**News Flash: Tether's Legal Shift Amid MiCA Uncertainty**

Stuart Hoegner, the General Counsel for Tether and Bitfinex, has stepped down just as the EU's Markets in Crypto-Assets Regulation (MiCA) takes effect. Michael Hilliard, who has been with the companies for years, will take over the role.

MiCA's implementation has left stablecoin issuers like Tether in a state of uncertainty, as it's unclear if USDT complies with the new regulations. While no regulators have outright declared USDT non-compliant, the lack of clarity persists. Despite Coinbase delisting USDT, it remains actively traded across the EU.

Terraform Labs co-founder Do Kwon faces a new money laundering conspiracy charge after being extradited from Montenegro to the US. The charge was revealed in a superseding indictment unsealed on January 2 by the US District Court for the Southern District of New York. Prosecutors allege Kwon facilitated transactions exceeding $10,000, knowing they involved proceeds from unlawful activities. Kwon, linked to the 2022 Terra ecosystem collapse, pleaded not guilty and remains in detention. It remains uncertain if US authorities will pursue a plea deal or proceed with a trial.

USDC's circulating supply has surged 80% from its 2023 low, nearing $44 billion, as onchain activity increases, reports Blockworks Research. This growth is driven by users diversifying beyond Ethereum to networks like Solana and Hyperliquid. Currently, 65% of USDC is on Ethereum, with Solana holding 10% and the rest spread across other networks. Analysts predict USDC's market cap could double this year. The rise in stablecoin adoption, particularly USDC, is seen as a positive trend for decentralized finance, as stablecoins serve as a gateway to DeFi.

**News Flash: Web3 and Privacy in the Age of AI**

- Edison Chen, CEO of CUDIS, emphasizes the importance of decentralized identity solutions for Web3 by 2025. These solutions aim to give users control over their data, allowing them to decide how it's shared and monetized.

- David Holtzman warns of privacy threats from AI and quantum computers. Centralized data repositories are vulnerable, but decentralized blockchain technologies can mitigate these risks.

- Tether CEO Paolo Ardoino advocates for local AI models to enhance privacy and reduce reliance on centralized servers, highlighting the capability of current devices to support such solutions.

Frax Finance has successfully passed FIP-418, allowing BlackRock's Institutional Digital Liquidity Fund (BUIDL) to back its frxUSD stablecoin. This decision, supported unanimously by the community, aims to offer yield-bearing opportunities while minimizing counterparty risk through BlackRock's extensive asset management. Frax founder Sam Kazemian highlighted this as a bridge between traditional finance and blockchain. The move aligns with a growing trend towards yield-bearing stablecoins, as seen with other projects like Ethena Labs' USDtb and Curve Finance's upcoming deUSD. Demand for such assets is expected to rise as investors seek interest-generating alternatives.

Morgan Stanley is eyeing the addition of cryptocurrency trading to its E-Trade platform, potentially shaking up the market. This move comes as expectations rise for a more crypto-friendly regulatory environment under President-elect Trump, who aims to make the U.S. a "crypto capital." If implemented, E-Trade would join major brokerages like Robinhood and Fidelity in offering crypto trading, providing competition to platforms like Coinbase. Morgan Stanley, which acquired E-Trade in 2020, continues to lead in crypto adoption, having already authorized its advisors to recommend Bitcoin ETFs to clients.

**Solana ETF Listing Odds Surge Amid Market Optimism**

The chances of a Solana (SOL) exchange-traded fund (ETF) listing in the US this year are looking brighter than ever, according to Matthew Sigel from VanEck. While prediction platform Polymarket pegged the odds at 77% for a 2025 listing, Sigel believes this is an underestimate.

Following Trump's election win, the crypto industry anticipates a wave of ETF approvals. VanEck and 21Shares are pushing for Solana ETFs, despite SEC concerns over SOL's classification. With Polymarket's odds now at 84%, the market is buzzing with bullish bets on crypto ETFs and potential record highs for BTC and ETH in 2025.

