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      The trials of SBF and DJT: Trump isn’t clean on crypto but he did warn us about it

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      The New York fraud trial of Sam Bankman-Fried kicked off this week. The 31-year-old former crypto billionaire faces two substantive counts of wire fraud, for acts allegedly perpetrated against the customers of FTX, the crypto-futures exchange he founded, and five related counts of conspiracy. If convicted on all charges, he faces up to 110 years in prison.As fate would have it, his case is being heard a few buildings away from where one Donald J Trump sits on trial for fraud. Like the 45th president – DJT, if you will – SBF has a tough row to hoe.Even if Bankman-Fried is acquitted, he stares at another trial, slated for March 2024, on five more counts of fraud. The men’s paths remain entwined. At that same moment, Trump will be both deep into the Republican primary and likely standing trial in connection with January 6.Furthermore, filings show that as of early August, Trump held $2.8m in a cryptocurrency wallet, with as much as $500,000 in ethereum, a cryptocurrency. On top of that, his collection of non-fungible tokens generated $4.87m in licensing fees. The NFTs are a collection of virtual trading cards, featuring illustrations of Trump as superhero, cowboy or astronaut. Really.Not that Trump has always been in favour of crypto.“I am not a fan of bitcoin and other cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air,” he tweeted in 2019.Sound familiar? Prosecutors say Bankman-Fried relied on smoke and mirrors to gain access to political power. According to his indictment, he used customers’ assets “to lobby Congress and regulatory agencies to support legislation and regulation he believed would make it easier for FTX to continue to accept customer deposits and grow”.He is also alleged to have “misappropriated customer money to help fund over $100m in political contributions in advance of the 2022 election”, while seeking to “conceal the source of the funds used for the contributions”.Trump and his party, however, were not the chief recipients of such largesse. Bankman-Fried tended to donate to Democrats. Conservatives were therefore annoyed. They sought to portray Bankman-Fried as a leftist, on top of being a crook. Once upon a time, though, he met Ron DeSantis for no apparent reason other than the fact Florida’s hard-right governor wanted to meet. Now, as a presidential candidate, DeSantis has emerged as a crypto advocate. His campaign continues to sink, however.We know more about such meetings now, thanks in large part to Going Infinite: The Rise and Fall of a New Tycoon, a new book by Michael Lewis, the author of Moneyball, The Big Short and other bestsellers about how capitalism works – and doesn’t.For instance, Jerry Jones, a Republican and owner of the Dallas Cowboys NFL team, showed up at a Beverly Hills party also attended by Hillary Clinton, a passel of Kardashians, Doug Emhoff, the husband of the vice-president, Kamala Harris – and Bankman-Fried.Bankman-Fried had allure. Exactly why continues to puzzle political players. His money doesn’t explain everything. But it does shed light on plenty.In summer 2022, Lewis writes, Bankman-Fried met Mitch McConnell, the Senate minority leader, with the goal of stopping Trump-aligned extremists snagging Republican nominations. It was a high-level meeting – high enough that for one evening, Bankman-Fried even swapped his beloved cargo shorts for a suit.“At that moment, Sam was planning to give $15m to $30m to McConnell to defeat the Trumpier candidates in the Senate races,” Lewis writes.Bankman-Fried also explored paying Trump $5bn not to run in 2024, Lewis writes. Nothing came of that.Now, as Bankman-Fried sits in court, McConnell, 81, remains in the minority, his health in public decline. But McConnell remains a reliable soldier, his hold on his caucus unchanged.skip past newsletter promotionafter newsletter promotionThe crypto industry, meanwhile, scrambles to salvage its image from the damage done by Bankman-Fried.“The idea that one man and one company dictated an entire industry was frustrating for a lot of people,” Kara Calvert, head of US policy at Coinbase, recently told Politico. “At the end of the day, the industry is so broad-based. Nobody wants to let the whole future of technological development in the United States be dictated by a criminal.”Bankman-Fried has not been convicted of anything. But it does seem extraordinary that he rose so high so fast, and that so many political leaders were so eager to help.“From the beginning, I had thought that crypto was pretty dumb,” wrote Zeke Faux, an investigative reporter for Bloomberg and a fellow at New America, in Number Go Up, his unflattering take on crypto and Bankman-Fried. “And it turned out to be even dumber than I imagined.“There was no mass movement to actually use crypto in the real world … from El Salvador to Switzerland to the Philippines, all I saw were scams, fraud, and half-baked schemes.”In September 2021, El Salvador made bitcoin legal tender, the first country to do so. The rightwing Heritage Foundation ranks the country’s economy the 114th most free. Freedom House, more mainstream, rates El Salvador partly free. It’s not a flattering ad for crypto.In the US, major advocates include Eric Adams, the mayor of New York; Robert Kennedy Jr, a conspiracy theorist and likely third-party presidential candidate; and Cynthia Lummis, the Wyoming Republican senator who opposed certifying Joe Biden’s 2020 win just hours after the attack on Congress.Such names should tell us something – as should Trump’s crypto holdings mentioned above. But anyone who still believes might also care to recall Trump’s earlier words.“Unregulated crypto assets can facilitate unlawful behavior, including drug trade and other illegal activity,” he tweeted, more than four years ago. “We have only one real currency in the USA … it is by far the most dominant currency anywhere in the world, and it will always stay that way. It is called the United States Dollar!”Strange as it seems to say it, the man had a point. More

