This week saw numerous significant developments in the DeFi and cryptocurrency space. We explore the key trends and regulatory changes impacting the industry.
Trump's Crypto Executive Order
On January 23, U.S. President Donald Trump issued an executive order aimed at strengthening U.S. leadership in blockchain and digital assets. The directive emphasizes regulatory clarity, financial independence, and bans efforts to develop or promote Central Bank Digital Currencies (CBDCs) in the United States.
SEC Rescinds SAB 121 and Launches SAB 122
The U.S. SEC withdrew its controversial Staff Accounting Bulletin (SAB 121) and introduced SAB 122, offering a more flexible framework for financial institutions managing digital assets. The previous bulletin required cryptocurrency assets held for users to be recorded as liabilities, causing industry concern. SAB 122 allows institutions to custody digital assets without labeling them as liabilities but requires disclosure of related risks and obligations.
Bitwise Files for Dogecoin ETF
Bitwise Asset Management filed for a Dogecoin (DOGE) exchange-traded fund (ETF) with the U.S. SEC on January 23. The filing signals Bitwise's intent to launch a DOGE-focused investment product and represents an initial step toward a full SEC proposal, including a Delaware statutory trust to ensure clear governance and tax benefits.
The past week in the DeFi and cryptocurrency space was packed with events that could substantially influence future regulation and market development. From new U.S. decisions to changes in major companies, each aspect merits attention to understand the industry's trajectory.
