Launchy Regulatory Roundup #22 - Trump Plans Executive Order Declaring Crypto a National Priority
SG Polymarket Ban | EU’s DORA Rules
Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
January 19, 2025
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Welcome to our 22nd edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!
Good Morning,
The crypto world anticipates a major policy shift with Trump's inauguration tomorrow. His team has signalled a pro-crypto stance, hinting at executive orders to ease regulations, improve banking access, and boost institutional adoption. But how soon will promises turn into action? Markets are watching closely, as the next few weeks could define crypto’s future in the US.
In Today's Edition:
Headline: Trump Plans Executive Order Declaring Crypto a National Priority 🇺🇲
Global Legal Roundup: Strategic Bitcoin Reserve Bills 🇺🇲 & Polymarket Ban 🇸🇬
Case Study: EU’s DORA Rules Take Effect 🇪🇺
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HEADLINE
Trump Plans Executive Order Declaring Crypto a National Priority
State of play: According to Bloomberg, President-elect Donald Trump is expected to sign an executive order shortly after taking office on Jan. 20, designating crypto as a national priority.
The order aims to instruct regulatory agencies to collaborate with the crypto industry, with discussions about forming a crypto council to advocate for industry-friendly policies.
The New York Times reported that crypto executives have provided input to Trump's team, particularly David Sacks, the newly appointed crypto czar.
The administration has pledged to make the US a "crypto capital", aligning with Trump’s previous statements at Bitcoin 2024.
What’s Next: Potential policy changes include:
Regulatory Engagement: Agencies like the SEC, CFTC, and Treasury may be directed to work more closely with crypto firms.
SEC Crypto Cases: The SEC could review and pause non-fraud cases, with speculation that lawsuits like Ripple’s may be dropped.
Bitcoin Reserve: The U.S. may hold seized digital assets instead of liquidating them, with $20.3B in seized crypto currently held.
Crypto De-Banking & Banking Rules: Trump may end crypto de-banking and repeal SAB 121, which classifies crypto holdings as liabilities.
Bitcoin Treasury Proposal: A proposed bill suggests the U.S. Treasury should acquire 1M BTC ($100B+) as an inflation hedge.
Why it Matters: Policies like pausing SEC actions, ending crypto de-banking, and creating a Bitcoin reserve could restore confidence, attract investment, and drive industry growth.
Our Take: While easing restrictions could fuel crypto adoption, success hinges on execution, legal challenges, and bipartisan support.
GLOBAL LEGAL ROUNDUP
America:
🇺🇲 Solana ETFs may take until 2026.
🇺🇲 Wyoming proposes bill for Strategic Bitcoin Reserve.
🇺🇲 Bitcoin strategic reserve bill introduced in Oklahoma.
🇺🇲 SEC files opening brief in its appeal against Ripple over XRP.
🇺🇲 SEC charges Digital Currency Group for misleading investors.
🇺🇲 CFTC mulling probe of Crypto.com over Super Bowl contracts.
🇺🇲 Robinhood to pay $45M in civil penalties to settle SEC charges.
🇺🇲 Judge orders BitMEX to pay $100M fine over US banking law violations.
🇺🇲 Senator Lummis claims FDIC destroyed Operation Chokepoint 2.0 docs.
🇺🇲 Arkansas lawmakers float bill to ban crypto mining near military facilities.
🇺🇲 Crypto developer sues US attorney general, wants software deemed legal.
🇺🇲 US consumer finance watchdog sued for treating digital wallets like banks.
🇺🇲 US Senate Banking Committee chair says crypto framework will be a priority.
Europe:
APAC:
🇰🇷 Upbit receives suspension notice in South Korea.
🇰🇷 South Korea postpones decision on corporate crypto investments.
🇰🇷 South Korea reports first crypto ‘pump and dump’ case under new law.
🇲🇾 Malaysia mulls crypto policy after talks with UAE and Binance founder CZ.
🇸🇬 Singapore blocks access to Polymarket over unlicensed gambling concerns.
CASE STUDY
What You Need to Know About EU’s DORA Rules
State of play: The Digital Operational Resilience Act (DORA) came into effect on Jan. 17, requiring crypto businesses in the EU to strengthen cybersecurity, risk management, and operational resilience.
DORA extends the MiCA framework, impacting all MiCA-licensed crypto firms and their third-party service providers:
Stricter cybersecurity requirements: Crypto businesses must enhance IT security, governance, and risk management.
Third-party oversight: Firms must maintain a register of third-party IT service providers to ensure compliance.
Broad industry effect: VASPs (crypto exchanges), asset issuers (e.g., USDC issuer Circle), and other service providers will be affected.
Challenges for smaller firms: Startups with limited capital may struggle to meet DORA’s compliance demands, potentially leading to industry consolidation.
Operational resilience focus: Companies like Gemini and MoonPay are adjusting policies to meet the new standards, while firms like Elwood Technologies are offering compliance solutions.
Our Take: While larger firms are well-positioned to comply, smaller startups may struggle, potentially leading to market consolidation.
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