Paul Grewal, Chief Legal Officer (CLO) of Coinbase, raised concerns regarding the Federal Deposit Insurance Corporation’s (FDIC) handling of Freedom of Information Act (FOIA) requests. Grewal’s remarks came after Coinbase encountered redacted and incomplete responses from the FDIC, which raised questions about the agency’s transparency.

Coinbase CLO Paul Grewal Calls Out FDIC

In a series of posts on X, Coinbase CLO Paul Grewal has outlined concerns about the FDIC’s process in responding to FOIA requests. He claimed that the FDIC did not perform full-text searches in its Regional Automated Document Distribution (RADD) database. In addition, the agency reportedly denied the requests for documents that were stored in collaboration tools like Microsoft Teams, thus restricting the range of the disclosed data.

Coinbase CLO Paul Grewal also pointed to specific guidelines in the FDIC’s instructions that required setting some documents as deliberative or attorney-client privileged, which he argues was done to avoid sharing them. Additionally, Coinbase found that at least 150 documents that are potentially related to the case were not included in the FOIA replies provided by the FDIC. Grewal pointed out these loopholes as a cause of concern in the agency’s accountability.

The FDIC representatives answered saying,

“Considering the increase in the scope of your requests, we shall need time to deliberate on your communication and provide our response.”

Concerns About FDIC’s Use of “Pause Letters”

The controversy includes the FDIC’s use of “pause letters” sent to banks, urging them to halt services to cryptocurrency clients. Coinbase alleges these letters were later redacted heavily under FOIA Exemption 8, which protects sensitive financial regulatory matters. 

Paul Grewal claims the exemption was misused to hide information that was not initially considered confidential.

The letters allegedly focused on issues like cryptocurrency lending, stablecoins and blockchain based payment systems. Coinbase Chief Legal Officer Paul Grewal noted that such actions posed legal risks for compliant crypto businesses since banks were not provided with explanations for the restrictions.

Operation Choke Point 2.0 Allegations Resurface

This has brought back the conversation about the ‘Operation Choke Point 2.0’ which was a term used to explain the claims of regulators to deny banking services to cryptocurrency companies. The critics have ascribed the FDIC and other regulators to covertly forcing the banks to shy away from processing crypto transactions using the cover of compliance.

The letters, which were written in 2022 and 2023, showed that the FDIC instructed the banks to cease services on different cryptocurrency products but had not given further instructions afterwards. Critics have claimed that this has slowed down innovation and prevented the expansion of financial services within the crypto industry.

Similarly, some of the comments made by Coinbase CLO Paul Grewal have elicited reactions from other legal and political personalities such as Senator John E. Deaton. Deaton called for more supervision, and noted that the danger of officials discretionarily cutting off access to financial networks cannot be overlooked.

The Coinbase CLO also pointed out that the FDIC should answer clearly as the information disclosed should be made public to ensure that all industries are treated equally, including the cryptocurrency industry.

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The Senate Banking Committee, under the leadership of Senator Tim Scott, is preparing to establish its first-ever subcommittee focused on cryptocurrency oversight. This initiative comes amid increased government attention on digital assets, including the recent sale of $6.7 billion in Bitcoin seized from the Silk Road case by the U.S. Department of Justice.

The move is seen as part of broader efforts to provide regulatory clarity for the rapidly growing cryptocurrency industry. According to a report shared by FOX Business reporter Eleanor Terrett, Senator Cynthia Lummis has been tentatively selected to chair the subcommittee.

Senate Banking Committee Pushes for Dedicated Crypto Subcommittee

The new cryptocurrency subcommittee is similar to the one established in the House Financial Services Committee in 2023 by Patrick McHenry. The decision made by the Senate Banking Committee is in line with the efforts made by both parties to fill the gaps in the regulation of cryptocurrencies, which has been a concern within the digital asset industry.

A Senate aide stated that a vote to formalize Senator Lummis as chair with new Republican and Democrat members will most probably take place next Thursday. This vote is to occur before another confirmation hearing for Scott Turner, the person chosen by President-elect Donald Trump for the position of Secretary of Housing and Urban Development.

NEW: The Senate Banking Committee, led by @SenatorTimScott, is set to establish its first ever subcommittee dedicated to #crypto. The subcommittee will mirror the @FinancialCmte version established by @PatrickMcHenry in 2023.

A Senate aide confirmed that @SenLummis has been…

— Eleanor Terrett (@EleanorTerrett) January 9, 2025

Senator Lummis has been one of the biggest proponents of the growth of digital assets and blockchain technologies. Her leadership in the subcommittee may be able to help bring more attention to addressing industry issues, for example the uncertainty of regulation that has led some companies to shift operations overseas.

Industry Seeks Clearer Regulations Amid Government Action

Senator Lummis has been one of the biggest proponents of the growth of digital assets and blockchain technologies. Her leadership in the subcommittee may be able to help bring more attention to addressing industry issues, for example the uncertainty of regulation that has led some companies to shift operations overseas.

The formation of the Senate’s crypto subcommittee is likely to make the process of enacting coherent and comprehensible legislation even easier. This follows other actions by the government in the crypto sphere such as the sale of Bitcoin that was seized from Silk Road. The DOJ’s auctioning off of $6.7 billion worth of Bitcoin not only represented a significant enforcement action, but also highlighted the government’s increasing presence within the asset class.

As the change of government admin looms, the cryptocurrency industry is also putting pressure on the incoming President of the United States, Donald Trump, to support friendlier policies. Moreover, sources indicate that industry leaders have called for formation of a US Bitcoin reserve and executive orders to foster advancement of the blockchain technology.

Expectations for Senator Lummis’s Leadership

If approved as chair, Senator Cynthia Lummis will have a pivotal influence on setting up the new course for the U.S. cryptocurrency policies. Lummis has long been a proponent of digital assets, often campaigning for their acceptance into the US financial system.

This comes amidst appointments by the Trump administration to replace important regulatory heads such as SEC Chair Gary Gensler with others that are more liberal in the cryptocurrency space. There has also been a suggestion of a new White House position called the “Crypto Czar” within the transition team’s plans.

The creation of the Senate’s cryptocurrency subcommittee has been seen as a significant move to help combat the problems facing the sector. This is anticipated to help promote discussions between the government and businesses to support growth and coordination on regulations.

The vote to set the final list of the members of the subcommittee will be held on Thursday.

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Ahead of the key U.S. SEC’s deadline to file its principal brief regarding appeals in the XRP case, Gary Gensler reiterates anti-crypto statements such as “crypto is rife with bad actors.” He says most crypto projects run on non-compliance and raise money from the public, but cryptocurrencies other than Bitcoin and Ethereum will not survive.

SEC Chair Gary Gensler Says Crypto Projects Will Fail

In an exclusive interview with David Gura on Bloomberg Markets, outgoing SEC Chair Gary Gensler points out the progress the agency has made during his tenure. Gensler will step down on January 20 and Donald Trump’s pro-crypto Paul Atkins to take over the responsibilities.

