Cryptocurrencies To Watch

Tag: United States

  • Ohio Lawmaker Proposes Bitcoin Reserve Bill to Enable State BTC Purchases

    Ohio Lawmaker Proposes Bitcoin Reserve Bill to Enable State BTC Purchases

    An Ohio lawmaker has introduced a bill that could position the state to embrace Bitcoin (BTC). The proposed legislation seeks to establish a state Bitcoin reserve, allowing Ohio to purchase and hold BTC as part of its financial assets.

    The bill, HB 703, introduced by Representative Derek Merrin, aims to modernize Ohio’s financial strategies by integrating bitcoin into its treasury. The legislation noted the creation of a framework for the state to acquire, hold, and potentially utilize BTC in various capacities, including as a hedge against inflation and a tool for diversifying state financial reserves.

    “The U.S. Dollar is being rapidly devalued, and our State Treasurer should have the authority and flexibility to invest in Bitcoin when determining proper asset allocation. Ohio must embrace technology and protect tax dollars from eroding,” Merrin said.

    Merrin further noted that he anticipates the incoming Trump administration will seek to create a national bitcoin reserve, just like Senator Cynthia Lummis proposed to help America’s balance sheet.

    The Ohio lawmaker also stated that he expects the bill to serve as a foundation for Ohio’s upcoming legislative session, given that it comes just two weeks before the 135th General Assembly concludes on December 31. Merrin hoped that the bill will lay the groundwork for legislators to address it promptly in the coming year.

    “Bitcoin is revolutionizing finance and will reshape world economies. We must have sound money — it’s like digital property rights for everyone who owns it. This legislation sets up the framework for Ohio’s state government to harness the power of Bitcoin and strengthen our state finances,” he added.

    Bitcoin As a Threat to US Economy

    If passed, the bill could have far-reaching implications for Ohio and other states considering similar measures. Advocates argue that holding the crypto asset could provide a hedge against the volatility of fiat currencies and protect against economic downturns. Critics, however, have raised concerns about bitcoin’s volatility and potential risks.

    Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc., believes investing in BTC is not wise. He notes that Bitcoin poses a national security threat to the US economy. The American stock broker goes further, adding that government officials squander the public’s funds to purchase the digital asset.

    BTC As a Reserve Asset

    Meanwhile, other states, like Texas and Pennsylvania, have filed similar legislation to establish Bitcoin reserves. On October 30, 2024, Florida Chief Financial Officer (CFO) Jimmy Patronis pushed to include BTC in state pension funds.

    The CFO also proposed that the State Board of Administration (SBA) could establish a “Digital Currency Investment Pilot Initiative” within the framework of the Florida Growth Fund.

  • Cynthia Lummis Meets With Future Treasury Secretary to Discuss Strategic BTC Reserves

    Cynthia Lummis Meets With Future Treasury Secretary to Discuss Strategic BTC Reserves

    Cynthia Lummis, an American attorney and politician serving as the junior United States senator from Wyoming, recently met with Scott Bessent, an American investor, philanthropist, and hedge fund billionaire, to discuss implementing a national Bitcoin (BTC) reserve strategy.

    The meeting during the week marked a significant moment in the growing conversation around crypto and its role in the US economy.

    “Scott Bessent will be a champion for digital assets and a crucial ally in passing my Strategic Bitcoin Reserve. I look forward to working closely with the future Treasury Secretary to restore fiscal responsibility,” said Lummis.

    Lummis was elected to represent the people of Wyoming in the US House of Representatives from 2009 – 2017 and became a US senator in 2021. While serving as a senator, Lummis has paid close attention to the BTC trend and its potential role in the US economy.

    Senator Lummis also proposed that the US government accumulate more bitcoin to establish a strategic BTC reserve fund. The politician further stated that the US could become the first developed nation to establish a strategic reserve by embracing BTC, securing a brighter future for generations of Americans.

