Crypto Today: Binance SAFU to BTC; Warsh Fed Pick; Senate Bill
Here’s what happened in crypto today
Today’s key developments include Binance’s plan to shift its $1 billion user protection fund into Bitcoin, the nomination of Kevin Warsh for Federal Reserve chair by US President Donald Trump, and the US Senate Agriculture Committee advancing a crypto market structure bill. Below are the details and figures as disclosed by the respective parties and public sources.
Binance to convert $1 billion SAFU reserves into Bitcoin
Binance will re-denominate its Secure Asset Fund for Users (SAFU) from stablecoins into Bitcoin (BTC) over the next 30 days, the exchange said in an open letter. The company described the move as reflecting its view that Bitcoin is the primary long-term asset in the crypto sector rather than solely a trading instrument.
Binance said it would restore the fund to $1 billion if market moves push its value below $800 million, effectively increasing SAFU’s exposure to Bitcoin price fluctuations. The exchange noted this could make the fund more sensitive to BTC drawdowns even as it remains intended for emergency user reimbursements.
A Binance spokesperson said the exchange will support the industry “through market cycles and uncertainty,” continue investing in the ecosystem, and could consider “core assets,” including BNB, during its next review. The spokesperson added that Binance would use its treasury resources to replenish SAFU if it falls below $800 million.
Established in 2018 and financed by a portion of trading fees, SAFU is intended to compensate users in “extreme” circumstances, such as security breaches or critical platform incidents. The spokesperson said covered losses “may include losses sustained by users in the rare event of a platform security or other incident.”
Open letter to the crypto community. Source: Binance
Kevin Warsh confirmed as Trump pick for Fed chair
US President Donald Trump on Friday nominated Kevin Warsh as the next Federal Reserve chair. Reuters reported on Thursday that Trump met Warsh earlier in the day, citing a person briefed on the meeting who said Warsh made a strong impression.
Prediction market data from Polymarket showed Warsh’s odds of being nominated rose from 30% to 95%, while former frontrunner Rick Rieder of BlackRock declined to 3.4%. Warsh is broadly viewed as favoring fiscal restraint, lower inflation, and an exit from quantitative easing. In July, he described Bitcoin as “an important asset that can help inform policymakers when they’re doing things right and wrong.”
Kevin Warsh emerged as the frontrunner for Trump’s Fed chair pick on Polymarket. Source: Polymarket
Senate Ag advances crypto market structure bill
The US Senate Agriculture Committee on Thursday voted 12–11 to advance a comprehensive crypto market structure bill after a brief markup session that underscored partisan differences. Lawmakers considered three amendments, all of which failed along party lines.
Democratic members raised questions related to ethics, conflicts of interest, and oversight, including a proposal to prohibit elected officials from holding digital assets, which did not secure sufficient backing. Supporters of the bill said it would deliver long-awaited regulatory clarity for digital assets, while opponents warned it could dilute investor protections and broaden the Commodity Futures Trading Commission’s authority.
The bill is expected to be reconciled with similar legislation under review by the Senate Banking Committee before reaching the Senate floor.
Senate Agriculture Committee Chair John Boozman speaking at markup. Source: Senate Agriculture Committee
Disclaimer: This article is intended to provide timely and accurate information. Readers should conduct independent verification where appropriate.
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