04-05-2025 
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Trump family launches Bitcoin mining venture with Hut 8
This week, the Trump family took another step deeper into the crypto world by acquiring a stake in a new Bitcoin mining operation called American Bitcoin. The new company, formerly American Data Centers Inc., has rebranded as part of the deal and is majority-owned and operated by publicly traded mining company Hut 8 (NASDAQ: HUT).
Eric Trump and Donald Trump Jr. are part of a group of investors taking a 20% stake in the new venture, while Hut 8 is contributing most of its ASIC miners to the effort for 80% ownership. The company’s business model is simple: mine and stockpile BTC with the intention of Initial Public Offering (IPO) in the future.
“It is a great honor to partner with Hut 8, a recognized leader in the Bitcoin space, as we launch American Bitcoin,” said Eric Trump, who now serves as the company’s Chief Strategy Officer.
Donald Trump Jr. added, “From the start, we’ve backed our conviction in Bitcoin—personally and through our businesses…Simply buying Bitcoin is only half the story. Mining it on favorable economics opens an even bigger opportunity.”
On the surface, this move signals a deeper commitment from the Trump family toward the cryptocurrency industry, a space they have made sure to vocalize their support for. But as a bystander, this move could also be a market signal. Every major Trump-affiliated crypto initiative to date, ranging from the launch of the $TRUMP memecoin to Eric Trump’s tweet telling his audience to buy Ethereum, has been followed by significant drops in the market. Since the announcement of American Bitcoin, the price of BTC has already fallen about 2%. This is most likely a coincidence, but it’s beginning to become a bit of a noticeable pattern that whenever the Trump family launches a new product in the crypto world, crypto prices subsequently fall… similar to how Jim Cramer says something about the stock market, and it tends to do the opposite.
It’s also important to remember that even though the Trump family has a pro-crypto, stockpile BTC narrative, their incentives are much different than those of the average consumer or enthusiast. While their business ventures support the idea that they are betting on long-term, multi-year price appreciation, it’s important to remember that profit keeps a business up and running. It’s safe to assume that at least a fraction of what the family is stockpiling will be sold off or collateralized at some point in the future if prices climb high enough.
Circle to IPO under ticker CRCL
Circle, the company behind USDC, the second most traded stablecoin by volume, has filed its S-1 with the Securities and Exchange Commission (SEC), signaling plans to go public via an IPO. If successful, this would make Circle the first crypto company to IPO under the pro-crypto Trump administration.
However, this isn’t their first attempt to go public. In 2022, Circle tried to go public via a merger with the special purpose acquisition company (SPAC) Concord Acquisition Group ($CND). However, the deal was terminated when the SEC failed to approve the required S-4 filing in time (the document that would have given the deal the green light to proceed). At that time, the agency was cracking down on all things crypto, and regulatory uncertainty made going public as a company that dealt with cryptocurrencies very challenging.
However, the times have changed. With Gary Gensler out of his post at the SEC and a pro-crypto administration in place, the SEC and White House have created a much friendlier regulatory environment for blockchain companies. President Trump has a stake in several crypto ventures and has turned the U.S. into a “crypto capital” part of his public agenda.
However, although the IPO will likely be a boon for Circle itself, retail investors have reason to be cautious. Historically, IPOs haven’t gone well for blockchain companies. Coinbase (NASDAQ: COIN), for example, IPO’d in April 2021 at $381 a share and peaked at $429.54 per share, but currently trades far below that number at $177.22 while showing no signs of recovering to its IPO price. For this reason, crypto IPOs—really most IPO in general—can be seen as “top signals,” suggesting that insiders are cashing out at market peaks.
Regardless, Circle is expected to trade on the New York Stock Exchange (NYSE) under the ticker CRCL. On top of that, rumors are already circulating that other crypto companies will follow suit, riding this wave of pro-crypto policy and sentiment and making efforts to IPO. For instance, Kraken has already laid the groundwork to IPO in 2026.US stablecoin bill moves forward
On April 2, the U.S. House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, a significant step toward creating the first piece of federal legislation specifically focused on stablecoins. The vote passed 32-17 and moved the bill to the full House of Representatives for consideration.
The STABLE Act would require issuers to hold 1:1 reserves backed by highly liquid assets like U.S. dollars and Treasury bills if enacted. It would also mandate monthly reserve disclosures and third-party audits from registered public accounting firms.
While the bill creates a clearer framework, it formalizes practices many U.S.-based stablecoin issuers follow. In that sense, it feels more like a public declaration of existing rules than a transformation of the regulatory landscape.
However, the creation of the STABLE Act will probably prove valuable in the near future, as the current regulatory environment around crypto in the United States could attract new players to the space that would’ve otherwise launched stablecoins with unorthodox or non-compliant models.
That being said, the STABLE Act didn’t come without criticism. One of the most controversial provisions prohibits stablecoin issuers from paying interest or yield to holders. That means companies can rake in passive income from reserves while holders get nothing in return. Coinbase CEO Brian Armstrong recently argued that U.S. stablecoin legislation should allow users to earn interest—but that recommendation didn’t make it into the version that passed the committee.
Another layer of controversy involves President Trump, who has a financial stake in World Liberty Financial (WLF), a company that recently launched its stablecoin. Critics argue that this legislation could increase the legitimacy, and therefore the market value, of stablecoins, which would directly benefit the president and raises the question of whether a conflict of interest exists between some of the crypto legislation he is promoting and passing and his own business ventures and activities. However, no amendments were made to address this potential conflict of interest.
Although this bill is indefinitely a step forward for digital assets, much like the crypto legislation and approach this administration has taken to date, it benefits the crypto corporations offering products and services much more than it does consumers and digital asset enthusiasts, even though the latter is the group of people who helped build the blockchain industry into what it is today.
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