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The European Union's Digital Operational Resilience Act (DORA) has come into effect, significantly impacting cryptocurrency businesses by expanding the scope of the Markets in Crypto-Assets Regulation (MiCA). DORA mandates that all financial entities, including virtual asset service providers (VASPs), must enhance their cybersecurity and risk management practices. This includes maintaining a detailed register of third-party IT service providers to ensure robust infrastructure and risk management. The regulation aims to bolster resilience against disruptions such as cyberattacks and IT failures, thereby protecting investors and maintaining market integrity. Companies like MoonPay and Gemini have already started adapting their operations to comply with DORA, focusing on updating policies, reviewing vendor relationships, and implementing comprehensive ICT risk management frameworks. The regulation not only affects VASPs but also extends to crypto asset issuers, potentially leading to a consolidation among service providers to meet the stringent security requirements set by DORA.
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The upcoming inauguration of President-elect Donald Trump on January 20, 2025, is set to be a significant event for the cryptocurrency industry, with numerous executives and tech moguls in attendance. Ripple Labs, having spent $45 million on political action committee Fairshake, which indirectly supported Trump's campaign, will have its CEO Brad Garlinghouse and chief legal officer Stuart Alderoty as official guests. Ripple also donated $5 million worth of XRP to Trump’s inaugural fund. Other crypto firms like Coinbase, Robinhood, Circle, and Kraken have also contributed to the inauguration fund, with Coinbase committing to support Trump's transition. The presence of tech giants like Mark Zuckerberg, Jeff Bezos, and Elon Musk underscores the event's importance. This gathering reflects the crypto industry's significant financial backing of Trump, potentially influencing future regulatory environments for cryptocurrencies.
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CoinDesk's coverage this week highlighted several key developments in the cryptocurrency sector as it anticipates a new presidency and a more crypto-friendly regulatory environment. Companies are increasingly adding bitcoin to their balance sheets, a trend spearheaded by MicroStrategy. Speculation about Trump's potential support for a national crypto reserve has led to a surge in interest in Solana's SOL, XRP, and Hedera's HBAR. Despite bitcoin's current price trough, experts believe this won't deter long-term institutional adoption. Regulatory challenges were also in focus, with Binance.US facing banking relationship issues due to SEC investigations, and Polymarket dealing with gambling law issues in various countries. Meanwhile, the crypto market is poised for increased M&A activity, with Ctrl Wallet up for sale, and expectations of a surge in crypto ETFs, particularly with Litecoin potentially following in bitcoin's footsteps. The Trump administration is also addressing crypto's "de-banking" issues, signaling a shift in regulatory attitudes.
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Bitcoin's price surged to new heights in 2025, reaching over $105,000 in USD and setting a record against the British pound, driven by optimism around a more crypto-friendly U.S. government under Donald Trump's upcoming presidency. The crypto market saw a broad rally, with bitcoin leading the CoinDesk 20 Index, although not all cryptocurrencies kept pace. Stocks related to crypto, like MicroStrategy and Coinbase, also saw significant gains, with bitcoin miners like MARA Holdings leading the charge. The market's turnaround from earlier fears of a downturn was bolstered by positive investor sentiment following the U.S. CPI inflation report and speculation on Trump's crypto policies. Spot bitcoin ETFs saw substantial inflows, with BlackRock's Ishares Bitcoin Trust ETF experiencing high trading volumes. The anticipation of Trump's inauguration and his potential executive actions to elevate digital assets to a national priority has traders and investors closely watching for any policy shifts that could further boost the crypto market.
