Appold Market Watch - Week ending 7 March 2025
Market Update & Industry News - Week ending 7 March 2025
🔷 US President Trump signed an executive order creating a Strategic Bitcoin Reserve using seized digital assets and a Digital Asset Stockpile for Ethereum, XRP, Solana, and Cardano. The funds will be stocked with assets forfeited to the federal government as part of criminal or civil proceedings. The day after the announcement, the president hosted the first-ever "Crypto Summit" with industry leaders in the White House.
Appold view: The Strategic Bitcoin Reserve is a centralised repository for seized digital assets rather than a sovereign wealth-style investment fund. While positioned as a key industry engagement, the White House Crypto Summit appeared more symbolic than substantive. Market reaction was muted, with Bitcoin showing little response.
🔷 Russian digital asset exchange Garantex has suspended operations after stablecoin issuer Tether.io blocked digital wallets on its platform holding over 2.5 billion roubles ($28 million). This action follows the EU’s recent sanctions against Garantex for alleged associations with sanctioned Russian banks.
Appold view: Considering the geopolitical context, it’s surprising that this has taken so long to occur.
🔷 Global digital asset exchange Kraken Digital Asset Exchange reported that the U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit. The lawsuit alleged that Kraken operated as an unregistered securities exchange. The dismissal does not involve an admission of wrongdoing, penalties, or changes to Kraken’s business operations.
Appold view: A clear signal of the significant shift in regulatory posture. This outcome reinforces the ongoing debate over the classification of digital asset exchanges and regulatory clarity in the U.S.
🔷 A UK Court issued a four-year prison sentence in the country’s first criminal conviction for operating unregistered digital asset ATMs. The case involved transactions totalling £2.5 million between December 2021 and March 2022. The operator continued operations despite regulatory approval being denied and was also convicted of forgery and possession of criminal property.
Appold view: This individual broke several laws and was charged with operating a network of crypto ATMs without FCA permission. Other charges included possessing criminal property, using false identity documents, and forgery.
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