Donald Trump’s Plans For A US BTC Reserve Have Spurred Speculation That Other Nations Will Aim To ‘Front Run’ The Move - We Discuss BTC Adoption By Governments In Light Of Trump’s Election. The adoption of BTC by various levels of government, including nation states, has been a key bullish narrative for BTC. Since Donald Trump was elected to serve a second term, there has been increased speculation that the incoming US president’s embrace of the asset would spur further adoption of the asset. There has been evidence that this is playing out: - Vancouver's mayor, Ken Sim, has announced a proposal to include BTC in the city’s financial reserves. - The Pennsylvania Bitcoin Strategic Reserve Act, introduced in the state’s house of representatives earlier this month, seeks to allow the treasury to invest in BTC. - Brazilian Congressman Eros Biondini proposed a bill to establish a BTC reserve, allocating up to 5% of Brazil's international reserves, which amount to USD 372B, to BTC. We have often written that El Salvador’s embrace of BTC, a part of broader successful reforms, has normalized the idea of placing the asset at the centre of national economic policies. It is conceivable that factors such as the outperformance of El Salvador’s bonds has led other Latin American leaders to study the country’s BTC program. Trump’s embrace of BTC is likely to have a similar normalization effect only magnitudes greater considering the size of the US and its role in the global economy. In addition to speculating over which country will reveal a BTC adoption program to ‘front run’ the US, there has been speculation that Trump’s BTC policies could soften China’s harsh stance towards the asset. In October, we took note of Zhu Guangyao, China’s former finance minister, calling for the country to reassess its ban on crypto. The former official explained that crypto policy in the US has ‘changed significantly’ this year, and China should study its impact along with other global policy developments for the sector. Takeaway: For BTC proponents, the view that governments would adopt a sovereign-neutral asset that is easily custodied within national boundaries, has seemed intuitive for a long time. In 2024, the view that BTC is attractive to governments much like it is to individuals and corporations, is playing out. The trickle of headlines, such as a BTC reserve in Pennsylvania or the Vancouver mayor’s initiative, is sustaining expectations that the governmental embrace of BTC is set to continue as a major catalyst in this cycle.

- Hong Kong proposed a tax exemption for crypto gains to enhance its financial hub status. The exemption targets private equity, hedge funds, and investment vehicles, aiming to surpass competitors such as Singapore and Luxembourg. Separately, the Hong Kong Monetary Authority will 'subsidise some companies in issuing tokenised bonds in the local market.' - [link](https://www.scmp.com/tech/blockchain/article/3288542/hong-kong-offers-grants-boost-tokenised-bond-issuance-goal-become-crypto-hub) - @FT - BTC miner MARA Holdings increased its BTC holdings by 6,474, amounting to approximately USD 615M, following a USD 1B convertible note offering. The remaining proceeds from the note offering are earmarked for further BTC investments and other general corporate needs. - [link](https://x.com/MARAHoldings/status/1861848253362274469) - @MARA - Tether announced its plans to discontinue support for its EUR-pegged stablecoin, EURt. - [link](https://tether.io/news/tether-provides-an-update-on-prioritizing-community-preferences-for-blockchain-support-in-strategic-shift/) - @Tether - Cega, an on-chain exotic options protocol, has been acquired by an undisclosed leading platform and will shut down by the end of the year. - [link](https://www.theblock.co/post/328514/defi-derivatives-protocol-cega-to-sunset-platform-by-end-of-year-following-acquisition) - @TheBlock - Crypto exchange XT.com suffered a security breach leading to a loss of USD 1.7M. - [link](https://www.coindesk.com/business/2024/11/28/crypto-exchange-xt-is-hacked-for-1-7-m) - @CoinDesk - Bankrupt crypto lending platform Celsius plans to distribute an additional USD 127M to creditors soon from its ‘Litigation Recovery Account.’ - [link](https://cointelegraph.com/news/celsius-to-distribute-additional-127m-from-litigation-recovery-account) - @Cointelegraph - Onchain derivatives venue HyperLiquid launched HYPE, a native token, and planned an airdrop for early adopters. - [link](https://www.coindesk.com/business/2024/11/28/crypto-exchange-hyper-liquid-to-airdrop-310-m-tokens-to-early-adopters) - @CoinDesk

- Washington Post: [Crypto Leaders Press Trump To Create Federal Bitcoin Reserve](https://www.washingtonpost.com/business/2024/11/27/trump-strategic-bitcoin-reserve-plan/) - Bloomberg: [Bitcoin Resumes Advance, Rekindles $100,000 Milestone Optimism](https://www.bloomberg.com/news/articles/2024-11-27/bitcoin-btc-bounces-off-lows-rekindles-100-000-milestone-optimism) - WSJ: [Meet the Everyday Traders Riding MicroStrategy’s Furious Rally](https://www.wsj.com/finance/stocks/microstrategy-bitcoin-investors-00f14fdf)

- [Connecting the Dots](https://londoncryptoclub.substack.com/p/connecting-the-dots-0b7), London Crypto Club, November 24, 2024 - The London Crypto Club review the 'paradigm political shift' in the US following the resignation of Gary Gensler.

- [Vancouver Mayor To Propose 'Bitcoin-Friendly City' Plan](https://www.cbc.ca/player/play/video/9.6576795), CBC, November 27, 2024 - The CBC reviews mayor Ken Sim's motion to make Vancouver a 'Bitcoin-friendly city.'