U.S. Legislative Developments
The Senate Banking Committee has advanced the GENIUS Act, a significant bill aiming to establish a regulatory framework for stablecoins. The bill passed with an 18-6 vote, including support from five Democrats. Key amendments require regulatory reviews of stablecoin issuers and prioritize customer claims in bankruptcy. Committee Chair Sen. Tim Scott emphasized the need to encourage innovation in the U.S. The bill's progress reflects ongoing differences between Republicans and Democrats on regulatory approaches.
Trump Administration's Crypto Initiatives
President Donald Trump's administration has shown increasing support for the cryptocurrency industry. Recent executive orders and decisions have favored the sector, including dropping investigations into major crypto companies and minimizing regulatory oversight on "meme coins." This shift aligns with Trump's campaign promises to position the U.S. as a "crypto capital."
Binance's Legal and Investment News
Representatives of President Trump's family have engaged in discussions about acquiring a financial stake in Binance.US, the American branch of the cryptocurrency exchange. Binance's founder, Changpeng Zhao, has been seeking a pardon from the Trump administration. In 2023, Zhao resigned as CEO and admitted to violating U.S. anti-money laundering regulations, culminating in a $4.3 billion settlement. The specifics of the potential deal and its connection to a pardon remain uncertain.
Additionally, Abu Dhabi's MGX has announced a $2 billion investment in Binance, marking the largest institutional investment in the cryptocurrency exchange. The minority stake will be paid in stablecoins, though the specific type was not disclosed. This move aims to integrate AI, blockchain technology, and finance, aligning with Abu Dhabi's goal to become a crypto innovation hub.
Market Movements
The crypto hedge fund Eltican Asset Management, co-founded by former Balyasny portfolio manager Mehdi-Laurent Akkar, achieved a 15.2% gain in February despite significant declines in the cryptocurrency market. This follows a 2.8% gain in January for the $130 million asset fund. The fund benefited from a strategic approach that outperformed the market, where Bitcoin and Ether lost over 20% and 30% respectively, contributing to a $600 billion reduction in digital assets market capitalization.
