Key policymakers, industry leaders, and blockchain innovators convened in Washington, D.C., for the Blockchain Association’s third annual Policy Summit. Held from 16 to 17 December 2024, the event explored the intersection of blockchain innovation, regulatory clarity, and national security, drawing prominent figures such as House Majority Whip Tom Emmer, Congressman Mike Flood, and Congressman Wiley Nickel.
The discussions centred on regulating stablecoins, securities laws, and oversight by agencies like the Securities and Exchange Commission (SEC). Participants emphasised the need for balanced regulation to foster innovation while ensuring national security. Congressman Mike Flood highlighted the importance of state and federal collaboration, expressing optimism about partnerships between the SEC and the Commodity Futures Trading Commission (CFTC).
President-elect Donald Trump addressed attendees via video, affirming his administration’s support for blockchain technology and its role in bolstering national security. Industry representatives, including decentralised projects like CESS, Filecoin, and Helium, showcased the potential of blockchain to safeguard sensitive information and enhance privacy. Calls for practical regulatory approaches echoed throughout the summit, reflecting the industry’s commitment to progress through cooperation with policymakers.
Despite the incoming administration of Donald Trump, the US shift towards renewable energy is expected to continue, according to Mitsubishi UFJ Financial Group’s (MUFG) Americas CEO, Kevin Cronin. While Trump’s policies may favour fossil fuels, Cronin emphasised that renewable energy projects, which take years to plan and build, remain integral to the bank’s strategy regardless of political changes. MUFG, Japan’s largest banking group, remains committed to financing these long-term projects.
The bank’s position has been bolstered by President Joe Biden’s Inflation Reduction Act, which supports infrastructure and renewable investments. However, the real growth opportunity now lies in the booming demand for energy from data centres, driven by AI. Data centre capacity is expected to double by 2030, making reliable energy — both renewable and fossil-based — critical for future expansion.
MUFG has maintained its lead in project finance for 14 consecutive years and is adapting to state-level variations in energy policy. Since selling its retail banking arm in 2022, MUFG has focused on wholesale banking and technology-related sectors, even hiring talent from the collapsed Silicon Valley Bank to strengthen its position. The US market remains a cornerstone of MUFG’s global profits, contributing nearly 30% of its earnings in the last fiscal year.
El Salvador has added $1 million worth of Bitcoin to its strategic reserve, purchasing 11 BTC shortly after securing a $1.4 billion financing deal with the International Monetary Fund (IMF). This latest acquisition brings the nation’s holdings to nearly 5,981 BTC, valued at around $580 million. The move diverges from its previous ‘one Bitcoin a day’ policy announced by President Nayib Bukele last year.
The IMF agreement, however, comes with stipulations that aim to limit the government’s involvement in cryptocurrency activities. El Salvador agreed to confine its Bitcoin transactions, make private sector acceptance voluntary, and ensure taxes can only be paid in US dollars. Additionally, the government plans to sell or phase out the Chivo crypto wallet, with private wallets expected to take over its role in the market.
Despite these restrictions, the National Bitcoin Office reaffirmed its commitment to Bitcoin as a core part of the country’s strategy, hinting at potential accelerated purchases in the future. Director Stacy Herbert assured citizens that Bitcoin would remain legal tender, even as the IMF deal awaits final approval. This marks the culmination of years of negotiations, underscoring the challenges posed by Bukele’s ambitious Bitcoin policies.
Spot Bitcoin ETFs in the US faced $680 million in outflows on 19 December, following Bitcoin’s fall below $96,000. This marks the end of a 15-day inflow streak that had brought over $6.7 billion into funds. Fidelity’s FBTC led the outflows, with Grayscale and ARK 21Shares also seeing significant withdrawals. However, WisdomTree’s BTCW recorded modest inflows, standing out as an exception on an otherwise difficult day for the market.
The broader cryptocurrency market struggled as the Federal Reserve announced a cautious stance on future rate cuts, despite implementing a 0.25% reduction. Bitcoin fell to $96,751, a 4.4% decline, whilst trading volumes in Bitcoin ETFs surged to $6.31 billion. The Fed’s hawkish tone, projecting only two additional cuts by 2025 alongside delayed inflation targets, has dampened investor sentiment.
Ethereum ETFs mirrored Bitcoin’s trend, recording $60 million in outflows. Grayscale’s ETHE led these withdrawals, although Fidelity and VanEck managed small inflows. Despite the day’s challenges, Ethereum ETFs still hold a positive net inflow of $2.4 billion. Ethereum’s price dropped 8.1%, landing at $3,378 as the market absorbed the Federal Reserve’s cautious outlook.
Democratic Senator Ed Markey and Republican Senator Rand Paul are urging President Joe Biden to extend the January 19 deadline for ByteDance, the China-based owner of TikTok, to sell the app’s US assets or face a nationwide ban. The Supreme Court is set to hear arguments on January 10 regarding ByteDance’s legal challenge, which claims the law mandating the sale violates First Amendment free speech rights. In their letter to Biden, the senators highlighted the potential consequences for free expression and the uncertain future of the law.
The controversial legislation, signed by Biden in April, was passed due to national security concerns. The Justice Department asserts that TikTok’s vast data on 170 million American users poses significant risks, including potential manipulation of content. TikTok, however, denies posing any threat to US security.
The debate has split lawmakers. Senate Minority Leader Mitch McConnell supports enforcing the deadline, while President-elect Donald Trump has softened his stance, expressing support for TikTok and suggesting he would review the situation. The deadline falls just a day before Trump is set to take office on January 20, adding to the uncertainty surrounding the app’s fate.
