Q1 2025: Five stories that shaped cryptocurrency
Quarterly retrospective covering January 1–March 31, 2025. Dated March 31, 2025. Stories selected for market impact, regulatory significance, and consequences for cryptocurrency infrastructure.
1. The United States establishes a Strategic Bitcoin Reserve
President Donald Trump signed an executive order on March 6 establishing a Strategic Bitcoin Reserve and a separate Digital Asset Stockpile. The reserve was to start with eligible bitcoin already held by the federal government through forfeiture proceedings, with deposited bitcoin retained as a reserve asset. Treasury and Commerce were authorised to explore additional acquisitions through budget-neutral strategies. The decision elevated Bitcoin’s role in national financial policy, while leaving an important distinction between retaining confiscated coins and committing taxpayer money to an open-market buying programme. Source: White House, March 6.
2. Bybit suffers a $1.5 billion theft attributed to North Korea
The February 21 attack on Bybit became the quarter’s defining cryptocurrency security incident. In a February 26 alert, the FBI attributed the theft of approximately $1.5 billion in virtual assets to North Korean actors it tracks as TraderTraitor. The agency said some stolen assets had already been converted into bitcoin and other currencies and dispersed across thousands of addresses on multiple blockchains. Its appeal for coordinated action by exchanges, bridges, infrastructure providers, and analysts highlighted both the scale of the theft and the difficulty of containing stolen funds once they cross platforms and networks. Source: FBI Internet Crime Complaint Center, February 26.
3. The SEC ends its enforcement case against Coinbase
The SEC announced on February 27 that it was dismissing its civil enforcement action against Coinbase, marking a major change in its approach to the cryptocurrency industry. The agency said the decision supported its effort to reform its regulatory framework and was not an assessment of the merits of its allegations. For exchanges and token issuers, the significance was the retreat from a prominent lawsuit as the SEC pursued a different policy direction. The dismissal resolved that action without creating a universal determination of how every digital asset should be classified. Source: SEC, February 27.
4. The SEC reverses its crypto-custody accounting guidance
On January 23, SEC staff issued Staff Accounting Bulletin 122, rescinding the earlier SAB 121 guidance on obligations to safeguard customers’ crypto assets. Under the replacement approach, firms were directed to assess potential loss liabilities using existing accounting standards for contingencies and to continue disclosing their custody obligations. The change was significant for institutions evaluating cryptocurrency custody because it altered how safeguarding responsibilities were treated in financial reporting. It addressed accounting guidance rather than replacing the separate operational, regulatory, and security requirements involved in holding assets for customers. Source: SEC Staff Accounting Bulletin 122, January 23.
5. Bitcoin sets an inauguration-day record amid political enthusiasm
Bitcoin rose above $109,000 on January 20, hours before Donald Trump’s inauguration, as investors anticipated a more supportive U.S. approach to digital assets. Associated Press reported that the industry was looking for changes in enforcement, regulation, and government cryptocurrency holdings after campaigning heavily for the new administration. The rally captured the quarter’s early optimism and the growing influence of political expectations on market prices. It also set a benchmark against which investors would judge whether policy announcements translated into sustained adoption and demand. Source: Associated Press, January 20.