Wall Street Backs Trump's Pro-Crypto Plans

Hodl Topic, January 26th, 2025

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📈 Preview On Today’s News:

1. - Wall Street Backs Trump's Pro-Crypto Plans

2. - Indonesian Crypto Market Surges with 335.9% Growth in 2024

3. - US Crypto Projects Eye Tax Breaks Under Proposed Reforms

Keep reading below for more!

Today’s News:

1)

Wall Street Backs Trump's Pro-Crypto Plans

Wall Street CEOs are rallying behind former President Donald Trump's bold pro-crypto initiatives, including a January 23 executive order to establish the National Digital Asset Stockpile. The order aims to promote cryptocurrency adoption and streamline regulations, leading to the rescinding of the SEC's restrictive SAB 121 rule. This development has reignited interest from major financial institutions like Morgan Stanley and Bank of America, which are exploring crypto payment systems and custodial services. Trump's administration has also nominated pro-crypto officials, including former SEC Commissioner Paul Atkins and hedge fund manager Scott Bessent, to key regulatory roles. The industry has responded enthusiastically, with Bitcoin reaching $110,000 before stabilizing at $106,000.

• Wall Street CEOs are aligning with Trump’s pro-crypto policies, including an executive order and the removal of restrictive SEC rules, to boost adoption and streamline regulations.

• Key pro-crypto figures are being appointed to regulatory roles, driving optimism, while Bitcoin surged to $110,000 amid the positive developments.

2)

Indonesian Crypto Market Surges with 335.9% Growth in 2024

Indonesia's crypto market experienced extraordinary growth in 2024, with the user base soaring to 22.1 million and trading volumes skyrocketing by 335.9% to $40.2 billion. This growth, driven by increased adoption of popular cryptocurrencies like USDT, BTC, DOGE, PEPE, and XRP, is expected to push user numbers beyond 25 million soon. Oversight of the burgeoning market will shift from the Commodity Futures Trading Regulatory Agency (Bappebti) to Indonesia’s Financial Services Authority (OJK) in 2024 to strengthen regulatory frameworks and support further expansion.

• Indonesian crypto users reached 22.1 million in 2024, driving a 335.9% trading volume increase to $40.2 billion, with key cryptocurrencies like USDT, BTC, and DOGE leading activity.

• Oversight will transition from Bappebti to OJK to enhance regulation, with projections of over 25 million users as market adoption grows.

3)

US Crypto Projects Eye Tax Breaks Under Proposed Reforms

The Trump administration is considering a transformative tax reform to boost US-based cryptocurrency projects, potentially eliminating capital gains tax for domestic ventures like XRP and HBAR. Meanwhile, non-US projects could face a steep 30% tax rate, sparking debates over its potential impact on global collaboration. In parallel, Senator Ted Cruz is opposing an IRS rule requiring DeFi platforms to report user data, citing concerns over privacy, compliance burdens, and innovation stifling. Cruz plans to invoke the Congressional Review Act to challenge this rule, reflecting a broader push to prioritize decentralized systems and support blockchain innovation in the US.

• Eric Trump has hinted at a zero capital gains tax for US-based crypto projects, with a contrasting 30% tax rate proposed for non-US ventures.

• Senator Ted Cruz opposes IRS rules mandating DeFi platforms to report user data, arguing they hinder innovation and breach privacy, pushing for their repeal through Congress.

4)

Bitcoin Holders Show Resilience Amid Minimal Selling on Binance

Bitcoin's long-term holders remain steadfast despite market volatility, as recent data reveals minimal selling activity from this group. CryptoQuant’s analysis shows that only 18% of Bitcoin deposits to Binance in early 2025 originated from investors holding their assets for over 155 days, signaling confidence in Bitcoin's long-term growth. While short-term traders drive most inflows during price swings, whale wallets holding 1,000–10,000 BTC exhibit a similar hold strategy, further bolstering market stability. Despite sharp inflow spikes in 2024, Bitcoin's price steadily climbed, reflecting strong demand and cautious optimism among investors.

• Only 18% of Binance deposits come from long-term Bitcoin holders, signaling confidence in its long-term growth, with whale wallets also showing minimal selling activity.

• Despite sharp inflow spikes and short-term trading activity in 2024, Bitcoin's price steadily climbed, highlighting market stability and strong demand.

5)

Ripple CLO Slams SEC as Judge Rejects Crypto Securities Label in Kraken Case

A California federal judge dealt a blow to the SEC by rejecting its claim that crypto assets sold on Kraken qualify as securities, marking a significant moment in the ongoing regulatory battle. Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s outdated legal strategies in the case and called for clearer regulations instead of enforcement through litigation. Despite the ruling, Kraken remains under scrutiny, having previously settled with the SEC for $30 million and ceased staking services. The decision highlights growing industry frustration over the SEC’s approach to crypto regulation.

• A federal judge ruled that crypto assets sold on Kraken are not securities, sparking criticism of the SEC’s enforcement tactics from Ripple's CLO, Stuart Alderoty.

