Here’s what happened in crypto today
Today in crypto, French authorities announce a new investigation into Binance, Arizona lawmakers advance a Bitcoin strategic reserve bill, and analysts suggest leveraged memecoin ETF filings are testing Trump-era regulators.
French prosecutors probe Binance over money laundering, fraud allegations: Report
Authorities in France have launched an investigation into cryptocurrency exchange Binance over allegations of money laundering and tax fraud.
According to a Jan. 28 Reuters report, the economic and financial crime division of the Paris Public Prosecutor’s Office said it had opened a probe into the crypto exchange’s activities between 2019 and 2024 over money laundering allegedly connected to drug trafficking. Binance users also reportedly said the exchange incorrectly communicated information to them, resulting in investing losses.
It is not the first time Binance has been in the crosshairs of the French government. The country has been examining the company’s activities since 2022, with the exchange reportedly failing to have adequate Know Your Customer procedures to check on users and possible money laundering activity.
A Binance spokesperson told Cointelegraph that this latest challenge is a continuation of a legal probe dating back years:
“While we do not usually comment on legal proceedings as a matter of policy, Binance fully denies the allegations and will vigorously fight any charges made against it,” the exchange added.
Arizona Senate moves forward with Bitcoin reserve legislation
Arizona lawmakers have advanced a Bitcoin strategic reserve bill, which seeks to deploy the world’s first cryptocurrency as a savings technology for the state.
The Strategic Bitcoin Reserve Act (SB1025), which is co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, was passed by the Arizona State Senate Finance Committee with a five to two vote on Jan. 27.
The bill will now move to the Senate Rules Committee for final debate and amendments. Approval by the Senate would advance the bill to the House of Representatives.
The bill proposes the creation of a strategic Bitcoin reserve by the US Treasury for “the storage of government Bitcoin holdings,” which would also allow other public funds to store their digital assets in a “secure, segregated account within the strategic Bitcoin reserve.”
The bill would allow up to 10% of a government entity’s or public fund’s capital to be invested in Bitcoin (BTC) and other digital assets. It also opens the door for pension funds to allocate resources to Bitcoin, potentially increasing public interest in cryptocurrencies.
Tuttle’s 10 leveraged crypto ETFs filings show issuers testing limits
Tuttle Capital has filed for ten crypto-based leveraged exchange-traded funds (ETFs), including some for memecoins, which analysts say show issuers are testing the limits of Trump-era regulators.
Tuttle’s proposed ETFs include funds that are two times leveraged long on memecoins, including Official Trump (TRUMP), Melania Meme (MELANIA) — launched by Donald Trump and wife Melania — and Bonk (BONK).
“To be very clear here. This is a case of issuers testing the limits of what this SEC is going to allow,” Bloomberg ETF analyst James Seyffart said in a Jan. 27 X post.
Tuttle’s filings follow bids from Osprey Funds and REX Shares on Jan. 21 to launch ETFs for several memecoins, including TRUMP, BONK and Dogecoin (DOGE).
Seyffart added he expects the Securities and Exchange Commission’s new crypto task force led by crypto-friendly Commissioner Hester Peirce to “be the lynchpin in determining what’s gonna be allowed vs what isn’t.”
Bloomberg’s senior ETF analyst Eric Balchunas said on X that Tuttle’s filings are “unusual,” but unless the SEC knocks them back, “they could be out and trading in April.”