Month: February 2025

In a major development within the cryptocurrency industry, Ripple CEO Brad Garlinghouse has joined the newly-formed Crypto Advisory Council, a body that is expected to play a pivotal role in shaping the future of crypto regulations over the next few years. The council, which was established by former President Donald Trump, has quickly become one of the most coveted positions in Washington, D.C.

The Crypto Advisory Council was officially launched through an executive order by Donald Trump during his first week back in office. Its mission is clear: foster blockchain and digital asset innovation while removing the regulatory hurdles that have hindered the industry’s growth, especially under the Biden administration. One of the council’s critical responsibilities is determining whether cryptocurrencies should be classified as securities or commodities, a decision that will directly impact how the industry is regulated.

This step is crucial as it could decide whether the Securities and Exchange Commission (S.E.C.) or the Commodity Futures Trading Commission (CFTC) will oversee cryptocurrency regulations, significantly influencing the industry’s future in the United States.

Brad Garlinghouse: A Key Player in Crypto Regulation

Garlinghouse, who recently met with Trump at his Mar-a-Lago estate, is just one of the many prominent figures vying for a spot on the 24-member council. As the CEO of Ripple, Garlinghouse brings a wealth of experience to the table, especially considering Ripple’s ongoing legal battle with the SEC. His potential role on the council signals his growing influence within the crypto space.

Industry insiders suggest that the competition for council positions is fierce, with executives, investors, and influencers all positioning themselves for a coveted spot. One insider even said, “Everybody and their mother is begging to be on this council.” With no formal application process, candidates are leveraging their networks and reputations to secure their place.

Brad Garlinghouse @Ripple CEO is on the shortlist for The US Crypto Advisory Council 🇺🇸

Reports @LJMoynihan from the @nypost pic.twitter.com/HrUeCPISu3

— 𝗕𝗮𝗻𝗸XRP (@BankXRP) February 5, 2025

Other High-Profile Candidates for the Council

Garlinghouse is not alone in his pursuit of a seat at the table. Other notable names being considered include:

• Marco Santori, former general counsel of Kraken
• Frank Chaparro, crypto podcast host
• Jeremy Allaire, co-founder and CEO of Circle
• Brian Armstrong, CEO of Coinbase
• Kris Marszalek, CEO of Crypto.com

Additionally, influential figures such as Trump’s key campaign donors are reportedly advocating for their roles on the council, adding an extra layer of intensity to the competition.

The Road Ahead for the Crypto Industry

As the competition heats up, Trump’s aides are said to prioritize industry experience and expertise over political loyalty when selecting candidates. This marks a shift in how the council will be formed and could lead to a more informed decision-making process for the crypto industry. The outcome of this selection will undoubtedly influence the trajectory of cryptocurrency regulation in the U.S.

With so many high-profile figures competing for a place, the final makeup of the Crypto Advisory Council is still uncertain. As Bitcoin investor Aubrey Strobel aptly pointed out, “There are lots of people gunning for a spot.” It will be fascinating to watch who ultimately secures a seat on this powerful council and how they shape the future of cryptocurrency regulation.

Berachain, the promising blockchain project, has seen its token fall by over 27%, currently trading around $5.99 as of Saturday. This drop comes right after its debut listing on Crypto.com, raising concerns about the token’s market performance and future potential.

Despite securing a spot on several high-profile centralized exchanges, such as MEXC, Upbit, and Bithumb, Berachain’s price continues to struggle. These listings were expected to bring significant exposure and help boost the token’s value. However, the token’s significant drop suggests that the market’s confidence in Berachain may still be uncertain.

Berachain officially launched on February 6 after over a year of anticipation. The project has made waves in the blockchain space, raising over $100 million in funding during this time. Founded by the pseudonymous individual known as “Smokey,” Berachain seeks to differentiate itself with its unique Proof of Liquidity (PoL) consensus model, which stands apart from traditional proof-of-stake (PoS) systems.

The Bong Bears NFT Collection

The origins of Berachain trace back to the Bong Bears NFT collection, launched on August 26, 2021, on the Ethereum blockchain. This collection consists of 100 unique, cannabis-themed bear NFTs and serves as the foundation for the Berachain ecosystem. The success of this NFT launch helped fuel Berachain’s ambitious blockchain project, but its transition from NFTs to blockchain development has raised some concerns.

