Headline
▌Trump Administration Considers Letting CFTC Lead Digital Asset Regulation
According to FOX Business, the incoming Trump administration wants to expand the Commodity Futures Trading Commission (CFTC)'s authority to regulate a large portion of the digital asset market.
With Trump taking office and the growing influence of the crypto industry in Republican politics, the CFTC's responsibilities may soon expand to regulate crypto spot markets that are considered commodities, such as Bitcoin and Ethereum, and the exchanges that facilitate their trading, according to sources with direct knowledge of the Trump team's thinking. Core figures in the Trump team believe that deregulation is needed to spur innovation in the crypto business, including the potentially transformative blockchain technology that can eliminate expensive middlemen in business transactions.
"With adequate funding and the right leadership, I think the CFTC could have started regulating digital commodities on day one of the Trump presidency," former CFTC Chairman Chris Giancarlo told FOX Business."
▌US Court Rules Sanctions Against Tornado Cash Smart Contracts Illegal
The U.S. Fifth Circuit Court held that the Treasury Department's sanctions against Tornado Cash smart contracts were illegal and that the Treasury Department exceeded its authority when it sanctioned the immutable smart contracts deployed by Tornado Cash. Tornado Cash developers overstepped their authority when deploying immutable smart contracts because they are not the property of foreign persons or entities.
Market
As of press time, according to Coingecko data:
BTC's latest transaction price is $92,077.18, with a daily increase or decrease of -1.3%;
ETH's latest transaction price is $3,323.72, with a daily increase or decrease of -2.7%;
BNB's latest transaction price is $613.16, with a daily increase or decrease of -3.7%；
SOL's latest transaction price is 230.84 US dollars, and its intraday increase or decrease is -1.7%；
DOGE's latest transaction price is 0.387 yuan, and its intraday increase or decrease is -2.0%；
XPR's latest transaction price is 1.40 US dollars, and its intraday increase or decrease is -1.4%.
Policy
▌Senator Joni Ernst wrote to the U.S. Government Efficiency Department, proposing a $2 trillion government spending cut
Iowa Senator Joni Ernst recently wrote to Elon Musk and Vivek Ramaswamy, leaders of the U.S. Government Efficiency Department, proposing the idea of budget cuts. Ernst's suggestions include addressing idle office space and uncommitted COVID-19 relief spending, with a total proposed cut of more than $2 trillion.
Previous news, Iowa Senator and Republican Joni Ernst will lead the U.S. Senate Government Efficiency Department (DOGE) caucus.
▌Brazilian lawmaker formally proposed to establish a national strategic Bitcoin reserve
A Brazilian congressman formally proposed to establish a national strategic Bitcoin reserve - a sovereign strategic reserve of Bitcoin. The plan, the "Sovereign Strategic Reserve of Bitcoin" (Reserva Estratégica Soberana de Bitcoins, or RESBit), aims to diversify the country's treasury. Congressman Eros Biondini submitted the proposal on Monday, according to Brazilian media platform Portal do Bitcoin.
▌NYSE Submits 19b-4 and S-1 Documents to SEC for Bitwise BTC & ETH ETF
According to Nate Geraci, president of The ETF Store, the New York Stock Exchange submitted 19b-4 and S-1 documents to the US SEC to list the Bitwise Bitcoin & Ether ETF. The product will hold both spot BTC and ETH, weighted by market capitalization.
Bitwise co-founder Matt Hougan said: "Bitcoin and Ethereum are not competitors, just like gold and technology stocks." He believes that this ETF will be widely welcomed by investors.
Blockchain Applications
▌Kraken will close its NFT market on February 27, 2025
Crypto exchange Kraken announced that it will close its NFT market on February 27, 2025. After November 27, 2024, users will no longer be able to list, bid or sell items on Kraken's NFT market; they can only withdraw assets.
Kraken said: "We decided to close our NFT market in order to shift more resources to new products and services, including unannounced plans under development. Customers have been informed of these changes, and our team will support them in transferring their NFTs to their Kraken wallets or self-custodial wallets of their choice."
Previously, Kraken first revealed in December 2021 that it would launch its own NFT market and launch a beta version in November 2022.
▌Galaxy: The number of Bitcoin L2 projects has increased about 7 times from 2021, from 10 to 75
Galaxy disclosed data on the X platform, and the number of Bitcoin L2 projects has increased about 7 times since 2021, from 10 to 75. Since 2018, Bitcoin L2 has received $447 million in investment, and this trend is changing the utility of BTC.
In addition, Bitcoin L2 projects have achieved unprecedented growth, receiving 36% of venture capital funds in 2024 alone. It is expected that by 2030, more than $47 billion worth of BTC can be connected to L2 to support DeFi, homogeneous tokens, payments, etc.
Cryptocurrency
▌Standard Chartered Bank Analyst: BTC's short-term bottom is in the $85,000 to $88,700 range
Geoff Kendrick, head of global digital asset research at Standard Chartered Bank, attributed the recent market turmoil, including the decline of Bitcoin and the rise of long-term U.S. Treasuries, to the decline in the term premium of U.S. Treasuries. The term premium is the additional return that investors require to hold long-term bonds rather than roll over short-term bonds. Since Bitcoin is often seen as a tool to hedge against instability in traditional financial markets, increased confidence in U.S. Treasuries may weaken the appeal of Bitcoin in the short term, causing its price to fall.