In response to enforcement actions against crypto companies, he said the SEC did well to address concerns that his predecessors, including Jay Clayton, started. In fact, Jay Clayton brought the case against Ripple on securities violations in XRP sales, as well as, actions against co-founder Chris Larsen and CEO Brad Garlinghouse.

Gensler believes the crypto is “rife with bad actors.” He distinguished crypto into two — Bitcoin and “everything else.” He slammed crypto projects for raising money from the public in hopes of better future returns. Furthermore, he asserts that the crypto field works on sentiments only and not fundamentals.

He predicts that these thousands of crypto projects “will not survive.” Moreover, he also raises concerns about pump and dump schemes. Gensler referred to Sam Bankman-Fried, CZ, and Do Kwon as “notorious” and blamed them for causing investors to lose billions of dollars.

But, SEC Lost Legal Fight in XRP Case

Gary Gensler claims the crypto industry has built up on non-compliance. He argues the crypto industry needs tougher oversight as it continues to grow despite the high-profile enforcement cases against crypto firms such as Ripple, Binance and Coinbase. He said:

“I’m proud of what we have done. Building on what Chair Clayton and others had done previously.”

However, he believes there is still work to be done about regulating altcoins and intermediaries in the crypto market.

On the contrary, federal judges and crypto industry leaders such as Ripple CEO Brad Garlinghouse criticized Gensler and the SEC for overreach. XRP has received legal clarity from the court that it’s not a security in itself. The court rulings in the case are mostly seen as a win for Ripple and XRP holders.

Gensler is to make his last mark in the XRP case as the SEC to file its opening brief regarding appeals in SEC v Ripple by January 15.

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The U.S. Commodity Futures Trading Commission (CFTC) has issued a fresh subpoena to crypto exchange Coinbase just days ahead of President Joe Biden leaving office. This comes as part of the US CFTC’s ongoing investigation into betting markets Polymarket thereby requiring Coinbase to provide specific information regarding customers involved in the case.

US CFTC Seeks Coinbase Customers

Under the outgoing Biden administration, the CFTC has cracked a whip issuing a subpoena to crypto exchange Coinbase in the Polymarket lawsuit.

After receiving an email for the same from the exchange, Eric, co-author of Ethereum’s EIP-1559, shared this information in the public domain. “The dems crypto pivot truly was something else!” he wrote.

The exchange informed its customers through email that it may be required to share account-related information with the US CFTC. However, the company noted that no action is required from customers at this time.

Biden's CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7

— eric.eth (@econoar) January 8, 2025

Crypto Exchange Need to Comply Soon

The action comes with a deadline, unless Coinbase receives a motion to dismiss or other legal documentation by the close of business on January 15, 2025, the company will be required to comply.

The announcement comes just ahead of the CFTC chair Rostin Behnam stepping down before President-elect Donald Trump takes oath on January 20. The Trump transition team has reviewed at least six potential candidates to lead the US CFTC, aligning with the president-elect’s pledge to establish a more crypto-friendly regulatory framework.

Polymarket And Its Regulatory Scrutiny

Polymarket, a decentralized prediction market platform, gained huge popularity during the US Presidential Elections in 2024 drawing attention from regulators like the US CFTC. The regulator demanded limiting the operation of the prediction market while labeling them as gambling platforms.

Unlike the promises by Vice President Kamala Harris of a crypto pivot, the Democrats have continued with the crypto crackdown even in their last days in office. Coinbase and the CFTC have yet to comment publicly on the matter, but the subpoena marks another pivotal moment in the intersection of U.S. regulatory oversight and the cryptocurrency industry.

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As President-elect Donald Trump prepares to take office on January 20, the cryptocurrency industry is closely monitoring his decision on appointing the next Commodity Futures Trading Commission (CFTC) chair.

With outgoing CFTC Chair Rostin Behnam set to step down on inauguration day, the new appointee is expected to play a crucial role in shaping the regulatory framework for the growing digital asset market in the United States.

CFTC Chair Candidates Interviewed by Trump Admin

According to Fox Business, a number of candidates have been reportedly met with by Trump’s transition team for the CFTC chair position with at least six individuals in the running for the post. Current frontrunners for the CFTC position include Summer Mersinger, the CFTC Commissioner, and Brian Quintenz, the current head of crypto policy at Andreessen Horowitz (a16z). The two candidates are familiar with cryptocurrencies and have some experience in the regulation of the industry.

Quintenz has experience in the development of crypto regulations as he served at the CFTC and worked with the former chair Chris Giancarlo to issue clearance for Bitcoin and Ethereum futures contracts. The fact that he is connected to Andreessen Horowitz is beneficial because its founder Marc Andreessen is one of Trump’s leading advisors on crypto and AI.

Mersinger, who is a sitting commissioner at the CFTC, is also an influential policy maker in Washington D.C. She has been a champion for innovation while standing for the rights of consumers within the cryptocurrency industry. She has been applauded by the industry participants for her dissents on enforcement actions against decentralized finance (DeFi) platforms.

A Shift in Crypto Regulation Under Trump’s Administration

The CFTC chair pick is particularly significant due to Donald Trump’s aspiration to make the US the leading country in cryptocurrency innovation. The current outgoing Biden administration, with the SEC Chairman, Gary Gensler, has adopted a more enforcement-oriented approach to crypto regulation. This approach upset the crypto industry that said that such an approach creates ambiguities and drives businesses away to other countries.

On the other hand, President elect Donald Trump has indicated that he will pursue a less hostile approach to regulation. While on the campaign trail, he was endorsed by many crypto executives and vowed to reverse what he and others saw as excessive regulation.

There are already appointments to key roles of crypto-supporters including Paul Atkins to be the head of the SEC and Scott Bessent as the head of Treasury. Therefore, the appointment of a CFTC Chair that is favorable to crypto would only strengthen this agenda.

Mersinger and Quintenz have also been vocal about their disapproval of the current ‘regulation by enforcement’ regime. They have urged the CFTC to assume the mantle of leading regulator of digital assets, claiming that the agency is in a better position to promote innovation than the SEC.

Outgoing CFTC Chair Behnam’s Final Push for Crypto Legislation

Outgoing chairman of the CFTC, Rostin Behnam has emphasized the importance of the comprehensive regulation of cryptocurrencies before his exit. Speaking at the Brookings Institution on Wednesday for the last time, Behnam pointed out that the absence of a specific set of rules has left certain issues that require the attention of Congress.

Behnam said, “My position remains the same, and I will support the CFTC to address this gap if Congress wishes it to do so even after I am no longer part of the Commission.” He also said that new laws could take from six to ten months, with agency rulemaking taking one more year.