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      Trump, Bankman-Fried and Musk are the monsters of American capitalism | Robert Reich

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      Trump, Bankman-Fried and Musk are the monsters of American capitalismRobert ReichFor them, and for everyone who still regards them as heroes, there is no morality in business or economics. The winnings go to the most ruthless If this past week presents any single lesson, it’s the social costs of greed. Capitalism is premised on greed but also on guardrails – laws and norms – that prevent greed from becoming so excessive that it threatens the system as a whole.Yet the guardrails can’t hold when avarice becomes the defining trait of an era, as it is now. Laws and norms are no match for the possibility of raking in billions if you’re sufficiently ruthless and unprincipled.Donald Trump’s tax returns, just made public, reveal that he took bogus deductions to reduce his tax liability all the way to zero in 2020. All told, he reported $60m in losses during his presidency while continuing to pull in big money.Every other president since Nixon has released his tax returns. Trump told America he couldn’t because he was in the middle of an IRS audit. But we now learn that the IRS never got around to auditing Trump during his first two years in office, despite being required to do so by a law dating back to Watergate, stating that “individual tax returns for the president and the vice-president are subject to mandatory review”.Of course, Trump is already synonymous with greed and the aggressive violation of laws and norms in pursuit of money and power. Worse yet, when a president of the United States exemplifies – even celebrates – these traits, they leach out into society like underground poison.Meanwhile, this past week the SEC accused Sam Bankman-Fried of illicitly using customer money from FTX from the beginning to fund his crypto empire.“From the start, contrary to what FTX investors and trading customers were told, Bankman-Fried, actively supported by Defendants, continually diverted FTX customer funds … and then used those funds to continue to grow his empire, using billions of dollars to make undisclosed private venture investments, political contributions, and real estate purchases.”If the charge sticks, it represents one of the largest frauds in American history. Until recently, Bankman-Fried was considered a capitalist hero whose philanthropy was a model for aspiring billionaires (he and his business partner also donated generously to politicians).But like the IRS and Trump, the SEC can’t possibly remedy the social costs that Bankman-Fried has unleashed – not just losses to customers and investors but a deepening distrust and cynicism about the system as a whole, the implicit assumption that this is just what billionaires do, that the way to make a fortune is to blatantly disregard norms and laws, and that only chumps are mindful of the common good.Which brings us to Elon Musk, whose slash-and-burn maneuvers at Twitter might cause even the most rabid capitalist to wince. They also raise questions about Musk’s other endeavor, Tesla. Shares in the electric vehicle maker dropped by almost 9% on Thursday as analysts grew increasingly concerned about its fate. Not only is Musk neglecting the carmaker but he’s appropriating executive talent from Tesla to help him at Twitter. (Tesla stock is down over 64% year-to-date.)Musk has never been overly concerned about laws and norms (you’ll recall that he kept Tesla’s factory in Fremont, California, going during the pandemic even when public health authorities refused him permission to do so, resulting in a surge of Covid infections among workers). For him, it’s all about imposing his gargantuan will on others.Trump, Bankman-Fried and Musk are the monsters of American capitalism – as much products of this public-be-damned era as they are contributors to it. For them, and for everyone who still regards them as heroes, there is no morality in business or economics. The winnings go to the most ruthless. Principles are for sissies.But absent any moral code, greed is a public danger. Its poison cannot be contained by laws or accepted norms. Everyone is forced to guard against the next con (or else pull an even bigger con). Laws are broken whenever the gains from breaking them exceed the penalties (multiplied by the odds of getting caught). Social trust erodes.Adam Smith, the so-called father of modern capitalism, never called himself an economist. He called himself a “moral philosopher,” engaged in discovering the characteristics of a good society. He thought his best book was not The Wealth of Nations, the bible of modern capitalist apologists, but the Theory of Moral Sentiments, where he argued that the ethical basis of society lies in compassion for other human beings.Presumably Adam Smith would have bemoaned the growing inequalities, corruption, and cynicism spawned by modern capitalism and three of its prime exemplars – Trump, Bankman-Fried, and Musk.TopicsUS newsOpinionUS politicsUS taxationDonald TrumpSam Bankman-FriedFTXUS economycommentReuse this content More

