Hey there, PoI readers! 💫

It's your favorite Japanese-dessert-named crypto nerd, Mochi, bringing you the hottest scoop in the digital asset world. Today's newsletter is all about the Trump administration's groundbreaking moves in crypto! From SEC policy shifts to Bitcoin ETF developments and presidential executive orders, we've got more plot twists than a Netflix series. So grab your favorite beverage, settle in, and let's dive into how the new administration is shaking up the crypto scene!

INTEL BRIEF

🟧 SEC revokes SAB 121, a Trump-era policy shift making it easier for financial firms to handle crypto assets on their balance sheets.

🟧 Coinbase CEO reports Trump's crypto plans dominated Davos discussions, signaling major shifts in institutional crypto adoption.

🟧 Nasdaq files for BlackRock's Bitcoin ETF to allow in-kind redemptions, potentially improving ETF efficiency and transparency.

🟧 Bitcoin price dips as Trump's executive order reveals broader digital asset focus instead of Bitcoin-specific reserve.

Trump Administration Scraps Major

Crypto Banking Rule As SEC Changes Course

The Securities and Exchange Commission (SEC) has officially kicked SAB 121 to the curb. This controversial rule, which had financial firms treating crypto holdings like that one relative everyone pretends doesn't exist at family gatherings, is now officially history.

The plot twist came on January 23rd when the SEC dropped their new Staff Accounting Bulletin, essentially saying "nevermind" to their March 2022 guidance. The original rule had required financial firms to list customer crypto holdings as liabilities.

The change has received enthusiastic support from key political figures. House Financial Services Committee Chair French Hill practically did a virtual happy dance, declaring the rule's demise as a victory for common sense. He pointed out that holding reserves against custodied assets isn't exactly standard practice in financial services - it's about as logical as wearing a winter coat in the Sahara.

Representative Wiley Nickel and Senator Cynthia Lummis joined the celebration chorus, with Lummis dramatically declaring that SAB 121 was "disastrous for the banking industry." She's now "THRILLED" (yes, all caps - she's that excited) about getting the SEC back on its intended track.

This marks the first major crypto policy shift under President Trump's administration and acting SEC chair Mark Uyeda. It's worth noting that a previous attempt to repeal SAB 121 through legislation met a different fate - former President Biden wielded his veto pen last June, and the House couldn't muster enough votes for an override, falling 60 votes short of their goal.

SEC cancels SAB 121, eliminating requirement for firms to record customer crypto as liabilities

Bipartisan support celebrates the move as a win for banking innovation and crypto custodyng

Marks Trump administration's first significant crypto policy change after Biden's previous veto

Coinbase Chief Reveals How Trump Dominated Davos Crypto Conversations

Brian Armstrong spilled the tea about how traditional finance bigwigs are suddenly acting like cryptocurrency is the hottest ticket since sliced bread. Why? Because Trump's recent pledge to transform the US into the "world capital of artificial intelligence and crypto" has everyone scrambling not to miss the boat.

Speaking of boats, it seems the good ship Cryptocurrency might be getting some interesting new passengers. Armstrong's revelations suggest that banks, asset managers, and payment service firms are all quietly revving up their crypto engines.

Trump's executive order on digital asset markets has sparked more buzz than a beehive in spring. While Bitcoin enthusiasts were hoping for a Bitcoin-specific strategic reserve, the order kept things broader, mentioning a "strategic national digital assets stockpile.

Not everyone's ready to jump on the crypto bandwagon though. Goldman Sachs CEO David Solomon played it cool, calling Bitcoin an "interesting speculative asset" while noting that regulatory handcuffs still keep traditional banks from diving into the Bitcoin pool. It's like being invited to the party but told you can't dance!

Armstrong wrapped up his observations by drawing parallels between Trump, Argentina's Milei, and El Salvador's Bukele, suggesting they all "understand that free markets are catalysts for prosperity." He even threw in a cheeky "Socialism is on its way out" for good measure.

