Crypto markets are consolidating today as US President Trump meets Russian President Putin in Alaska.Everyone is curious about what's taking place behind the scenes. Questions you should be asking yourself. Why did Jerome Powell and the Federal Reserve just change the rules for Bitcoin and crypto? How massive is this for these assets? Why is BlackRock buying Ethereum like crazy? And find out why Treasury Secretary Scott Bessant is walking back his statements from yesterday about the US government buying Bitcoin. This shocked me, but it didn't surprise me. Jerome Powell and the Federal Reserve just announced they will be sunsetting their novel activities supervision program. That's right. Just 3 hours ago, it was announced the Fed is scrapping their oversight program for banks' crypto fintech activities. This move reflects growing confidence in banks' abilities to manage risks from digital assets within standard regulatory procedures. Guys, this might seem boring, but truly this is huge for money coming into this space. At Altcoin Daily, we always like to try to show you primary sources, so you don't have to take my word for it. You can read it directly on federalreserve.gov. Jerome Powell writes here and explains, "Since the board started its program to supervise certain crypto and fintech activities in banks, the board has strengthened its understanding of those activities, related risks, and bank risk management practices. As a result, the board is integrating that knowledge and supervision of those activities back into the standard supervisory process and is resending its 2023 supervisory letter creating the program. This makes me happy. To be honest, we knew this was coming. We've been following this story for quite some time, and we have known for several months that Jerome Powell's rhetoric has been softening on crypto. Here he calls regulation a good idea. How do you see the potential for more favorable regulations coming on them? I think that the climate is changing and you're moving into sort of more mainstreaming of, uh, that whole sector. So, Congress is again looking at it; both the Senate and the House are looking at a framework, a legal framework depending on what's in it. That's a good idea. We need that. There isn't one now. I also think some of you know, we took a pretty conservative, and other bank regulators took an even more conservative perspective on the guidance and rules we imposed on banks. I think there'll be some loosening of that, and I think we'll try to do it in a way that preserves safety and soundness but that, you know, permits and fosters appropriate, appropriate, innovation. So keep in mind one of the reasons why the news today is such a big deal is because it's more than a policy change. It's a rhetoric change. Like, for the Fed chair to come out and say banks are free to conduct crypto activities is truly just a shift from Bitcoin's first 14 years. Banks get to decide who their customers are. That's not our decision. So banks are free to provide banking services to the crypto industry and to crypto companies, and banks are also free to conduct crypto activities as long as they do so in a way that is, you know, protective of safety and soundness. So BlackRock, the largest financial institution on the planet, after launching the Ethereum ETFs a year or so ago, is now seeing its biggest inflows ever. Like if you take a look at the Ethereum ETF inflows, they're truly on a tear. 600 million flowed into ETH ETFs in just the past 24 hours. Fourth best ETH inflow day ever. 8 days straight of positive inflows. 2x more in fact than what's happening at Bitcoin at the moment. So yes, many people are buying Ethereum on this dip. This is the first cycle where people realize Ethereum isn't going away. Ethereum is here to stay. I see value in having an Ethereum ETF. As I said, these are just starting stepping stones towards tokenization. So, pick your spots. Pick your spots. BlackRock's not necessarily picking their spots. They're just buying here, here, here, here, here, here, and here. But you pick your spots. And of course, when we say BlackRock ETFs or the ETFs, that's BlackRock's clients buying the Ethereum or Bitcoin. It's still a big deal because guess who's selling these people the crypto? Black Rock. The reason for the call today, John, is something just came across my desk, John. It is perhaps the best thing I've seen in the last 6 months. If you have 60 seconds, I'd like to share the ad. US Treasury Secretary Scott Bessant— Is it Bessent or Bessant? Let me know in the comments. He is totally backpedaling from his a little bit cold Bitcoin statements the other day. Check out yesterday's video for the full story, but this is the pertinent clip. We've got this large gold holding. I doubt we're going to revalue it, but we are going to keep it there again as a store of value for the American people. We've also started to get into the 21st century, a Bitcoin strategic reserve. Uh, we're not going to be buying that, but we are going to use confiscated assets and continue to build that up. We're going to stop selling that. Well, he must have had a talk with Donald Trump and Elon Musk and David Sacks or the 10 to 20 other pro-Bitcoin people in the administration because he did want to make it clear today, and I love this. He says new Bitcoin purchases by the US government are very much still on the table. What does he know that is yet to be announced? So, yes, I'm a major buyer of Bitcoin here at around 117, and I would also for sure be a buyer around 112. Look how Bitcoin culture has changed this year compared to four years ago. Now it's mostly people in suits. Now it's mostly high-net-worth individuals, policymakers, fintech, and bankers. These are things we've been talking about for a while. So it's very enlightening to hear Eric Trump say, "I hear it from sovereign wealth funds. I hear it from the wealthiest families. I hear it from the biggest companies. Uh, I mean the adoption of it is incredible. I told the story when I was at Mina in Abu Dhabi, and I told the story right before I got there. A good buddy of mine runs one of the biggest banks in America. You could probably guess, which one it is. They run a very, very large office for that bank in the wealthiest suburb of New York, right in Greenwich, Connecticut. And he always said a year ago he was saying, "Hey, Bitcoin's funny money. Crypto is funny money." The other day he goes, "Eric, where do I buy this?"—this incredible kind of, you know, cryptocurrency.
Where do I buy Bitcoin?
How do I get into this world? And so, every single day, guys, I'm telling you, people who were kind of staunchly against it, people who didn't understand it, people who were closed-minded, and people who were kind of rhinos to traditional finance are coming around in a massive way. And I think the kind of spike in Bitcoin is going to be significant. And therefore, it really is kind of a race to the top right now.
