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    Trump’s Crypto Venture Introduces a Stablecoin

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    World Liberty Financial, the cryptocurrency company started by Donald J. Trump and his sons, announced on Tuesday that it was planning to sell a digital currency called a stablecoin, deepening the president’s financial ties to crypto as his administration relaxes enforcement of the industry.The stablecoin would be known as USD1, the company wrote in a social media post, without revealing when it would go on sale. Stablecoins, a popular form of cryptocurrency, are designed to maintain a constant value of $1, making them useful for many types of crypto transactions.“No games. No gimmicks. Just real stability,” World Liberty Financial posted on its X account.The stablecoin is the fourth digital currency that Mr. Trump and his business partners have marketed to the public over the last year. World Liberty already offers a cryptocurrency called WLFI. This month, World Liberty announced it had sold $550 million of those digital coins. A business entity linked to Mr. Trump receives a 75 percent cut of the sales.Days before his inauguration, Mr. Trump also started selling a so-called memecoin — a type of digital currency based on an online joke or a celebrity mascot. Melania Trump put her own memecoin on the market that same weekend.Mr. Trump has made aggressive forays into the crypto market as his administration eases enforcement of crypto firms and rolls back regulations. His efforts to profit from an industry he oversees amount to an enormous conflict of interest, with virtually no precedent in American history, government ethics experts have said.World Liberty’s stablecoin adds to that messy knot of business conflicts. Congress is considering legislation to regulate stablecoins that could reach Mr. Trump’s desk before the end of the year. In a speech at a crypto conference this month, Mr. Trump called for “simple, common sense rules” for stablecoins, saying they would “expand the dominance of the U.S. dollar.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Signs Order to Create a ‘Crypto Reserve,’ Adviser Says

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      President Trump signed an executive order on Thursday to create a national stockpile of Bitcoin and other digital currencies, an adviser said, an audacious idea that has been widely criticized as a scheme to enrich crypto investors.The basis of the stockpile will be a stash of Bitcoin, estimated to be worth as much as $17 billion, that the United States has seized in legal cases over the years, according to a summary of the order posted on social media by David Sacks, the White House’s crypto and A.I. policy czar.The order also calls for federal agencies to develop “budget-neutral strategies” to buy more Bitcoin, the most popular digital currency, as long as those purchases do not generate extra costs for taxpayers.“This Executive Order underscores President Trump’s commitment to making the U.S. the ‘crypto capital of the world,’” Mr. Sacks wrote in his post. He said the United States would not sell any Bitcoin in the reserve, which he likened to “a digital Fort Knox.”Since Mr. Trump took office in January, his administration has moved rapidly to elevate the crypto industry, a volatile sector that had battled with federal regulators for years. The Securities and Exchange Commission has dropped lawsuits against two of the biggest U.S. crypto companies and halted investigations into several others. And on Friday, Mr. Trump is scheduled to host crypto executives at the White House for a first-of-its-kind “crypto summit.”Mr. Trump has a personal stake in the success of the crypto industry, creating conflicts of interests that have raised alarms with government ethics experts. Last year, he started a business, World Liberty Financial, that offers a cryptocurrency called WLFI. Just days before his inauguration, he also began selling a so-called memecoin — a type of cryptocurrency tied to an online joke or a celebrity figure.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      What is Trump’s Crypto Reserve Plan?

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      The prospect of using taxpayer money to stockpile cryptocurrencies in a national reserve has drawn criticism from lawmakers and investors.The crypto market gives and takes: After President Trump’s plan for a national crypto reserve drew backlash from both Republicans and investors, the prices of digital tokens that would be involved soared higher — and then tumbled. (Bitcoin was trading at about $83,800 early on Tuesday, down nearly $10,000 from a day ago.)The plan has spurred a lot of questions about how it would work and the risks that would be involved.How would a national reserve work?Mr. Trump campaigned last summer on creating a federal Bitcoin stockpile and appointed the venture capitalist David Sacks as his crypto czar. Advisers have suggested holding on to any Bitcoin the government has already seized from criminals, recently estimated at about $17 billion.A bill proposed by Senator Cynthia Lummis, Republican of Wyoming, would direct the government to buy about 200,000 Bitcoin a year over five years, for a value of about $90 billion. (To help pay for that, the bill proposes taking $4.4 billion out of the Federal Reserve’s surplus, cutting into the Treasury Department’s coffers.) Of course, the digital token’s prices would probably rise in anticipation of those federal purchases.One unknown is whether Mr. Trump, in the face of divisions among Republican lawmakers on the idea of a reserve, would seek to test legal limits on his authority and create one unilaterally.Would taxpayer money be involved?That prospect drew the most criticism. Joe Lonsdale, a financier and Trump supporter, said it was “wrong to tax me for crypto bro schemes.” Another investor called the proposal an “unforced error” that would “enrich the insiders and creators of these coins at the expense of the U.S. taxpayer.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      S.E.C. Declares Memecoins Are Not Subject to Oversight