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      FTX seeks to claw back donations to politicians and charities

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      FTX seeks to claw back donations to politicians and charitiesCollapsed cryptocurrency exchange had reputation for corporate philanthropy to tune of hundreds of millions of dollars FTX, the collapsed cryptocurrency exchange founded by Sam Bankman-Fried, has started trying to claw back payments made by its former management to politicians, celebrities and charities, as it continues to progress through bankruptcy proceedings in the US.FTX “intends to commence actions before the bankruptcy court to require the return of such payments, with interest accruing from the date any action is commenced”, the company said, sharing an email address – FTXrepay@ftx.us – that recipients could use to voluntarily return money.“Recipients are cautioned that making a payment or donation to a third party (including a charity) in the amount of any payment received from a FTX contributor does not prevent the FTX debtors from seeking recovery from the recipient or any subsequent transferee,” FTX added in a statement.Bankman-Fried, other members of FTX leadership and a number of members of the FTX group all developed reputations for corporate philanthropy to the tune of hundreds of millions of dollars.FTX billionaire Sam Bankman-Fried funneled dark money to RepublicansRead moreHe was one of the largest political donors in the United States, giving directly to Democratic politicians and to Republican causes. Other members of the FTX inner circle were also high-profile donors, such as Ryan Salame, the co-chief executive of FTX’s Bahamian subsidiary.As well as political causes, Bankman-Fried donated large sums to charities, endowing the FTX Foundation and FTX Future Fund to promote his interests.The FTX Foundation had given away $140m (£115m), the organisation reported in October, of which $90m had gone to the Future Fund.In criminal charges filed in the state of New York, the Department of Justice has alleged that the donations were the result of criminal money laundering, since the money was effectively taken from customer accounts.The charges also allege campaign finance violations, arguing that Bankman-Fried “and others known and unknown” broke donation limits by making contributions in the names of other people.Clawing back payments made to politicians and charities is likely to be one of the easier parts of the bankruptcy process.Under US law, payments or transfers made within 90 days of bankruptcy are presumed to be preferential if they result in a creditor getting more than it would have been entitled to at the end of the bankruptcy process, and a “clawback” can attempt to recover the difference in the payments.With FTX, which lost more than $8bn from customer withdrawals in a day less than a week before it declared bankruptcy, there could be billions of dollars that the court decides were distributed unfairly.Retail depositors, however, will be hoping that they aren’t treated as typical creditors. In FTX’s terms of service, the company said depositors didn’t hand over ownership of their deposits, which has led some creditors to argue that the crypto they placed in the exchange should not be used to pay the company’s bills.In another crypto bankruptcy, for BlockFi, a shadow bank that went bust after FTX, the court is now ruling on that question.BlockFi filed a motion on Monday with the New Jersey bankruptcy court arguing: “The BlockFi Wallet terms of service are clear. They provide that ‘title to the cryptocurrency held in your BlockFi Wallet shall at all times remain with you and shall not transfer to BlockFi.’“The debtors have no legal or equitable interest in cryptocurrency that was present in the Wallet accounts as of platform pause, and clients should be able to withdraw such assets from the platform if they choose.”As such, normal retail depositors should be able to withdraw their assets, the shadow bank said.TopicsSam Bankman-FriedFTXCryptocurrenciesE-commerceUS politicsnewsReuse this content More

