The U.S. Securities and Exchange Commission (SEC) has officially rescinded Staff Accounting Bulletin (SAB) 121, a controversial rule that required financial firms holding cryptocurrency for customers to classify those assets as liabilities on their balance sheets. The move, announced in a new bulletin on Jan. 23, has been celebrated by industry leaders and lawmakers as a step toward reducing regulatory hurdles for crypto adoption.
Background on SAB 121 and Crypto Enforcement
Introduced in March 2022, SAB 121 aimed to address the risks associated with holding digital assets by mandating that financial institutions classify customer-held crypto as liabilities. The rule also required firms to disclose specific risks associated with these holdings. While the SEC justified this measure as a necessary step to ensure transparency and protect consumers, it faced significant backlash from the crypto industry and lawmakers alike.
Critics argued that SAB 121 created unnecessary administrative burdens for banks and financial institutions, deterring them from offering crypto custody services. Representative Wiley Nickel pointed out that the rule could force American banks to forgo custody of crypto exchange-traded products (ETPs) at scale, potentially concentrating risk among non-bank entities. Similarly, Senator Cynthia Lummis labeled the rule “disastrous” for the banking industry and a hindrance to American innovation in digital assets.
The Decision to Rescind SAB 121
The SEC’s new bulletin overturning SAB 121 represents a significant policy shift under the leadership of SEC Commissioner Hester Peirce, a known advocate for crypto innovation. Peirce, who leads the agency’s crypto task force, expressed relief at the rule’s rescission, stating in a Jan. 23 X post, “Bye, bye SAB 121! It’s not been fun.”
This decision marks a notable departure from the more stringent regulatory approach championed by SEC Chair Gary Gensler, whose tenure has been characterized by heightened enforcement actions against the crypto industry. Gensler’s stance has drawn criticism for what many perceive as regulatory overreach, with some stakeholders arguing that such measures stifle growth in the nascent digital asset space.
Bipartisan Pushback Against SAB 121
The repeal of SAB 121 follows bipartisan efforts in Congress to overturn the rule. House Financial Services Committee Chair French Hill applauded the SEC’s decision, emphasizing that the rule was “misguided” and inconsistent with standard financial practices. “Holding reserves against the assets held in custody is NOT standard financial services practice,” Hill remarked.
Senator Lummis echoed this sentiment, celebrating the rule’s repeal as a victory for the banking and crypto industries. “I am THRILLED to see it repealed and get the SEC back on track to fulfilling its intended mission,” she stated.
Despite these efforts, a bill to repeal SAB 121 initially faced challenges. While it garnered bipartisan support in both the House and Senate, it was ultimately vetoed by former President Joe Biden in June 2023. The House’s subsequent attempt to override the veto fell 60 votes short.
Implications for the Crypto Industry
The cancellation of SAB 121 is expected to ease operational and regulatory challenges for financial firms looking to provide crypto custody services. By removing the requirement to classify customer-held crypto as liabilities, the decision could pave the way for broader institutional adoption of digital assets.
Chris J. Terry, chief architect at Bitseeker Consulting, highlighted the significance of this development: “This change will encourage more banks and financial institutions to enter the crypto space, enhancing competition and reducing concentration risks.”
The move also aligns with broader efforts to create a more favorable regulatory environment for digital assets in the United States. Industry leaders have long argued that clear and balanced regulations are critical to fostering innovation and maintaining the country’s competitive edge in the global crypto market.
Looking Ahead
As the SEC takes steps to recalibrate its approach to crypto regulation, the focus now shifts to the broader implications of this policy shift. The rescission of SAB 121 may signal a willingness to engage more constructively with the crypto industry, potentially paving the way for further regulatory reforms.
For now, stakeholders remain cautiously optimistic. While challenges persist, the repeal of SAB 121 marks a significant milestone in the ongoing effort to integrate digital assets into the traditional financial ecosystem. With regulators, lawmakers, and industry leaders working toward a common goal, the future of crypto in the United States looks increasingly promising.
On December 3, 2024, South Korean cryptocurrency exchanges, including Upbit and Bithumb, experienced significant service disruptions due to an unexpected declaration of martial law by President Yoon Suk Yeol. The declaration, made during a televised address, was in response to escalating political tensions, which triggered widespread panic in financial markets, including cryptocurrency trading platforms.
