Regulation
Kentucky Becomes Latest State To Propose Bitcoin Reserve Bill – Key Details
Bitcoin (BTC) frenzy is sweeping across the US following Donald Trump’s victory in the November presidential election, with Kentucky becoming the latest state to introduce legislation aimed at establishing a Bitcoin reserve.
Kentucky Joins The Bitcoin Reserve Club
Kentucky has become the 16th US state to introduce legislation seeking to create a Bitcoin reserve. Introduced by State Representative Theodore Joseph Roberts, the bill, titled HB376, proposes allowing the State Investment Commission to allocate up to 10% of excess state reserves into cryptocurrencies. The bill states:
The total amount of excess cash invested under subsection (9)(k), (l), and (m) of this section shall not, at the time of the investment is made, exceed ten percent (10%) of the total amount of excess cash invested under subsection (9) of this section.
While the bill does not explicitly mention Bitcoin, its definition of eligible digital assets ensures that only BTC would qualify. According to the bill, any digital asset included in the reserve must have a market capitalization exceeding $750 billion and cannot be a stablecoin.
As of today, BTC is the only cryptocurrency meeting these criteria, with a total market capitalization of over $1.9 trillion at the time of writing. In contrast, the second-largest cryptocurrency, Ethereum (ETH), has a market cap of approximately $334 billion.
With this legislation, Kentucky joins a growing list of states pursuing similar Bitcoin reserve initiatives. Other states that have introduced comparable bills include Arizona, Alabama, Florida, Massachusetts, Missouri, New Hampshire, North Dakota, South Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Kansas, and Wyoming.
However, despite numerous proposals, none of these bills have been implemented so far. Wyoming’s WYHB201 bill failed to pass a committee vote, while North Dakota’s ND HB1184 bill was voted down in the House.
Conversely, Utah’s HB230 bill has successfully passed the House and advanced to the Senate, marking the first Bitcoin reserve bill to clear a chamber vote. Whether it will pass the Senate remains to be seen.
Could National BTC Reserves Be Next?
Globally, more countries are considering the establishment of strategic BTC reserves, aligning with a recent report suggesting that nation-state adoption will drive the next phase of cryptocurrency expansion.
For example, US Crypto Czar David Sacks recently stated that the federal government is exploring the feasibility of a national BTC reserve. Similarly, Brazil is considering adding BTC to its National Treasury to diversify financial holdings.
Meanwhile, countries such as El Salvador and Bhutan have already accumulated substantial Bitcoin reserves. At press time, BTC trades at $99,620, up 1.5% in the past 24 hours.
Featured Image from Unsplash.com, Charts from Bitcoinlaws and TradingView.com
Acting U.S. Securities and Exchange Commission (SEC) Chair Mark Uyeda has announced a move to reconsider a proposed rule that could regulate decentralized finance (DeFi) exchanges. The rule, known as Regulation ATS, aimed to broaden the definition of an exchange to include communication protocols used in the crypto sector. Uyeda stated that he directed SEC staff to explore options for abandoning the portion of the proposal related to crypto, citing widespread public criticism.
SEC Chair Mark Uyeda Moves to Drop Rule Targeting DeFi Exchanges
In a recent development in crypto regulations, SEC Chair Mark Uyeda has asked agency staff to explore options for removing part of the proposed Regulation ATS. The rule sought to expand the definition of an exchange to include communication protocols in crypto markets.
Uyeda said that the proposal would have forced DeFi platforms to register as regulated exchanges. The move faced heavy opposition from the crypto industry, with concerns that it could impose excessive compliance burdens. Uyeda acknowledged the criticism and emphasized that the SEC should reconsider its approach.
Meanwhile, in other regulatory news, Thailand’s SEC has officially approved USDT as a recognized cryptocurrency. The decision allows virtual asset service providers in the country to offer Tether’s stablecoin on their platforms, expanding its accessibility for businesses and individuals.
Regulation ATS Expansion Could Have Classified DeFi as Exchanges
Regulation ATS was initially designed to regulate alternative trading systems but was revised under former SEC Chair Gary Gensler. The proposed changes could have extended its scope to DeFi platforms. This would have subjected decentralized exchanges to regulatory oversight similar to traditional financial markets.
Critics warned that the proposed rule could hinder innovation in decentralized finance. Industry leaders argued that forcing DeFi projects to comply with exchange registration and disclosure requirements could be impractical due to their decentralized nature. Uyeda recognized these concerns and indicated that the SEC may step back from its initial position.
Most recently, CoinGape reported that ConsenSys challenged the SEC’s proposed DeFi rule changes, arguing that they exceed the agency’s legal jurisdiction. The company contends that the amendments impose undue regulatory burdens on decentralized protocols, conflicting with existing legal frameworks. ConsenSys has called for the SEC to withdraw the rule entirely, citing risks to innovation and compliance complexities.
