Thursday, June 15, 2023

POLITICO Nightly: Miami mayor makes two big bets

 

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BY BEN SCHRECKINGER


Miami Mayor Francis Suarez speaks during a press conference at the City of Miami Police Department regarding the city's preparations for the court appearance by former President Donald Trump this week.

Miami Mayor Francis Suarez speaks during a press conference at the City of Miami Police Department regarding the city's preparations for the court appearance by former President Donald Trump this week. | Giorgio Viera/AFP via Getty Images

THE CRYPTO PRIMARY — Miami’s Republican Mayor Francis Suarez just took a big risk on his future. He also entered the presidential race today.

Recent history, with its bumper crops of presidential primary candidates, shows that there’s little downside in mounting a longshot Oval Office bid. Losers often walk away with consolation prizes like cabinet posts or cable news gigs.

Recent history has been less kind to cryptocurrency, and to those who bind their fortunes too closely to it, as the digital assets market crashed last year, exposing a series of spectacular frauds along the way.

Suarez is among those bound to it. He tied his personal brand and Miami’s to crypto by aggressively boosting the technology during its last bull run — and he continues to embrace the technology as he steps onto the national stage.

He’s not “running away from Bitcoin,” his spokeswoman Soledad Cedro, told POLITICO this morning during a brief interview in which she also revealed she had taken a leave of absence from the mayor’s office to work on his presidential bid.

Indeed, at the Bitcoin 2023 conference in Miami last month, Suarez was bullish as ever . The mayor, who currently takes his salary in Bitcoin, the original cryptocurrency, suggested he would continue to do so if elected president. He also announced that he was borrowing against the six Bitcoin he’s accumulated in salary — now worth approximately $150,000 — to secure a mortgage on an investment property.

(It was revealed last month that Suarez was also making $10,000 a month consulting for a developer. The news led to the opening of an ethics probe, and the Miami Herald reported last week that the arrangement is now the subject of an FBI investigation .)

Suarez’s public gestures generated more buzz at last year’s conference, when crypto markets were riding high and the mayor unveiled a robotic “Bitcoin bull” statue, a symbol of the city’s ambitions to become a high-tech financial capital.

Back then, pro-crypto politicians could count on the support of colorful crypto moguls and an army of enthusiastic small-time investors. Today, the highest-profile mogul, Sam Bankman-Fried, is indicted, while many of his peers are embattled. Legions of investors have taken hits to their savings.

And Suarez, even if he’s not running away from crypto, has had to temper his rhetoric, at least in some contexts: “We would recommend choosing multiple industries to champion to create a stronger local economy of companies and investors,” he told me in April, in response to written questions. “Miami’s brand is tech and innovation, which is broader than just the crypto industry.”

Despite all this, as Suarez enters the 2024 presidential fray, he doesn’t even have the “crypto candidate” lane all to himself.

Florida Gov. Ron DeSantis signed an industry-friendly state law last year, before signing a measure last month that restricted the use of central bank digital currency in the state. (A CBDC, whose existence at this point remains merely hypothetical, would amount to a digital upgrade of the existing dollar system, and is vehemently opposed by crypto boosters). That’s helped DeSantis earn the support of pro-crypto tech investors like venture capitalist David Sacks, who is helping the governor raise money.

Over in the Democratic primary, Robert F. Kennedy Jr. has embraced Bitcoin, trashed CBDCs, and won the endorsement of former Twitter CEO Jack Dorsey, who is now working full-time to create a Bitcoin-centric vision of the Internet at his payments firm Block. Dorsey told me on Sunday that he is set to make contact with Kennedy’s campaign this week.

Even in the “young, ethnically diverse, longshot Republican candidate” lane, Suarez faces pro-crypto competition from publicity-savvy executive Vivek Ramaswamy, who, like Kennedy, also spoke at last month’s Bitcoin conference.

All of this suggests that crypto regulation and broader questions about the future of money are creeping their way onto the 2024 agenda.

Whether Suarez’s fortunes will rise or fall by riding that next leg of the crypto roller-coaster is another matter, but it’s a risk the Miami mayor is apparently willing to take.

