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Argentina has implemented new regulations for crypto firms, while the US is considering a bill to formalize a Strategic Bitcoin Reserve.
Democrat Representative Gerald is urging the US Treasury to stop efforts to create a crypto reserve.
David Sacks, before becoming the White House AI and crypto czar, sold over $200 million in crypto assets. Argentina's securities regulator has established rules for virtual asset service providers, focusing on registration, cybersecurity, and asset custody.
VASPs in Argentina must register with the PSAV registry or face penalties. A new bill in Congress aims to make the US Strategic Bitcoin Reserve permanent, preventing future administrations from dismantling it.
The bill requires Senate and House approval, with Republicans likely to support it. This move signifies a shift towards a more crypto-friendly environment in the US.
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Trump’s Proposal for a U.S. Bitcoin Stockpile: What You Need to Know

Bitcoin prices have surged in 2024, partly due to President-elect Donald Trump's proposals for a crypto-friendly administration. Among his plans is the idea of building a U.S. bitcoin stockpile, which he believes could become a "permanent national asset" to benefit all Americans and establish the country as a leader in the cryptocurrency space.
During a July conference, Trump stated that holding onto the country's bitcoin reserves would help make the U.S. a dominant force in global cryptocurrency. Some advocates are urging the new administration to take this further by creating a bitcoin strategic reserve to help the U.S. reduce its national debt.

How a Bitcoin Stockpile Would Work

The U.S. government already owns nearly $20 billion worth of bitcoin, mainly obtained through legal seizures, according to crypto tracking firm Arkham Intelligence. While federal officials occasionally sell some of these holdings, Trump has suggested halting future sales to establish a "core" stockpile of bitcoin.
During a July speech, Trump emphasized the importance of never selling bitcoin: “For too long, our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin.”
Bitcoin's value has risen by more than 100% this year. By keeping its bitcoin reserves intact, the U.S. could contribute to maintaining high prices, benefiting current investors.

"If you constrain supply in the overall, real-time market, then it does help to not suppress the price," said Seoyoung Kim, author of *DeFi For Dummies* and associate professor of finance at Santa Clara University.
Some are pushing for more than just maintaining the current crypto holdings. They advocate for a bitcoin reserve, similar to the U.S.'s gold and oil reserves, arguing that this could help reduce the $36 trillion national debt.
Republican Senator Cynthia Lummis from Wyoming introduced a bill proposing the U.S. acquire 1 million bitcoins, about 5% of all outstanding bitcoins, to hold for at least 20 years. The plan would fund the acquisition by revaluing $11 billion in gold certificates held by the Federal Reserve.
Lummis argued that a bitcoin reserve could not only help reduce national debt but also strengthen the U.S. dollar. “While there may be short-term volatility, over the long term a bitcoin reserve like this will serve as an important and stable store of value,” Lummis wrote in a *Wall Street Journal* op-ed.

Trump has also suggested that a bitcoin reserve would allow the U.S. to compete globally in cryptocurrency. "We don't want China or anybody else — and not just China, but others are embracing it — and we want to be the head,” Trump told CNBC in December.
Other countries with significant bitcoin holdings include China ($18.5 billion), the United Kingdom ($6 billion), Ukraine ($4.5 billion), Bhutan ($1 billion), and El Salvador ($582 million), according to BitcoinTreasuries.

Do We Need a Bitcoin Strategic Reserve?
Despite the enthusiasm for a bitcoin stockpile, some experts argue that the U.S. doesn't need such a reserve to remain competitive. Michele Neitz, a visiting professor at the University of San Francisco, said, “I would rather see regulatory clarity around all digital assets moving forward. To me, that benefits the U.S. economy even more than possibly holding a volatile asset in reserve.”

Risks of a Federal Bitcoin Reserve
Creating a stockpile of bitcoin may be simple for the president to enact, as the government would just stop selling its holdings. However, funding a strategic reserve would likely require Congressional approval, and analysts believe this is unlikely.
Owen Lau, a senior analyst at Oppenheimer & Co., explained, “I just have not heard enough support for creating something like that. Taking the idea further to actively buy and sell bitcoin would be quite risky and harder to justify to the public.”
Concerns about the risks of holding bitcoin include vulnerabilities to cyberattacks and the potential for a significant decline in bitcoin's price. Bitcoin has experienced large price swings in the past, such as a 70% drop between November 2021 and November 2022.
“If bitcoin goes up, you benefit from it. If bitcoin goes down, the taxpayer will lose value on that trade,” Lau said.

