Senate Back in Session, Crypto Eyes Banking Markup & Bitcoin Rallies on Venezuela Tensions
Crypto policy kicks back into gear as Congress returns to the Hill
Welcome to the Monday edition of the Crypto In America newsletter!
What you’ll read: Lawmakers return to the Hill and the crypto industry has its eyes on a January 15 market structure markup, Bitcoin rallies on rumors of a Venezuelan “shadow reserve,” and what we’re watching this week.
The Senate is back today for the second legislative session of the 119th Congress, with the House returning tomorrow.
For the crypto industry, that means all eyes are on the Senate Banking Committee’s impending market structure markup, currently slated to take place next Thursday, January 15th, with an official announcement expected later this week. The Senate Agriculture Committee is expected to schedule its own markup this month, though exact timing remains uncertain, and questions linger over whether the committee has addressed the glaring gaps in the discussion draft released in November.
For Senate Banking, it’s still an open question whether lawmakers and staff found enough common ground over the holiday recess on thorny issues like stablecoin yield and ethics provisions to support a bipartisan markup where both Republicans and Democrats feel comfortable voting yes, or whether the bill moves forward along party lines.
One thing is clear: Democratic support at the committee level will be key, and the more yes votes, the easier the path once the Banking and Agriculture Committee texts are merged. A thin showing could mean a longer, bumpier route through the full Senate. Bipartisan negotiations are expected to continue through this week.
Meanwhile, the industry is watching for the SEC to roll out an innovation exemption that would let crypto firms experiment with tokenization and other business models without fear of running afoul of securities laws. SEC Chairman Paul Atkins said the agency is targeting January for the rollout.
Over at the CFTC, newly sworn-in Chair Mike Selig made his first staff appointment, naming Amir Zaidi as his Chief of Staff. A nine-year veteran of the agency, Zaidi previously served as director of the Division of Market Oversight, where he oversaw the launch of CFTC-regulated bitcoin futures contracts during President Trump’s first term.
Bitcoin Rallies on Venezuela Tensions
The world’s largest digital currency surpassed $94,000 this afternoon, hitting an almost four-week high and breaking through its 50-day moving average for the first time since the October 10 crypto market crash.
Ether, Solana, XRP, and Dogecoin are also moving higher. The gains come as U.S. stocks, gold, and silver climbed sharply on Monday following the arrest of Venezuelan President Nicolás Maduro over the weekend.
The arrest has sparked rumors of a possible Venezuelan “shadow” Bitcoin reserve, a secret $60 billion stash the government is said to have accumulated by converting gold proceeds and oil settlements into Bitcoin. On paper, Venezuela officially holds just 240 BTC, according to BitcoinTreasuries, but if the secret stash exists, it would make the country the second-largest holder of Bitcoin. Analysts caution there’s no proof the government actually has such a reserve, so the rumors, likely helping fuel the rally, should be taken with a grain of salt.
Meanwhile, crypto stocks like Coinbase, Robinhood, Bullish, and Gemini are rallying, while U.S.-listed Bitcoin ETFs saw $471 million in inflows on Friday, the most since mid-November.
Bloomberg senior ETF analyst Eric Balchunas noted that one of the best-performing ETFs to start the year is a 2x leveraged Dogecoin ETF.
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👀 What To Watch This Week
Congress returns to work and the December jobs report is scheduled for Friday.
Monday
The Senate returns to the Hill.
Tuesday
The House returns to the Hill.
Wednesday
The Ethereum blockchain is rolling out a small upgrade as part of its Fusaka roadmap, a major protocol update.
Thursday
3:00 PM: The Federal Reserve releases latest consumer credit numbers.
Friday
8:30 AM: The Bureau of Labor Statistics is out with the December jobs report, including the latest unemployment rate.
10:00 AM: University of Michigan releases monthly consumer sentiment survey.
Remember, new editions of the Crypto In America newsletter drop every Monday, Wednesday and Friday at 7AM EST.
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Turns out attack on Venezuela is one of USA’s biggest setbacks!
sounds ironic?
Well check this out!
https://substack.com/@geopoliticsinplainsight/note/c-195740839?r=72pxma&utm_source=notes-share-action&utm_medium=web