This week, the cryptocurrency market has recorded several important developments, from regulatory progress to significant legal rulings. These highlights demonstrate the continued evolution of the global cryptocurrency ecosystem.
The following are key developments that occurred this week and will continue to impact this space.
Gary Gensler, SEC Chair, to Resign
Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), announced his resignation in January 2025. The cryptocurrency industry had long anticipated the end of his tenure, which was marked by controversial digital asset regulations.
"On January 20, 2025, I will step down as Chair of the SEC," he shared.
During Gensler's tenure, there were strict investigations into projects such as XRP, Solana, and Cardano. The news of his resignation had a significant impact on the cryptocurrency market, with XRP and Solana (SOL) seeing substantial price increases.
The cryptocurrency industry now anticipates a change in leadership that could introduce a clearer framework for digital assets. Gensler's resignation is tied to the ongoing demand for balanced regulation, providing hope for less adversarial interactions between regulators and the cryptocurrency community.
U.S. Considers Appointing a 'Crypto Czar'
The Trump administration is considering appointing a "crypto czar" to lead the nation's approach to digital assets. Former Commodity Futures Trading Commission (CFTC) Chair Chris Giancarlo is in discussions for this role.
Other considerations include Coinbase CEO Brian Armstrong, who has received strong support from Cardano's Charles Hoskinson, as well as former Binance US and Coinbase executive Brian Brooks.
In addition to the crypto czar role, Trump's social media and technology companies are negotiating to acquire the cryptocurrency exchange Bakkt, which could provide new opportunities for Trump.
Russia Revises Crypto Policy
According to BeInCrypto, Russia has revised its cryptocurrency taxation bill to introduce measures to more effectively regulate and tax cryptocurrency transactions. It has also banned cryptocurrency mining in occupied Ukraine due to security concerns.
"From December 2024, the Russian Energy Ministry will crack down on mining equipment in energy-deficient regions like Irkutsk, Chechnya, and the DPR. The conclusion is clear: energy is not infinite, and miners may have to move stealthily or change direction," Mario Nawfal wrote on X (formerly Twitter).
These developments reflect Russia's dual approach of leveraging the economic potential of cryptocurrencies while strictly controlling their use. Analysts warn that these policies may hinder innovation and ensure compliance with national interests.
Bitfinex Hackers Sentenced: Couple Jailed
BeInCrypto also reported that a U.S. court sentenced Heather Morgan, the wife of Ilya Lichtenstein, for her role in the 2016 Bitfinex hack. This ruling came shortly after Lichtenstein's own 5-year prison sentence.
Morgan and her husband attempted to launder the funds through various means, including purchasing gold and Non-Fungible Tokens (NFTs). Lichtenstein's sentence was significantly lower than the maximum of 20 years, as he cooperated extensively with authorities.
These rulings reflect the ongoing efforts to bring cryptocurrency-related crimes to justice. They also highlight the importance of strong security and regulatory oversight in the industry. Nevertheless, the 2016 Bitfinex attack remains one of the largest cryptocurrency thefts in history.
OCC Approves Bitcoin ETF Options Trading
This week, the U.S. Office of the Comptroller of the Currency (OCC) approved Bitcoin ETF (Exchange-Traded Fund) options trading. This decision has set an important regulatory milestone for the U.S. financial market. The approval is expected to increase market liquidity and provide greater flexibility for institutional and individual investors to hedge risks.
This move is anticipated to facilitate the broader adoption of Bitcoin ETFs, potentially driving increased trading volume and market participation. Analysts believe this approval could pave the way for the further development of Bitcoin-related financial products.
Author of 'Softwar' Launches White House Bid
In addition to the interesting events in the cryptocurrency market this week, Jason Lowery, the author of 'Softwar', is vying for a White House position. His bid focuses on Bitcoin adoption and national security. Lowery advocates for Bitcoin as a strategic asset, reflecting its potential to strengthen the U.S. against global economic uncertainties.
His interest reflects the growing intersection of politics and cryptocurrencies, as policymakers recognize the strategic implications of Bit.
"I recommend Major Jason Lowery as a presidential advisor to develop Bit as a national strategic asset," a user claimed on X.
Grayscale Bit Covered Call ETF
Additionally, Grayscale has updated its Bit Covered Call ETF. This has increased the utility for investors seeking income-generating strategies. This ETF provides returns by utilizing option strategies. This offers a unique way to capitalize on the volatility of Bit.
This product demonstrates the continuous innovation in crypto financial products. It meets the diverse investment needs in the rapidly changing market.
"Grayscale wasted no time after the BTC ETF option approval. They have filed an updated prospectus for the Bit Covered Call ETF (no ticker yet). This fund will provide exposure to GBTC and BTC, and generate yield by writing or purchasing option contracts on the Bit ETP," James Seyffart mentioned.
China Recognizes Crypto as Property
One of the major crypto news this week was a groundbreaking legal ruling. A Chinese court recognized crypto as legitimate property. This decision provides protection for crypto holders within the strict crypto regulations. This sheds a ray of hope for crypto enthusiasts in the region.
This ruling may influence future regulatory approaches. It could contribute to balancing state control and individual rights in the digital economy.
Paul Tudor Jones Adds to Bit Position
Additionally, hedge fund manager Paul Tudor Jones reaffirmed his commitment to Bit. Jones cited Bit's resilience in the face of economic uncertainty while disclosing his continued stake. This support strengthens Bit's status as "digital gold" in the volatile financial environment.
"Billionaire hedge fund manager Paul Tudor Jones: All roads lead to inflation... I own gold, I own Bit, I own commodities," Michael Burry said, quoting Jones.
His firm, Tudor Investment Corporation, has significantly increased its Bit holdings. This emphasizes its role as a hedge against inflation and geopolitical risks.
Poland Proposes Bit Reserve
In addition to Paul Tudor Jones, another Bit supporter this week was Polish MP Slawomir Mentzen. The presidential candidate promised to establish a Bit reserve if elected. This suggests the potential for crypto-friendly policy changes in Poland.
"Poland should create a strategic Bit reserve. If I become the President of Poland, our country will become a crypto paradise. We will have very friendly regulations, low taxes, and a supportive approach from banks and regulators," Mentzen shared.
His vision includes embracing Bit as a hedge against economic instability and strengthening the national economy through Block innovation. His proposal resonates with the growing trend among countries exploring Bit adoption to protect financial sovereignty.
Mentzen's promise reflects the increasing sentiment across Europe to leverage crypto for economic resilience. If realized, this policy could position Poland as one of the few countries to integrate Bit into its fiscal strategy. This would signal a significant shift in the European crypto policy framework.
