Regulation
Gemini Cofounder Reveals How Much David Sacks Will Lose In Crypto Gains In Four Years
Controversy has trailed the announcement of a Crypto Strategic Reserve with critics taking swipes at crypto czar David Sacks over allegations of unjust enrichment. Gemini cofounder Cameron Winklevoss has waded in to defend Sacks, noting that the crypto czar is losing a fortune in gains by preventing a conflict of interest.
Gemini Founder Says Sacks Could Lose Up To $1 Billion In Crypto Gains
Amid swirling speculations of unjust enrichment, Sacks confirmed the sale of all his cryptocurrency holdings to avoid a conflict of interest. Gemini Founder Cameron Winklevoss remarked that Sacks’ decision to sell off all cryptocurrencies would cost him gains running into a billion dollars.
“David Sacks is going to easily lose out on $1 billion in crypto gains over the next 4 years,” said Winklevoss. “He sold all of his crypto holdings (including $85 million of his personal holdings) prior to becoming AI and crypto czar.”
Sacks has previously confirmed the sale of his digital asset holdings while denying Multicoin exposure after divesting his stake. According to Sacks, he cumulatively sold $200 million worth of cryptocurrencies while disposing of $85 million worth of personal assets. He confirmed that he liquidated his holdings in crypto funds, including Bitwise and Blockchain Capital, before assuming office.
Cameron says Sacks is at the helm of a policy shift for cryptocurrencies in the US but will not reap any benefits from the windfall of changes.
“He is doing tremendous work and will not be sharing in any of the economic upsides to avoid even the slightest appearance of a conflict,” said the Gemini cofounder.
Sacks Leads The Charge For New Crypto Policy Without Pecuniary Benefits
David Sacks has hit the ground running since his appointment as crypto and AI czar, playing a key role in setting up the White House Crypto Summit. His efforts led to the establishment of a Strategic Bitcoin Reserve and the US Digital Asset Stockpile.
Sacks disclosed that the US has lost over $17 billion from the previous sale of confiscated Bitcoins. The concerted efforts of Sacks are expected to trigger new institutional interest in the ecosystem, sending prices to new all-time highs by the end of Trump’s first tenure.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto exchange Coinbase has stated that the Federal Deposit Insurance Cooperation (FDIC) has refused to cooperate in Operation Choke Point 2.0 investigation while denying transparency on their part. While other agencies like the U.S. Office of the Comptroller of the Currency (OCC) rolled back in 2020 guidance, agencies like the FDIC have been reluctant on this matter.
Coinbase CLO Blames FDIC for Refusal on Transparency
In a message on the X platform, Coinbase CLO Paul Grewal lashed out at the FDIC for its refusal to cooperate and resist basic transparency efforts towards unwinding of the Operation Choke Point 2.0. This operation major led to the debanking of crypto companies with the goal of leaving them dry of liquidity. Speaking on it, Grewal wrote:
“They haven’t gotten the message. Despite a huge week for crypto across the rest of the federal government, on this late Friday night over at FDIC staff still continue to resist basic transparency into Operation Chokepoint 2.0”.
The crypto exchange asked the regulatory agency on how they conducted the “due diligence” to ensure no documentation related to the event was destroyed. However, according to Grewal, the agency has “repeatedly refused” to provide this information.
He also stated that FDIC has been withholding key information related to its Freedom of Information Act (FOIA) practices, and has only provided “snippets from a few documents” that appear unrelated to the specific FOIA policies or practices challenged in the amended complaint filed by History Associates.
“What exactly are they hiding?” Grewal questioned FDIC, highlighting concerns over the agency’s transparency in handling FOIA requests.
Developments in Operation Choke Point 2.0 Elimination
Fox Business journalist Eleanor Terret stated that the recent White House Crypto Summit highlights major regulatory changes that would be coming to the crypto industry. During his remarks at the event, President Donald Trump referenced the rollback of Biden-era banking regulations, which critics say facilitated “Operation Chokepoint 2.0”.
While the FDIC is not cooperating on the matter, the Office of the Comptroller of the Currency (OCC) is reversing 2020 guidance that restricted banks from engaging with and providing custody services for cryptocurrencies.
“This rollback is a major signal the industry and banks have been waiting for,” Terret stated. She added that it could pave the way for financial institutions to begin actively participating in the digital assets space.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The ongoing Ripple vs. SEC lawsuit may conclude without any changes to the $125 million judgment against Ripple, according to attorney Fred Rispoli.
The legal expert suggested that the Securities and Exchange Commission (SEC) might be waiting for new leadership before making a final decision. This has led to discussions about whether Ripple could negotiate a reduced penalty or alternative settlement.
Ripple vs. SEC Lawsuit Could End with $125M Judgment
The US SEC, currently led by a 2-1 pro-crypto commission under acting Chair Mark Uyeda, has not dropped its case against Ripple, despite withdrawing other cryptocurrency-related lawsuits. Legal analysts Fred Rispoli in an X post believes the agency is waiting for new SEC Chair candidate Paul Atkins to take office before making further decisions on the case.
Fred Rispoli has argued that dropping the appeal while keeping the $125 million fine would save the SEC from further legal battles.
“The best satisfaction of this, if true, is that it nullifies the thousands of hours of work put in by SEC staff to get the $125M judgment,” Rispoli stated in a post on X.
