AlphaBriefing – Institutional Insights (May 2025)
El Salvador’s Bitcoin Holdings Yield Significant Unrealized Gains
El Salvador has seen over $357 million in unrealized profit from its national bitcoin holdings, following a recent rally that brought the dominant digital asset to new all-time highs. According to President Nayib Bukele, the country’s portfolio—initially valued at $287.1 million—has grown to more than $644.4 million, representing a 124.4% profit margin. This includes $69.8 million in gains just in 2025, with El Salvador currently holding about 6,181 BTC, valued at approximately $639 million. The rally has pushed bitcoin to over $110,000, as investor optimism rises amid geopolitical and economic developments, specifically regarding US trade policy.
Despite an agreement with the IMF to scale back some bitcoin-related initiatives in exchange for a financing package, President Bukele reaffirmed his commitment to accumulating bitcoin. The agreement, which includes making bitcoin adoption voluntary in the private sector, was codified into law in January. Bukele stated that the strategy will continue regardless of external pressure, citing past resistance when El Salvador became the first country to adopt bitcoin as legal tender in June 2021, a move aimed at advancing financial inclusion.
Stablecoin Integration Could Unlock Trillions of Dollars for the U.S. Treasury
In a 66–32 vote, the U.S. Senate advanced the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), overcoming a filibuster to bring the first comprehensive federal framework for stablecoin regulation to the Senate floor. Backed by a bipartisan coalition including Sens. Gillibrand, Hagerty, Scott, Lummis, and Alsobrooks, the bill introduces strict standards for reserves, audits, disclosures, and law enforcement compliance. With stablecoins reaching a $232 billion market cap as of May 2025 and accounting for the majority of on-chain volume, the GENIUS Act arrives amid surging adoption. It mandates full reserve backing, monthly reserve disclosures, annual audits for issuers over $50 billion, and marketing restrictions. National security provisions include Bank Secrecy Act compliance, AML/sanctions programs, and the technical ability to freeze or burn tokens. Non-compliant foreign issuers may be barred from U.S. markets, and Treasury will coordinate sanctions enforcement.
The legislation comes as other jurisdictions — including the EU, Singapore, and Japan — roll out stablecoin regulations, and as U.S. regulatory ambiguity pushes some activity offshore. The GENIUS Act could reverse that trend by bringing regulatory clarity and innovation onshore. The bill also includes debated restrictions, such as limits on yield-bearing stablecoins and tech firm issuance. Chainalysis supports the framework, offering tools like Sentinel to help issuers and regulators monitor transactions, freeze suspicious addresses, and assess risk. CEO Jonathan Levin praised the GENIUS Act for balancing innovation with oversight, calling it a “milestone for responsible innovation.” If passed by both chambers and signed by President Trump, the bill could become law later this year — positioning the U.S. to lead global stablecoin policy and adoption across payments, trading, and digital settlement rails.
Texas Advances Legislation to Establish Bitcoin Reserve
Texas has passed Senate Bill 21, establishing the Texas Strategic Bitcoin Reserve, making it the third U.S. state—after Arizona and New Hampshire—to incorporate Bitcoin into its state investment strategy. Officially titled the “Texas Strategic Bitcoin Reserve and Investment Act,” the legislation has cleared both chambers and now awaits Governor Greg Abbott’s signature. The bill authorizes a special fund, managed independently from the state treasury, to invest in Bitcoin and other approved digital assets. The State Treasurer is granted full authority over the fund, including asset acquisition, staking, management, and liquidation, with strict safeguards such as cold storage custody and eligibility limited to cryptocurrencies with a 12-month average market cap of $500 billion or more. The reserve may be funded through legislative appropriations, private donations, or investment returns.
The law also permits the use of staking and derivatives if deemed beneficial, and third-party custodians and liquidity providers may be contracted for operational support. While operating autonomously, the reserve can be temporarily liquidated for state cash management under specific conditions. Governor Abbott has not officially stated his position but has previously voiced strong support for Bitcoin, saying, “Texas wants to be the centerpiece” of the global blockchain future. The measure follows New Hampshire’s May 6, 2025, passage of a similar law, which Dennis Porter, CEO of Satoshi Action, credited with launching a nationwide trend. Porter emphasized that this model not only secures taxpayer funds and diversifies state reserves, but also “future-proofs state treasuries” through alignment with “the most secure monetary network on Earth.”
Regulatory Clarity Inches Forward with New Non-Custodial Crypto Bill
Republican Rep. Tom Emmer and Democratic Rep. Ritchie Torres have reintroduced the Blockchain Regulatory Certainty Act, a bill aimed at providing legal clarity for non-custodial crypto platforms, including miners, validators, and wallet providers that do not hold customer funds. The bill explicitly states that such entities are not money transmitters or unlicensed money services businesses, a move designed to prevent regulatory overreach and support innovation. Originally introduced in 2018, its revival comes amid ongoing debates in Washington over digital asset regulation. Torres emphasized the bill’s importance in keeping American developers onshore, saying it “protects innovation, upholds civil liberties, and strengthens our global competitiveness.” The reintroduction follows efforts by Emmer and Torres to create the Congressional Crypto Caucus earlier this year, aimed at defending open and permissionless blockchain development in the U.S.
The bill quickly drew support from major industry groups. Peter Van Valkenburgh, executive director of Coin Center, argued that misapplied regulations have chilled innovation and warned that “legal clarity” is crucial to avoiding unjust prosecutions and protecting core American values like free speech and open software development. Sarah Milby, interim CEO of the Blockchain Association, echoed that sentiment, stating the bill would help ensure the U.S. remains a global leader in crypto by affirming that decentralized, non-custodial blockchain developers should not be misclassified as financial intermediaries. While other crypto legislation, including bills focused on stablecoin regulation, has advanced through committees, none have yet received a full vote in Congress. The Blockchain Regulatory Certainty Act is now part of a broader legislative push to establish clear digital asset rules amid rapidly evolving technology and policy landscapes.