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      The agency said the novelty digital assets were not securities, a month after President Trump issued his own memecoin.The Securities and Exchange Commission said on Thursday that so-called memecoins — novelty digital assets — are not subject to regulatory oversight because they are not considered securities.The determination could have big ramifications for the crypto industry and President Trump, who issued his own memecoin days before his inauguration.The S.E.C.’s policy on memecoins is consistent with the light regulatory approach that Mr. Trump promised to take toward the crypto industry during his campaign.Mr. Trump and his family firmly embraced digital currencies last year by teaming up with a new digital assets company, World Liberty Financial. The memecoin the president introduced during pre-inaugural festivities in January, called $Trump, spurred controversy because it swung wildly in value and generated hefty trading fees for Mr. Trump.The S.E.C.’s policy statement did not refer to Mr. Trump’s memecoin or any other specific digital novelty item. But the commission clearly acknowledged the risk to investors who put money into such products, even as it said it would not regulate them.“Although the offer and sale of memecoins may not be subject to the federal securities laws, fraudulent conduct related to the offer and sale of memecoins may be subject to enforcement action or prosecution by other federal or state agencies,” said the statement, from the S.E.C.’s division of corporation finance.In reaching its conclusion, the S.E.C. employed a nearly century-old Supreme Court decision to determine that a memecoin should not be considered an investment contract and therefore subject to regulatory oversight.Under Gary Gensler, who served as S.E.C. chair under President Joseph R. Biden Jr., the regulator had used that same Supreme Court case to argue that most digital assets are securities and subject to regulation.The S.E.C., apparently worried that traders and speculators could use its rationale to evade regulation, said it would look closely at any new product that tried to label itself a “memecoin.”The agency has moved quickly to dismantle the aggressive approach taken by Mr. Gensler in regulating cryptocurrencies. His enforcement actions angered the crypto industry and led many of its investors to contribute mightily to the campaign of Mr. Trump, who at one time was a crypto critic.Also on Thursday, the S.E.C. officially moved to dismiss its enforcement lawsuit against Coinbase, one of the nation’s largest crypto firms. The S.E.C. also has told a number of crypto companies that it was ending investigations into their activities.The S.E.C. also said in a court filing this week that it was trying to reach a settlement in a civil fraud case it filed against Justin Sun, a crypto investor. Mr. Sun also is an adviser to World Liberty and a significant investor in its digital token. The charges against him do not involve his investment with World Liberty. More

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      Coinbase Says S.E.C. Will Drop Crypto Lawsuit

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      The end of a court fight with the largest U.S. crypto company would be a big win for an industry that financially backed President Trump.The cryptocurrency exchange Coinbase said on Friday that the Securities and Exchange Commission had agreed to drop its lawsuit against the company, lifting a legal cloud over the global crypto industry and signaling a broader retreat by federal regulators.Coinbase, in a post on its website and in a regulatory filing, said it had reached an agreement in principle with the S.E.C. to have the lawsuit withdrawn without any financial penalty. If the S.E.C. confirms the proposed settlement, it would be a remarkable reversal by the agency after years of legal battles against crypto firms.The S.E.C. sued Coinbase, the largest U.S. crypto company, in 2023 on the grounds that the digital currencies sold on its platform constituted unregistered securities that put consumers at risk of financial harm.Any settlement that results in a dismissal of the lawsuit would require S.E.C. approval. A spokesperson for the S.E.C. declined to comment on Coinbase’s announcement.The lawsuit was the most significant of several that the S.E.C. had filed against major crypto companies, arguing that they were operating outside the law. A victory for the government could have threatened the continued operation of Coinbase, a publicly traded company worth about $65 billion, and decimated the broader crypto market.The dismissal would be biggest victory for the crypto industry since President Trump took office last month, promising to end the Biden administration’s regulatory crackdown on crypto under the previous S.E.C. chair, Gary Gensler. And it illustrates the growing influence in Washington of billionaire technology executives, who wrote enormous checks to support Mr. Trump’s campaign, hoping to secure softer regulation.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Argentine Leader Draws Fire After Cratering of Crypto Coin He Promoted