Welcome to POLITICO Nightly. Reach out with news, tips and ideas at nightly@politico.com . Tonight’s author Ben Schreckinger covers tech, finance and politics for POLITICO; he is an investor in cryptocurrency. You can reach him at bschreckinger@politico.com or on Twitter at @SchreckReports .

 


 
WHAT'D I MISS?

— Trump judge’s thin criminal trial resume comes with a twist: Aileen Cannon, the federal judge overseeing Donald Trump’s latest criminal case, has run just four, relatively routine criminal trials in her short tenure on the bench — a stark contrast to the historic and complex proceedings she’s about to undertake related to the former president. There’s one exception, however, to Cannon’s judicial history that has largely escaped scrutiny. For nearly one-and-a-half years, she’s shepherded a complex, 10-defendant health care fraud case to the verge of trial, and in the course has litigated tangled and fraught issues of attorney-client privilege and motions to suppress — some of which could be precursors to battles in the upcoming Trump case.

In related news, Cannon took one of her first substantive steps today in Trump’s prosecution . In a brief order, Cannon required all attorneys in the case — for Trump as well as his longtime valet, Walt Nauta, who is charged alongside him as an alleged co-conspirator — to contact the Justice Department about obtaining security clearances. The same instructions apply to any “forthcoming” attorneys, the judge said.

— Supreme Court preserves law that aims to keep Native American children with tribal families: The Supreme Court today preserved the system that gives preference to Native American families in foster care and adoption proceedings of Native children, rejecting a broad attack from some Republican-led states and white families who argued it is based on race. The court left in place the 1978 Indian Child Welfare Act, which was enacted to address concerns that Native children were being separated from their families and, too frequently, placed in non-Native homes.

— Biden announces end to some hidden fees: Several ticketing and travel companies are committing to get rid of hidden fees for buyers in the United States , President Joe Biden announced today. Biden made the announcement alongside representatives from private-sector companies including Airbnb, SeatGeek and Ticketmaster parent company Live Nation, all of which have pledged to provide consumers with the full price of their tickets upfront. The announcement marks a step forward in Biden’s plan to ban “junk fees” — the extra charges often applied to travel, ticket and banking transactions — as part of a broader appeal toward working-class voters.

— Multiple federal agencies hit by hack: Multiple federal agencies are responding to a large-scale breach affecting a product used to transfer sensitive data , a senior government official confirmed today. The breaches are connected to a file-transfer program called MOVEit, which has a security hole that Russian-speaking cybercriminals have recently exploited to steal data from companies and demand ransom payments. The Cybersecurity and Infrastructure Security Agency and the National Security Council did not respond to a request for comment about which federal agencies had been hacked and whether any of the networks had been encrypted or if they’d received a ransom demand.

 

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NIGHTLY ROAD TO 2024

Republican Presidential candidate Chris Christie speaks with voters during a gathering in Manchester, N.H.

Republican Presidential candidate Chris Christie speaks with voters during a gathering in Manchester, N.H. | Charles Krupa/AP Photo

COLLATERAL DAMAGE — When Chris Christie jumped into the crowded Republican presidential primary, it was with the expectation that he would aim his fire at his ally-turned-nemesis, Donald Trump, writes POLITICO’s Sally Goldenberg.

But, on numerous occasions, it’s been Ron DeSantis who is getting hit with shrapnel — and Christie’s team says that’s no accident . Since announcing his long-shot bid for the presidency earlier this month, Christie has occupied the lonely lane of publicly attacking Trump, doing so even as DeSantis and other GOP contenders either defend the former president or avoid discussing him amid his mounting legal troubles.

Christie isn’t on some kamikaze mission to take out the frontrunner. In fact, he isn’t sparing second-place candidate DeSantis at all. Instead, he’s trying to create space for other Trump rivals before the Florida governor further solidifies his second-place standing in the primary.

