Hey there, PoI readers! 🌟

It's your favorite crypto connoisseur, Mochi, back with another serving of deliciously fresh web3 intel! Today's menu features a fascinating mix of Circle's bold political move, UK's regulatory clarity, Bybit's Indian timeout, and the Fed's economic tango. We've got everything from million-dollar donations to regulatory revelations, served with a side of witty commentary. So, grab your favorite beverage, settle in, and let's dive into this feast of crypto news!

Checkout The Rundown AI (Our sponser for today) ⬇️

Start learning AI in 2025

Everyone talks about AI, but no one has the time to learn it. So, we found the easiest way to learn AI in as little time as possible: The Rundown AI.

It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses – tailored to your needs.

Sign up to start learning.

INTEL BRIEF

🟧 Circle makes a historic 1M USDC donation to Trump's Inauguration Committee, marking a significant moment for stablecoin adoption in mainstream politics.

🟧 UK Treasury makes landmark decision declaring crypto staking isn't a collective investment scheme, paving the way for clearer regulatory framework.

🟧 Bybit exchange announces temporary suspension of services in India amid regulatory pressure, while maintaining withdrawal access for users.

🟧 Federal Reserve officials signal neutral policy stance as they await Trump administration's economic policies and monitor inflation trends.

Trump Campaign Scores Massive $1M Circle’s USDC Political Move

Circle has dropped a cool million USDC into Trump's Inauguration Committee piggy bank. Circle's CEO Jeremy Allaire announced this power move on January 9th, and folks, this isn't just about the money – it's about sending a message that crypto is ready for the political main stage.

Speaking of main stages, let's talk numbers that'll make your head spin: stablecoins are currently flexing a massive $203 billion market cap, with USDC claiming a chunky $44 billion slice of that pie. But wait, there's more! Our favorite stablecoin issuers have somehow become the world's 18th-largest buyers of US government debt.

The timing couldn't be more perfect, as stablecoins are becoming the hot topic in Washington's corridors. Senators Gillibrand and Lummis have been busy cooking up the Payment Stablecoin Act, while former House Speaker Paul Ryan is out here suggesting stablecoins might be the unexpected hero in America's debt crisis saga.

Looking ahead to 2025, the crystal ball gazers are getting excited. Ethena's founder Guy Young is betting big, predicting stablecoins will balloon to a whopping $300 billion market cap. Meanwhile, HashKey Capital's CEO Deng Chao is particularly jazzed about stablecoins' potential in emerging markets – because who doesn't love the idea of bringing banking to the unbanked with some blockchain magic?

Circle makes history with 1M USDC donation to Trump's Inauguration Committee

Stablecoins currently command a $203B market cap, with USDC holding $44B

VCs are bullish on stablecoins for 2025, especially in emerging markets, with predictions of $300B total market cap

UK Government Hands Crypto Stakers a Landmark Victory

The UK Treasury has just dropped a regulatory bombshell that's making waves in the crypto community, and for once, it's the good kind of bombshell! They've officially declared that crypto staking is NOT a collective investment scheme.

The amendment, which will be rolling out on January 31st, specifically clarifies that "qualifying crypto asset staking" won't be lumped in with those heavily-regulated collective investment schemes. As Consensys' lawyer Bill Hughes put it so brilliantly, "The way a blockchain works is NOT an investment scheme. It's cybersecurity." Finally, someone speaking our language!

This isn't just some random tea leaf reading exercise – it's part of a bigger regulatory brew being stirred up by the UK Treasury. Economic Secretary Tulip Siddiq (and yes, that's her real name, 😊) has been championing this cause since November 2024, promising a full cryptocurrency regulatory framework.

The local crypto industry had been pushing for this clarification harder than a tourist trying to make the Queen's Guard laugh, and it looks like their persistence paid off! This move is particularly important for networks like Ethereum and Solana, where staking is as essential as queuing is to British culture.

UK Treasury officially declares crypto staking isn't a collective investment scheme, effective January 31st

This clarification is particularly crucial for proof-of-stake blockchains like Ethereum and Solana

The decision is part of a broader UK crypto regulatory framework expected in early 2025

Bybit Waves Goodbye To India As Regulators Tighten Their Grip

Bybit has announced it's hitting the pause button on its Indian operations starting January 12th at 8:00 am UTC. And by pause, I mean no new trades, no new accounts, and definitely no playing with their fancy exchange products.

In a move that's more reassuring than a warm hug, Bybit is keeping the withdrawal gates wide open. They're basically saying, "Your funds are SAFU", which is music to every crypto trader's ears.

Speaking of greatest hits, this isn't Bybit's first regulatory rodeo. They've been doing the compliance cha-cha across the globe, with similar situations in France and Malaysia. In fact, they just wrapped up a regulatory tango in Malaysia last December, where they actually managed to stick the landing and comply with all directives.

The silver lining? Bybit's not throwing in the towel – they're expecting to get their virtual digital asset service provider registration in India. They're calling it "coming weeks," which in crypto time could mean anything from tomorrow to when ETH 2.0 final... oh wait, that already happened!

Bybit temporarily suspends trading services in India from January 12th, but keeps withdrawals active

Exchange is working towards obtaining proper registration as a virtual digital asset service provider

This follows similar regulatory compliance moves by Bybit in France and Malaysia in 2024

FED Freezes All Moves As Trump Return Shakes Markets

Fed officials are playing it cooler than a cucumber in January, adopting what they're calling a "neutral" stance. It's like they're all standing in the middle of a seesaw, trying not to tip either way! Fed Governor Michelle W. Bowman and her crew are basically saying, "Let's see what Trump‘s got up his sleeve" before making any major moves.

The plot thickens with some pretty impressive economic stats from late 2024 that have Fed officials raising their eyebrows (in a good way!). They're seeing inflation doing the cha-cha above their 2% target, which has them thinking maybe we don't need those rate cuts everyone's been dreaming about.

While crypto folks were hoping for a rate-cut party, the Fed's only promising two more cuts in 2025. Talk about a plot twist! This news sent Bitcoin on a little rollercoaster ride down to $92,500 on January 8th – apparently, strong economic data makes crypto about as attractive as a flip phone at an iPhone launch.

The real kicker? The markets are betting their bottom dollar (with a 95.2% probability) that rates will stay as still as a statue at the next Fed meeting on January 29th. As Philadelphia Fed President Patrick Harker put it, they're taking "a bit of a pause" – which in Fed-speak means "we're as uncertain as everyone else about what's coming next!"

Fed officials adopt neutral stance while awaiting clarity on Trump administration policies

Markets predict 95.2% chance of unchanged rates at January 29th meeting

Fed projects only two rate cuts for 2025, less than what crypto markets hoped for

And that's a wrap on today's crypto cuisine, my wonderful PoI readers! 🎯 We've journeyed through stablecoin politics, danced with regulatory clarity in the UK, watched exchange drama unfold in India, and decoded the Fed's cautious stance.

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

🍨📰 Catch you in the next issue! 📰🍨