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      The move, quickly seized upon by his political rivals, was the latest in a series that Javier Milei has made that seem to mirror President Trump.Argentina’s libertarian president, Javier Milei, has caused a political firestorm by promoting an unknown cryptocurrency token that shot up in value after his endorsement and then swiftly cratered.In a post on social media on Friday night, Mr. Milei said that the coin, called $LIBRA, would stimulate the economy and help small businesses grow. While the sudden attention gave the token an initial boost, the huge gains were erased as fear quickly spread that the coin was a scam.Mr. Milei deleted his social media post five hours later and attempted to distance himself from the venture.“I was not familiar with the details of the project,” he wrote on X, “and after having informed myself I decided not to continue disseminating it (that is why I deleted the tweet).”But Mr. Milei rapidly came under fire for his role in pushing people toward a risky investment. His dalliance with crypto also prompted comparisons with President Trump, who launched a memecoin, $Trump, last month. That token surged for a while and then crashed.A center-left coalition that opposes Mr. Milei’s libertarian government called his crypto foray “a scandal without precedent.” Another political bloc said it was seeking to create a commission in Congress to investigate what occurred.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Prominent Cryptocurrency Investor Faces Senate Tax Inquiry

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      The Finance Committee’s top Democrat sent a letter last month to Dan Morehead, the founder of Pantera Capital, about the investigation.A Senate committee is investigating whether a prominent cryptocurrency investor violated federal tax law to save hundreds of millions of dollars after he moved to Puerto Rico, a popular offshore tax haven, according to a letter reviewed by The New York Times.Senator Ron Wyden, an Oregon Democrat, sent the letter on Jan. 9 to Dan Morehead, the founder of Pantera Capital, one the largest crypto investment firms.The letter said the Senate Finance Committee was investigating tax compliance by wealthy Americans who had moved to Puerto Rico to take advantage of a special tax break for the island’s residents that can reduce tax bills to zero.The investigation was focused on people who had improperly applied the tax break to avoid paying taxes on income that was earned outside Puerto Rico, according to the letter.“In most cases, the majority of the gain is actually U.S. source income, reportable on U.S. tax returns, and subject to U.S. tax,” the letter said.The letter requested detailed information from Mr. Morehead about $850 million in investment profits he made after moving to Puerto Rico in 2020, noting that he “may have treated” the gains as exempt from U.S. taxes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Bitcoin Price Surges to a Milestone: $100,000

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      The price of a single Bitcoin rose to six figures for the first time, an extraordinary level for a 16-year-old cryptocurrency once dismissed as a sideshow.In May 2010, Laszlo Hanyecz, an early cryptocurrency enthusiast, used Bitcoin to buy two pizzas from Papa John’s. He spent 10,000 Bitcoins, or roughly $40 at the time, in one of the first purchases ever made with the digital currency.It has turned out to be the most expensive dinner in history.On Wednesday, the price of a single Bitcoin rose to more than $100,000, a remarkable milestone for an experimental financial asset that had once been mocked as a sideshow and a fad. The total cost of those pizzas today: $1 billion.Bitcoin now stands as arguably the most successful investment product of the last 20 years. The value of all the coins in circulation is $2 trillion, more than the combined worth of Mastercard, Walmart and JPMorgan Chase. The motley assortment of hackers and political radicals who embraced Bitcoin when it was created by an anonymous coder in 2008 have become millionaires many times over. And the invention has spawned an entire industry anchored by publicly traded companies like Coinbase, a cryptocurrency exchange, and promoted by celebrities, athletes and Elon Musk.Even the president-elect says he is a believer. During the campaign, Donald J. Trump marketed himself as a Bitcoin enthusiast, vowing to create a federal stockpile that could push its price even higher.

      Note: As of 10 p.m. Eastern on Dec. 4Source: Investing.comBy The New York TimesBitcoin began as “essentially an experimental hobbyist project,” said Finn Brunton, the author of a 2019 book about the history of cryptocurrency. “To see where it is now is to see a really impressive feat.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Bitcoin Price Sets Another Record as Post-Election Rally Continues

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      The cryptocurrency hit $82,000 as a rally that began after President-elect Donald J. Trump’s election gained steam.Cryptocurrency backers continue to bid up Bitcoin prices, pushing the digital token to a new high of about $82,000 on Monday.The cryptocurrency has surged since Election Day, on investor hopes that President-elect Donald J. Trump and his appointees would be friendlier to the industry after the Biden administration’s aggressive enforcement of securities law that targeted several crypto companies.Cryptocurrencies have become a major component of the so-called Trump trade.Bitcoin exchange-traded funds, which got the regulatory green light to trade this year, have been booming over the past week. Crypto-related companies have also jumped in value: Riot Platforms, a Bitcoin miner, is up 40 percent since Election Day and Coinbase, a crypto exchange, is up 50 percent over the same period.The industry poured millions of dollars into the election. Prominent crypto executives, including Tyler and Cameron Winklevoss, the founders of the Gemini crypto exchange, donated large sums to support Mr. Trump. A group of super PACs also raised well over $100 million to elect pro-crypto congressional candidates.Just weeks before the election, Mr. Trump promoted a crypto venture, World Liberty Financial, in which several members of the Trump family have roles. More