America’s least populous state has passed three dozen laws regulating crypto. That has helped attract crypto, blockchain and Web3 employers and made the No. 7 spot in CoinDesk’s Crypto Hubs 2023 the most crypto-friendly state in an otherwise uncertain U.S. regulatory environment.
Custodia’s Suit Against Fed Over Denial of Master Account Can Proceed, Court Rules
Custodia’s challenge of the Federal Reserve Bank of Kansas City’s decision to deny the crypto-friendly bank access to the Fed banking services can continue, a U.S. district court ruled Thursday, rejecting a Fed motion to dismiss the case. The U.S. District Court of Wyoming, however, did reject Custodia’s request that the Fed be compelled to grant it a so-called master account and membership with the Fed, Instead, Custodia must continue its claims via normal channels.
Will Bitcoin Prices Limit And Slow Down The Number Of BTC ‘Wholecoiners?’
On May 20, Caitlin Long, the founder of Custodia Bank, retweeted and revived an intriguing question posed by Adam Back, CEO of Blockstream, on whether the number of the so-called Bitcoin “wholecoiners” has peaked.
Is The Number Of Bitcoin Wholecoiners Peaking?
Her question is when the number of wholecoiners, or individuals holding at least 1 BTC, soared above the 1 million mark last week.
While the rising number of wholecoiners points to possible adoption and rising BTC demand over time, market forces could end up capping their numbers.
She reckons that as Bitcoin prices increase, it would be more expensive for a would-be wholecoiner to purchase the asset. Therefore, based on these factors, it may be unlikely that there will be 10 million in the coming years.
ARE WE AT PEAK WHOLE-COINERS in #bitcoin asks @adam3us? 1M whole-coiners today. Probably couldn’t reach 10M whole-coiners ever tho, bc bitcoin’s price would be bid up too high to reach that given the 21M supply cap… pic.twitter.com/vzRvv2vyAW
— Caitlin Long (@CaitlinLong_) May 20, 2023
On May 13, Glassnode, an on-chain analytics firm, revealed that the number of addresses managing at least 1 BTC had broken above the 1 million mark and continues to steadily grow.
This upward trend has remained consistent, weathering the impact of the crypto winter which saw BTC prices crumble from over $69,000 registered in November 2021 to less than $16,000 in Q4 2022.
Despite this impressive trend, Long and Adam’s observations may cast doubt on whether this could continue in the long haul, pushing the number of wholecoiners to double digits.
By design, Bitcoin is deflationary and there will be 21 million BTC to ever circulate. As inflation also reduces due to BTC halving roughly every four years, coin holders expect BTC prices to gradually increase over the years.
Based on historical performance and increasing crypto adoption, market forces could drive BTC prices higher, making it challenging for more users to own 1 BTC currently trading at over $26,900 as on May 21.
Less Than 2.5% Of BTC Addresses Are Wholecoiners
While the number of wholecoiners has been steadily rising, there is a division between long-term investors and short-term speculators.
Long-term Bitcoin holders have demonstrated resilience during market fluctuations, retaining their positions rather than selling. On the other hand, speculators are known more for exiting for USDT and cash during times of heightened volatility. For their actions, short-term holders or speculators have been labeled as “weak hands”.
So far, BitInfoCharts data shows that less than 2.5% of all Bitcoin addresses hold at least 1 BTC. As of May 21, addresses with between 1 and 10 BTC stood at 2.1% of the total. Meanwhile, the number of whales, or those holding above 100 BTC represented less than 0.033% of the total addresses.
Roughly 93% of all Bitcoin addresses held between 0.00001 and 0.0001 BTC.
Wyoming Defends ‘Legitimacy’ of Its Crypto Charter Framework in Custodia Lawsuit
The state of Wyoming is taking umbrage at the Federal Reserve Board’s insinuations that its regulatory framework for special purpose depository institutions (SPDIs) – state-chartered banks that can handle digital assets – are not up to snuff.
US Fed to create new crypto team amid concerns about unregulated stablecoins
The Fed’s Vice Chair for Supervision emphasized that they do not want to curb innovation, but ensure that regulations protect households and the financial system.
Caitlin Long Sees ‘Coordinated Effort’ Among Regulators for Custodia Rejection
Custodia Bank’s CEO says crypto will find its way into the traditional banking system and regulators could be playing ‘whack-a-mole’ years down the road.
Custodia Bank CEO slams Washington’s ‘misguided crackdown’ on crypto
Caitlin Long revealed that she had warned government agencies of major “fraud” in the crypto space months before several firms went bankrupt.
Wyoming lawmakers pass bill to prevent forced disclosure of private keys
If Wyoming Governor Mark Gordon signs the bill, from July 1 individuals in Wyoming will be protected from being forced to divulge their private keys, with one limited exception.
Caitlin Long takes aim at The New York Times over crypto ‘alarm’ article
Regulated crypto bank Avanti CEO Caitlin Long says tarring the entire crypto industry with the same brush is unfair.
Crypto crackdown targeting USD access points has begun: Caitlin Long
Avanti’s Caitlin Long expects the U.S. Federal Reserve to make it harder for crypto companies to access USD payment channels.
‘Crypto regulatory crackdown is starting’ but it’ll be OK, says Avanti CEO
Caitlin Long has stated she is optimistic about the crypto regulations that are taking shape in the United States as the focus is on taxation and compliance.
Caitlin Long reveals the ‘real reason’ people are selling crypto
“Markets now can safely predict Bitcoin and crypto prices will likely exhibit high correlation with credit markets,” said Long.
Your future at stake: Uni of Wyoming allocates $4M to staking three coins
The University of Wyoming is embracing cryptocurrency staking as an innovative way to raise revenue.
Avanti Financial Joins Kraken as a Wyoming-Approved Crypto Bank
Blockchain pioneer Caitlin Long is now the CEO of her own special purpose depository institution (SPDI) in Wyoming.
Wyoming-Based Avanti to Open in October With a New Bank-Issued Digital Asset
Wyoming’s crypto-friendly Avanti Financial expects to open its doors this October with a new bank-issued digital asset, the Avit.
Caitlin Long’s Avanti Raises $5M, Submits Wyoming Banking Charter Application
Crypto bank Avanti has raised an angel round from the University of Wyoming Foundation, Anthony Pompliano’s Morgan Creek Digital and other investors.
Caitlin Long’s Wyoming Crypto Bank Announces C-Suite, Including Bitcoin Core Dev
On Tuesday, Avanti Financial Group announced five new executive hires, including bitcoin core developer Bryan Bishop and Figure Technology’s Zev Shimko.
Caitlin Long on Coronavirus, Crypto Custody and Building a Bank
A new crypto bank tries to address some of the most fundamental issues for institutions who want to get into the space.
Wyoming’s New Crypto Banking Law Could Defang New York’s BitLicense
There may be a way for cryptocurrency businesses to get around New York’s notoriously hard-to-get BitLicense, and it runs through Wyoming.
PODCAST: Caitlin Long on Bitcoin as Insurance Against Financial Collapse
“Bitcoin is less volatile from a systemic perspective than I think the traditional financial industry is,” says the Wyoming Blockchain Coalition co-founder.