The U.S. SEC has announced Staff Accounting Bulletin (SAB) No. 122, replacing SAB 121, which previously discouraged banks when it came to offering Bitcoin (BTC) custody services.

This change allows banks and financial institutions to provide crypto services without facing significant regulatory challenges.

U.S. Banks Can Custody Bitcoin
Under SAB 121, companies holding crypto-assets for customers had to record both an asset and a liability on their balance sheets. SAB 122 allows companies to treat these assets as contingent liabilities, addressing potential losses through theft or fraud.

SEC Commissioner Hester Peirce tweeted that she is happy to see the controversial SAB 121 go. The update removes the requirement for banks to list customer-held crypto, like Bitcoin, as liabilities, easing compliance and reducing financial burdens.

ETF analyst James Seyffart also chimed in, saying it was the right decision and that it should have happened a long time ago.

U.S. Crypto Regulations Evolving

The new guidance enables more banks to offer Bitcoin custody services by only accounting for potential losses, allowing flexibility in safeguarding crypto for customers. Unsurprisingly, the crypto community is excited, as U.S. banks have long wanted to custody Bitcoin.

This update follows the SEC recently creating a crypto task force led by Hester Peirce. Previously, while a resolution to repeal SAB 121 passed Congress in May 2024, President Biden vetoed it.

U.S. President Donald Trump has signed a comprehensive executive order aimed at establishing a concise and effective regulatory framework for digital assets, especially cryptocurrencies.

Clarity Is Key
The first provision of the executive order was the formation of a National Digital Asset Stockpile. The U.S. will explore the creation of a strategic reserve of digital assets, aimed at ensuring economic security and fostering innovation within the sector.

Next, a dedicated working group will also be formed to design a federal regulatory framework for digital assets, including stablecoins, and to provide some much-needed regulatory clarity. The group will be chaired by White House AI and Crypto Czar, David Sacks, and will include senior representatives by the Treasury, U.S. SEC, and other relevant agencies.

No CBDCs

Interestingly, the order explicitly prohibits any federal agency when it comes to initiating or promoting the development of Central Bank Digital Currencies (CBDCs), reaffirming the focus on decentralized cryptocurrencies.

Moreover, the executive order rescinds earlier directives by the prior administration that limited innovation in digital assets, including regulatory frameworks that forced many crypto-oriented companies in the U.S. to move to other countries like the UAE or Singapore.

Finally, the establishment of the Presidential Working Group on Digital Assets is expected to reshape the landscape for cryptocurrencies, NFTs, stablecoins, and other blockchain-based technologies in the years ahead.

AI agents in crypto are automated systems or bots that use artificial intelligence to analyze market data, predict trends, and execute trades. They can optimize investment strategies, execute high-frequency trades, and adapt to market conditions without human intervention.

Nowadays, various smart wallets are seeing strong results by focusing on these AI agents, especially after the success of tokens like $VIRTUAL and $AI16Z.

Huge ROI

One AI-focused wallet has earned $1.4 million in realized profits, including $917,746 via $TRUMP, while another has made $850,747 in 90 days, with tokens like $BUILD and $NOVA delivering over 1,000% returns.

A third wallet turned $657 into $42,064 with $GONESLER and earned over $400,000 through $YOUSIM and $EARL. Yet another wallet, 5LwtbNjQeDvRYB3dz8eVFrapGreCgz999LdR41ArFmNm, leveraging the BullX bot, has made over $850,000 in 90 days with four tokens, namely $BUILD, $NOVA, $THE1, and $SOLENG

More To Come

Needless to say, 2025 looks to be the year of AI agents. According to CoinGecko, the total market cap of these agents is currently $13,429,030,886, while the 24 hour trading volume is $2,531,232,202.

Meanwhile, xKkfsTpvpagTW59PDETGN5cFgtyvPBNcrP8ADjeBW6k, focused on Solana tokens, has made over $1 million in realized profits, including a whopping 6,307% return on $GONESLER and 2,968% on $MUSTARD, with a 67% win rate.

The official X account of Nasdaq was breached by hackers, who used it to promote a fraudulent meme coin.

High Profile Hacks

The hacker linked a fake X account, posing as a Nasdaq affiliate, and used the official Nasdaq account to retweet a post promoting a new meme coin called $STONKS, which was created on the same day. The post has since been removed, and the counterfeit X account has been suspended.

This incident is part of a larger trend of high-profile X account hacks aimed at promoting scam tokens, with previous examples involving celebrities and major institutions and even the U.S. President himself.

Not The Real $STONKS

The $STONKS meme coin appeared to be a clone of an existing token with the same name on the Solana (SOL) blockchain, which holds the intellectual property rights for the meme.

According to DEXscreener, the market cap of the counterfeit $STONKS meme coin briefly soared to a whopping $80 million before crashing shortly afterwards.

Justin Sun recently shared a proposal for managing the Ethereum Foundation (EF) and network, claiming his plan could push ETH to $10,000.

Additionally, the EF is restructuring its leadership to improve execution, developer support, and decentralized technology adoption, while maintaining neutrality.

