4-6-2025 – Kevin Hassett, the newly appointed Director of the U.S. National Economic Council and a key economic confidant of President Trump, has disclosed a substantial stake in Coinbase, valued between $1 million and $5 million. This vested stock holding, detailed in a Bloomberg report, signals a long-term commitment to the crypto exchange giant. Beyond his investment, Hassett earned $50,001 for his role on Coinbase’s Academic and Regulatory Advisory Council, a prestigious body that includes luminaries like former SEC Chair Jay Clayton and ex-CIA counsel Courtney Elwood, both of whom share connections to Trump’s inner circle.
Hassett’s financial portfolio, worth at least $7.6 million, also reflects his prior engagement with One River Digital Asset Management, a prominent crypto fund, hinting at a blend of strategic and financial interests that could shape his influence on digital asset policy. His appointment in November 2024 to helm the National Economic Council dovetails with Trump’s pro-crypto agenda, exemplified by an executive order that spurred the creation of a dedicated digital asset working group. This task force is crafting regulations to cement U.S. dominance in fintech and blockchain, positioning the nation as a global leader in the digital economy.
Conflict of interest concerns emerge
Yet, Hassett’s Coinbase ties have ignited scrutiny over potential conflicts of interest. His financial disclosure leaves unanswered whether he will divest his stake, raising questions about impartiality as the Council shapes policies that could directly impact Coinbase and its peers. The intersection of personal wealth and public duty is under the microscope, with observers keen to see how Hassett navigates this delicate balance.
Coinbase breach adds pressure on KYC rules
Meanwhile, Coinbase finds itself grappling with a separate storm. In May 2025, the exchange revealed that hackers compromised the personal data of 70,000 users, a breach traced back to the bribery of overseas agents in December 2024. The incident has reignited fierce debate over Know Your Customer (KYC) protocols, which require exchanges to collect sensitive user information like IDs and utility bills. Critics, including pseudonymous developer Banteg, have branded KYC as “security theatre,” arguing it heightens user vulnerability rather than curbing crime. The breach has amplified calls for reform, though alternatives like zero-knowledge proofs remain costly and complex, leaving privacy advocates and developers searching for a viable balance between regulatory compliance and user protection.