The Ripple vs. SEC lawsuit remains one of the most complex legal battles in the cryptocurrency industry. While the SEC recently closed cases against Kraken, Coinbase, and ConsenSys, it has yet to take similar action against Ripple. Some legal experts believe the injunction on Ripple’s institutional sales of XRP may be a key factor in the delay.
Speculation Over XRP Payments and Strategic Reserves
There has been speculation that Ripple could settle the $125 million fine by transferring XRP instead of cash. Vincent Van Code, a market analyst, suggested that Ripple might be negotiating to pay the fine in XRP, which could then be allocated to a government-controlled cryptocurrency reserve.
According to Van Code, “Some are speculating that Ripple, rather than pay $125 million in dollars, provides the equivalent in XRP to the new crypto strategic reserve.” However, attorney Rispoli doubts that such an arrangement is likely, given the slow progress in legal proceedings.
Meanwhile, Ripple’s escrow holdings, which contain approximately 37.1 billion XRP, have been at the center of discussions regarding potential government acquisitions. Over the weekend, U.S. President Donald Trump confirmed that XRP would be part of the country’s digital asset reserve, fueling speculation that Ripple’s escrow could be involved in the legal negotiations.
XRP Sales Restrictions Remain a Key Issue
The Ripple vs. SEC lawsuit has focused on whether XRP should be classified as a security. In 2023, Judge Analisa Torres ruled that Ripple’s institutional sales of XRP were securities transactions, leading to the $125 million fine. Ripple has since been working to challenge the injunction that restricts certain sales of XRP to banks and payment processors.
According to legal experts, Ripple’s efforts to overturn the injunction could be a reason why the SEC has not yet dropped its case. Attorney Jeremy Hogan has suggested that Ripple may be engaging with the Second Circuit Court of Appeals to contest the ruling.
Meanwhile, Ripple Chief Technology Officer (CTO) David Schwartz has dismissed concerns about XRP inflation. Schwartz reaffirmed that XRP’s total supply cannot be increased under the XRP Ledger’s code.
“There is literally no function to create any more XRP. The code to do such a thing does not exist,” he stated.
As for the Ripple vs. SEC lawsuit, it is currently under review at the Second Circuit Court of Appeals. The SEC submitted its arguments to the court on January 15, 2025, and Ripple has until April 16 to file its response.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Coinbase CEO Brian Armstrong has announced plans to hire 1,000 employees in the United States in 2025, attributing the decision to recent regulatory advancements under President Donald Trump’s administration. Armstrong made the statement following the White House Crypto Summit, where he and other industry leaders met with government officials to discuss crypto regulation policies.
Coinbase CEO Brian Armstrong Announces 1,000 New U.S. Jobs
After attending the White House Crypto Summit, Coinbase CEO Brian Armstrong took to X (formerly Twitter) to reveal the company’s hiring plans. He stated that the regulatory landscape in the U.S. is improving, allowing the company to expand its workforce.
Armstrong credited the shift to President Trump’s leadership and the administration’s efforts to establish clear guidelines for crypto regulation. He emphasized that this new clarity is enabling businesses like Coinbase to strengthen their presence in the U.S. market.
Coinbase CEO added,
“Historic day at the Whitehouse Digital Asset Summit. Thanks to Trump’s leadership, along with David Sacks, the U.S. now has a Strategic Bitcoin Reserve and emerging regulatory clarity. This is directly translating to economic growth in the U.S. For instance, Coinbase plans to hire about 1,000 employees in the U.S. this year as a result of this renewed growth.
During the White House crypto summit, Donald Trump announced plans to end Operation Chokepoint 2.0, signaling a shift toward a more supportive regulatory environment. Additionally, Trump emphasized the urgency of stablecoin legislation, aiming to establish clear regulatory guidelines before Congress adjourns for summer.
Regulatory Clarity Boosts Crypto Industry Growth
The White House Crypto Summit brought together government officials, industry leaders, and regulatory bodies to discuss the future of digital assets. The event marked a shift in the U.S. government’s stance toward the crypto industry, with an emphasis on fostering innovation.
One of the major developments discussed was the U.S. government’s decision to create a Strategic Bitcoin Reserve. Armstrong expressed his support for the initiative, stating that the U.S. government holding Bitcoin signals its recognition as a key financial asset.
A major factor influencing Coinbase CEO Brian Armstrong’s hiring announcement was the US SEC decision to drop its enforcement action against the company. With the case no longer proceeding, crypto businesses now look to Congress for regulatory clarity. Armstrong stated that this development allows Coinbase to focus on business expansion rather than ongoing legal battles.
Donald Trump Administration’s Crypto Policy
Donald Trump administration has positioned itself as an advocate for the crypto industry, with officials expressing their commitment to making the U.S. a leader in digital assets. Bo Hines, the executive director of the President’s Working Group on Digital Assets, reaffirmed the administration’s goal of establishing the U.S. as the global center for crypto innovation.
Hines stated that government agencies, including the Treasury and Commerce departments, are exploring ways to invest in Bitcoin without increasing the financial burden on taxpayers. Industry leaders, including Coinbase CEO Brian Armstrong, welcomed these policy changes.
Meanwhile, VanEck has shared budget-neutral strategies in which the U.S. government could expand its Bitcoin Reserve without taxpayer funding.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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