While serving at the CFTC, the commission brought enforcement actions against several crypto companies, including the defunct exchange FTX and Gemini Trust. Nevertheless, Behnam pointed out that the current legal framework is inadequate to deal with the issues emerging from digital assets and called on the legislators to focus on the development of dedicated crypto laws.

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Gary Gensler, the outgoing Chair of the U.S. Securities and Exchange Commission (SEC), reaffirmed his stance on the need for stricter regulation of the cryptocurrency industry. Speaking during an interview with Bloomberg TV on Wednesday, Gensler described the crypto market as “rife with bad actors” and called for enhanced oversight to protect investors.

Gensler, who has led the SEC since 2021, emphasized the importance of enforcing existing laws and ensuring compliance among crypto firms. His tenure has been marked by vigorous enforcement efforts, including legal actions against major players like Coinbase and Ripple. He is set to step down on January 20, the day President-elect Donald Trump is sworn in.

SEC Enforcement Actions Under Gary Gensler’s Leadership

While at the US SEC, Gary Gensler aimed at dealing with misconduct in cryptocurrencies market which he described as being ‘Emotive’ rather than being based on fundamental analysis. He noted that the agency had pursued around 100 crypto-related enforcement actions during his four years in the post, adding to the 80 actions taken by his predecessor, Jay Clayton.

The SEC’s focus under Gensler has been on companies and other entities that are alleged to have broken securities laws. Some of them were against Coinbase Global Inc. for allegedly helping in trading unregistered securities and lawsuits against Ripple Labs concerning XRP. Some of these cases ended with the SEC winning the court cases while others were controversial and even led to legal battles and backlash from the cryptocurrency community.

‘Everyday investors deserve better disclosures and protections,’ Gensler said in the Bloomberg interview, restating his view that most digital assets are securities. He urged the crypto firms to come clean and report to the SEC and operate within the prevailing legal framework.

Criticism From the Crypto Industry

US SEC Chair Gary Gensler’s approach has elicited a lot of backlash from the cryptocurrency industry. A number of participants noted that this approach of the SEC leads to over-enforcement and deters innovation. They also argue that the current legal frameworks are ineffective in the digital assets space, which puts compliance out of reach for crypto companies.

Coinbase, which has been on the receiving end of the SEC’s actions, obtained a recent legal reprieve when a court permitted it to proceed with an interlocutory appeal in its lawsuit against the agency. Another high-profile company, Ripple Labs, has also faced several legal cases with the SEC with the latter expected to file opening brief related to appeals against Ripple and its executives before deadline

Gensler has come to the defence of the SEC, saying that the agency had no choice but to act in order to protect investors and preserve the market’s integrity. “Out of these 10,000 to 15,000 crypto projects, many will not survive,” he said, comparing the sector to venture capital investments which have a high failure rate.

Transition in Leadership at the US SEC

With US SEC Chair Gary Gensler set to depart, the agency is likely to take on a different direction. Donald Trump is expected to appoint Paul Atkins, a former commissioner of the Securities and Exchange Commission, as the head of the agency. Atkins is expected to be less hostile towards the industry and may decrease the number of actions against cryptocurrency companies.

During Atkins tenure, the SEC could shift its attention toward promoting innovation and growth while ensuring a proper level of supervision. This move could be a radical change from the Gensler period, who focused on going after firms that it accused of violating the securities laws.

Despite this, Gensler said that he is happy with what has been accomplished at the SEC under his leadership, although he noted that there is still more work to be done to address the rapidly developing digital asset markets.

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The US has said that Do Kwon, the co-founder and former CEO of Terraform Labs, the company behind the Terra ecosystem, will have his criminal fraud trial commence in January 2026. This came out on Tuesday during the first court hearing in Manhattan where the two sides are starting to review through the six-terabyte database of evidence.

Here’s Why Terraform Co-Founder Do Kwon’s Trial Is Delayed Until 2026

According to the latest report from Manhattan’s Southern District Court, the criminal fraud trial of Terraform Co-Founder Do Kwon will start in January 2026. This is because the two parties require more time to go through the six terabytes of data in the discovery process.

Several factors that the Prosecutors pointed out as reasons for the delay include inability to access four cell phones produced by the Montenegrin authorities during Kwon’s extradition. Moreover, the translation of the extracted data from Korean language to English language took much time.

Authorities think that these encrypted phones are the main piece of evidence that can be connected to the charges against the Terraform Co-Founder. These devices are central to the prosecution’s case as they may hold records of financial transactions and communications directly linked to the allegations of crypto fraud.

Do Kwon’s Custody and Legal Proceedings to Date

Discovery Process Presents Challenges for Both Sides

During the initial hearing, lead prosecutor Jared Lenow emphasized the magnitude of the evidence. The government is working to unlock the four encrypted devices provided by Montenegrin authorities and assess their relevance. Similarly, the translation of communications from Korean into English adds another layer of complexity.

The presiding judge, Paul Engelmayer, noted the unusual length of time between the initial conference and the trial date. While unprecedented in his career, Engelmayer granted the delay to ensure both parties had adequate time to analyze the evidence. The defense team has until next week to decide if Kwon prefers an earlier trial date in 2025.

Terraform Co-Founder Faces Multiple Legal Challenges

The legal troubles for the Terraform Co-Founder are far from over. Apart from the crypto fraud charges, Kwon continues to be a focus of investigations connected with the fall of the Terra/LUNA. His position as the CEO during the period of the project collapse has put him under pressure from regulators.

The next trial will concern charges of securities fraud, wire fraud and other related charges. Therefore, the prosecution will depend on the evidence from Kwon’s devices. If found guilty, the trial will have a bearing on how other high profile crypto fraud cases will be addressed in the future.

The court has scheduled the next status conference for March 6, 2025, at 11 a.m. Eastern Time. During this session, the court will review updates on the discovery process and any potential changes to the trial timeline. Both the defense and prosecution will provide progress reports on their analyses of the crypto fraud evidence.

Moreover, a recent filing made after Kwon’s extradition shows that Terra collapse may have affected more than a million investors globally. US prosecutors have weighed in on the scope of the global impact and noted its spread.

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Gemini Trust Co., the company established by Cameron and Tyler Winklevoss, has reached a settlement of the case with the CFTC for $5 million. The complaint revolved around accusations that Gemini Trust submitted false and misleading information when trying to establish the first US-licensed Bitcoin futures contract.

Winklevoss Twins’ Gemini Ends CFTC Dispute With $5M Settlement

In a Bloomberg report, Gemini Trust agreed to settle with the CFTC and paid $5 million. This settlement is with respect to the regulator’s claims without Gemini admitting or denying liability. The case was filed in Manhattan federal court and the case was set to go to trial on January 21, 2025.

The legal action arose from allegations that Gemini Trust misled the CFTC in 2017 while describing mechanisms to prevent manipulation in Bitcoin pricing. These mechanisms were to serve as references for derivatives linked to the cryptocurrency.