Worldcoin, co-founded by OpenAI CEO Sam Altman, has been instructed to delete all iris scan data collected during its operations. The Spanish Data Protection Agency (AEPD) confirmed the enforcement after collaborating with Bavaria’s data watchdog, which ruled the venture breached European Union privacy laws.
The project, designed to create a global identity system using biometric data, faced criticism across multiple countries. In March, Spain’s High Court upheld a temporary ban on the iris-scanning initiative, rejecting an appeal from Worldcoin’s owners.
Based in Bavaria, Germany, Worldcoin rebranded itself as ‘World’ and had aimed to reward participants with free cryptocurrency and digital IDs in exchange for biometric verification. Privacy advocates have voiced strong concerns over the storage and handling of sensitive data.
The directive marks a significant regulatory challenge for Worldcoin, reflecting the growing scrutiny of biometric technologies under Europe’s strict privacy standards. Compliance with the deletion order is now essential to align with the General Data Protection Regulation.
Geothermal energy is gaining momentum as Big Tech companies like Meta and Google turn to it to power their energy-hungry AI data centres. Startups such as Fervo Energy and Sage Geosystems are partnering with these firms to harness geothermal’s promise of carbon-free, reliable electricity. Unlike wind and solar, geothermal energy offers consistent power, though it faces challenges like high drilling costs and long approval timelines.
Oil and gas companies are also showing interest. Devon Energy and other mid-sized producers are investing in geothermal to meet their own energy needs. However, major oil players like Chevron and Exxon Mobil remain focused on natural gas, promoting it alongside carbon capture technology to reduce emissions.
Interest in geothermal is expanding, particularly in Texas, where abundant resources and streamlined regulations attract new projects. More than 60 geothermal startups have emerged in recent years, supported by improving investment conditions and bipartisan government initiatives like the CLEAN Act and HEATS Act. If these laws pass, they could further boost the sector by simplifying project approvals.
With geothermal’s competitive costs—averaging $64 per megawatt-hour—it may become a key part of a diverse energy mix. As AI-driven data centres grow, the demand for clean and consistent power is driving geothermal’s rise, offering a potential alternative to traditional fossil fuels.
During a freelancer meetup at Café Oz in Paris on 3 December, Scott Horlacher, a software engineer, found himself caught in a crypto scam. While discussing with two individuals who claimed to represent a new crypto exchange called Lainchain, Horlacher grew suspicious. The platform’s design and its request for users to input wallet seed phrases instead of standard security measures made Horlacher realise he was dealing with a scam.
After confronting the duo, they swiftly left the event. Horlacher, along with others, began to warn fellow attendees. A subsequent investigation by AMLBot, a blockchain forensics firm, revealed that Lainchain was a sophisticated phishing scam designed to steal personal and wallet information from users. The scam relied on fake identities and social engineering tactics to deceive victims.
Lainchain’s website appeared professional but was full of red flags, including the manipulation of wallet access and demands for seed phrases. The platform’s hosts were found to be connected to other fraudulent websites, and investigations showed their use of stolen identities to create false legitimacy. The scammers also exploited Telegram and other social media platforms to lure victims.
This case serves as a reminder of the growing threat of phishing scams in the crypto space. Users are urged to be cautious of any platform requesting private keys or seed phrases and to verify the legitimacy of any crypto-related website or service before engaging with it.
The US Department of Commerce has asked Nvidia to investigate how its AI chips ended up in China despite ongoing export restrictions, The Information reported. In response, Nvidia has called on major distributors like Super Micro and Dell to conduct customer inspections in Southeast Asia. Nvidia chips, embedded in server products, have allegedly been smuggled to Chinese entities through various schemes, including duplicating or altering serial numbers.
Super Micro and Dell stated they strictly enforce export regulations and will terminate relationships with partners who violate these controls. Super Micro also confirmed it investigates unauthorised exports and complies with all US export laws.
These developments come as the Biden administration intensifies its crackdown on chip sales to China. Despite the broadened restrictions on high-end AI chips in 2023, Chinese institutions reportedly acquired Nvidia chips through resellers. Earlier this month, the US further limited semiconductor exports to 140 additional companies, underscoring efforts to control the flow of advanced technology to China.
Ethereum’s price dropped sharply this week, falling to a key support level of $3,540, marking a 10% decline from its recent peak. The pullback comes in the wake of the Federal Reserve’s hawkish interest rate announcement, which also affected other cryptocurrencies like Bitcoin and Solana. The decline, however, does not change Ethereum’s strong fundamentals, as it continues to attract significant institutional interest, particularly through Ethereum Exchange-Traded Funds (ETFs), which have seen 18 consecutive days of inflows, totalling over $2.46 billion.
Despite the drop, Ethereum remains a dominant player in the blockchain space. The amount of staked ETH continues to rise, now surpassing 54.7 million tokens, with more than 206,000 unique stakers. This reflects long-term optimism from investors who are holding onto their positions. Ethereum’s Decentralized Finance (DeFi) ecosystem is also growing, with total value locked surpassing $73.7 billion, far ahead of competitors like Solana, Base, and Arbitrum.
The price retreat follows the Federal Reserve’s decision to cut its 2025 interest rate forecast, from four cuts to just two. This hawkish tone has had a cooling effect on cryptocurrencies and other risky assets, which typically perform better under a more dovish stance. Ethereum’s price chart shows a bearish double-top pattern, indicating potential further declines if the $3,526 support is broken. However, if Ethereum can break past the $4,090 resistance level, it may see a stronger recovery.