    Trump Appoints Bessent as Treasury Secretary

    On the other hand, Bessent was nominated by President Donald Trump. The 62-year-old treasury nominee has spent his career in finance and made a big bet on Trump winning the election.

    Before the US election on November 5, the hedge fund investor predicted last year that President-elect Donald J. Trump’s political fortunes were on the rise.

    As treasury secretary, the billionaire will essentially be the highest-ranking US economic official, responsible for maintaining the balance of the world’s largest economy. This includes collecting taxes and paying the nation’s bills, managing the $28.6 trillion treasury debt market, and overseeing financial regulation, including handling and preventing market crises.

    Bessent will confront significant challenges, mainly the responsibly managing federal deficits projected to increase by nearly $8 trillion over the next decade, driven by Trump’s proposals to extend expiring tax cuts next year and introduce substantial new tax breaks, such as eliminating taxes on social security income.

    BTC Adoption

    Amid the growing adoption of BTC, several corporations and entities have allocated their funds to the crypto asset, even when former US Treasury Secretary Lawrence Summers criticized Trump’s proposal for a strategic Bitcoin reserve, calling it “crazy” and accusing it of being a move designed to appease his crypto campaign donors.

    American stock broker, financial commentator, and radio personality Peter Schiff also noted that BTC is a national threat to the US economy. He believes that individuals waste their funds when investing in digital asset.

  • Ex-US Treasury Secretary Criticizes National Bitcoin Reserve as ‘Crazy’

    Ex-US Treasury Secretary Criticizes National Bitcoin Reserve as ‘Crazy’

    Former United States Treasury Secretary Lawrence Summers criticized President-elect Donald Trump’s proposal for a strategic Bitcoin reserve, calling it “crazy” and accusing it of being a move designed to appease his cryptocurrency campaign donors.

    “Some of what is being said — this idea that we should have some kind of national Bitcoin reserve — is crazy. “There’s no reason to do that other than to pander to generous special-interest campaign contributors,” Summers said.

    Summers noted that he understands the need for a national oil reserve and why gold is accumulated in Fort Knox, but of all of the prices to support, why would the government choose to support, by accumulating a sterile inventory, a bunch of Bitcoin?” he added.

    1M BTC Acquired For 20 Years

    The former secretary further stated that during Trump’s campaign, he proposed that the United States government retain the approximately 198,000 Bitcoin it has seized, which is valued at over $19 billion, according to data from Arkham Intelligence.

    Meanwhile, some Trump-aligned Republicans, notably Wyoming Senator Cynthia Lummis, advocated for legislation that would authorize the government to acquire 1 million BTC — roughly 5% of the total supply — and hold it for at least 20 years. Lummis’s advocacy for a Bitcoin reserve was driven by her focus on tackling the nation’s $36 trillion debt.

    However, Summers acknowledged that certain aspects of Trump’s rhetoric on crypto have merit.

    “I think we need to support financial innovation wherever it may go, and there are probably respects in which crypto has been over-regulated by overzealous regulators,” he said.

    Summers served as Treasury Secretary from 1999 to 2001 under the Clinton administration and briefly served as an advisor to the cryptocurrency conglomerate Digital Currency Group (DCG) in 2016.

    Is a Bitcoin Reserve Important?

    Summers is not the only person who has something to say about Bitcoin reserves. For instance, Avik Roy, president of the Foundation for Research on Equal Opportunity, stated at a crypto summit last month that Bitcoin’s potential benefits are being “overhyped.”  

    Additionally, Roy noted that Bitcoin reserves have merits, but they are not a solution to the problem. He further explained the need for budgetary reforms to address the $2 trillion annual federal deficit.

    Despite the debate on Bitcoin reserves, several institutions are considering BTC as their reserve. For instance, the House of Representatives of Pennsylvania, the fifth-most populous state in the US, plans to foster crypto adoption by passing a law to add bitcoin to the state balance sheet as a reserve asset.

