What happened in crypto this week

We’ve had one other busy week in the crypto market: Bitcoin hits $109,000, Trump and Melania launch memecoins, Elon Musk’s DOGE company sued, Circle acquires Hashnote, Trump pardons Silk Road creator Ross Ulbricht, Taiwan is contemplating permitting banks to subject stablecoins, banks will embrace crypto with clearer rules, and Trump indicators government order for crypto working group.
Bitcoin hits $109,000
Bitcoin hit a brand new all-time excessive of over $109,000 forward of Donald Trump’s inauguration on Monday.
On January 20, Bitcoin reached a brand new excessive as market sentiment stays optimistic about Trump’s plans for the crypto trade. The newest excessive surpasses its earlier report of over $108,000, which it achieved in December.
Trump additionally talked about Bitcoin in a Sunday speech, highlighting its report efficiency because the US election.
“Since the election, the stock market has surged and small business optimism has soared a record 41 points to a 39-year high,” Trump stated. “Bitcoin has shattered one record high after another.”
Over the previous 90 days, Bitcoin is up practically 60% and has a market cap worth of $2.09 trillion.
Trump and Melania launch memecoins
Ahead of Trump’s inauguration on Monday, January 20, he introduced the launch of his $TRUMP memecoin on his Truth Social platform.
Within 24 hours of launching, the meme token rose 580% in worth, topping $75, with a market cap of practically $6 billion.
Following Trump, Melania Trump launched her memecoin, $MELANIA, final Sunday, which noticed the token reaching a excessive of over $13.
At the time of publishing, $TRUMP and $MELANIA are buying and selling at greater than $33 and $2.60, in accordance with knowledge from CoinMarketCap.
Elon Musk’s DOGE company sued
Elon Musk’s Department of Government Efficiency (DOGE) company reportedly had three lawsuits filed towards it inside minutes of Trump’s inauguration on Monday.
In a 30-page lawsuit from the National Security Counselors, a public curiosity regulation agency, it questions the legality of the company Trump stated he’d create to “dismantle government bureaucracy.”
According to the criticism, DOGE violates the Federal Advisory Committee Act (FACA), which requires advisory committees to observe sure guidelines, together with permitting public involvement.
National Security Counselors state that DOGE meets the necessities to be thought of a “federal advisory committee.” Yet, whereas comparable businesses observe a “fairly balanced” illustration, preserve assembly data, and permit public involvement, as required by regulation, DOGE doesn’t.
The two different lawsuits have been filed by a gaggle that features the American Federation of Government Employees and the State Democracy Defenders Fund. In one other case, the plaintiffs are the Citizens for Responsibility and Ethics in Washington and the American Federation of Teachers.
Despite this, the US authorities launched the DOGE company web site the next day.
Circle acquires Hashnote
Stablecoin issuer Circle acquired Hashnote for an undisclosed quantity earlier this week. As a part of the acquisition, Circle is planning to combine USYC as collateral on crypto exchanges.
In a put up on X, Circle stated that the transfer, alongside a strategic partnership with DRW, a world buying and selling agency, “is set to redefine the landscape of digital asset capital markets.”
Circle introduced at the moment the acquisition of Hashnote and USYC Tokenized Money Market Fund.
This strategic transfer, alongside a partnership with world buying and selling agency DRW by way of @CumberlandSays and information that we’re bringing native USDC to the @CantonNetwork, is about to redefine the panorama… pic.twitter.com/mB1nBr7x5F
— Circle (@circle) January 21, 2025
By integrating USDC, Circle’s stablecoin, and USYC, the platform is enabling interconvertibility between each belongings, permitting USYC for use as most well-liked collateral on exchanges and brokers.
Trump pardons Silk Road creator Ross Ulbricht
Donald Trump signed an order, giving Ross Ulbricht, the founding father of darknet market Silk Road, a full pardon this week.
In a put up on his Truth Social platform, Trump wrote:
“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 pardon comes after Ulbricht spent 12 years in jail following his arrest in 2013. Ulbricht created Silk Road in 2011; nonetheless, he was given two life sentences plus 40 years in 2015. Upon pardoning Ulbricht, Trump referred to as Ulbricht’s sentence “ridiculous.”
Taiwan is contemplating permitting banks to subject stablecoins
Taiwan’s monetary regulator is to suggest laws enabling native banks to subject stablecoins pegged to the New Taiwan Dollar (NTD).
The draft regulation from the Financial Supervisory Commission (FSC) is anticipated to be launched in June 2025. It goals to bridge the divide between fiat and digital currencies, enhancing investor entry to the burgeoning crypto market.
The proposal for banks to subject stablecoins is seen as a pivotal step in this regulatory evolution, offering a safer and controlled atmosphere for cryptocurrency transactions.
The FSC emphasizes that every one stablecoins issued inside Taiwan can be underneath the joint administration of the central financial institution, guaranteeing their stability and legitimacy.
Zhuang Xiuyuan, director of a Taiwanese financial institution, has voiced issues over current stablecoins like Tether and USDC, criticizing their backing by non-government acknowledged belongings.
To deal with these points, any new stablecoin in Taiwan would require express approval from the FSC, guaranteeing they meet particular {qualifications} concerning issuer credibility and reserve allocations.
Banks will embrace crypto with clearer rules
Bank of America’s CEO has stated that US banks will embrace crypto funds if clearer guidelines are in place from regulators.
Speaking on the World Economic Forum, Brian Moynihan stated that if guidelines come in and crypto funds are made “real,” then “the banking system will come in hard on the transactional side of it.”
So far, US banks have been cautious about providing retail crypto companies, as a substitute specializing in offering institutional merchandise similar to US spot Bitcoin exchange-traded funds (ETFs).
Trump indicators government order for crypto working group
Less than a week into getting into the White House, Trump has signed an government order for a crypto working group designed to offer regulatory readability.
When signing the order, Trump appeared together with his AI and crypto czar David Sacks who spoke concerning the order to the president. Sacks, who can be main the working group if it’s applied, stated: “we’re going to be forming an internal working group to make America the world capital under your leadership.”
In addition to offering regulatory readability, the working group seeks to guard the US greenback by the event of lawful dollar-backed stablecoins worldwide. The working group additionally needs to ban “the establishment, issuance, circulation, and use of a [central bank digital currency] within the jurisdiction of the United States.”