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Senator Warren Demands Crackdown on Crypto Amid Rising Security Concerns

US Senator Elizabeth Warren has urged Treasury Secretary-designate Scott Bessent to implement stricter cryptocurrency regulations, citing concerns over its use in money laundering, sanctions evasion, and national security threats.

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Breaking Crypto Stories

Here are the top stories today:

  • Senator Warren Urges Trump’s Treasury Pick To Consider Stricter Crypto Regs

  • Robinhood To Pay $45M in Civil Penalties To Settle SEC Charges

  • FTX to Begin $1.2 Billion Repayments, Sparking Industry-Wide Anticipation

  • Trump Crypto Agenda: Hopes for Reform Tempered by Reality, Says NYDIG

  • Indian Railways to Launch NFT-Based Train Tickets for MahaKumbh Mela Pilgrimage

Question of the Day

Will the US establish a strategic Bitcoin reserve this year?

US Senator Elizabeth Warren has called for stricter cryptocurrency regulations in a 31-page letter to Treasury Secretary-designate Scott Bessent, highlighting concerns over money laundering, sanctions evasion, and national security threats, and urging expanded authority for the Treasury Department.

  • Warren emphasized that cryptocurrencies are being exploited for money laundering, sanctions evasion, and financing threats like ransomware, North Korea’s nuclear program, and geopolitical conflicts.

  • She urged the consideration of expanded AML/CTF frameworks, secondary sanctions tools, and broader oversight for stablecoins and foreign crypto operators connected to U.S. markets.

  • The letter precedes Bessent’s confirmation hearing on Jan. 16, sparking concerns from industry advocates about Warren’s potential push for sweeping anti-crypto regulations under the guise of national security.

Robinhood has agreed to a $45 million settlement with the SEC over multiple regulatory violations, including issues related to trading activity reporting, short sale rules, and cybersecurity lapses.

  • The SEC found Robinhood Securities LLC and Robinhood Financial LLC guilty of failing to report trading activity accurately, comply with short sale rules, and safeguard customer information.

  • Robinhood agreed to pay $45 million in penalties and admitted to certain findings but did not admit or deny wrongdoing in the settlement.

  • While Robinhood’s crypto operations were not explicitly tied to the violations, the firm saw significant growth in crypto trading volume and assets under custody in recent quarters.

FTX prepares to distribute over $1.2 billion in repayments to users, potentially igniting crypto market momentum ahead of regulatory shifts.

  • FTX's repayment plan aims to distribute over $1.2 billion to creditors, marking a significant step toward resolving its 2022 collapse and potentially reshaping investor sentiment in the crypto market.

  • The timing of the repayments, coinciding with potential regulatory shifts like the Bitcoin Act, could spark renewed optimism, with analysts projecting Bitcoin prices may soar in the next market cycle.

  • While some creditors may cash out for financial stability, others are likely to reinvest, paralleling the Mt. Gox case, where many chose to hold their Bitcoin, highlighting varied strategies and market implications.

The upcoming inauguration of Donald Trump has sparked anticipation for crypto regulatory reform, but NYDIG cautions that immediate changes are unlikely.

  • Donald Trump's upcoming inauguration has raised hopes for significant crypto regulatory reform, but NYDIG warns that immediate changes may be slowed by legislative complexities and competing national priorities.

  • Speculation surrounds the possibility of Trump establishing a U.S. strategic Bitcoin reserve through an executive order, though its permanence and market impact remain uncertain.

  • Optimism grows with Trump’s crypto-supportive regulatory picks, but delays in key appointments and legislative hurdles may temper short-term progress.

Indian Railways will issue NFT-based train tickets on the Polygon blockchain for MahaKumbh Mela, merging tradition with cutting-edge blockchain technology.

  • Indian Railways, in partnership with Chaincode Consulting, will issue NFT-based train tickets for the MahaKumbh Mela pilgrimage on the Polygon blockchain, blending cultural tradition with advanced technology.

  • The Polygon blockchain was chosen for its scalability, cost-effectiveness, and eco-friendly operations, enabling secure and efficient ticketing for millions of global pilgrims.

  • This initiative highlights India's dedication to merging heritage with innovation, offering an enhanced travel experience while promoting blockchain adoption in public services.

ICYMI:

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