  • Coinbase CEO Says US Govt Should Never Sell BTC, Amid Market Panic

    Coinbase CEO Says US Govt Should Never Sell BTC, Amid Market Panic

    Coinbase CEO Brian Armstrong recently posted on X (formerly Twitter) that the United States government “should never sell” its Bitcoin holdings. Notably, the U.S. authorities have a history of selling confiscated Bitcoins, including a previous sale of 9,861 BTC worth $216 million in March 2023.

    The statement comes after a recent transaction has ignited concerns that the U.S. government might be planning to sell its seized Bitcoins. A wallet tagged by Arkham as “U.S. government: Silk Road” transferred 10,000 BTC, worth over $954.6 million, to Coinbase.

    It’s worth noting that the U.S. government still holds around $17.5 billion worth of Bitcoin, alongside other crypto assets like ETH and USDT. The fate of these holdings remains uncertain, and the recent transfer to Coinbase has only added to the speculation.

    A Huge Strategic Mistake

    The coinbase CEO attached another tweet belonging to a U.S. Space Force major, Jason Lowery, who noted his strong belief that the U.S. government selling its Bitcoin holdings would be a “huge strategic mistake.” 

    He further emphasized that there is no price point at which selling Bitcoin would make sense for the U.S. government, implying that Bitcoin’s long-term value and potential are too great to be sold. Lowery also criticized the government for not fully understanding the value and implications of the Bitcoin they hold.

    Interestingly, Bitcoin’s consistent value appreciation since its inception makes it a potentially lucrative investment for the U.S. government. By holding its Bitcoin, the authorities could benefit from the potential growth. It could also provide a diversification benefit, reducing dependence on traditional assets like gold and foreign currencies. 

    Furthermore, as a leader in financial innovation, the U.S. selling Bitcoin could be perceived as a lack of confidence in the crypto’s potential. This would set a precedent, potentially encouraging other governments to follow suit and sell their holdings.

    Speculations Met With Hopium

    Coinbase involvement in the latest government BTC transaction does not necessarily mean a sale is imminent. Coinbase Prime has secured a contract with the U.S. Marshals Service to manage its digital assets. Hence, users should note that the sales are only speculation.

    Meanwhile, President-elect Donald Trump’s vow to build a strategic Bitcoin reserve for America has given investors hope. His plan could potentially boost the market and increase investor confidence, leading to a sense of optimism among investors who believe that Trump’s plan will be realized.

  • Trump Appoints Former SEC Chair Clayton as U.S. Attorney for Manhattan

    Trump Appoints Former SEC Chair Clayton as U.S. Attorney for Manhattan

    United States President Donald Trump is nominating Jay Clayton, the former Chairman of the Securities and Exchange Commission (SEC), as the new United States Attorney for the Southern District of New York.

    According to a recent report, Trump noted that Clayton is a highly respected business leader, counsel, and public servant who received Engineering and Law degrees from the University of Pennsylvania and an Economics degree from the University of Cambridge.

    Clayton has been praised for his efforts to promote transparency in financial markets. Still, his tenure at the SEC was also marked by controversies regarding his perceived leniency toward Wall Street firms, particularly in handling enforcement actions against large financial institutions.

    Trump further noted that before the current appointment as U.S. Attorney for the Southern District of New York, Clayton was a partner at Sullivan & Cromwell and served on the Management Committee.

    Clayton is currently a Senior Policy Advisor to Sullivan & Cromwell, a Board Member of several public and private companies, and an Adjunct Professor at the Wharton Business School and the Carey Law School at the University of Pennsylvania.

    “Jay is going to be a strong Fighter for the Truth as we, Make America Great Again,” Trump said. 

    U.S. Attorney’s Office Overseeing High-Profile Cases

    The U.S. Attorney’s Office for the Southern District of New York is responsible for overseeing numerous prominent cases, such as financial fraud, organized criminal activity, and public corruption. It also holds authority over the financial institutions based on Wall Street in New York.

