Democrat Crypto Reset Hits Roadblock

The Breakdown First Five - Friday, August 9, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Eric Trump Pops Memecoin Bubble

The latest “official” Trump memecoin lasted lasted a few hours before detonating. Eric Trump had been teasing a forthcoming crypto. A new coin named Restore the Republic was launched and quickly soared to $150M in market cap under the assumption it was the latest Trump family coin. Eric later signed in to warn of fake coins, tanking the price. Don Jr later spoke to the scandal. Maybe the Trump family should just stick to pumping Bitcoin.

4. Do Kwon Delayed Again

The never ending saga of Do Kwon’s extradition continues with yet another delay. The Montenegrin Supreme Court has delayed Kwon’s extradition to South Korea to again review the decision. At this stage we’ve seen half a dozen appeals and other legal machinations which have dragged on for over six months. 

3. Russia Legalized Mining

Vladimir Putin has signed legislation that legalizes and regulates Bitcoin mining in Russia. Miners will now need to obtain licenses which could be used to limit electricity usage in sensitive regions. Regulations will be imposed by the Ministry of Finance, the Bank of Russia and select government cabinet members. This is the latest move in an arc that suggests Russia is exploring using cryptocurrencies to work around sanctions to maintain global trade.

2. Customers Bank Choked

Operation Chokepoint 2.0 claims another victim with the Federal Reserve revealing enforcement action against Customers Bank. Allegations of lax BSA/AML controls were leveled and the bank entered into an agreement to correct deficiencies. For the industry, the major provision is a requirement to clear all new relationships with digital asset firms with the Federal Reserve. 

1. Dem Crypto Reset Going Poorly

Democrat officials met with the crypto executives in a zoom call intended to smooth over relationships. Things took a turn as Treasury Deputy Secretary Adeyemo told attendees that regulators were not actively trying to cut the industry out of the financial system. In response, one executive asked for a show of hands of who has been debanked under this administration. Almost every hand was raised.