Background on South Korean Crypto Markets and the Kimchi Premium
South Korea has long been a key player in the global cryptocurrency market. The country’s tech-savvy population and strong digital infrastructure have made it one of the largest crypto trading hubs. A notable phenomenon in the South Korean crypto landscape is the “Kimchi Premium,” where cryptocurrency prices in South Korea often trade higher than global averages. This premium arises from high local demand, limited supply, and regulatory barriers preventing arbitrage.
However, the country’s crypto sector has also faced challenges, including regulatory scrutiny and concerns over market manipulation. The events of December 3 underscore the vulnerability of crypto exchanges to unexpected political and market disruptions.
Impact of Martial Law Declaration on Crypto Markets
The martial law declaration led to a temporary 32% drop in Bitcoin’s price in South Korea, as panic selling and heightened trading activity overwhelmed local exchanges. Upbit, South Korea’s largest cryptocurrency exchange, reported a surge from its usual 100,000 concurrent users to over 1.1 million. Similarly, Bithumb and Coinone experienced a dramatic increase in user activity, with each platform exceeding 500,000 concurrent users.
This unprecedented demand caused server outages and trading disruptions. Upbit’s services were down for 99 minutes, while Bithumb and Coinone experienced 62 and 40 minutes of downtime, respectively.
Largest Crypto Compensation in South Korea’s History
In response to investor losses caused by the downtime, Upbit has agreed to compensate affected users with 3.14 billion South Korean won ($2.1 million) across 596 cases. Bithumb will provide 377.5 million won ($262,000) in compensation for 124 cases. These payouts represent the largest compensation effort in South Korea’s cryptocurrency history.
Negotiations between the exchanges and affected investors are ongoing, and the final compensation amounts may increase. Notably, other exchanges like Coinone, Korbit, and Gopax have stated that they are not liable for investor compensation due to their shorter service disruptions.
Regulatory and Preventative Measures
South Korean financial authorities have resumed on-site inspections of cryptocurrency exchanges as of December 20, aiming to prevent similar incidents in the future. Exchanges are now expected to adopt measures such as server expansions, cloud migration, and improved emergency response plans (Business Continuity Plans or BCPs) to ensure platform stability during periods of high demand.
A spokesperson from the Financial Supervisory Service (FSS) emphasized the importance of these measures: “We are checking whether the exchanges properly comply with their implementation plans, such as expanding servers and improving internal processes. We also plan to check whether they are responding well to complaints, including whether compensation standards are well set.”
Looking Ahead: Strengthening South Korea’s Crypto Ecosystem
The recent events highlight the need for robust infrastructure and regulatory frameworks to support South Korea’s burgeoning crypto industry. While the compensation efforts by Upbit and Bithumb demonstrate a commitment to investor protection, the outages reveal gaps in the existing system that must be addressed.
South Korea’s proactive approach, including regulatory oversight and mandatory infrastructure improvements, could serve as a model for other countries facing similar challenges in the crypto sector. Additionally, these measures may help stabilize the local market, mitigate risks associated with the Kimchi Premium, and build investor confidence.
As South Korea continues to solidify its position as a global cryptocurrency hub, balancing innovation with regulatory safeguards will be key to ensuring the long-term success and stability of its crypto ecosystem.
US President Donald Trump has issued his first executive order targeting the cryptocurrency industry, fulfilling campaign promises to address crypto-related policies.
In a Jan. 23 televised address from the Oval Office, Trump appeared alongside his “AI and crypto czar,” David Sacks, who elaborated on the executive order’s goals.
Sacks explained that the order establishes an “internal working group to make America the world capital in crypto,” with himself appointed to lead the initiative.
The executive order prohibits “the establishment, issuance, circulation, and use” of a US central bank digital currency (CBDC). It also tasks the working group with exploring the creation of a national crypto stockpile and drafting a regulatory framework for stablecoins.
The proposed working group would include the US treasury secretary, attorney general, SEC and CFTC chairs, as well as members of Trump’s cabinet and other agency heads.
During the announcement, Trump remarked that Sacks would “make a lot of money” through the executive orders related to AI and cryptocurrency.
According to the order’s text, Trump officially revoked a March 2022 executive order from former President Joe Biden, which directed agencies to develop a regulatory framework for crypto.
Controversies Surrounding Trump’s Crypto Policies
The executive order fulfills Trump’s campaign promise to prevent the development of a CBDC. However, critics question the extent of presidential authority to enact such sweeping policies via executive order.