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      in Elections

      Trump Sells $99 NFT Trading Cards of Himself, Confusing Allies

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      Money from sales of the digital trading cards, which depict the former president as characters like a superhero and a “Top Gun”-style fighter pilot, will go directly to him instead of his 2024 campaign.Donald J. Trump’s political opponents have long criticized him as something of a cartoon character. On Thursday, the former president made himself into one — but with the aim of turning a profit.In his first significant public move since opening his 2024 presidential campaign last month, Mr. Trump announced an online store to sell $99 digital trading cards of himself as a superhero, an astronaut, an Old West sheriff and a series of other fantastical figures. He made his pitch in a brief, direct-to-camera video in which he audaciously declared that his four years in the White House were “better than Lincoln, better than Washington.”The sale of the trading cards, which Mr. Trump had promoted a day earlier as a “major announcement” on his social media website, Truth Social, perplexed some of his advisers and drew criticism from some fellow conservatives.“Whoever told Trump to do this should be fired,” Keith and Kevin Hodge, two Trump supporters and stand-up comedians, posted on Twitter.“Man, when all Patriots are looking for is hope for the future of our country and Trump hypes everybody up with a ‘BIG ANNOUNCEMENT’ then drops a low-quality NFT collection video as the ‘announcement,’ it just pushes people away,” they said in another post.What to Know About Donald Trump TodayCard 1 of 6Donald J. Trump is running for president again, being investigated by a special counsel again and he’s back on Twitter. Here’s what to know about some of the latest developments involving the former president:Documents investigation. More

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      The Crypto Crash: all Ponzi schemes topple eventually

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      The Crypto Crash: all Ponzi schemes topple eventually Robert ReichWe’re back to the wild west finances of the 1920s as the crypto industry pours huge money into political campaigns One week ago, as cryptocurrency prices plummeted, Celsius Network – an experimental cryptocurrency bank with more than one million customers that has emerged as a leader in the murky world of decentralized finance, or DeFi – announced it was freezing withdrawals “due to extreme market conditions.”Earlier this past week, Bitcoin dropped 15 percent over 24 hours to its lowest value since December 2020. Last month, TerraUSD, a stablecoin – a system that was supposed to perform a lot like a conventional bank account but was backed only by a cryptocurrency called Luna – collapsed, losing 97 percent of its value in just 24 hours, apparently destroying some investors’ life savings.Eighty-nine years ago, Franklin D Roosevelt signed into law the Banking Act of 1933 – also known as the Glass-Steagall Act. It separated commercial banking from investment banking – Main Street from Wall Street – to protect people who entrusted their savings to commercial banks from having their money gambled away.Glass-Steagall’s larger purpose was to put an end to the giant Ponzi scheme that had overtaken the American economy in the 1920s and led to the Great Crash of 1929.Americans had been getting rich by speculating on shares of stock and various sorts of exotica (roughly analogous to crypto). These risky assets’ values rose solely because a growing number of investors put money into them.But at some point, Ponzi schemes topple of their own weight. When the toppling occurred in 1929, it plunged the nation and the world into a Great Depression. The Glass-Steagall Act was a means of restoring stability.But by the 1980s, America forgot the financial trauma of 1929. As the stock market soared, speculators noticed they could make lots more money if they could gamble with other people’s money – as speculators did in the 1920s. They pushed Congress to deregulate Wall Street, arguing that the United States financial sector would otherwise lose its competitive standing relative to other financial centers around the world.Finally, in 1999, Bill Clinton and Congress agreed to ditch what remained of Glass-Steagall.As a result, the American economy once again became a betting parlor. Inevitably, Wall Street suffered another near-death experience from excessive gambling. Its Ponzi schemes began toppling in 2008, just as they had in 1929.The difference was this time the US government bailed out the biggest banks and financial institutions. The wreckage was contained. Still, millions of Americans lost their jobs, their savings, and their homes (and not a single banking executive went to jail).Which brings us to the crypto crash.The current chair of the Securities and Exchange Commission, Gary Gensler, has described cryptocurrency investments as “rife with fraud, scams, and abuse.” In the murky world of crypto DeFi, it’s hard to know who provides money for loans, where the money flows, or how easy it is to trigger currency meltdowns.There are no standards for risk management or capital reserves. There are no transparency requirements. Investors often don’t know how their money is being handled. Deposits are not insured. We’re back to the wild west finances of the 1920s.Before the crypto crash, the value of cryptocurrencies had kept rising by attracting an ever-growing number of investors and some big Wall Street money, along with celebrity endorsements. But, again, all Ponzi schemes topple eventually. And it looks like crypto is now toppling.Why isn’t this market regulated? Mainly because of intensive lobbying by the crypto industry, whose kingpins want the Ponzi scheme to continue.Trillion-dollar crypto collapse sparks flurry of US lawsuits – who’s to blame?Read moreThe industry is pouring huge money into political campaigns.And it has hired scores of former government officials and regulators to lobby on its behalf – including three former chairs of the Securities and Exchange Commission, three former chairs of the Commodity Futures Trading Commission, three former US senators, one former White House chief of staff, and the former chair of the Federal Deposit Insurance Corporation.Former Treasury Secretary Lawrence Summers advises crypto investment firm Digital Currency Group Inc. and sits on the board of Block Inc., a financial-technology firm that is investing in cryptocurrency-payments systems.If we should have learned anything from the crashes of 1929 and 2008, it’s that regulation of financial markets is essential. Otherwise, they turn into Ponzi schemes that eventually leave small investors with nothing and destabilize the entire economy.It’s time for the Biden administration and Congress to regulate crypto.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
      TopicsCryptocurrenciesOpinionE-commerceInternetUS politicsBiden administrationcommentReuse this content More

