Headlines

President Trump Signs Executive Order To Ban Central Bank Digital Currencies (CBDC). President Trump signed an executive order banning the creation of central bank digital currencies (CBDCs) in the U.S. and establishing a working group to regulate digital assets and explore a national digital asset stockpile. This move aligns with his campaign promises, including creating a Strategic Bitcoin Reserve and pardoning Silk Road founder Ross Ulbricht.

Ross Ulbricht Is Free: A Victory for Bitcoin and Freedom. Ulbricht was a true innovator with Silk Road being Bitcoin’s first real use case. The sentence against Ulbricht was highly disproportionate and highlights the importance of fairness and reform in the justice system. Welcome home Ross!

US court overturns Treasury sanctions on Tornado Cash. The U.S. District Court for the Western District of Texas overturned OFAC’s sanctions on the crypto-mixing protocol Tornado Cash. Following this, the Fifth Circuit Court of Appeals ordered OFAC on January 21 to remove Tornado Cash-linked addresses from its Specially Designated Nationals and Blocked Persons list. Tornado Cash developer calls his lawsuit a 'terrifying criminalization of privacy'.

Coinbase's Bitcoin Loans Are Not What They Seem. Coinbase's “Bitcoin-Backed Loans” are misleading, as they use Coinbase’s wrapped Bitcoin (cbBTC) and a DeFi platform, not the Bitcoin blockchain. True Bitcoin-native lending solutions are still needed to let holders access liquidity without losing custody or triggering a taxable event.

US Government To Release Half Its Bitcoin Intended for Trump’s Strategic Reserve. Arkham Intelligence data shows the U.S. holds 198,109 Bitcoin, including 94,643 recovered in 2022 from the 2016 Bitfinex hack, which are likely to be returned to the exchange. If the U.S. government pursues a strategic Bitcoin reserve, the price is likely to rise significantly with only 450 new Bitcoin mined daily and banks now permitted by the SEC to custody Bitcoin.

U.S. CFTC Commissioner Caroline Pham Gets Trump Nod as Acting Chair. The former Citibank executive worked on the Wall Street firm’s digital asset strategy in the early days of the industry. It’s unclear whether she will get the nod as the ongoing chair of the CFTC, however her name is routinely mentioned in that role.

Pro-Crypto Mark Uyeda Named Acting SEC Chair With Gensler Gone. Uyeda has been a commissioner with the SEC since June 2022, and has called the SEC’s treatment of the digital asset industry a disaster. Former SEC commissioner Paul Atkins has been nominated by Trump to Chair the SEC long-term, however this appointment has not yet been approved by the Senate.

Gensler's Last Act: SEC Files Lawsuit Against Helium Network Creator Nova Labs. Helium is a decentralized network for sharing internet connectivity which incentivises users with crypto. After multiple SEC allegations against Helium failed to gain traction, the agency determined that wireless access points could be classified as unregistered securities due to their role in sharing location data in exchange for payment.

Wyoming Introduces Bitcoin Strategic Reserve Bill. The “State Funds-Investment in Bitcoin Act” is being introduced by first term representative Jacob Wasserburger. The impact of a bill like this on its citizens could be compounded exponentially since Wyoming is such a sparsely populated state.

A Hidden Barrier to Smart Crypto Policy: The Ethics Rule Blocking Tech Talent. In 2022 the Office of Government Ethics barred anyone holding crypto, digital tokens, or stablecoins from Federal service. The incoming administration will have to change this in order to attract knowledgeable talent into key Federal agencies with the goal of developing sound crypto policies.

Publicly Traded U.S. Crypto Miners Double Bitcoin Holdings to Almost 100K in a Year. While crypto miners are among the first companies to hold Bitcoin it's likely that many types of businesses will adopt a HODL strategy. Marathon Digital holds nearly half of all Bitcoin owned by miners.

Hodder Law Blog

The Coinbase v. SEC Ruling: A Step Toward Regulatory Clarity for Crypto? On a pivotal day for the cryptocurrency industry, the U.S. Court of Appeals for the Third Circuit issued a ruling on Coinbase’s challenge to the Securities and Exchange Commission (SEC).

The case centers on a fundamental question: how should federal securities laws apply to digital assets? The decision highlights both the limitations and opportunities in the current regulatory landscape for crypto.

Hodder Law’s Guide to Money Transmitter Licenses in the U.S. This guide provides a comprehensive look at the licensing process, requirements, and key considerations for those wanting to secure a money transmitter license in the U.S. Operating a money services business in the U.S. can be complex and time-consuming without expert legal guidance.

Check out the Crypto Law Weekly on my YouTube channel @SashaHodder or Instagram @sashahodler

February 1 - RFK Jr hearing for Secretary of Health, Ledger CEO kidnapped, In-kind redemptions for BlackRock's Bitcoin ETFs,

January 27 - Ross Ulbricht is free! SEC rescinds SAB 121. Senator Cynthia Lummis was named chair of the Senate Banking Subcommittee on Digital Assets. Larry Fink predicts Bitcoin to hit $700K.

January 18 - Trump cleaning up Gensler's mess. DOJ will return hacked Bitcoin from 2016 to Bitfinex. Cynthia Lummis puts a litigation hold on FDIC to stop them from destroying evidence.

January 12 - DOJ to sell $6.5 billion Bitcoin, China's going to get it. Coinbase granted a request for interlocutory appeal. Court documents show Operation Chokepoint 2.0 was as real as suspected.

January 3 - IRS stayed its Universal Wallet rule until 2026. The Corporate Transparency Act was stayed again. Richard Hart added to the Interpol most wanted list.

"If Bitcoin breaks $100K, you can bet it'll hit $1 million."



- John McAffee

This email's content is not investment, legal, or tax advice, nor does it offer or solicit securities transactions. It should not be viewed as an endorsement of any entity or security by our firm or staff.

Make it a great February!

Sincerely,

Sasha Hodder

Hodder Law

sasha@hodder.law

www.hodder.law