A Barclays analysis suggested that funding a bitcoin reserve would likely require issuing new Treasury debt, which could face strong opposition from the Federal Reserve. When asked about the proposal, Federal Reserve Chair Jerome Powell stated, “We’re not allowed to own bitcoin. The Federal Reserve Act says what we can own, and we’re not looking for a law change. That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed.”

Conclusion

While Trump’s bitcoin reserve plan has generated considerable interest, it remains unclear whether it will gain the necessary support in Congress. The proposal has sparked debate about the potential benefits and risks of the U.S. government holding a strategic bitcoin reserve, with some advocating for regulatory clarity over stockpiling the volatile asset. Ultimately, the future of this plan will depend on both political and economic factors.
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Trading patterns in equity markets reveal that investors are bracing for increased volatility as the latest U.S. inflation report is set to be released.
Bitcoin Moving in Tandem With Tech Stocks
The correlation between bitcoin and U.S. technology stocks has surged to a two-year high, underscoring how the equity market’s response to the upcoming U.S. inflation report could shape the trajectory of digital assets.
According to data compiled by Bloomberg, the 30-day correlation coefficient between bitcoin and the Nasdaq 100 Index currently sits at approximately 0.70. This figure suggests a significant alignment between the movements of the two assets, with 1 representing perfect synchronization and -1 indicating an inverse relationship.
The highly anticipated inflation report is expected to reflect persistent price pressures. This comes against a backdrop of a strong U.S. economy and mounting uncertainty about the Federal Reserve’s capacity for further interest-rate cuts. These economic conditions are intertwined with speculation surrounding President-elect Donald Trump’s policy agenda, set to gain momentum after his inauguration on January 20.
Trump’s administration has expressed ambitions to make the U.S. a global hub for cryptocurrencies. These developments have heightened speculation and volatility in financial markets, including digital assets.
“The overall sensitivity to interest rates over the past month suggests increased importance of Wednesday’s CPI print,” noted analysts Vetle Lunde and David Zimmerman of K33 Research. “Additionally, notable Trump momentum may still form in the days leading into the inauguration.”
As the Federal Reserve navigates interest-rate policies and Trump’s presidency begins, the interplay between macroeconomic factors and digital asset markets will be under scrutiny.
Bitcoin’s increasing correlation with technology stocks highlights the growing integration of cryptocurrencies into broader financial markets, but it also amplifies their exposure to macroeconomic shifts. For bitcoin, the coming days may set a crucial tone, influencing whether it regains its upward momentum or faces further downside pressure.
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The Securities and Exchange Commission (SEC) is making significant changes to its cryptocurrency regulation approach, including staff reductions and new oversight requirements. The special cryptocurrency enforcement unit, which currently employs more than 50 lawyers and staff members, will be downsized with some attorneys transferring to other departments.
The changes come as part of a broader shift in cryptocurrency regulation under the current administration. SEC lawyers will now need to obtain permission from the presidential administration before launching formal investigations into market participants. This represents a departure from traditional SEC operations, where the agency typically operates under the oversight of its five-member commission.
Commissioner Hester Peirce, known in the crypto community as 'Crypto Mom', has been appointed to lead a new Crypto Task Force. On February 4, 2025, Peirce published an article outlining ten priority areas for the task force, including defining boundaries between different types of digital assets and creating clearer paths for crypto company registration.
The same day, David Sacks, serving as 'crypto czar', held a press conference with members of Congress to discuss regulatory priorities. Their first focus will be examining stablecoin legislation, while also exploring the possibility of establishing Bitcoin reserves for the United States at the president's request.
The reorganization follows one of President Trump's executive orders aimed at reducing regulatory pressure on the digital asset market. The current SEC commission consists of three members, all presidential appointees, who will oversee these changes in regulatory approach.
The new task force under Commissioner Peirce is designed to develop more transparent rules for cryptocurrency regulation. Key areas of focus include clarifying the status of staking and crypto lending, as well as defining the responsibilities between the SEC and other regulatory bodies.
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