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      ‘La French Tech’ Arrives Under Macron, but Proves No Panacea

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      The president has brought innovation, jobs and growth. Still, resentments fester on the eve of the presidential election.PARIS — In full Steve Jobs mode, President Emmanuel Macron of France donned a black turtleneck in January and took to Twitter to celebrate the creation in France of 25 “unicorn” start-ups — companies with a market value of over 1 billion euros, or almost $1.1 billion.He declared that France’s start-up economy was “changing the lives of French people” and “strengthening our sovereignty.” It was also helping to create jobs: Unemployment has fallen to 7.4 percent, the lowest level in a decade.The start-up boom was a milestone for a young president elected five years ago as a restless disrupter, promising to pry open the economy and make it competitive in the 21st century.To some extent, Mr. Macron has succeeded, luring billions of euros in foreign investments and creating hundreds of thousands of new jobs, many in tech start-ups, in a country whose resistance to change is stubborn. But disruption is just that, and the president has at the same time left many French feeling unsettled and unhappy, left behind or ignored.As Mr. Macron seeks re-election starting on Sunday, it is two countries that will vote — a mainly urban France that sees the need for change to meet the era’s sweeping technological and economic challenges, and a France of the “periphery,” wary of innovation, struggling to get by, alarmed by immigration and resentful of a leader seen as embodying the arrogance of the privileged.Which France shows up at voting booths in greater numbers will determine the outcome.Campaign posters on display this month in the northeastern French town of Stiring-Wendel.Andrea Mantovani for The New York TimesIn many Western societies, the simultaneous spread of technology and inequality has posed acute problems, stirring social tensions, and France has proved no exception. If the disenchanted France prevails, Marine Le Pen, the perennial candidate of the nationalist right, will most likely prevail, too.Worried that he may have lost the left by favoring start-up entrepreneurship and market reforms, Mr. Macron has in the past week been multiplying appeals to the left, resorting to phrases like “our lives are worth more than their profits” to suggest his perceived rightward lurch was not the whole story.He told France Inter radio that “fraternity” was the most important word in the French national motto, and said during a visit to Brittany that “solidarity” and “equality of opportunity” would be the central themes of an eventual second term.Learn More About France’s Presidential ElectionThe run-up to the first round of the election has been dominated by issues such as security, immigration and national identity.On the Scene: A Times reporter attended a rally held by Marine Le Pen, the far-right French presidential candidate. Here is what he saw.Challenges to Re-election: A troubled factory in President Emmanuel Macron’s hometown shows his struggle in winning the confidence of French workers.A Late Surge: After recently rising in voter surveys, Jean-Luc Mélenchon could become the first left-wing candidate since 2012 to reach the second round of the election.A Political Bellwether: Auxerre has backed the winner in the presidential race for 40 years. This time, many residents see little to vote for.The pledges looked like signs of growing anxiety about the election’s outcome. After several months in which Mr. Macron’s re-election had appeared virtually assured, the gap between him and Ms. Le Pen has closed. The leading two candidates in Sunday’s vote will go through to a runoff on April 24.The election will be largely decided by perceptions of the economy. In Mr. Macron’s favor, the country has bounced back faster than expected from coronavirus lockdowns, with economic growth reaching 7 percent after a devastating pandemic-induced recession.Marine Le Pen speaking this month in Stiring-Wendel.Andrea Mantovani for The New York TimesThe most significant cultural transformation has come in the area of tech, where Mr. Macron’s determination to create a start-up culture centered around new technology has brought changes the government considers essential to the future of France.Cédric O, the secretary of state for the digital sector, wearing jeans and a white dress shirt, no tie, admits to being obsessed. Day after