This Gemini settlement comes after another recent prediction by former SEC enforcement lawyer Marc Fagel, who stated that a settlement is likely in the Ripple SEC case. Fagel noted that both Ripple and the SEC appealed parts of the case they lost, leaving penalties on hold. He believes the incoming Trump administration and SEC Chair Paul Atkins may decide not to pursue the appeal, prompting a settlement. 

CFTC Allegations and Regulatory Efforts

The CFTC had alleged that Gemini Trust made false statements regarding its Bitcoin futures contract proposal. The regulator argued that the company’s safeguards against price manipulation were insufficient and not accurately represented to the commission.

During the investigation, Gemini Trust provided subpoenaed laptops belonging to two former executives. These were part of a related criminal probe that ended without any charges. While the criminal investigation closed, the civil case brought by the CFTC continued, ultimately resulting in a $5 million settlement.

The civil enforcement case was one of many brought under President Joe Biden’s administration, which sought to tighten regulatory oversight. With President Donald Trump set to begin his second term on January 20, 2025, crypto advocates anticipate a shift toward industry-friendly policies.

Moreover, in a recent report, Brad Garlinghouse highlighted the “Trump effect” on Ripple, revealing that 75% of Ripple’s open roles are now US-based. He noted that the company signed more US deals in the last six weeks of 2024, post-Trump’s victory, than in the prior six months. Garlinghouse also emphasized the success of Ripple’s RLUSD stablecoin, which recently surpassed PYUSD and EURC in 24-hour trading volume.

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Ripple CEO Brad Garlinghouse has highlighted the positive impact that Donald Trump’s victory has had on Ripple’s business. Garlinghouse also referenced the “Trump bull market,” which undoubtedly provides a bullish outlook for coins like XRP.

Brad Garlinghouse Highlights Trump’s Impact On Ripple

In an X post, Brad Garlinghouse discussed the impact of Donald Trump’s election victory on Ripple’s operations. He revealed that 75% of the company’s open roles are now US-based.

This represents a change, as Garlinghouse noted that over the last four years, most of the company’s hires were outside the US. Furthermore, the Ripple CEO revealed they had signed more US deals in the last six weeks of 2024 (since Trump’s victory) than in the previous six months.

Trump’s victory has undoubtedly provided a bullish outlook for the crypto industry because of his pro-crypto stance. Brad Garlinghouse remarked that Team Trump is already jumpstarting innovation and job growth in the US with Scott Bessent, David Sacks, Paul Atkins, and others at the helm.

He added that the “Trump effect” is already making crypto great again through his campaign and in the Administration’s day 1 priority. Ripple looks to have really benefitted greatly from this Trump effect.

The crypto firm finally launched its RLUSD stablecoin after the US president-elect defeated Kamala Harris in November last year. The RLUSD stablecoin has already enjoyed significant success, as it recently flipped PYUSD and EURC in 24-hour trading volume.

The “Trump Bull Market” Is Real

In his X post, Brad Garlinghouse also stated that the “Trump bull market” is real. He remarked that for Ripple, this bull market is even more personal after Gary Gensler’s SEC effectively froze their business opportunities in the US for years.

He added that optimism about the bull market is obvious and very deserved. This Trump bull market undoubtedly provides a bullish outlook for the XRP price especially.

With pro-crypto Paul Atkins set to lead the US Securities and Exchange Commission (SEC) under Trump’s Administration, the Commission could drop its long-running lawsuit against Ripple and Brad Garlinghouse.

This is bullish for XRP because of the crypto’s ties with Ripple. The coin is believed to have remained stagnant in the 2021 bull run because of the lawsuit.

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The race to secure approval for crypto ETFs is heating up as the US SEC continues evaluating applications.

Following the success of Bitcoin and Ethereum ETFs, attention has shifted to altcoins such as Solana (SOL), XRP, Litecoin (LTC), and Hedera (HBAR). Market analysts and industry insiders are debating which crypto ETF will gain approval first in 2025.

Crypto ETF’s: Rising Confidence in Solana ETFs

Polymarket, a prediction market built on blockchain, estimated an 85% chance of the US SEC approving Solana ETFs by the end of 2025. This is an upward revision from the earlier estimation of 45%, depicting enhanced confidence among the investors.

Grayscale, VanEck, and Bitwise are some of the big names in the asset management industry that have submitted proposals for Solana ETFs, which shows that more and more institutions are coming into the space. However, the recent classification of SOL as security by the US SEC in its ongoing legal battles has created some element of risk in the process. Experts say this could cause delay in approval even though there is a high demand for the two products.

Another factor that has increased confidence is the recent filing made by Volatility Shares for Solana futures ETFs. However, these futures are not currently available on regulated exchanges, but this is seen as a positive move towards the listing of Solana-based financial derivatives.

Litecoin and Hedera ETFs Seen as Frontrunners

Bloomberg analysts Eric Balchunas and James Seyffart predict that crypto ETFs such as Litecoin and Hedera ETFs are more likely to gain approval before Solana and XRP. The lack of regulatory issues makes Litecoin and Hedera advantageous, according to them.

Solana and XRP, on the other hand, have been classified as securities by the SEC, which makes their regulatory journey more challenging for them. Critics have noted that this legal certainty puts these crypto ETFs in a better position than their counterparts. Nevertheless, there is continuing institutional demand for these products, with only several filings to date, including Canary Capital’s case.

The likeness of Litecoin to Bitcoin and the effectiveness of Hedera’s hashgraph concept will be seen to draw investors’ attention once approved. These attributes may help to guarantee their approval as the next ETFs on the market, according to analysts.

XRP ETFs Face Legal Hurdles

The approval of the XRP ETF, which has hit 70% on Polymarket has been a long and winding road for XRP due to the ongoing legal battle between the US SEC and Ripple. Although Ripple secured a partial legal win, the issue of XRP being considered a security has not been fully solved.

Franklin Templeton and Bitwise are some of the several asset managers who have submitted applications for XRP ETFs, signaling their confidence in the digital asset. Nevertheless, experts estimate that the remaining legal questions may prevent the SEC from approving crypto ETFs until after the regulator’s leadership transition under pro crypto president Donald Trump.

Experts also point out that XRP’s renewed interest for cross-border payments could position it as a strong candidate for eventual ETF approval, provided legal barriers are resolved. Concurrently, the anticipated leadership change at the US SEC, with Gary Gensler stepping down in January 2025, is seen as a pivotal factor.

Analysts suggest that the new, crypto-friendly chair Paul Atkins could create a more favorable environment for ETF approvals. This change could impact the timing and order of approvals for Solana, XRP, Litecoin, and Hedera ETFs.

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Donald Trump’s victory in the US presidential election, along with a wave of pro-crypto candidates winning their races, has sparked interest among Canada’s cryptocurrency leaders. The crypto industry in the US invested heavily in these elections, spending $135 million to support candidates through initiatives like the Crypto’s Fairshake PAC and other super PACs.

