lawmaker – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Sat, 23 Aug 2025 23:31:39 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 lawmaker – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Philippines lawmaker introduces legislation to acquire 10,000 Bitcoin for national security reserve https://earlybirdsinvest.com/philippines-lawmaker-introduces-legislation-to-acquire-10000-bitcoin-for-national-security-reserve/ https://earlybirdsinvest.com/philippines-lawmaker-introduces-legislation-to-acquire-10000-bitcoin-for-national-security-reserve/#respond Sat, 23 Aug 2025 23:31:38 +0000 https://earlybirdsinvest.com/philippines-lawmaker-introduces-legislation-to-acquire-10000-bitcoin-for-national-security-reserve/

A Philippine lawmaker has introduced a measure that would require the central bank to build a strategic Bitcoin reserve, marking one of the most ambitious crypto policy proposals in Southeast Asia.

Representative Migz Villafuerte filed the “Strategic Bitcoin Reserve Act” in June, calling for the country’s central bank, Bangko Sentral ng Pilipinas (BSP), to purchase 2,000 Bitcoin (BTC) annually over five years.

At current prices, the plan would cost more than $1.1 billion and establish a 10,000 BTC reserve locked in trust for at least two decades.

Bid for financial security

The proposal outlines a “Bitcoin Purchase Program” that would make the BSP a long-term holder of the digital asset. The reserve would be barred from being sold or transferred except in cases of retiring government debt.

Villafuerte described Bitcoin as a modern strategic asset that could diversify the nation’s balance sheet and enhance financial security, likening it to digital gold.

The measure would also require the central bank to introduce a proof-of-reserves system, with quarterly public disclosures detailing holdings, transactions, and custody arrangements.

Global context

If enacted, the Philippines could surpass El Salvador’s 6,276 Bitcoin holdings and rival Bhutan, which owns about 10,565 coins.

El Salvador has led global adoption since declaring Bitcoin legal tender in 2021, while Bhutan’s sovereign investment arm has quietly accumulated large reserves.

At current levels near $116,850 per coin, the Philippines’ proposed reserve would represent a substantial sovereign commitment to Bitcoin, positioning the country among the world’s largest state-level holders.

The bill faces congressional debate in the months ahead as policymakers weigh the risks and potential benefits of tying a portion of the nation’s financial future to the volatile crypto market.

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US Lawmaker sounds alarm on GENIUS bill, says it's a CBDC Trojan Horse https://earlybirdsinvest.com/us-lawmaker-sounds-alarm-on-genius-bill-says-its-a-cbdc-trojan-horse/ https://earlybirdsinvest.com/us-lawmaker-sounds-alarm-on-genius-bill-says-its-a-cbdc-trojan-horse/#respond Sat, 19 Jul 2025 22:24:26 +0000 https://earlybirdsinvest.com/us-lawmaker-sounds-alarm-on-genius-bill-says-its-a-cbdc-trojan-horse/

United States congresswoman Marjorie Taylor Greene said that the GENIUS stablecoin bill creates a “backdoor” for the government to effectively create a central bank digital currency, veiled as privately issued crypto tokens.

The lawmaker said that regulated stablecoins feature “functional surveillance capabilities,” which make them indistinguishable from CBDCs. In a separate social media post, she added: 

“This bill regulates stablecoins and provides for the backdoor central bank digital currency. The Federal Reserve has been planning a CBDC for years, and this will open the door to move you to a cashless society and into digital currency that can be weaponized against you by an authoritarian government controlling your ability to buy and sell.”

Rep. Greene’s comments echo a growing tide of individuals in the Bitcoin and crypto communities sounding the alarm on regulated stablecoins and the potential for these privately-issued tokens to become captured by the state.

US Government, United States, Stablecoin, CBDC
US President Donald Trump signs the GENIUS stablecoin bill into law. Source: The White House

Related: GENIUS Act heads to Trump’s desk: Here’s what will change

The Bitcoin and crypto communities voice the same concerns

“The Genius Act forces stablecoins into CBDC compliance and control; functionally identical to a CBDC, without the scary name,” Bitcoin advocate Justin Bechler wrote in a July 19 X post.

