Weekly Crypto Digest for Jan 20 – 26, 2025

This crypto week saw significant regulatory developments that are shaping the future of the industry. Alongside them, Bitcoin soared to a new all-time high of $109,588, the SEC’s approval of crypto custody for banks and Gary Gensler’s resignation as SEC Chair. Meanwhile, President Trump’s policies continue to influence the market, including a presidential pardon for Silk Road’s Ross Ulbricht and debates surrounding CBDC adoption in the U.S.

Read below for more about all the top 7 crypto news from January 20–26, 2025.

1. Bitcoin Hits All-Time High of $109,588 Before Volatility Sets In

Bitcoin reached a new all-time high of $109,588 on January 22. The rally was driven by increasing institutional demand and favorable regulatory developments, solidifying Bitcoin’s status as a “digital gold” hedge.

However, volatility struck shortly after, with Bitcoin briefly dropping to $100,000 before stabilizing around $104,980. Analysts are closely monitoring the market for its next potential resistance level at $120,000.

2. Trump Inauguration Spurs Market Reaction

Donald Trump’s inauguration as U.S. President on January 20 created ripples in the crypto market. Despite initial optimism, the lack of specific crypto-related announcements during the inauguration led to corrections in politically linked tokens.

The TRUMP meme token saw a sharp decline, falling by 58% to $29, while the MELANIA token dropped from $13 to $2.60. The market remains divided on the long-term sustainability of these politically branded tokens.

3. U.S. SEC Allows Banks to Hold Cryptocurrency

In a groundbreaking regulatory development, the U.S. Securities and Exchange Commission (SEC) announced that banks can now provide cryptocurrency custody services. This decision opens the door for broader institutional adoption of digital assets like Bitcoin and Ethereum.

The move is expected to encourage traditional financial institutions to integrate crypto into their offerings, making digital assets more accessible to mainstream investors.

4. Gary Gensler Resigns as SEC Chair Amid Industry Pressure

Gary Gensler, the controversial chair of the SEC, resigned this week following mounting criticism from the crypto community and lawmakers. His tenure was marked by aggressive enforcement actions that many argued stifled innovation in the U.S.

Crypto advocates hope that new leadership will usher in a more balanced regulatory approach, fostering innovation while ensuring investor protection.

5. Trump’s Treasury Nominee Opposes CBDCs

Scott Bessent, President Trump’s nominee for Treasury Secretary, stated during Senate hearings on January 16 that he opposes the creation of a Central Bank Digital Currency (CBDC) in the U.S.

Bessent echoed concerns about CBDCs being tools for governmental control, aligning with Trump’s stance. As global powers like China and the EU advance their CBDC programs, the U.S. appears to take a contrasting position, prioritizing financial privacy and private-sector innovation.

6. Silk Road Founder Ross Ulbricht Receives Presidential Pardon

Ross William Ulbricht, the founder of the darknet market website Silk Road

President Donald Trump issued a presidential pardon for Ross Ulbricht, the founder of the infamous Silk Road marketplace. Ulbricht had been serving a life sentence for charges including money laundering and drug trafficking.

The pardon reignited debates about the ethics of the case, with supporters arguing that Ulbricht’s punishment was excessive and critics warning about the precedent this sets for crypto-related crimes.

7. CLS Global Admits to Fake Trades in FBI’s AI Token Sting

The crypto market-maker CLS Global pleaded guilty to orchestrating fake trading activity for NexFundAI, an AI token created by the FBI to detect fraudulent practices. The firm admitted to manipulating the market to attract unsuspecting investors and agreed to pay a $428,059 fine, in addition to forfeiting assets held on Binance and KuCoin.

The case is part of a larger FBI investigation that uncovered manipulation across 60 cryptocurrencies, seizing over $25 million in crypto assets and dismantling multiple trading bots. CLS Global has been banned from participating in crypto transactions involving U.S.-based investors for three years.



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