Donald Trump’s US Election Win Spurs Crypto Advocacy Efforts in Canada

According to a Bloomberg report, Donald Trump’s presidential victory and the success of pro-crypto candidates in the US elections have led to increased interest among Canadian crypto advocates. The US crypto industry invested $135 million in supporting candidates through campaigns such as Crypto’s Fairshake PAC, backed by Coinbase, Ripple Labs, and Andreessen Horowitz.

In response, Canada’s crypto leaders are focusing on grassroots advocacy rather than campaign funding due to Canada’s strict donation limits. Stand With Crypto, a US-based advocacy group, expanded its efforts to Canada in mid-2023. The advocacy group is mobilizing local communities to engage with policymakers and raise awareness about digital assets.

As Canada’s interest in cryptocurrency advocacy grows, it recently marked a regulatory milestone with USDC issuer Circle. The stablecoin issuer became the first stablecoin provider to meet the new Value-Referenced Crypto Asset (VRCA) guidelines set by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA). This approval ensures USDC’s continued availability on compliant Canadian platforms.

Focus on Policy Reforms and Stablecoin Regulation

Canada’s cryptocurrency industry has identified key areas for policy reform, including the regulation of stablecoins, retirement plan exposure to Bitcoin, and tax-free savings account options for crypto. Canadian Securities Administrators introduced stricter rules in late 2023, limiting the listing of stablecoins on crypto trading platforms.

These regulatory challenges have led to the exit of major platforms like Binance, Bybit, and OKX from the Canadian market. Industry leaders argue that stablecoins should be regulated as payment instruments rather than securities, aligning with global practices. This issue remains a central focus for Canadian crypto advocates.

Increased Transactions and Adoption Post-US Election

However, since Donald Trump’s election win, crypto prices and trading volumes have surged in both the US and Canada. WonderFi Technologies reported an increase in customer transactions, while Coinbase Canada noted higher user sign-ups. This growing interest reflects a rising awareness of the potential benefits of digital assets.

The chief executive officer of WonderFi Technologies Inc., Dean Skurka, commented,

“We’re hopeful, but it hasn’t quite played out that way in Canada historically, and obviously in the US this is the first time that it’s really become an election issue. Hopefully the positive response that it has seen the start of will be a signal to Canadian politicians to take it seriously.”

Lucas Matheson, CEO of Coinbase Canada, emphasized the importance of staying competitive in the global digital economy. He pointed to the Donald Trump administration’s pro-crypto appointments and increased adoption in the US as a call to action.

Matheson added,

“There are significant changes coming in how the US government and citizens in the US take advantage of the digital economy. It’s incredibly important that Canadians don’t miss out on this and sit on the sidelines and wait until the rest of the world has figured out how to take advantage of digital assets.”

With the next Canadian federal election approaching, Canada’s leaders aim to make digital assets a central political issue. The industry is advocating for open banking laws to include crypto and pushing for blockchain technology adoption.

Meanwhile, Donald Trump promise to make the US the crypto capital has faced challenges as 95% of Bitcoin is already mined, leaving limited scope for domestic production. Additionally, the reliance on Bitcoin mining equipment sourced from China complicates efforts to centralize operations within the US.

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Terraform Labs co-founder Do Kwon has entered a plea of not guilty to fraud charges in the United States. The charges are linked to the $40 billion collapse of TerraUSD, a stablecoin developed by Kwon’s Singapore-based company. The case, which has drawn global attention, is being prosecuted by the Manhattan US Attorney’s Office.

Do Kwon Pleads Not Guilty To US Fraud Charges

Terraform Labs Co-Founder Do Kwon, 33, was extradited to the US earlier this week after being detained in Montenegro for traveling on a fake passport. He had been arrested at Podgorica Airport in March 2023 while attempting to board a private jet bound for Dubai.

Montenegro’s courts initially ruled in favor of South Korea’s extradition request, but the US ultimately secured his transfer due to its security partnership with Montenegro.

On Thursday, Kwon appeared before US Magistrate Judge Robert Lehrburger in Manhattan, where he entered a not guilty plea. Through his attorney, Terraform Labs Co-Founder Do Kwon agreed to remain in custody without bail while the legal proceedings unfold. A conference for the case is scheduled for January 8, 2025.

Fraud Allegations Surrounding TerraUSD and Luna

The charges against Kwon include nine counts, such as wire fraud, securities fraud, commodities fraud, and conspiracy. Prosecutors allege that Do Kwon misled investors about the stability of TerraUSD, a stablecoin designed to maintain a $1 value.

According to the indictment, Terraform Labs Co-Founder Do Kwon secretly worked with a high-frequency trading firm to artificially maintain TerraUSD’s value when it slipped below its peg in 2021. This claim, along with others, allegedly convinced investors to purchase Terraform’s products, boosting the valuation of Luna, another token closely tied to TerraUSD.

By the spring of 2022, Luna and TerraUSD were valued at $50 billion. However, their collapse in May 2022 triggered widespread losses across the cryptocurrency market, including declines in Bitcoin and other major digital assets.

SEC Civil Case and Terraform’s Bankruptcy

The legal troubles for Kwon and Terraform Labs extend beyond criminal charges. In 2022, the US Securities and Exchange Commission (SEC) filed a civil fraud lawsuit against Kwon and the company. A federal jury in Manhattan found Kwon and Terraform liable in April 2024, leading to a $4.47 billion judgment against the firm.

While Terraform Labs settled with the SEC in June 2024, agreeing to pay an $80 million civil fine, the company filed for bankruptcy in January 2025. Kwon had not attended the SEC trial as he was detained in Montenegro at the time.

Concurrently, Terraform Labs Co-Founder Do Kwon is one of several cryptocurrency executives facing legal consequences after the dramatic decline in digital token prices in 2022. The collapse of Terraform’s products is seen as a key event that destabilized the market, contributing to the bankruptcy of major firms like FTX.

Other high-profile cases include Sam Bankman-Fried, the FTX founder sentenced to 25 years for defrauding investors of $8 billion, and Alex Mashinsky, the former Celsius Network CEO who pleaded guilty to fraud in December 2024.

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Ripple’s Chief Legal Officer, Stuart Alderoty, outlined six key principles on New Year’s Eve, urging the US SEC to adopt a measured approach to crypto regulation. According to Alderoty, the SEC should only regulate securities transactions rather than expand its authority over asset sales without contractual rights or obligations.

Ripple CLO Shares 6 Guidelines for SEC Crypto Regulation in 2025

In a statement shared on social media, Ripple CLO Stuart Alderoty emphasized the limited jurisdiction of the US SEC. He stated that the regulatory body should only oversee security transactions. Simple asset sales, such as selling a gold bar without associated rights or obligations, fall outside the Securities and Exchange Commission purview.

