Illinois Bitcoin Bill, Tesla Gains, KuCoin Settlement & DOGE ETF

January 31, 2025

Crypto World

Maciej Zerelik

StealthEX and CryptoDaily bring you the biggest crypto news every week. No jargon, no fluff—just the key updates you need. Markets shift, trends emerge, and major moves happen fast. We break it all down so you stay ahead. Want the latest insights? Let’s jump in!

Illinois Moves to Create State Bitcoin Reserve, Joining National Trend

Illinois is taking a bold step toward digital asset adoption. A newly proposed bill aims to establish a state-controlled Bitcoin reserve, following similar efforts in Texas, Indiana, and other states.

State Representative John M. Cabello introduced House Bill 1844, also called the Strategic Bitcoin Reserve Act. The legislation seeks to position Bitcoin as a financial safeguard, offering protection against inflation and economic uncertainty. The proposal highlights Illinois’ commitment to innovation and financial security through digital assets.

If passed, the Illinois State Treasurer would manage the Bitcoin reserve. The fund could accept Bitcoin donations from both government entities and private residents. Any Bitcoin acquired would be held for at least five years before being eligible for sale or conversion. The bill also grants the State Treasurer authority to implement rules for handling the reserve. Illinois would become the first state with an official Bitcoin reserve plan if the legislation is approved.

Other states are exploring similar measures. Indiana has proposed a bill focusing on blockchain integration within government operations. The state is also considering investing public funds in Bitcoin exchange-traded funds (ETFs). Meanwhile, Utah, Arizona, and Texas are advancing legislation to incorporate Bitcoin and other digital assets into their financial strategies.

Bitcoin Demand Surges as MicroStrategy and ETFs Buy Billions

Michael Saylor, Chairman of MicroStrategy, announced that the company acquired 11,000 BTC for $1.1 billion. This pushes their total holdings to 461,000 BTC. But MicroStrategy isn’t stopping there. Shareholders recently approved a massive increase in authorized shares, expanding from 330 million to 10.33 billion. If even a fraction of these shares were issued, some analysts predict Bitcoin could skyrocket to $564,000.

Meanwhile, institutional demand continues to grow. U.S. Spot Bitcoin ETFs absorbed 31,660 BTC in just four trading days, representing $3.16 billion in net inflows. This aggressive accumulation is reducing the available supply, fueling speculation about future price movements.

At the same time, reports suggest that at least 10 U.S. states are considering legislation to establish Bitcoin reserves. There’s also speculation that the U.S. government itself could be looking into a Bitcoin treasury. With only 21 million BTC ever available—and millions already lost—Bitcoin’s scarcity is becoming even more evident.

If governments start acquiring Bitcoin en masse, a global race for the hardest form of money could begin. The first to act may gain a massive advantage, leaving latecomers struggling to secure their share of this finite asset.

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El Salvador Expands Bitcoin Reserves Despite IMF Agreement

El Salvador remains committed to its Bitcoin strategy. Despite an agreement with the International Monetary Fund (IMF) requiring reduced government involvement in crypto initiatives, the country has added 12 more BTC to its holdings.

The National Bitcoin Office confirmed the recent purchases, showing that the government continues to view Bitcoin as a strategic asset. The IMF deal, worth $1.4 billion, led to changes such as making Bitcoin acceptance voluntary for businesses and limiting state participation in the Chivo wallet. However, key officials insist that El Salvador’s Bitcoin plans remain on track.

The latest acquisitions took place over two days. On January 19, the country bought 11 BTC for over $1 million, followed by another BTC purchase worth $106,000 the next day. This brings El Salvador’s total Bitcoin reserves to 6,044 BTC, now valued at approximately $610 million.

Critics argue that these funds could be used for social programs instead. However, President Nayib Bukele’s administration views Bitcoin as a tool for economic independence. The country’s Bitcoin reserves have surged in value, adding $179 million to its portfolio in just days, reinforcing the government’s long-term vision for cryptocurrency adoption.

Tesla Gains $600M on Bitcoin Holdings Under New Accounting Rule

Tesla has reaped significant benefits from a recent accounting rule change, reporting a $600 million paper gain on its Bitcoin holdings in the fourth quarter of 2024. The company’s digital assets remained untouched, keeping Tesla among the top corporate holders of BTC.

The automaker’s earnings report revealed that its 9,720 BTC were valued at $1.07 billion by year-end, a substantial increase from the previous $184 million valuation. The surge in reported value was made possible by a revised accounting rule that allows companies to adjust the market value of their digital assets every quarter. Before this change, businesses had to record digital assets at their lowest valuation, only recognizing gains when selling.

Bitcoin’s price explosion contributed to Tesla’s windfall. The cryptocurrency has climbed over 50% since November 2024, fueled by Donald Trump’s election victory and strong inflows into Bitcoin ETFs. BTC shattered the $100,000 milestone in Q4 and reached a new all-time high of $109,000 on January 20. Currently, Bitcoin is trading around $104,300.

