by Cointelegraph by Turner Wright | 2 Apr 2025 | Crypto Law |
Texas Senator Ted Cruz proposed a bill aimed at incentivizing crypto miners to use flared gas for energy generation in the state.In an April 1 notice, Cruz said he had introduced the Facilitate Lower Atmospheric Released Emissions, or FLARE, Act in the US Senate, aiming to make Texas “the number one place for Bitcoin mining.” Mining advocacy group Digital Power Network supported the bill, and Bitcoin (BTC) miner MARA Holdings endorsed the proposed legislation on X, claiming it would reduce emissions and “unlock stranded energy.”April 1 draft of FLARE Act. Source: Ted CruzAccording to the text of the bill, the FLARE Act proposed amending the US Internal Revenue Code to incentivize market participants — including digital asset miners — to “capture gas that would otherwise be flared or vented and to use such gas in value-added products.” If signed into law, the legislation would take effect on properties put into service starting in 2026.Related: Bitcoin mining using coal energy down 43% since 2011 — ReportA US senator serving since 2013, Cruz, a Republican, has sometimes proposed legislation that aligns with mainstream figures in his party, including US President Donald Trump. He introduced a bill in March to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) and disclosed personally holding up to $100,000 in Bitcoin as of August 2024.Crypto bills moving through US CongressIn addition to the energy incentives proposed in the bill, Cruz said the language “prohibits entities owned by China, Iran, North Korea, or Russia” that may be operating in Texas from recovering their costs in the same manner. Many US miners, including MARA, Riot Platforms and CleanSpark, operate in the state.It’s unclear whether Cruz’s bill will be a legislative priority in the Senate as Congress considers bills to regulate stablecoins and establish a market structure for digital assets in the US. Some lawmakers have also proposed legislation potentially banning a US CBDC and removing regulatory obstacles to allow Americans to invest in crypto for their retirement plans.Magazine: Ex-Alameda hire on ‘pressure’ to not blow up Backpack exchange: Armani Ferrante, X Hall of Flame
by Cointelegraph by Turner Wright | 1 Apr 2025 | Crypto Law |
Kristin Smith, CEO of the US-based Blockchain Association, will be leaving the cryptocurrency advocacy group for the recently launched Solana Policy Institute.In an April 1 notice, the Blockchain Association (BA) said Smith would be stepping down from her role as CEO on May 16. According to the association, the soon-to-be former CEO will become president of the Solana Policy Institute on May 19.The association’s notice did not provide an apparent reason for the move to the Solana advocacy organization nor say who would lead the group after Smith’s departure. Cointelegraph reached out to the Blockchain Association for comment but did not receive a response at the time of publication.Blockchain Association CEO Kristin Smith’s April 1 announcement. Source: LinkedInSmith, who has worked at the BA since 2018 and was deputy chief of staff for former Montana Representative Denny Rehberg, will follow DeFi Education Fund CEO Miller Whitehouse-Levine, leaving his position to join the Solana Policy Institute as CEO. According to Whitehouse-Levine, the organization plans to educate US policymakers on Solana.This is a developing story, and further information will be added as it becomes available.
by Cointelegraph by Turner Wright | 1 Apr 2025 | Crypto Law |
For the second time, Alabama Senator Tommy Tuberville is set to reintroduce a bill aimed at allowing Americans to add cryptocurrency to their retirement savings plans.In a March 31 Fox News interview, Sen. Tuberville said he planned to reintroduce his “Financial Freedoms Act” legislation after two failed attempts to get the legislation through Congress in 2022 and 2023. In announcing the bill, the Alabama senator said he wanted to help US President Donald Trump’s perceived role as a “crypto president.” “Give people a chance to breathe for once […] let them do what they do best [which] is invest their money,” said the senator. The Financial Freedom Act, which Tuberville first introduced in the US Senate in May 2022, proposed scaling back regulations with the Department of Labor over the types of investments used in 401(k) retirement plan fiduciaries. The senator said he would reintroduce the bill on April 1, but congressional records showed no movement at the time of publication.Related: Trump-linked crypto ventures may complicate US stablecoin policyThis is a developing story, and further information will be added as it becomes available.