Alderoty illustrated his point by contrasting two scenarios: selling a gold bar with contractual rights to a gold mine, which constitutes a security transaction, versus selling a gold bar without such conditions, which does not. This clarification asserts that the US Securities and Exchange Commission cannot regulate transactions that lack post-sale obligations.

Moreover, Alderoty rejected the idea that a cryptocurrency token can change its classification from a security to a non-security. He labeled this concept a theory without legal support. This notion, he argued, serves only to complicate cryptocurrency regulations.

Alderoty insisted, 

“Let’s hope these principles won’t need repeating in 2025 and beyond.”

The Ripple CLO also reiterated that while cryptocurrency tokens may be used in security transactions, they are not inherently securities. This distinction is crucial for the industry, as it challenges the SEC’s broader interpretation of its authority over digital assets.

Call for Collaboration Between US SEC and Congress

Alderoty urged the next SEC chair to adopt a collaborative approach with Congress. He recommended focusing on clear and transparent rules for the cryptocurrency industry. This call for cooperation aligns with Ripple’s position against the SEC’s enforcement actions.

In his statement, Alderoty also emphasized the need for the US Securities and Exchange Commission to address only fraud-related cases involving crypto. He criticized the regulator for expanding its jurisdiction based on subjective criteria, which he described as self-serving.

Moreso, recently, Ripple CLO Stuart Alderoty emphasized the urgency of ending the Ripple vs SEC lawsuit, labeling it a “lawless lawsuit”. Alderoty reiterated his call for the incoming Trump administration to address the controversies surrounding former SEC official William Hinman’s statements. The Ripple CLO claims that his statements caused regulatory confusion and undermined trust in the agency.

The six principles outlined by Alderoty reflect Ripple’s stance on fostering fair regulatory practices. With the incoming Donald Trump administration, the cryptocurrency industry anticipates a shift toward more cooperative regulatory practices.

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Pro-XRP attorney John Deaton has rebuked a newly finalized crypto tax reporting rule issued by the Biden administration. The rule, titled “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales,” was recently introduced by the IRS. Deaton has labeled the regulation as detrimental to decentralized finance (DeFi).

Pro-XRP Lawyer John Deaton Criticizes New IRS Rules

Following a recent announcement by the Internal Revenue Service (IRS), John Deaton has raised concerns over the newly finalized crypto tax regulations. The rules require brokers to facilitate digital asset transactions, report gross proceeds, and provide customers with Form 1099. This obligation includes collecting user data such as names and addresses.

Deaton argued that these regulations unfairly target DeFi platforms. He emphasized that autonomous and permissionless smart contracts cannot comply with such requirements, as they lack centralized control or intermediaries capable of gathering user data.

The lawyer added, 

“Enforcing this kind of requirements on DeFi will stifle innovation and continue to drive developers and projects offshore.”

Additionally, most recently the crypto advocate criticized Senator Elizabeth Warren for her anti-crypto stance and alignment with the banking industry. He argued that Warren’s influence on financial policies and strict crypto regulations stifled industry growth. Also, Deaton accused Senator Elizabeth Warren of being a primary lobbyist for the banking industry over the past decade.

Impact of Reporting Obligations on Decentralized Finance

The rule imposes broker-like responsibilities on front-end service providers interacting with users and offering decentralized protocol access. However, the regulation excludes the DeFi protocols themselves from reporting requirements. Critics, including John Deaton, believe this creates operational challenges for entities in the DeFi ecosystem.

Deaton compared the new regulation to a previous legislative effort by Senator Elizabeth Warren, which he described as a de facto ban on self-custody for Bitcoin. He stated that the rules undermine decentralization and user privacy, both fundamental to DeFi’s core principles.

Moreover, John Deaton noted that such regulations will drive developers and projects offshore, away from the United States. This shift, according to Deaton, could hinder the growth of the digital asset industry domestically.

Furthermore, he suggested that these last-minute rules might be intended to counteract the next administration’s potential pro-crypto stance.

The finalized regulations are set to take effect on January 1, 2027, giving the industry a window to adapt. The IRS has clarified that these rules aim to bring DeFi brokers under the same tax reporting obligations as traditional securities brokers. The crypto advocate urged the new Congress to prioritize reversing these rules, citing their potential to harm DeFi innovation.

Deaton comments come amid Donald Trump pledge to make the U.S. the crypto capital by ensuring all remaining Bitcoin is “made in the USA.” However, with 95% of Bitcoin already mined and the introduced crypto tax, this goal faces some challenges.

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The Internal Revenue Service (IRS) has clarified its stance on the taxation of cryptocurrency staking rewards, stating that such rewards are taxable upon receipt. The announcement comes amid an ongoing lawsuit filed by crypto investor Joshua Jarrett.  Joshua challenges the IRS’s approach to taxing staking activities. This legal development has sparked widespread attention within the cryptocurrency community.

IRS Confirms Staking Rewards Are Taxable Amid Ongoing Legal Battle

According to a recent Bloomberg report, the Internal Revenue Service asserts that rewards earned through staking activities must be included as gross income for the year they are received. The agency’s stance is based on Revenue Ruling 2023-14, which mandates that any value received from staking qualifies as taxable income. Taxpayers are required to report the fair market value of staking rewards as taxable income. This value is determined at the time they gain control over the tokens.

The IRS issued the clarification during a legal dispute involving Joshua Jarrett. Jarrett contends that staking rewards should not be treated as taxable income. He asserts that they represent newly created property rather than income. However, the IRS denies this claim, maintaining that the rewards are fully taxable because recipients gain both “dominion and control” over the tokens.

Crypto tax has been a hot debate around the globe recently. Consequently, recent reports indicate that Hong Kong is planning to exempt crypto taxes for private equity and hedge funds to attract foreign capital. This strategic move aligns with its vision of becoming a leading finance and cryptocurrency hub in Asia. The announcement comes amid similar developments in the U.S., where Trump’s administration is considering crypto tax exemptions.

Revenue Ruling 2023-14 Central to the Legal Challenge

The Internal Revenue Service relies heavily on Revenue Ruling 2023-14 to support its position on staking rewards. This ruling mandates taxpayers to report the value of tokens generated through staking as part of their gross income.

Moreover, the IRS requires taxpayers to report staking rewards as taxable income as soon as they gain control over the tokens.

Jarrett’s lawsuit, filed in October, aims to challenge the application of this ruling to staking rewards. The case’s outcome will shape the regulation and taxation of crypto staking activities.

Meanwhile, the timing of the Internal Revenue Service’s clarification comes as the cryptocurrency industry experiences rapid growth. With increasing adoption and record-breaking valuations, regulatory authorities have intensified their scrutiny of cryptocurrency activities. 

Most recently, the European Union finalized its MiCA regulation, providing a comprehensive framework to govern crypto assets. The policy outlines stringent measures for market abuse prevention and stricter rules for crypto-asset service providers. With MiCA set to take effect on December 30, 2024, stakeholders are preparing for transformative changes.

