AiCoin Daily Report (February 20)

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2 days ago

1. Trump is Committed to Making America the Capital of Cryptocurrency

President Donald Trump stated at a meeting in Miami on Wednesday, "We want to be at the forefront of everything, and cryptocurrency is one of them." Trump discussed the overall economy on Wednesday before specifically talking about Bitcoin. -Original

2. Trump Crypto Project Makes Large Purchase of SEI

Trump's crypto project World Liberty Finance spent 125,000 USDC to purchase 548,000 SEI just 3 minutes ago. -Original

3. Federal Reserve Officials Consider Slowing Down Balance Sheet Reduction

Odaily Planet Daily reports that "Federal Reserve mouthpiece" Nick Timiraos stated that the minutes from the Fed's January meeting showed that officials discussed whether to slow down or pause the reduction of its nearly $6.8 trillion asset portfolio during last month's meeting, as they face complex issues related to raising the federal debt ceiling in the coming months. Dynamics related to the debt ceiling could lead to significant fluctuations in the Fed's liabilities. The balance sheet reduction process will ultimately deplete the reserves of the banking system, and Fed officials are uncertain how long this process will last. How the Treasury manages its cash balances, which could trigger fluctuations in the money market, may complicate the Fed's ability to determine the correct reserve balance. Therefore, according to the minutes released on Wednesday, officials at the January meeting believed that "considering pausing or slowing the reduction of the balance sheet until the debt ceiling issue is resolved may be appropriate." -Original

4. SEC Accepts 21Shares' Spot ETH ETF Staking Application

Odaily Planet Daily reports that the U.S. SEC has accepted 21Shares' application to allow staking for its spot ETH ETF. -Original

5. EU Approves 10 Stablecoin Issuers, Tether Not Included

The list of compliant stablecoin issuers under the EU's Markets in Crypto-Assets (MiCA) regulation has been released, with 10 institutions including Circle, Crypto.com, and Société Générale approved to issue euro and dollar stablecoins, involving 10 types of euro stablecoins and 5 types of dollar stablecoins. The world's largest stablecoin issuer, Tether (USDT, with a market cap of over $141 billion), was not included in the list. -Original

6. Coinbase Urges Congress to Grant CFTC Authority Over Crypto Market Regulation

Coinbase is calling on the U.S. Congress to grant the Commodity Futures Trading Commission (CFTC) full authority to regulate the cryptocurrency spot market and has proposed six legislative priorities. Coinbase's Chief Policy Officer Faryar Shirzad emphasized in the proposal that Bitcoin and Ethereum should be classified as commodities rather than securities, thus the CFTC should be responsible for regulating the cryptocurrency spot market to ensure market transparency and prevent fraud and manipulation. The six core recommendations of the proposal include: clearly defining tokens and trading, granting CFTC authority over the spot market, establishing SEC capital raising rules, creating a stablecoin regulatory framework, protecting decentralized finance (DeFi) and digital commerce, and ensuring regulatory clarity for centralized entities. -Original

7. U.S. Tax Policy May Endanger DeFi Technology Development

Almost all prominent figures in the cryptocurrency industry have signed a letter urging Congress to repeal a U.S. tax policy that they believe could jeopardize decentralized finance (DeFi) technology, as the policy forces most areas into the realm of brokers that require data collection and reporting. The IRS pushed a significant digital asset broker rule between Christmas and New Year’s just days before President Trump took office. This rule aims to impose information reporting requirements on DeFi brokers similar to those for securities brokers and exchanges. According to the Congressional Review Act, recently approved rules can be repealed, and Texas Republican Senator Ted Cruz introduced a resolution last week to do just that. On Wednesday, an industry joint letter led by the Blockchain Association and signed by Coinbase, a16z, Paradigm, Kraken, Uniswap, Anchorage Digital, and dozens of other companies called on other members of Congress to support Cruz's measure. The letter sent to the leadership of both chambers of Congress stated, "The DeFi broker rule finalized just before the end of the Biden administration represents overregulation, fundamentally misunderstanding the technology it seeks to regulate, and ignoring Congress's intent." Utilizing Congress's power to overturn federal agency regulations provides "a clear and straightforward path to rescind this destructive rule before it takes effect." These companies collectively argue that this rule unfairly targets U.S. companies, while foreign competitors do not have to comply with these rules when serving U.S. customers. They stated, "This unique burden on U.S. companies alone could completely undermine this country's DeFi innovation." The CRA can be a powerful but sometimes clumsy tool, gaining popularity during President Donald Trump's first term. The secondary impact is that any regulatory subject overturned in this manner cannot be reintroduced in a similar way, which could make it difficult to apply more friendly regulations in the same area. When Congress attempted to use it to repeal the SEC's crypto accounting policy, Staff Accounting Bulletin No. 121, the minority opposing the effort argued that it would hinder the SEC's future efforts to address digital asset accounting issues. Although both chambers approved the CRA effort, then-President Joe Biden vetoed the attempt, leading Trump's interim SEC Chairman Mark Uyeda to recently take action to accomplish the same internally. CRA resolutions require majority approval from both chambers of Congress before being submitted to President Trump for signing. After the 2024 election, there will be more pro-crypto lawmakers in Congress, although there are pressing issues such as the federal budget that demand attention. In addition to this letter, other cryptocurrency organizations are also getting involved. A spokesperson for the DeFi Education Fund expressed excitement at seeing the growing momentum against the "unworkable, unconstitutional" rule, as the organization is committed to ensuring that this rule is not implemented. The U.S. Treasury released the 2025 crypto tax regime, delaying non-custodial rules. -Original

The above is a selection of hot topics from the past 24 hours. For faster news, please download AiCoin (aicoin.com).

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