Crypto News Roundup: SEC Charges Digital Currency Group, Bitcoin DeFi Breaks Out, and Trump Set to Prioritize Crypto

In today’s crypto news, the U.S. Securities and Exchange Commission (SEC) has filed charges against Digital Currency Group (DCG) and former Genesis CEO Soichoro “Michael” Moro for misleading investors regarding the financial state of Genesis following the collapse of Three Arrows Capital (3AC). Additionally, data reveals that Bitcoin-based decentralized finance (DeFi) applications had an explosive growth year in 2024, and a Bloomberg report suggests that President-elect Donald Trump is set to prioritize cryptocurrency policies in his administration.

SEC Charges Digital Currency Group for Misleading Investors

The SEC has filed charges against Digital Currency Group (DCG) and Michael Moro, the former CEO of Genesis, over allegations of misleading investors about the financial stability of Genesis in the wake of the Three Arrows Capital (3AC) collapse. The SEC claims that DCG and Moro made misleading statements about the company’s financial health, which contributed to investor confusion as Genesis filed for Chapter 11 bankruptcy protection in January 2023.

As part of the resolution, DCG and Moro have agreed to pay a combined civil penalty of $38.5 million, with DCG liable for $38 million and Moro for $500,000. The settlement does not involve any admission of wrongdoing. This legal action forms part of the ongoing saga of Genesis, a major crypto lender that suffered massive losses from its exposure to 3AC, a crypto hedge fund that defaulted on its loans in 2022.

Bitcoin-Based DeFi Sees Unprecedented Growth in 2024

Bitcoin-based decentralized finance (DeFi) applications had a record-breaking year in 2024, driven by an increase in Bitcoin prices and significant advancements in infrastructure. The total value locked (TVL) in Bitcoin DeFi applications surged by an astounding 2,000%, reaching over $6.5 billion by the end of December 2024, compared to just $307 million at the start of the year, according to data from DefiLlama.

This explosion in Bitcoin DeFi activity, known as BTCFi, was largely fueled by the development of new Bitcoin-native services such as Bitcoin staking and restaking platforms. One standout project in the BTCFi space is Babylon, which controls over 80% of the sector’s TVL. Babylon launched its mainnet in August 2024, with its second-phase testnet going live in January 2025. Babylon’s success is attributed to its groundbreaking Bitcoin-native staking model, which offers a new avenue for Bitcoin holders to earn rewards and participate in decentralized finance, further propelling Bitcoin’s role in the DeFi space.

Trump Set to Prioritize Crypto Policies with Executive Order

A Bloomberg report suggests that President-elect Donald Trump plans to sign an executive order on his first day back in office on January 20, 2025, designating cryptocurrency as a national priority. The order, which is still in draft form, is expected to direct U.S. regulatory agencies to collaborate more closely with the cryptocurrency industry and could create a new crypto council to advocate for industry policy goals.

The move signals Trump’s intention to make cryptocurrency a key issue during his second term in office, further cementing his support among the crypto community. Trump has repeatedly expressed his desire to make the U.S. the "crypto capital" of the world, with the local crypto industry playing a significant role in backing his campaign. If finalized, this executive order could pave the way for more favorable policies and a more streamlined regulatory framework for the rapidly growing digital asset sector.

Conclusion

Today’s developments mark an eventful day for the crypto industry. The SEC’s charges against DCG and Michael Moro highlight the ongoing regulatory scrutiny faced by crypto firms, while the explosive growth in Bitcoin-based DeFi shows the increasing maturity of the sector. Additionally, the anticipated executive order from President-elect Trump promises to bring a new focus to cryptocurrency policy, potentially reshaping the U.S. regulatory landscape for digital assets. As the crypto space continues to evolve, these stories reflect the increasing significance of both regulatory action and innovation in shaping its future.