TEAM GREEN — Four of the nation’s biggest environmental advocacy groups officially endorsed President Joe Biden’s reelection campaign Wednesday night, an early declaration of support that also served as a show of appreciation for having passed the most significant climate legislation in history last year, reports POLITICO’s Eli Stokols.

The backing of the four major green groups — League of Conservation Voters, NextGen PAC, NRDC Action Fund and the Sierra Club — was no surprise, especially after last year’s passage of the Inflation Reduction Act, which included $370 billion in subsidies for clean energy projects. But it does mark the first time the groups have jointly announced a presidential endorsement.

EARLY STATE EMBARRASSMENT — President Biden is almost certain to be Democrats’ pick for president in 2024, but he might not win the first two contests of the primary season if they’re in the traditional first-to-vote states of Iowa and New Hampshire — a scenario that seems increasingly likely , reports Axios.

Biden’s team is indicating he won’t be on the ballots in those states if they vote before South Carolina, his choice to have the first primary.

Why it matters: Democrats in Iowa and New Hampshire could defy Biden and move ahead with their contests — even as the party warns it will strip them of their national convention delegates if they jump the gun. That sets up a scenario in which Robert F. Kennedy Jr. or another long-shot Democrat could win those states — and embarrass the president.

 
 
AROUND THE WORLD

TRADE WAR GAMES — France is ratcheting up pressure on Brussels to hit back against what it sees as China’s unfair advantages in export sectors such as electric vehicles — but the EU is wary about the risks of triggering an all-out trade conflict with Beijing .

Over recent years, Brussels has upgraded its trade defense arsenal and now Paris wants the European Commission — which steers trade policy for the 27-country bloc — to use this new weaponry and show that it is not simply posturing.

Whether France will win round the rest of the EU, especially Germany, is likely to top the agenda when EU leaders meet at a summit later this month. Berlin and others were stung by Brussels’ disastrous attempt to use EU trade tools against Beijing in 2013 and are likely to advocate a more cautious route so as not to provoke Beijing into rolling out countermeasures against EU industry.

The most controversial French idea is that the EU should open a probe paving the way for tariffs on Chinese electric vehicles. The main European fear is that Beijing can use lavish state support to churn out unfairly cheap vehicles that can flood the EU market at a speed and scale that threaten the EU’s own e-car production.

The European Commission is discussing whether to launch an investigation that could allow Brussels to impose additional levies, known as anti-dumping and anti-subsidy tariffs, on such cars, two senior officials told POLITICO.

 

STEP INSIDE THE WEST WING : What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today .

 
 
NIGHTLY NUMBER

$474,794

The amount of money that former New York City Mayor Bill de Blasio was fined for using a New York Police Department security detail during his 2020 presidential run . The fine is the largest ever handed down by New York City’s Conflicts of Interest Board. In response, de Blasio filed a lawsuit. In a statement, his attorney said the board’s ruling was illegal and could open elected officials up to all manner of violence in an era where partisanship has reached a fever pitch.

RADAR SWEEP

TRAIN TO NOWHERE — In the past two decades, lending from China to a host of African nations has skyrocketed. In Kenya, a friendly relationship with Chinese authorities led the China Road & Bridge corporation to undertake the building of the Standard Gauge Railway between Mombasa and Nairobi, connecting the city that lies on the Indian Ocean to Kenya’s capital and largest city. The project — coming in at around $5 billion — was meant to reshape the country’s economy. But now, as China’s agreement to operate the railway for five years is close to expiring and the railway hemorrhaging cash and Kenya’s government in debt, Kenyans are left wondering what’s going to happen to the project , and how much they’ll have to pay to keep it operational. Jacob Kushner reports for The Dial.

PARTING IMAGE

On this date in 1987: A South Korean student throws a gasoline bottle bomb at shielded and helmeted ranks of riot police in Seoul during a violent clash at Yonsei University, one of Seoul's leading schools. The violence occurred as thousands of students staged pro-democracy demonstrations in the capital and provincial cities, and forced the ruling government to hold elections that established South Korea's Sixth Republic, the present day governmental system of the
 country.

