Crypto gets a rapid return from Trump’s investment after the financing campaign

Cryptographic executives, companies and investors are obtaining an early return from their investment in Donald Trump.

After pouring dozens of millions of dollars in Trump’s 2024 campaign for president, the cryptocurrency has returned generous during its first week at the White House.

“I don’t think they could have imagined a better result of what they have just obtained in the last 48 hours,” Bill Gurley of Benchmark, known by a Early bet in SuperHe said to CNBC’s “Close Bell” on Friday. Gurley said that while Tech’s new influence in Washington can be harmful to some parts of the startup world, “it is obviously good for cryptography.”

The support of the industry to Trump was based on the promise of the Republican leader to stop the repression of the Government against cryptography and implement favorable regulations for those who wanted to develop new types of payment technologies while relieved restrictions in cryptocurrency investments.

Heavyweights of the industry as Coinbase The CEO Brian Armstrong and the CEO of Binance, Richard Teng, praise the beginning of a new era.

“You have to remember, in the last four years, we really feel that we were being attacked by this administration.” Armstrong told CNBC In the Annual World Economic Forum in Davos, Switzerland. Armstrong criticized the White House Biden for trying to “arm the lack of clarity in the rules”, even punishing the companies that were trying to be useful.

“There were also some bad actors, to be fair,” said Armstrong. “But they even tried to chase good actors, I think, like us.” Coinbase was One of the main corporate donors In the 2024 electoral cycle.

Bitcoin He reached a record of around $ 109,000 on Monday and was around $ 105,000 for the end of the week. It rises more than 50% from Trump’s electoral victory in early November.

The 48 -hour stretch to which Gurley is referred to included a Executive order Signed by Trump on Thursday to promote the adoption of digital assets in the United States

Trump asked the members of the Treasury, the SEC and the Trade Commission for Futures of the Basic Products to join forces in a working group to evaluate the potential to store cryptocurrencies seized by the Government.

The order described other key priorities, such as protecting Bitcoin software miners and developers from what the president called “persecution” and promoting the stable of the United States, while prohibiting a digital dollar of the Federal Reserve.

Risk capitalist David Sacks, who Trump touched To be the AI ​​of the White House and the Cryptographic Tsar, they joined the President in the Oval Office for the signing of the Order.

Later on Thursday, the SEC made a historical announcement, withdraw An accounting rule that hindered the institutional adoption of cryptography by forcing banks to treat Bitcoin and other tokens as a liability in their balance sheet.

The rule, known as SAB 121, was introduced in 2022 and submitted digital assets to strict capital requirements. It also increased financial and regulatory risks to offer cryptographic custody services and increase operating costs for financial institutions.

The efforts to annul SAB 121 obtained bipartisan support in Congress last year. But Then President Biden He vetoed the proposed legislation, leaving the rule intact, discouraging banks even more to adopt digital assets beyond derivatives trade and offer bags quoted in stock market to heritage management customers.

The measure was held by the SEC commissioner, Hester Peirce, who Tuesday He was used to lead a new “Crypto task force” within the agency.

“Goodbye, Goodbye Sab 121! It hasn’t been fun,” he wrote in a Publish in x.

Before the announcement of the SEC, Goldman Sachs CEO David Solomon said CNBC in Davos that from a regulatory perspective, the bank could not possess Bitcoin and would visit the problem again if the rules changed. The CEO of Morgan Stanley and Bank of America He also said that President Trump’s pro-crypto could remodel his plans and potentially lead to extended digital offers.

Days before, Gary Gensler resigned from his role as president of the SEC. Gensler, who emerged as an adversary of the cryptographic industry, had defended the rule as necessary to protect investors in case of firm cryptographic bankruptcies. Trump’s choice to succeed Gensler is a former sec commissioner Paul Atkinswho is currently CEO of Pathomak Global Partners.

