This week in decentralized finance saw many significant events, from Donald Trump's crypto executive order to new DeFi initiatives worth exploring in detail.
Trump's Executive Order and Its Implications
On January 23, 2023, Donald Trump signed an executive order to strengthen U.S. leadership in blockchain and digital assets. The directive emphasizes regulatory clarity, financial independence, and privacy, while banning any federal efforts to develop or promote Central Bank Digital Currencies (CBDCs).
SEC Rescinds SAB 121, Introduces SAB 122
The U.S. SEC has withdrawn the controversial Staff Accounting Bulletin (SAB 121) and introduced SAB 122, providing a more flexible approach for financial institutions managing digital assets. SAB 122 allows institutions to custody digital assets without labeling them as liabilities but mandates disclosure of related risks and obligations.
Meme Coin and DeFi Initiatives
Bitwise Asset Management filed for a Dogecoin (DOGE) exchange-traded fund (ETF) with the SEC, marking the initial step towards a DOGE-focused investment product. Additionally, the Ethereum Foundation allocated 50,000 ETH to expand its involvement in the DeFi ecosystem, aiming to optimize treasury management.
This week has seen a number of significant changes and initiatives in the cryptocurrency world that may substantially impact the industry's future. The laws and decisions made during this period highlight the importance of regulation and open new opportunities for market participants.