On this date in 1987: A South Korean student throws a gasoline bottle bomb at shielded and helmeted ranks of riot police in Seoul during a violent clash at Yonsei University, one of Seoul's leading schools. The violence occurred as thousands of students staged pro-democracy demonstrations in the capital and provincial cities, and forced the ruling government to hold elections that established South Korea's Sixth Republic, the present day governmental system of the country. | AP Photo

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RSN: Norman Solomon | Two Very Different Espionage Act Cases: Trump and the Drone Whistleblower

 

 

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The indictment against Donald Trump is photographed on Friday, June 9, 2023. Trump is facing 37 felony charges related to the mishandling of classified documents, also improperly sharing a Pentagon 'plan of attack' and a classified map related to a military operation. (photo: Jon Elswick/AP)
RSN: Norman Solomon | Two Very Different Espionage Act Cases: Trump and the Drone Whistleblower
Norman Solomon, Reader Supported News
Solomon writes: "Donald Trump and Daniel Hale have each been indicted on charges of violating the Espionage Act, but the similarity ends there. While the former president prepares for arraignment in a Miami federal courtroom this afternoon, Hale - a U.S. Air Force veteran and drone whistleblower - continues to serve a 45-month prison sentence."   

Donald Trump and Daniel Hale have each been indicted on charges of violating the Espionage Act, but the similarity ends there. While the former president prepares for arraignment in a Miami federal courtroom this afternoon, Hale — a U.S. Air Force veteran and drone whistleblower — continues to serve a 45-month prison sentence.

For Trump, it will be irrelevant that the 106-year-old Espionage Act does not allow defendants to testify about why they handled classified documents the way they did. But, if not for that restriction, Hale might never have gone to prison in the first place.

Any attempt by Trump to present a “public interest” defense would be laughed out of court. Every indication is that his only interest was self. His intent could hardly be exculpatory.

In sharp contrast, a public-interest defense by Hale, if it had been allowed, might have swayed a jury. Such an argument in court — along the lines of what’s known as a “competing harms” defense — is akin to the claim that breaking into a house with a posted “No Trespassing” sign was justified to rescue children from a fire.

Hale’s decision to provide classified documents to an American media outlet was based on the need to inform the American people about what the military drone program was doing with their tax dollars in their names. The classified information from Hale enabled the website The Intercept to publish a series of articles in October 2015 that illuminated a hidden corner of U.S. foreign policy.

“The White House and Pentagon boast that the targeted killing program is precise and that civilian deaths are minimal,” one of the pieces reported. “However, documents detailing a special operations campaign in northeastern Afghanistan, Operation Haymaker, show that between January 2012 and February 2013, U.S. special operations airstrikes killed more than 200 people. Of those, only 35 were the intended targets. During one five-month period of the operation, according to the documents, nearly 90 percent of the people killed in airstrikes were not the intended targets.”

To truly have the informed consent of the governed, providing such information was a vital public service. But with Hale’s actual purpose excluded from his trial, the Justice Department’s prosecution was a slam dunk.

At his sentencing two years ago, Hale gave a handwritten five-page letter to the judge, who was about to sentence him to several years in prison. Hale wrote that he had given documents to the press, “not one more nor one less than necessary, to dispel the demonstrable lie that said drone warfare kept us safe, that our lives are worth more than theirs, and that only more killing would bring about certain victory. Simply put: It is wrong to kill, it is especially wrong to kill the defenseless, and it is an abdication of the Bill of Rights to kill without due process of law.”

Hale, who traces his ancestry to the Revolutionary War hero Nathan Hale (executed by the British in 1776), is now confined to the heavily restrictive Communications Management Unit at the high-security Marion federal prison in Illinois. Rest assured that if Donald Trump is convicted of any of the felony counts in the federal indictment, he will have much less repressive prison accommodations.

As I write in my new book, “War Made Invisible”, which includes profiles of Daniel Hale and other whistleblowers, “My conversations with drone whistleblowers left me thinking about the huge gaps between how war ‘issues’ are commonly discussed in the United States and what they actually mean for actual people.”