While Bitcoin Treasuries data lists Tesla’s holdings at 9,720 BTC, Arkham Intelligence suggests the company actually owns 11,500 BTC worth $1.21 billion. If accurate, this would place Tesla as the fourth-largest corporate Bitcoin holder, trailing MicroStrategy, Marathon Digital, and Galaxy Digital.

The digital asset boost helped Tesla report a GAAP net income of $2.3 billion for Q4, bringing total earnings for 2024 to $7.1 billion. Despite the strong financials, adjusted earnings-per-share came in at $0.73, slightly below the expected $0.76.

Floki Partners with CoinGecko for Major Marketing Push

Floki is set to launch a massive three-month marketing campaign in collaboration with CoinGecko, one of the most influential cryptocurrency data platforms. Starting on January 31, the campaign will introduce the Floki Trading Bot to millions of crypto users worldwide.

CoinGecko’s vast network provides the perfect stage for this initiative. With over 167 million monthly pageviews and 111 million users, the platform will help amplify Floki’s reach. The campaign will also leverage CoinGecko’s strong social media presence, mobile app audience, and coverage of more than 16,000 crypto assets across 1,000+ exchanges.

Floki’s promotional strategy includes high-visibility placements like Top Leaderboard Banners, Row Banners, and in-app ads, collectively expected to generate over 12.9 million impressions. Additional exposure will come from dedicated YouTube content, mobile notifications, and social media promotions on platforms such as Facebook, Instagram, and X.

The Floki Trading Bot is designed to simplify crypto trading via Telegram. It supports multiple blockchains and offers a user-friendly interface. A 1% trading fee applies, with half allocated to burning FLOKI tokens to maintain its deflationary model, while the other half funds ecosystem growth.

Bitwise Files for Dogecoin ETF, Aiming for SEC Approval

Bitwise has officially moved to launch a Dogecoin ETF, filing an S-1 document with the U.S. Securities and Exchange Commission (SEC). If approved, the fund would provide direct exposure to DOGE, allowing investors to track its price without directly holding the asset.

The filing, dated January 28, marks a significant step toward bringing Dogecoin into the regulated financial market. Bloomberg ETF analyst James Seyffart first reported the development, highlighting Bitwise’s push to expand crypto-based investment products.

To gain regulatory approval, Bitwise will also need to submit a 19b-4 filing, a necessary step for SEC review. The proposed ETF names Coinbase Custody as its custodian, aligning with industry trends. However, details such as the fund’s ticker, fee structure, and listing exchange remain undisclosed.

If greenlit, this ETF could mark a milestone for Dogecoin, further legitimizing it as a mainstream digital asset.

Pro-Crypto Billionaire Scott Bessent Confirmed as US Treasury Secretary

The US Senate has confirmed Scott Bessent as the new Treasury Secretary in a rare display of bipartisan support. Backed by 16 Democrats, the final vote stood at 68-29, marking a significant victory for the Trump administration.

Bessent, a billionaire hedge fund manager, is a vocal advocate for cryptocurrency and a staunch opponent of central bank digital currencies (CBDCs). His appointment signals a shift in financial policy, with a potential focus on integrating digital assets into the economy.

Nominated in November, Bessent steps into his role with extensive experience in global finance. As the 79th Treasury Secretary, he will oversee key areas like tax collection, the $28 trillion Treasury debt market, financial regulations, and international sanctions. His belief in crypto’s long-term potential suggests a regulatory framework for digital assets could be on the horizon.

Bessent is expected to push Trump’s economic agenda, prioritizing tax cuts and trade tariffs. He warned that failing to extend expiring tax breaks would hurt middle-class Americans and argued that tariffs could strengthen US trade leverage.

KuCoin Pleads Guilty, Agrees to $300M Settlement and US Exit

KuCoin has admitted to running an unlicensed money-transmitting business and will pay a $300 million settlement. The agreement includes a two-year exit from the US market and the resignation of its founders, Eric Tang and Michael Gen, who will forfeit $2.7 million.

The cryptocurrency exchange faced charges for violating anti-money laundering laws, and failing to implement proper Know Your Customer (KYC) and Anti-Money Laundering (AML) measures. The settlement, announced on January 27, includes the forfeiture of $184.5 million and an additional $112 million fine. KuCoin, operated by PEKEN Global Ltd., had been under investigation for allegedly facilitating the laundering of up to $9 billion.

The US Justice Department and Commodity Futures Trading Commission led the case, accusing the platform of failing to comply with the US Bank Secrecy Act. The exchange had previously settled a similar lawsuit in New York, paying $22 million in fines and refunds. In that case, KuCoin agreed to halt operations in the state after being accused of falsely presenting itself as a crypto exchange without proper registration.

Despite the latest legal troubles, KuCoin assured users that its global operations will continue as usual. In a statement, the company said the settlement provides clarity for its future, reinforcing its focus on compliance and innovation for its 38 million users worldwide.

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.