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Some Silicon Valley venture capitalists have begun to turn against President Joe Biden while openly touting their support for former President Donald Trump — a sea change for an industry that has overwhelmingly supported Democrats in years past.

Prominent moguls such as David Sacks, Chamath Palihapitiya, Marc Andreessen and Shaun Maguire have grown disillusioned with signature Biden policy proposals such as his call for a 25% “billionaire tax” as well as antitrust crackdowns waged by the Federal Trade Commission.

Its impossible to support Biden, Keith Rabois, an early executive at PayPal who also played a role in the growth of LinkedIn, Square and Slide, told The New York Times.

While Rabois said he was not a fan of Trump, he would be “focused on electing a GOP Congress and Senate.”

Tech executives are also unhappy with the stringent regulations imposed on the cryptocurrency sector by Gary Gensler, Biden’s pick to head the Securities and Exchange Commission.

Lina Khan, Biden’s chair of the FTC, has sought to move aggressively against large tech companies that critics say have amassed too much power in the marketplace.

Khan unsuccessfully challenged Microsoft’s $70 billion acquisition of video game maker Activision Blizzard as well as Meta’s attempt to buy virtual reality startup Within.

Last year, the FTC sued Amazon, accusing the e-commerce giant of being a monopoly.

Andreessen, founder of powerhouse VC firm Andreessen Horowitz, recently said there are “real issues” with the Biden administration.

A second Trump administration would be staffed by “very different kinds of people” particularly at the SEC and FTC, Andreessen said in a recent podcast interview.

Ben Horowitz, co-founder of Andreessen Horowitz, wrote in a blog post last year that his company would support any politician who backed “an optimistic technology-enabled future.”

Sacks, the entrepreneur and investor who made his fortune as chief operating officer at PayPal during its early days, plans to host a fundraiser for Trump as well as interview the former president on his “All In” podcast.

After the Jan. 6, 2021 riots at the US Capitol, Sacks said that the incident disqualified Trump from elected office.

But four years of a Biden presidency have changed Sacks’ mind, according to The New York Times.

“I have bigger disagreements with Biden than with Trump,” Sacks was quoted as telling a tech conference last week.

Sacks cited Biden’s tax proposal, which would penalize startup founders who are wont to offer stock options to employees.

Its a good reason for Silicon Valley to think really hard about who it wants to vote for, Sacks told tech investors at the conference.

Last month, Sacks was one of a handful of prominent tech moguls who attended an “anti-Biden” dinner alongside Elon Musk and Peter Thiel.

Palihapitiya, the venture capitalist who was Mark Zuckerberg’s vice president of user growth shortly after the founding of Facebook, has also flipped from backing Democrats in the past to endorsing Trump.

Palihapitiya, the founder of the venture capital firm Social Capital, plans to co-host the fundraiser for Trump alongside Sacks, according to the Times.

Such open expressions of support for Trump was virtually unheard of in Silicon Valley in recent election cycles.

Four years ago you had to issue an apology if you voted for him, Delian Asparouhov, an investor at the Thiel-backed Founders Fund, wrote on his X account.

Shaun Maguire, an investor at Sequoia Capital, has criticized Biden on social media, though he has refrained from directly supporting Trump.

Biden has been getting away with double standards his entire career

3 strike laws for thee but not for me (Hunter)

Keeping classified documents without punishment

And now withholding aid to an ally

Well see what happens this time https://t.co/cUh8qCRbMY

After Biden indicated that the US would withhold certain weapons to Israel in the midst of the war in Gaza, Maguire accused him of “getting away with double standards his entire career” — a reference to the Democrats’ drive to impeach Trump for threatening to withhold aid from Ukraine during his presidency.

“We’ll see what happens this time,” Maguire wrote on his X account on May 9.

The Post has sought comment from the White House.

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UK

UK ‘moving at glacial pace’ on national plan for defending foreign attack, say MPs

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UK 'moving at glacial pace' on national plan for defending foreign attack, say MPs

The UK lacks a national plan to defend itself from attack and is moving at a “glacial” pace to fix the problem despite threats from Russia and China, a report by MPs has warned.

With the whole country needing to understand what it means to be ready for war, the Defence Select Committee also said it had seen no sign of a promised “national conversation on defence and security” that was launched by Sir Keir Starmer in June.

Sky News and other journalists were even blocked on Monday from interviewing sailors aboard HMS Prince of Wales, the Royal Navy’s flagship aircraft carrier, in direct contrast to the prime minister’s stated aim of greater engagement.

Royal Navy aircraft carrier HMS Prince of Wales. File pic: AP
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Royal Navy aircraft carrier HMS Prince of Wales. File pic: AP

Public needs to know ‘what to expect’ from war

“We have repeatedly heard concerns about the UK’s ability to defend itself from attack,” said Labour MP Tan Dhesi, chair of the committee.

“Government must be willing to grasp the nettle and prioritise homeland defence and resilience.

