USDCrypto Regulations in Focus: U.S. States and FDIC Take Action
Trump to Prioritize Crypto Policies on Inauguration Day
On January 20, 2025, President-elect Donald Trump is expected to prioritize crypto policies via executive orders, repealing rules like accounting standards treating digital assets as liabilities and considering Bitcoin a strategic reserve asset with a $21 billion allocation. Supported by pro-crypto appointees like SEC Chair Paul Atkins, Trump’s administration aims to foster growth and shield investors from bureaucratic hurdles.
Preceding this, a January 17 VIP Crypto Ball offers $100,000 tickets or $1 million packages, including private dinners, to bolster industry connections. Circle contributed $1 million in USDC to Trump’s inaugural committee, as crypto executives lobby for advisory roles. David Sacks, an early Bitcoin backer, is set to become Chief Technology Officer.
New Hampshire and North Dakota Propose Bills for Strategic Bitcoin Reserves
New Hampshire and North Dakota have recently introduced legislation aimed at creating a strategic Bitcoin reserve, as part of a broader initiative to integrate cryptocurrency into state financial strategies. In New Hampshire, the bill was introduced by Republican Representative Keith Ammon and refers to “digital assets” rather than explicitly mentioning Bitcoin. This approach aims to ease political tensions. Meanwhile, North Dakota's legislation is supported by Representatives Nathan Toman and Josh Christy, alongside Senator Jeff Barta, and boasts 11 sponsors. Additionally, Pennsylvania introduced a similar proposal in November, with Representative Mike Cabell highlighting Bitcoin’s potential as a hedge against inflation. Interest in Bitcoin reserves has surged following Donald Trump's promise to make the U.S. a cryptocurrency leader if elected. Current market sentiment suggests only a 27% chance that Trump will establish a Bitcoin reserve within his first 100 days, which reflects a decrease from 45% in November.
FDIC's Travis Hill Calls for Policy Shift on Crypto Banking Restrictions
FDIC Vice Chair Travis Hill has criticized past federal restrictions on banks’ involvement in cryptocurrency, including the controversial use of “pause letters” that hindered innovation and perception of regulatory obstruction. He called for an end to tactics reminiscent of “Operation Choke Point,” which pressured banks to limit services to certain industries, urging clearer guidelines for safe engagement with digital assets. Hill emphasized the need for balanced regulations that enable banks to evolve while managing risks effectively. He highlighted a lack of transparent standards for handling cryptocurrencies, referring to a 2023 FDIC report that disclosed multiple “pause letters” sent to banks. Furthermore, Hill indicated that existing Bank Secrecy Act policies incentivize banks to shut accounts over compliance fears, underlining the need for a reevaluation of these approaches. The ongoing push for fair treatment of the crypto sector is reinforced by legal actions from industry leaders demanding better regulatory practices.
Trump Establishes Crypto Advisory Council to Shape New U.S. Digital Asset Policies
President-elect Donald Trump is establishing a new crypto advisory council, comprising approximately 24 CEOs and founders, to shape U.S. digital asset policies and draft pro-crypto legislation. This initiative aims to create a strategic Bitcoin reserve and collaborate with major agencies like the SEC, CFTC, and Treasury to develop a clear regulatory framework, addressing the ongoing regulatory uncertainties in the crypto sector.
Key figures, such as Crypto.com CEO Kris Marszalek and Circle CEO Jeremy Allaire, have actively engaged with Trump, with Allaire contributing $1 million in USDC to support crypto initiatives. Bo Hines, a former congressional candidate, has been appointed to lead the council alongside David Sacks, Trump’s AI and crypto czar, focusing on fostering innovation in the digital asset realm. To rally industry support, a black-tie event named the “Inaugural Crypto Ball” is scheduled for January 17th in Washington, D.C. This signals a proactive approach to U.S. crypto policy under Trump's leadership.
Singapore Bans Polymarket Amid Crackdown on Unlicensed Online Gambling
Singapore has officially restricted access to the prediction marketplace Polymarket as part of a national crackdown on unlicensed online gambling. This initiative has already led to the shutdown of over 3,800 gambling websites since the start of 2025, with more than $37 million worth of transactions blocked. On January 12, Singapore's Gaming Regulatory Authority (GRA) warned users that Polymarket is illegal, imposing penalties that could include fines of up to SGD 10,000 (approximately $7,200) and six months in prison.
Residents wishing to engage in online betting must use Singapore Pools, the only licensed online gambling provider in the country. The restriction aligns Singapore with jurisdictions such as Taiwan, France, and the U.S., which have also taken measures against Polymarket following its rising popularity during the 2024 presidential election. Notably, Taiwan prosecuted an individual for political betting on the platform, showcasing the stringent regulatory environment surrounding online gambling.
This article has been refined and enhanced by ChatGPT.