by Cointelegraph by Alex O’Donnell | 1 Apr 2025 | Crypto Law |
Asset manager Grayscale has filed to list an exchange-traded fund (ETF) holding a diverse basket of spot cryptocurrencies, US regulatory filings show.On April 1, Grayscale submitted an S-3 regulatory filing to the US Securities and Exchange Commission (SEC), which is required to convert the non-listed fund to an ETF. The Grayscale Digital Large Cap Fund, which was created in 2018 but is not yet exchange-traded, holds a crypto index portfolio comprising Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP (XRP) and Cardano (ADA). As of April 1, the fund has more than $600 million in assets under management (AUM) and is only available to accredited investors (entities or individuals with high net worth), according to Grayscale’s website.The filing follows an Oct. 29 request by NYSE Arca, a US securities exchange, for permission to list the Grayscale index fund. Grayscale’s digital large cap fund holds a diverse basket of digital assets. Source: GrayscaleRelated: US crypto index ETFs off to slow start in first days since listingIndex ETFs in focusThe filing underscores how ETF issuers are accelerating planned crypto product launches now that US President Donald Trump has led federal regulators to a softer stance on digital asset regulation. In December, the SEC greenlighted the first batch of mixed crypto index ETFs. However, the funds — sponsored by Hashdex and Fidelity — hold only Bitcoin and Ether. They have seen relatively modest inflows since debuting in February. In February, the SEC acknowledged more than a dozen exchange filings related to cryptocurrency ETFs, according to records. The filings address issues such as staking and options for existing funds as well as new fund proposals for altcoins such as SOL and XRP. According to industry analysts, crypto index ETFs are a main focus for Wall Street’s issuers after ETFs holding BTC and ETH debuted last year. “The next logical step is index ETFs because indices are efficient for investors — just like how people buy the S&P 500 in an ETF. This will be the same in crypto,” Katalin Tischhauser, head of investment research at crypto bank Sygnum, told Cointelegraph in August.Magazine: How crypto laws are changing across the world in 2025
by Cointelegraph by Helen Partz | 1 Apr 2025 | Crypto Law |
The use of hydrocarbon fuels in mining Bitcoin has seen a sharp decline over the past 13 years, with the use of coal energy in mining dropping significantly. The share of coal energy use in Bitcoin (BTC) mining has dropped from 63% in 2011 to 20% in 2024, an average annual decrease of roughly 8%, according to a new report released on March 31 by the MiCA Crypto Alliance in collaboration with the risk metrics data platform Nodiens.In parallel, the share of renewable energy used in Bitcoin mining has steadily increased, growing at an average rate of 5.8% per year.Bitcoin absolute energy consumption trends and share of renewable and coal energy. Source: MiCA Crypto AllianceThe data reflects a steady shift of Bitcoin mining to cleaner and more sustainable energy solutions, with the study forecasting further decarbonization and mitigation of BTC’s environmental footprint in the coming years.Global coal energy use surged to new highs in 2024The transition comes amid rising global coal consumption, adding contrast to Bitcoin’s changing energy profile.According to the International Energy Agency (IEA), a Paris-based intergovernmental policy organization, global coal use surged to a new record in 2024, estimated at 8.8 billion tonnes.Global coal consumption from 2000 to 2026. Source: IEAAccording to the IEA, global demand for coal energy is set to stay close to record levels through 2027 as emerging economies like India, Indonesia and Vietnam are expected to see a sharp rise in coal consumption in the coming years.Five scenarios for Bitcoin’s energy path to 2030The report lays out five future scenarios for Bitcoin’s carbon footprint, ranging from a bearish $10,000 BTC price to an ultra-bullish $1 million scenario.The study specifically included five BTC price scenarios, with $10,000 considered as a low price scenario, a base price scenario at $110,000, a medium price scenario at $250,000, a high price scenario at $500,000 and a “very bullish” price scenario at $1 