💰Crypto Goes to the States! Feds Take a Nap?😴

by

Hark! Attend, gentle readers, for a tale unfolds of two fair states, New Hampshire and Florida, making such bold pronouncements that even Molière himself might raise a quizzical eyebrow 🤔.

  • New Hampshire and Florida, in their infinite wisdom, doth formalize Bitcoin reserve frameworks for public funds and treasury reserves! A sight to behold!
  • The DOJ, no longer wishing to play the crypto-regulation game by way of prosecution, doth shift its gaze solely to the criminal misuse of these digital trinkets. Quelle surprise!

Two grand states of the U.S.A. are engaged in financial machinations, the likes of which we’ve rarely witnessed. Prepare yourselves! 🎭

New Hampshire and Florida, in a display of audaciousness, have advanced bills that permit their state treasuries to invest public funds in Bitcoin [BTC] and other digital assets of high market cap. One might even call it… daring! 😈

These decisions, mark you, arrive mere days after the U.S. Department of Justice (DOJ) announced its intention to cease prosecuting crypto exchanges and related services for regulatory peccadilloes. Coincidence? I think not! 🤫

Timing, or a Comedy of Errors?

This alignment suggests a synchronized dance between state and federal bodies, all in the name of normalizing digital assets in government finance. One can only imagine the backstage drama! 🎬

On the tenth of April, New Hampshire’s House of Representatives passed HB302 by the skin of its teeth (a mere 192–179). This bill, in its magnanimity, empowers the state treasurer to allocate up to 10% of public funds to digital assets, stablecoins, and precious metals. A veritable treasure hunt! 🪙

However, there’s a catch! The assets must meet strict eligibility criteria, such as a market cap exceeding $500 billion, averaged over the past year. Because prudence, as we know, is the soul of wit… and finance. 🧐

The legislation decrees that assets must be held directly by the treasurer, safeguarded by a regulated institution, or purchased through exchange-traded products. Safety first, mes amis! ☝️

Florida, or the School for Wives… of Bitcoin?

Meanwhile, Florida’s House Insurance and Banking Committee, in a display of unanimous accord, advanced its own digital reserves bill. The state, not to be outdone, takes a step in the same direction, albeit with a bold operational twist. Magnifique! ✨

The bill not only approves Bitcoin and other high-cap digital assets for treasury investment but also codifies Bitcoin custody and loaning directly into state statute. One can only imagine the paperwork! 📝

States Step In, Feds Step Back: A Farce?

The synchronization of these policies across state lines suggests a broader political trend. U.S. states are looking to assert digital asset autonomy while the federal government recalibrates its crypto enforcement priorities. It’s like watching a play unfold, with each act more absurd than the last! 🤡

Earlier this week, Deputy Attorney General Todd Blanche issued a four-page memo confirming that the DOJ would disband its National Cryptocurrency Enforcement Team (NCET). One less team to worry about! 😉

The Department will no longer target exchanges, mixers, or wallets for unintentional regulatory violations. Quelle liberté! 🕊️

“The Department of Justice is not a digital assets regulator.”

This shift was reinforced by the removal of criminal liability tied to registration breaches and unlicensed money transmitting – a legal basis previously used against many platforms. It’s like watching the legal tightrope walker finally take off his shoes! 🤹

Prosecutors are now instructed to pursue cases only where individuals use crypto for crimes like terrorism, narcotics trade, or financial fraud. Because, after all, some things are still frowned upon. 😠

The DOJ’s move follows President Trump’s Executive Order 14178, which explicitly rejects “regulation by prosecution” in the digital asset space. Bravo, Mr. President! 👏

From Policy to Bitcoin Reserve Strategy: A Grand Finale?

The DOJ’s pullback shifts liability from platforms to individuals. Its disbanding of NCET and Trump’s pardon of BitMEX executives has been illustrative of a softer federal stance. The plot thickens! 🍲

With enforcement bodies scaled back, states like Florida and New Hampshire are seizing the moment. Indeed, the convergence of these legislative actions with federal de-escalation marks a turning point. A new act begins! 🎊

The line between crypto and statecraft is vanishing faster than a magician’s rabbit. And it’s the states leading the charge. En avant! 🚀

Read More

2025-04-11 19:09