US cleared to sell $6.5B in bitcoin: Will BTC price crash?
The U.S. government is set to auction $6.5 billion worth of Bitcoin (BTC), part of its holdings of 198,000 BTC valued at $18.5 billion, seized from the Silk Road. The decision follows a December 30 court ruling, ending a lengthy legal battle over ownership.
Some analysts suggest the outgoing Biden administration might sell all its Bitcoin reserves before Donald Trump takes office, potentially to complicate Trump’s plans to include Bitcoin in U.S. strategic reserves. Fox Business contributor Jason Williams called this move a “blatant perversion” of government fiduciary duty, claiming it forces Trump to repurchase at higher prices.
Bitcoin’s price dropped 2.78% after the ruling, reflecting concerns about the auction’s potential impact. However, historical data suggests limited long-term price effects from U.S. government Bitcoin sales. Between March 2023 and January 2025, U.S. Bitcoin holdings decreased by 38,000 BTC, yet BTC prices surged 375% due to strong demand for Bitcoin ETFs and optimism about Trump’s pro-Bitcoin policies.
Glassnode co-founders emphasized that the Department of Justice (DOJ) manages sales through public auctions via the U.S. Marshals Service, rather than directly on cryptocurrency exchanges. This minimizes the risk of market disruption compared to direct sales.
The U.S. government has historically missed out on significant profits from early Bitcoin sales. Approximately 195,092 BTC, sold for $366.5 million, would be worth $18.25 billion today — a missed gain of $17.9 billion.
CryptoQuant CEO Ki Young Ju reassured investors, stating that the $6.5 billion sale could be absorbed by the market in about a week, cautioning against panic. Despite the risks, Bitcoin’s broader demand and institutional interest remain strong.
Source: Cointelegraph
Trump to launch first Senate crypto subcommittee
The Trump administration is preparing to establish the first Senate cryptocurrency subcommittee, chaired by pro-crypto Senator Cynthia Lummis of Wyoming. The subcommittee, modeled after the House Financial Services Committee’s crypto unit, will operate under the Senate Banking Committee led by Senator Tim Scott. This move marks a significant step in shaping U.S. crypto regulations, aligning with Trump’s pro-crypto stance.
The subcommittee aims to create clear, consistent rules for the crypto industry, focusing on consumer protection and fostering innovation. Senator Lummis, a well-known crypto advocate, is expected to balance regulatory accountability with technological advancement. Sheila Warren, CEO of the Crypto Council for Innovation, praised Lummis’s leadership as pivotal for crafting effective policies.
The initiative seeks to promote economic opportunities, financial inclusion, and technological progress. Senator Scott has emphasized crypto’s potential to democratize finance, reflecting growing support within the administration for blockchain technology.
The crypto industry has responded enthusiastically to Trump’s initiatives. High-profile firms, including Circle, Ripple, Kraken, and Robinhood, have made significant contributions to Trump’s inaugural fund, signaling alignment with the administration’s crypto-friendly agenda.
Senator Lummis’s role reflects her long-standing pro-crypto stance, including proposals for strategic Bitcoin reserves and shifting Federal Reserve assets toward Bitcoin. Trump has also shown interest in national Bitcoin reserves, though this would require congressional approval.
Despite these advancements, challenges remain. The outgoing administration’s plan to sell $6.7 billion worth of Bitcoin seized from the Silk Road could complicate Trump’s reserve plans. Additionally, Gary Gensler is set to step down as SEC Chair on inauguration day, with Paul Atkins expected to bring a crypto-friendly approach.
The establishment of the Senate crypto subcommittee, coupled with these developments, signals a transformative year ahead for the U.S. cryptocurrency landscape in 2025.
Source: Coinpaprika
Standard Chartered launches crypto services in Europe with MiCA license
Standard Chartered, one of the world’s largest banks, has launched cryptocurrency services in Europe after securing a digital asset license under the European Union’s Markets in Crypto-Assets (MiCA) framework. The bank has established a new entity in Luxembourg to serve as its regulatory gateway for offering digital asset custody services across the EU.
Initially, Standard Chartered’s crypto services will be limited to custody for Bitcoin (BTC) and Ether (ETH), with plans to expand to additional assets later in 2025. Waqar Chaudry, the bank’s head of digital assets, clarified that no trading services will be offered at this stage, as the focus remains on secure storage and protection of digital assets.
The bank’s custody services will leverage its own risk capital and balance sheet, making Standard Chartered the only global bank in this niche. Laurent Marochini, formerly with Société Générale, will lead the Luxembourg entity as CEO.
This launch is part of Standard Chartered’s broader strategy to expand its digital asset offerings globally. In 2024, the bank debuted crypto custody services in the United Arab Emirates, providing exposure to Bitcoin and Ether for institutional clients.
Margaret Harwood-Jones, the bank’s global head of financing, emphasized that the new EU services adhere to strict security and regulatory standards, signaling a major step forward in bridging traditional finance and digital assets.
Standard Chartered has been planning crypto services for years, including initial efforts to develop a crypto trading platform in 2021. The bank has also collaborated with industry leaders like Coinbase and Huobi to accelerate the adoption of best practices in crypto.
By leveraging the MiCA framework, Standard Chartered aims to solidify its position as a leader in institutional crypto custody services in Europe and beyond.
Source: Cointelegraph