long day, he plots the future of “la French tech” from his spacious office at the Finance Ministry.Five years ago, that may have seemed quixotic, but something has stirred. “It’s vital to be obsessed because the risk France and Europe are facing is to be kicked out of history,” Mr. O, 39, said, borrowing a line often used by Mr. Macron. “We have to get back into the international technological race.”Toward that end, Mr. Macron opened Station F, a mammoth incubator project in Paris representing France’s start-up ambitions, and earmarked nearly €10 billion in tax credits and other inducements to lure research activity and artificial intelligence business. A new bank was created to help finance start-ups.The president wined and dined multinational chief executives, creating an annual gathering at Versailles called “Choose France.”Since 2019, France has become the leading destination for foreign investment in Europe, and more than 70 investment projects worth €12 billion have been pledged by foreign multinationals at the Versailles gatherings, said Franck Riester, France’s foreign trade minister.In the past four years, IBM, SAP of Germany and DeepMind, the London-based machine learning company owned by Google’s parent, Alphabet, have increased investment in France and created thousands of jobs.Station F, a mammoth project in Paris that represents France’s start-up ambitions.Roberto Frankenberg for The New York TimesFacebook and Google have also bolstered their French presence and their artificial intelligence teams in Paris. Salesforce, the American cloud computing company, is moving ahead with over €2 billion in pledged investments.“Macron brought a culture shift where France was suddenly open to the world of funders,” said Thomas Clozel, a doctor by training and the founder in 2016 of Owkin, a start-up that uses Artificial Intelligence to personalize and improve medical treatment. “He made everything easy for start-up entrepreneurs and so changed the view of France as an anticapitalist society.”François Hollande, Mr. Macron’s Socialist Party predecessor, had famously declared in 2012: “My enemy is the world of finance.” As a result, Mr. Clozel said, securing funds as a French start-up was so problematic that he chose to incorporate in the United States.No longer.“Today, I am thinking of reincorporating in France,” he said. “The ease of dealing with the government, the consortium of start-ups helping one another, and the new French tech pride are compelling.”Among the start-ups that have had a significant effect on French life are Doctolib, a website that allows patients to arrange for medical appointments and tests online, and Backmarket, an online market for reconditioned tech gadgets that just became France’s most valuable start-up, at $5.7 billion.They began life before Mr. Macron took office, but have grown exponentially in the past five years.“I have made 56 investments in the last two years, and 53 of them are in France,” said Jonathan Benhamou, a French entrepreneur who founded PeopleDoc, a company that simplifies access to information for human resources departments.Now funding new ventures and focusing on a new start-up called Resilience in the field of personalized cancer care, Mr. Benhamou credits Mr. Macron with “giving investors confidence in stability and creating a virtuous cycle.”Talented engineers no longer go elsewhere because there is an “ecosystem” for them in France, Mr. O said.Yellow Vest protesters blocking a road in Caen, in France’s Normandy region, in November 2018.Charly Triballeau/Agence France-Presse — Getty ImagesMr. Macron has insisted that opening the economy is consistent with maintaining protections for French workers and that the arrival of la French tech does not mean the embrace of the no-holds-barred capitalism behind the churn of American creativity.Despite the president’s overhauls, France remains one of the most expensive countries for payroll taxes, according to the Organization for Economic Cooperation and Development, with hourly labor costs of nearly €38, close to levels seen in Sweden, Norway and other northern European countries.“We know that we have to go further,” Mr. Riester, the foreign trade minister, said in a recent interview. “We still have some brakes that could be taken off the economy, and we have to cut some red tape in the future.”Who Is Running for President of France?Card 1 of 6The campaign begins. 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      Biden signs cryptocurrency order to examine risks as popularity rises

