World Liberty Financial, a crypto venture backed by Donald Trump and his family, has launched a U.S. dollar-pegged stablecoin called USD1. The token is backed by U.S. Treasuries and cash equivalents and will soon go live on the Ethereum and Binance Smart Chain networks. CNBC reports: The development comes as the market cap for dollar-backed stablecoins -- cryptocurrencies that promise a fixed value peg to another asset -- has been climbing to new all-time-highs this year and has grown more than 46% in the past year, according to CryptoQuant. The market has long been dominated by Tether (USDT) and, more recently, Circle's USDC. "USD1 provides what algorithmic and anonymous crypto projects cannot -- access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance," said World Liberty Financial co-founder Zach Witkoff. "We're offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions."

Alex Thorn is head of firmwide research at Galaxy Digital, said at the Digital Asset Summit: "Stablecoins are seen as more politically easy to do in Congress but actually will be dramatically more impactful to the United States and the world than market structure [legislation]. Who regulates who is important ... if you're one of the people that's going to be regulated, but the stablecoin bill could solidify dollar dominance for 100 years."

Sam Bankman-Fried — one of the largest donors to the Democratic Party — "was convicted of fraud, sentenced to 25 years in prison and mostly went silent," reports the Wall Street Journal. "Until recently..." Now, from behind bars at the Metropolitan Detention Center in Brooklyn, Bankman-Fried is orchestrating an extraordinary public-relations blitz that looks very much like a campaign to make the most audacious trade of his career: support for President Trump's agenda in return for a presidential pardon...

There is little downside to Bankman-Fried's long-shot effort to secure a pardon. As the appeal that he filed last year works its way through the courts, Bankman-Fried, 33, is staring down a prison sentence that could extend until his 50s... The crowning touch of his campaign came on Thursday, when Bankman-Fried gave a jailhouse interview to "The Tucker Carlson Show," which was released on social-media channels including X and YouTube. Appearing on video in a brown jumpsuit, he criticized Washington bureaucrats and crypto regulators — and suggested that he went to prison out of political retribution... [Carlson's title for the interview? "Sam Bankman-Fried on Life in Prison With Diddy, and How Democrats Stole His Money and Betrayed Him."]

The interview hadn't been approved by the Federal Bureau of Prisons, according to a person familiar with the matter. Bankman-Fried spoke with Carlson through a link that is typically used by inmates to communicate with their lawyers, the person said. After the interview, Bankman-Fried was placed in solitary confinement, but he was out by Friday afternoon, according to a person familiar with the matter... Bankman-Fried is trying to highlight in media appearances and in any interaction with Trump's team that FTX customers are set to be made whole with interest through the bankruptcy proceedings — at least in dollar terms. Many of those creditors remain furious that they missed out on bitcoin's rally since November 2022.
Bankman-Fried "wants to set the record straight on his political beliefs, which he believes have been misconstrued," according to the article. "While he has given heavily to Democrats, he has also donated to Republican causes, including the contribution of millions to a group supporting Senator Mitch McConnell."

But the New York Times, citing "people with knowledge" of his pardon-seeking efforts, reported that "So far, the push does not appear to have gained traction."

President Trump has signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government. Reuters reports: A "Strategic Bitcoin Reserve" will be capitalized with bitcoin owned by the federal government that was seized as part of criminal or civil asset forfeiture proceedings, the White House crypto czar, billionaire David Sacks, said in a post on social media platform X. The order kept open the possibility of the government buying bitcoin in future. The U.S. commerce and treasury secretaries "are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies impose no incremental costs on American taxpayers," a factsheet on the White House website said. "This is the most underwhelming and disappointing outcome we could have expected for this week," Charles Edwards, founder of bitcoin-focused hedge fund Capriole Investments, wrote in a post on X. "No active buying means this is just a fancy title for Bitcoin holdings that already existed with the Govt. This is a pig in lipstick."

