The crypto sector continued its frenetic, fast-paced moves, with things always looking larger than life. That said, our prayers and thoughts are with the victims and everyone involved in the Los Angeles, California wildfires.
The headlines:
- Crypto users may soon have improved protections thanks to the CFPB;
- Bitcoin reserve bills continued hitting state Capitols;
- New York’s Attorney General could pave the way to serve absentee (alleged) criminals;
- Cardano’s hard fork faces its final votes;
- Plus, a new Bitcoin ETF is coming town (more on that later);
- And much more!
As always, these are your decentralized diaries!
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Bitcoin is at $91k (as of 1/13/24)
Bitcoin slid from a $102,712.48 high to a $90,207.23 low and is (currently) at $91,225.42.
The altcoins are also set for a comeback.
Ethereum (ETH) is at $3,072.93, Solana (SOL) at $176.32, Avalanche (AVAX) at $33.92, Chainlink (LINK) at $18.38, Polkadot (DOT) at $6.19 and Uniswap (UNI) at $12.52.
The CFPB Proposed New Crypto Protection Rules
Crypto regulations could continue in 2025 if the CFPB has its way. In a January 10 announcement, the regulator opened the Request for Comment window over new measures that could provide crypto users with the same protections as bank account holders.
Furthermore, the CFPB is (reportedly) mulling applying the provisions of the Electronic Fund Transfer Act (EFTA) and similar legislation to the crypto space.
Two States Joined the Bitcoin Reserve Legislative Race
Bitcoin continued its day in the sun with new reserve legislation drafts in North Dakota and New Hampshire. Legislators in North Dakota introduced resolution No. 3001, part of a bill that wants the State Investment Board and the State Treasurer to invest funds in precious metals and digital assets.
Similarly, on January 10, New Hampshire State Rep. Keith Ammon (R) put forward HB 302, similar to North Dakota’s.
In related news, on January 8, Oklahoma State Senator Dusty Deevers (R) unveiled the Bitcoin Freedom Act or SB325. The bill seeks to enable residents, including government workers, to receive compensation in Bitcoin.
Kraken Made a Proposal to FTX’s Creditors
Boutique crypto exchange Kraken made moves to incentivize FTX’s creditors with an offer. According to a January 9 press release, Kraken unveiled zero-fee trading with a $50,000 cap.
Additionally, clients who receive their FTX repayments via Kraken are eligible, and the offer depends on the amount they will receive.
Sonic Labs Enabled Support for USDC Stablecoins
Sonic Labs, a smart contract-focused Layer-1 network, revealed infrastructure deployments, enabling support for bridged USDC stablecoins. On January 9, Sonic indicated that the token was available via its gateway.
Moreover, the deployment improves liquidity access within Sonic’s ecosystem.
A Meta Shareholder Made an Interesting Bitcoin Proposal
Corporate crypto reserve measures continued to trend. This time, Meta shareholder Ethan Peck proposed that the social media behemoth convert some of its $72 billion cash and cash equivalents into Bitcoin.
The Washington, D.C.-based think tank National Center for Public Policy Research employs Peck and submitted similar suggestions to Amazon and Microsoft last year.
In addition, Peck requested the measure on behalf of his family’s portfolio.
There Could Soon be a New Crypto Subcommittee on Capitol Hill
The crypto conversation continued on Capitol Hill, with reports indicating that a new crypto subcommittee will emerge in the Senate. According to a January 10 X/Twitter post by Fox Business reporter Eleanor Terret, Senate Banking Committee Chair Sen. Tim Scott (R-SC) plans to create a subunit catering to digital assets.
Consequently, Sen. Cynthia Lummis (R-WY) will (expectedly) head the proposed subcommittee.
New York’s AG Wants to Serve Criminals in $2.2 Million Crypto Heist via an NFT
In what could be a sign of things to come, New York Attorney General Letitia James intends to serve the perpetrators of a remote job scam via an NFT. According to a January 9 press release, the AG aims to recover $2.2 million worth of crypto tokens stolen from scam victims.
The scammers (allegedly) manipulated their targets to send funds via exchanges to unhosted wallets. Moreover, the move will be the first by a regulator in enforcement actions.
Cardano’s New Hard Fork is Set for Final Votes
Things could change for the Cardano ecosystem should its proposed Plomin hard fork pass a final vote. The Cardano Improvement Proposal (CIP-1694) was initiated on December 20, 2024, and could propel the network toward further decentralization and self-governance.
The voting rounds start on January 14, 19, and 24. On January 29, the community will (expectedly) reach a final decision.
Gemini Settled with the CFTC for $5 million
The Cameron and Tyler Winklevoss-owned Gemini agreed to settle a 2022 CFTC lawsuit accusing the exchange of misrepresentation in the launch of a Bitcoin futures contract. Gemini (agreed) to pay a civil penalty of $5 million.
Furthermore, the crypto exchange paid the fines without admitting or denying liability.
Binance’s 2024 End-of-Year Report Showed Positive Numbers
Crypto exchange Binance returned to prominence last year, with numbers showing good tidings. According to its 2024 end-of-year report, Binance’s ecosystem reached 250 million members, with the platform adding 50 million members in the least six months of last year.
Furthermore, the exchange hit $100 trillion in cumulative trading volume, alongside management activities of user assets (under custody) worth $160 billion.
A New Bitcoin ETF will Launch at the End of the Month
The Bitcoin ETF race is not over. Finance firm Calamos Investments revealed the launch of a Bitcoin ETF that protects against losses. The no-loss ETF merges the Cboe Bitcoin US ETF Index options and Treasury investments to optimize scenarios.
The ETF features an annual reset mechanism and a profit cap rate.
Moreover, on January 22, the CBOJ ETF will debut on the Chicago Board Options Exchange.