Saifedean Ammous, author of “The Bitcoin Standard,” argued that the US dollar, in any form, is essentially a central bank digital currency that is already monitored by the state and increasingly digital.

“Governments realize that if they control stablecoins, they control financial transactions,” Jean Rausis, co-founder of the Smardex decentralized trading platform, said.

The executive added that the ability to freeze or rollback transactions and surveil centrally-managed stablecoins makes them indistinguishable from a CBDC.

The GENIUS bill was amended in March to include stricter anti-money-laundering provisions, sanctions compliance, and know-your-customer requirements, necessitating financial surveillance and the ability to censor transactions.

In October 2024, Curve Finance founder Dr. Michael Egorov told Cointelegraph that centralized stablecoins carry the risk of regulatory capture, including government seizure of the underlying fiat assets held in bank accounts or custodial institutions backing the digital tokens.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

]]> https://earlybirdsinvest.com/us-lawmaker-sounds-alarm-on-genius-bill-says-its-a-cbdc-trojan-horse/feed/ 0 48598 US Lawmaker Warns More FTX-Style Crashes Coming Without Crypto CLARITY https://earlybirdsinvest.com/us-lawmaker-warns-more-ftx-style-crashes-coming-without-crypto-clarity/ https://earlybirdsinvest.com/us-lawmaker-warns-more-ftx-style-crashes-coming-without-crypto-clarity/#respond Tue, 15 Jul 2025 21:37:19 +0000 https://earlybirdsinvest.com/us-lawmaker-warns-more-ftx-style-crashes-coming-without-crypto-clarity/

Impending crypto legislation, such as the CLARITY Act, could prevent another massive crypto collapse, according to lawmakers.

The US House Rules Committee met on Monday to discuss three crypto bills, including the Digital Asset Market Clarity (CLARITY) Act, which was introduced at the end of June with the aim of providing a clear regulatory framework for the crypto industry.

Republican representative French Hill said that without these regulations, another FTX-type collapse could occur.

“If the existing ad hoc process remains in place, I’m convinced we’ll continue to see future FTX-like situations because consumers are not afforded the careful protections included in this legislation.”

Another FTX Looms Without Regulations

Hill emphasized that the bill imposes strict consumer and market protections, including a prohibition on co-mingling customer funds. This directly addresses one of FTX’s major failures, where customer deposits were illegally used for other purposes.

There are also capital requirements that ensure firms maintain adequate reserves, record-keeping obligations creating audit trails and transparency, and conflict of interest provisions preventing self-dealing that contributed to FTX’s downfall.

Hill argued that the current system has gaps that leave consumers unprotected.

“For too long, America’s digital assets regime has been delivered in the worst possible world: regulation by enforcement that stifles responsible innovation and an existing commodity and security regulatory framework that’s plagued by gaps that leave consumers unprotected and investors confused.”

Rather than the current regulation by enforcement approach, the bill provides clear definitions of digital commodities and assets, specific disclosure requirements for fundraising, and retail investor protections through “carefully calibrated resale limitations.”

It also gives authority and oversight of centralized exchanges to the Commodities and Futures Trading Commission.

“We are not creating loopholes. We are closing regulatory gaps,” he said.

On Tuesday, July 15, policymakers will begin discussing the bills, and voting will start when the debate ends.

Two More Crypto Bills in Spotlight

In addition to the CLARITY Act, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act will also be debated and voted on.

This legislation provides a regulatory framework for stablecoins, setting rules for issuers, reserve transparency, and allowing banks to participate.

The Anti-CBDC Surveillance State Act, which aims to prevent the Federal Reserve from issuing a central bank digital currency, is also up for debate and a vote this week.

