Daily Cryptocurrency Market Update – February 20, 2025

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The global digital asset landscape continues to evolve rapidly, shaped by regulatory advancements, institutional adoption, and shifting market dynamics. From U.S. political figures championing crypto innovation to landmark regulatory approvals in Europe and Asia, today’s developments underscore the growing integration of blockchain technology into mainstream finance.

Trump Advocates for U.S. Leadership in Cryptocurrency

At the Miami Future Investment Initiative Institute, former President Donald Trump reaffirmed his support for American leadership in the cryptocurrency space. “Bitcoin has hit multiple all-time highs because everyone knows I’m committed to making America the crypto capital of the world,” he stated. Emphasizing Miami as a potential epicenter of crypto innovation, Trump highlighted the importance of staying at the forefront of technological progress.

With pro-crypto lawmakers like Senator Tim Scott and Representative French Hill leading key congressional committees, Washington may soon host the most crypto-friendly Congress yet. This political momentum could accelerate the passage of clear, innovation-supportive regulations—critical for long-term market stability and investor confidence.

👉 Discover how regulatory clarity is shaping the future of digital assets.

U.S. DOJ Recovers Millions in Stolen Crypto Assets

The U.S. Department of Justice has filed a civil forfeiture complaint targeting a fraudulent cryptocurrency investment scheme. Authorities recovered 7.24 BTC, 14,120 USDT, and 105.75 ETH linked to the scam. The case involved a Massachusetts resident who joined a fake investment group and transferred funds to a suspicious trading platform.

Investigations revealed at least three victims across the U.S. sent money to the same entity, with部分 assets seized as early as October 2024. The DOJ stressed that using telecommunications to defraud or conceal criminal proceeds constitutes a federal offense. Once legal proceedings conclude, recovered assets will be returned to victims.

This action reflects growing enforcement capabilities and interagency coordination in combating crypto-based fraud—a trend that enhances investor protection and strengthens trust in digital markets.

EU’s MiCA Approves 10 Stablecoin Issuers – Tether Excluded

Under the EU’s Markets in Crypto-Assets (MiCA) regulation, ten firms—including Circle, Crypto.com, and Société Générale—have been authorized to issue euro and dollar-denominated stablecoins. The approval covers 10 euro-pegged and 5 USD-pegged stablecoins, marking a major milestone in regulatory harmonization across Europe.

Notably absent from the list is Tether (USDT), despite its $141+ billion market cap and widespread use. While Tether has expressed commitment to full compliance, its exclusion signals that even dominant players must meet stringent transparency and reserve requirements under MiCA.

This development reinforces the EU’s role as a global regulatory leader, setting a benchmark for stablecoin oversight that could influence policies worldwide.

SEC Drops Appeal on DeFi Rule Expansion

In a significant shift, the U.S. Securities and Exchange Commission (SEC) voluntarily withdrew its appeal of a court ruling that blocked its attempt to expand the definition of “dealer” under securities law to include DeFi participants.

The original decision, issued by a Texas federal judge in November 2024, found that the SEC overstepped its authority by equating decentralized protocol users with licensed brokers. The regulator’s four-page motion to drop the appeal was unopposed, suggesting a recalibration in its approach to regulating decentralized finance.

This move may signal a more measured stance from the SEC, potentially opening space for clearer, innovation-friendly rules rather than broad enforcement actions.

Montana Advances Strategic Bitcoin Reserve Bill

Montana’s House Bill 429, which proposes establishing a strategic digital asset reserve, has passed committee review and is now headed to the state House floor for voting. If enacted, it would authorize up to $50 million** in investments in gold, stablecoins, and digital assets with an average market cap exceeding **$75 billion over the prior year—effectively including Bitcoin and Ethereum.

Assets must be held via qualified custodians or ETFs, ensuring compliance with fiduciary standards. This initiative reflects a growing trend among U.S. states to diversify public treasuries with high-performing digital assets, inspired by successful models like MicroStrategy’s BTC strategy.

👉 Learn how institutional adoption is transforming public finance strategies.

Nigeria Sues Binance for $81.5 Billion in Damages

Nigeria has filed a lawsuit against Binance, seeking $79.5 billion in economic damages** and **$2 billion in unpaid taxes, blaming the exchange for exacerbating currency instability. Authorities claim Binance became the dominant platform for trading local naira, contributing to capital flight and foreign exchange pressure.

The legal action follows the 2024 detention of two Binance executives in Lagos. While critics argue the damages are symbolic, the case highlights increasing scrutiny of global exchanges operating in emerging markets without full regulatory alignment.

This case could set a precedent for how nations hold foreign crypto platforms accountable for domestic financial impacts.

