A collection of U.S. agencies are working on redefining the concept of money. Glassnode data reveals that almost 75% of Bitcoin‘s supply has remained static over the past six months. Simultaneously, Cantor Fitzgerald’s president will lead Donald Trump’s transition team if he secures the presidency this November.
US Regulatory Efforts Intensify
Key federal agencies in the United States are collaborating to update the definition of money to enhance reporting requirements for cryptocurrency transactions. On August 16, the US Treasury Department unveiled a six-month regulatory agenda aimed at creating a balanced regulatory environment for both cryptocurrencies and traditional fiat currencies. The Federal Reserve and the Financial Crimes Enforcement Network (FinCEN) plan to redefine money in the context of the Bank Secrecy Act.
The updated proposal aims to encompass local and cross-border transactions involving convertible virtual currencies, which function as currency substitutes without legal tender status. This regulatory move seeks to ensure such virtual currencies are subject to the same scrutiny as traditional currencies.
Bitcoin’s Stagnant Supply
Onchain data from Glassnode indicates that roughly three-quarters of circulating Bitcoin has not been moved in over six months. This trend is illustrated by Glassnode’s Hodl Wave chart, which analyzes blockchain data to track Bitcoin held in wallets based on their last transaction time. This is a notable increase from a week prior when only 45% of Bitcoin’s supply had been inactive for at least six months. Despite a 21% decrease from its all-time high, about 74% of Bitcoin has remained untouched this year.
Trump’s Transition Team Prepares
Howard Lutnick, president of financial services firm Cantor Fitzgerald, is set to lead Donald Trump’s transition to the White House should he win the upcoming election. The announcement was confirmed by Trump’s campaign team on August 16, also naming Linda McMahon, co-founder of WWE, as part of the transition team. Both Lutnick and McMahon have been significant donors to Trump’s 2024 campaign.
Key Takeaways
Implications for Financial Institutions:
- U.S. federal agencies are refining the definition of money to include virtual currencies for better regulation.
- Approximately 75% of Bitcoin’s circulating supply has remained stationary in recent months, indicating investor holding patterns.
- Donald Trump’s potential presidential transition team includes notable figures from the financial and entertainment sectors.
These developments signal critical shifts in regulatory oversight and political preparations involving key stakeholders in both the financial and cryptocurrency sectors.