WASHINGTON — U.S. President Donald Trump on Friday hosts top cryptocurrency players at the White House, a political boost for an industry that has struggled to gain legitimacy — and where the Republican president faces conflict of interest concerns.

The president’s “crypto czar,” Silicon Valley investor David Sacks, has invited prominent founders, CEOs and investors along with members of a Trump working group, to craft policies aimed at accelerating crypto growth, and providing legitimacy that the industry has long sought.

On Thursday night, Trump signed an executive order establishing a “Strategic Bitcoin Reserve,” a move that Sacks said made good on a campaign promise to an increasingly important component of his coalition.

Summit guests include twins Cameron and Tyler Winklevoss, founders of crypto platform Gemini, as well as Brian Armstrong of Coinbase and Michael Saylor, the boss of major bitcoin investor MicroStrategy.

In a post on X, Sacks said the event would take place as a roundtable, and despite industry interest, the White House would have to “keep it small.”

For believers, cryptocurrencies represent a financial revolution that reduces dependence on centralized authorities while offering individuals an alternative to traditional banking systems.

Bitcoin, the world’s most traded cryptocurrency, is heralded by advocates as a substitute for gold or a hedge against currency devaluation and political instability.

Memecoins

Critics, meanwhile, maintain that these assets function primarily as speculative investments with questionable real-world utility that could leave taxpayers on the hook for cleaning up if the market crashes.

The proliferation of “memecoins” — cryptocurrencies based on celebrities, internet memes, or pop culture items rather than technical utility — presents another challenge.

Much of the crypto industry frowns upon these tokens, fearing they tarnish the sector’s credibility, amid reports of quick pump-and-dump schemes that leave unwitting buyers paying for assets that end up worthless.

Trump also faces conflict of interest concerns.

U.S. crypto investors were major supporters of Trump’s presidential campaign, contributing millions of dollars toward his victory in hopes of ending the Biden administration’s deep skepticism toward digital currencies.

Trump also has significant financial ties to the sector, partnering with exchange platform World Liberty Financial and launching the “Trump” memecoin in January, as did his wife, Melania.

Once hostile to the crypto industry, Trump has already taken significant steps to clear regulatory hurdles.

Under Thursday’s executive order, the bitcoin stockpile will be composed of digital currency seized in U.S. criminal proceedings.

The use of these assets “means it will not cost taxpayers a dime,” Sacks said in a post Thursday night on X.

Sacks has said that if previous administrations had held onto their digital holdings over the past decade, they would be worth $17 billion today.

Trump also appointed crypto advocate Paul Atkins to head the Securities and Exchange Commission (SEC).

Under Atkins, the SEC has dropped legal proceedings against major platforms like Coinbase and Kraken that were initiated during Biden’s term.

The previous administration had implemented restrictions on banks holding cryptocurrencies — which have since been lifted — and allowed former SEC chairman Gary Gensler to pursue aggressive enforcement.

However, meaningful change will likely require congressional action, where crypto legislation has remained stalled despite intense lobbying efforts led by investors, including Trump ally Marc Andreessen, an influential venture capitalist.
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President Donald Trump is signaling a major change in how the U.S. will support growth in key domestic industries such as semiconductors. Michelle Quinn reports.
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SAN FRANCISCO, CALIFORNIA — A U.S. judge on Tuesday denied Elon Musk’s request to prevent OpenAI from becoming a for-profit business in a loss for the Tesla tycoon amid his feud with Sam Altman. 

U.S. District Court Judge Yvonne Gonzalez Rogers ruled that Musk and his xAI startup failed to prove an injunction against OpenAI was necessary as the case heads to trial. 

Musk sued in California federal court to stop OpenAI from transitioning from a nonprofit to a for-profit business, arguing the startup violated antitrust law and betrayed his trust in their mission as a co-founder of OpenAI. 

The judge wrote that, while Musk did not prove the need for an injunction, she is prepared to expedite a trial on that claim later this year. 

The ruling leaves OpenAI free to continue its transition from nonprofit to for-profit enterprise. 

Musk’s injunction bid argued that OpenAI’s co-founders, including chief executive Altman, “took advantage of Musk’s altruism in order to lure him into funding the venture,” according to court documents. 

Musk contended in filings that it was clear his backing of OpenAI was contingent on it remaining a nonprofit, offering a few email exchanges to support the claim. 

“Whether Musk’s emails and social media posts constitute a writing sufficient to constitute an actual contract or charitable trust between the parties is debatable,” the judge said in her ruling. 

OpenAI’s board chairman in February rejected a Musk-led offer to buy the valuable artificial intelligence company for $97.4 billion. 

“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” OpenAI Board Chair Bret Taylor said in a statement posted by the company on Musk-owned X, formerly Twitter. 

OpenAI currently operates in a hybrid structure, as a nonprofit with a money-making subsidiary. 

The change to a for-profit model, one that Altman says is crucial for the company’s development, has exacerbated ongoing tensions with Musk. 

Musk and Altman were among the 11-person team that founded OpenAI in 2015, with the former providing initial funding of $45 million.  

Three years later, Musk left the company, with OpenAI citing “a potential future conflict for Elon … as Tesla continues to become more focused on AI.” 

Musk established his own artificial intelligence company, dubbed xAI, in early 2023 after OpenAI ignited global fervor over the technology. 

The massive cost of designing, training, and deploying AI models has compelled OpenAI to seek a new corporate structure that would give investors equity and provide more stable governance. 
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