States Push for Bitcoin Reserves as National Digital Asset Stockpile Gains Traction

Several U.S. states, including Texas, Pennsylvania, and Ohio, are exploring the creation of state-level Bitcoin reserves using public funds. Asset manager VanEck analyzed 20 such proposals and estimates they could drive $23 billion in Bitcoin purchases if enacted. While no legislation is official yet, states like Florida, North Carolina, and Arizona have introduced bills to allow public investment in crypto.

On the federal level, the Biden administration is evaluating a national digital asset stockpile, with the BITCOIN Act of 2024 proposing that the U.S. Treasury acquire 1 million BTC over five years. VanEck suggests that if Bitcoin appreciates 25% annually, it could offset $42 trillion in national debt by 2049.

Trump’s Plan to Cut Borrowing Costs Faces Inflation Headwinds as 10-Year Yield Surges

President Donald Trump’s push to lower interest rates is facing strong resistance as hotter-than-expected inflation data dampens hopes for Federal Reserve rate cuts. Markets are now bracing for the possibility that the Fed may not cut rates at all in 2024, with bond yields spiking in response.

The 10-year Treasury yield climbed past 4.6%, making borrowing more expensive for consumers and businesses. Trump has argued that lower rates would offset rising costs from his tariffs, but inflation remains above the Fed’s 2% target. Fed Chair Jerome Powell signaled no urgency to cut rates, reinforcing concerns that borrowing costs will stay elevated.

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SEC’s Hester Peirce Says Most Memecoins Likely Fall Outside Agency’s Jurisdiction

SEC Commissioner Hester Peirce suggested that many memecoins may not be regulated under current SEC rules, contradicting the stance of former Chair Gary Gensler, who labeled most cryptocurrencies as securities. Peirce, now leading the SEC’s crypto task force, emphasized the need for clearer innovation policies and hinted that Congress or the CFTC might take up the issue.

Memecoins have surged in popularity, with the market reaching $120 billion in 2024. Despite this growth, critics warn of rampant fraud and volatility, with legal challenges emerging, including a class action lawsuit against Solana-based launchpad pump.fun.

Cboe BZX Exchange Files Proposal to Allow Staking for 21Shares Core Ethereum ETF, Awaiting SEC Approval

The Cboe BZX Exchange has filed a proposal to amend the 21Shares Core Ethereum ETF, allowing the staking of ether. This change, outlined in a Form 19b-4, seeks SEC approval and could mark the first ETF to include staking. While the SEC approved the ETF last year, the inclusion of staking had been excluded due to regulatory concerns. Analysts, including James Seyffart of Bloomberg Intelligence, anticipate that the SEC may approve the change, especially given the agency’s evolving stance on cryptocurrency under the new administration.