Donald Trump’s efforts to strengthen his relationship with the cryptocurrency sector are taking shape with a potential acquisition of the crypto trading platform Bakkt and key talks with industry leaders like Coinbase CEO Brian Armstrong.
As crypto excitement surged after the November elections, Trump, set to be inaugurated in January 2025, began discussions with Armstrong about strategic appointments within his administration. These conversations are part of wider preparations to reshuffle federal agencies to align with Trump’s policies, particularly concerning digital assets.
In anticipation of these changes, former SEC Chair Jay Clayton was appointed to the U.S. Attorney’s Office for the Southern District of New York, where plans to scale back crypto litigation soon followed. The pressure on current SEC Chair Gary Gensler has also increased, with many in the digital asset industry criticizing his anti-crypto stance.
Industry leaders are now focused on Trump’s pick for U.S. Treasury Secretary, with experts like Nic Carter suggesting the role will be crucial for easing restrictions on crypto and restoring access to banking for blockchain companies. Potential candidates include Kevin Warsh, Howard Lutnick, and Scott Bessent.
Meanwhile, Trump’s Media & Technology Group (TMTG), the parent company of Truth Social, is in advanced negotiations to acquire Bakkt through an all-stock deal. The deal, if completed, would increase Trump’s influence in the crypto space as Bitcoin and other cryptocurrencies continue their upward trend. The Financial Times reported that TMTG plans to use its stock to fund the acquisition, despite the company’s modest revenue compared to its $6 billion valuation.
Bakkt, which was founded by former Republican Senator Kelly Loeffler, is mostly owned by the Intercontinental Exchange (ICE). The acquisition would likely exclude Bakkt’s crypto custody business, which is licensed in New York. This potential deal signals Trump’s broader interest in cryptocurrency ventures, following his recent promotion of World Liberty Financial, another crypto business.
As TMTG seeks to diversify and benefit from the growing crypto market, negotiations over the specifics of the transaction, including ICE’s ongoing role, are still in progress.