Tether's T3 Financial Crimes Unit, alongside the Tron network and TRM Labs, has frozen $126 million in USDT since August 2024. The unit collaborates with global law enforcement to halt illicit transactions, monitoring $3 billion in USDT volume this year. Nearly half of the frozen funds, $56 million, were linked to money laundering, while $36 million were tied to investment scams.

While these actions aim to return stolen assets and deter crime, they spark debate in the crypto community. Critics argue that centralized control threatens financial autonomy and could lead to censorship.

Crypto's influence in US politics is on the rise! As the 119th Congress gears up, many lawmakers owe their wins to the cryptocurrency sector. Millions were spent by crypto executives and PACs like Fairshake to back "pro-crypto" candidates in the 2024 elections. Notably, Republican Bernie Moreno ousted Ohio Senator Sherrod Brown with significant financial backing.

In the Senate, 10 new members benefited from crypto funding, while the House sees 63 new faces supported by similar contributions. With 270 "pro-crypto" lawmakers, upcoming legislation like the FIT21 Act could shape the future of crypto regulation. Crypto funding isn't slowing down, with $103 million ready for the 2026 elections.

**Crypto Crime Crackdown: 2024's Legal Showdowns**

2024 saw Bitcoin hit a record high, but it was also a year of reckoning for crypto criminals. Former FTX CEO Sam Bankman-Fried, extradited from the Bahamas, began a 25-year sentence in Brooklyn. His former colleagues, Caroline Ellison and Ryan Salame, also faced prison time for fraud.

Tornado Cash co-founder Roman Storm awaits trial, while his partner Roman Semenov remains at large. In the Netherlands, Alexey Pertsev was sentenced to over five years for money laundering.

IcomTech's David Carmona received a 10-year sentence, while Bitfinex hackers Ilya Lichtenstein and Heather Morgan faced justice. Meanwhile, speculation swirls around a potential pardon for Silk Road's Ross Ulbricht.

**News Flash: Bitcoin ETFs Near Milestone Amid Record Growth**

- US-based spot Bitcoin ETFs are on the verge of a major milestone, with cumulative holdings just 2.2% shy of $110 billion, representing over 5.7% of Bitcoin's total supply.

- BlackRock leads the pack, with its iShares Bitcoin Trust ETF holding over 542,000 BTC, valued at $51.5 billion, capturing nearly 48% of the US market share.

- These ETFs have played a crucial role in Bitcoin's surge past $100,000, accounting for 75% of new investments.

- Analysts predict Bitcoin could hit $200,000 by 2025, driven by institutional adoption, though regulatory and market factors remain key influences.

**Bitcoin Faces Familiar Criticisms Amid Bull Market**

Bitcoin is once again in the spotlight as its value rises, reigniting debates over its intrinsic value, energy consumption, and role in illicit activities. Critics like Warren Buffett dismiss Bitcoin as lacking real value, while others compare it to historical financial bubbles. Despite these claims, Bitcoin's scarcity and institutional interest bolster its status as "digital gold."

Concerns over Bitcoin's energy use persist, yet mining is increasingly shifting to renewable sources. Meanwhile, fears about Bitcoin's use in crime overlook its transparent blockchain, which makes illicit activities traceable.

The ongoing debate around Tether's transparency also fuels skepticism, though Bitcoin has weathered numerous crises before. As Bitcoin continues to evolve, these narratives remain central to its story.

KuCoin has rolled out a new point-of-sale system, "KuCoin Pay," enabling businesses to accept crypto payments directly from users' exchange balances. This tool supports 54 cryptocurrencies, including Bitcoin, Ether, and Tether, and aims to simplify transactions by allowing customers to pay via QR code or the KuCoin app. This move is part of a broader trend in the crypto payments sector, with companies like Stripe and Wirex also expanding their offerings. KuCoin's initiative could open new opportunities for merchants by tapping into its extensive user base and promoting crypto adoption.