Despite a January announcement that America would explore the idea of a national digital asset stockpile, the exact cryptocurrecies weren't specified. Today on social media the president posted that it would include bitcoin, ether, XRP, Solana's SOL token and Cardano's ADA, reports CNBC — prompting a Sunday rally in cryptocurrencies trading. XRP surged 33% after the announcement while the token tied to Solana jumped 22%. Cardano's coin soared more than 60%. Bitcoin rose 10% to $94,425.29, after dipping to a three-month low under $80,000 on Friday. Ether, which has suffered some of the biggest losses in crypto year-to-date, gained 12%... This is the first time Trump has specified his support for a crypto "reserve" versus a "stockpile." While the former assumes actively buying crypto in regular installments, a stockpile would simply not sell any of the crypto currently held by the U.S. government.
"The total cryptocurrency market has risen about 10%," reports Reuters, "or more than $300 billion, in the hours since Trump's announcement, according to CoinGecko, a cryptocurrency data and analysis company."

"A U.S. Crypto Reserve will elevate this critical industry..." the president posted, promising to "make sure the U.S. is the Crypto Capital of the World," reports The Hill: His announcement comes just after the White House announced it would be welcoming cryptocurrency industry professionals on March 7 in a first-of-its-kind summit... It's unclear what exactly Trump's crypto reserve would look like, and while he previously dismissed crypto as a scam, he's embraced the industry throughout his most recent campaign.

The U.S. released Russian cybercriminal Alexander Vinnik, who pleaded guilty to conspiracy to commit money laundering through his cryptocurrency exchange BTC-e, as part of a prisoner swap that freed American schoolteacher Marc Fogel from Russian custody. The Guardian reports: Vinnik, who arrived in Moscow on a flight from Turkey on Tuesday after having been released from custody in California, is accused of owning and operating one of the largest cryptocurrency exchanges in the world, BTC-e, which prosecutors allege facilitated the transfer of billions of dollars in transactions for criminals worldwide. In May 2024, Vinnik pleaded guilty to conspiracy to launder billions of dollars through BTC-e. He was first arrested in Greece in 2017 at the request of the United States after he was charged by a US jury in a 21-count indictment.

The charges against him included money laundering, conspiracy to commit money laundering, operating an unlicensed money service business and engaging in unlawful monetary transactions, among others. Vinnik was first extradited to France from Greece, where he received a five-year prison sentence for money laundering. He was then sent back to Greece and extradited to the United States in 2022 to face US charges. The justice department described BTC-e, which was active from around 2011 to 2017, as a "significant cybercrime and online money laundering entity that allowed its users to trade in bitcoin with high levels of anonymity and developed a customer base heavily reliant on criminal activity." Prosecutors say that BTC-e processed over $9 bn worth of transactions and served over 1 million users globally, including numerous customers in the US.

US prosecutors said that the exchange was one of the "primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities" and accused Vinnik of operating the company with the intent to "promote" unlawful activities. Prosecutors said that he was responsible for more than $120m in losses. Vinnik, who is a nonviolent offender, is forfeiting tens of millions of dollars in assets in the exchange, according to the New York Times.

Eric Council Jr. pleaded guilty to identity theft and access device fraud after hijacking the SEC's X account to falsely announce Bitcoin ETF approval. He was compensated in Bitcoin by co-conspirators, and while the Justice Department continues its investigation, Council faces up to five years in prison. Gizmodo reports: According to the Justice Department, Council accessed the SEC's account using an attack called SIM swapping, in which a perpetrator uses social engineering to trick a phone carrier's customer service representatives into transferring an individual's phone number to a new device. Basically, they call into a support line and use pieces of personal information about a victim they have gathered online to convince the representative they are the person they are targeting. Once perpetrators take the number and can begin receiving text messages, they are able to reset the passwords of accounts on services like X. It is not really a "hack" in the traditional sense that they are not finding flaws in software but rather exploiting human trust.

Unfortunately for individuals like Council, all Bitcoin transactions are logged on a blockchain for anyone to see, leaving a trail of breadcrumbs for investigators to find. If he did make out with a lot of crypto, it would be hard to keep it hidden forever. Council allegedly did not post the message himself to the SEC's X account, but conducted the SIM swap and left the rest of the work to his co-conspirators who compensated Council in the form of, of course, Bitcoin. The price of the cryptocurrency rose by $1,000 after the fake announcement, according to the Justice Department, and fell by $2,000 after the SEC issued a correction. That could have led to a big windfall depending on how much Bitcoin the perpetrators held at the time.

AmiMoJo writes: A computer expert who has battled for a decade to recover a $743 million bitcoin fortune he believes is buried in a council dump in south Wales is considering buying the site so he can hunt for the missing fortune. James Howells lost a high court case last month to force Newport city council to allow him to search the tip to retrieve a hard drive he says contains the bitcoins.