For instance, a Jan. 20 order revoking birthright citizenship under the 14th Amendment was quickly blocked by a federal judge as “blatantly unconstitutional.”
Trump has also pardoned Silk Road founder Ross Ulbricht, another campaign promise, but has yet to comment on his pledge to ensure all Bitcoin is “made in the USA.”
Following the initial surge from the “Trump pump” trade, Bitcoin’s price has stabilized between $100,000 and $110,000 since the inauguration of the newly elected U.S. president.
On Jan. 21, the crypto asset saw a 3.78% jump, but its price movement has since consolidated within this range over the last 24 hours.
With no clear directional momentum on the lower time frame (LTF), one analyst predicts that this sideways trend could persist for the rest of the month.
Will quantitative easing spark Bitcoin’s next rally?
Krillin, a professional crypto trader, suggested that Bitcoin might continue its consolidation until after the Federal Open Market Committee (FOMC) meeting on Jan. 28–29.
He stated, “Assuming no BoJ scam, we likely chop between 100k and 110k till FOMC end of month.”
The analyst also hinted at a potential dip, given that interest rate cuts are not expected during the meeting.
According to the CME FedWatch tool, there is a 99.5% likelihood that interest rates will remain unchanged at 4.25%–4.5%.
However, dovish comments or hints at quantitative easing (QE) could drive risk assets higher.
As of Jan. 22, U.S. national debt reached $36.21 trillion, surpassing the $36.1 trillion ceiling.
Congress may raise the debt limit again, as it has done 78 times since 1960.
If QE becomes a reality, the Federal Reserve may inject liquidity into the market through large-scale asset purchases, a scenario that would likely benefit Bitcoin.
Tracking a reversal in the Fed’s balance sheet, which has declined from $9 trillion in April 2022 to $6.8 trillion as of Jan. 15, could provide further insight.
Bitcoin’s capital inflows have slowed
While the market anticipated aggressive bullish momentum after Bitcoin surpassed $100,000, data from Glassnode shows a decline in capital inflows.
BTC’s realized cap net position change fell from 12.5% to under 5% since November 2024.
Glassnode reported, “Net realized profit-taking peaked at $4.5B in Dec 2024, and is now down to $316.7M (-93%). This reduction in sell-side pressure suggests the market is resetting to a state of supply-demand balance.”
Bank of America CEO Brian Moynihan has suggested that U.S. banks could embrace cryptocurrency payments if the right regulations are established.
Speaking to CNBC at the World Economic Forum in Davos, Moynihan stated that if crypto payments become “a real thing” through proper regulation, the “banking system will come in hard on the transactional side of it.”
In such a case, cryptocurrency transactions would join traditional payment methods like credit cards, debit cards, and Apple Pay.
“We have hundreds of patents on blockchain already, we know how to enter the field,” Moynihan said.
BoA has been a leader in blockchain patents, focusing on areas such as settlement systems, digital wallets, and enterprise crypto accounts. However, as Cointelegraph has noted, it’s unclear whether these patents aim to foster innovation or hedge against potential risks.
Despite these efforts, U.S. crypto regulations remain slow to develop.
The lack of uniform licensing, restrictions on banking, and tax implications have hindered the adoption of cryptocurrency for payments.
Is Crypto Regulation on the Horizon?
Campaign promises suggest that blockchain and crypto adoption could gain momentum under President Donald Trump.
Although none of Trump’s 42 executive orders on his first day in office addressed crypto, pro-industry regulations are anticipated soon.
Leadership changes at federal agencies like the FDIC and the Office of the Comptroller of the Currency could pave the way for clearer crypto guidelines, according to S&P Global.
However, Robert Maddox, a partner at Bradley Arant Boult Cummings, believes structural changes in bank regulation are unlikely.
“There are more people interested in finding regulation and/or bank accounts for these cryptos than there are in reducing what people consider the regulatory structure in America,” Maddox told S&P Global.
Banks appear ready to act—if regulators provide the green light.
The U.S. debt ceiling is signaling a critical warning for Bitcoin, which could face a temporary correction to $70,000 before continuing its upward trend in the market cycle.
The Treasury is set to reach its $36 trillion debt ceiling the day after Donald Trump’s Jan. 20 inauguration as president.
Treasury Secretary Janet Yellen has announced a “debt issuance suspension period” starting on Jan. 21 and lasting until March 14, according to a letter published on Jan. 17.
