Musk-Trump Conflict Triggers Crypto Market Crash

President Trump and Elon Musk’s alliance imploded this week over the “One Big Beautiful Bill,” a $3.8 trillion tax-cut and spending package now at risk in the Senate. Musk publicly condemned the legislation as a “disgusting abomination” and accused Trump of betraying fiscal restraint in favor of political theater.

Trump, blindsided by the criticism, said he was “very disappointed in Elon” and accused the Tesla CEO of retaliating over cuts to EV subsidies. Musk fired back, claiming Trump owed him the presidency saying, “Without me, Trump would have lost the election, Dems would control the House.”

In the last hour Elon dropped yet another bombshell, claiming his former close friend Donald Trump appears in the Epstein files and that was the real reason they have not been made public. He also added to "Mark this post for the future. The truth will come out".

Behind the scenes, GOP insiders fear Musk’s revolt could tank the bill, which extends Trump-era tax cuts and guts federal programs to finance defense and immigration. The rift has already triggered donor unease, as Musk was the administration’s largest private backer and until last week, its top budget czar.

Crypto markets recoiled on Thursday, with Bitcoin falling to $100,845 (-3.57%), Ethereum sliding to $2,428 (-6.076%), and Solana plunging 7.67%, according to live market data. Tesla’s 15% stock collapse added pressure, amplifying fears that Washington’s crypto pivot may be collateral in the Musk-Trump divorce.

Trump Family Sends Legal Threat Over New Crypto Wallet

Donald Trump’s sons have sent a cease-and-desist letter to Fight Fight Fight, the group behind the Trump memecoin, over its new product “$TRUMP Wallet.” The wallet was announced Tuesday as a way for users to trade the memecoin and other tokens, in partnership with NFT marketplace Magic Eden. World Liberty Financial, backed by Trump’s family, is developing its own rival product and disputes the use of the name.

Trump Jr. and Eric Trump criticized the wallet publicly, stating it was unauthorized and misleading to users. Tensions escalated after the wallet’s website was pulled, reinstated, and then the project's X account was suspended. The memecoin has already generated over $300 million in revenue, with World Liberty holding 60% equity and 75% of token sales revenue.

Circle Shares Halted After Tripling On NYSE Debut

USDC stablecoin issuer Circle made its long-awaited NYSE debut Thursday under the symbol CRCL, with shares tripling in early trading. Priced at $31 for the IPO, the stock surged above $90 within the first hour, triggering multiple automatic trading halts. The company raised $1.1 billion in the offering, following years of delays and renewed crypto market momentum.

CEO Jeremy Allaire called the listing a major step toward building an internet-native financial system powered by digital dollars. Circle’s USDC currently boasts a $64 billion market cap and plays a key role in global crypto settlement rails. Analysts say the strong debut signals growing institutional demand for market-driven stablecoin infrastructure over state-issued digital currency efforts.

California Passes Bill To Seize Dormant Crypto Assets

California’s Assembly passed a bill that allows the state to take custody of cryptocurrencies left inactive on exchanges for over three years. AB-1052 would classify those assets under existing unclaimed property laws, enabling the state to hold, but not sell the tokens. The bill now moves to the Senate, where it could be amended or passed into law this summer.

Backers, including the Satoshi Action Fund, say the goal is to protect user assets, not liquidate them. Any reclaimed crypto would be returned in-kind to the original owner, not in cash. Critics warn the policy undermines privacy and pushes more users to self-custody, but lawmakers insist it mirrors long-standing treatment of forgotten financial assets.

Data of the Day

Tokenized real-world assets (RWAs) grew 260% year-to-date, hitting $23 billion in value as firms responded to greater crypto regulatory clarity. Most of the growth came from tokenized private credit and U.S. Treasury products, which together make up over 90% of the market. Binance Research credited the growth to improved investor access and increasing institutional participation in blockchain-based finance.

Despite lacking dedicated regulation, RWAs have benefited from broader SEC guidance and an improving compliance outlook. Investors view the sector as a safer alternative during volatile crypto markets, especially as Bitcoin stabilizes. The market is now closely watching the GENIUS Act, which could codify legal standards for stablecoins and token-backed assets in the USA.

More Breaking News

• The European Parliament will vote in July on a tech sovereignty plan aiming to boost digital independence in AI, cloud, and blockchain.
• Vitalik Buterin used privacy tool Railgun to move $2.6M in crypto, sparking a 15% surge in RAIL and renewed attention on DeFi anonymity.
• Singapore’s High Court rejected WazirX’s restructuring plan following a $230M exploit, but the exchange is considering an appeal.
• Hong Kong plans to allow crypto derivatives for pros and offer tax perks to fintech firms in a bid to rival major global hubs.
• HyperLiquid’s yield vault rebounded from March’s JELLY fiasco, growing by $250M and now offering 13.4% annual returns to depositors.
• Tether made a strategic investment in African startup Shiga Digital, expanding its footprint in blockchain-powered financial services.
• Berachain launched its 'Bectra' upgrade, becoming the first non-Ethereum chain to adopt EVM-compatible features from Pectra.

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