The council has since announced plans to close and cap the site, which would almost certainly spell the end of any lingering hopes of reaching the bitcoins. The authority has secured planning permission for a solar farm on part of the land. Howells, 39, said on Monday it had been "quite a surprise" to hear of the closure plan. He said: "It [the council] claimed at the high court that closing the landfill to allow me to search would have a huge detrimental impact on the people of Newport, whilst at the same time they were planning to close the landfill anyway. I expected it would be closed in the coming years because it's 80/90% full -- but didn't expect its closure so soon. If Newport city council would be willing, I would potentially be interested in purchasing the landfill site -- as is -- and have discussed this option with investment partners and it is something that is very much on the table."

After finalizing loan terms with the IMF, El Salvador's Legislative Assembly approved changes to the country's Bitcoin Law last week by a 55-2 vote, "effectively removing bitcoin's status as legal currency," reports Reason. Under the new rules, bitcoin is no longer considered "currency," though it remains "legal tender." Another change makes using bitcoin entirely voluntary. (Previously, the law mandated that businesses accept bitcoin for any goods or services they provided.) Additionally, bitcoin can no longer be used to pay taxes or settle government debts. The government is also stepping back from its involvement in Chivo Wallet, the state-backed digital wallet...

The reforms come as part of a broader financial agreement between Bukele and the International Monetary Fund (IMF). One of the conditions for a proposed $1.4 billion Extended Fund Facility loan was that El Salvador mitigate "potential risks of the Bitcoin project." The IMF has been critical of the country's crypto policies since Bukele made bitcoin legal tender in 2021. "There are large risks associated with using Bitcoin as legal tender, especially given the high volatility of its price. We don't recommend it," the organization said in 2022.

Despite these changes, the administration insists it remains committed to bitcoin. Milena Mayorga, El Salvador's ambassador to the United States, has said that El Salvador is still a "bitcoin country" and will maintain — and even expand — its bitcoin reserves. "You have to adapt to the current situation and this is the decision that was taken in the Assembly, but that does not mean that the country will stop having a bitcoin reserve," she explained.
Government data suggests El Salvador now holds 6,072 Bitcoin worth $586,888,000.

To capitalize on the AI boom, many crypto miners "have begun to repurpose parts of their operations into data centers," reports Reuters, "given they already have most of the infrastructure" (including landing and "significant" power resources...) Toronto-based bitcoin miner Bitfarms has enlisted two consultants to explore how it can transform some of its facilities to meet the growing demand for artificial intelligence data centers, it said on Friday... Earlier this month, Riot Platforms launched a review of the potential AI and computing uses for parts of its facility in Navarro County, Texas.

Slashdot readers jkister and databasecowgirl share the news of President Donald Trump issuing a pardon to Silk Road creator Ross Ulbricht. An anonymous reader shares a report from the BBC: US President Donald Trump says he has signed a full and unconditional pardon for Ross Ulbricht, who operated Silk Road, the dark web marketplace where illegal drugs were sold. Ulbricht was convicted in 2015 in New York in a narcotics and money laundering conspiracy and sentenced to life in prison. Trump posted on his Truth Social platform that he had called Ulbricht's mother to inform her that he had granted a pardon to her son. Silk Road, which was shut down in 2013 after police arrested Ulbricht, sold illegal drugs using Bitcoin, as well as hacking equipment and stolen passports.

"The scum that worked to convict him were some of the same lunatics who were involved in the modern day weaponization of government against me," Trump said in his post online on Tuesday evening. "He was given two life sentences, plus 40 years. Ridiculous!" Ulbricht was found guilty of charges including conspiracy to commit drug trafficking, money laundering and computer hacking. During his trial, prosecutors said Ulbricht's website, hosted on the hidden "dark web", sold more than $200 million worth of drugs anonymously.