    The Southern District of New York is also often considered one of the country’s most powerful and prestigious U.S. Attorney’s Offices.

    Over the years, the office has led multiple notable financial fraud prosecutions, including FTX co-founder Sam Bankman-Fried and Archegos Capital Management founder Bill Huang, both of whom were found guilty.

    In 2020, Trump selected Clayton as the U.S. Attorney for the Southern District of New York while the office was probing several of his associates, including advisor Steve Bannon.

    Meanwhile, if confirmed, Clayton will likely be expected to implement Trump’s policies in New York, such as addressing illegal immigration and tackling crime reduction.

  • Pennsylvania House of Rep Wants to Hold Bitcoin as a Reserve Asset

    Pennsylvania House of Rep Wants to Hold Bitcoin as a Reserve Asset

    The House of Representatives of Pennsylvania, the fifth-most populous state in the United States, has made a strategic move to foster crypto adoption by passing a law to add bitcoin to the state balance sheet as a reserve asset.

    With boiling optimism about Republican Donald Trump’s pro-crypto federation, many states are examining ways to implement their crypto adoption plan and may follow Pennsylvania’s precedent.

    Pennsylvania Goes Pro-Crypto

    According to Fox Business, the House passed the legislation on Thursday, taking bold steps to adopt Bitcoin as a store of value, imitating pro-crypto countries like El Salvador and the Republic of Bhutan.

    Republican Pennsylvania state Rep. Mike Cabell, who pushed the bill, expressed optimism about the move. He said:

    “The Pennsylvania Bitcoin Strategic Reserve Act is a visionary step toward securing our state’s financial future. By integrating Bitcoin into our reserves, we’re not only protecting Pennsylvania from inflation’s relentless impact but also positioning our state as a leader in financial resilience and innovation.”

    Notably, pro-crypto senators are gearing up to introduce a Bitcoin reserve bill within the first 100 days of Trump’s tenure as U.S. president. The bill aims to establish a strategic Bitcoin reserve, potentially boosting America’s standing as a crypto hub.

    Agreeably, the move aligns with one of Trump’s promises to the crypto community during his presidential campaign, to make America the world’s capital of Bitcoin and crypto when he wins.

    Trump Sparks U.S. Bitcoin Adoption

    Remarkably, Pennsylvania’s bitcoin adoption bills came eight days after Trump was announced the winner of the 2024 U.S. presidential election, highlighting the effects of his victory on pro-crypto legislators who have been in their shells.

    Following Trump’s victory, crypto investors and firms in America are positively booming as they look forward to a friendly environment after his inauguration. He has promised to stop the U.S. crypto hostility within an hour of his presidency, stop America’s bitcoin selling, and establish a strategic federal bitcoin reserve.

    Meanwhile, Pennsylvania passed a Bitcoin Rights bill last month to allow citizens to own and use Bitcoin as a payment method. The bill sailed through the Democrat-led House, excelling with 176 votes to 26, bolstering the confidence that the Bitcoin Reserve Act will be accepted and added to the law by next year.

  • FBI Raids Residence of Polymarket CEO Shayne Coplan

    FBI Raids Residence of Polymarket CEO Shayne Coplan

    The United States Federal Bureau of Investigation (FBI) conducted a raid on the residence of Polymarket CEO Shayne Coplan, seizing his phone and electronics.

    Polymarket is a leading prediction market platform that allows users to bet on the outcome of real-world events related to politics, sports, and pop culture. The platform also provides real-time probabilities of event outcomes, enabling users to profit from their knowledge and insights.

    The prediction platform gained massive popularity during the United States presidential election, attracting billions of dollars on the final result. Polymarket users largely anticipated Donald Trump as the probable winner, which proved accurate.

