Donald Trump’s reported move to acquire the cryptocurrency firm Bakkt could lead to a contentious approval process in New York, potentially putting him at odds with Governor Kathy Hochul’s administration, according to sources familiar with the matter.
Trump Media and Technology Group (TMTG), the parent company of Truth Social, is nearing a deal to acquire Bakkt, an all-stock transaction first reported by the Financial Times. Bakkt, previously led by Kelly Loeffler—a former U.S. senator and Trump loyalist recently nominated for the Cabinet role of small business administrator—holds three valuable licenses from the New York Department of Financial Services (DFS): a virtual currency license, a money transmitter license, and a limited-purpose trust charter.
Loeffler’s husband, Jeff Sprecher, CEO of Intercontinental Exchange, owns a 55% stake in Bakkt, while the company itself has a market value of roughly $380 million. Bakkt’s licenses make it a significant asset, potentially setting TMTG among the few entities capable of conducting cryptocurrency transactions within New York State.
Ownership Shift and Potential Conflict
On Friday, Trump transferred his estimated $4 billion stake in TMTG into a revocable trust controlled by his eldest son, Donald Trump Jr., who will now wield “sole voting and investment power,” according to SEC filings. Although the president-elect retains indirect ownership of the trust and can reclaim control at any time, sources believe the move was intended to establish distance between Trump and TMTG’s operations.
“This move distances the president-elect from whatever happens next at Truth Social—be it securing licenses, mergers, or other ventures,” an industry insider told The Post. However, they noted, “This still sets up a potential clash between Governor Hochul and the Trump family. Trump retains a financial interest and would reap profits from any company revenue.”
Gov. Hochul’s administration, which oversees the DFS, may scrutinize the license transfer, especially considering Trump’s legal and financial history, sources suggested. Hochul previously expressed a willingness to work with Trump on shared priorities but also reaffirmed her commitment to upholding state rights, including regulatory oversight.
DFS Review and Implications
The Department of Financial Services, described as nonpartisan, must evaluate any license transfer under New York’s rigorous crypto regulatory framework. This includes vetting TMTG’s governance practices, controlling executives, and the specifics of the new trust arrangement.
“The Hochul administration would essentially have veto power over Bakkt’s licenses through their regulatory role,” one source said.
Former DFS official Matt Homer noted that the situation may raise unprecedented legal questions: “DFS will need to carefully examine the trust’s terms, including whether the shares revert to Trump. This level of scrutiny could complicate matters, even if the agency remains apolitical.”
Trump’s ongoing legal troubles may further complicate the approval process. Earlier this year, the president-elect was convicted on 34 felony counts in a Manhattan criminal case and faces a $454 million civil fraud judgment in New York. However, sentencing in the criminal case has been delayed following his election.
The Future of Bakkt and TruthFi
Amid speculation over its future role in TMTG’s operations, Bakkt reportedly plans to wind down its crypto custody services while retaining its other DFS-licensed activities. In a related development, TMTG recently filed a trademark for “TruthFi,” a proposed service offering crypto payments, digital asset trading, and custody.
While Trump has criticized current federal crypto regulations, sources suggest his administration could introduce a national crypto licensing framework, potentially neutralizing New York’s role in approving such deals.
Governor Hochul and TMTG representatives did not comment on the potential acquisition. Meanwhile, Bakkt reiterated its policy not to address “market rumors or speculation.”
