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According to Cointelegraph, the United States is emulating El Salvador's approach to digital asset regulation, as highlighted by Michele Crivelli, founder of NexBridge, a firm specializing in real-world asset tokenization. Crivelli emphasized the significance of establishing an independent regulatory body for cryptocurrency oversight. He noted that the U.S. is making progress with the formation of the Working Group on Digital Asset Markets, a move reminiscent of El Salvador's 2021 initiative to create a legal framework for cryptocurrencies through its National Commission of Digital Assets.

Crivelli further explained that smaller nations, such as El Salvador, are likely to lead the charge in global digital asset adoption due to their lower stakes, eventually influencing larger countries like the United States as the shift towards a digital economy becomes inevitable. This perspective aligns with asset manager Anthony Pompliano's views, who in November pointed to El Salvador and Bhutan's gradual Bitcoin accumulation as evidence of an ongoing global race for Bitcoin.

In a related development, U.S. President Donald Trump has signed an executive order to establish the Working Group on Digital Asset Markets, underscoring the country's commitment to exploring digital asset regulation.

Meanwhile, El Salvador has repealed its Bitcoin legal tender law as part of a loan agreement with the International Monetary Fund (IMF) in January 2025. The IMF had pressured El Salvador to reverse its Bitcoin policies for several months before reaching an agreement. Despite the repeal, which required businesses to accept Bitcoin as payment, El Salvador continues to accumulate the cryptocurrency. Recently, the country acquired an additional 12 Bitcoin, valued at over $1.2 million at the time of purchase, bringing its total holdings to over 6,051 Bitcoin.

In another development, stablecoin issuer Tether announced its decision to relocate its headquarters to El Salvador, citing the country's favorable regulatory environment for digital assets.

According to Odaily, the legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple has reached a pivotal stage as the case moves to the Second Circuit Court of Appeals. The SEC has removed the civil lawsuit related to Ripple from its website, signaling a significant development in the ongoing dispute over the classification of XRP. However, a user on X, claiming to be a lawyer, noted that the removal from the SEC's website is not crucial, as the appeal remains active in the national PACER court system. The user mentioned that the latest record shows Ripple requesting an extension for filing briefs, with the case status still marked as 'ongoing,' though changes may occur soon.Ripple's legal team has officially requested to submit a response brief by April 16, 2025, as per documents filed by January 23, 2025. The SEC released its opening brief on January 15, 2025, aiming to overturn key aspects of a previous ruling, particularly concerning the sale of XRP to retail investors. The district court had previously determined that while XRP itself is not a security, Ripple's direct sales to institutional investors constituted securities transactions. Tokens sold through secondary trading platforms did not meet the securities criteria. The SEC now argues that retail investors expected profits based on Ripple's promotional activities.Ripple CEO Brad Garlinghouse commented on the appeal, stating, "Doing the same thing over and over again and expecting different results." Ripple's Chief Legal Officer Stuart Alderoty described the appeal as a "rehash of already failed arguments." The initial $125 million civil penalty against Ripple remains in effect, significantly lower than the SEC's original demand of $1 billion. The outcome of this appeal is anticipated to impact the regulatory framework for digital assets and their classification in the United States.