Crypto Compass by BitcoinWalletSG #105

Hello Fam,

The dawn of a pro-crypto administration in the United States marks a pivotal moment for the digital asset industry, with the potential to reshape its regulatory and economic landscape. President-elect Donald Trump’s appointments of crypto-friendly leaders and promises of clear regulatory frameworks signal a new era of innovation and adoption.

From the prospect of a national Bitcoin reserve to executive orders addressing crypto banking and taxation, this administration could unlock unprecedented opportunities for both institutions and retail investors. With clearer rules and a supportive policy environment, the U.S. may position itself as a global leader in blockchain technology, driving broader institutional adoption and sparking the next wave of growth in the crypto ecosystem.

Trump Administration to Overhaul Crypto Regulations on Day One

President-elect Donald Trump is set to take immediate action on crypto regulations upon assuming office, according to reports from The Washington Post. With newly appointed crypto czar David Sacks and former regulator Paul Atkins leading the charge, Trump is expected to issue executive orders on his first day, potentially repealing the controversial SEC guidance known as Staff Accounting Bulletin 121 (SAB 121). This bulletin mandates that companies holding crypto custody record customers’ crypto holdings as liabilities on their balance sheets. Trump’s team is also expected to tackle "de-banking" concerns to ensure crypto firms have better access to banking services. These actions signal a significant shift toward a more crypto-friendly regulatory environment, a stark contrast to the previous administration's approach.

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Tether Relocates to El Salvador, Strengthening Its Commitment to Bitcoin

Tether is on the brink of completing its move to El Salvador, supported by the acquisition of a Digital Asset Service Provider (DASP) license. The stablecoin issuer hailed El Salvador's innovative policies and Bitcoin-friendly ecosystem as ideal for advancing its mission of financial inclusion. This move follows a similar decision by Bitfinex Derivatives and aligns with Tether's goal of fostering Bitcoin and stablecoin adoption in underserved regions. CEO Paolo Ardoino emphasized the alignment between Tether's vision and El Salvador’s commitment to financial freedom and technological resilience. El Salvador, the first country to adopt Bitcoin as legal tender, continues to position itself as a hub for digital asset innovation.

XRP Gains on ETF Optimism

Bitcoin fell 10% to $91,600 this week, reaching its lowest price in two months, while Ethereum dropped 18% to $3,000. In contrast, XRP remained stable at $2.43, buoyed by optimism surrounding potential U.S. spot XRP ETF approvals under the Trump administration. XRP products saw $41 million in inflows, reflecting heightened interest as Ripple’s leadership expressed confidence in upcoming regulatory decisions. Despite macroeconomic pressures and diminishing prospects for Fed rate cuts, analysts foresee a rebound in Bitcoin inflows driven by institutional adoption and ETF investments, with predictions that 2025 could outpace last year’s record allocations.

Happenings of the week

• BlackRock launches Bitcoin ETF in Canada

• JPMorgan predicts $3-8B inflows for SOL and XRP ETFs

• Bitwise CIO says corporate Bitcoin buying is a “megatrend”

• Robinhood to pay $45M SEC settlement

Intesa Sanpaolo Becomes First Italian Bank to Invest in Bitcoin

Italy’s largest banking group, Intesa Sanpaolo, confirmed its purchase of 11 Bitcoins for approximately €1 million, marking a historic move as the first Italian bank to directly invest in cryptocurrency. While motivations for the acquisition remain unclear, it signals growing institutional interest in digital assets, aligning with a global trend of financial giants embracing Bitcoin. The announcement comes amid Italy’s rising Bitcoin capital gains tax and anticipation of pro-crypto policies under President-elect Donald Trump, fueling speculation about a broader shift in the financial landscape.

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