This suspension period could lead to reduced global liquidity, which poses a challenge for Bitcoin despite it reaching a new all-time high of $109,000 on Jan. 20.
Short-Term Correction Expected
Raoul Pal, founder and CEO of Global Macro Investor, predicts Bitcoin will hit a “local top” above $110,000 in January before experiencing a correction below $70,000 by February.
Pal’s analysis, shared in a November post on X, highlights Bitcoin’s correlation with global liquidity, suggesting an interim peak in liquidity could trigger this pullback.
Impact of Debt Ceiling on Bitcoin
While some analysts remain cautious, others believe the debt ceiling’s impact on Bitcoin could vary.
Marcin Kazmierczak, COO of Redstone, noted that Bitcoin’s behavior during previous debt ceiling disputes has shown mixed correlations with traditional markets.
“The key factors to watch will be institutional behavior and whether this situation triggers broader market uncertainty,” Kazmierczak told Cointelegraph.
Alvin Kan, COO of Bitget Wallet, added that traditional market volatility could spill into crypto, potentially impacting Bitcoin.
“It could lead to a broader market risk-off environment,” Kan said, emphasizing the importance of investor behavior and global financial sentiment.
Long-Term Outlook
Global liquidity is expected to improve after March 14, which could bolster Bitcoin’s price later in 2025.
Jamie Coutts, chief crypto analyst at Real Vision, forecasts a peak in the global M2 money supply by Jan. 26, 2026, signaling a more favorable outlook for Bitcoin.
Bitcoin approached fresh monthly highs on Jan. 19 as market participants anticipated the return of price discovery.
BTC/USD all-time highs anticipated soon
Data from Cointelegraph Markets Pro and TradingView revealed that BTC/USD was edging closer to $105,500 on Bitstamp as the weekly close approached.
Up approximately 12% for January so far, Bitcoin has been gaining traction among bullish traders, especially with the inauguration of U.S. President-elect Donald Trump just a day away.
In tandem with Bitcoin’s momentum, Trump’s controversial cryptocurrency, OFFICIAL TRUMP (TRUMP), surged to a market cap exceeding $11 billion, securing its place among the top twenty largest cryptocurrencies.
Optimism for the crypto market as a whole has led to bold predictions from traders. “$BTC ATH incoming pretty soon imo,” remarked popular trader Pentoshi in a recent post on X.
Another prominent trader, Moataz Elsayed, also known as Eljaboom, described Bitcoin as entering the “belief phase” of its current market cycle. He stated, “$150K Bitcoin will happen this cycle,” and shared a comparative chart of Bitcoin’s current price action and its movement four years ago.
BTC support levels under watch
While bullish sentiment prevailed, some analysts emphasized the importance of maintaining key support levels.
Daan Crypto Trades highlighted this in his latest update: “$BTC Clean retest of the prior yearly high. Looks good for a move to the all-time high next week as long as that ~$102.7K level is held.”
As the crypto market remains optimistic, traders are now closely monitoring Bitcoin’s price movement for further confirmation of its upward trajectory. With strong momentum and favorable conditions, Bitcoin could be on track to achieve new all-time highs.
On Jan. 19, MicroStrategy co-founder Michael Saylor posted a Bitcoin chart signaling another BTC purchase, marking the 11th consecutive week of such updates.
“Things will be different tomorrow,” Saylor wrote on social media, likely referencing the inauguration of President-elect Donald Trump on Jan. 20.
The company recently acquired 2,530 BTC worth around $243 million on Jan. 13, bringing its total Bitcoin holdings to 450,000 BTC.
This purchase aligns with MicroStrategy’s 21/21 plan to raise $42 billion through equity and fixed-income securities for Bitcoin acquisitions.
The firm remains the largest corporate Bitcoin holder.
MicroStrategy’s Continued Bitcoin Accumulation
MicroStrategy’s December 2024 and January 2025 Bitcoin purchases were highlighted in a recent update, showing the company’s steady progress in its accumulation strategy.
Saylor’s long-term vision includes integrating Bitcoin into national economic policies.
He has previously suggested that a country issuing debt or printing money to convert fiat into Bitcoin could gain a significant edge globally.
Saylor also proposed that the United States Treasury convert its gold holdings to Bitcoin.
This move, he argued, would neutralize foreign adversaries’ gold reserves while bolstering America’s BTC reserves.