    Law Enforcement Raids Coplan’s House

    According to a New York Post, U.S. law enforcement officials woke Coplan up at 6 a.m. and confiscated his phone and electronic devices. A Polymarket spokesperson confirmed the unexpected incident.

    During the incident, Coplan was reportedly not given an explanation about the raid, though the source speculates it may be politically motivated, as Polymarket successfully predicted a clear Trump victory over the Democrat Kamala Harris, contrary to mainstream polling predictions.

    Bloomberg later revealed that the U.S. Department of Justice (DOJ) was investigating Polymarket over claims that it permitted U.S. users to access its platform.

    A Polymarket spokesperson stated that this is a case of political retaliation by the departing administration against the prediction market platform for offering a market that accurately predicted the outcome of the 2024 presidential election. The spokesperson further stated that the platform is an open and fully transparent prediction platform designed to help individuals gain clearer insights into important events, including elections.

    Polymarket Reaches a $1.4M Settlement

    Before the prediction platform gained popularity, it agreed to a $1.4 million settlement with the U.S. commodities regulator in January 2022 for hosting over 900 event-based binary options markets without proper registration.

    Following a 2022 settlement, Polymarket is required to prevent U.S. individuals from accessing its services.

    Meanwhile, the platform recorded approximately $3.7 billion worth of bets on its 2024 presidential election winner market, sparking criticism over its influence.

  • Florida CFO Pushes to Include Bitcoin in State Pension Funds

    Florida CFO Pushes to Include Bitcoin in State Pension Funds

    Florida Chief Financial Officer (CFO) Jimmy Patronis has voiced strong support for including bitcoin (BTC) in the state’s investment portfolio.

    If implemented by the State Board of Administration (SBA), Florida will join a growing number of American states like Wisconsin and Michigan, which have added crypto assets to their portfolios.

    In a letter sent to the SBA executive director Chris Spencer, Patronis called on the SBA to provide a report regarding the feasibility, risks, and possible advantages of allocating a portion of state pension funds into digital asset categories and requested that the report be ready before the upcoming legislative session, which is set for March 4, 2025.

    “Bitcoin is often called ‘digital gold,’ and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” Patronis said.

    A Framework For Florida’s Growth Fund

    The CFO proposed that the SBA could establish a “Digital Currency Investment Pilot Initiative” within the framework of the Florida Growth Fund.

    Florida’s SBA oversees more than 30 funds, including the Florida Retirement System Trust Fund, which held approximately $205 billion in assets under management as of September 30.

    According to a January report, the fund used up to 1.5% of the Florida Retirement System Trust Fund and invested approximately $998 million in high-growth assets between 2022 and 2023.

    “When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling,” he added.

    The CFO further noted that this step would align with Florida Governor Ron DeSantis’s recent push to block central bank digital currencies (CBDCs), emphasizing that crypto is the “antithesis” of centralized currency.

    US States Investing in Crypto Assets

    Other US states have recently invested in digital assets. For instance, in May, the State of Wisconsin Investment Board (SWIB) revealed an investment of $164 million in spot Bitcoin exchange-traded funds (ETFs) from Grayscale and BlackRock, representing approximately 0.1% of its total assets under management. 

    Similarly, in July, the State of Michigan Retirement System disclosed its Bitcoin investments, holding 110,000 shares in ARK 21Shares’ ETF, constituting 0.003% of its assets under management.

  • Brian Armstrong Says Next SEC Chair Should Apologise to Americans

    Brian Armstrong Says Next SEC Chair Should Apologise to Americans

    Coinbase CEO Brian Armstrong has urged the future chair of the United States Securities and Exchange Commission (SEC) to drop the agency’s “frivolous” lawsuits targeting crypto companies and apologize to Americans.

    In a recent post on X, Armstrong noted that the apology would not reverse the harm and damage done to the country but would begin to rebuild confidence in the SEC as a trusted institution.

