Leaders of the cryptocurrency sector met in Washington on Friday for what the Trump administration has called the first White House crypto summit.
Among the digital asset, tech and crypto chief executives in attendance at the meeting were Coinbase's Brian Armstrong, Robinhood's Vlad Tenev, Chainlink's Sergey Nazarov, Ripple's Brad Garlinghouse and Kraken's Arjun Sethi.
“After the previous administration unfairly prosecuted the digital asset space, President Trump’s policy vision represents a new era for digital financial technology,” read a White House press release. “The administration is committed to providing a clear regulatory framework, enabling innovation, and protecting economic liberty.”
Faryar Shirzad, chief policy officer for Coinbase, said that the meeting was an inflection point for the US.
Shortly after the meeting, the US Office of the Comptroller of the Currency (OCC) made an announcement reaffirming that cryptocurrency activities were permissible for US national banks and loosened regulations.
“Today’s action will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology,” said acting OCC comptroller Rodney Hood.
“I will continue to work diligently to ensure regulations are effective and not excessive, while maintaining a strong federal banking system.”
The much anticipated gathering took place a day after Mr Trump signed an executive order establishing a Bitcoin strategic reserve.
That reserve will be capitalised with Bitcoin owned by the federal government “that was forfeited as part of criminal or civil asset forfeiture proceedings”, David Sacks, the recently appointed White House AI and crypto tsar, said on Thursday, trying to blunt some of the criticism that had been levelled at the initial plan.
“This means it will not cost taxpayers a dime. It is estimated that the US government owns about 200,000 Bitcoin; however, there has never been a complete audit … The US will not sell any Bitcoin deposited into the reserve. It will be kept as a store of value.”
Among those who criticised the plan was former US labour secretary Robert Reich.
“This US crypto reserve could result in a direct wealth transfer of wealth from taxpayers to crypto industry donors and President Trump himself, who recently launched his own memecoin and plans to create a crypto exchange through his media company,” Mr Reich wrote on Instagram.
Although he previously expressed concern over the concept of digital currencies, Mr Trump has changed his stance on the sector.
Some have pointed out that former president Joe Biden's attempts to regulate crypto firms may have given Mr Trump a political opening to win the support of those with an affinity for the digital currency.
Support for crypto even made its way into the 2024 Republican National Committee's platform, and on the campaign trail Mr Trump consistently promised to take a completely different approach to Mr Biden. In response, crypto sector participants donated heavily to Mr Trump's presidential campaign.
Shortly after taking office, Mr Trump signed an executive order to “strengthen US leadership in digital finance”, widely seen as a major victory for the industry.
The Trump White House also quickly moved to drop investigations and litigation against crypto companies such as Coinbase, which had been heavily scrutinised by the Biden administration. Yet Mr Trump can be fickle about who and what he decides to support.
Sam Blatteis, chief executive of The Mena Catalysts, a market entry firm for Web3 multinationals expanding in the Gulf economy, said that crypto executives need to be able to read the room and adjust accordingly in the weeks and months ahead.
“The crypto firms need to talk in Donald Trump’s language, which means big deals, big job creation and America first,” Mr Blatteis told The National, adding that so far, cryptocurrency leaders appear to be doing that successfully.
“Crypto players are watching President Trump like traders watch Bitcoin, and it’s sometimes volatile, but it’s also full of opportunity.”
Mr Blatteis said that while the US government is only now taking a more enthusiastic approach to crypto and digital assets, other countries are already in that mindset.
“In the Gulf, with banks offering digital assets, the lines are blurring between old and new money,” he said.
But the enthusiasm is not universal. Crypto critics are plentiful, with some highlighting how much electricity is needed to maintain the cryptocurrency infrastructure.
Others point to a lengthy list of incidents in which crypto exchanges have been hacked, contradicting what some claim to be the biggest strength of the sector – security.
Despite those concerns, with Mr Trump winning four more years in the White House, the industry and its many enthusiastic supporters have managed to bolster their existence.
That enthusiasm was on full display in Abu Dhabi in December, when Mr Trump's son Eric delivered a speech predicting that Bitcoin would hit $1 million in value, and said his father would “fight like hell” to protect crypto from overregulation.
Friday's meeting at the White House was led by Mr Sacks and the digital asset working group’s executive director, Bo Hines.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
OPINIONS ON PALESTINE & ISRAEL
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Biography
Favourite Meal: Chicken Caesar salad
Hobbies: Travelling, going to the gym
Inspiration: Father, who was a captain in the UAE army
Favourite read: Rich Dad Poor Dad by Robert Kiyosaki and Sharon Lechter
Favourite film: The Founder, about the establishment of McDonald's
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
UAE currency: the story behind the money in your pockets
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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Power: 905hp
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HAJJAN
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
