On February 11th, U.S. stock markets closed mixed, with the Dow Jones and S&P 500 posting slight gains, while the Nasdaq declined. Futures markets signaled a minor downward adjustment. Oil prices settled at $73 per barrel, and gold adjusted to $2,919 per ounce.

Bitcoin experienced a pullback, stabilizing around $95,000, with most altcoins also seeing corrections. The total crypto market capitalization decreased to $3.26 trillion.

U.S. spot Bitcoin ETFs saw net outflows of $56.7 million, with most funds losing capital. However, BlackRock’s IBIT remained an exception, recording an inflow of $23.8 million. Meanwhile, spot Ethereum ETFs continued to see positive inflows, with BlackRock’s ETHA fund attracting $12.6 million.

Goldman Sachs' latest 13F filings (as of December 31, 2024) reveal a substantial increase in its Bitcoin ETF holdings during Q4. The firm increased its IBIT holdings by $1.27 billion (24.08 million shares), marking an 88% quarterly increase. Additionally, it boosted its stake in FBTC by $288 million (3.53 million shares), a 105% rise.

With institutional demand growing, Bloomberg analysts James Seyffart and Eric Balchunas project high approval odds for several altcoin ETFs. Litecoin is estimated to have a 90% chance of approval, followed by Dogecoin at 75%, Solana at 70%, and XRP at 65%. The SEC has a maximum of eight months to issue a final decision on these applications, though approval could come earlier.

FED Chairman Powell Testifies Before Congress

Federal Reserve Chairman Jerome Powell appeared before the Senate on Tuesday, reaffirming the Fed’s commitment to reducing inflation while emphasizing that interest rate cuts are not imminent. He described the U.S. economy as "broadly strong" with a "solid" labor market but warned that easing policy too soon could undermine progress in controlling inflation. Conversely, waiting too long to cut rates could stifle economic growth and job creation.

On trade policy, Powell declined to comment on Trump’s proposed tariffs, stating that the Fed does not set trade policies but reacts to their economic impact. Market expectations suggest the Fed will maintain current interest rates at least until the summer.

While crypto was not a primary topic in the testimony, Powell briefly addressed the increasing trend of crypto-related firms losing access to banking services. He expressed surprise at the number of affected firms and committed to reviewing the situation. Additionally, he reiterated that the Fed has no plans to pursue a central bank digital currency (CBDC).

Most of Powell’s testimony focused on banking system oversight rather than monetary policy. He is scheduled to testify before the House of Representatives on Wednesday, though his statements are expected to remain consistent.

Trump’s Regulatory Shift: A More Crypto-Friendly SEC & CFTC?

Sources confirm that President Trump has selected Brian Quintenz, former CFTC commissioner and current Head of Policy at a16z Crypto, to be the next official Chairman of the CFTC. While the White House has not yet issued an official statement, acting CFTC Chair Caroline Pham has already congratulated Quintenz.

Trump has also become the first U.S. president to launch a cryptocurrency. SEC Commissioner Hester Peirce commented on concerns that this might complicate regulatory oversight, clarifying that the SEC evaluates tokens based on specific circumstances rather than their issuers. While the recent surge in meme coins has raised regulatory questions, Peirce believes most of these tokens likely fall outside current SEC jurisdiction.

Under former SEC Chairman Gary Gensler, the agency aggressively pursued enforcement actions against crypto firms, including Coinbase. However, Coinbase is in a unique legal position compared to other crypto firms facing litigation. Last month, Judge Failla paused the SEC's lawsuit against Coinbase, allowing the company to appeal and determine whether existing securities laws apply to digital assets traded on its platform.

The SEC faces a February 14 deadline to respond to Coinbase’s appeal request. The agency has four options:

1. Oppose the appeal, maintaining Gensler’s stance that securities laws apply broadly to crypto.
2. Allow the appeal, signaling willingness to clarify crypto’s regulatory framework.
3. Request an extension, delaying the decision.
4. Drop the lawsuit, ceasing enforcement actions against Coinbase.

Acting SEC Chairman Mark Uyeda is unlikely to take a definitive stance before a permanent chairman is appointed. The most probable outcome is either a delay (option 3) or a willingness to engage in legal clarification (option 2). If Congress or the CFTC intervenes, the SEC’s role in regulating crypto assets could diminish further.

Institutional Bitcoin Accumulation and Crypto Market Developments

Institutional players continue increasing Bitcoin holdings despite regulatory uncertainty. KULR Technology Group recently purchased an additional $10 million worth of Bitcoin at an average price of $103,095, bringing its total holdings to 610.3 BTC.

Japanese mobile game developer Gumi Inc. announced plans to buy ¥1 billion ($6.58 million) worth of Bitcoin. Meanwhile, Trump-affiliated World Liberty Fund acquired 1,917 ETH ($5 million) and 830,469 MOVE tokens ($470,000).

On the legal front, Binance and the SEC jointly filed a request to pause their ongoing lawsuit for 60 days. The SEC recently formed a dedicated crypto task force to develop clearer regulations, and its findings could influence the outcome of the case.

Meanwhile, Charles Schwab has expanded trading hours for stocks and ETFs to 24 hours a day, five days a week. While stock markets remain closed on weekends, this move reflects a shift toward continuous trading. Traditionally, major financial news breaks outside market hours, causing significant volatility in crypto, which operates 24/7.

Solana Continues Dominating DEX Trading

Solana remains the leading blockchain for decentralized exchange (DEX) trading, processing over $60 million in transaction volume this month—nearly double Ethereum’s $34 million. Since October, Solana has consistently outperformed Ethereum in DEX volume, peaking in January 2025 with $258 billion in trading activity, compared to Ethereum’s $86 billion.

Despite lower transaction fees, Solana generated $25 million in monthly revenue, surpassing Ethereum’s $16 million. This surge has supported the SOL-ETH trading pair, which peaked at 0.09 before settling at 0.075.

The Future of U.S. Crypto Regulation

The regulatory landscape for crypto in the U.S. is shifting rapidly. While Powell’s testimony offered no definitive stance on crypto, his acknowledgment of banking restrictions on crypto firms suggests growing awareness within the Fed.

With Trump reshaping financial regulatory agencies, the SEC's aggressive stance under Gensler may soften, paving the way for clearer rules on crypto ETFs, securities classifications, and institutional involvement.

The coming months will be pivotal in determining how the U.S. government and its financial institutions position themselves in the crypto space. Whether through ETF approvals, institutional accumulation, or regulatory reforms, crypto is no longer a fringe asset—it is becoming an integral part of the financial system.

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