On July 22, Donald Trump’s Digital Asset Task Force is expected to release a report that could include an American strategic Bitcoin reserve, which could also boost crypto market sentiment.

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Brazilian Lawmaker Proposes Scrapping Crypto Tax for Long-term Investors https://earlybirdsinvest.com/brazilian-lawmaker-proposes-scrapping-crypto-tax-for-long-term-investors/ https://earlybirdsinvest.com/brazilian-lawmaker-proposes-scrapping-crypto-tax-for-long-term-investors/#respond Mon, 16 Jun 2025 23:47:13 +0000 https://earlybirdsinvest.com/brazilian-lawmaker-proposes-scrapping-crypto-tax-for-long-term-investors/

Author

Tim Alper

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Tim Alper

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The Brazilian lawmaker Eros Biondini has created a draft bill that proposes doing away with crypto tax, particularly in the case of citizens who hold Bitcoin (BTC) as a long-term store of value.

The MP has filed his bill in the Chamber of Deputies, the Portuguese-language media outlet Livecoins reported.

Brazilian Crypto Tax: Could Levies Be Scrapped?

The bill calls for the removal of the clauses in the tax code that explicitly mention the taxation of cryptoassets.

The Brazilian lawmaker Eros Biondini calling for support for his bill on social media. The caption reads: “Fight against the taxation of cryptoassets in Brazil.”

It also calls for the abolition of a 2023 law that spells out the means of collecting income tax from profits derived from cryptoassets.

The bill will first be assessed by a Chamber of Deputies committee. The committee will decide whether or not to pass the bill on to the lower house.

From there, it could then move on to the Senate and the office of the President. Both the Senate and the President would have the power to veto the bill.

Biondini also claims that new taxes on financial transactions, including foreign exchange and insurance transfers, are ill-timed.

He claimed that imposing a new tax burden on the population at “a time of economic fragility” would have negative consequences.

The lawmaker noted that the Brazilian tax “burden” reached 32.32% of the country’s Gross Domestic Product (GDP) in FY2024. This is the tax-to-GDP ratio’s highest rate in the last 15 years, per Treasury data.

Biondini criticized the government’s crypto policy. He complained that Brazil, “instead of leading” the world in crypto adoption, is now “going against the grain.”

He said existing and future crypto tax laws “penalize people who are looking for a legitimate, safe, and sovereign store of value.”

Formal Recognition for BTC Savers

The crypto-adovocating lawmaker has previously authored a bill that seeks to formally recognize Bitcoin as a strategic store of value in Brazil.

This proposal seeks to create tax exemption for BTC buyers and holders. It also seeks to spell out citizens’ rights to become self-custodians of their coins, without having to rely on crypto wallet operators.

Biondini took to social media last week in an attempt to unite the Brazilian crypto community behind his bill.

He suggested that if the topic were to go viral, the lower house would be pressured to reject efforts to boost crypto tax revenues in Brazil.

Biondini also called on fellow parliamentarians to back his bill. He explained that it had been designed to defend taxpayers, industry players, and Brazil’s “economic sovereignty.”

In November last year, Biondini unveiled a bill proposing the creation of a national Bitcoin reserve.

The plan called for the government to convert up to 5% of Brazil’s $372 billion international reserve fund to Bitcoin.


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Senate Stablecoin Bill Likely to Win Massive Bipartisan Support, Dem Lawmaker Says https://earlybirdsinvest.com/senate-stablecoin-bill-likely-to-win-massive-bipartisan-support-dem-lawmaker-says/ https://earlybirdsinvest.com/senate-stablecoin-bill-likely-to-win-massive-bipartisan-support-dem-lawmaker-says/#respond Thu, 05 Jun 2025 23:22:46 +0000 https://earlybirdsinvest.com/senate-stablecoin-bill-likely-to-win-massive-bipartisan-support-dem-lawmaker-says/

WASHINGTON, D.C. — As many as 16 Democrats may vote in favor of the Senate’s stablecoin bill when it gets to its final set of votes in the legislative body, Arizona Senator Ruben Gallego said Thursday.

