Trump-Linked DeFi Platform Triples Ether Holdings + US Crypto Czar Criticizes Government’s Bitcoin Sales Ahead of White House Summit

Trump-Linked DeFi Platform Triples Ether Holdings Amid Market Volatility

Trump’s World Liberty Financial (WLFI) DeFi platform significantly increased its Ether holdings over the past week, tripling its position as ETH briefly dipped below $2,000. Data from Arkham Intelligence shows WLFI added around $10 million in ETH, alongside $10 million in Wrapped Bitcoin (WBTC) and $1.5 million in Movement Network (MOVE) tokens.

Despite these acquisitions, WLFI’s portfolio still sits on an unrealized loss exceeding $89 million across nine tokens, according to Lookonchain. The purchases occurred during a volatile period for the crypto market, exacerbated by macroeconomic concerns and the $1.4 billion Bybit hack.

WLFI’s investments follow the launch of its “Macro Strategy” fund, aimed at diversifying holdings and enhancing stability within the DeFi ecosystem. Speculation also continues around the Trump family’s potential deeper involvement with Ethereum, with industry figures hinting at large-scale blockchain initiatives.

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US Crypto Czar Criticizes Government’s Bitcoin Sales Ahead of White House Summit

Ahead of a major crypto summit at the White House, AI and crypto czar David Sacks criticized the U.S. government’s handling of its Bitcoin holdings, stating that selling 195,000 BTC over the past decade for $366 million cost taxpayers billions. If held, those assets would now be worth over $17 billion.

The government still holds approximately 198,109 BTC, worth nearly $18 billion. Meanwhile, President Trump is set to address industry leaders and push forward plans for a “Crypto Strategic Reserve,” which would include Bitcoin, Ethereum, XRP, Solana, and Cardano. Experts questioned the inclusion of XRP and ADA due to their lower developer activity and decentralization compared to BTC and ETH.

Sacks, who faced scrutiny over potential conflicts of interest, confirmed he sold all his crypto holdings before joining the administration. Reports suggest Trump is particularly focused on a Bitcoin-centric reserve, with further details expected at the summit.

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Senate Bill Seeks to Block Reputational Risk Rules Amid Crypto Debanking Concerns

Senate Banking Committee Chair Tim Scott introduced legislation to prevent federal regulators from using reputational risk as a factor in bank supervision, responding to concerns from the crypto industry about financial sector access. The bill, called the Financial Integrity and Regulation Management Act, aims to stop regulators from leveraging reputational risk against federally legal businesses.

Scott and other Republican sponsors argue that agencies have weaponized this concept to justify debanking certain industries, including crypto firms. The legislation has backing from the American Bankers Association, the Blockchain Association, and the Bank Policy Institute.

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Wall Street Journal