Donald and Melania Trump have launched a pair of meme coins just before President Trump was sworn into office. The coins are already worth billions of dollars, raising "serious ethical questions and conflicts of interest," said Richard Painter, a law professor at the University of Minnesota. CNN reports: Melania Trump launched her cryptocurrency $MELANIA in a social media post Sunday, sending her husband's cryptocurrency $TRUMP, announced two days earlier, plummeting. "The Official Melania Meme is live! You can buy $MELANIA now. https://melaniameme.com," the future first lady wrote on X Sunday. Meme coins are a type of highly volatile cryptocurrency inspired by popular internet or cultural trends. They carry no intrinsic value but can soar, or plummet, in price. "My NEW Official Trump Meme is HERE!" Trump wrote on X Friday. "It's time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to http://gettrumpmemes.com -- Have Fun!" Both coins are trading on the Solana blockchain. [...]

$TRUMP is the first cryptocurrency endorsed by the incoming president, who once trashed bitcoin as "based on thin air." [...] While executive branch employees must follow conflict of interest criminal statutes that prevent them from participating in matters that impact their own financial interests, the law does not apply to the president or the vice president. [...] The Trump coin's market capitalization, which is based on the 200 million coins circulating, is capped at $13 billion, according to CoinMarketCap. The meme coin's website said there will be 1 billion Trump coins over the next three years. Both $MELANIA and $TRUMP's websites contain disclaimers saying the coins are "intended to function as a support for, and engagement with" the values of their respective brands and "are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type."

The website says the meme coin is not politically affiliated. But 80% of the coin's supply is held by Trump Organization-affiliate CIC Digital and Fight Fight Fight LLC, which are both subject to a three-year unlocking schedule -- so they cannot sell all of their holdings at once. Trump coin's fully diluted value (which reflects the eventual total supply of Trump coins) stood at around $54 billion as of Monday morning, according to CoinMarketCap. At that value, the 80% linked to Trump is worth a staggering $43 billion, at least on paper. The $TRUMP coin's website says it is "the only official Trump meme. Now, you can get your piece of history. This Trump Meme celebrates a leader who doesn't back down, no matter the odds," the website reads. "Trump owning 80% and timing launch hours before inauguration is predatory and many will likely get hurt by it," Nick Tomaino, a former Coinbase executive, said in a post on X. "Trump should be airdropping to the people rather than enriching himself or his team on this."

A new ransomware group called Codefinger targets AWS S3 buckets by exploiting compromised or publicly exposed AWS keys to encrypt victims' data using AWS's own SSE-C encryption, rendering it inaccessible without the attacker-generated AES-256 keys. While other security researchers have documented techniques for encrypting S3 buckets, "this is the first instance we know of leveraging AWS's native secure encryption infrastructure via SSE-C in the wild," Tim West, VP of services with the Halcyon RISE Team, told The Register. "Historically AWS Identity IAM keys are leaked and used for data theft but if this approach gains widespread adoption, it could represent a significant systemic risk to organizations relying on AWS S3 for the storage of critical data," he warned. From the report: ... in addition to encrypting the data, Codefinder marks the compromised files for deletion within seven days using the S3 Object Lifecycle Management API â" the criminals themselves do not threaten to leak or sell the data, we're told. "This is unique in that most ransomware operators and affiliate attackers do not engage in straight up data destruction as part of a double extortion scheme or to otherwise put pressure on the victim to pay the ransom demand," West said. "Data destruction represents an additional risk to targeted organizations."

Codefinger also leaves a ransom note in each affected directory that includes the attacker's Bitcoin address and a client ID associated with the encrypted data. "The note warns that changes to account permissions or files will end negotiations," the Halcyon researchers said in a report about S3 bucket attacks shared with The Register. While West declined to name or provide any additional details about the two Codefinger victims -- including if they paid the ransom demands -- he suggests that AWS customers restrict the use of SSE-C.

"This can be achieved by leveraging the Condition element in IAM policies to prevent unauthorized applications of SSE-C on S3 buckets, ensuring that only approved data and users can utilize this feature," he explained. Plus, it's important to monitor and regularly audit AWS keys, as these make very attractive targets for all types of criminals looking to break into companies' cloud environments and steal data. "Permissions should be reviewed frequently to confirm they align with the principle of least privilege, while unused keys should be disabled, and active ones rotated regularly to minimize exposure," West said. An AWS spokesperson said it notifies affected customers of exposed keys and "quickly takes any necessary actions, such as applying quarantine policies to minimize risks for customers without disrupting their IT environment."

They also directed users to this post about what to do upon noticing unauthorized activity.