It was Daniel Hale’s deep concern about what drone warfare actually means for actual people that impelled him to become a whistleblower. That’s why he’s in prison right now.

While Donald Trump is now facing prosecution on 37 felony counts — 31 of them for alleged Espionage Act violations — the contrast between his motivations and those of Daniel Hale will be excluded from the judicial proceedings. But the contrast should loom large in the court of public opinion.

When I asked a former top National Security Agency official, Thomas Drake, to compare the Trump and Hale cases, he said: “There are so many secrets in government and Trump saw some of the highest that existed. But based on the vast number he purloined, he clearly viewed them as having great material value as keepsakes to hoard, share and use for his own grift.” Drake added that Trump “did not keep those highly sensitive secrets to share in the public interest like a whistleblower, but for self-interest and personal pursuits.”

Drake, who worked at high levels of the NSA in the immediate aftermath of 9/11, is himself a whistleblower. (Full disclosure: A nonprofit that I help lead has supported Drake and distributed his essays.) He was ultimately vindicated following protracted prosecution, after going through government channels to no avail — and then providing information to a Baltimore Sun reporter — to reveal huge waste and mass surveillance by the agency in systematic violation of the Fourth Amendment’s privacy protections.

“Donald Trump did not faithfully defend or execute the laws of the land — instead he held them, and ‘We the People’ of the U.S., in utter contempt,” Drake said. “Daniel Hale held faith to the highest ideals of our country and human rights, as he witnessed so many innocent civilians wiped out in the drone killing fields and shared it via the press in the public interest. The deep irony is that the Espionage Act, in its contemporary use, can’t tell Trump and Hale apart.”



Norman Solomon is cofounder of RootsAction.org and executive director of the Institute for Public Accuracy. His new book is “War Made Invisible: How America Hides the Human Toll of Its Military Machine.

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.


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FOCUS: Ryan Goodman and Andrew Weissmann | Jack Smith's Backup Option


 

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Donald Trump was indicted in Florida. He could also face charges in New Jersey. (photo: Brendan Smialowski/AFP)
FOCUS: Ryan Goodman and Andrew Weissmann | Jack Smith's Backup Option
Ryan Goodman and Andrew Weissmann, The Atlantic
Excerpt: "Even before last Thursday's indictment in United States v. Donald Trump, public speculation swirled about whether the former president had taken classified documents not just to Mar-a-Lago but also to his residence and golf club in Bedminster, New Jersey." 



Donald Trump was indicted in Florida. Could he also face charges in New Jersey?


Even before last Thursday’s indictment in United States v. Donald Trump, public speculation swirled about whether the former president had taken classified documents not just to Mar-a-Lago but also to his residence and golf club in Bedminster, New Jersey. The indictment answered that question with a bang while presenting a new puzzle about why Trump isn’t facing even steeper charges.

According to the Justice Department and a taped recording of the former president, Trump took classified records from Mar-a-Lago to Bedminster, where he showed off the contents of such records to others. The indictment alleges that Trump showed a map to a political ally and also showed a writer and a publisher a secret military plan to attack Iran. These two episodes were arguably the most egregious allegations of criminal wrongdoing mentioned in the indictment; they allege not just the improper retention of our nation’s most highly classified information, but the intentional communication of such information.

But these two allegations raise a question: Why did Special Counsel Jack Smith charge Trump with illegal retention of classified documents but not with dissemination of such materials? And is that decision final, or could dissemination charges still be in the works?

Trump’s Bedminster conduct, as described in the indictment, appears to fit the description of two federal offenses designed to keep America’s national-security secrets safe. One makes it a crime to intentionally communicate national-defense information to people not authorized to receive it, and the other makes it a crime to intentionally disclose classified information to the same. These are more serious crimes than willful retention of such documents, which is done to prevent possible leakage. Deliberate dissemination is the leakage itself.