TuesdayOn his second day in office, Trump granted a complete forgiveness to Ross Ulbricht, the founder of Silk Road. Ulbricht, 40, had been fulfilling life imprisonment without probation since 2015, after he was sentenced in a federal court in seven positions that included Distribute narcotics and conspire to commit computer piracy.

Silk Road operated from 2011 to 2013, serving as a dark web market where users bought and sold a mixture of smuggling, including illegal narcotics such as heroin. The platform facilitated more than $ 200 million in salesAccording to federal prosecutors, and was linked to the death of at least six people.

At its peak, Silk Road worked as a global drug bazaar, with transactions made largely in Bitcoinwhich makes it one of the first large -scale applications of a cryptocurrency. The prosecutors then argued that the anonymity provided by Bitcoin was essential to allow Silk Road’s sellers to mask their identities.

Ulbricht had become a worship hero in the cryptographic community, and “Free Ross “ The movement had gained resonance between the personalities and politicians of the conservative media.

“I just called Ross William Ulbricht to let her know that in honor of her and the libertarian movement, which supported me so strongly, it was a pleasure to have signed a complete and unconditional forgiveness of her son, Ross”, ” Trump wrote In a publication about Truth Social on Tuesday.

Changpeng Zhao, multimillionaire co -founder and former Binance CEO, commented In X with an applauded emoji after forgiveness was announced. Zhao was sentenced Four months in prison in April, after declaring himself guilty of the charges of allowing money laundering in his cryptography exchange.

In particular, the president has been friving in a part of the market that is known by the scams. Last weekend, while cryptographic leaders and Trump family and internal circle were partying in the Cryptographic ball In Washington, Meme $ Trump was taking off online.

Then came the currency $ Melania. Together, the Trump family earned billions of dollars on paper due to their property of the assets created from nothing. Crypto enthusiasts care that it is a worrying sign of Trump’s true intention and is detrimental to the credibility of an industry that is trying to demonstrate its legitimacy.

“Call me outdated, but I think the presidents should focus on managing the country and not launching fraud tokens,” wrote Nic Carter de Castle Island Ventures, on a mail In X.

He website For $ Trump says that 80% of the offer is in the hands of the Trump organization and the affiliates.

Legislators also have objections.

Senator Elizabeth Warren and representative Jake Auchincloss, both Massachusetts Democrats, raised problems regarding the first couple using their positions to enrich, along with the potential of “carpet” scams.

“We wrote with a deep concern about the decision of President Trump and the first lady Melania Trump to launch two meme coins, $ Trump and $ Melania, which allow them to obtain extraordinary profits from their presidency,” The couple said in a letter obtained by cnbc.com. “These currencies do not create new faster, cheaper and safer payments rails. These currencies do not help people borrow in a more affordable way. They do not improve the financial system in any way for consumers.”

$ Trump is now quoted at less than $ 30, more than 50% from its peak shortly after the launch. The token of $ Melania has collapsed more than 80% since its maximum, and currently trades below $ 2.50.

Memes currencies are subject to a several -year award schedule, ensuring that most tokens cannot be settled at once. Without selling tokens, ex Coinbase Executive and Cryptographic Analyst Conor Grogan estimates that The Trump team still generated $ 58 million in commercial rates the first day.

Skepticism is not limited to meme coins.

In Trump’s executive order on Thursday, the president could not order the US.

Before the order, the Binance CEO, Richard Teng He told CNBC in Davos which anticipated that the United States would establish a strategic Bitcoins reserve. The CEO of Circle, Jeremy Allaire, called it “prudent” so that the central banks have bitcoin reservations.

Trump had presented the idea in the campaign, suggesting that a bitcoins reserve of the United States could be backed by cryptographic assets seized from computer pirates and fraud rings, a proposal that remains under consideration.

But in his executive order of 1,300 words on Thursday, Trump not only avoided asking for a Bitcoin reserve. The Bitcoin word was nowhere.

– Ryan Browne of CNBC contributed to this report.