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Donald Trump Appoints David Sacks to Head AI and Crypto Initiatives at White House
President-elect Donald Trump has appointed Yammer founder and former PayPal COO David O. Sacks as the “White House A.I. and Crypto Czar.” In this role, Sacks will shape U.S. policy on artificial intelligence and cryptocurrency to enhance American competitiveness. He will also develop a legal framework to provide clarity for the crypto sector and chair the Presidential Council of Advisors for Science and Technology. This appointment follows Trump’s recent pro-crypto moves, including naming former SEC Commissioner Paul Atkins to lead the agency after Gary Gensler's departure.
Circle Announces USDC as First Stablecoin Compliant with Canada’s New Listing Rules
Circle has announced that its USDC stablecoin is the first to comply with Canada's new Value-Referenced Crypto Asset (VCRA) regime, enabling it to remain listed on Canadian-registered crypto platforms beyond the Dec. 31 compliance deadline. Circle stated that this milestone aligns USDC with Canadian Securities Administrators' (CSA) regulations and Ontario Securities Commission requirements. The firm aims to enhance cross-border payments and settlement efficiency in Canada. This follows Circle’s global compliance efforts, including adherence to the EU’s MiCA framework and licensing in Singapore. USDC is the second-largest stablecoin by market cap at $40.3 billion.
Base Hits Record 8.8 Million Daily Transactions, Setting New All-Time High
Base reached a record 8.8 million daily transactions on Nov. 28, driven by growing demand for AI agent protocols like Virtuals, which enable AI co-ownership and monetization in digital spaces. Network fees surged to a three-month high of $766,000, reflecting increased block space demand, while Base’s Total Value Locked (TVL) climbed to $3.6 billion with $227 million in weekly net inflows. The platform’s rapid growth, supported by innovative AI use cases and engagement-focused projects, underscores broader trends in Layer 2 ecosystem development but also raises security challenges, as highlighted by the Freysa AI incident where a user exploited vulnerabilities to extract $47,000 in crypto.
Trading Desk Insights
The crypto market is quite undecided these days. Early in Thursday's trading session, bullish momentum drove valuations above the $103,000 threshold, only to be sharply reversed by bearish pressure, bringing the figures down to $91,000. Presently, the market has found some stability, hovering around $98,000. In the last 24 hours, market liquidations have escalated, surpassing the $1 billion mark. This uptick aligns with our previous assessments of an overheated market environment, underscored by elevated funding rates.
On a macroeconomic level, conditions are seemingly favorable for digital assets. The combination of accommodative monetary policies and robust economic indicators supports the potential for growth in the cryptocurrency sector. This morning’s release of the November labor report further emphasizes this perspective, reporting a substantial increase in nonfarm payrolls by 227,000, surpassing the forecast of 218,000 and significantly outpacing October's modest rise of 12,000. Concurrently, the unemployment rate has edged up to 4.2%, aligning with market expectations. Market sentiment has shifted accordingly, with the probability of an impending rate cut in two weeks escalating to 87%, up from 71% the previous day and 66% a week earlier.
In regulatory news, a contentious legal confrontation between the cryptocurrency industry and the Federal Deposit Insurance Corporation (FDIC) has led to the disclosure of previously confidential documents. These documents reveal that the FDIC has actively directed U.S. banks to curtail their involvement with digital assets throughout 2022. Extracted from litigation initiated by Coinbase Inc., these communications indicate a concerted regulatory initiative to distance crypto enterprises from traditional banking channels—an effort that critics have dubbed "Operation Chokepoint 2.0."
Furthermore, in a notable political development, venture investor and renowned podcaster David Sacks is set to join the upcoming Trump administration as the "White House A.I. & Crypto Czar." Announced via President-elect Donald Trump's platform on Truth Social, Sacks is tasked with spearheading the development of a comprehensive legal framework for the cryptocurrency industry.
Crypto Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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