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      Biden signs cryptocurrency order to examine risks as popularity risesAction comes as officials increasingly voice concern that Russia may be using cryptocurrency to avoid the impact of sanctions Joe Biden on Wednesday signed an executive order on government oversight of cryptocurrency that urges the Federal Reserve to explore whether the central bank should jump in and create its own digital currency.The Biden administration views the explosive popularity of cryptocurrency as an opportunity to examine the risks and benefits of digital assets, said a senior administration official who previewed the order Tuesday on the condition of anonymity, terms set by the White House.Under the executive order, Biden also has directed the treasury department and other federal agencies to study the impact of cryptocurrency on financial stability and national security.Brian Deese and Jake Sullivan, Biden’s top economic and national security advisers, respectively, said the order establishes the first comprehensive federal digital assets strategy for the United States.“That will help position the US to keep playing a leading role in the innovation and governance of the digital assets ecosystem at home and abroad, in a way that protects consumers, is consistent with our democratic values and advances US global competitiveness,” Deese and Sullivan said Wednesday in a joint statement.The action comes as lawmakers and administration officials are increasingly voicing concern that Russia may be using cryptocurrency to avoid the impact of sanctions imposed on its banks, oligarchs and oil industry due to the invasion of Ukraine.Last week, Democratic Senators Elizabeth Warren, Mark Warner, and Jack Reed asked the treasury department to provide information on how it intends to inhibit cryptocurrency use for sanctions evasion.The Biden administration has argued that Russia will not be able to make up for the loss of US and European business by turning to cryptocurrency. Officials said the Democratic president’s order had been in the works for months before Russia’s Vladimir Putin invaded Ukraine last month. Daleep Singh, a deputy national security and economic adviser to Biden, told CNN on Wednesday that “crypto’s really not a workaround for our sanctions”.The executive order had been widely anticipated by the finance industry, crypto traders, speculators and lawmakers who have compared the cryptocurrency market to the wild west.Despite the risks, the government said, surveys show that roughly 16% of adult Americans – or 40 million people – have invested in cryptocurrencies. And 43% of men age 18-29 have put their money into cryptocurrency.Coinbase Global Inc, the largest cryptocurrency exchange in the United States, said the company had not seen a recent surge in sanctions evasion activity.Janet Yellen, the treasury secretary, said last week that “many participants in the cryptocurrency networks are subjected to anti-money laundering sanctions” and that the industry is not “completely one where things can be evaded”.As for the Federal Reserve getting involved with digital assets, the central bank issued a paper in January that said a digital currency “would best serve the needs” of the country through a model in which banks or payment firms create accounts or digital wallets.Some participants in digital currency welcome the idea of more government involvement with crypto.Adam Zarazinski, CEO of Inca Digital, a crypto data company that does work for several federal agencies, said the order presents the opportunity to provide “new approaches to finance”.“The US has an interest in growing financial innovation,” Zarazinksi said. He added that China and Russia were looking at crypto and building their own currency. More than 100 countries have begun or are piloting their own digital sovereign currency, according to the White House.Katherine Dowling, general counsel for Bitwise Asset Management, a cryptocurrency asset management firm, said an executive order that provides more legal clarity on government oversight would be “a long term positive for crypto”.But Hilary Allen, a financial regulation professor at American University, cautioned against moving too fast to embrace cryptocurrencies.“I think crypto is a place where we should be putting the brakes on this innovation until it’s better understood,” she said. “As crypto becomes more integrated into our financial system it creates vulnerabilities not just to those who are investing in crypto but for everybody who participates in our economy.”TopicsCryptocurrenciesE-commerceJoe BidenUS politicsnewsReuse this content More

