Bitcoin Price Climbs on Inauguration Day Followed by High-Profile Pardons, SEC Reforms & Dangerous Crypto Kidnapping

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  • Jan 24, 2025

Bitcoin Punches Through Record Highs on Inauguration Day

On January 20th, coinciding with Inauguration Day and Martin Luther King Jr. Day, bitcoin surged to a new all-time high, reaching $108,899 .

For long-term holders, this valuation not only falls short of bitcoin's intrinsic worth but also underscores the remarkable and growing recognition of its value.

Silk Road Founder Ross Ulbricht Granted Full Presidential Pardon

In 2013, Ross Ulbricht , the creator of Silk Road, a bitcoin-based dark web marketplace, was arrested. He was subsequently convicted on multiple charges, including drug trafficking, money laundering conspiracies, and computer hacking. In 2015, Ulbricht received a life sentence in federal prison without the possibility of parole.

On January 21, 2025, President Donald Trump granted Ulbricht a full and unconditional pardon , officially nullifying his Silk Road-related convictions.

Trump cited the strong support from America’s libertarian movement as the motive for Ulbricht's pardon. The act was hailed by criminal justice reform advocates as a pivotal moment in acknowledging the complexities of digital entrepreneurship and personal freedom. The pardon remains controversial , eliciting strong reactions from critics.

“Bye, bye SAB 121! It's not been fun.” - Hester Peirce

The Securities and Exchange Commission (SEC) introduced SAB 122 , effectively repealing SAB 121 and bringing an end to what industry insiders refer to as "Chokepoint 2.0.”

This pivotal change removes previous guidance on accounting for obligations to safeguard crypto-assets held for users. With SAB 122, banks are now empowered to offer custody services for digital assets.

Additionally, SAB 122 mandates continued transparency through clear disclosures, ensuring investors understand the obligations related to crypto-asset safeguarding. This regulatory shift will enhance the integration of traditional banking services with the rapidly growing digital asset market, fostering greater innovation and trust in the financial sector.

Lummis Appointed Chair of Digital Asset Subcommittee

Bitcoin OG, Wyoming Senator Cynthia Lummis, was appointed to lead the newly established Senate Banking Subcommittee on Digital Assets. The subcommittee announced two focus areas:

  1. Passing bipartisan digital asset legislation that promotes responsible innovation and protects consumers, including market structure, stablecoins and a strategic bitcoin reserve.

  2. Conducting robust oversight over Federal financial regulators to ensure those agencies are following the law, including by ensuring Operation Chokepoint 2.0 never happens again.

Regarding the appointment, Senator Lummis stated , “I look forward to working with President Trump and my colleagues to pass bipartisan bitcoin and digital asset legislation in the coming months.”

Ledger Wallet Co-Founder Abducted, Finger Severed in Brutal Attack

On January 21, David Balland, co-founder of crypto hardware wallet Ledger, and his wife, were abducted in France.

An intense 48-hour manhunt led by the GIGN and Paris prosecutors ended in their safe release and the arrest of eight suspects. The kidnappers, who demanded a substantial ransom in cryptocurrency and mutilated Balland by severing a finger, were successfully apprehended.