This Week in Crypto: Gary Gensler SEC Finish Line, US Crypto-Czar, Russia Tax Bill, and More

As a seasoned observer of the ever-evolving digital landscape, I find myself captivated by this week’s crypto news. The sheer diversity and pace at which these developments are unfolding are nothing short of breathtaking.

This week, the crypto market witnessed a series of crucial events, ranging from regulatory progressions to court decisions. Collectively, these key points illustrate the ongoing growth and evolution of the worldwide cryptocurrency infrastructure.

“In this article, we highlight significant events that took place this week and are expected to influence the industry moving forward.

Gary Gensler’s to Resign as SEC Chair

In simpler terms, Gary Gensler, head of the U.S. Securities and Exchange Commission (SEC), has announced he will step down in January 2025. The crypto community had been expecting this move for some time, signaling the end of a tenure marked by a tough stance on digital asset regulations.

“On January 20, 2025, I will be stepping down as SEC Chair,” he shared.

During Gensler’s time in office, there were numerous enforcement actions taken against crypto companies, which increased the level of examination for projects such as XRP, Solana, Cardano, and others. When it was announced that he would be stepping down, this had a substantial effect on the cryptocurrency market. For instance, XRP, a token in the center of a lawsuit with the SEC against Ripple, and Solana (SOL) saw significant price increases.

The rallies came as the crypto industry now anticipates a leadership change that could introduce clearer frameworks for digital assets. Gensler’s departure coincides with ongoing calls for balanced regulation, offering hope for less adversarial interactions between regulators and the crypto community.

US Eyes Crypto-Czar Role

Reports indicate that the current U.S. government might be planning to assign a top official, often referred to as a “crypto-leader,” to formulate and oversee the country’s strategy regarding digital currencies. Chris Giancarlo, a previous head of the Commodity Futures Trading Commission (CFTC), is one of the individuals being considered for this position.

Among other factors being taken into account are Brian Armstrong, the CEO of Coinbase, who garnered considerable backing from Charles Hoskinson of Cardano. Likewise, Brian Brooks, a previous executive at BinanceUS and Coinbase, is also under consideration.

Besides his position as a crypto leader, discussions are ongoing for Trump’s social media and tech firm to acquire the cryptocurrency exchange, Bakkt. Many believe that this potential acquisition would provide Trump with new opportunities in the digital currency market.

Russia’s Crypto Policy Shake-Up

From my perspective as a crypto investor, it’s been noted that Russia has made adjustments to its cryptocurrency taxation legislation, aiming to streamline the regulation and taxation of crypto transactions more efficiently. Additionally, Russia has prohibited cryptocurrency mining in territories they occupy in Ukraine, due to security-related reasons.

From December 2024 onwards, Russia’s Energy Ministry is tightening regulations on mining equipment in regions with energy shortages such as Irkutsk, Chechnya, and DPR. In essence, this means that energy is not limitless, so miners may have to operate covertly or consider alternative strategies. [Mario Nawfal made this observation on X (previously known as Twitter).]

The advancements demonstrate Russia’s strategy of leveraging cryptocurrency’s economic benefits, all the while keeping a tight rein on its application. Cautions have been voiced by experts, expressing concerns that such regulations might suppress creativity and foster conformity to governmental objectives.

Bitfinex Hack Case: Couple Sentenced

In addition, BeInCrypto reported that Heather Morgan, wife of Ilya Lichtenstein, was recently sentenced to jail by the U.S. legal system due to her involvement in the high-profile 2016 Bitfinex hack. This verdict followed closely on the heels of Lichtenstein’s own sentence of five years in prison.

Morgan and her spouse made efforts to disguise their illicit gains by purchasing gold, digital art (NFTs), among other methods. It’s worth mentioning that Lichtenstein’s sentence fell far short of his potential 20-year maximum, as he also provided substantial assistance to the investigating authorities.

The given sentences emphasize continuous efforts towards prosecuting crypto-related crimes and underscore the need for robust security and governance within the sector. However, it’s important to note that the 2016 Bitfinex hack still stands as one of the most significant cryptocurrency heists ever recorded.

