Crypto News Catchup: From Yield-Bearing Stablecoins to State Debates and Presidential Pledges

The cryptocurrency landscape continues to evolve, with regulatory decisions, market movements, and political developments shaping its trajectory. In a major milestone, the SEC has approved the first-ever yield-bearing stablecoin, signaling a shift toward regulatory acceptance. Meanwhile, Montana has rejected a Bitcoin reserve bill, joining other states in taking a cautious approach to integrating crypto into public finance.

On the market front, Bitcoin has entered a corrective phase after reaching record highs, with technical indicators pointing to potential further declines. Bitcoin ETFs have also faced significant outflows, reflecting shifting investor sentiment amid economic uncertainties.

Adding to the crypto debate, President Donald Trump has positioned his administration as pro-crypto, pledging to make the U.S. a leader in digital currency. As these developments unfold, the future of cryptocurrency in regulation, investment, and policy remains a key topic of discussion.

The SEC has approved YLDS, the first yield-bearing stablecoin registered as a security in the U.S., offering a 3.85% yield. This signals regulatory openness to stablecoin innovations, potentially reducing reliance on traditional banks.

While the first of its kind, other entities are developing similar products. Meanwhile, U.S. lawmakers are debating stablecoin regulations, with the STABLE Act under discussion, though some experts find it lacking.

Globally, the U.S. lags behind in stablecoin regulation, trailing regions like the EU, Hong Kong, and Singapore, which have established clearer rules.

Montana has joined North Dakota, Wyoming, and Pennsylvania in rejecting proposals to include Bitcoin in state reserves. House Bill 429, which aimed to allocate up to $50 million in public funds for crypto, stablecoins, and precious metals, failed in the House with a 41-59 vote. Proponents argued that Bitcoin could diversify state assets and offer higher returns than traditional bonds, but lawmakers opted for caution.

Despite Montana’s decision, interest in Bitcoin reserves is growing nationwide. Currently, 19 state proposals remain under consideration, with Arizona, Texas, and other states exploring crypto allocations. Arizona’s Senate Finance Committee recently advanced a bill allowing up to 10% of public funds to be invested in digital assets. Meanwhile, Texas is debating Bitcoin-focused legislation, and internationally, countries like Switzerland, Brazil, Japan, and Russia are also exploring Bitcoin as a reserve asset.

After reaching an all-time high of $109,989 on January 20, Bitcoin has entered a corrective phase, retreating to a low of $91,079. From a technical standpoint, the formation of a failure swing reversal—where the peak at $106,335.50 remained below the prior peak before prices fell below $97,619.30 support—has triggered a downside correction. With Bitcoin already down more than 17%, a decisive breach of $91,079 could accelerate further declines.

The cryptocurrency has slipped below the 50-period Exponential Moving Average (EMA), reinforcing downside pressure. Additionally, the emergence of a “Death Cross” double crossover, where the short EMA crosses below the long EMA, confirms the downward trajectory. The Momentum Oscillator remains below the 100 baseline, while the Relative Strength Index (RSI) hovers under 50, signaling persistent selling interest.

If selling pressure continues, Bitcoin could test support levels at $91,079, $85,967, and $83,516. Conversely, a resurgence in bullish momentum could see a rebound toward resistance at $99,350, $102,360, and $106,335.

U.S. spot Bitcoin ETFs have seen over $1.1 billion in outflows over the past two weeks, marking February 2025 as the worst month for withdrawals since their launch. Last week alone, net outflows reached $559.41 million, following $585.65 million the previous week.

While some funds saw minor inflows, analysts note that most Bitcoin ETF investors focus on short-term trading, with only 44% linked to long-term holdings. Meanwhile, gold ETFs attract inflows, and rising institutional cash reserves signal broader market caution.

Trade tariff proposals and inflation concerns further weighed down investor sentiment, with some shifting from ETFs to cash. Bitcoin’s price resistance adds to fears of a wider market downturn.

President Donald Trump pledged to make the U.S. a leader in digital currency during a speech at the Miami FII Priority Summit, citing Bitcoin’s recent highs as proof of market confidence in his policies.

Trump highlighted Miami as a crypto hub and hinted at deregulation to attract blockchain investment. He also introduced the Department of Government Efficiency (DOGE), led by Elon Musk, to cut wasteful spending and promote a pro-business environment.

Criticizing past regulations for stifling innovation, Trump positioned his administration as a driver of economic growth and reaffirmed his commitment to digital finance leadership.

The evolving crypto landscape continues to be shaped by regulatory shifts, market dynamics, and political influences. The SEC’s approval of a yield-bearing stablecoin marks a step toward regulatory acceptance, while state-level debates over Bitcoin reserves highlight ongoing uncertainty. Bitcoin’s recent price correction and significant ETF outflows signal investor caution, with macroeconomic factors adding to market pressure.

At the same time, political leadership is playing an increasing role in shaping the future of digital assets, as seen in President Trump’s commitment to making the U.S. a global crypto leader. As regulations, investment trends, and market conditions develop, the path forward for cryptocurrencies remains a focal point for investors and policymakers alike.