WSJ What’s News: How Crypto Has Earned the Trump Family Billions
Episode Release Date: August 13, 2025
Host: Azhar Sukri
Reporters: Angus Berwick and Patricia Kausman
1. The Trump Family's Cryptocurrency Empire
The Trump family's venture into cryptocurrency has emerged as a significant financial success, generating approximately $4.5 billion since the election—surpassing other segments of President Trump's business interests.
Key Partnership with PancakeSwap:
A pivotal factor in this success is the strategic partnership with PancakeSwap, an online trading platform facilitating the buying and selling of cryptocurrencies. As Patricia Kausman explains:
"World Liberty Financial created a cryptocurrency called USD1, pegged to the US dollar. Their partnership with PancakeSwap in June incentivized users to trade USD1 for other tokens, significantly boosting USD1's trading volume."
[01:17]
Financial Mechanics:
World Liberty Financial profits by reinvesting the circulation of USD1 into government bonds and money market funds. With over $2 billion of USD1 in circulation, the venture is projected to earn around $80 million annually based on current interest rates.
2. Binance Founder’s Controversial Ties
The Trump family's crypto success is intertwined with Binance, the world's largest centralized crypto exchange. Patricia Kausman provides insight into this connection:
"PancakeSwap, created by Binance, has been instrumental in driving USD1 trading volumes. Concurrently, Binance's founder, CZ, is seeking a pardon from President Trump following legal troubles related to anti-money laundering controls."
[03:00]
Legal Troubles and Implications:
In 2023, Binance faced scrutiny for lax anti-money laundering practices, resulting in CZ’s four-month imprisonment in the US and a hefty $4.3 billion fine for the exchange. Despite these issues, CZ appears to downplay any connection between his legal battles and his seeking of a presidential pardon.
3. White House Response and Conflict of Interest Allegations
Addressing the allegations of conflicts of interest surrounding the Trump family's crypto activities, the White House maintained a firm stance:
"The media continues to try to create conflicts of interest where they don't exist. Neither the president nor his family have ever engaged or will ever engage in conflicts of interest."
— White House Press Secretary, [04:02]
This statement underscores the administration's position against perceived media attacks, emphasizing a denial of any wrongdoing related to their business ventures.
4. Federal Takeover of Washington D.C.'s Police Department
In a significant move, over 800 National Guard troops have been deployed to Washington D.C., marking a substantial shift in the city's security landscape. The Trump administration has placed the city's police department under federal control, citing a focus on enhancing operational efficiency and reducing crime.
Details from Press Secretary Caroline Levitt:
"Within these 30 days, our entire focus is making sure that this is the most efficient operation possible and that we are removing as many criminals from the streets and we are cleaning up DC as best as we can."
[05:37]
Potential Extension:
Federal control may extend beyond the initial 30-day period, pending approval from both the House and Senate. Current statistics indicate a 35% drop in violent crime in Washington D.C. over the past year, the lowest in over three decades.
5. U.S. State Department's Altered Human Rights Report
The Trump administration's priorities have significantly influenced the recently released human rights report by the State Department. The revised document has faced criticism for its perceived downplaying of issues such as LGBTQ rights and government corruption, particularly in favored nations like El Salvador.
Impact of Political Appointees:
Current and former officials have noted that political appointees have reshaped the report’s focus, enhancing criticisms of European allies regarding freedom of expression while reducing scrutiny on domestic issues within allied nations.
"The report addresses abuses that had not previously been covered well, as Canada tries to negotiate a new trade deal and security relationship with the U.S."
[05:37]
6. Canada-U.S. Trade War: Alcohol and Canola at the Forefront
The ongoing trade tensions between Canada and the U.S. have seen the latest battlegrounds in alcohol and canola exports.
A. Alcohol Boycotts Impacting U.S. Distillers
Canada has taken a strong stance against U.S. alcohol imports, leading to significant financial repercussions for American distillers who rely on the Canadian market.
Key Points:
- Eight of Canada's Ten Provinces have ceased purchasing U.S. alcohol, severely impacting sales.
- Economic Impact:
- Ontario, Canada's largest province, saw sales of U.S. wines and spirits drop by approximately $700 million last year.
- Industry estimates indicate a 62% reduction in U.S. distilled spirits exports in the first half of the year compared to the previous year.
Quotes from Vipal Monga:
"Eight of the country's 10 provinces have stopped buying US alcohol, which is really hurting many US distillers who depend on Canada as their largest export market."
[08:07]
"Ontario sold roughly $700 million worth of wine spirits last year, but a decree by the provincial government in March forced government-owned liquor stores to remove bottles of Jack Daniels, Maker's Mark, and Robert Mondavi cabernets from their shelves."
[08:27]
B. Canadian Countermeasures and Efforts to Restructure Trade Relations
In response, certain Canadian provinces have adjusted their stance in an attempt to ease trade tensions.
Notable Developments:
- Alberta, an oil-rich province, resumed selling U.S. alcohol and wine in June to foster better trade relations.
- Post-boycott, there has been a 30% surge in U.S. wine sales and a 7% increase in U.S. whiskey sales, driven by Canadian consumers looking to stock up.
Additional Insights:
Prime Minister Mark Carney highlighted that approximately 85% of Canada’s trade with the U.S. remains tariff-free under the USMCA trade agreement, despite ongoing disputes over specific commodities.
"Canadians are using booze as the latest weapon in their trade war with the U.S., costing American distillers and wineries millions in lost sales."
[08:51]
Conclusion
The episode of WSJ What’s News delves into the multifaceted impacts of the Trump family's ventures into cryptocurrency, their intricate ties with major crypto exchanges, and the broader geopolitical implications involving trade wars and federal interventions. From lucrative crypto partnerships to significant shifts in international trade relations, the story encapsulates the dynamic interplay between business interests and political maneuvers shaping today's global landscape.
This summary is based on the podcast transcript provided and aims to encapsulate all key discussions, insights, and conclusions presented during the episode.