The “Guiding and Establishing National Innovation for U.S. Stablecoins of 2025” (GENIUS) Act faced headwinds last month after Gallego led a group of Democrats against voting for cloture, a procedural hurdle that would advance legislation, citing concerns about consumer protection and other provisions.

Within a week and a half, however, Gallego and other Democrats who had defected from the vote flipped, and the Arizona lawmaker told CoinDesk he predicted that his colleagues would continue advancing it out of the Senate.

“We’ve worked in a very honest, earnest manner with our Republican colleagues, [and] we think that they’ve been doing the same,” he said in an interview. “They adopted a lot of the amendments, most of the amendments that we’ve been adding.”

“It is a significantly different bill,” he said.

He said he led his colleagues in blocking the first cloture vote “because we didn’t think it was a good product,” and Democrats needed more time to sort out the issues they had with the legislation

Gallego later said at the Blockchain Association’s “Charting the Course: Crypto Clarity in America” summit that he’d spent “hours and hours on end” personally negotiating the language with other lawmakers, but the Republican team pulled a “power play” to push an unfinished version toward a vote on the Senate floor. “They tried to jam us,” he said.

So he led his colleagues in a brief effort to slow things down and ask for some changes, he said.

‘Good product’

“I really wanted to bring a good product to the floor,” Gallego said. And so far, his Republican counterparts “have been honoring everything we agreed to.”

If that continues, the bill should come to a final vote next week that gets major bipartisan approval, Gallego said, which he contends could show even more support than previous procedural votes.

Even if the bill meets with success, as he expects, it doesn’t work without also passing the legislation to set up regulations for the structure of the wider crypto markets.

He added that he hoped market structure legislation would be worked on in a bipartisan manner, noting that while the stablecoin bill is likely to advance through Congress, “there’s only so much time on the calendar” to work through other bills. The Senate will have to take up budget legislation at some point, in addition to whatever market structure bill it ultimately introduces.

“The House product has to be strong,” Gallego said, and that will direct what then happens in the Senate. “We don’t want to be starting from square one.”

‘Optimistic’ deadline

Gallego suggested that an August deadline is optimistic and added that as long as it’s done early next year, before March, it may not be tainted by next year’s congressional elections.

“We all become like animals during the election cycle,” he said of his colleagues on Capitol Hill.

Congressman French Hill, who runs the House Financial Services Committee, agreed with Gallego that finishing both bills is vital.

French Hill (Nikhilesh De/CoinDesk)

French Hill (Nikhilesh De/CoinDesk)

“I’m not going back to [former Securities and Exchange Commission Chair] Gary Gensler,” Hill said. “But if we don’t pass both bills, we are potentially at that whim at any moment,” to return to the interpretation of regulators operating without tailored laws.

Without the market structure legislation, traditional finance firms and the general public may not be as willing to delve into the digital assets sector, he said.

“Traditional finance people won’t partner, won’t custody, won’t act as a broker, won’t act as a dealer, won’t hire you to create an on-ramp or off-ramp. It won’t be interoperable. None of that will happen if you don’t have clarity, which is why we have to have both of these bills pass the Congress and be signed into law in this Congress,” he said.

Hill said that lawmakers from both parties and chambers still have a chance to move the bills by August, “if we cooperate with each other.”

Congress will try to move both bills to President Donald Trump’s desk by August, said Wisconsin Representative Bryan Steil. Dusty Johnson, who represents South Dakota, said that there may be some differences of opinion between the House and Senate on at least the market structure legislation.

“We can take GENIUS, but I don’t think they would necessarily take our Clarity Act lock, stock and barrel,” Johnson said at the event.

The bills from the House and Senate need to be identical before the President can sign them into law. Either one of the legislative bodies would have to sign off on the other body’s work, or the two bodies would have to negotiate out any differences.