    The CEO pointed out the agency’s approach to regulating the crypto industry, which he claimed has triggered avoidable lawsuits against companies like Coinbase.

    SEC Unable to Classify Crypto Assets

    Under Gary Gensler’s leadership, the SEC has released contradictory statements on key matters, such as classifying digital assets as securities and the agency’s jurisdiction over crypto trading platforms.

    Armstrong noted that in 2018, the SEC declared that crypto assets were not securities, only to reverse that stance in 2021 by categorizing the asset class as investment contracts. By 2024, the agency had altered its position again, asserting that digital assets are not securities.

    The securities watchdog has also changed its classification stance on bitcoin (BTC). The regulator initially classified the asset as a security in 2023, only to re-establish its non-security status in 2024.

    Armstrong further expressed concerns about the SEC’s authority over crypto exchanges. In 2021, the regulator claimed that no regulatory authority governed these platforms. A year later, it claimed that it had Congressional jurisdiction to regulate crypto exchanges.

    SEC Goes After Big Firms

    In recent times, the SEC has filed charges against prominent companies like Coinbase, Kraken, and Binance, and over $7.42 billion in fines have been imposed on crypto firms and individuals.

    This year’s record far exceeds the totals from the previous two years, which were $308.9 million in 2022 and $150.26 million in 2023, which reflects a 63% increase compared to last year’s.

    “The Most Lawless Chair”

    The SEC approach to crypto matters has also led Gensler to face scrutiny over his leadership, with Minnesota Representative Tom Emmer criticizing him as the most destructive and lawless chair in the agency’s history.

    Many in the crypto space have advocated for Gensler’s removal, a move Republican presidential candidate Donald Trump has pledged to pursue if elected.

  • DOJ Charges Crypto Exchange Operator with Money Laundering and Tax Crimes

    DOJ Charges Crypto Exchange Operator with Money Laundering and Tax Crimes

    The United States Department of Justice (DOJ) has charged Maximiliano Pilipis, the operator of crypto exchange AurumXchange, with money laundering and tax crimes.

    According to a recent press release, the DOJ alleged that the 53-year-old defendant conducted over 100,000 tractions, which resulted in a transfer of more than $30 million in funds, some of which came from the held on the Silk Road, an anonymous dark web marketplace that hosted illicit activities including the sale of illegal drugs.

    “Together with our partners in federal law enforcement, we will continue to work to investigate and prosecute offenders who exploit digital assets to fuel drug trafficking and other offenses, and those who unlawfully facilitate the transfer and laundering of the proceeds of crime,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana.

    FBI Shuts Down Silk Road

    The court document revealed that Pilipis operated his exchange without a license from 2009 until 2013 when the Federal Bureau of Investigation (FBI) shut down the Silk Road.

    AurumXchange and Pilipis collected millions of dollars in fees for facilitating these transactions, accumulating over 10,000 BTC, valued at around $1.2 million at the time.

    The agency also accused Pilipis of violating federal registration and reporting requirements for crypto exchanges. The DOJ claimed he ignored the mandate to register with the U.S. Treasury Department and report the exchange’s activities to the federal government.

    Pilipis Laundered and Concealed Proceeds

    The DOJ alleged that the defendant neglected to enforce Know-Your-Customer (KYC) rules, violating Anti-Money Laundering (AML) and counter-terrorism financing (CTF) regulations.

    After shutting down the platform, the DOJ noted that Pilipis divided and transferred the BTC and other assets he obtained from running the exchange to launder and conceal the proceeds of the offenses.

    The DOJ accused Pilipis of converting his proceeds into U.S. dollars and using it for real estate investments in Arcadia and Noblesville, Indiana.

    A 10-Years Sentence

    The department reported that Pilipis’ assets generated hundreds of thousands of dollars in income in 2019 and 2020, yet he failed to file a tax return.

    Pilipis faces up to 10 years in federal prison and a fine of up to $250,000 if convicted. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.