The crypto sector went into overdrive, with expectations running high for easier breathing space from the incoming administration.
The headlines:
- Bitcoin reserve bills continued making waves at State Capitols;
- VanEck pushed for a new ETF;
- There’s a new IRS tax form;
- Tether may push its American footprint further;
- Plus, the FBI found new ways to catch crypto criminals (more on that later);
- And much more!
As always, these are your decentralized diaries!
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Bitcoin is at $108k (as of 1/20/24)
The Bulls are in! Bitcoin prices moved from an $89,260.10 low to a $109,114.88 high to settle at $108,200.70.
The altcoins are also set for an explosion, too.
Ethereum (ETH) is at $3,365, 83, Solana (SOL) at $262.73, Chainlink (LINK) at $25.72, Avalanche (AVAX) at $38.21, Polkadot (DOT) at $6.66 and Uniswap (UNI) at $14.16.
Bitcoin Reserve Bills Continued to Emerge at State Level
Crypto adoption continued to grow exponentially, with states taking the lead as Washington, D.C., settled down. Legislators presented several Bitcoin reserve bills at the Capitols of Wyoming and Massachusetts.
Wyoming’s bill permits the state treasurer to invest up to 3% of funds in Bitcoin. On the other hand, the Bay State’s bill has a 10% limit on the state’s rainy day fund for digital assets.
Similarly, Texas State Senator Charles Schwertner (R) revealed the filing of SB 778 that seeks to establish a Bitcoin reserve for the Lone Star state.
In related news, California State Assemblyman Philip Chen appointed crypto nonprofit Proof of Workforce to assist in drafting Bitcoin-related adoption legislation for the Golden State.
VanEck Wants to Launch a New ETF
Leading asset manager VanEck took the ETF game further, intending to launch a new product. According to a January 15 SEC filing, the offering dubbed ‘Onchain Economy ETF’ will have most of its assets in the crypto sector.
Furthermore, the fund will focus on ‘Digital Asset Instruments’ and ‘Digital Transformation Companies.’
The Taxman’s New Crypto Form is Live
Thanks to the new IRS Form 1099-DA, crypto oversight by the IRS is now in motion. Centralized crypto exchanges must (directly) report transactions to the IRS.
Consequently, the IRS delayed cost-basis reporting until 2026, and DeFi transactions reporting will go live in 2027.
Stablecoins Facilitated Crypto Crime in 2024-Chainalysis
According to the recently released ‘2025 Crypto Crime Report’ (by Chainalysis), stablecoins dominated illegal crypto transactions last year. Criminals and other bad actors used the token for 63% of their transactions.
Furthermore, stolen assets climbed by 21%, and victims lost $2.2 billion.
Legislators in Arkansas Want to Limit Crypto Mining Activities From Military Facilities
Lawmakers in the Arkansas Capitol addressed security concerns about crypto miners near military bases with SB 60. The bill seeks to restrict miners from locating their facilities near military installations.
Additionally, SB 60 aims to amend the Arkansas Data Centers Act of 2023, imposing a 30-mile limit on miners.
A New Stablecoin Launched on the Solana Network
Stablecoins continued to proliferate the crypto sector with the debut of the First Digital USD (FDUSD), a multichain digital asset on the Solana blockchain. The token is available on several blockchains, including BSC chain, Ethereum, and Sui.
Moreover, in an X/Twitter post, the FDD development team First Digital Labs hinted at upcoming exchange listings.
No Need for an American CBDC-Scott Bessent
During his January 16 Senate confirmation hearing, President Trump’s Treasury pick, Scott Bessent, rejected the idea of a U.S. Central Bank Digital Currency (CBDC). Bessent told the Senate Finance Committee that he saw ‘no need’ for a United States CBDC.
Additionally, Bessent iterated that CBDCs are only for countries with “no other investment alternatives.”
FTX’s Repayments will Begin Soon
The creditors of bankrupt crypto exchange FTX may soon have cause to smile. According to a Twitter/X post by FTX creditor Sunil, the exchange will (expectedly) begin repayments (after January 20).
In addition, claims holders have until the said date to complete their pre-distribution requirements.
The FBI Crushed Jeweler and Crypto Kidnap Plans
In an action movie plot twist, the FBI foiled plans to kidnap a Miami jeweler and steal crypto tokens worth $2 million. According to court filings, a confidential informant tipped the feds about the criminal’s intentions, who were gearing up to carry out their nefarious acts.
Telegram chat screenshots revealed the (intended) victim’s business location and weapons.
Alarmingly, the criminals also (allegedly) wanted to hit their victim on the head without causing brain damage.
Tether Mulls U.S. Expansion
Stablecoin issuer Tether may be in America for the long haul if regulations permit the crypto industry to flourish. In a January 16 Bloomberg interview, Tether CEO Paolo Ardoino hinted at American expansion plans and more.
Consequently, Ardoino indicated that Tether’s increased U.S. foray depends on the incoming administration’s crypto stance.
A Los Angeles Wildfires Ethereum NFT Benefit Project Launched
Amid the ongoing Los Angeles wildfires, prominent NFT artists teamed up to launch a benefit project. On January 17, the Web3 community introduced the “I Heart LA” collection.
The charity set-up features digital art (as NFTs) from several leading creators, including Goyong, Nice Aunties, Grant Yun, CrypToadz creator Gremplin and Larva Labs of CryptoPunks fame.
Proceeds will benefit LA nonprofit Baby2Baby by aiding its continued distribution of essential supplies and other forms of support to displaced families.