An anonymous reader quotes a report from Crypto Briefing: The US Department of Justice (DOJ) has been authorized to sell approximately 69,370 Bitcoin seized in connection with the Silk Road darknet marketplace, a haul currently valued at around $6.5 billion, DB News reported Wednesday. The decision is set to end a years-long legal dispute over the BTC stash's ownership. On December 30, a federal judge ruled in favor of the DOJ's request to liquidate the crypto assets, the report said. Battle Born Investments, which had asserted a claim to the Bitcoin stash through a bankruptcy estate, ultimately failed in its bid to delay the sale.

As noted, the group had pursued a Freedom of Information Act (FOIA) request seeking the identity of "Individual X," who initially surrendered Bitcoin, but the effort also proved unsuccessful. Battle Born's legal counsel criticized the DOJ's handling of the case, alleging the department employed "procedural trickery" in its use of civil asset forfeiture to avoid scrutiny. The DOJ, in its arguments before the court, cited Bitcoin's price volatility as motivation for seeking a quick sale of the seized assets. A DOJ spokesperson, when contacted, stated, "The Government will proceed further consistent with the judgment in this case."

The update comes after the US Supreme Court refused to hear an appeal challenging the seizure of the Bitcoin stash, which was brought by Battle Born last October. The decision likely paved the way for the US government to sell Bitcoin, which was valued at $4.4 billion at the time. The US Marshals Service is expected to manage the liquidation process, which, if confirmed, will be one of the largest sales of seized crypto in history. Further reading: Judge Rejects Man From Retrieving $750 Million of Bitcoin From Landfill

An IT engineer from Wales lost a decade-long legal battle to recover a hard drive containing 8,000 Bitcoins from a Newport landfill. The hard drive, accidentally thrown away in 2013, is now valued between $700-750 million. crypto.news reports: However, Judge Keyser KC ruled there were no "reasonable grounds" for the claim, citing environmental concerns and the council's ownership of the landfill contents. The landfill reportedly holds 1.4 million tonnes of waste, but Howells claims to have pinpointed the hard drive's location to a 100,000-ton section. Reacting to the ruling, Howells expressed frustration, calling it a "kick in the teeth," according to the BBC.

MicroStrategy's bitcoin holdings and a tech investment fund are commanding extraordinary premiums in U.S. markets, highlighting unusual price anomalies reminiscent of past market distortions. MicroStrategy shares are trading at more than double the market value of their main asset -- bitcoin holdings -- while closed-end fund Destiny Tech100 recently traded at 11 times its net asset value, down from 21 times earlier in 2024.

Similar market irregularities have emerged throughout history. In 1923, investor Benjamin Graham profited from a disconnect between DuPont and General Motors shares. During the 1929 bull market, closed-end fund Capital Administration Co. traded at a 1,235% premium to its net asset value. WSJ adds: The PalmPilot during the 1990s and early 2000s was a hand-held device and personal assistant that came with a touch-screen display and a stylus. Palm was the biggest maker of hand-held computer devices, with 70% market share, and it held its initial public offering in March 2000, about a week before the Nasdaq Composite Index's peak during the dot-com bubble.

Palm's shares jumped 150% on their first day of trading, giving Palm a stock-market value of about $53 billion. Palm was still 94%-owned by parent 3Com at the time. Yet on Palm's first day of trading, 3Com's shares fell 21%.

The funny part: According to the stock market, 3Com was worth about $23 billion less than the value of the Palm shares that 3Com owned. This made no sense, yet the valuations remained out of whack for months. In time, both stocks came down to earth, sanity prevailed and the world eventually moved on to smartphones.

MicroStrategy has transformed into a "bitcoin treasury company," investing billions in bitcoin through debt and equity issuance, driving its stock price up nearly 400% in 2024 despite declining software revenues and heightened financial risks. The Guardian reports: In the summer of 2020, as the Covid-19 pandemic upended economies around the world, an obscure U.S. software firm decided to diversify. MicroStrategy, whose head office is situated next to a shopping mall and metro station in Tysons Corner, Virginia, had decided the steady business of "software as a service" was not racy enough. Instead, it would branch out by investing up to $250 million in alternative assets -- "stocks, bonds, commodities such as gold, digital assets such as bitcoin or other asset types." Less than five years later, that bitcoin side hustle has gone stratospheric. MicroStrategy's share price has swollen twentyfold, lifting its market capitalization to almost $75 billion and catapulting the stock into the Nasdaq 100 index of top technology shares.

