Crypto Surge: Illinois Bitcoin Reserve, BlackRock ETP & More News

February 7, 2025

Crypto World

Maciej Zerelik

Big things are happening in crypto! StealthEX and CryptoDaily bring you the hottest updates every week. We keep it simple, fast, and clear. No fluff—just the key events you need to know. Want to stay ahead? We’ve got you covered with the latest trends and insights. Let’s dive in!

Illinois Pushes Forward with Bold Plan for State-Controlled Bitcoin Reserve

Illinois is taking a bold step toward Bitcoin adoption. A new bill proposes the creation of a state-controlled Bitcoin reserve, following similar moves in Texas, Indiana, and other states. This signals a growing interest in digital assets at the state level.

State Representative John M. Cabello introduced House Bill 1844, named the Strategic Bitcoin Reserve Act. The plan aims to use Bitcoin as protection against economic instability. Supporters believe it could help strengthen Illinois’ financial position while encouraging innovation in blockchain technology.

If passed, the bill would allow the Illinois State Treasurer to manage the Bitcoin reserve. The state could receive Bitcoin donations from individuals and government agencies. The reserve would hold Bitcoin for at least five years before any sale or transfer. The Treasurer would also have the authority to set regulations for the fund’s operation.

Illinois would be the first U.S. state to establish an official Bitcoin reserve, but it is not alone in exploring digital asset strategies. Indiana is working on a similar bill that includes investing public money in Bitcoin ETFs and studying blockchain use in government operations. Other states, including Utah, Arizona, and Texas, are also considering policies that involve digital asset investments.

U.S. Sovereign Wealth Fund Sparks Speculation on Bitcoin Inclusion

A major announcement from David Sacks has investors questioning whether Bitcoin will be part of the U.S. financial strategy. Sacks confirmed that a U.S. Sovereign Wealth Fund is in the works, fueling speculation about digital assets.

Before his election, Donald Trump expressed support for a strategic Bitcoin reserve. However, no concrete steps have been taken since he assumed office. Establishing a Sovereign Wealth Fund could provide an early opportunity for the U.S. to start accumulating Bitcoin, potentially gaining an edge over other nations in a growing race for digital assets.

Sacks has emphasized that stablecoins are a top priority. He also suggested that regulatory measures for digital assets could move through Congress within six months. His statements signal a shift in the U.S. approach to crypto, positioning the country for broader adoption.

Calling this a “golden age in digital assets,” Sacks highlighted Bitcoin’s unique role as a secure store of value. While details remain unclear, the possibility of Bitcoin being included in the fund has the crypto community watching closely.

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BlackRock to Launch Bitcoin ETP in Europe Amid Rising Institutional Demand

BlackRock is expanding its crypto footprint beyond the U.S. The world’s largest asset manager is preparing to launch a Bitcoin exchange-traded product (ETP) in Europe, responding to growing investor interest and evolving regulations.

The European Bitcoin fund is expected to be based in Switzerland, a country known for its favorable crypto policies. Marketing efforts are set to begin soon, with the product likely following the structure of BlackRock’s U.S.-based iShares Bitcoin Trust (IBIT), which has already amassed $58 billion in assets.

This move is part of BlackRock’s broader global strategy. The firm recently introduced a Bitcoin ETF in Canada, listed on Cboe Canada. That fund closely tracks Bitcoin’s performance while allocating assets to its U.S. counterpart. The upcoming European ETP is expected to offer a similar investment model, giving both institutional and retail investors a regulated way to gain Bitcoin exposure.

Despite Europe already hosting over 160 crypto-tracking products, the market still lags behind the U.S. in size. The introduction of BlackRock’s ETP could signal further growth.

SEC Eases Crypto Oversight, Reassigns Enforcement Team Under Trump Administration

The U.S. Securities and Exchange Commission (SEC) is scaling back its crypto enforcement efforts, signaling a shift in regulatory priorities. Staff from the agency’s dedicated crypto enforcement unit are being reassigned, marking a significant change in approach toward digital assets.

Previously, around 50 SEC lawyers and staff focused solely on enforcing cryptocurrency regulations. Now, many are being moved to other divisions. This decision follows an executive order from President Donald Trump aimed at promoting digital asset innovation by reducing regulatory barriers. The move suggests a more lenient stance on crypto businesses under the new administration.

