Trump Media and Crypto.com scrapped a $6.42 billion digital-asset treasury venture as Senate Democrats push ethics restrictions on White House crypto ties.
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Trump Media & Technology Group and Crypto.com scrapped a plan to build a $6.42 billion digital-asset treasury venture. The cancellation unwinds one of the largest crypto projects tied to President Donald Trump at a moment when his family’s digital-asset businesses face deepening scrutiny in Washington.
On Aug. 7, Trump Media, Crypto.com and Yorkville Acquisition Corp. said they had mutually agreed to terminate the proposed combination. The deal would have created Trump Media Group CRO Strategy, a publicly traded firm built around accumulating Crypto.com’s Cronos token.
The project ended less than a year after it was announced, at the peak of the corporate crypto-treasury boom. The planned funding package included $1 billion of CRO, $200 million in cash, $220 million from mandatory warrant exercises and a $5 billion equity line of credit from a Yorkville affiliate. The companies had said the vehicle’s sheer scale would let it control a historically large pool of tokens relative to CRO’s market capitalization.
They reversed course, citing market conditions and shifting business and stakeholder priorities, according to a joint statement. “After analyzing these proposed ETFs and DAT from every angle, we’ve reached the same conclusion: moving forward under current market conditions doesn’t make sense,” the statement said. “We will continue to pursue other ETF opportunities. As for the CRO committed to the DAT, we’ll find a better way to allocate these resources in order to drive revenue, increase demand and grow the value of the ecosystem.”
CRO fell 6% to $0.05009 following the news, its lowest since 2023.
The retreat lands at a politically sensitive moment for Trump’s crypto interests. His personal digital-asset income has become a central point of contention in negotiations over landmark U.S. crypto legislation. Senate Democrats are demanding restrictions on the ability of presidents and other senior officials to profit from a sector their administrations regulate.
Last year, Trump reported more than $1.4 billion of income from his family’s crypto ventures. That included almost $800 million connected to World Liberty Financial and another $635 million from Trump meme coin sales. The Trump family has generated at least $2.3 billion from crypto-related projects since his return to the White House in 2025, according to a crypto news report.
Those earnings now factor into negotiations over the CLARITY Act, the Senate’s effort to create a comprehensive regulatory structure for digital assets. Key Democratic senators have conditioned their support on stronger ethics restrictions covering political officials with crypto businesses.
The White House and lawmakers are discussing a bipartisan proposal that would require the president to divest from crypto-related businesses. Lawmakers have not finalized the provision. The dispute has helped stall legislation that once appeared to have a clearer path through Congress. Some Democrats who were once considered potential supporters have hardened their positions since the disclosure of Trump’s crypto income. They are pressing for divestiture requirements or other safeguards against officials who benefit financially from policies affecting digital assets.
The White House has rejected allegations that Trump’s crypto businesses create improper conflicts. In June, a spokesperson said neither Trump nor his family had engaged in conflicts of interest. The spokesperson argued that the administration designed its crypto policies to advance U.S. leadership in digital assets.
The CRO venture had also become part of that ethics debate. Crypto.com donated $1 million to Trump’s inauguration. It later contributed $10 million to MAGA Inc., a pro-Trump super PAC, after his 2024 election victory. The Securities and Exchange Commission subsequently closed an investigation into the exchange in March 2025.
At the time, Crypto.com said its political activity had no connection to the regulator’s decision. The exchange said the investigation ended because there was no legitimate case to pursue. Months later, Crypto.com and Trump Media unveiled their CRO treasury partnership.
Ethics specialists questioned the arrangement. Trump Media stood to obtain an ownership position in a venture that Crypto.com and Yorkville would largely capitalize, while the Trump administration controlled agencies that regulated digital assets. Trump Media and the White House rejected suggestions that the relationship represented a conflict.
The plan called for Trump Media to contribute intellectual property and receive shares and warrants in the proposed treasury company. Crypto.com would supply billions of CRO tokens, while Yorkville would provide much of the financing infrastructure. The arrangement formed part of a broader push by Trump Media into financial services and crypto. Under a separate 2025 agreement, Trump Media agreed to acquire roughly $105 million of CRO for its own balance sheet. Crypto.com agreed to purchase $50 million of Trump Media stock. Crypto.com also agreed to provide wallet infrastructure for a proposed rewards program across Truth Social and Truth+.
The demise of Trump Media Group CRO Strategy removes one of the largest proposed commercial links between the president’s publicly traded media company and the crypto industry. It does not resolve the broader conflict-of-interest fight. Senators are debating whether to require Trump to distance himself financially from crypto businesses before Congress passes industry legislation. That debate is moving scrutiny of his digital-asset empire closer to the center of Washington’s crypto agenda.
Supporters now have roughly 14 scheduled weekdays to rebuild a 60-vote coalition before the midterm campaign sharply narrows the calendar.
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