By Kapil Rajyaguru
Illinois and Indiana Move to Establish Strategic Bitcoin Reserves.
Illinois and Indiana have introduced bills to establish a strategic Bitcoin reserve. They join a growing list of US states exploring Bitcoin as a financial asset.
While Illinois aims to create a Bitcoin reserve fund, Indiana’s bill differs slightly. It explores how blockchain technology can enhance state agency operations. In addition, the bill explores investments in Bitcoin exchange-traded funds (ETFs).
This move comes as Utah and Arizona advance legislation to invest public funds in digital assets. Furthermore, Texas Lieutenant Governor Dan Patrick has made the Bitcoin Reserve a top priority for 2025. Similar proposals from South Dakota and Kentucky may follow as state representatives prepare to introduce bills creating a strategic Bitcoin reserve.
El Salvador Rushes In New Bitcoin Law To Comply With IMF Deal.
El Salvador’s Congress has reportedly swiftly approved legislation to amend its Bitcoin laws to comply with a deal struck with the International Monetary Fund to adjust its exposure to crypto.
Just minutes after President Nayib Bukele sent the bill to the Legislative Assembly, Reuters reported on Jan. 29. El Salvador struck a $1.4 billion loan deal with the IMF in December, with the agency requiring Bukele’s government to scale back its involvement in Bitcoin and make BTC optional and voluntary for private sector merchants.
With 55 votes in favor and only two against, the reform passed. Previously, it was a legal requirement for businesses to accept Bitcoin as payment.
Tesla Reports $600mn Bitcoin Gain In Q4 Using New Accounting Rule.
Tesla reported a $600 million gain from its Bitcoin holdings in the fourth quarter of 2024 thanks to new accounting rules that allow companies to record the market value of the crypto on their books.
Tesla’s Q4 2024 results released on Jan. 29 show the company valued its Bitcoin stash at just over $1 billion, up from the $184 million it logged throughout previous quarters.
It marked a net gain of $589 million on its BTC holdings over the quarter, which has reached 9,720 BTC, according to Bitcoin Treasuries.
Overall, Tesla reported a GAAP income of $2.3 billion in the fourth quarter, boosted by the $600 million from its Bitcoin holdings.
Fed Chair Powell Says Banks Can Serve Crypto With Caution.
Jerome Powell, the Federal Reserve’s chief, has been explicit that U.S. banks can serve crypto customers, provided they know the risks and mitigate them. At a press conference on Wednesday, Powell said the Fed is not anti-innovation.
Indeed, banks can completely work with crypto clients as long as they make sure their operations are secure, he said. Powell also noted that because cryptocurrency is a relatively new asset class, it has more risks associated with it.
But he also stressed that banks should not reject legal crypto customers out of fear or unnecessary caution. His comments come as concerns over “debanking” are rising, including, and particularly, the practice of shutting out certain industries, crypto among them, from the financial system.
You need to login in order to Like
