Launchy Regulatory Roundup #29 - Bitcoin Reserve, White House Summit, and Market Reactions

📢 Sponsor | 💡 Telegram | 📰 Past Editions

Good Morning.

Welcome to our 29th 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 industry has long danced on the edge of regulatory chaos, but recent developments suggest the music is changing—just not in unison. Meanwhile, DeFi, once hailed as the untouchable frontier of financial autonomy, is finding itself tangled in the same compliance webs it was meant to escape.

In Today's Edition:

• Headline: Bitcoin Reserve, White House Summit, and Market Reactions 🇺🇲 

• Global Legal Roundup: Crypto Tax, Broker Rule, and Stablecoin in EU 🌐 

• Case Study: DeFi on Compliance vs Decentralization 🔎 

You read and share. We listen and improve. Send us feedback at [email protected].

HEADLINE

Bitcoin Reserve, White House Summit, and Market Reactions

State of play: Donald Trump has taken a significant pro-crypto stance, marking a major shift in US policy. He signed an executive order establishing a Bitcoin Strategic Reserve, directing the gov to hold and manage 200K BTC seized through legal actions.

• Dubbed a "digital Fort Knox," this reserve aims to store Bitcoin long-term, while a separate crypto stockpile will hold non-Bitcoin digital assets.

• However, the administration clarified that no new purchases will be made, and any additional BTC acquisitions must be budget-neutral, meaning they won't use taxpayer funds.

Trump also hosted a White House Crypto Summit, where he met with executives from Coinbase, Ripple, Kraken, Gemini, Chainlink, and Robinhood. This was the first crypto-focused summit at the White House, setting a new tone for US digital asset policy.

• Trump vowed to end Operation Chokepoint 2.0, which previously restricted crypto banking access, and expressed support for stablecoin legislation, aiming to sign a bill by August 2025.

• His administration also reinforced Bitcoin's dominance by confirming that only BTC holdings would be part of the national reserve.

Despite the policy shift, the market reaction was mixed. Bitcoin fell 5-7%, with some institutional investors seeing the summit as a historic moment, while retail traders and Bitcoin maximalists were disappointed by the lack of direct BTC purchases.

• Bitcoin ETFs saw $370M in outflows, suggesting a sell-the-news event rather than an immediate bullish catalyst.

What’s Next: Analysts predict Bitcoin may drop to $70,000 before rebounding toward $100,000 later in 2025. Meanwhile, OCC has already lifted approval and control requirements for banks engaging in cryptocurrency activities in a new interpretive letter.

Why it Matters: While Trump’s moves create a more favourable regulatory environment, investors appear to have expected stronger action, leaving some uncertainty about Bitcoin’s short-term trajectory.

Our Take: While the Bitcoin Strategic Reserve legitimizes BTC as a state-held asset and ending Operation Chokepoint 2.0 could ease banking restrictions, the lack of direct purchases and reliance on seized assets dampened investor enthusiasm.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 Texas Senate passes Bitcoin strategic reserve bill.

• 🇺🇲 FDIC resists transparency on Operation Chokepoint 2.0.

• 🇺🇲 SEC agrees to drop lawsuit against Cumberland DRW, says firm.

• 🇺🇲 David Sacks pushes back against idea of crypto transaction tax.

• 🇺🇲 White House will support rescinding DeFi broker rule: David Sacks.

• 🇺🇲 US Senate passes resolution to kill ‘unworkable’ IRS DeFi broker rule.

• 🇺🇲 Sen. Warren requests financial disclosures from Trump’s crypto czar.

• 🇺🇲 US lawmaker reintroduces CBDC bill after Trump EO bans digital dollar.

• 🇺🇲 Michael Saylor pushes US gov’t to purchase up to 25% of Bitcoin supply.

• 🇺🇲 JPMorgan says XRP, SOL & ADA inclusion in US crypto reserve is 'difficult.'

• 🇺🇲 New GOP bill aims to end debanking of crypto companies, ‘risky’ industries.

• 🇦🇷 Argentine prosecutor aims to freeze assets in LIBRA memecoin fraud case.

Europe:

• 🇹🇷 Law firm to challenge Turkey’s ban on crypto payments.

• 🇪🇺 Binance to delist non-MiCA compliant stablecoins in Europe on March 31.

• 🇪🇺 ESMA says custody & transfers of non-MiCA-compliant stablecoins are not restricted.

Middle East & Africa:

• 🇦🇪 Dubai crypto regulator grants VASP license to RWA-friendly L1 blockchain.

APAC:

• 🇯🇵 Japan’s ruling party moves to slash crypto capital gains taxes to 20%.

CASE STUDY

DeFi on Compliance vs Decentralization

Credits to Artem Tolkachev & Cointelegraph for the original article.

State of play: DeFi was built on financial freedom and decentralization, but increasing compliance measures now threaten its core principles. While early risks centred on vulnerabilities and liquidity, today’s biggest challenge is over-compliance.

• Regulators are pushing AML and KYC measures, forcing DeFi platforms to comply or risk legal action.

• Many projects, particularly in regulated jurisdictions, are over-complying, leading to wallet contamination—where interacting with flagged addresses can result in unexpected blocks.

• Compliance is increasingly centralized and enforced by private firms, making it opaque and unchallengeable.

Another concern is pseudo-decentralization—projects labeled as DeFi but operating like centralized entities to avoid scrutiny. With DeFi teams seeking venture funding and legal protections, power is shifting away from users toward compliance-driven gatekeepers.

Our Take: Balancing compliance with decentralization is critical. Solutions like opt-in compliance, transparent on-chain governance, and “clean” liquidity pools could help.

• If DeFi continues down this path, it risks becoming a more restrictive version of CeFi—losing its core advantage of financial independence.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Jake Chervinsky’sthread on how to make the USA the crypto capital.

• Alex Thorn’s tweet on budget-neutral ways to add BTC to the reserve. 

• Paul Grewal’s thread on basic transparency into Operation Chokepoint 2.0.

If you enjoy reading this issue, please consider subscribing. It takes 1 minute of your time but it would mean the world to us 🙇

Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.