In December 2024, Saylor outlined a crypto regulatory framework designed to enhance the U.S. economy.
“A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy,” Saylor stated.
His plan aims to elevate digital asset markets to a $10 trillion valuation and grow digital asset capital markets to $280 trillion.
Support for a Bitcoin Strategic Reserve
Asset manager Anthony Pompliano echoed similar sentiments in November 2024, urging the U.S. to adopt a Bitcoin strategic reserve.
Pompliano suggested that federal, state, and local governments should prioritize acquiring Bitcoin to prevent being outpaced by other nations.
Both Saylor and Pompliano stress the urgency of embracing Bitcoin as a strategic asset.
Bitcoin could reach $130,000 this cycle, a target described as a “great result” by seasoned trader and DecenTrader co-founder Filbfilb.
In a recent interview with Cointelegraph, Filbfilb shared insights on Bitcoin’s trajectory amid a recovering market and incoming political changes in the U.S.
Trump Administration and Bitcoin Market Dynamics
After rebounding from two-month lows, Bitcoin is trading above $100,000 as of Jan. 17, according to Cointelegraph Markets Pro and TradingView data.
Filbfilb believes the Trump administration’s pro-Bitcoin stance could boost the market. However, potential trade wars could disrupt the broader risk-asset rally.
Despite these uncertainties, Filbfilb predicts Bitcoin will maintain its leadership in the crypto market, possibly achieving record dominance. He remains optimistic about Bitcoin’s ability to outperform equities if favorable policies are enacted quickly.
Short-Term Expectations and Market Reactions
In response to potential unmet expectations regarding executive orders, Filbfilb said, “I had anticipated a bumpy open to the year with a recovery in the second part of the month, which is what we have seen so far.”
While Bitcoin’s current price reflects cautious optimism, he noted, “If something like this is ruled out, I’m sure there would be a dip, but probably an overreaction and perhaps an opportunity.”
MicroStrategy and Bitcoin Correlation
Discussing MicroStrategy’s stock performance, Filbfilb dismissed claims of it being a “ponzi scheme” but acknowledged its risks.
“At present, the premium over net asset value (NAV) is around 2, similar to levels seen when Bitcoin consolidated around $60,000-$70,000,” he explained.
If Bitcoin surpasses $100,000, he expects MicroStrategy’s stock to surge, driven by increased interest in Bitcoin. “Short term, I’m not too concerned about a major retracement for MSTR, unless there is a big pullback in Bitcoin,” he added.
Long-term concerns about MicroStrategy’s debt servicing are noted but remain a topic for the future.
Binance has revised its cryptocurrency deposit and withdrawal procedures in Poland to adhere to the European Union’s Markets in Crypto-Assets Regulation (MiCA).
In a blog post dated Jan. 17, Binance stated, “Starting Jan. 20, users may need to provide more information when performing crypto deposits and withdrawals.”
The updated requirements apply to cryptocurrency deposits exceeding 1,000 euros ($1,030.80) and all withdrawals. For deposits, users must submit the sender’s full name, country, and the name of the crypto exchange. For withdrawals, similar details about the recipient are necessary.
Binance emphasized that these changes are limited to crypto transfers. However, the company cautioned that transactions might face delays or be returned if the required information is not provided.
Understanding MiCA and Its Implications
The MiCA framework, officially enacted on Dec. 30, 2024, establishes standardized regulations for cryptocurrencies across the EU. It aims to enhance consumer protection, address Anti-Money Laundering (AML) concerns, and regulate Crypto Asset Service Providers (CASPs).
One of its requirements mandates that crypto transfers exceeding 1,000 euros must include detailed sender and recipient information to ensure greater transparency. Stablecoin issuers must also maintain full reserves and secure operational licenses under MiCA.
Poland’s Crypto Regulatory Landscape
In Poland, cryptocurrency activities, including mining and trading, are legal. Crypto income is taxed at a flat rate of 19% for both individuals and businesses.
On Dec. 9, 2024, the Government Legislation Center introduced the fourth version of the Crypto Assets Market Act. This draft regulation requires Virtual Asset Service Providers (VASPs) to transition to the CASP licensing system by June 30, 2025, ahead of the EU’s MiCA transition deadline in July 2026.
Meanwhile, Sławomir Mentzen, a presidential candidate, has pledged to make Poland a “cryptocurrency haven” if elected. The first round of the election is set for May 18, 2025.