Trump-Era and Impact on Crypto Regulations
The SEC has taken a different approach to crypto regulations under the new administration. Uyeda’s move follows a series of policy reversals since the departure of former SEC Chair Gary Gensler. The agency recently rescinded strict crypto accounting guidance and dropped several enforcement actions against industry players.
The shift signals a more relaxed regulatory stance toward digital assets. With the Trump administration in office, the SEC appears focused on easing restrictions that critics viewed as overly aggressive. Uyeda’s latest decision continues this trend, as the agency re-evaluates its approach to crypto oversight.
More so, crypto regulations in the U.S. may see improved clarity as the SEC and CFTC strengthen their collaboration. This effort will eliminate past jurisdictional conflicts and create a more structured oversight framework for digital assets.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Controversy has trailed the announcement of a Crypto Strategic Reserve with critics taking swipes at crypto czar David Sacks over allegations of unjust enrichment. Gemini cofounder Cameron Winklevoss has waded in to defend Sacks, noting that the crypto czar is losing a fortune in gains by preventing a conflict of interest.
Gemini Founder Says Sacks Could Lose Up To $1 Billion In Crypto Gains
Amid swirling speculations of unjust enrichment, Sacks confirmed the sale of all his cryptocurrency holdings to avoid a conflict of interest. Gemini Founder Cameron Winklevoss remarked that Sacks’ decision to sell off all cryptocurrencies would cost him gains running into a billion dollars.
“David Sacks is going to easily lose out on $1 billion in crypto gains over the next 4 years,” said Winklevoss. “He sold all of his crypto holdings (including $85 million of his personal holdings) prior to becoming AI and crypto czar.”
Sacks has previously confirmed the sale of his digital asset holdings while denying Multicoin exposure after divesting his stake. According to Sacks, he cumulatively sold $200 million worth of cryptocurrencies while disposing of $85 million worth of personal assets. He confirmed that he liquidated his holdings in crypto funds, including Bitwise and Blockchain Capital, before assuming office.
Cameron says Sacks is at the helm of a policy shift for cryptocurrencies in the US but will not reap any benefits from the windfall of changes.
“He is doing tremendous work and will not be sharing in any of the economic upsides to avoid even the slightest appearance of a conflict,” said the Gemini cofounder.
Sacks Leads The Charge For New Crypto Policy Without Pecuniary Benefits
David Sacks has hit the ground running since his appointment as crypto and AI czar, playing a key role in setting up the White House Crypto Summit. His efforts led to the establishment of a Strategic Bitcoin Reserve and the US Digital Asset Stockpile.
Sacks disclosed that the US has lost over $17 billion from the previous sale of confiscated Bitcoins. The concerted efforts of Sacks are expected to trigger new institutional interest in the ecosystem, sending prices to new all-time highs by the end of Trump’s first tenure.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto exchange Coinbase has stated that the Federal Deposit Insurance Cooperation (FDIC) has refused to cooperate in Operation Choke Point 2.0 investigation while denying transparency on their part. While other agencies like the U.S. Office of the Comptroller of the Currency (OCC) rolled back in 2020 guidance, agencies like the FDIC have been reluctant on this matter.
Coinbase CLO Blames FDIC for Refusal on Transparency
In a message on the X platform, Coinbase CLO Paul Grewal lashed out at the FDIC for its refusal to cooperate and resist basic transparency efforts towards unwinding of the Operation Choke Point 2.0. This operation major led to the debanking of crypto companies with the goal of leaving them dry of liquidity. Speaking on it, Grewal wrote:
“They haven’t gotten the message. Despite a huge week for crypto across the rest of the federal government, on this late Friday night over at FDIC staff still continue to resist basic transparency into Operation Chokepoint 2.0”.
The crypto exchange asked the regulatory agency on how they conducted the “due diligence” to ensure no documentation related to the event was destroyed. However, according to Grewal, the agency has “repeatedly refused” to provide this information.
He also stated that FDIC has been withholding key information related to its Freedom of Information Act (FOIA) practices, and has only provided “snippets from a few documents” that appear unrelated to the specific FOIA policies or practices challenged in the amended complaint filed by History Associates.
“What exactly are they hiding?” Grewal questioned FDIC, highlighting concerns over the agency’s transparency in handling FOIA requests.
Developments in Operation Choke Point 2.0 Elimination
Fox Business journalist Eleanor Terret stated that the recent White House Crypto Summit highlights major regulatory changes that would be coming to the crypto industry. During his remarks at the event, President Donald Trump referenced the rollback of Biden-era banking regulations, which critics say facilitated “Operation Chokepoint 2.0”.
While the FDIC is not cooperating on the matter, the Office of the Comptroller of the Currency (OCC) is reversing 2020 guidance that restricted banks from engaging with and providing custody services for cryptocurrencies.
“This rollback is a major signal the industry and banks have been waiting for,” Terret stated. She added that it could pave the way for financial institutions to begin actively participating in the digital assets space.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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