Trump taps ex-Bakkt CEO Kelly Loeffler for Agriculture role amid acquisition of the crypto company

Donald Trump is reportedly offering former Bakkt CEO Kelly Loeffler the position of Secretary of Agriculture. Sources close to the matter have said the president-elect is meeting Loeffler at Mar-a-Lago to finalize the deal. Though as always with Trump, nothing is certain until he announces it himself.

Loeffler is no stranger to Trump’s circle, having raised millions for his 2024 campaign over the summer and hosting a star-studded debate watch party alongside Republican National Committee Chair Michael Whatley.

The guest list included key players like Senator Marco Rubio and Representative Elise Stefanik, now set to join Trump’s Cabinet as well.

Loeffler’s deep connections to both politics and finance, coupled with her family farm roots, make her a power player in shaping Trump’s rural strategy. She also co-chairs Trump’s inauguration committee, further cementing her role in his inner circle.

Loeffler’s family ties to Agriculture and controversial subsidies

Loeffler’s credentials for running the Department of Agriculture don’t just come from her political résumé. Her family farm, founded by her grandfather in the early 1900s in Illinois, is still operational and has received over $4.1 million in federal subsidies since 1995.

According to data from the Environmental Working Group, her father, Don Loeffler, received nearly $1.3 million, while her brother Brian collected $1.6 million. Other family members, including her sister-in-law and nephew, also benefited from these programs.

Federal farm subsidies have long been a lifeline for American farmers, providing funds for everything from disaster recovery to research. During Trump’s first term, his administration handed out over $20 billion to farmers hit hard by his trade war with China.

Loeffler often emphasizes her upbringing on the family farm, portraying herself as a proud Midwesterner with deep roots in agriculture. However, critics have pointed out discrepancies in subsidy amounts and questioned the relevance of her wealth to the average farmer’s struggles.

The Loeffler family farm, now managed by her brother and his wife, represents both a legacy and a liability for the former senator. During her 2020 Senate campaign, critics questioned her family’s reliance on federal assistance.

Her husband, Jeffrey Sprecher, is the CEO of Intercontinental Exchange (ICE), the company that owns the New York Stock Exchange.

The Bakkt acquisition

In a parallel development, Trump’s media company, Trump Media and Technology Group (TMTG), is in advanced talks to acquire Bakkt, a crypto trading platform. Bakkt, originally launched by ICE and valued at $150 million, has faced ongoing financial challenges, including a near delisting from the NYSE.

TMTG’s stock has skyrocketed since Trump’s election victory, giving the company a $6 billion valuation despite modest revenues of $2.6 million this year. The high valuation has given TMTG significant leverage for acquisitions, making Bakkt an attractive target. After news of the talks broke, Bakkt shares surged 162%, while TMTG shares rose nearly 17%.

Kelly Loeffler’s ties to Bakkt are impossible to ignore. As its first CEO, she oversaw the platform’s launch and its initial focus on cryptocurrency custody services.

Despite gaining regulatory approval in New York, Bakkt’s custody business has struggled, reporting just $328,000 in revenue while losing $27,000 in the last quarter. Insiders have said the custody division won’t be part of the TMTG deal, as Bakkt shifts its focus to building trading platforms for institutional investors.

The acquisition also fits Trump’s crypto ambitions. In addition to Bakkt, Trump has been linked to World Liberty Financial, a crypto venture founded by his longtime business associates.

Crypto markets have responded enthusiastically to Trump’s win, with Bitcoin surging over 30% amid speculation of favorable regulations under his administration.

Loeffler’s political rise and challenges

Loeffler was appointed to the Senate in 2019 by Georgia Governor Brian Kemp to fill the seat of retiring Senator Johnny Isakson. Trump, however, had favored then-Representative Doug Collins for the role.

This led to a bitter rivalry between Loeffler and Collins, with both candidates vying to prove their allegiance to Trump. The Republican infighting ultimately cost Loeffler her seat, as she lost the 2021 runoff election to Democrat Raphael Warnock.

Loeffler’s tenure in the Senate was brief but eventful. She publicly supported Trump’s efforts to challenge the 2020 election results, announcing plans to object to Georgia’s certification.

But after the Capitol riot on January 6, Loeffler reversed her position, saying, “I cannot now in good conscience object to the certification of these electors.” Her decision alienated hardcore Trump supporters and brought criticism from both sides of the political spectrum.

Stock trades made during the early stages of the COVID-19 pandemic further tarnished Loeffler’s reputation. She and her husband faced allegations of insider trading, though they denied wrongdoing and pledged to divest from individual stocks.

The controversy became a focal point of her 2020 campaign, with opponents questioning her ethics and commitment to public service.

Despite these challenges, Loeffler remains a key figure in Trump’s orbit. Her financial acumen and political connections make her a key asset as Trump seeks to expand his influence in both traditional and emerging industries.

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