Bitcoin has recently surpassed the $100,000 mark, driven by a substantial rally following Donald Trump's U.S. presidential election win. The cryptocurrency increased from $69,374 on Election Day to hitting an all-time high of $103,713. This surge is attributed to Trump's pro-cryptocurrency stance and his nomination of cryptocurrency advocate Paul Atkins as the next SEC chair. Trump’s election victory has raised hopes among top crypto players for favorable legislative and regulatory changes. Despite this rally, experts caution about the risks and volatility associated with bitcoin investment. The sustainability of this upward trend depends on several factors, including regulatory decisions and market conditions. Though it could continue to climb, bitcoin’s history shows it can also decline rapidly, making it a speculative investment.
In a significant development, the Trump Media & Technology Group , affiliated with President Donald Trump and operator of the Truth Social platform, has struck a $6.4 billion deal to acquire CRO, the native token of Crypto.com's Cronos blockchain. This initiative establishes TMTG as the first major publicly traded CRO treasury firm. The agreement reinforces the administration’s deepening ties with the crypto sector, which Trump has openly supported through policy initiatives and campaign funding. As part of the deal, Crypto.com purchased $50 million in TMTG stock, while TMTG acquired $105 million in CRO tokens. Additionally, Yorkville Acquisition Corp will invest $1 billion in CRO tokens and rebrand its Nasdaq ticker to “Make CRO Great Again,” backed by a $5 billion credit line from Yorkville Advisors. The CRO token price surged 35% after the news, while TMTG shares rose 6%. This move signifies a growing convergence between traditional media and the cryptocurrency industry.
In regulatory news, the Federal Deposit Insurance Corporation has announced that banks no longer need prior approval to engage in cryptocurrency-related activities, such as holding digital currency assets or partnering with industry companies. This marks a significant policy reversal from the cautionary stance adopted two years ago under the previous administration. FDIC acting chairman, Travis Hill, emphasized the shift away from the previous, flawed approach. This change comes after a joint warning issued in January 2023 by the Federal Reserve, FDIC, and the Office of the Comptroller of the Currency following the crash of the Terra stablecoin and FTX's downfall. The OCC was the first to revise guidelines allowing banks to partake in common crypto activities without prior approval. Legal actions by Coinbase revealed FDIC's updated policy, which now requires institutions to manage associated risks adequately while engaging in digital asset activities.
On the international front, Hong Kong's largest licensed cryptocurrency exchange, HashKey Group, has announced the launch of its first Digital Asset Treasury fund with an initial target of $500 million. This multi-currency fund will pursue a strategy that mirrors the growing trend of public companies accumulating cryptocurrency assets to benefit from rising token prices and a more favorable regulatory landscape. Inspired by the success of U.S.-based firms, which hold over $63 billion in crypto, similar firms have collectively amassed around 100,000 bitcoin, according to Standard Chartered. HashKey aims to lead in standardizing crypto assets and fostering a sustainable Web3 ecosystem through strategic investments in top-tier DAT projects globally. The fund will initially focus on mainstream crypto assets, particularly within the Ethereum and Bitcoin ecosystems. This move reflects HashKey’s broader strategy of building a diversified digital asset portfolio and supporting the development of decentralized internet infrastructure.
In a concerning development, FTX has initiated a lawsuit against Binance and its former CEO Changpeng Zhao, seeking $1.8 billion related to an allegedly fraudulent 2021 share deal. The suit claims the deal was illicitly funded using customers' money. The dispute involves Binance selling its 20% stake in FTX back to the company, paid mostly in cryptocurrency tokens. FTX's collapse later triggered a significant drop in crypto values and bankruptcies within the industry. The lawsuit, filed in Delaware, alleges FTX was insolvent and concealed its financial instability while using customers' deposits for the deal. Former FTX CEO Sam Bankman-Fried is serving a 25-year sentence for fraud. Zhao resigned from Binance last year following a $4.3 billion fine and a brief jail term over money laundering control failures. FTX is also pursuing other lawsuits to recover funds used to support its misleading appearance of financial health.
These developments underscore the dynamic and rapidly evolving nature of the cryptocurrency landscape, highlighting the interplay between political decisions, institutional investments, and regulatory shifts. As the industry continues to mature, stakeholders must navigate these changes carefully to leverage opportunities and mitigate risks.