SEC Confirms Receipt of Spot Litecoin ETF Filing

The SEC has officially acknowledged receipt of a spot Litecoin ETF (LITE) application submitted by CoinShares. While no approval decision has been made, this marks a critical step toward potential listing.

If approved, it would follow the precedent set by Bitcoin ETFs and expand product offerings for institutional investors. The filing reignites debate over whether altcoins should qualify for similar treatment under securities law.

Market analysts suggest that Litecoin’s long-standing network security and transparent development may bolster its case for regulatory acceptance.

Czech Central Bank Chief: Bitcoin Is Not Just Another Crypto

Ales Michl, Governor of the Czech National Bank, emphasized that Bitcoin should not be grouped with other cryptocurrencies, especially meme coins linked to scams. Speaking after recent fraud cases involving speculative tokens, Michl advocated for distinguishing BTC based on its scarcity, decentralization, and track record.

He also confirmed that his proposal to study including Bitcoin on the central bank’s balance sheet has been approved for preliminary analysis. Such research could pave the way for limited sovereign exposure to digital assets—mirroring trends seen in El Salvador and corporate treasuries.

South Korea to Intensify Crypto Exchange Audits

The Financial Supervisory Service (FSS) announced enhanced inspection plans for Virtual Asset Service Providers (VASPs) in 2025. The focus will be on compliance with anti-money laundering (AML) rules, customer fund protection, and adherence to self-regulatory guidelines.

These audits reflect South Korea’s ongoing effort to balance innovation with investor safety in one of Asia’s most active crypto markets.

Franklin Templeton Launches Tokenized U.S. Treasury Fund in Europe

Global asset manager Franklin Templeton has launched its first fully tokenized U.S. Treasury fund in Luxembourg, built on the Stellar (XLM) network. Approved by local regulators, the fund offers institutional investors in eight European countries—including Germany, France, and Switzerland—access to blockchain-based fixed-income products.

This move underscores the growing convergence between traditional finance (TradFi) and decentralized infrastructure, offering improved liquidity, transparency, and settlement efficiency.

Hong Kong Unveils “A-S-P-I-Re” Regulatory Roadmap

The Securities and Futures Commission (SFC) of Hong Kong released its strategic framework—A-S-P-I-Re—to guide virtual asset regulation:

With 12 initiatives outlined, including improved market surveillance and international collaboration, Hong Kong aims to become a trusted hub for virtual asset liquidity while safeguarding market integrity.

Market Outlook: Low Leverage Supports Resilience

According to CryptoQuant CEO Ki Young Ju, Bitcoin remains in a bull market cycle despite volatility. He estimates that even a 30% pullback from a $110,000 peak—to around $77,000—would not signal a bear market, consistent with historical patterns.

He noted that **MicroStrategy’s average BTC acquisition cost is $65,033**, providing a psychological floor. Meanwhile, ETF and custodial wallets show a higher cost basis of ~$89,000, indicating strong institutional support levels.

Matrixport data shows lower overall leverage compared to 2020–2021 cycles. Despite $600 million in recent liquidations, prices stabilized quickly—evidence of improved market maturity and reduced systemic risk.

Frequently Asked Questions (FAQ)

Q: Why wasn’t Tether included in the EU’s MiCA approval list?
A: While Tether hasn’t been officially excluded permanently, it likely needs more time to meet MiCA’s strict reserve transparency and auditing requirements. The absence doesn’t imply rejection but reflects ongoing compliance efforts.

Q: What does Montana’s Bitcoin reserve bill mean for other U.S. states?
A: It sets a precedent for state-level treasury diversification using digital assets. If successful, other states may follow suit, accelerating institutional adoption across public finance sectors.

Q: Can Litecoin really get an ETF?
A: Approval depends on whether the SEC classifies LTC as a commodity rather than a security. Given its similarities to Bitcoin and years of operation without major regulatory issues, chances are improving—but not guaranteed.

Q: Is low leverage good for crypto markets?
A: Yes. Lower leverage reduces liquidation cascades during downturns, leading to more stable price action and greater resilience against shocks—signs of maturing market structure.

Q: How might Nigeria’s lawsuit affect Binance globally?
A: While the $81.5B figure is likely symbolic, the case increases pressure on Binance to strengthen local compliance in emerging markets. It may prompt tighter partnerships with regional regulators worldwide.

Q: What is a tokenized Treasury fund?
A: It’s a blockchain-based version of a government bond fund, offering faster settlement, 24/7 trading potential, and programmable features while maintaining traditional asset backing.

👉 Explore how tokenization is revolutionizing traditional finance.

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