Molly White (@molly0xfff@hachyderm.io)

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Other input has come from the likes of Lee Reiners, who writes “I must admit that whole endeavor seems performative and intended to justify a predetermined outcome.”

#crypto #cryptocurrency #USpol #USpolitics

I. Introduction I appreciate the opportunity to participate in the SEC’s first Crypto Task Force roundtable and offer comments on several of Commissioner Peirce’s 48 questions included in her February 21, 2025, statement titled, “There Must Be Some Way Out of Here.”2 As excited as I am to participate and comment, I must admit that whole endeavor seems performative and intended to justify a predetermined outcome. While the stated purpose of the Task Force is to develop a “comprehensive and clear regulatory framework for crypto assets,”3 the Commission has proceeded to front-run the Task Force by either dismissing, or pausing, nearly every outstanding crypto-related case and investigation, often with prejudice. In several court submissions stipulating that ongoing crypto litigation will be dismissed, as well as in press releases announcing the dismissal, the Commission justifies the action by referencing the work of the Crypto Task Force in “helping the Commission develop the regulatory framework for crypto assets.”4 Has the Task Force already concluded that every named crypto asset in outstanding enforcement actions is not a security? These actions open the Commission up to allegations of politicization – the very same allegations leveled at the Commission by the crypto industry just months earlier. The crypto industry raised over $238 million this past election cycle in a successful effort to support industry-friendly candidates in Congressional races.5

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And just three days before his inauguration, President Trump and the First Lady issued their own meme coins, netting the Trump Organization significant profits.6 Is the public expected to think it is just a coincidence then when the Commission’s Division of Corporate Finance issues a staff statement expressing their view that meme coins “do not involve the offer and sale of securities under the federal securities laws”?7 Perhaps more concerning, the Commission has paused cases involving credible allegations of fraud and misconduct. In March 2023, the Commission charged Justin Sun and three of his wholly-owned companies for the unregistered offer and sale of crypto asset securities (TRX and BTT) and for “fraudulently manipulating the secondary market for TRX through extensive wash trading.”8 And in June 2023, the Commission filed 13 charges against Binance entities and founder Changpeng Zhao. In the press release, the SEC noted that “Zhao and Binance exercise control of the platforms’ customers’ assets, permitting them to commingle customer assets or divert customer assets as they please”; that Binance “misled investors about

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The crypto super PACs have spent a combined $1.5 million on two special elections in deeply red districts in Florida, where Republicans have been panicking about being outspent by Democrats. Musk’s America PAC also dropped some cash to help out Trump’s picks.

#crypto #cryptocurrency #USpol #USpolitics

As usual for ads from these super PACs, cryptocurrency is not mentioned. The two candidates are battling to secure the seat vacated by Michael Waltz, Trump’s new National Security Adviser who has wasted no time in making a name for himself after adding the editor-in-chief of the Atlantic to a top secret war planning group chat. Oopsie. Fine has been a member of Florida’s state legislature since 2016, and prior to that he worked as an executive and then consultant for the casino industry.

Defend American Jobs dropped another $345,000 on ads supporting Republican Jimmy Patronis in his campaign against Democrat Gay Valimont.33 The two are competing in the special election to fill the seat vacated by its also illustrious former occupant, Matt Gaetz, who resigned in confidence that he would be confirmed as Trump’s pick for attorney general before withdrawing his nomination after it became clear that that pesky child sex abuse scandal might prove challenging to overcome. Patronis is a career politician who currently serves as the Chief Financial Officer for the state of Florida. In October, he advocated that Florida state pensions look into investing in crypto.34

While both districts are heavily red, and both Republican candidates are strongly favored to win, the nervousness around these races reveals Republican fear that Americans concerned about the horrors of the past few months might channel it into elections.

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While crypto-focused super PACs have mostly been hard at work preparing to launch a 2024-esque funding onslaught on the 2026 midterms, they’re not twiddling their thumbs until then. After panic at the White House and among Republican Congresspeople that their favored candidate was being out-raised,32 the Republican-focused arm of the crypto lobby, Defend American Jobs, dumped $1.2 million in ad spending to support Randy Fine in his Florida special election against Democratic opponent Joshua Weil.33 Musk’s America PAC followed shortly after to fund a text message blast. A television ad funded by the Defend American Jobs PAC states:

Florida voters: President Donald J. Trump has an urgent message. President Trump needs Randy Fine in Congress. Fine and Trump will drive prices down and end the border crisis once and for all, and you can count on Randy Fine to tackle our high insurance rates head on. Florida approved, Trump endorsed. Stand with Trump. Vote Randy Fine for Congress.

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