ROLLUP: Bitcoin on the US Balance Sheet? | Trump's US Crypto Stockpile | Banks Can Now Custody Crypto | Venice AI's Massive Airdrop
Jan 31, 2025
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Haseeb Qureshi, a co-host and crypto analyst, dives into transformative shifts in U.S. crypto policy, including Trump's executive order establishing a digital asset working group. They discuss the SEC's revocation of SAB121, enabling banks to custody crypto. The conversation also highlights Venice AI's token launch amid skepticism about its decentralization claims. Plus, they explore NVIDIA's market plunge and its ramifications for AI development, examining how these trends intertwine with the evolving landscape of cryptocurrency regulations.
Trump's executive order promotes a pro-crypto agenda while establishing a framework for a national digital asset stockpile.
The SEC's revocation of SAB-121 enables banks to custody cryptocurrencies more efficiently, potentially fostering institutional adoption in the crypto market.
NVIDIA's historic market cap drop signals investor anxiety about AI competition, illustrating the rapid shifts in market sentiment affecting tech stocks.
Deep dives
Trump's Crypto Executive Order
Trump signed an executive order titled 'Strengthening American Leadership in Digital Financial Technology,' which establishes a working group tasked with creating a federal regulatory framework for digital assets. This order aims to provide clarity and support for innovation in the cryptocurrency space while examining the feasibility of a national digital asset stockpile. Additionally, the order emphasizes the protection of individual citizens' rights to access and use public blockchains without unnecessary interference. Overall, the order reflects a pro-crypto stance that seeks to promote the use of cryptocurrency and protect the U.S. dollar amidst the ongoing global competition.
NVIDIA's Market Shake-up
NVIDIA faced a historic market cap drop of nearly $600 billion due to investor concerns surrounding the AI sector, catalyzed by the rise of a new competitor, DeepSeek. The sudden decline highlighted the market's inefficiencies, as the tech world's delayed understanding of the developments surrounding DeepSeek caused a major reaction in stock prices. Despite this chaos, the overarching sentiment indicates that the advancements in AI technology could benefit consumers by driving prices down while posing challenges for producers like NVIDIA. Investors were reminded that market perceptions can shift rapidly and be influenced by external factors beyond the core product performance.
Bitcoin and Ether Market Updates
Bitcoin had a slight increase this week, starting at $101,000 and reaching $105,000, while Ether showed modest gains going from $3,200 to $3,250. However, concerns linger regarding altcoins and the advanced decline index of the top cryptocurrencies, which continues to trend downward, raising doubts about the overall market health. Market sentiment remains mixed, with Bitcoin and some other major assets maintaining strong positions while many altcoins grapple with consistent declines. The crypto market is currently characterized by a lack of enthusiasm, possibly indicating a need for renewed energy and innovative developments to re-engage investors.
SEC Repeals SAB-121
The SEC's decision to revoke SAB-121 marks a significant change for banks that wish to custody cryptocurrencies, removing the prior requirement that banks maintain offsetting liabilities corresponding to crypto assets. This paves the way for banks to offer custody services for cryptocurrencies more efficiently, potentially increasing institutional adoption. The revocation is viewed as a positive step for the crypto industry, alleviating burdens on financial institutions wishing to engage in custody services. However, analysts note that it remains to be seen how quickly banks will implement these changes and begin officially offering crypto custody products.
Market Reactions to the Trump Meme Coin
The launch of the Trump meme coin has been met with mixed reactions, suggesting it primarily attracted non-crypto users with short-term interests rather than fostering lasting engagement. Data indicates that less than 1% of users who acquired the Trump tokens are actively participating in the broader crypto ecosystem, pointing to a weak retention rate. This phenomenon raises concerns about the potential negative impacts of such celebrity-driven coins on the public perception of cryptocurrency and the risks they pose to inexperienced investors. The conversation emphasizes the need for a more responsible approach to onboarding new users in the blockchain space, particularly those motivated by speculative transactions.
Joining us this week is Haseeb Qureshi who is here to help walk us through this week’s Weekly Rollup. We cover the major shift in the U.S. government’s stance on crypto, as Trump signs an executive order that establishes a national digital asset stockpile working group and bans CBDCs. The SEC also revokes SAB121, clearing the way for banks to custody crypto. Meanwhile, Venice AI’s token launch made waves, and Abstract Chain went live with a focus on creators and streamers. In markets, Nvidia’s $600B plunge rattled investors, and the Czech National Bank considers adding Bitcoin to its reserves. Plus, Gary Gensler lands a new job—back at MIT.
01:03:45 Haseeb’s Podcast And Parting Advice ------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures
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