A Bold Strategy

The TRON founder outlined a strategy involving a three-year halt on ETH sales by the EF, with operational costs covered through DeFi activities like staking and lending ETH. Sun also suggests implementing taxes on Layer 2 projects to generate $5 billion annually for ETH buybacks and burns.

The taxes would therefore help reduce redundant staff while raising salaries for remaining employees and improving overall efficiency. He also proposes reducing node rewards and enhancing fee-burning mechanisms to maintain deflationary pressure on ETH.

Lofty Ambitions

Essentially, Justin wants to scale Ethereum while simultaneously improving security and boosting overall adoption. With him at the helm, Sun predicts he can help ETH surpass $4,500 within a week and reach $10,000 eventually.

Meanwhile, the EF has faced criticism for selling ETH to fund operations rather than using staking or DeFi strategies. In response, Vitalik Buterin cited past regulatory concerns but stated that the EF is now exploring DeFi options. The EF plans to allocate 50,000 ETH to a multi-sig wallet for DeFi activities, with a test transaction already completed on Aave.

Bitwise Asset Management has registered the BITWISE DOGECOIN ETF in Delaware, prompting speculation about a potential SEC filing.

While this is not yet an official ETF application, it signals the possibility of Dogecoin (DOGE) joining Bitcoin (BTC) and Ethereum (ETH) in the ETF market.

Sooner Than Later

The Dogecoin logo recently appeared on the U.S. Department of Government Efficiency (D.O.G.E.) website, established by executive order on January 20th, 2025, further fueling investor interest in the meme cryptocurrency.

Furthermore, the registration by Bitwise can be seen as a big step toward filing a Form S-1 with the SEC, with Bloomberg ETF analyst Eric Balchunas estimating that a Dogecoin ETF could launch as soon as April 2025, assuming approval.

DOGE Reacts

Following the announcement, DOGE surged by 4%, reaching $0.373 before stabilizing around $0.36. Whale activity has also intensified, with large holders acquiring 590 million DOGE tokens in a single day, now holding about 30% of the total supply. While this indicates bullish sentiment, it raises concerns about potential volatility if whales decide to sell.

Still, analysts are predicting strong price movements, with some forecasting that Dogecoin could reach $2 or even $15 if the ETF is approved. Once again however, most of this is pure speculation and is heavily contingent on SEC approval.

Bitcoin (BTC) mining has reportedly saved Texas an estimated $18 billion in energy costs by eliminating the need for expensive gas peaker plants.

A Viable Alternative
A report published by the Digital Assets Research Institute highlighted the contributions of Electric Reliability Council of Texas (ERCOT) CEO Brad Jones, who identified Bitcoin mining as a viable alternative to stabilize the Texas electrical grid.

Traditionally, natural gas-fired peaker plants have been used for this purpose, but their high costs, environmental impact, and inefficiency have made them less appealing. The report noted that Bitcoin mining offers a more flexible and environmentally friendly solution, producing significantly fewer emissions compared to gas peaker plants.

A Crucial Role
Bitcoin miners play a critical role in stabilizing power grids. They ramp up operations during periods of excess electricity supply and scale back significantly during times of high demand, such as extreme weather events.

This flexibility enables grid operators to reduce dependence on less efficient power plants and better integrate renewable energy sources like solar and wind, which are often underutilized during peak demand periods.

Hester Peirce of the U.S. Securities and Exchange Commission (SEC) has been tapped to lead a new crypto task force aimed at establishing a sensible regulatory framework for the agency. The initiative was announced on Tuesday by newly appointed acting Chair Mark Uyeda.

Clearing All Ambiguities

Thus far, the SEC has largely relied on enforcement actions to regulate crypto in a retroactive and reactive manner, frequently employing novel and untested legal interpretations. There remains significant ambiguity about registration requirements and practical solutions for entities seeking to comply.

The formation of the task force signals a potential shift in crypto regulation at the SEC, particularly in the wake of former Chair Gary Gensler finally leaving. Gensler had frequently asserted that most cryptocurrencies qualify as securities and urged crypto firms to register with the agency. However, many in the industry pushed back, arguing that these rules are outdated and ill-suited to the unique nature of digital assets. 

Safe Harbor Period

Acting Chair Uyeda has been a vocal critic of the SEC and described its crypto strategy as a disaster while emphasizing the need for clearer guidance. Commissioner Peirce, who has long been an advocate for a more innovation-friendly approach, previously proposed a three-year safe harbor period allowing blockchain projects to develop without immediately complying with certain federal securities laws.

The task force will be supported by two advisers, namely Richard Gabbert, who will serve as Chief of Staff, and Taylor Asher, who will take on the role of Chief Policy advisor. The group will prioritize creating clear regulations, establishing realistic paths to registration, ensuring robust disclosure practices, and applying enforcement judiciously. The agency stressed that these efforts will remain within the boundaries of its congressional mandate.

Coinbase CEO Brian Armstrong has suggested the exchange might delist USDT if new U.S. regulations require stricter compliance.