Reps. Bryan Steil and Dustry Johnson (Jesse Hamilton/CoinDesk)

Reps. Bryan Steil and Dustry Johnson (Jesse Hamilton/CoinDesk)

‘One strong, loud voice’

The House Financial Services Committee will hold a markup on the market structure bill next Tuesday.

“We have a lot of work we have to do,” said Gallego, noting that stretching the process into the start of next year still works.

“If we move too fast with a shitty product, then we’re going to have a shitty vote,” he said.

The crypto industry also needs to be more unified in how it approaches lawmakers, Blockchain Association CEO Summer Mersinger said in her first public appearance in the role since leaving the Commodity Futures Trading Commission.

Summer Mersinger (Nikhilesh De/CoinDesk)

“We must speak with one strong, loud voice in Washington,” she said. “Speaking with one voice does not mean we all have to think the same way or we have to agree on every issue.”

However, the different groups and companies lobbying Washington should find common ground, she said.

Read more: Stablecoin Bills in House and Senate Still Need to Mesh on Several Points: French Hill

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The Supreme Court was right to rule in favor of Maine’s anti-trans lawmaker, in Libby v. Fecteau https://earlybirdsinvest.com/the-supreme-court-was-right-to-rule-in-favor-of-maines-anti-trans-lawmaker-in-libby-v-fecteau/ https://earlybirdsinvest.com/the-supreme-court-was-right-to-rule-in-favor-of-maines-anti-trans-lawmaker-in-libby-v-fecteau/#respond Wed, 21 May 2025 03:13:29 +0000 https://earlybirdsinvest.com/the-supreme-court-was-right-to-rule-in-favor-of-maines-anti-trans-lawmaker-in-libby-v-fecteau/

There are no heroes in Libby v. Fecteau, a decision about an anti-trans lawmaker that the Supreme Court handed down on Tuesday. With only two justices publicly dissenting, the Court handed down a brief order temporarily lifting sanctions against that lawmaker.

The lawmaker at the heart of the case, Maine Republican Rep. Laurel Libby, was sanctioned by her colleagues for posting an unblurred picture of a transgender high school athlete, along with the student’s name and the name of her school, in order to protest against including transgender girls in women’s sports.

The sanction those colleagues imposed on her could not possibly be constitutional: They effectively stripped her of her right to vote on legislation as a member of Maine’s House of Representatives, stripping Libby’s constituents of their representation in the state House. And Libby’s fellow lawmakers likely also violated her First Amendment rights in the process.

As a legal matter, Libby closely resembles Bond v. Floyd (1966), a case brought by a Georgia state lawmaker who was not allowed to take his seat in the state legislature — ostensibly because his colleagues objected to his opposition to the Vietnam War. Bond held that the First Amendment “requires that legislators be given the widest latitude to express their views on issues of policy.”

To be sure, no moral comparisons can be drawn between the plaintiffs in Bond and Libby. Bond involved Rep. Julian Bond, a Black man and a prominent civil rights activist who was elected to the Georgia legislature just as Jim Crow was beginning to lose its grip on the South. Libby, by contrast, arises out of Libby’s decision to bully a high school student.

But the First Amendment protects offensive speech just as surely as it protects speech that is now widely viewed as prescient and wise. Indeed, nearly all First Amendment cases arise out of speech that someone in a position of power deemed offensive — why else would they have tried to censure or ban that speech?

After Libby posted the picture of the high school student on Facebook, Maine House Speaker Ryan Fecteau asked her to take it down due to concerns “that publicizing the student’s identity would threaten the student’s health and safety.” When Libby refused, the state House passed a resolution formally censuring her — which, under the Maine House’s rules, meant that Libby “may not be allowed to vote or speak” on the House floor until she apologizes for the conduct that resulted in her censure. Libby refuses to apologize, which means that her constituents effectively do not have representation in the state House, at least with respect to bills that receive a vote on the floor.

The Supreme Court’s order in the Libby case is very brief and does not explain why the justices decided to reinstate Libby’s floor privileges. Notably, however, none of the justices defended the state legislature’s decision to strip Libby of her voting rights.