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      Antitrust: Hawley and Klobuchar on the big tech battles to come

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      Antitrust is hot. In February, the Minnesota senator Amy Klobuchar introduced the Competition and Antitrust Law Enforcement Reform Act of 2021. Weeks later, the Missouri senator Josh Hawley proposed the Trust-Busting for the Twenty-First Century Act. Both bills are pending before the Senate judiciary committee.Hawley and Klobuchar have both published books. Hawley offers The Tyranny of Big Tech, and Klobuchar Antitrust. There is plenty of overlap but the substantive and stylistic differences are glaring.Hawley takes pride in owning the libs. Klobuchar criticizes the Trump administration’s lack of antitrust enforcement. His book is barbed. Hers methodical.On 6 January, Hawley gave a clench-fisted salute to pro-Trump militants and voted against certifying the 2020 presidential election. On the page, he doubles down.Two weeks after the Capitol attack, Klobuchar told the presidential inauguration: “This is the day our democracy picks itself up, brushes off the dust and does what America always does.” She remains angry with Hawley and “Flyin’” Ted Cruz for the insurrection and its aftermath.Playing to type, Hawley has also provided the sole vote against a bill to crack down on anti-Asian hate crime and opposed renaming military bases named for Confederate generals. Roy Blunt, Missouri’s senior senator and the No 4 member of GOP Senate leadership, parted ways with Hawley on both. In the civil war, Missouri was a border state. A century and a half later, it looks like Hawley has picked the losing side.In his book, he upbraids corporate America, “woke capitalism”, Amazon, Google and Facebook. He demands that Google “be forced to give up YouTube and its control of the digital advertising market”.He would also have Facebook “lose” Instagram and WhatsApp, and accuses Amazon of destroying Parler, the conservative alternative to Twitter funded by Rebekah Mercer, a Hawley donor along with her father, Robert Mercer and other Trump acolytes.Hawley’s embrace of antipathy toward big business – even that in which he invests – is not exactly new.In 2008 he published a biography of Theodore Roosevelt, subtitled Preacher of Righteousness and approving of the 26th president’s relentless support for the little guy.Almost a decade later, as Missouri attorney general, Hawley launched an antitrust investigation of Google. Shortly after that, as a Senate candidate, he told Bloomberg News: “We need to have a conversation in Missouri, and as a country, about the concentration of economic power.”But Hawley is buffeted by contradictions. He has for example feted Robert Bork as a conservative martyr, even as Bork’s legal writings have served as intellectual jet fuel for those developments in the marketplace Hawley professes to abhor.The Tyranny of Big Tech makes no mention of the professor who wrote an influential anti-antitrust book, The Antitrust Paradox, in 1978, nine years before he was blocked from the supreme court.Klobuchar, by contrast, gives Bork plenty of face time.“For Bork,” she writes, “the accumulation of wealth in the hands of a few is not a relevant consideration for antitrust law.”Bork had issues with civil rights too. In 1963, when Jim Crow was still in full force, he branded what would become the Civil Rights Act of 1964 “legislation by which the morals of the majority are self-righteously imposed upon a minority”.In The Tyranny of Big Tech, Hawley also blasts corporate abuse of personal data and data mining – all while he looks to Peter Thiel of Palantir for donor dollars.Left unstated is that Palantir was embroiled in the Cambridge Analytica data scandal. Cambridge Analytica was owned by the Mercer family and Thiel was an early funder and board member of Facebook. The circle is complete.Hawley’s book can be viewed as plutocrat-populism in print. Tucker Carlson’s praise is blurbed on the jacket. Inside, Hawley defends Rupert Murdoch’s Fox News from purported predations by Mark Zuckerberg’s Facebook. Both Murdoch and Zuckerberg are billionaires many times over.Hawley is on stronger ground when he revisits the nexus between the Obama administration, Hillary Clinton’s campaign and Google. Eric Schmidt, then head of the company, was Obama’s chief corporate ally. On election night 2016, Schmidt, wore a Clinton staff badge, having spent months advising her campaign.In her book, Klobuchar furnishes an overview of the evolution of US anti-monopoly law and a call for rebalancing the relationship between capital and labor. She condemns corporate consolidation and wealth concentration, and views lax antitrust enforcement as antithetical to democracy.In a footnote, she commends Hawley for addressing the “turf wars” between the Department of Justice and the Federal Trade Commission, and their negative impact on antitrust enforcement. Unlike Hawley, however, Klobuchar vehemently disapproves of the supreme court’s Citizens United decision and characterizes it as opening “the floodgates to dark money in our politics”.In 2016, Dave Bossie, president of Citizens United, wrote an op-ed titled: “Josh Hawley for [Missouri] Attorney General”. In his maiden Senate race, Hawley’s campaign received $10,000 from the Citizens United Political Victory Fund.Unfortunately, Klobuchar goes the extra mile and calls for a constitutional amendment to overturn that decision. Her would-be cure is worse than the disease – an attack on free speech itself.The proposed amendment would expressly confer upon “Congress and the states” broad power to curtail campaign fundraising and spending. It also provides that “nothing in this article shall be construed to grant Congress or the states the power to abridge the freedom of the press”.Not so curiously, it is silent about “abridging the freedom of speech”, an existing constitutional protection. Media barons rejoice – all others start sweating.In 2020, Klobuchar came up way short in her quest for the Democratic presidential nomination. Now, she chairs the Senate’s antitrust subcommittee, where Hawley is a member.Both senators were law review editors: she at the University of Chicago, he at Yale. If Hawley has written a sort of campaign manifesto for the Republican presidential primary in 2024, Klobuchar’s book reads at times like an application for supreme court justice. It contains hundreds of pages of footnotes and pays repeated tribute to the late justice Louis Brandeis.Klobuchar also heaps praise on Stephen Breyer, a member of the court appointed by Bill Clinton and a former Harvard Law professor who in 1982 authored Regulation and Its Reform, a counter to Bork and the “Chicago School”.Klobuchar extends an array of “thank yous”. There is one for Jake Sullivan, her former counsel, now Joe Biden’s national security adviser; another for Matt Stoller, a former staffer to Bernie Sanders on the Senate budget committee and a sometime Guardian contributor; and another for Paul Krugman of the New York Times. All three come with definite viewpoints and are strategically placed.Increased antitrust enforcement by the DoJ, the FTC and the states appears to be more likely than wholesale legislative change. A government antitrust case against Google proceeds. Furthermore, Biden has already appointed two critics of big tech to key slots at the White House and the FTC. Who will lead DoJ’s antitrust division is an open question. Finding a suitable non-conflicted pick appears difficult.Klobuchar and Hawley will be heard from. Their books matter. More