The Justice Manual, the Department of Justice’s guidebook on criminal procedure, as well as guidance from the attorney general’s office, advises prosecutors to give strong consideration to charges of dissemination before making them. According to the manual, once a determination is made that an indictment is warranted, “the prosecutor must select the most appropriate charges,” and “ordinarily, those charges will include the most serious offense that is encompassed by the defendant’s conduct and that is likely to result in a sustainable conviction.” Attorney General Merrick Garland has indicated that the prosecutor can consider a number of factors in deciding whether to bring the most serious charges.

Smith appears to have taken a cautious, narrow approach. Even though the indictment describes alleged dissemination and disclosure of national-security secrets, the indictment did not charge Trump with those offenses.

One possible explanation for his decision: venue. The Constitution requires prosecutors to bring charges in the location—or venue—where the alleged criminal conduct took place. Justice Department prosecutors could not necessarily bring charges against Trump in Miami for alleged criminal conduct that occurred in another state, in this case New Jersey. But the absence of such charges in the indictment raises the intriguing possibility of another indictment to come, in a jurisdiction, no less, with a pool of jurors and judges more favorable to the government’s case against Trump.

The government could make a solid argument that Florida is, in fact, an appropriate location to bring the charges for dissemination at Bedminster. “Any offense against the United States begun in one district and completed in another,” according to a congressional statute, may be “prosecuted in any district in which such offense was begun, continued, or completed.” Just last year, the Court of Appeals with jurisdiction over Florida applied that statute in an analogous situation, holding that a defendant charged with storing drugs in Alabama and transporting them to Tennessee for distribution could be prosecuted in Alabama for drug distribution.

But perhaps Smith did not want to count on the Supreme Court to recognize Florida as an appropriate venue. Judges have not issued definitive rulings on how the law of venue applies to the national-security statutes under which Trump has been charged. Plus, any creative law student—or judicial clerk fresh out of law school—could find ways to distinguish the conspiracy to possess and sell drugs in another state from the crime of disclosure of classified information. Smith might have reasoned that the government could lose on the issue of venue for any dissemination charges it tried in a Florida court. And that could potentially be fatal to ever bringing those charges even in the place that’s an obvious venue option: New Jersey.

For example, with regard to Trump’s alleged disclosure of U.S. attack plans against Iran, it is possible, based on the publicly available facts, that Trump shared the number of U.S. troops required to attack Iran, but not the actual document outlining the attack plans. That would not make his conduct any less criminal—the law specifically prohibits verbal disclosure of such information, not just documents. But if the alleged crime was verbal communication, that crime arguably did not “commence” in Florida with the physical transportation of boxes to New Jersey.

Another possible explanation for why Smith didn’t charge Trump for the more serious offenses has to do with the range of prison time the defendant could be subject to. A conviction for any of the 31 counts Trump faces under the Espionage Act for retention of national-defense information would already yield the maximum penalty available under the federal sentencing guidelines. That is regardless of whether additional counts for dissemination are included. In evaluating a proper sentence, the judge could still take into account the two alleged instances of dissemination—there is no need for the prosecutors to obtain separate convictions on those counts for that conduct to be considered in the sentencing.

The legal uncertainties that surround bringing charges in Florida for dissemination of national-security secrets in Bedminster leaves open the possibility that charges might yet be brought in New Jersey—a backup plan of sorts for Smith. If Aileen Cannon, the Florida judge assigned to the case, were to seek to pocket-veto the charges before her by, say, scheduling the trial for after the 2024 presidential election, the special counsel would be able to sidestep her tactic by proceeding with charges in New Jersey.

In fact, the Miami indictment conspicuously excludes many facts surrounding Trump’s actions in Bedminster: what boxes were taken there, what they contained, how they were kept at the golf club. This silence suggests that there might be more to come from the famously hard-charging Smith and his team of prosecutors, who put together an otherwise highly detailed 49-page indictment.

Smith might still decide against bringing a separate indictment for dissemination, because such a move could be painted as overcharging. The government usually tries to avoid being seen as piling on, at least in such a high-profile matter. But if Cannon acts consistently with her prior Trump-friendly rulings, which were twice found by unanimous panels of conservative appellate judges to be both factually and legally flawed, Smith might go looking for another way to ensure accountability—and another venue where he could do so.


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