OCC Approves Bitcoin ETF Options Trading

In simple terms, this week, it was decided by the Options Clearing Corporation (OCC) that exchange-traded funds (ETFs) related to Bitcoin can now be traded as options. This is a significant step forward in the regulatory landscape of the US financial markets. This decision increases market liquidity, offering institutional and individual investors more flexibility when it comes to managing risks.

The move is expected to catalyze broader acceptance of Bitcoin ETFs, potentially driving increased trading volumes and market participation. Analysts believe this approval could pave the way for further advancements in Bitcoin-related financial products.

Author of “Softwar” Enters Presidential Race

Additionally this week, author Jason Lowery of Softwar is considering a role in the White House. His proposal primarily focuses on integrating Bitcoin and ensuring national security. Lowery supports Bitcoin not only for its potential use in everyday transactions, but also as a strategic resource to bolster the U.S. economy against international economic risks.

His interest reflects the growing intersection of politics and crypto as policymakers recognize Bitcoin’s strategic implications beyond its financial utility.

One user strongly endorsed Major Jason Lowery as a suitable presidential advisor on the development of Bitcoin as a significant national resource.

Grayscale’s Bitcoin Covered Call ETF

Additionally, Grayscale has made improvements to its Bitcoin Income ETF, making it more beneficial for investors looking to devise income-generating strategies. This ETF utilizes options trading techniques to generate returns, providing a distinct approach for investors to benefit from Bitcoin’s price fluctuations.

This product showcases ongoing advancements in cryptocurrency investment tools, addressing various investor preferences in a rapidly evolving market environment.

Following the approval of BTC ETF options, Grayscale has swiftly moved forward. They’ve submitted an updated prospectus for their Bitcoin Covered Call ETF (still waiting on a ticker symbol). This fund aims to provide investment exposure to GBTC and BTC, while it generates income by writing or purchasing options contracts related to Bitcoin ETPs.” – James Seyffart commented.

China Recognizes Crypto as Property

In the headlines of major crypto news this week, a significant legal judgment was made. This judgment, issued by a Chinese court, classified cryptocurrency as a legitimate form of property. This recognition extended legal protections to those who hold cryptocurrencies, as China continues to enforce strict regulations on digital currencies. The decision brings a hint of optimism for crypto supporters in the region.

This decision might shape the direction of upcoming regulations, finding a balance between state oversight and personal freedoms in the digital marketplace.

Paul Tudor Jones Doubles Down on Bitcoin

This week, Paul Tudor Jones, a well-known hedge fund manager, once again expressed his support for Bitcoin. He disclosed that he still holds Bitcoin shares, praising the asset’s durability during economic turmoil. His backing underscores Bitcoin’s ongoing allure among institutional investors, further cementing its reputation as “digital gold” in unpredictable financial environments.

According to billionaire investor Paul Tudor Jones, all financial paths point towards inflation. Jones himself is investing in gold, Bitcoin, and commodities, a statement echoed by Michael Burry.

Additionally, Tudor Investment Corporation, the company he’s associated with, also bolstered its holdings of Bitcoin. This underscores its function as a safeguard against inflationary pressures and geopolitical uncertainties.

Poland’s Bitcoin Reserve Proposal

In addition to Paul Tudor Jones, another figure who showed support for Bitcoin this week was Polish politician Sławomir Mentzen. This presidential candidate has pledged to create a Bitcoin reserve should he win the election, suggesting a possible move towards more crypto-friendly policies in Poland.

In simpler terms, Mentzen suggested that Poland might establish a Strategic Bitcoin Reserve. If he were to be elected as the President of Poland, his vision is to make Poland a welcoming hub for cryptocurrencies by implementing favorable regulations, low tax rates, and adopting a supportive stance from financial institutions and regulatory bodies.

As a forward-thinking crypto investor, I envision incorporating Bitcoin into my portfolio as a safeguard against potential economic upheavals. My belief is that by doing so, we can bolster our national economy through the fostering of blockchain innovation. This approach aligns with the increasing global trend of countries exploring Bitcoin adoption to protect their financial independence and sovereignty.

Mentzen’s pledge mirrors a growing belief in Europe that cryptocurrencies can strengthen economies. If enacted, this plan could place Poland among a select group of countries using Bitcoin in their financial plans. It would also mark a significant change in the way European crypto policies are structured.

2024-11-22 19:02