In 2024, North Korean state-sponsored hackers stole $1.34 billion in cryptocurrency across 47 attacks, marking a 102.88% increase from 2023 and accounting for 61% of global crypto theft. BleepingComputer reports: Although the total number of incidents in 2024 reached a record-breaking 303, the total losses figure isn't unprecedented, as 2022 remains the most damaging year with $3.7 billion. Chainalysis says most of the incidents this year occurred between January and July, during which 72% of the total amount for 2024 was stolen. The report highlights the DMM Bitcoin hack from May, where over $305 million was lost, and the WazirX cyberheist from July, which resulted in the loss of $235 million.

As for what types of platforms suffered the most damage, DeFi platforms were followed by centralized services. Regarding the means, the analysts report that private key compromises accounted for 44% of the losses, while exploitation of security flaws corresponded to just 6.3% of stolen cryptocurrency. This is a sign that security audits have a significant effect on reducing exploitable flaws on the platforms. However, stricter security practices in the handling of private keys need to be implemented.

El Salvador secured a $1.4 billion loan deal with the IMF after agreeing to scale back its bitcoin policies, making cryptocurrency acceptance voluntary for businesses and limiting public sector involvement. The deal aims to stabilize the country's economy, with bitcoin's recent rally boosting the value of El Salvador's holdings. The BBC reports: In 2021, El Salvador became the first country in the world to make bitcoin legal tender. This week, the cryptocurrency briefly hit a fresh record high of more than $108,000.

"The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies," the IMF announcement said. "Legal reforms will make acceptance of Bitcoin by the private sector voluntary. For the public sector, engagement in Bitcoin-related economic activities and transactions in and purchases of Bitcoin will be confined." Last Friday, El Salvdaor purchased more than 11 BTC worth $1.07 million and executed another 11 BTC purchase on Sunday, according to crypto data platform Arkham. El Salvador's President, Nayib Bukele, is ramping up buys "with an interim goal of acquiring 20,000 more Bitcoin," reports the Daily Hodl.

Craig Wright, an Australian computer scientist living in the UK, has been found guilty of contempt of court for persistently and falsely claiming to be Bitcoin's creator, Satoshi Nakamoto, despite a High Court ruling against his claim. He has been sentenced to 12 months in prison, suspended for two years, and faces jail if he continues his assertions. The BBC reports: [...] Wright, who appeared via videolink, refused to disclose where he was, saying only he was in Asia. It means an international arrest warrant would have to be issued if the UK authorities wanted to detain him.

Wright's actions were described in court as "legal terrorism" that "put people through personal hell" in his campaign to be recognised as Bitcoin's inventor. The judge, Mr Justice Mellor, said Wright arguments were "legal nonsense" but acknowledged that he was not in the UK and "appears to be well aware of countries with which the UK does not have extradition arrangements".

An anonymous reader quotes a report from CNBC: Legislation was introduced in the Texas House of Representatives on Thursday to establish a strategic bitcoin reserve, which could serve as a proving ground for the U.S. Treasury. The proposed bill would enable the state to start building a strategic bitcoin reserve by accepting taxes, fees and donations in bitcoin that would be held for a minimum of five years, Republican state Rep. Giovanni Capriglione announced on an X Spaces event Thursday.

The Texas bill aims to provide a way to strengthen the state's fiscal stability and establish it as a leader in bitcoin innovation, according to the Satoshi Action Fund, a nonprofit bitcoin advocacy group that worked with Capriglione on the bill. "Probably the biggest enemy of our investments is inflation," Capriglione said. "A strategic bitcoin reserve, investing in bitcoin, would be a win-win for the state." "I just filed the bill ... entitled 'An act relating to the establishment of a bitcoin reserve within the state treasury of Texas and the management of cryptocurrencies by governmental entities,'" he said later. "My goal is to make this bill as big and as broad as possible," Capriglione said. "This initial step is to allow some optionality and flexibility on it, but if I am able to get support from other legislators, we will make it even stronger."

It's "unlikely" a U.S. strategic bitcoin reserve will be established, "but it helps get animal spirits back into the market," Needham's John Todaro told CNBC. He said it's also "unlikely to drive material price gains, as we do not expect the U.S. government will purchase bitcoin in any meaningful capacity, but it's an item that drives excitement and optimism."