A Big Week for Crypto!📰🚀
From BlackRock to Texas to Trump to the new chairman of the U.S. House Financial Services Committee.
Hey Thinkers 💡
This week was monumental for the crypto industry, with game-changing developments in regulation, institutional adoption, and stablecoin expansion. Here’s a complete breakdown of the top stories you need to know.
🔥 1️⃣ BlackRock Recommends Bitcoin Allocation
The world’s largest asset manager, BlackRock ($11.5 trillion AUM), issued a landmark report on Bitcoin. For the first time, BlackRock provided a specific allocation recommendation for Bitcoin.
Recommendation: Investors should allocate 1-2% of their portfolios to Bitcoin.
Why it Matters: BlackRock equates Bitcoin's risk exposure to that of “The Magnificent 7” (Amazon, Microsoft, Nvidia, etc.) for 60/40 portfolios.
ETF Push: With BlackRock leading the charge for a Bitcoin Spot ETF, this recommendation could drive significant inflows into Bitcoin from wealth managers, financial advisors, and large pension funds.
BlackRock's recognition of Bitcoin as a viable portfolio asset reinforces its legitimacy in traditional finance and sets the stage for more institutional participation.
🏛️ 2️⃣ Strategic Bitcoin Reserve Movement Heats Up
The race for a Strategic Bitcoin Reserve is gaining steam at both the state and federal levels.
Texas Takes the Lead:
Texas State Rep. Giovanni Capriglione filed a bill to establish a Texas Strategic Bitcoin Reserve.
This historic moment was celebrated live on X Spaces, with Dennis Porter (Satoshi Action Fund) calling it a “historic first.”
Giovanni stated, “I want Texas to have a Strategic Bitcoin Reserve first.”
Other States Join the Race:
Alabama State Auditor Andrew Sorrell publicly supported Alabama’s plan for a Strategic Bitcoin Reserve.
Federal Momentum: On the federal level, there is already a proposal for a U.S. Bitcoin Strategic Reserve, endorsed by Donald Trump.
As states compete to establish reserves, Bitcoin’s role as a strategic national asset akin to gold is solidifying.
💬 3️⃣ Trump Confirms Crypto Plans at NYSE
President-elect Donald Trump made waves during a live interview with Jim Cramer at the NYSE yesterday, saying:
“We will be doing something great with crypto.”
What Does it Mean? Trump has already appointed David Sacks as White House AI & Crypto Czar and Paul Atkins as SEC Chair, both pro-crypto voices.
Bitcoin Strategic Reserve: Trump has already endorsed the idea of a U.S. Bitcoin Strategic Reserve, signaling major crypto-related federal initiatives under his administration.
Market Reaction: Speculation is swirling on social media as to what Trump’s crypto plans may entail, with many expecting significant policy announcements after his inauguration.
🏛️ 4️⃣ New Pro-Crypto Chairman of the House Financial Services Committee
Big news on Capitol Hill: Arkansas Congressman French Hill will be the next Chairman of the House Financial Services Committee, succeeding Patrick McHenry.
Pro-Crypto Stance: Congressman Hill is well-known for being pro-crypto and will likely prioritize hearings on the following:
Debanking of crypto firms (Operation Chokepoint 2.0)
Stablecoin regulations
Comprehensive crypto framework legislation
With Hill at the helm, the industry can expect greater oversight of regulatory actions like SEC enforcement and more room for fair regulatory discussions. Here is my interview with Congress Hill from October.
💱 5️⃣ Major Stablecoin Expansion
It was a landmark week for stablecoins, with major moves by Circle (USDC) and Ripple.
Circle x Binance Partnership
What Happened?
Circle (USDC issuer) entered into a strategic partnership with Binance (world’s largest exchange).
Circle CEO Jeremy Allaire announced that the partnership would accelerate global adoption of USDC and crypto.
What it Means:
With Binance’s vast user base and Circle’s compliant stablecoin infrastructure, this partnership aims to drive mass adoption of stablecoin payments globally.
Ripple RLUSD Stablecoin Goes Live
What Happened?
Ripple CEO Brad Garlinghouse announced that NYDFS approved RLUSD, Ripple’s new stablecoin.
Exchange and partner listings are imminent, marking a major milestone for the XRP Ledger (XRPL).
What it Means:
Ripple’s RLUSD could compete with other stablecoins like USDC and USDT.
The XRP Ledger (XRPL) will see increased on-chain activity as RLUSD goes live, driving more use cases on the network.
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💥Thank You to my show Sponsors
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📈Crypto Market Metrics
Here are some key data points from Santiment
Top 10 Coins Trending via Social Media
Developer Activity
The top 10 coins with the most developer activity over the past 30 days
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📺 Recent Interviews
Reid Simon, Head of DeFi and Credit Solutions at Securitize, joined me to discuss the company's DeFi solutions for tokenized assets such as BlackRock’s BUIDL.
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📖 ReThinking Crypto Book
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-Tony