WLF’s ETH purchases were likely funded by proceeds from its WLFI token sale. Meanwhile, outgoing Senator Sherrod Brown warned about crypto's risks during his final Senate speech, while Senator Elizabeth Warren prepares to take on a critical Democratic leadership role. Alabama State Auditor Andrew Sorrell recently advocated for a state Bitcoin reserve to boost financial stability and attract more innovation, despite the slow legislative progress on crypto adoption in the state. World Liberty Financial Increases Ethereum Holdings World Liberty Financial, a crypto project that is backed by President-elect Donald Trump, recently bought $5 million in Ethereum (ETH). This raised its total ETH holdings to over $50 million. The purchase was made through a wallet linked to an Aave fork, which executed three transactions to receive 1,285 ETH from CoW Swap, a decentralized exchange. Currently, ETH is trading around $3,830. ETH price action over the past 24 hours (Source: CoinMarketCap ) The wallet seems to be using profits from the ongoing WLFI token sale to buy the ETH by converting stablecoin holdings. This strategy could indicate that World Liberty Financial is planning to engage more deeply with the crypto economy, and considers ETH as a better reserve asset than the U.S. dollar. Ethereum investor Eric Conner commented that the Trump family is actively converting stablecoins into ETH rather than holding them. World Liberty's terms state that the Trump family’s limited liability company will receive 75% of the WLFI token sale proceeds and manage the treasury as it sees fit. According to Arkham Research, the World Liberty wallet holds almost $73 million in cryptocurrencies, including over $50 million in ETH, $10 million in wrapped bitcoin, and various stablecoins. Since its inception, World Liberty conducted 146 swaps on CoW Swap. The Dec. 11 transaction was one of its largest in recent weeks. The project also purchased around 2,000 ETH nine days ago and nearly 3,000 ETH 12 days ago. Since its launch on Oct. 15, the project has sold more than $55 million in WLFI tokens. Although this is a pretty impressive number, it still falls short of its $300 million fundraising goal. The token sale accepts ETH, USDC, and USDT, but is limited to accredited investors in the U.S. with specific income or net worth requirements. Trump shifted away from being a Bitcoin skeptic to a supporter of the crypto industry. He has also made promises to enhance the crypto landscape, including appointing a “Crypto Czar” and advocating for the World Liberty platform to position America as the crypto capital of the world. Sherrod Brown Exits Senate With Warnings on Crypto and AI Democratic Senator Sherrod Brown delivered a parting message to U.S. lawmakers in the Senate Banking Committee as he prepares to leave office in January. In his prepared remarks for a Dec. 11 hearing, Brown warned against the influence of corporate interests under the incoming administration of President-elect Donald Trump. The Ohio senator accused Trump of allowing corporate entities to exploit workers and customers. He also warned about the potential weakening of the Consumer Financial Protection Bureau (CFPB) and urged lawmakers to safeguard the institution. Brown specifically mentioned some emerging risks like algorithmic pricing, artificial intelligence, and cryptocurrency as threats to the financial stability of working Americans, and even accused these sectors of enriching corporate elites at the expense of ordinary citizens. Senator Sherrod Brown Brown’s departure was announced after his loss to Republican Bernie Moreno in the recent Senate race, a contest that was influenced by large financial contributions from crypto-backed political action committees. These PACs actually spent more than $40 million on ads. The outcome helped shift Senate control to Republicans. Massachusetts Senator Elizabeth Warren is set to become the ranking Democrat on the Banking Committee. Both Brown and Warren have been very critical of the crypto industry, and consistently expressed skepticism toward its impact on financial regulation and consumer protection. Meanwhile, the Senate Banking Committee recently postponed a vote on SEC Commissioner Caroline Crenshaw’s renomination. Crypto advocacy groups lobbied against Crenshaw by arguing that her potential continuation until 2029 could hinder industry growth. With SEC Chair Gary Gensler stepping down in January, Crenshaw will remain one of only two Democratic commissioners at the regulatory body, alongside Jaime Lizárraga. Democrats Finalize Leadership Roles As the 119th United States Congress approaches, Democratic lawmakers have finalized their ranking members for key committees in preparation for their shift to minority status. California Representative Maxine Waters will remain the ranking member of the House Financial Services Committee through 2025. This committee oversees legislation impacting the financial services sector, including cryptocurrency. Republican Patrick McHenry, the current chair, will leave office on Jan. 3. In the Senate, Republicans are set to take control of the Banking Committee as Democrats lose their majority. As mentioned above, Massachusetts Senator Elizabeth Warren will serve as the ranking member after her reelection victory over Republican John Deaton. The committee oversees the SEC and other crypto-relevant regulators. South Carolina Senator Tim Scott , a pro-crypto advocate, is expected to take over as chair. Senator Elizabeth Warren Changes are also anticipated in the Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission (CFTC). With Democratic Senator Debbie Stabenow retiring, Amy Klobuchar may step into the ranking member role, while Republican John Boozman is poised to become chair. The CFTC could gain some expanded authority over digital assets if the Financial Innovation and Technology for the 21st Century Act is enacted in the next Congress. This could potentially increase its influence relative to the SEC. Alabama Auditor Pushes for State Bitcoin Reserve Alabama State Auditor Andrew Sorrell recently advocated for establishing a state Bitcoin reserve due to the benefits of cryptocurrency for attracting business and enhancing financial stability. In an interview with 1819 News, Sorrell stated that early adoption of crypto-friendly tax and regulatory frameworks will position Alabama as a leader in attracting investment and innovation. He also argued that Bitcoin and Ethereum exchange-traded funds (ETFs) now make it easier for states to invest in digital assets and they provide a better value proposition compared to traditional investments like bonds. Sorrell proposed that Alabama's Bitcoin reserve be modeled on the Federal BTC reserve suggested by President-elect Donald Trump. He recommended accumulating Bitcoin through monthly purchases over two years, and wants to take advantage of its resilience against inflation and the potential risks of relying heavily on the U.S. dollar as the global reserve currency. Despite Sorrell’s enthusiasm, Alabama’s progress on crypto adoption has been rather slow. The state passed legislation in May to establish the Alabama Blockchain Study Commission, which is tasked with examining issues like crypto regulation, taxation, and mining. The commission is set to report its findings to the Legislature by 2026. However, a bipartisan bill aimed at protecting digital asset storage, mining, and node operations from restrictive regulations and additional taxation failed to pass this year. On the federal level, Alabama is represented by pro-crypto Senator Tommy Tuberville, who is still active in advancing crypto-related legislation.
