USDUS Crypto Weekly: SEC Softens, States Approve Bold Bitcoin Bills
SEC Reassesses Stricter Crypto Custody Rule Amid Industry Concerns
The SEC is reconsidering a proposed custody rule for investment advisers handling crypto assets, initially backed by former chair Gary Gensler to enhance investor protection. Acting Chair Mark Uyeda announced the reassessment during the Investment Management Conference in San Diego, responding to critiques about the rule's broad scope and potential negative impacts on crypto firms, as highlighted by former House Financial Services Committee Chair Patrick McHenry. The proposal aimed to limit qualified custodians to federally chartered entities, raising concerns about inadequate custody solutions for crypto businesses.
Uyeda emphasized the SEC's dedication to regulatory efficiency while aligning with statutory authority. Additionally, he discussed a rule change requiring mutual and ETF funds to report monthly holdings, reflecting concerns over compliance costs and risks related to AI-driven data analysis. The SEC also plans to revamp small-entity definitions to better calibrate regulatory burdens while continuing to scrutinize client asset safeguarding and fund disclosures.
SEC Reassesses Crypto Rules; Crenshaw Warns PoW Mining May Still Face Securities Scrutiny
On March 21, 2025, the SEC held its first crypto roundtable, revealing a consensus for regulatory clarity despite opposing views. Advocates emphasized decentralization to redefine securities, while skeptics defended the Howey Test and the SEC’s litigation success. Commissioner Crenshaw warned that the SEC’s March 20 statement on Proof-of-Work mining being exempt from securities rules contains loopholes requiring case-by-case Howey analyses. She criticized assumptions made about miners’ motivations and highlighted the non-binding, general nature of the statement. The SEC’s shift since Gensler’s exit includes dropping lawsuits against Coinbase and Ripple, allowing memecoins, and permitting crypto custody by banks.
Kentucky Unanimously Passes Bill to Protect Bitcoin Self-Custody and Mining Rights
Kentucky lawmakers have unanimously approved HB 701, a bill enhancing Bitcoin self-custody rights and protecting crypto mining operations, which now awaits the governor's signature. The legislation allows individuals to manage digital assets independently and safeguards miners from restrictive zoning regulations and unnecessary licensing. It clarifies that mining and staking services are not securities, offering legal certainty to industry participants. Furthermore, digital asset payments will not incur additional taxes beyond standard financial transaction fees. If enacted, HB 701 is poised to affirm Kentucky’s pro-crypto reputation, potentially attracting more businesses and fostering innovation in the digital asset sector.
Senator Miller Proposes Minnesota Bitcoin Act for State Investments, Taxes, and Retirement Plans
Minnesota Senator Jeremy Miller has introduced the Bitcoin Act, allowing state investments in Bitcoin, enabling tax payments in BTC, and offering it in retirement plans. This shift reflects Miller's newfound support for digital currencies, recognizing Bitcoin’s potential for economic growth. Minnesota joins a national trend with 33 states proposing Bitcoin-related legislation, as 23 states seek to establish Bitcoin reserves. Bitcoin's impressive compound annual growth rate of 102.36% since August 2011 highlights its allure. If passed, the Bitcoin Act could position Minnesota as a leader in crypto-friendly policies and contribute to Bitcoin's increasing influence on government finance.
North Carolina Proposes $950 Million Bitcoin Investment Bill to Boost Cryptocurrency Adoption
North Carolina lawmakers have introduced the “NC Bitcoin Reserve and Investment Act” (SB327), proposing to allocate up to $950 million from the state’s estimated $9.5 billion general fund for Bitcoin investments. The bill allows the State Treasurer to invest up to 10% of public funds in Bitcoin, creating a dedicated reserve managed with strict security measures, including multi-signature cold storage and monthly audits. Bitcoin holdings can only be liquidated with two-thirds approval from the General Assembly. Additionally, a Bitcoin Economic Advisory Board will guide investment strategies, aiming to establish North Carolina as a leader in cryptocurrency adoption.
Arizona Bitcoin Reserve Bill Advances in House Commerce Committee with 6-4 Vote
Arizona's Bitcoin Reserve Bill, SB 1373, has progressed through the House Commerce Committee with a narrow 6-4 vote, showcasing bipartisan efforts to establish a Digital Assets Strategic Reserve Fund. The fund would be managed by the state treasurer, allowing up to 10% annual deposits and lending of digital assets for returns. Amid national momentum, Arizona and Utah are leading in crypto investment laws, with 18 states considering similar proposals. Despite recent 17% price volatility in Bitcoin, its value has surged from $5.34 in 2012 to $83,223 in 2025, reflecting a remarkable 1,558,000% increase over 13 years.
This article has been refined and enhanced by ChatGPT.
![Robot chases token on pixelated [Binance] platforms](/_next/image?url=https%3A%2F%2Fprod-coin360-cms.s3.eu-central-1.amazonaws.com%2FRobot_chases_token_on_pixelated_Binance_platforms_11zon_ad500315e8.webp&w=256&q=75)