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The U.S. Securities and Exchange Commission (SEC) has charged Tai Mo Shan Limited, a subsidiary of Jump Crypto Holdings LLC, for misleading investors about the stability of Terra USD (UST), an algorithmic stablecoin created by Terraform Labs.

The SEC also accused Tai Mo Shan of unlawfully offering and selling LUNA, a cryptocurrency issued by Terraform, as unregistered securities.

Misleading Investors About Terra USD Peg Stability

The SEC alleged that Tai Mo Shan deceived investors by creating the impression that Terraform Labs’ algorithmic mechanism was maintaining the $1 peg of UST. When UST fell below its $1 value in May 2021, Tai Mo Shan entered an agreement with Terraform Labs to intervene in stabilizing the price. Under this agreement, Terraform incentivized Tai Mo Shan with discounted LUNA tokens to buy UST and attempt to restore its peg.

On May 19, 2021, Tai Mo Shan made substantial purchases of UST, totaling over $20 million, which temporarily stabilized the stablecoin’s price.

The SEC stated that these actions misled the market into believing that Terraform’s algorithm was maintaining the peg, while the stability was actually driven by Tai Mo Shan’s trades. This conduct was deemed negligent by the SEC, as investors were not informed about the reliance on external intervention to stabilize UST.

Role as a Statutory Underwriter for LUNA

The SEC’s findings revealed that Tai Mo Shan acted as a statutory underwriter for Terraform Labs by acquiring LUNA tokens with the intent to resell them on U.S.-based platforms.

From January 2021 to May 2022, Tai Mo Shan offered and sold these tokens as securities without proper registration, violating U.S. securities laws.

The SEC classified LUNA as a security, noting that Tai Mo Shan acquired the cryptocurrency from Terraform for distribution to the public. This activity further contributed to the SEC’s charges of unregistered securities offerings.

As part of the settlement, Tai Mo Shan agreed to pay $73.45 million in disgorgement, $12.91 million in prejudgment interest, and a $36.72 million civil penalty. These penalties aim to address the illegal gains obtained through misleading actions and unregistered transactions.

Tai Mo Shan neither admitted nor denied the findings of the SEC’s investigation. However, the company agreed to comply with a cease-and-desist order prohibiting future violations of federal securities laws.

US SEC’s Statement on Investor Protection

SEC Chair Gary Gensler emphasized the need for compliance in the crypto markets, stating, “Too many times in the crypto markets, we’ve seen investor losses due to fraud. Regardless of the labels, crypto market participants should comply with securities laws and not deceive the public. Otherwise, investors get hurt.”

The SEC also highlighted that Terraform Labs and its founder, Do Kwon, were found liable for fraud and unregistered securities offerings earlier in 2024. Terraform and Kwon agreed to pay $4.5 billion to compensate harmed investors, demonstrating the widespread fallout from the Terra ecosystem’s collapse.

This case marks another step in the SEC’s ongoing efforts to regulate the cryptocurrency industry and protect investors from deceptive practices.

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Crypto advocate John Deaton has publicly criticized Senator Elizabeth Warren’s stance on cryptocurrencies and her perceived alignment with the banking industry. His remarks followed Warren’s appointment as the top Democrat on the Senate Banking Committee, intensifying the ongoing debate surrounding her approach to crypto regulation and financial policy.

John Deaton Criticizes Senator Elizabeth Warren

In a recent post on X, John Deaton accused Senator Elizabeth Warren of being a primary lobbyist for the banking industry over the past decade. He also criticized her reelection slogan, which labeled her as part of an “anti-crypto army.” According to Deaton, this messaging played a role in the Democrats’ loss in the recent election.

Deaton expressed dissatisfaction with Warren’s influence in shaping financial policies, criticizing her approach to cryptocurrencies. He argued that her perceived ties to the banking sector undermine the growth of the crypto industry.

The crypto advocate added, 

“Worse than that, her reelection slogan of building an anti-crypto army helped cost the Democrats the election. I guess you folks truly didn’t learn anything from this election.”

His comments reflect ongoing tensions between crypto advocates and lawmakers who are skeptical of digital assets. Most recently, Coinbase CEO Brian Armstrong added to the criticism, blaming SEC Chair Gary Gensler and Senator Elizabeth Warren for contributing to Kamala Harris’s loss in the 2024 U.S. presidential election. 

Armstrong argued that their stringent crypto regulations alienated young voters and the tech industry, diminishing support for the Democratic Party

Senator Warren Appointed to Key Senate Banking Role

Elizabeth Warren has been named the top Democrat on the Senate Banking Committee. This positions her to influence regulatory policies on financial institutions and cryptocurrencies. Her appointment has drawn mixed reactions. Warren supporters praise her efforts to tackle corporate misconduct and critics questioning her approach to innovation in financial technology.

Warren has previously been vocal about her skepticism toward the crypto industry, citing concerns over fraud and financial stability. Her position on the committee is expected to amplify these views, potentially shaping future regulatory measures.

Amid these developments, Elon Musk reignited a political feud with Elizabeth Warren, accusing her of acting on behalf of Sam Bankman-Fried’s parents. Musk’s comments were a response to Warren’s critique of his role in President-elect Donald Trump’s transition team. She also raised concerns about his influence in the Department of Government Efficiency (DOGE).

Musk alleged that Warren’s letter questioning his involvement in DOGE was influenced by her ties to Bankman-Fried’s family. This accusation adds another layer to the ongoing debate about Warren’s stance on financial transparency.

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The cryptocurrency industry is positioning itself to have a greater say in U.S. digital asset regulations as President-elect Donald Trump prepares to take office. Crypto executives and investors are actively lobbying to secure seats on a proposed advisory council, which could play a pivotal role in shaping future cryptocurrency policy.

Trump  Advisory Council Could Reshape Crypto Regulation

President-elect Trump is reportedly weighing two different structures for the advisory council that will provide guidance on cryptocurrency policies. According to sources familiar with the discussions, one option involves a smaller council of approximately 10 senior executives, such as CEOs of major crypto firms. This smaller group would wield significant influence over policy decisions.

An alternative option being considered is a larger, ceremonial council composed of 50 to 100 members, serving mainly as an information-gathering body. The final decision is expected to be announced in January, shortly after Trump’s inauguration. An executive order to establish the council is anticipated within the first weeks of the new administration.

Another crypto executive, David Sacks, is Trump’s appointee as the first-ever AI and cryptocurrency czar, is expected to oversee the council’s formation. Sacks will report directly to the White House Office of Science and Technology Policy, making him a key figure in guiding U.S. crypto and AI strategies.

Industry Leaders Actively Lobby for Influence

Prominent cryptocurrency executives have increased their efforts to secure influence in shaping the new administration’s policies. Kris Marszalek, CEO of Crypto.com, recently met with Trump at Mar-a-Lago to discuss regulatory issues and potential council appointments.

