Is Bitcoin the new space race? Senate hearings, tariffs and global battle
Despite a wave of positive regulatory developments from Washington, D.C., this week, bitcoin's price remains under pressure. This is primarily due to broader macroeconomic concerns, particularly discussions around Trump’s proposed tariffs .
Tariffs create economic uncertainty , prompting a risk-averse sentiment among investors who shift away from volatile assets like bitcoin in favor of traditional safe havens. Simultaneously, a stronger U.S. dollar, a common side effect of tariff policies, can make bitcoin less attractive in the short term, contributing to a price decline.
The market remains cautiously optimistic with the formation of a new bicameral working group, growing bipartisan support for clear crypto regulations, and the Choke Point 2.0 hearing signaling a more favorable regulatory landscape.
Analysts anticipate an imminent breakout if the U.S. confirms a more explicitly pro-crypto stance or hints at direct bitcoin purchases.
Bitcoin is currently around $96K.
Congress unveils resolute plan to cement US leadership in digital assets
On Feb. 4, 2025, Senate Banking Committee Chairman Tim Scott, alongside key leaders from Congress and the Trump administration, hosted a press conference focused on digital assets. They announced the formation of a bicameral working group dedicated to developing a regulatory framework for digital assets and solidifying US leadership in the industry.
Scott stood alongside White House A.I. and Crypto Czar David Sacks, Senate Agriculture Committee Chairman John Boozman, House Financial Services Committee Chairman French Hill, and House Agriculture Committee Chairman G.T. Thompson, emphasizing the critical role of the U.S. in driving financial inclusion and economic opportunity on a global scale.
He noted the need for bipartisan cooperation to keep digital asset innovation in the U.S., ensuring benefits for working-class Americans and strengthening the nation's financial future.
Although Securities and Exchange Commission Commissioner (SEC) Hester Peirce did not appear on camera during the press conference, she released a comprehensive outline detailing the working group's objectives.
House hearing investigates 'Operation Choke Point 2.0' and regulatory abuse
House Financial Services Subcommittee Chairman Dan Meuser led a hearing yesterday on “Operation Choke Point 2.0,” alleging that the Biden Administration used regulatory pressure and informal coercion to force banks to cut ties with crypto firms.
Meuser compared this to the Obama-era Operation Choke Point, arguing that regulators “used the prudential regulators’ authority to threaten supervisory action against banks” servicing disfavored industries.
Testimonies from industry leaders, including MARA CEO Fred Thiel , WSPN CEO and Professor Austin Campbell , and Coinbase’s CLO Paul Grewal, highlighted how the FDIC and other regulatory agencies discouraged banks from engaging with crypto businesses, frequently without formal guidance or clear justification.
Acting FDIC Chairman Travis Hill confirmed that banks faced "extraordinary resistance" when attempting to provide financial services to crypto firms. At the same time, newly released FDIC documents contradict public denials of such practices.
Lawmakers and witnesses continue to emphasize the need for legislative oversight, greater transparency, and meaningful reforms to curb regulatory overreach, an ongoing but critical discussion aimed at safeguarding innovation and economic competitiveness.
This is a developing story.