finance company Avara has opened its new European headquarters in Dublin as it seeks to build up its presence in the EU. 'Dublin can be a leader in the space,' said Stani Kulechov, the founder of Avara, noting that the Irish capital 'is a great place to have a European headquarters'. The company opened its Dublin office a number of weeks ago, initially hiring eight developers, but has already outgrown its space through hiring additional electronic engineering roles. Avara has 90 employees globally, and is anticipating further growth in its Dublin office in the coming months. Mr Kulechov came to Dublin to headline two separate conferences as part of Dublin Tech Week, ETH Dublin and Blockchain Ireland, which he said is evidence of the 'strong blockchain community here in Dublin' and the enthusiasm towards the adoption of the technology. READ MORE 'Ireland has had blockchain developers that have been around since the beginning of Ethereum , there is quite a strong ecosystem with a lot of very strong talent.' Blockchain technology is a system in which information is channelled through a series of independent computers allowing, in one use case, for a decentralised financial system that does not require a central bank. 'As a company that wants to build this technology, we want to have a base somewhere that we can actually test things out locally before scaling them across the whole European Union,' Mr Kulechov said. Avara is headquartered in London and has an office in New York. It expects the Dublin office to be a catalyst for growth in the EU. 'Our goal is to be one of the biggest market participants, not just in the European Union, but globally,' Mr Kulechov said. He expects the company to grow to rival the biggest financial technology companies in the world: 'Obviously, it is going to take a while to get there but that is the mission.' [ John Collison of Stripe: 'I am baffled by companies doing an about-face on social initiatives' Opens in new window ] Avara's Aave decentralised lending protocol has recorded €40.3 billion in net deposits so far and is targeting €100 billion total value by the end of 2025. Mr Kulechov welcomed the recent implementation of EU regulation frameworks on the wider cryptocurrency industry, saying it gives 'clarity on the rules and creates a level playing field for everyone on how to build in that market'. He warned, however, that 'regulation can be overly excessive' and could slow innovation in the industry and would especially hit smaller companies in the space. Avara, alongside its subsidiaries, is a registered Virtual Asset Service Provider with the Central Bank of Ireland, with Mr Kulechov saying, 'It is important to choose the regulatory path, because that creates certainty, but also expectations for the customers on the safety and security.' Mr Kulechov anticipates that decentralised finance services will have a 'significant opportunity' as Central Bank interest rates decrease in the coming years and sees stable coins, cryptocurrencies linked to traditional currency, as the 'next big thing in decentralised finance'.
CNA
14-05-2025
- Business
- CNA
Central bank project shows monetary policy still viable in 'tokenized' system
NEW YORK :Central banks should still be able to conduct monetary policy effectively and perhaps be even nimbler in a more decentralized financial system, according to the findings of a joint report released on Wednesday by the New York Federal Reserve and the Bank for International Settlements. The report said a prototype system designed to conduct monetary policy in a financial system reliant on new, more automated systems "successfully responded and instantaneously carried out the intended operation under the varying market conditions, consistent with the central bank's desired liquidity environment." The prototype created for the study showed there's even the possibility of central bank monetary policy working even better under a decentralized financial system. The project came out of work done by the New York Fed's Innovation Center and the Bank for International Settlements' Innovation Hub, as part of the Project Pine effort. "Central banks could use smart contracts to easily and quickly create new facilities or adjust existing ones to optimize the implementation of monetary policy in a tokenized environment," which means future operations could be "nimbler in uncertain conditions and potentially reduce frictions between the time of announcements and offerings," the report said. Tokenization refers to assets with digital tokens on a blockchain. The report noted that the research was conducted in conjunction with inputs from a number of central banks and its setup was generically oriented rather than tailored to the operations and goals of a particular central bank. The project was undertaken as part of preparatory efforts to make sure central banks will be ready for any future changes in financial markets. The prototype system covered by the report is designed to perform most of the key technical functions that monetary policy does now to achieve central bank policy goals. While there is no current threat to how central banks now intervene in markets to set interest rates and manage market liquidity, rising decentralizations and new technologies, some of which are in use already, could change that at some point. "If the private financial sector adopts tokenization on a broad scale in wholesale markets, central banks may need to participate in novel financial market infrastructures and interact with digital tokens to continue effectively implementing monetary policy," the report said. Decentralized financial systems could also create "emerging challenges" for money created by the central bank, the report said. In terms of central bank operational issues "the additional complexity of central bank operations has increased incentives to use technology to automate tasks and processes." At the same time, "central banks still face a challenge in integrating automated processes with those that require human judgment."
Bloomberg
13-05-2025
- Business
- Bloomberg
Bloomberg Crypto 05/13/2025
"Bloomberg Crypto" covers the people, transactions, and technology shaping the world of decentralized finance. Todays guest: Crucible Capital Group General Partner and Founder Meltem Demirors, Robinhood Crypto Senior Vice President & General Manager Johann Kerbrat, and Bloomberg's Anthony Cormier. (Source: Bloomberg)