As part of the restructuring, key legal personnel have been transferred out of the enforcement unit. At least one senior attorney has been reassigned, raising speculation about internal disagreements on the agency’s evolving crypto strategy. Some within the industry see these changes as a sign of deregulation, while others question how it will impact ongoing lawsuits and future oversight.

Coinbase Secures UK Approval, Strengthens Global Crypto Presence

Coinbase has received official approval to operate in the United Kingdom, marking a major milestone in its international expansion. The exchange secured Virtual Asset Service Provider (VASP) registration from the UK’s Financial Conduct Authority (FCA), allowing it to offer both crypto and fiat services in one of its key markets.

The UK plays a vital role in Coinbase’s global strategy. With its well-established financial sector and increasing interest in digital assets, the country provides a strong foundation for further growth. This approval reinforces Coinbase’s standing as a leading global exchange while broadening its reach beyond its U.S.-centric user base.

The FCA maintains strict oversight of digital asset firms, with only a limited number securing registration. Coinbase’s approval highlights its compliance with UK regulations, positioning it as the largest licensed crypto provider in the region. Previously, its UK subsidiary, Coinbase Payments, could only offer e-money services. Now, the exchange can fully operate in the UK’s crypto market, following an investigation into past regulatory breaches.

This latest achievement is part of Coinbase’s broader global expansion. Recently, the company secured regulatory approval in Argentina and reinstated Bitcoin-backed loans for U.S. customers. 

Trump Pauses Tariffs on Canada and Mexico, Easing Trade War Concerns

President Donald Trump has temporarily halted tariffs on Canada and Mexico for 30 days after both countries took steps to strengthen border security and combat drug trafficking. The move comes after days of uncertainty that rattled markets, leading to a major selloff earlier this week.

Trump announced the decision on social media, expressing optimism about a potential long-term agreement with Canada. Canadian Prime Minister Justin Trudeau confirmed the deal, outlining new measures, including appointing a fentanyl czar, labeling Mexican cartels as terrorist organizations, and launching a joint task force with U.S. authorities to fight organized crime and money laundering.

A similar agreement was reached with Mexico. Trump stated that after speaking with Mexican President Claudia Sheinbaum, the country agreed to deploy 10,000 soldiers along the U.S. border to curb illegal migration and fentanyl trafficking. In response, the U.S. will hold off on imposing new tariffs for one month while negotiations take place.

While the pause reduces immediate trade tensions, uncertainty remains. Trump has warned that tariffs could return if agreements are not met. He has also threatened tariffs on European imports, raising concerns about global trade stability. Economists caution that tariffs could slow growth, raise consumer prices, and strain international relations. However, Trump maintains that his policies are necessary to protect U.S. interests.

Elon Musk’s Father Joins Meme Coin Craze with ‘Musk It’ Project

Errol Musk, father of billionaire entrepreneur Elon Musk, has stepped into the world of meme coins. He recently announced his involvement with Musk It (MUSKIT), a Solana-based token, with the goal of raising between $150 million and $200 million for his new think tank, the Musk Institute.

Despite speculation that the project is leveraging Elon Musk’s fame, Errol dismissed the criticism. He insisted that he has long been the driving force behind the Musk name, stating, “I’ve been ‘Musking It’ for years.”

Originally launched by a Middle Eastern company in December 2024, Musk It struggled after an initial price spike, leading to concerns about it being a pump-and-dump scheme. However, following Errol’s endorsement, along with backing from technology consultant Nathan Browne, the coin surged to an all-time high of $0.09. Browne claimed that joining the project required assurances that it wouldn’t operate as a pump-and-dump. Yet, details about the token’s financial structure and future roadmap remain unclear.

Errol insists that Musk It serves a bigger purpose—funding engineering innovations at the Musk Institute. His vision includes projects such as flying cars, arguing that rockets alone are not the future of transportation. “We need to go beyond rockets,” he stated.

However, Elon Musk has no involvement in the project. The relationship between the two has been strained for years. Elon has publicly accused his father of being a terrible person, making serious allegations against him. Errol denies the claims but hinted that Elon recently reached out about Musk It after seeing media coverage.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.