While Berachain has received attention for its innovative approach, some industry leaders are critical of its early funding strategy. Critics argue that selling NFTs before transitioning to blockchain development could indicate a lack of long-term strategic planning. This approach has raised red flags for some investors and industry experts, especially when paired with the recent price decline.

Future Outlook

Although Berachain continues to receive attention from major exchanges, its price drop has left many questioning the sustainability of its liquidity-driven model. With its Proof of Liquidity consensus model at the core of its vision, the project’s future performance hinges on whether it can maintain confidence from investors and the broader crypto community.

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards recognizing the Solana blockchain as a legitimate investment option, acknowledging the application for a Solana exchange-traded fund (ETF). This marks a shift in the SEC’s stance on altcoin funds, especially Solana, whose token SOL has faced regulatory scrutiny in the past. Here’s what this move means for the crypto landscape.

On Thursday, the SEC issued a notice acknowledging the filing of the Grayscale Solana Trust, a proposal submitted by NYSE Arca. This acknowledgment marks the beginning of a review process under the SEC’s Form 19b-4, which requires the agency to approve or deny the application by October 11.

What makes this acknowledgment particularly significant is the SEC’s previous stance on Solana. Under the prior administration, Solana’s SOL token was labeled an “unregistered security” in enforcement lawsuits. However, the SEC’s current approach, under Chairman Gary Gensler, has shown a marked shift, signaling potential approval for crypto-based ETFs beyond Bitcoin and Ethereum.

A Positive Sign for Crypto Market and Solana

Bloomberg senior ETF analyst Eric Balchunas pointed out that just six weeks ago, the SEC had instructed the CBOE exchange to withdraw its Solana ETF application. This recent acknowledgment of the Solana ETF filing is seen as a positive sign, suggesting that leadership changes within the SEC may be influencing its more favorable outlook on crypto.

Moreover, James Seyffart, another ETF analyst at Bloomberg, believes the decision could signal positive outcomes for other exchanges under SEC lawsuits, where Solana has been previously labeled a security.

Notable bc this is the first time an ETF filing tracking a coin that had prev been called a "security" has been acknowledged by SEC. Only six weeks ago the Genz-led SEC told CBOE to withdrawal their Solana 19b-4. So we are now in new territory, albeit just a baby step, but… https://t.co/XiRyA8g3R7

— Eric Balchunas (@EricBalchunas) February 6, 2025

Solana’s Rise in the Crypto Market: A Historic ETF Approval?

Solana is now poised to become the first non-Bitcoin, non-Ethereum token to secure an ETF approval, a milestone that could transform the market. Litecoin, a Bitcoin fork, is also in contention but Solana’s recognition could be a historic breakthrough.

Matthew Nay, a research analyst at Messari, called the potential Solana ETF approval “historic,” noting that it marks a dramatic shift from the Solana token’s fall from grace following the FTX collapse. Nay explained that Solana has gone from being a disregarded asset to one that’s highly sought after by Wall Street.

Recent performance data backs up Solana’s growing appeal. According to Messari’s figures, Solana’s real economic value (REV)—which measures throughput—surged by 318% in Q4 2024, reaching $819 billion. This represents a staggering 5,649% year-over-year increase.

Additionally, the circulating market capitalization of Solana grew by 27% during the fourth quarter of 2024, reaching $90.7 billion. These numbers highlight Solana’s growing strength in the blockchain ecosystem.

A Flood of Solana ETF Proposals Awaiting SEC Approval

Currently, five separate Solana ETF proposals are awaiting action by the SEC, including applications from prominent names such as Bitwise, Canary, 21Shares, Van Eck, and Grayscale. Additionally, there are two “basket” ETFs that include Solana as part of their portfolio, including Bitwise’s 10 Crypto Index ETF and the Grayscale Digital Large Cap ETF.

