Trump Outlines Strategic Crypto Stockpile, SEC Crypto Task Force Takes Shape, and NASDAQ Approves HBAR ETF

Takeaways

• Trump announced plans for a US strategic crypto reserve over the weekend that will include XRP, Solana, Cardano, Bitcoin, Ethereum and more: The revelation sparked immediate price surges for the crypto market, followed by a price downturn the next day, before mounting a sizable rally mid-week in anticipation of a Friday White House event that could outline the strategic stockpile strategy.
• The SEC announced members of a new crypto task force created to develop practical regulatory solutions for digital assets: The team of agency veterans and industry experts will be led by Commissioner Hester Peirce. It aims to help create a regulatory environment that meshes with the crypto landscape.
• Nasdaq has submitted a 19b-4 filing for Grayscale’s spot Hedera ETF, signaling progress in altcoin ETF approvals: The development follows similar filings and comes as the US sees a surge in diverse crypto ETF proposals.
• Ethereum’s Pectra upgrade has been activated on the Sepolia testnet as the final phase before mainnet launch: The upgrade delivers enhancements to scalability and security, with a mainnet rollout targeted for early April.
• US Senate says no to expanding SEC’s DeFi tax rule: The Senate voted Wednesday by a 70-27 margin to overturn the expansion of an IRS rule that sought to make decentralized finance companies subject to brokerage tax reporting requirements.

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Trump Unveils Plans for US Crypto Reserve

President Donald Trump revealed plans over the weekend for a much-anticipated US strategic crypto reserve encompassing a range of digital assets.

In his initial announcement on Truth Social, Trump mentioned XRP, Solana and Cardano as the first components of a reserve. Soon after, he clarified that bitcoin and ethereum will also be part of the reserve, easing concerns among BTC and ETH supporters who feared these assets were overlooked. Crypto prices spiked following the news, then retreated the next day, before rallying again mid-week amid a volatile price environment.

A digital assets reserve is a key component of Trump’s broader vision to position the US as the global leader in digital asset management. It follows an executive directive to form a presidential working group on digital asset markets. The announcement coincides with growing momentum for congressional proposals and state-level initiatives to establish crypto reserves.

Trump is expected to reveal his full strategy for the strategic crypto stockpile at the White House on Friday.

SEC Launches Crypto Task Force To Shape Future Regulations

The SEC has assembled a new crypto task force aimed at forging a balanced approach to digital asset regulation. Led by Commissioner Hester Peirce, a staunch advocate for clearer crypto rules, the task force aims to develop “workable solutions” to address the challenges posed by the rapidly evolving digital asset market. Among the key appointees are Richard Gabbert, a longtime SEC staffer and former counsel for Peirce who will serve as chief of staff, and Michael Selig as chief counsel.

The task force includes industry specialists such as Landon Zinda from Coin Center and Veronica Reynolds, an attorney formerly at BakerHostetler with expertise in NFTs and metaverse regulations. While the SEC has not yet detailed specific initiatives, announcements of new appointments to the task force signal a concerted effort to bridge traditional securities law in line with emerging crypto frameworks.

Nasdaq Files 19b-4 for Grayscale’s Hedera ETF Amid Altcoin ETF Momentum

Nasdaq Stock Market LLC has filed a 19b-4 form with the SEC on Monday for Grayscale’s spot Hedera ETF, paving the way for its listing and trading. The filing, the second stage in the ETF approval process, will be published in the Federal Register once acknowledged, initiating the SEC’s formal review. The submission comes just after a similar filing for Canary Capital’s spot HBAR ETF.

Hedera is a decentralized public network using the Hashgraph consensus algorithm and is governed by a council comprising major companies including Google and IBM. In recent months, issuers have also proposed spot ETFs for Solana, Ripople, Cardano, Litecoin and Dogecoin, with the NYSE recently filing a 19b-4 for a Dogecoin ETF. Market participants expect more success with this most recent wave of filings, with the context of a more collaborative regulatory environment potentially increasing the chances of approval.

Ethereum’s Pectra Upgrade Deploys on Sepolia Testnet

In a major step toward mainnet deployment, Ethereum developers activated the Pectra upgrade on the Sepolia testnet on Wednesday. The activation marks the final testing stage before the upgrade is rolled out on Ethereum’s main network, with a mainnet fork potentially scheduled for early April. The Pectra upgrade, named by merging “Prague” with “Electra,” introduces enhancements aimed at boosting scalability, security, and user experience. Notable improvements include better wallet usability and an increase in the maximum validator stake limit from 32 to 2,048 ether.

This phase of Sepolia follows a troubled initial rollout on the Holesky testnet on February 24- incorrect deposit contract addresses caused chain splits and delays. Despite these setbacks, the Ethereum team has resolved the issues and proceeded with the Sepolia deployment as planned.

Senate Approves Overturning DeFi Tax Reporting Rule

The US Senate voted Wednesday by a 70-27 margin to overturn the expansion of an IRS broker rule that would make decentralized finance companies subject to more stringent tax reporting requirements starting in 2027. Senator Ted Cruz (R-Tex.) introduced the resolution under the Congressional Review Act, a statute that allows Congress to undo rules set forth in the final days of the preceding administration. It received bipartisan support.

“It’s a powerful statement of the importance of crypto. I think crypto was one of the major issues in the last election,” Cruz said. “We just saw a really strong bipartisan repudiation of that regulation.”

The resolution will head to a vote in the US House of Representatives and if passed, will then go to President Donald Trump where it can be signed into law. The House Financial Services Committee has introduced the measure and said it is ready for a floor vote. The news comes after President Trump’s initial crypto executive order called for the repeal of the SEC’s SAB 121- a law that required financial institutions to list digital assets as a liability on their balance sheets.

-The Gemini Team