We start on a positive note this week, as US securities regulators have taken an important step towards allowing US banks to hold digital assets, including crypto.

According to reports, the step is a reversal of former President Joe Biden’s policy of making it difficult and expensive for US banks to deal in cryptocurrency.

The FT has said, “the Securities and Exchange Commission late on Thursday reversed guidance known as SAB 121, which had called for institutions to treat digital tokens held for customers as liabilities on balance sheets.”

Donald Trump had insisted throughout his electoral campaign that he would ease regulations around cryptocurrency. This decision shows he is keen to keep his promise.

But business bosses and financial experts are calling on the US regulators to take further steps to make it possible for companies “to create tokens backed by stocks and bonds”, the FT report says.

Melania joins the party

It’s official. Melania Trump has become the latest megastar to join the ongoing crypto boom, sparked by her husband’s election victory and return to the White House.

The US first lady and President Trump each launched their own separate meme coins, $Trump and $Melania, on the eve of the incoming president’s inauguration.

The move sparked concerns within the crypto industry over potential conflicts of interest, with Trump having promised he will be relaxing regulation around the digital assets.

Those concerns were not entirely misplaced, as the value of Trump’s meme coin reached $75 on its first of launch. It has however fallen to $39 since.

One former ethics adviser at the White House told The Washington Post: “This may represent the single worst conflict of interest in the modern history of the presidency.” 

Danny Scott, CEO of CoinCorner. was quoted by the BBC saying, “Trump’s comments about not knowing much about the coin back up my opinion that he is making a mockery of the industry. It’s a stunt.”

Meme coins do not have much real value or utility. But the traditional crypto industry has enjoyed an unprecedented surge in prices in the aftermath of Trump’s victory in the US presidential race.

Bitcoin keeps floating

In the meantime, bitcoin, the world’s largest cryptocurrency, has been floating around the $100,000 price range since the turn of the year.

Figures on Monday morning showed a 5.7% decline, resulting in around $850m worth of crypto trades being liquidated on exchanges in 24 hours, according to reports. Ether and solana also saw price drops of 8.2% and 10% respectively in the 24 hours leading up to Monday morning. The AI agents category and the memecoin sector were also hit.

Some industry experts suggested there was a mini financial crisis in the crypto industry and predicted that bitcoin could drop further in the short term to around $700 to $750.

Andreessen Horowitz leaves UK

Donald Trump’s return to the White House is great news for crypto investors in the US. However, it also means they are pulling back from other markets, including the UK, to focus on the US. One major global crypto investor, Andreessen Horowitz, has said it will be closing down its London office and scaling back on its plans to expand into the UK.

Frustrated with regulators in the US at the time, the firm made headlines in 2023 by launching its operations in the UK. Only two years later, and with Trump back at the White House, it is packing up and leaving.

Anthony Albanese, a senior director at the firm, wrote on X: “We’re excited by the enthusiasm for crypto building and adoption in the UK and are encouraged by the recent positive policy announcements and actions. However, we have chosen to focus on the US given the new administration’s strong policy momentum and will therefore be closing our UK office.”

He did however add that he was still confident about the UK’s role in crypto and blockchains, and that he will help the country in its crypto efforts in the future.

Crypto expert kidnapped, and freed

In more gloomy news from the crypto industry, David Balland, the co-founder of crypto startup Ledger, was kidnapped by assailants in France last week along with his wife last week.

Fortunately, both were soon rescued without harm by French police. Around 10 people, mostly men, were arrested in relation with the kidnapping.

Balland co-founded Ledger in 2014 but is not an employee any more. The firm sells hardware that helps crypto traders store their cryptocurrencies in a secure way. It was valued at more than $1 billion in 2024.

Prosecutors have said the assailants had asked for ransom in crypto, part of which was paid but has since been frozen and seized. If found guilty, the kidnappers could potentially face life in prison.