Kendrick said: "MicroStrategy's purchases show no signs of slowing down, and they are unlikely to sell, but the average purchase price of ETFs and MSTR since the election is $88,700, which may become a short-term bottom, and Bitcoin may consolidate in the range of $85,000 to $88,700 before resuming its upward trajectory."
▌Nasdaq ISE excludes Bitcoin trust products FLEX options trading
Nasdaq ISE LLC submitted a rule change proposal to exclude Bitcoin-related trust products such as Fidelity Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF and Grayscale Bitcoin Trust from FLEX options trading. The proposal has been approved by the U.S. Securities and Exchange Commission (SEC) and takes effect immediately, aiming to ensure that option positions and exercise restrictions are consistent with existing rules. The SEC also solicited public comments on this proposal, which can be submitted in a variety of ways.
▌Cipher Mining Announces Acquisition of New Texas Mine, Signs 100 MW Facility Expansion Agreement
Cipher Mining Inc. (NASDAQ:CIFR) announced that it has completed a transaction to acquire a new power plant called Stingray in West Texas for $4.1 million in cash and a variable fee of $1.5/MWh for the first five years after the power plant is energized. The 250-acre site has been approved and has signed a facility expansion agreement of up to 100 MW.
"With the addition of this site, we now have a data center scheduled to be commissioned in 2026, which will complement our other new data centers scheduled to be commissioned in 2025 and 2027," said Tyler Page, Cipher CEO. With the addition of this new site, Cipher's active portfolio and development pipeline will total 2.6 GW at 11 sites.
▌Pump.fun accounted for more than 62% of Solana's DEX trading volume in November
According to Dune data, pump.fun accounted for 62.3% of Solana's decentralized exchange (DEX) trading volume in November, while its trading volume accounted for 42.3%. In the past three months, the platform has contributed an average of more than 60% of Solana's DEX trading volume.
▌Grayscale opens private subscriptions for 17 token trust funds including SOL, SUI, and XRP to qualified investors
Grayscale announced on the X platform that it has now opened private subscriptions for 17 token trust funds to qualified investors, including: $AAVE, $AVAX, $BAT, $BCH, $TAO, $LINK, $FIL, $LTC, $LPT, $MKR, $NEAR, $SOL, $STX, $XLM, $SUI, $XRP, and $ZEC.
According to official disclosures, Grayscale will reopen private subscriptions to qualified investors from time to time based on net asset value (NAV).
Important Economic Dynamics
▌The probability of the Fed cutting interest rates by 25 basis points in December is 62.8%
According to CME's "Fed Watch", the probability of the Fed maintaining the current interest rate unchanged by December is 37.2%, and the probability of a cumulative interest rate cut of 25 basis points is 62.8%. The probability of maintaining the current interest rate unchanged by January next year is 28.4%, the probability of a cumulative interest rate cut of 25 basis points is 56.8%, and the probability of a cumulative interest rate cut of 50 basis points is 14.8%.
▌Fed Mouthpiece: Fed meeting minutes suggest that interest rate cuts will become cautious if inflation stagnates
"Fed Mouthpiece" Nick Timiraos wrote that Fed members discussed the issue of slowing or pausing interest rate cuts at a meeting earlier this month if progress in reducing inflation stagnates. Officials believed that if the economy performs in line with their expectations that inflation will continue to decline steadily, then "a gradual move toward a more neutral interest rate setting may be appropriate," according to the minutes of the Federal Reserve meeting released on Tuesday. All 19 officials involved in the discussion agreed to cut the Fed's benchmark short-term interest rate by 25 percentage points, according to the minutes. Some policymakers believed that the risk of a more pronounced slowdown in the job market or economy had diminished since the September meeting. Many of them also said there was greater uncertainty about where interest rates should be set for an economy that needed neither stimulus nor monetary constraints. The minutes said these considerations "make it appropriate to gradually reduce policy constraints."
▌Fed Considers Cutting Reverse Repo Rate by 5 Basis Points as a Technical Adjustment
The Federal Reserve considered cutting the reverse repo rate by 5 basis points as a technical adjustment, according to the minutes of the Federal Reserve meeting. Some participants said it might be appropriate to consider resetting the overnight reverse repo rate to the bottom of the federal funds rate target range in the future.
Golden Encyclopedia
▌What is an airdrop?
An airdrop is the cryptocurrency equivalent of a surprise gift. Imagine opening a box and discovering coins inside! This is similar to receiving an announcement about free coins or tokens from a new blockchain project. Crypto airdrops involve distributing digital assets to a user's wallet for free, or in exchange for completing simple tasks, such as following a project on social media or joining their online community.
In the crypto ecosystem, airdrops play a vital role. New projects use airdrops as a marketing strategy to increase awareness and build a user base. They are like free samples in a supermarket, enticing users to try new products. From a user's perspective, airdrops offer an opportunity to get new cryptocurrencies with minimal effort, and with the potential for huge gains. These tokens are more than just freebies, they are a way to participate in the growing digital economy.
Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.
Hui Xin
YouQuan
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