• The case underscores the crypto industry’s demand for clearer regulations, as the SEC faces growing backlash for relying on outdated legal strategies.

6)

Brian Armstrong Highlights Trump's Crypto Vision at World Economic Forum

Coinbase CEO Brian Armstrong emphasized the significance of Trump’s cryptocurrency policies at the World Economic Forum in Davos, noting that financial leaders globally are closely monitoring these developments. Trump’s vision includes positioning the U.S. as a leader in artificial intelligence and cryptocurrencies, alongside potential initiatives like a strategic Bitcoin reserve or broader digital asset stockpiles. Armstrong also highlighted rising institutional investments in cryptocurrency, which signal a transformative shift in the financial landscape, despite ongoing regulatory challenges. This momentum marks a pivotal moment for cryptocurrency’s role in modernizing global financial systems.

• Brian Armstrong highlighted Trump's vision for U.S. leadership in AI and cryptocurrencies, including speculation on initiatives like a strategic Bitcoin reserve.

• Rising institutional investments in cryptocurrency signal a transformative shift, as Armstrong sees crypto shaping the modernization of global financial systems despite regulatory challenges.

7)

Elon Musk Brings Blockchain to Government Efficiency via D.O.G.E

Elon Musk is integrating blockchain technology into the Department of Government Efficiency (D.O.G.E.), an initiative established by Donald Trump to streamline federal operations. According to Bloomberg, D.O.G.E. aims to use blockchain for tracking federal spending, securing data, and improving payment systems. Musk’s team has already engaged public blockchain networks to evaluate potential solutions, emphasizing transparency and cost efficiency. Despite excitement from blockchain proponents like Binance’s CZ and Cardano’s Charles Hoskinson, critics question conflicts of interest and potential risks to federal employees. With office space in the White House, Musk’s D.O.G.E. efforts represent a bold step toward applying blockchain on an unprecedented scale.

• Elon Musk’s D.O.G.E. initiative aims to integrate blockchain into federal operations to enhance transparency, track spending, and improve efficiency.

• While blockchain proponents praise the move, critics raise concerns about conflicts of interest and risks to federal employees.

8)

Grayscale Aims for Solana ETF as Pro-Crypto Sentiment Grows in the U.S.

Grayscale Investments has filed to convert its Solana Trust into a spot Exchange-Traded Fund (ETF), reflecting increased optimism for cryptocurrency investments under President Trump’s administration. The proposed Solana ETF, holding $134.2 million in assets, seeks to offer a regulated investment pathway that mirrors SOL’s value without direct ownership. Coinbase Custody Trust has been selected as the custodian, aiming to boost investor confidence. Grayscale’s initiative aligns with a growing trend of crypto ETFs, supported by a more crypto-friendly regulatory environment and the SEC’s establishment of a dedicated crypto task force. Despite initial mixed market reactions, analysts anticipate that institutional adoption of Solana could increase significantly if the ETF gains approval.

• Grayscale filed to convert its Solana Trust into a spot ETF, with Coinbase Custody Trust as custodian, reflecting growing pro-crypto sentiment in the U.S. under President Trump.

• The initiative aligns with an expanding crypto ETF landscape, as regulatory developments and institutional interest signal greater integration of digital assets into mainstream finance.

9)

Nasdaq Proposes Efficiency Boost for BlackRock Bitcoin ETF

Nasdaq has filed a rule change proposal with the SEC to implement an in-kind creation and redemption model for BlackRock's iShares Bitcoin Trust (IBIT). This model allows institutional investors to exchange Bitcoin for ETF shares directly, eliminating cash transactions and reducing costs like bid/ask spreads and broker commissions. The in-kind system also enhances tax efficiency by minimizing capital gains distributions, benefiting long-term investors.

• Nasdaq's proposed in-kind model for BlackRock's Bitcoin ETF enables institutional investors to transact directly in Bitcoin, reducing costs and enhancing tax efficiency.

• With IBIT already attracting $40 billion in its first year, the move aims to strengthen its market position while reflecting broader trends in crypto ETF innovation.

10)

Elon Musk’s DOGE Department Pushes Blockchain to Cut $1 Trillion in Federal Spending

Elon Musk’s Department of Government Efficiency (DOGE) is spearheading an initiative to incorporate blockchain technology to slash $1 trillion in federal spending and improve transparency in government operations. By leveraging decentralized ledgers, DOGE aims to enhance secure record-keeping, prevent fraud, and streamline payments. Despite criticism from figures like Senator Elizabeth Warren, who raised concerns about corruption risks, Musk’s bold vision emphasizes the transformative potential of blockchain in modernizing federal systems. Discussions are ongoing with blockchain platforms like Solana, although no final decisions have been made.

• DOGE’s blockchain plan aims to cut $1 trillion in spending through secure record-keeping, fraud prevention, and transparent operations, with ongoing platform evaluations.

• Critics question corruption risks, but the initiative underscores a broader effort to modernize government systems using blockchain technology.