“In achieving this, government cannot shy away from direct engagement with the public.

“Wars aren’t won just by generals, but by the whole of the population getting behind the Armed Forces and playing our part.

“There needs to be a co-ordinated effort to communicate with the public on the level of threat we face and what to expect in the event of conflict.”

The Royal Navy tracked a Russian submarine in UK waters last month.  Pic: Royal Navy/MOD
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The Royal Navy tracked a Russian submarine in UK waters last month. Pic: Royal Navy/MOD

‘The Wargame’ made real?

The findings of the report support a podcast series by Sky News and Tortoise Media called The Wargame – released in June.

It simulated a Russian attack on the UK and played out what the impact might be for the country in the absence of a credible, resourced and rehearsed national defence plan – something Britain maintained rigorously during the Cold War.

Sky News first revealed in April 2024 that the previous government no longer had such a plan, though work was under way to develop one.

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Flagship aircraft carrier to be placed under NATO command

Report’s assessment of war-readiness

The Defence Select Committee report – based on a nearly year-long inquiry – found: “The UK lacks a plan for defending the homeland and overseas territories with little progress on the Home Defence Programme.”

It said this meant the government was failing to meet a fundamental commitment to the NATO alliance – the Article 3 requirement to maintain the “capacity to resist armed attack”.

The report quoted Luke Pollard, a defence minister, acknowledging that “we have been very clear that we are not satisfied with Article 3 in the UK”.

Britain's new Ajax fighting vehicle, which arrived overdue and at great financial cost. Pic: PA
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Britain’s new Ajax fighting vehicle, which arrived overdue and at great financial cost. Pic: PA

Read more: Is the Ajax any good?

Yet the MPs’ report added: “Despite this recognition from government… measures to remediate seem to be moving at a glacial pace.”

It said: “Cross-government working on homeland defence and resilience is nowhere near where it needs to be. The government has said repeatedly that we are in an era of new threat, yet decision-making is slow and opaque.”

Read more from Sky News:
HMS Prince of Wales ‘ready for war’, says defence sec
Cooper plays down reports UK halted intel sharing with US

The rebuke from the MPs was published as John Healey, the defence secretary, prepares to announce that 13 sites across the UK have been identified as possible locations for at least six new weapons factories.

“This is a new era of threat,” he will say at a speech in Westminster later.

“We are making defence an engine for growth, unambiguously backing British jobs and British skills as we make the UK better ready to fight and better able to deter future conflicts.

“This is the path that delivers national and economic security.”

Industry will be invited to submit proposals to produce ammunition and explosives, with the Ministry of Defence saying it hopes work on the first factory will begin next year.

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Politics

Senator Tim Scott pushes for December vote on crypto market bill

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Senator Tim Scott pushes for December vote on crypto market bill

Senate Banking Committee Chair Tim Scott says he’s looking to mark up a crypto market structure bill next month to have it on President Donald Trump’s desk by early next year.

Scott told Fox Business on Tuesday that the committee has been negotiating with Democrats to reach a deal, but accused the party’s senators of stalling.

“Next month, we believe we can mark up in both committees and get this to the floor of the Senate early next year so that President Trump will sign the legislation making America the crypto capital of the world,” Scott said.

Law, Senate, US Government, Bills
Banking Committee Chairman Tim Scott says a vote on the market structure bill could occur in December. Source: YouTube

The House passed the CLARITY Act in July, which outlines the Commodity Futures Trading Commission and the Securities and Exchange Commission’s power to regulate crypto, and the Senate has been working on its own version of the bill.

Republicans on the Senate Banking Committee released a discussion draft on their section of the bill in July and suggested it would marry up with the CLARITY Act, and the Senate Agriculture Committee released its discussion draft on Nov. 10, which left much of the bill up for change.

The Agriculture Committee has jurisdiction over the CFTC, while the Banking Committee oversees the SEC and is leading parts of the bill relating to securities laws. 

Bill will create clear rules and unlock crypto: Armstrong

Coinbase CEO Brian Armstrong said in a video posted to X on Tuesday that he was in Washington, DC, “pushing for market structure legislation,” and noted there had been “a lot of progress.”

“Senate banking is also working nights and weekends to get the next iteration of their text out, so we’ve got a good chance, I think, of a markup for this bill in December, hopefully get it to the president’s desk shortly thereafter,” Armstrong said.

“This would be a big milestone to get crypto unlocked with clear rules in the US, which would benefit all companies,” he added.

Where the bill will go from here

The CLARITY Act was one of three major crypto bills the House passed in July after a 10-hour voting session alongside the GENIUS Act, which aims to regulate stablecoins and the Anti-CBDC Surveillance Act, which outlaws central bank digital currencies. 

Related: Regulator clarifies US banks can handle gas fees using crypto holdings

As the Senate is working on its own version, the CLARITY Act will return to the House for final approval if it’s passed by the Senate. It would then be sent to Trump to be signed into law.