Originally published on: November 11, 2024
After President-elect Donald Trump’s victory in the 2024 US presidential election, Senator Cynthia Lummis is pushing forward with her support for Trump’s proposal for a Bitcoin reserve. The Wyoming Republican, known for her advocacy for cryptocurrency, intends to introduce legislation in the Senate to acquire 1 million BTC, which is roughly 5% of its total supply, and hold it for at least 20 years.
This initiative aligns with Trump’s vision of the government holding seized Bitcoin assets rather than liquidating them. With Republicans gearing up for Senate majority control, Lummis’s plans are gaining traction.
In other news, California’s Department of Financial Protection and Innovation (DFPI) has permanently revoked the lending license of cryptocurrency lender BlockFi. This decision comes after an investigation revealed multiple violations, including misleading loan disclosures and inadequate borrower assessment under the California Financing Law. Despite being fined $175,000, BlockFi has agreed to cease its unsafe practices.
Meanwhile, former Alameda Research CEO Caroline Ellison is facing a two-year prison sentence after pleading guilty to fraud and money laundering charges linked to FTX’s collapse. Her case has shed light on the legal repercussions of FTX’s downfall, with other executives awaiting sentencing.
On the regulatory front, Poland’s Financial Supervision Authority (KNF) issued a public warning about Crypto.com, stating that the platform is not registered as a virtual asset service provider under Polish law. This warning highlights the increasing regulatory scrutiny in the European Union ahead of the implementation of the Markets in Crypto-Assets (MiCA) regulations.
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