Trump's crypto agenda dominated WEF discussions, with traditional financial institutions accelerating their crypto investments

Executive order reveals plans for broader digital asset stockpile beyond just Bitcoin

Traditional banks remain interested but regulatory constraints still limit their involvement

Nasdaq Wants To Let BlackRock Bitcoin ETF Trade With Real Bitcoin

Nasdaq has filed to let BlackRock's Bitcoin ETF play with actual Bitcoin instead of just cash. This seemingly technical tweak could be a game-changer for the iShares Bitcoin Trust (IBIT), which has been crushing it since its January 2024 debut.

The filing, dropped on January 24th, comes with some interesting timing - on the same day, six new crypto ETF applications hit the SEC's desk, making it rain like crypto confetti. Talk about a busy day at the office!

But let's break down what this in-kind redemption business actually means (without the fancy finance jargon). Authorized Participants (think of them as the ETF's VIP backstage pass holders) would get to choose between using cash or actual Bitcoin when creating or redeeming shares.

Now, before retail investors get too excited and start dusting off their hardware wallets, here's the catch: this cool new feature is strictly for the institutional cool kids. As ETF analyst James Seyffart points out, regular Joe investors will still need to stick with cash transactions. But don't feel too left out - this change could actually make the ETF work better for everyone.

Speaking of working better, IBIT has been absolutely crushing it, pulling in a whopping $39.57 billion in inflows since its January launch. That's like filling an Olympic-sized pool with digital gold!

The cherry on top? Crypto analyst MartyParty suggests this move means "more transparency and onchain record of flows" - because who doesn't love a bit more clarity in the crypto world? Meanwhile, Chris J Terry from Bitseeker Consulting reminds us this could mean better tax efficiency for ETF holders. Now that's what we call a win-win!

Nasdaq files for in-kind redemptions for BlackRock's Bitcoin ETF, potentially improving efficiency

Feature limited to Authorized Participants only, not retail investors

IBIT leads US spot Bitcoin ETFs with $39.57 billion in inflows since launch

Bitcoin Market Reacts As Trump Orders National Digital Asset Reserve Study

Bitcoin took a brief nosedive to $102,220 after President Trump signed an executive order that wasn't quite what crypto enthusiasts were hoping for. The January 23rd order, while pro-crypto, had BTC maximalists feeling like kids who got socks for Christmas instead of the PlayStation they were expecting.

The day's drama kicked off when Senator Cynthia Lummis played crypto Twitter like a fiddle, posting a cryptic "big things are coming" message that sent Bitcoin soaring to $106,850. Plot twist: she was just announcing her new role as chair of the Senate Banking Subcommittee on Digital Assets.

The executive order's fine print revealed plans for a "national digital asset stockpile" rather than the Bitcoin-specific reserve many had anticipated. Even more interesting (or concerning, depending on your perspective) was the suggestion that this stockpile might be "derived from cryptocurrencies lawfully seized by the Federal Government" - because nothing says "adoption" quite like repurposed crypto from law enforcement operations!

Market analyst Will Clementee III chimed in with some sage advice, reminding everyone that this "buy the rumor, sell the news" reaction is practically a crypto market tradition at this point.

Despite the initial price wobble, crypto industry leaders are hailing this as a significant step toward mainstream adoption. After all, having the US government officially recognize digital assets is like getting a stamp of approval from your strictest teacher - it might not be exactly what you wanted, but it's still pretty important.

Trump signs executive order for digital asset markets working group, including potential national crypto stockpile

Bitcoin price dropped to $102,220 after order revealed broader focus beyond Bitcoin-only reserve

Market showed classic "buy rumor, sell news" behavior, with earlier rally to $106,850 on misinterpreted Lummis tweet

And that's the scoop for today, PoI squad! What a wild ride through the Trump administration's crypto initiatives - from policy reversals to market-moving executive orders. The crypto landscape is evolving faster than my ice cream namesake melts in summer!

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

🍨📰 Catch you in the next issue! 📰🍨