The Court’s order includes a single line noting that Justice Sonia Sotomayor dissented, but Sotomayor did not explain why. Justice Ketanji Brown Jackson, meanwhile, penned a brief dissenting opinion which largely criticizes her colleagues for overusing the Court’s “shadow docket” — a mix of emergency motions and other matters that the Court decides without full briefing and oral argument. It was on this docket that Libby was heard.

As Jackson notes, the Court used to be exceedingly reluctant to rule in favor of parties that seek shadow docket relief — she quotes Justice Potter Stewart’s 1968 warning that such relief “should be used sparingly and only in the most critical and exigent circumstances.” And Jackson, who emerged as the Court’s most outspoken opponent of the shadow docket after she became a justice in 2022, is right that the Court’s practices have changed dramatically in recent years.

Prior to the first Trump administration, Supreme Court decisions on the shadow docket were exceedingly rare outside of death penalty cases, where the justices often had to act right away to prevent an execution from moving forward before they could review the case.

But, regardless of whether the justices should have acted as quickly as they did — or, as Jackson suggests, waited until the lower courts had fully considered this case before stepping in — there’s little doubt that Libby should have prevailed eventually. Libby’s constituents have a right to representation, regardless what views their representative holds.

And, if lawmakers were allowed to strip their colleagues of their voting rights at will, there’s no guarantee that another legislature would not use that power to target elected officials who, like Bond, can more easily claim the moral high ground than Libby.

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Top Russian Lawmaker: India-Pakistan Tensions Will Drive up Bitcoin Prices https://earlybirdsinvest.com/top-russian-lawmaker-india-pakistan-tensions-will-drive-up-bitcoin-prices/ https://earlybirdsinvest.com/top-russian-lawmaker-india-pakistan-tensions-will-drive-up-bitcoin-prices/#respond Fri, 09 May 2025 01:15:03 +0000 https://earlybirdsinvest.com/top-russian-lawmaker-india-pakistan-tensions-will-drive-up-bitcoin-prices/ A senior Russian lawmaker says that intensifying India-Pakistan tensions will lead to a Bitcoin (BTC) price rise.

Speaking to the Russian Parliamentary Gazette on May 7, Anatoly Aksakov, the Chairman of the State Duma’s Committee on the Financial Markets, also suggested that some states are now using BTC as a payment tool in cross-border arms deals.

India-Pakistan Conflict to ‘Spur Bitcoin Buying?’

The lawmaker explained that any escalation of military operations between India and Pakistan would see global investors start pouring their funds into assets such as gold, crypto, and other precious metals. Aksakov said:

“As a rule, such tense political situations work in favor of various investment instruments. These include Bitcoin and gold. Especially as Bitcoin is beginning to be used to pay for various weapons supply programs.”

He added that “in general, [Bitcoin] is a safe haven asset.” And that means that demand for BTC “grows during periods of geopolitical instability.”

The lawmaker added that geopolitical uncertainty now unfailingly “stimulates interest in cryptocurrencies.”

A graph showing Bitcoin prices over the past week.

However, he added, events in America still have “the greatest impact on Bitcoin” prices. This is because the US is home to the “largest number of Bitcoin owners in the world,” Aksakov explained.

He concluded that an India-Pakistan conflict would “not affect the Russian ruble in any way,” noting that ruble prices depend almost entirely on Russian “internal economic conditions.”

Aksakov is the chief architect of all of Russia’s crypto legislation to date. He has previously claimed that Moscow is aware that domestic firms are using BTC and other tokens to conduct cross-border trade.

In September 2024, Russian reports claimed that Moscow had launched a focus group to explore crypto payments for so-called “dual-use goods.” Such goods can either used for both civilian and military applications.

Moscow Eyes Stablecoin Solutions?

State-owned Russian banks are also looking to stablecoins in their search for an alternative to fiat settlements.

