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📅 February 2 | According to the investment bank TD Cowen, crypto legislation in the United States could remain stalled indefinitely if the president doesn't personally intervene to force an agreement between two sectors that, in theory, should want the same thing, but which are now more divided than ever.

📖The analysis comes from Jaret Seiberg, director of TD Cowen's Washington research group, who noted that the meeting convened today by the White House crypto czar, David Sacks, with banking groups, crypto associations, and Coinbase, revolves around the most contentious point of the bill: how stablecoin rewards should be handled.
Banks warn that allowing crypto platforms to offer returns without clear limits could drain deposits from the traditional banking system, particularly affecting community banks. From the crypto side, companies like Coinbase maintain that this issue was already discussed during the negotiations of the GENIUS Act, passed last July, and that it is now being used as an excuse to stifle competition.
However, Jaret Seiberg argues that the real debate is not whether platforms will be able to pay returns, because he considers that inevitable, but rather when they will be allowed to do so and under what level of regulatory oversight they will have to operate.
From a banking perspective, stablecoins don't yet pose a real threat to deposits until they become more widely used, and in the meantime, they compete more directly with money market funds.
But the problem doesn't end there. Jaret Seiberg warns that a division exists within the crypto industry itself. For years, legal ambiguity has acted as a barrier to entry, benefiting certain established players.
Clear legislation would allow banks, brokers, and large regulated institutions to enter the market more forcefully, increasing competition for current players.
Added to this is an even greater obstacle: Democratic support in the Senate. For the project to move forward, it would need at least 10 Democratic senators, who would demand stricter protections for investors, tougher anti-money laundering regulations, and severe rules on conflicts of interest that many crypto companies would prefer to avoid.

Topic Opinion:
The biggest barrier to crypto legislation is not regulatory, but political and strategic. There are players within the ecosystem itself who aren't in such a hurry for complete clarity, because the current ambiguity also benefits them. And on the political front, the reputational cost for Democrats of supporting a law that might appear favorable to interests close to Trump is increasingly high.
💬 Do you think Trump will actually intervene to unblock the crypto law?

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#TRUMP #Stablecoins #SEC #CFTC #CryptoNews $USDC $USD1 $TRUMP

**Strategy Inc.** announced on Monday that it purchased 855 Bitcoins ($BTC ) using approximately $75.3 million during the week ending February 1, according to a filing submitted to the U.S. Securities and Exchange Commission (SEC). The funds for the purchase were raised through common stock issuance.
The company announced that the average purchase price per Bitcoin, including fees, was $87,974.
With this purchase, Strategy's Bitcoin holdings have increased to a total of 713,502 BTC, with a total acquisition cost of $54.26 billion and an average purchase price per Bitcoin of $76,052.
This information was disclosed in an 8-K report submitted on February 2, which also included an update on the company's 'at-the-market (ATM)' stock issuance program.
Funding for Bitcoin purchases raised through the sale of ATM common stock
The strategy stated that this Bitcoin purchase was made with funds raised by selling Class A common stock under the existing ATM program.
From January 26 to February 1, the company sold 673,527 shares of common stock, resulting in a net income of $10.61 million after commissions.
According to the disclosure, the strategy has significant remaining issuance limits across several ATM programs, including over $8 billion in the common stock program and additional issuance capacity in various types of preferred stock programs.
The company has repeatedly utilized stock issuance as a primary funding source for Bitcoin purchases, rather than debt directly linked to digital assets.
Long-term accumulated capital market strategy
The strategy's approach has followed a 'playbook' refined over the years.
Read together: What This Company Did With Ethereum Just Created A $6.6B Loss That Rivals Historic Market Collapses
According to past disclosures and earnings reports submitted to the SEC, the company has been raising capital through a mix of common stock issuance, convertible bonds, and preferred stock issuance for Bitcoin purchases since 2020.
In 2020 and 2021, including the issuance of $650 million convertible bonds in December 2020, the company raised billions through subsequent convertible bond issuances, primarily using this for Bitcoin purchases.
In the following years, the company shifted its strategy towards equity-linked products while reducing its reliance on leverage, in order to continue expanding its Bitcoin holdings.
This purchase also aligns with such a pattern, and the disclosure specifies that this Bitcoin was purchased with proceeds from stock sales, not borrowing.
Dividend updates and changes to preferred stock terms
Along with updates related to Bitcoin, the strategy announced an increase in the dividend rate of the variable-rate perpetual stretch Series A preferred stock to 11.25% for the period starting from February 1.
The company also declared a cash dividend of $0.9375 per share for the preferred stock, with the payment date set for February 28.
Next reading: Epstein Archive Uncovers Unsettling Crypto Secrets About Ripple And Stellar.
#SEC #BTC