Australia has no immediate plans to launch a national cryptocurrency reserve, despite the U.S. announcing such a move earlier this month.
While President Trump revealed intentions to include popular cryptocurrencies like Bitcoin, Ethereum, and Solana in a strategic reserve, Australia’s government remains focused on regulating the crypto sector rather than adding digital assets to its financial reserves.
The Albanese Government, currently in power, has instead prioritized creating a strong regulatory framework for digital assets. A government spokesperson emphasized their commitment to building a system that supports blockchain innovation while ensuring digital asset platforms are properly regulated. This stance comes amid a period of political uncertainty, with a federal election required by May 17, potentially shifting the country’s crypto approach.
Industry insiders like Tom Matthews of Swyftx have pointed out the risks involved in establishing a crypto reserve, particularly the volatility and concentration risks posed by digital assets. Matthews suggests a sovereign wealth fund dedicated to long-term crypto investments might be a more viable approach. Meanwhile, Kraken’s Jonathon Miller stressed that crypto is already viewed as an investment-grade asset by funds and sovereign wealth entities, underscoring its growing legitimacy in global finance.
As the Australian crypto landscape evolves, regulators are also focusing on tightening oversight. AUSTRAC plans to ramp up its scrutiny of the sector in 2025, especially targeting crypto ATM operators, while ASIC’s recent guidelines for treating many digital assets as financial products will require crypto firms to secure licenses. Notably, Australia is becoming a leading hub for crypto ATMs, with over 1,450 machines now operational, a stark rise from just over 60 in 2022.
The U.S. Securities and Exchange Commission’s (SEC) crypto task force, led by Commissioner Hester Peirce, is continuing its behind-the-scenes engagement with digital asset firms as the agency weighs new approaches to crypto regulation.
In a major policy shift, the Federal Reserve announced on Thursday that it will no longer require state-chartered member banks to notify the central bank before engaging in crypto-asset activities.
A new report by the Bank for International Settlements has reignited the clash between traditional financial authorities and the crypto world.
Federal Reserve Chair Jerome Powell has hinted that U.S. banks may soon see more flexibility when it comes to handling digital assets—a notable shift from the cautious approach regulators have maintained in recent years.