Committed To Compliance

The remarks by the CEO come as the crypto industry braces for potential rules mandating stablecoins to be fully backed by U.S. Treasury bonds and subject to regular audits.

Although Tether holds a significant portion of its reserves in Treasury bonds, its diversification into assets like Bitcoin (BTC) and gold could put it at odds with such regulations. Still, Armstrong emphasized that Coinbase remains fully committed to compliance, even if it means removing USDT.

Stablecoin Competition Heats Up

As a major shareholder in Circle, the issuer of USDC, Coinbase could benefit via a regulatory environment favoring USDC over competitors. The move could significantly shift the $218 billion stablecoin market, with both USDC and RLUSD poised to experience significant gains if USDT falters.

In any case, this potential delisting underscores the growing regulatory scrutiny in the U.S., which may disrupt non-U.S. entities like Tether, reshaping the global stablecoin landscape.

U.S. President Donald Trump has officially fulfilled his promise to pardon Ross Ulbricht, the founder of the infamous Silk Road darknet marketplace. In May 2024, during his campaign, Trump pledged to pardon Ulbricht on his first day back in office if re-elected.

The Silk Road Story

Ulbricht gained notoriety in October 2013 as the mastermind behind the pseudonym Dread Pirate Roberts (DPR). The then 30-year-old Ph.D. student, researching solar cells, was arrested at the Glen Park Branch Library in San Francisco. Authorities alleged he was the brain behind one of the largest darknet marketplaces ever uncovered.

Launched in 2011, Silk Road became a sensation for leveraging anonymity tools like Tor and Bitcoin (BTC). It provided a platform for users to purchase items, predominantly illicit drugs like MDMA, without disclosing personal details.

More importantly, Silk Road was one of the first large-scale marketplaces to adopt Bitcoin as its primary currency. This played a pivotal role in many regulators linking BTC to illegal activities and tarnishing its reputation as a tool for criminal enterprises.

Controversies Surrounding The Case

After his arrest, several inconsistencies in the Ulbricht case surfaced. Ross admitted to creating the Silk Road marketplace but claimed he was no longer operating it at the time of his arrest. Allegations of corruption among key investigators further clouded the proceedings.

Ulbricht was eventually sentenced to two life terms plus 40 years in prison for seven charges, including narcotics trafficking, distributing drugs online, and conspiracy to commit money laundering.

The sentencing drew criticism for its severity, especially when compared to Thomas White, the operator of Silk Road 2.0, who received just five years and four months in prison.

Donald Trump has appointed Mark Uyeda, a senior official at the U.S. Securities and Exchange Commission (SEC), to temporarily lead the agency until a permanent chair is confirmed.

The move came shortly after Trump was sworn in as the 47th President of the United States during his inauguration.

An Unsustainable Environment

Uyeda, a Republican commissioner, has repeatedly criticized the SEC and its crypto enforcement under former Chair Gary Gensler, calling it a poorly conceived crypto policy and advocating for clearer regulations.

The environment which has been created for crypto markets, especially in secondary trading, is unsustainable, Uyeda said in March, alongside fellow Commissioner Hester Peirce. With Gensler leaving and a Republican majority, the SEC is expected to significantly shift its approach to crypto.

Clarity Is Key

Uyeda and Peirce are considering starting a process for clearer crypto guidance, which could include reviewing pending enforcement cases. Uyeda previously served as counsel to former Rep. Pat Toomey and SEC Commissioners Michael Piwowar and Paul Atkins.

Interestingly, Atkins, a crypto supporter, was recently named to lead the SEC, pending Senate confirmation. Trump also appointed Travis Hill as the acting Chair of the Federal Deposit Insurance Corporation (FDIC), following remarks by Hill concerning clearer crypto regulations for banks.

David Lawant, the Head of Research at FalconX, reported that Bitcoin (BTC) saw an astounding $46 billion in spot trading volume this past Monday.

This marks the largest holiday/weekend trading volume ever recorded, according to Lawant, and it also ranks as the fifth-highest volume in the entire history of Bitcoin.

BTC Hits New ATH

In related news, Bitcoin recently hit an all-time high of $109,356. However, the rally was brief, with the flagship crypto quickly retracing to below $100,000 on the same day, forming a bearish candlestick pattern. Meanwhile, the stock markets were closed on Monday in observance of Martin Luther King Jr. Day.

At the time of writing, Bitcoin was trading at around $101,650. Over the last 24 hours, a total of $747.71 million worth of crypto has been liquidated, according to data by CoinGlass.

Strategic Reserve Woes

The market reaction was partly influenced by the lack of an announcement regarding the establishment of a U.S. Bitcoin reserve, which had been anticipated by many. With the chances of such a reserve being implemented in the next 100 days now reduced to just 33%, this disappointment likely contributed to the significant Bitcoin pullback.

Still, with Donald Trump finally being sworn in as the 47th President of the United States earlier this week and officially firing Gary Gensler as SEC Chair, many are hopeful that Bitcoin can reach new heights before long.