#CryptoMarketWatch Here are the latest developments in the cryptocurrency market:
U.S. Establishes Strategic Bitcoin Reserve
On March 7, 2025, President Donald Trump signed an executive order to create a strategic bitcoin reserve, utilizing bitcoin forfeited in criminal or civil cases. This reserve will include five digital assets: bitcoin, ether, XRP, solana, and cardano. The initiative aims to position the U.S. as a leader in the cryptocurrency space, with the reserve serving as a "digital Fort Knox." Market values experienced a brief spike following the announcement.
Rise in Political Spending by Cryptocurrency Companies
A report from the Center for Political Accountability highlights significant risks to American politics due to increased political spending by cryptocurrency companies. Over $134 million was spent by crypto companies in the 2024 election, influencing political outcomes and regulatory environments. Concerns include the dropping of significant SEC lawsuits against companies like Kraken and Coinbase and the establishment of the U.S. Crypto Reserve. The report draws parallels to Argentina's crypto collapse under President Javier Milei, emphasizing the dangers of unchecked crypto influence in politics.
Tether's CEO on Enhanced Transparency and Cooperation
Paolo Ardoino, CEO of Tether, discussed the company's evolution from being under regulatory scrutiny to becoming part of the financial establishment. Tether has improved transparency by publishing quarterly statements and expanding cooperation with authorities. The company holds significant U.S. government debt and plays a role in promoting dollar stability globally, especially in countries with unstable currencies. Ardoino emphasized Tether's active collaboration with over 200 agencies worldwide to combat illicit activities.
Growth of Cryptocurrency ETFs
State Street forecasts that cryptocurrency exchange-traded funds (ETFs) will surpass the combined assets of precious metal ETFs in North America by the end of the year. This would position crypto ETFs as the third-largest asset class in the $15 trillion ETF industry, trailing only equities and bonds. The rapid growth in demand for crypto ETFs has been surprising, with significant interest from financial advisers. Spot cryptocurrency ETFs, approved in the U.S. last year, have reached $136 billion in assets.