📰 BIG News - SEC Crypto Task Force & Trump Frees Ross Ulbricht

We got a flood of bullish news for the crypto industry over the past 24 hours.

Jan 22, 2025

Hey Thinkers 💡

What an incredible 24 hours it has been for the crypto market! The news has been overwhelmingly bullish, signaling transformative changes for the industry. Here's the full rundown:

SEC Launches Crypto Task Force

The Securities and Exchange Commission (SEC) has announced that Acting Chair Mark Uyeda has launched a “crypto task force” aimed at “developing a comprehensive and clear regulatory framework for crypto assets.” The task force will be led by SEC Commissioner Hester Peirce, also known as Crypto Mom.

This marks a significant shift from the approach of current SEC Chair Gary Gensler. The move signals a willingness to work collaboratively with Congress to finalize and pass crypto legislation this year. Such clarity is expected to attract more capital and innovation into the crypto asset class.

Watch my exclusive interview with SEC Commissioner Hester Peirce from last week:

Donald Trump Pardons Ross Ulbricht

In a landmark decision, President Donald Trump has issued a full and unconditional pardon to Ross Ulbricht, the creator of Silk Road, a platform integral to Bitcoin's early history. Trump shared the news on Truth Social:

“I just called the mother of Ross William Ulbricht to let her know that in honor of her and the Libertarian Movement, which supported me so strongly, it was my pleasure to have just signed a full and unconditional pardon of her son, Ross. The scum that worked to convict him were some of the same lunatics who were involved in the modern-day weaponization of government against me. He was given two life sentences, plus 40 years. Ridiculous!”

Trump fulfilled his campaign promise of pardoning Ross. Interestingly, Coinbase director Conor Grogan has identified around 430 BTC in wallets associated with Ross Ulbricht. These funds are currently valued at approximately $47 million.

Court Lifts OFAC Sanctions on Tornado Cash

A U.S. court has overturned sanctions against Tornado Cash, a cryptocurrency mixing protocol. This decision marks a potential shift toward innovation-friendly regulations for privacy-preserving technologies.

OFAC, under the U.S. Treasury, originally sanctioned Tornado Cash in August 2022. This ruling is a major victory for crypto privacy advocates and could pave the way for broader acceptance of privacy-focused technologies.

Major Bank CEOs Speak Bullish on Crypto

At Davos, the CEOs of three major banks shared their optimistic outlook on crypto:

Bank of America CEO Brian Moynihan: “If the rules come in and make it a real thing that you can actually do business with, you’ll find that the banking system will come in hard on the transactional side of it.”
State Street CEO Ronald O'Hanley: “We see digital assets very much as part of the future. It actually could and should be beneficial to markets to the extent it accelerates settlement periods. A regulatory framework would be very helpful, and to the extent accounting rules change, custodying crypto would be of interest to us.”
Goldman Sachs CEO David Solomon: “I don’t see Bitcoin as a threat to the U.S. Dollar.” He highlighted significant testing with blockchain technology, though noted regulatory constraints currently limit the firm’s activities with crypto.

SAB 121 Repeal on the Horizon

The common theme among these bank CEOs’ statements? They all point to the need for a clear regulatory framework. One significant change on the horizon is the potential repeal of SEC’s SAB 121, a rule that restricts banks from directly holding crypto assets. Reports suggest President Trump could sign this repeal soon, allowing banks to custody crypto without facing restrictive rules.

What Happens Next For Bitcoin?

Despite a slow down in buying at the end of December, Bitcoin whales and sharks have started buying aggressively since January 15th. Brian Q. from Santiment joined me to break down the data.

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