Welcome to the 18th issue of The Bitcoin Act, where every Tuesday and Sunday we track the legal and regulatory moves that actually shape Bitcoin, cutting through noise, narratives, and theater.

Now for today’s top stories:

🇺🇸 Bessent: No Treasury Bitcoin Bailouts

Treasury Secretary Scott Bessent stresses Treasury has no authority to bail out BTC.

⚖️ Lummis: Push for Bitcoin Tax Breaks

Sen. Cynthia Lummis presses Treasury for clearer BTC tax guidance, including de minimis exemptions for small transactions.

🏛️ Illinois: State Bitcoin Reserve Proposed

Illinois introduces the Community Bitcoin Reserve Act to hold BTC in multisig cold storage.

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Treasury Secretary Scott Bessent stated that the Treasury lacks authority to bail out Bitcoin, force banks to hold BTC, or invest taxpayer funds in crypto, emphasizing limits on executive actions amid pro-Bitcoin policy pushes.

Senator Cynthia Lummis argued that Bitcoin tax guidance is needed, including de minimis exemptions for small transactions to make BTC spendable, with Bessent committing Treasury collaboration despite complexities

@saengch, X account, views Bitcoin as a “government slayer” undermining centralized control, but warns Lummis-Bessent tax relief risks state capture. He urges quantum-resistant prep like Strategy’s program to preserve BTC’s sovereign, censorship-resistant nature.

Treasury Secretary Scott Bessent criticized crypto “nihilists” who prefer no regulation over the Clarity Act, stating they “should move to El Salvador” to avoid what he called “very good regulation” for the industry.

Bitcoin advocate Isabella Santos warns that the new IRS Form 1099-DA creates tax gaps for US holders, recommending long-term holding, minimal trading, and borrowing against BTC to minimize liabilities.

Authorities report that alleged kidnappers of NBC anchor Savannah Guthrie’s mother sent a Bitcoin ransom note to TMZ, prompting FBI probe into abduction, highlighting crypto’s role in wrench attacks.

Bernstein analyst Gautam Chhugani argues that Bitcoin’s drawdown near 4% of gold’s market cap offers a final buying opportunity before US policies elevate it to sovereign asset status.

Treasury Secretary Scott Bessent admitted that the US weaponized the dollar against Iran, causing currency shortages, hyperinflation, and protests, with Bitcoin prices surging amid the rial’s plummet.

Strategy’s Michael Saylor declared that Donald J. Trump is the “Bitcoin President” making America a Bitcoin superpower, urging veterans to join the mission in a promotional bulletin.

Illinois proposes the Community Bitcoin Reserve Act. The bill creates a state program to hold Bitcoin in multisig cold storage, starting with the Altgeld Bitcoin Reserve.

📊 ~$5B – U.S. Strategic Bitcoin Reserve suffers ~$5 billion paper losses this week (up to ~$18B broader wipeout) as BTC tanks; passive seized ~328k BTC holdings bleed value with no active buys or Treasury bailout power under Trump EO. Barron’s

🎲 0-0 – White House closed-door crypto meeting (Feb 2–3) between banks & industry ends with no agreement on market structure bill; stablecoin yields/rewards stalemate persists, White House sets end-Feb compromise deadline. Reuters

📊 $60,005–$60,187 – Bitcoin hits intraday low this week (Feb 6; 16-month bottom, lowest since Oct 2024 pre-rally), briefly threatens sub-$60k before >11% rebound to ~$70k+; fueled by risk-off sentiment & stalled pro-crypto policy momentum. CMC

🏛️ 85% – Polymarket odds for Fed “No change” at March 18, 2026 meeting; 14% for 25 bps cut, 1% for 50+ bps cut, <1% for hike—markets heavily pricing pause amid cooling inflation & jobs data. Polymarket

🇺🇸 66% – Polymarket gives 66% chance of another U.S. government shutdown by Feb 14, 2026 due to new lapse in appropriations (separate from ongoing partial shutdown since Jan 31). Polymarket

“The state does not create money, it only attempts to regulate and control it. True money arises from voluntary exchange, not from decree. Bitcoin, as a decentralized currency, reflects the fundamental economic principles of the free market and challenges the state’s monopoly on monetary systems.” — Adapted from Ludwig von Mises’ views on money and the state

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