U.S. Establishes Crypto Strategic Reserve
President Donald Trump has announced the creation of a Crypto Strategic Reserve, aiming to position the United States as a leader in digital finance. The reserve will include cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Solana (SOL). This initiative is part of a broader strategy to bolster the nation's digital asset infrastructure and support industry growth.
Market Reaction to Reserve Announcement
Following the announcement, Bitcoin's price experienced a 4.2% decline, settling around $79,500. This drop is attributed to clarifications that the reserve would consist solely of assets already held by the government through asset forfeitures, with no new purchases planned. Other cryptocurrencies, including Ether and XRP, also saw price decreases of approximately 3%.
European Concerns Over U.S. Crypto Policies
Eurozone finance ministers have expressed apprehension that the U.S.'s pro-cryptocurrency policies could undermine Europe's monetary sovereignty and financial stability. The establishment of the U.S. Crypto Strategic Reserve has intensified discussions within the EU regarding the development of a digital euro to maintain economic autonomy.
Kraken Secures UK Regulatory Approval
Cryptocurrency exchange Kraken has obtained approval from the UK's Financial Conduct Authority (FCA) to offer electronic money services. This license enables Kraken to issue electronic money and manage client deposits and withdrawals, enhancing its fiat-related services and addressing "debanking" issues in the UK.
North Korean Hackers Execute Major Crypto Heist
The Lazarus Group, a North Korean hacking organization, has reportedly stolen $1.5 billion in cryptocurrency, marking the largest crypto heist to date. They have already laundered $300 million of the stolen funds, allegedly to finance North Korea's nuclear program. The group exploited security vulnerabilities in the crypto exchange Bybit to execute the theft.
