- Trump’s economic chief Kevin Hassett holds up to $5M in Coinbase stock, sparking concerns over regulatory conflicts of interest.
- Coinbase’s recent data breach has reignited debates on KYC rules as privacy risks grow for everyday crypto exchange users worldwide.
- U.S. leadership pushes for crypto innovation while top policymakers with deep crypto ties raise questions about fair market regulation.
Kevin Hassett, Director of the U.S. National Economic Council and Trump’s top economic advisor, disclosed Coinbase holdings worth between $1 million and $5 million. This revelation, reported by Bloomberg, underscores the growing connection between top policymakers and crypto powerhouses. Besides, he received $50,001 in salary for serving on Coinbase’s Academic and Regulatory Advisory Council. This council includes high-profile figures like former SEC Chair Jay Clayton and ex-CIA counsel Courtney Elwood, both also tied to Trump.
Hassett’s total reported assets are valued at no less than $7.6 million. His Coinbase stake is listed as vested stock, hinting at long-term alignment with the exchange. Moreover, he previously held a role with One River Digital Asset Management, a major crypto fund. Hence, his influence in shaping digital asset policy appears rooted in financial as well as strategic interests.
Deepening Crypto Ties in U.S. Economic Leadership
Hassett’s nomination last November to lead the National Economic Council aligns with Trump’s renewed push for crypto innovation. Following Trump’s pro-crypto executive order, the Council launched a digital asset working group. This team is actively proposing regulations aimed at boosting U.S. leadership in fintech and blockchain development.
Additionally, there’s growing scrutiny over potential conflicts of interest. However, the financial disclosure did not clarify whether Hassett must divest his Coinbase stake. Significantly, this raises concerns about impartiality as the Council crafts rules directly affecting companies like Coinbase.
Coinbase Data Breach Reignites KYC Debate
While leadership shifts unfold, Coinbase is battling its own controversy. In May, the exchange admitted that hackers accessed personal data of 70,000 users. The breach stemmed from bribery of overseas agents back in December 2024. Consequently, the incident sparked fresh criticism of Know Your Customer (KYC) protocols.
KYC mandates were meant to deter crime. However, critics argue the rules expose users to greater risks. Pseudonymous developer Banteg called KYC “security theater,” urging immediate reform. Moreover, centralized exchanges worldwide face similar issues as they store IDs, selfies, and utility bills.
Despite regulatory pressure, alternatives like zero-knowledge proofs remain technically complex and expensive. Hence, privacy advocates and developers continue to seek better tradeoffs between compliance and user safety.