Now that the SEC has acknowledged Grayscale’s Form 19b-4 filing, a detailed five-step process will follow before a final approval or rejection is made:

1. 15-Day Publication: The SEC must publish the proposed rule change in the Federal Register, opening a public comment period lasting 21 days.
2. 45-Day Review: The SEC has 45 days to approve, disapprove, or extend the review period. If no action is taken, the application is automatically approved.
3. Second 45-Day Review: A second 45-day review period can be requested.
4. 90-Day Review: A 90-day review period is available if needed, potentially extending the total process to 240 days.
5. Final Decision: After the review periods, the SEC will make its final decision. Applicants have the option to withdraw and resubmit, restarting the process. In case of disapproval, the decision can be challenged in court.

Solana’s Path to an ETF Could Be Just the Beginning

The SEC’s acknowledgment of the Solana ETF filing represents a pivotal moment in the broader crypto landscape, suggesting that altcoins may finally have a pathway to ETF approval. With the growing demand for Solana and its impressive market growth, this could be a crucial turning point, not just for Solana but for the entire cryptocurrency ecosystem.

The memecoin market, which surged to unprecedented heights recently, has experienced a dramatic decline, shedding nearly $50 billion in market valuation since the launch of President Donald Trump’s official memecoin, TRUMP. Here’s an analysis of what’s happening in the memecoin market and what could be behind the significant losses.

TRUMP Memecoin Leads to Market Dip

The memecoin market experienced a significant rise in early January, reaching a total market capitalization of $117 billion following the launch of TRUMP on January 17. However, within just three weeks, the total market cap has dropped by over 40%, now sitting at around $70 billion. This represents a massive loss of $47 billion, with the memecoin market falling $56 billion from its all-time high in December.

Major Memecoins Suffer Significant Losses

Several of the top memecoins have taken a hit during this downturn. Dogecoin (DOGE), the largest memecoin by market cap, has dropped 25% over the past week. Other popular memecoins such as PEPE, WIF, and FARTCOIN have suffered even larger declines:

• PEPE: Down 35%
• WIF: Down 42%
• FARTCOIN: Down 55%

The downturn was further exacerbated by a controversy surrounding the WIF token. The memecoin’s official page had announced that the DogWifHat would be showcased on the Las Vegas Sphere after raising nearly $700,000 from the community in March 2024. However, less than a week later, it was revealed that Vegas Sphere officials had denied any collaboration, accusing the WIF team of misleading the community. Despite the backlash, the announcement remains on the WIF token’s page, claiming that the dates will be revealed “as soon as we are allowed to share.”

Are Memecoins Really Dead? Experts Still Hold Optimistic Views

While many in the market are calling the end of the memecoin trend, some key figures, such as Murad Mahmudov, remain bullish on the future of memecoins. Mahmudov believes that certain memecoins still have massive potential and could reach tens of billions in valuation over the next few months. He advises focusing on coins that are “hustling, vibing, bullposting, and diamondhanding”—regardless of price fluctuations.

Pay Attention to Coins that are Hustling, Vibing, Bullposting, Showing up and Diamondhanding *regardless of Price*

Those are the ones that will go to Tens of Billions in a few months.

— Murad 💹🧲 (@MustStopMurad) February 5, 2025

The TRUMP and MELANIA Memecoin Launches: A Liquidity Shift?

The sudden drop in the memecoin market could be attributed to a massive liquidity shift, as traders quickly dumped their holdings in favor of the TRUMP token. The launch of the TRUMP memecoin might have triggered a market frenzy, only for its value to plummet shortly thereafter, leaving many traders with heavy losses.

Additionally, the launch of the MELANIA token, just 48 hours after TRUMP, further drained liquidity. On its opening day, MELANIA saw a rapid rise to a $13 billion valuation, which directly impacted TRUMP’s value. As a result, TRUMP experienced a 50% drop, and both tokens have continued to decline since their initial surges. TRUMP is currently valued at $17 billion, while MELANIA stands at $1.3 billion.

Is the Memecoin Boom Over?

While the memecoin market has seen a significant downturn, it is important to recognize that this space is highly volatile. Although the TRUMP and MELANIA memecoin launches triggered large shifts in market sentiment and liquidity, some investors remain optimistic. Only time will tell if the memecoin market is truly dead or if it’s simply experiencing a temporary correction before another wave of growth.