It looks like it's been a busy week (even a busy fortnight) for the cryptosphere, what with Trump declaring US crypto dominance and the lawsuit against Ripple being dropped. Not only that, but the market continues to bleed as investors and traders withdraw a record 6.4 Billion USD worth of Bitcoin and Ethereum.

Key Takeaways:

• President Donald Trump Addressed the Digital Asset Summit in Manhattan: The POTUS praised the industry and expressed optimism for its future: “Together, we will make America the undisputed Bitcoin superpower and the crypto capital of the world.”
• The SEC has dropped its lawsuit against Ripple after a four-year legal battle: The case had been one of the most high-profile cases against a crypto firm. Ripple’s victory has been hailed by the community as a positive signal for digital assets.
• Global crypto funds recorded their worst-ever five-week outflow streak, reaching $6.4 billion: US investors led withdrawals, with Bitcoin and Ethereum-based products posting losses.
• The SEC, under Mark Uyeda, is reconsidering Gensler-era crypto custody rules and broader regulatory measures: A more collaborative approach has replaced aggressive enforcement, with industry engagement now being a priority.

President Donald Trump Addressed the Digital Asset Summit (DAS) in Manhattan

In a recorded address to attendees of the DAS in Manhattan, the POTUS continued to affirm his support for the crypto industry, describing it as “as big as you can get.” He restated his administration’s efforts in fostering a more crypto-friendly environment, and said that certain regulatory measures taken against crypto had gone “far beyond regulation”.

“We’re ending the last administration’s regulatory war on crypto and Bitcoin, and that includes stopping the lawless Operation Choke Point. Operation Choke Point went beyond regulation, and I mean far beyond. Frankly, it was a disgrace, but as of January 2025, all of that is over.”

The President’s remarks were well received by attendees of the DAS, and have helped restate the Trump administration’s commitment to collaborating with the industry. Since becoming the president in January, the POTUS has signed two executive orders relating to the crypto industry, and has formed the highly discussed strategic bitcoin reserve he talked about during the election campaign. However, Trump didn't talk about any new or future actions his administration will be taking.

The SEC has dropped its lawsuit against Ripple after a four-year legal battle

The SEC’s case against Ripple, which began in 2020 when the regulatory body accused Ripple Labs of selling its XRP token as an unregistered security, has finally come to an end this week. Ripple CEO Brad Garlinghouse announced the news on X on Wednesday, signing off the announcement with, “The future is bright. Let’s build.”

The case against Ripple was one of the largest against a crypto entity ever brought about by the SEC. According to Garlinghouse, Mary Jo White, former Chair of the SEC, publicly stated that the agency had been “dead wrong” in pursuing Ripple in this way. The price of Ripple’s XRP went up more than 10% on Wednesday, following the news.

The announcement comes at a time of reinvention for the SEC, with Mark Uyeda taking the reins as acting chair of the regulatory body after the resignation of Gary Gensler in January. The Trump administration has been quick to support changes to the SEC after years of a regulation-by-enforcement approach put in place under Gensler's leadership.

Ripple's legal victory redefines the place of digital assets, setting a precedent in regulatory frameworks for crypto in the USA.

“I’m finally able to announce that this case has ended. It’s over. Sitting here today and reflecting on four years ago, it seems very clear to me that this case was doomed from the start. Today is a victory and a long overdue surrender by the SEC. The SEC under chairman Gary Gensler went after the whole industry using the same arguments they used against us. They weren’t out to protect investors. They were out to intimidate and terrorize.”
 — Garlinhouse

Under Acting Chairman Mark Uyeda, the SEC has taken major steps to change its regulatory approach to crypto. The securities regulator has withdrawn from more than 10 prominent crypto enforcement cases, including those targeting Coinbase, Uniswap Labs, and Kraken, among others.

Global crypto funds recorded their worst-ever five-week outflow streak, reaching $6.4 billion:

Global cryptocurrency investment funds (CIFs) saw total outflows of approximately $1.7 billion last week (according to CoinShares), bringing the total five-week outflow streak to a record $6.4 billion. The sell-off has now lasted two and a half weeks, as factors including Trump’s newly imposed tariffs continue to cause fears and uncertainty in the market.

The assets under management (AUM) at these funds have dropped by $48 billion from their high point, now standing at $133.6 billion. The largest outflows came from US investors, which accounted for $1.16 billion of last week’s withdrawals. Funds in Germany, Brazil, Australia, and Hong Kong, however, reported small inflows.

Bitcoin-based products saw the largest outflows, with a little under $1 billion withdrawn last week, bringing the total five-week outflow to $5.4 billion. Despite the bearish feeling, some analysts have suggested that the pace of outflows has slowed, indicating this period of forced selling may be nearing its end.

Now might be a good time to buy, if you can afford to.

The SEC, under Mark Uyeda, is reconsidering Gensler-era crypto custody rules and broader regulatory measures

The US Securities and Exchange Commission (SEC) might revise or withdraw a controversial crypto custody proposal introduced under former Chair Gary Gensler, according to acting chair Mark Uyeda. Speaking at an investment conference early this week, Uyeda cited “significant concerns” from industry stakeholders over the proposal’s broad scope.

“Given such concern, there may be significant challenges to proceeding with the original proposal.”

The regulator mentioned he had directed the SEC staff to collaborate with the agency’s cryptocurrency task force to investigate alternatives, including withdrawing the rule altogether.

In 2022, former chair, Gary Gensler, created a proposal to expand custody rules, requiring investment advisers to store crypto assets with federal or state-chartered banks. However, with Uyeda now leading the SEC under the Trump administration, the agency has taken a more collaborative stance toward crypto regulation.

The SEC has revoked other prominent regulatory strictures from the Gensler era, including the revocation of Staff Accounting Bulletin (SAB) 121, which required banks to record crypto assets as liabilities. The SEC’s newly formed crypto task force, led by Commissioner Hester Peirce, is set to hold its first roundtable meeting today to discuss regulatory classification of digital assets.

That's all for now from me, folks. I hope you have a great day and keep HODLing that crypto; good things may well be on their way.