million per BTC.Peak annual carbon footprint estimations for different Bitcoin price scenarios and IEA’s different energy transition scenarios. Source: MiCA Crypto AllianceIn a medium price scenario, renewable energy is estimated to constitute between 59.3% and 74.3% of Bitcoin’s total electricity usage, depending on the policy scenario, excluding nuclear energy use, the report stated.Related: Crusoe to sell Bitcoin mining business to NYDIG to focus on AIThe report also mentions an expected peak in Bitcoin mining energy consumption around 2030, echoing a similar forecast in a study by the digital asset platform NYDIG released in September 2021.According to NYDIG’s estimations, even in a high-price scenario, Bitcoin’s electricity consumption would peak at 11 times its 2020 level, but it will only account for 0.4% of global primary energy consumption and 2% of global electricity generation.Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
by Cointelegraph by Zoltan Vardai | 1 Apr 2025 | Crypto Law |
A US dollar-pegged stablecoin launched by a cryptocurrency platform tied to US President Donald Trump’s family could complicate ongoing bipartisan efforts to pass stablecoin legislation in Congress, raising concerns about potential conflicts of interest.The Trump-linked World Liberty Financial (WLFI) crypto platform launched the World Liberty Financial USD (USD1) US dollar-pegged stablecoin in early March, prompting concerns over potential conflicts of interest.Despite political pushback from Democratic Party lawmakers, WLFI’s stablecoin plans are in line with the current US stablecoin legislation, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.“The planned backing, audits, qualified custody, public blockchains and no native yield-bearing — all these elements are well in line with the GENIUS and STABLE acts,” she said in an interview with Cointelegraph.“I would argue that this is a direct expression of support to the US-based stablecoins, and in any case, the stablecoin issuer is subject to the authorization of OCC, state regulators and the Board of Governors of the Federal Reserve,” she added.Related: Stablecoins, tokenized assets gain as Trump tariffs loomThe launch comes as two major stablecoin bills move through Congress. The STABLE Act, introduced on Feb. 6, aims to create a clear regulatory framework for dollar-denominated payment stablecoins. It focuses on transparency and consumer protection and enables issuers to choose between federal and state oversight.Source: STABLE ActThe GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, would establish collateralization guidelines for stablecoin issuers while requiring full compliance with Anti-Money Laundering laws. The act recently passed the Senate Banking Committee by a vote of 18–6.Related: Trump turned crypto from ‘oppressed industry’ to ‘centerpiece’ of US strategyTrump’s USD1 stablecoin is “throwing a wrench into bipartisan efforts”While some see WLFI’s stablecoin as a positive signal for crypto adoption, others fear it may complicate the passage of current legislation, politicizing it in the process.“Trump’s new US dollar-pegged stablecoin, USD1, is throwing a wrench into bipartisan efforts to pass stablecoin legislation, possibly something like the GENIUS Act,” according to Dmitrij Radin, the founder of Zekret and chief technology officer of Fideum.“With the Trump family holding a major stake and revenue share, critics like Senator [Elizabeth] Warren and Representative [Jim] Himes are calling out potential conflicts of interest,” Radin told Cointelegraph, adding:“The concern would be that any law could be seen as financially benefiting Trump, making some lawmakers hesitant. While the bill could still pass, this twist might delay it or force stricter rules to keep it neutral.”While stablecoins appear ready for mainstream adoption, “political drama” may push innovation offshore if regulators become overly restrictive, Radin said, adding that banks and the Federal Reserve are still “pushing back” against stablecoin adoption.Meanwhile, crypto industry professionals have urged US lawmakers to create more regulatory clarity around stablecoins and crypto banking relationships before legislators switch their focus to crypto tax laws.Magazine: SEC’s U-turn on crypto leaves key questions unanswered