Additionally, reports indicate that other high-profile figures, such as Justin Sun, founder of Tron, have aligned themselves with Trump’s crypto initiatives. Sun revealed that he invested $30 million in a project called World Liberty Financial, promoted by Trump and his sons. While Sun stated he had no involvement in the project’s purchase of tokens related to his own ventures, the investment has drawn attention to his potential role in Trump’s crypto framework.

Crypto executive MicroStrategy co-founder Michael Saylor, a well-known advocate of Bitcoin, also expressed interest in advising the administration on cryptocurrency policy. In a Bloomberg interview, Saylor stated,

“I’m always willing to provide a thought on constructive digital asset policy, either in confidence or publicly.”

Trump’s Crypto Agenda Spurs Market Optimism

Trump’s pro-crypto stance has already fueled market enthusiasm, with Bitcoin recently surpassing $108,000 for the first time. This record-breaking rally followed Trump’s announcement of plans to create a U.S. Bitcoin strategic reserve, akin to the country’s strategic oil reserve.

The policy proposal has invigorated investors, as it signals a shift toward regulatory clarity and support for digital assets.

Subsequently, many in the industry view the proposed council as an opportunity to advocate for policies that foster growth and innovation in the U.S. crypto market.

David Sacks Tasked with Dual AI and Crypto Mandate

David Sacks, a former PayPal executive and seasoned investor, will lead the administration’s efforts in cryptocurrency and artificial intelligence.

Known for his role in building enterprise software company Yammer, which was acquired by Microsoft for $1 billion, Sacks brings experience in both technology and business.

Sacks’ appointment marks a strategic move by Trump to position the U.S. as a global leader in emerging technologies. In addition to guiding crypto regulations, Sacks is expected to focus on developing a robust AI framework and safeguarding free speech in the tech space.

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The US Federal Reserve has announced a 25 basis point Fed rate cut, the third rate cut this year. This development has further sparked a bullish sentiment in the crypto community, considering the impact it could have on crypto prices.

Federal Reserve Announces 25 Bps Fed Rate Cut

In a press release, the Federal Reserve announced that it had decided to cut interest rates by 25 basis points following the FOMC meeting. This Fed rate cut is in line with market expectations as experts like Bank of America’s Mark Cabana had predicted that the committee would reach this decision.

This interest rate cut is the third this year, following earlier Fed rate cuts in September and November. Like the previous one, this rate cut provides a bullish outlook for the Bitcoin price and the broader crypto market.

Moreover, it comes just weeks before Donald Trump’s inauguration, another event that could spark further rallies in the crypto market, especially if the president-elect implements the Strategic Bitcoin Reserve.

However, it is worth mentioning that following this 25 bps rate, the LSEG estimates that there is a 90% chance that the Federal Reserve will hold rates at its January meeting. Regarding its next course of action, the Fed simply stated that it will monitor the implications of incoming information for the economic outlook and adjust its stance where necessary.

Altcoins To Rally Following Rate Cut?

Crypto analyst Ali Martinez raised the possibility of altcoins benefitting more from these rate cuts than the Bitcoin price. In an X post, Martinez noted that after the last three FOMC meetings, Bitcoin dominance dropped, and altcoins rebounded.

As such, there is the possibility that this could happen again. As coinpress reported, the altcoin season index has dropped, which indicates that altcoin season has passed. However, things could again flip in favor of these altcoins.

In an X post, crypto analyst Satoshi Stacker said that the Bitcoin dominance is now testing a key resistance. If the resistance holds, the analyst predicts that altcoins should continue to perform but if the BTC dominance breaks above this resistance, then Bitcoin’s outperformance will return for a while.

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Elon Musk has reignited a political feud with Senator Elizabeth Warren after accusing her of acting on behalf of Sam Bankman-Fried’s parents. Musk’s comments came amid Warren’s criticism of his role in President-elect Donald Trump’s transition team. Musk stated that the letter Warren wrote questioning his involvement in the Department of Government Efficiency (DOGE) was influenced by SBF’s parents, further escalating tensions.

Senator Warren Criticizes Elon Musk Influence on Donald Trump’s Government

Senator Elizabeth Warren penned a letter urging Donald Trump to establish ethical guidelines around Elon Musk’s appointment to Trump’s transition team. Warren expressed concerns about Musk’s growing influence and his leadership role in DOGE. She emphasized that Musk’s vast business interests, including Tesla and SpaceX, could create potential conflicts of interest.

Warren noted that Musk’s companies have received billions in government contracts and are often at odds with federal agencies. She called on Trump’s team to clarify whether Musk would recuse himself from matters involving his businesses and what safeguards are in place to prevent ethical violations.

Senator Warren added, 

“Mr. Musk is no ordinary citizen, Musk’s substantial private interests present a massive conflict of interest with the role he has taken on as your ‘unofficial co-president. Currently, the American public has no way of knowing whether the advice that he is whispering to you in secret is good for the country, or merely good for his own bottom line.” 

These developments come as the US SEC continues its scrutiny of Elon Musk’s $44 billion acquisition of Twitter. SEC’s extended deadline provides Musk additional time to respond, while the possibility of a Wells Submission looms if compliance is not met.

Tesla CEO Claims Warren’s Criticism Stems From SBF’s Parents

In response to Elizabeth Warren’s accusations, Elon Musk alleged that Sam Bankman-Fried’s parents influenced her letter. He claimed the criticisms against him are politically motivated and part of a broader agenda. Musk’s statements sparked fresh controversy as Bankman-Fried’s legal troubles and political ties remain a focal point in public discourse.

Musk’s accusations add a layer of complexity to the ongoing feud. The Tesla CEO has previously clashed with Warren over various regulatory issues, including Tesla’s labor practices and investigations into Neuralink. 

Musk commented, 

“The person actually writing these things from Pocahontas are SBF’s parents btw.”

Senator Elizabeth Warren urged Trump to ensure Elon Musk adheres to strict ethics agreements as part of the DOGE initiative.

DOGE Role in the Trump Administration

Elon Musk dismissed the accusations of ethical misconduct, defending his role in Trump’s transition team. Musk asserted that national interests rather than personal gain drive his leadership.

Most recently, the Tesla CEO said that D.O.G.E. would play a crucial role in ending US inflation by eliminating government overspending. Musk emphasized that controlling unnecessary federal expenditures could stabilize prices and reduce inflationary pressures.

Trump also backed Elon Musk, denying any conflict of interest. The President-elect reiterated that Musk’s involvement in DOGE aligns with broader efforts to eliminate government waste. 

Despite Warren’s concerns, Trump expressed confidence when asked about the Tesla CEO conflict of interests. Speaking to Time magazine he said,

“I don’t think so, I mean, he’s in a lot of companies, but he really is, and I’ve seen it. He considers this to be his most important project, and he wants to do it.” 

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