In October last year, the state-run Promsvyazbank launched a cross-border settlement platform named A7.

The bank says that the platform was designed to facilitate international payments. And TASS reported late last month that A7 operators are now “actively promoting [RUB-pegged] stablecoin adoption.”

The media outlet quoted Osman Kabaloev, the Deputy Director of Financial Policy at the Russian Ministry of Finance, as saying that blockchain-powered “settlement instruments based on the ruble” were “already in circulation and being used in one way or another.”

The post Top Russian Lawmaker: India-Pakistan Tensions Will Drive up Bitcoin Prices appeared first on Cryptonews.

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Democrat lawmaker calls on Treasury to abandon Trump’s Bitcoin reserve plans https://earlybirdsinvest.com/democrat-lawmaker-calls-on-treasury-to-abandon-trumps-bitcoin-reserve-plans/ https://earlybirdsinvest.com/democrat-lawmaker-calls-on-treasury-to-abandon-trumps-bitcoin-reserve-plans/#respond Sat, 15 Mar 2025 07:06:44 +0000 https://earlybirdsinvest.com/democrat-lawmaker-calls-on-treasury-to-abandon-trumps-bitcoin-reserve-plans/

Rep. Gerald E. Connolly, the Ranking Member of the House Oversight and Government Reform Committee, urged the US Treasury Department to abandon plans to establish a strategic Bitcoin reserve and the digital asset stockpile.

In a letter to Treasury Secretary Scott Bessent, Connolly condemned the effort as fiscally irresponsible and politically motivated. He warned that the initiative would serve no clear public benefit while significantly enriching President Donald Trump and his allies.

Trump’s executive order

Connolly’s concerns stem from Trump’s March 6 executive order establishing the Strategic Bitcoin Reserve and US Digital Asset Stockpile, which builds on a broader January 23 directive, “Strengthening American Leadership in Digital Financial Technology.”

The initiative would position the federal government as a major holder of Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). Trump has called the move a way to cement US dominance in digital assets.

Connolly noted Trump’s sharp change in stance on crypto, highlighting that he had previously dismissed digital assets as a “scam” during his first term.

However, his administration is now preparing to allocate federal funds to the sector — an approach Connolly criticized as an attempt to manipulate financial markets for political and personal gain.

He argued that the move amounts to picking winners among digital currencies and creating artificial demand for assets that Trump has financial exposure to.

Conflicts of Interest

The Ranking Member outlined several potential conflicts of interest, including Trump’s reported stake in World Liberty Financial, a digital asset firm that aims to function as a crypto-based lending and investment platform.

Connolly warned that government purchases of crypto could directly benefit Trump’s financial holdings, particularly if the administration prioritizes assets that align with his private investments.

He also pointed to Trump’s involvement in the $TRUMP memecoin, which has surged in value based on speculation surrounding his political statements.

He pointed to reports that entities linked to Trump have generated over $100 million in trading fees from the token, raising concerns that the administration’s crypto initiatives could further drive financial speculation tied to the president.

Lack of Congressional oversight

Connolly also criticized the administration for bypassing Congress in its push to create the reserve, arguing that Trump had not sought legislative authorization nor engaged in consultation with lawmakers about the reserve’s potential risks or benefits.

He warned that without congressional oversight, the initiative could become a tool for political influence rather than a legitimate financial strategy.

He also referenced skepticism from financial experts, citing a Federal Reserve official who reportedly described the plan as “the dumbest idea” ever.

Connolly urged the Treasury Department to immediately halt all plans related to the strategic crypto reserve. He requested a full briefing for House Oversight Committee staff by March 27 and sought clarity on the reserve’s legal justification.

He also requested clarity regarding the process for acquiring and managing the assets, the potential impact on crypto markets, and any financial ties between the White House and digital asset firms.

The Treasury Department has not yet responded to Connolly’s request. His letter signals growing opposition from congressional Democrats, who are increasingly scrutinizing Trump’s expanding involvement in the digital asset industry.

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