Bitcoin Adoption Grows Amid Policy Changes and Memecoin Cooling in February

• This February has been pivotal for the crypto industry, marked by significant policy shifts and increased Bitcoin adoption around the globe.

• Fresh findings indicate that the decentralization of Bitcoin is gaining momentum, as the proportion of global hashrate managed by public companies has surged to 35%.

• According to a report by COINOTAG, the SEC’s decision to pause multiple legal actions signals potential clarity and cooperation within the crypto regulatory environment.

A transformative February witnesses Bitcoin’s decentralization surge and SEC’s legal halts, while memecoins see a significant decline.

SEC halts legal proceedings, signaling new direction for crypto regulation

This month, the Securities and Exchange Commission (SEC) paused or dismissed six legal cases against prominent cryptocurrency exchanges and protocols, including Coinbase and Uniswap. These actions reflect a significant shift in the regulatory landscape as the SEC’s new Crypto Task Force aims to engage with industry players openly.

Led by crypto advocate Commissioner Hester Peirce, the task force has prioritized discussions on complex topics like staking and exchange-traded products (ETPs). The implication of this pause allows firms to focus on compliance without ongoing litigation overshadowing their operations.

Ripple’s chief legal officer, Stuart Alderoty, expressed optimism regarding the legal challenges facing his company, hinting at a potential resolution that could reshape how digital assets are regulated.

Decentralization of Bitcoin accelerates, with individual ownership rising

According to an annual report released by River, Bitcoin adoption is on the rise, with a notable increase in its decentralization. Currently, approximately 70% of Bitcoin is owned by individuals, indicating a more democratized distribution of the asset.

Despite the United States and China leading in Bitcoin mining, their combined share of global hashrate is diminishing. The report highlights that over 28 countries now contribute to this metric, indicating a significant broadening of Bitcoin mining operations across various jurisdictions.

While mining pools remain dominated by the top 10 players, there is a noticeable trend towards a more diverse mining landscape, reducing reliance on a few dominant pools.

US lawmakers pursue crypto reserves amid state-level skepticism

In light of recent federal elections, there has been a marked increase in crypto-friendly lawmakers entering Congress, reflecting an eagerness to elevate the US’s position in the global crypto landscape. President Trump’s executive order establishing a working group on national crypto reserves highlights the ambitious approach lawmakers are taking.

Despite enthusiasm at the federal level, state legislatures are experiencing mixed responses. Of the 25 states that have proposed bills, five have decisively rejected them. Nevertheless, 11 states continued to explore legislative frameworks for Bitcoin reserves, showcasing a growing interest in institutional crypto investments.

Lazarus hackers execute record-breaking $1.4 billion Ether heist

On February 21, the North Korean hacking group Lazarus orchestrated a massive cyberattack, stealing $1.4 billion in Ether from the Bybit exchange. This incident marks the largest hack in crypto history, eclipsing all previous attacks combined this year.

Blockchain analysts have traced the illicit funds back to Lazarus through sophisticated wallet tracking methods, cementing the group’s reputation for executing high-stakes cyber crimes with precision.

Decline of memecoin activity reflects scrutiny and concern

The frenzied increase in memecoin creations appears to be abating, with February witnessing daily issuances dropping to around 40,000 — a level not seen since December 2024.

While the surge of politically-themed memecoins following Trump’s inauguration sparked international attention, increasing ethical concerns and scrutiny have prompted a cooling-off period. High-ranking figures, including Vitalik Buterin, have voiced their apprehension about the memecoin phenomenon.

The SEC’s establishment of the Cyber and Emerging Technologies Unit underscores a significant regulatory shift aimed at providing oversight in this space, as they respond to rising consumer and market concerns.

Conclusion

February has proven to be a month of contradictions in the crypto landscape. While Bitcoin adoption surges and regulatory discourse evolves, alarming trends such as the Lazarus heist and the decline of memecoins point to the necessity for deeper scrutiny and innovative governance in this fast-paced sector. Stakeholders must remain vigilant as the tapestry of the digital currency world continues to unfold.