Binance has achieved a major milestone by securing its 21st global regulatory approval, this time from Brazil's central bank. This approval allows Binance to operate as a licensed broker-dealer in Brazil, marking a significant step for crypto adoption in Latin America. With this license, Binance is set to acquire São Paulo-based investment platform Sim;paul, enabling it to distribute securities and issue electronic money. Currently, Binance leads the crypto exchange market with a 24-hour trading volume of over $18.2 billion, far surpassing its closest competitor, Bybit. Stay tuned for more updates.

Solana (SOL) experienced a notable price surge of over 10% after Pump.fun transferred $55 million worth of SOL to the Kraken exchange. This move came after a dip to $189 on January 1. The memecoin platform has been a significant player, depositing over $303 million in SOL to Kraken this year. Meanwhile, anticipation is building for a potential US spot Solana ETF, with a 76% approval likelihood according to Polymarket. Major firms like VanEck and Grayscale are in the race, with decisions expected in January. Brazil's approval of a Solana ETF in August adds to the global momentum.

A crypto whale has made headlines by raking in an impressive $11.5 million in unrealized profits from their investment in the Virtuals Protocol (VIRTUAL) token. This savvy investor initially spent $10 million in USDC to acquire 4.25 million VIRTUAL tokens just 19 days ago. The token, which powers an AI agent launch platform, has surged in popularity, reaching an all-time high of $5.07 on January 2, 2025. Despite recent volatility in AI-based cryptocurrencies, industry experts remain optimistic about the sector's growth potential in 2025, driven by emerging AI-driven investment narratives.

**Solana Memecoin Platform Pump.fun Kicks Off 2024 with $14M Revenue Surge**

Pump.fun, a Solana-based memecoin platform, started 2024 with a bang, raking in over $14 million on January 2. This impressive figure comes from generating 72,506 SOL in fees, with SOL trading above $200.

The platform continues to dominate Solana decentralized exchange transactions, holding 52.8% of all DEX activity in December. Despite challenges last year, including a UK regulatory warning and a temporary pause on its livestream feature, Pump.fun's total revenue is nearing $400 million, showcasing resilience and strong user engagement.

**Memecoins Shake Up Crypto Market in 2024**

DWF Labs reports a seismic shift in the crypto landscape as memecoins redefine value creation and investment strategies. Once a joke with Dogecoin, memecoins now form a sophisticated market sector, attracting major capital and institutional interest.

In 2024, memecoin market cap skyrocketed by 500%, reaching $120 billion by December. This surge highlights a broader trend of younger investors embracing innovative, community-driven financial models.

Looking ahead to 2025, DWF Labs predicts continued dominance of animal-themed memecoins and the rise of AI-driven and thematic coins, reflecting evolving crypto culture.

Bitcoin is making waves as it rebounds to $95,880 ahead of Wall Street's 2025 opening. The crypto giant has shown resilience after dipping to monthly lows, with traders eyeing a potential breakout. Daan Crypto Trades highlights the $95.8K resistance, urging traders to watch for a range breakout. Fellow trader Jelle sees a bullish pattern, predicting a surge to $130K-$150K. Investor Jason Williams echoes this optimism, forecasting a new all-time high by Q1 2025. As traditional finance traders return, Cole Kennelly anticipates a bullish push for crypto, following a December dip influenced by the Fed's hawkish stance.

AI agent tokens are predicted to outshine memecoins until 2025, but their appeal may wane by 2026, says Dragonfly Capital's Haseeb Qureshi. He describes the shift as moving from "financial nihilism to financial over-optimism." While AI agent chatbots are gaining traction in crypto for insights and predictions, Qureshi warns of potential manipulation risks. Despite a recent dip in AI token market cap, they still outperform memecoins. By 2026, Qureshi anticipates a "sudden reversal" as the novelty fades. Meanwhile, Bitwise CEO Hunter Horsley likens AI's rise to the dawn of corporations.