Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
Trump Pardons Three Co-Founders Of BitMex Crypto Exchange
President Donald Trump granted pardons to three co-founders of the BitMEX global cryptocurrency exchange and a former high-ranking employee of the company.
The co-founders, former BitMEX CEO Arthur Hayes, Benjamin Delo, Samuel Reed, and former head of business development Gregory Dwyer, previously pled guilty to one count of violating the Bank Secrecy Act related to failure to maintain anti-money laundering and know-your-customer programs.
The founders received criminal sentences of probation of varying lengths and were ordered to pay civil fines totaling $30 million related to a lawsuit by the Commodity Futures Trading Commission (CFTC).
Dwyer, who received a sentence of 18 months of probation, agreed to pay $150,000 in fines.
FDIC Says Banks Can Engage In Crypto Activities Without Prior Approval
The Federal Deposit Insurance Corporation (FDIC) said that banks no longer need to get prior approval before engaging in crypto-related activities, like holding digital currency assets or partnering with companies in the industry.
“The FDIC is turning the page on the flawed approach of the past three years,” said acting FDIC Chairman Travis Hill in a statement, adding there will be additional moves in the future to clarify banks’ engagement with crypto products and services.
The FDIC’s move comes after another bank regulator, the Office of the Comptroller of the Currency (OCC), similarly moved to clear the way for banks to move into the crypto sector.
SEC Clears “Hawk Tuah Girl” Hailey Welch In $HAWK Token Investigation
The Securities and Exchange Commission (SEC) has closed its investigation into Hailey Welch, known as the “Hawk Tuah Girl,” without pressing charges or imposing sanctions related to the $HAWK token collapse.
Welch expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” she told TMZ in a recent statement.
The $HAWK token, launched on the Solana blockchain, saw a meteoric rise shortly after its release. However, the token’s value plummeted just as rapidly as it had risen. Within minutes of reaching its peak, $HAWK crashed by over 90%, leaving many investors with massive losses.
Elon Musk Says US Government Has ‘No Plans’ To Use Dogecoin
Elon Musk stated that the US government has no plans to adopt Dogecoin, clarifying that the newly named Department Of Government Efficiency (DOGE) federal department is focused on government efficiency, not cryptocurrency use.
Following Musk’s comments, Dogecoin’s price dropped by 3.2%, trading at $0.16.
The DOGE department aims to improve efficiency across various US government agencies but has faced backlash due to errors in its cost-cutting measures and subsequent lawsuits.
The department claims to have saved the US government $130 billion, affecting taxpayer costs.
Japan’s FSA Aims To Classify Crypto As Financial Assets
Japan’s Financial Services Agency (FSA) is preparing to introduce a major regulatory shift by classifying cryptocurrencies as financial assets. The plan includes bringing digital assets under insider trading laws.
The changes will align cryptocurrencies with regulations for stocks and other traditional financial instruments. The FSA is currently working on amending the Financial Instruments and Exchange Act to implement these changes.
The proposed amendment may be submitted to the parliament of Japan as early as next year. It reflects a broader global trend of increasing regulatory oversight for digital assets.
Kentucky Drops Coinbase Staking Lawsuit Amid Regulatory Shift
Kentucky has dropped its lawsuit against Coinbase over staking services, becoming the third US state to roll back legal action against the exchange in recent months.
The Kentucky Department of Financial Institutions filed a joint stipulation of dismissal, officially ending its case that accused Coinbase of offering unregistered securities through its staking program.
Paul Grewal, Coinbase’s Chief Legal Officer, responded by highlighting the growing momentum in favor of crypto. He pointed out that Kentucky’s decision mirrors similar actions recently taken by Vermont and South Carolina. Grewal emphasized the need for Congress to establish a national regulatory framework, saying the patchwork of state lawsuits is inefficient and unsustainable.
Circle Officially Files For An IPO
Circle, the company behind the USDC stablecoin, has filed for an initial public offering (IPO) and plans to list on the New York Stock Exchange (NYSE).
The prospectus, filed with the Securities and Exchange Commission (SEC), lays the groundwork for Circle’s long-anticipated entry into the public markets.
JPMorgan Chase and Citigroup are serving as lead underwriters, and the company is reportedly aiming for a valuation of up to $5 billion. It will trade under the ticker symbol CRCL.
Circle reported $1.68 billion in revenue and reserve income in 2024, up from $1.45 billion in 2023 and $772 million in 2022. The company reported net income of about $156 million last year, down from $268 million a year earlier.
Blackrock Expands Services As A Crypto Asset Firm In The UK
BlackRock, the world’s largest asset manager with over $12 trillion in assets under management, has been officially recognized as a crypto asset firm by the UK’s Financial Conduct Authority (FCA). This means that the investment giant can operate its new European Bitcoin exchange-traded product as a UK entity.
Notably, BlackRock became the 51st company to be registered as a crypto asset firm with the Financial Conduct Authority on April 1st, according to the regulator’s website.
It joins a list that includes the likes of Coinbase, PayPal, and Revolut. The agency has been criticized in the past for only approving some 14% of all firms that have applied to be registered.
“We have rejected submissions that didn’t include key components necessary for us to carry out an assessment, or the poor quality of key components meant the submission was invalid,” the FCA says on its website.
Mastercard Building Blockchain-Powered Payment Network For Fiat-To-Crypto Transactions
Payments giant Mastercard is strengthening its blockchain-based network by simplifying global transactions among consumers, merchants, and financial institutions.
According to Mastercard’s EVP, Raj Dhamodharan, they will leverage Mastercard’s scale to create compliant, on-chain payment experiences akin to Venmo and Zelle.
“We bring the scale and reach that we have to the space for the money to flow between the two worlds in a simple way. What is missing in this is a fully compliant framework and consumer experience offered on chain, like how you do Venmo and Zelle today in the US domestically,” Dharmodharan said.
The initiative builds on Mastercard’s Multi-Token Network (MTN) and Crypto Credential System (CCS) to bridge fiat and digital currencies seamlessly.
Elon Musk Will Depart From Public Service When His Work At DOGE Is Complete, White House Says
According to the White House, Elon Musk will exit his role with the Department of Government Efficiency (DOGE) on schedule later this spring once “his incredible work at DOGE is complete.”
Musk has been the public face of DOGE since President Donald Trump signed an executive order establishing the office on January 20th, 2025.
Musk officially was hired as a “special government employee,” which is a role Congress created in 1962 that allows the executive or legislative branch to hire temporary employees for specific short-term initiatives.
Special government employees are permitted to work for the federal government for “no more than 130 days in a 365-day period,” according to data from the Office of Government Ethics. Musk’s 130-day timeframe, beginning on Inauguration Day, runs dry on May 30th, 2025.
Trump Announces New Tariffs To Promote US Manufacturing, Risking Inflation And Trade Wars
President Donald Trump confirmed his long-threatened reciprocal tariffs in his effort to shift global trade by levying taxes against goods shipped into the United States.
The result was a list of tariffs that are set to impose major duties on billions — if not trillions — of dollars in trade. China, one of the US’ largest trading partners, would be hit with a 54% tariff, the European Union with 20%, India with 26% and Japan with 24%, among many others.
Bitcoin and other digital assets, often correlated with equities during periods of macroeconomic stress, saw sharp declines as traders shifted away from volatile investments toward safer havens like bonds and gold, reflecting a broader market sentiment of fear and risk aversion.
Final Thoughts
So that’s it for this week!
To stay ahead of the game with the freshest crypto news and insights delivered straight to your inbox, consider subscribing to UseTheBitcoin’s newsletter today.
Have a fantastic week ahead!
