Here’s what happened in crypto today
Today in crypto, Argentine President Javier Milei arrived in the United States for a diplomatic trip as the LIBRA memecoin scandal unfolds; Stacks co-founder Muneeb Ali has warned that most Bitcoin layer-2 projects will fade away within three years, and the US Securities and Exchange Commission has moved to drop its appeal over the controversial crypto broker-dealer rule.Argentine President Milei arrives in US amid fallout from LIBRA scandalArgentine President Javier Milei arrived in the United States on Feb. 20 for a trip of diplomacy and deal-making, and perhaps seeking a rebound from the unfolding LIBRA memecoin scandal that threatens his administration.According to Bloomberg, his itinerary includes a meeting with supporter Elon Musk and a session with Kristalina Georgieva, the chief of the International Monetary Fund. Milei will also speak at the Conservative Political Action Conference, a Trump-friendly event.The trip may serve to reshape the image and narrative surrounding Milei, both of which have taken hits following the memecoin scandal that local Argentine publications have dubbed “Cryptogate.”On Feb. 14, Milei shared the contract address for the now infamous LIBRA memecoin on his X account, claiming the token was dedicated to “encourage the growth of the Argentine economy.” The team behind the token is accused of rug-pulling it within hours, costing investors around $251 million.Milei and his team have attempted to distance themselves from the token and its creators, having the president sit down for an interview that aired on Feb. 17 in Argentina.However, Milei’s trip to the United States may be a chance to right, or at least provide reprieve, from the narrative. On Feb. 17, US President Trump made a post on Truth Social with a picture of Milei and a quote from the Argentine president: “If printing money would end poverty, printing diplomas would end stupidity.”Bitcoin L2 “honeymoon phase” is over, most projects will failMore than two-thirds of the existing Bitcoin layer-2 projects will cease to exist within three years as their initial excitement fades, said Muneeb Ali, co-founder of Stacks.“The honeymoon phase [for Bitcoin L2s] is a little bit over,” Ali said in an interview with Cointelegraph at Consensus 2025, while sharing updates on Stacks — a Bitcoin L2 originally launched as Blockstack in 2013. Stacks recently completed a major network upgrade, Nakamoto, which significantly improved user experience, Ali said, adding: “And the second big thing is that now Stacks is secured by 100% of Bitcoin hash.”As a result, users enjoy faster confirmations on the Bitcoin L2 while backed by the Bitcoin network’s inherent security. Speaking generally about the Bitcoin L2 ecosystem, Ali said that most projects have started to realize that “the market is super hard.”Additionally, Ali said he expects the market to shift toward Bitcoin (BTC) as other popular layer-1 chains, such as Ethereum and Solana, decline. SEC pulls own appeal in case over crypto broker-dealer rulesThe US Securities and Exchange Commission has dropped its effort to undo a court ruling blocking a controversial broker-dealer rule that would have given the agency jurisdiction over decentralized crypto protocols.In a brief Feb. 19 filing to the Fifth Circut Appeals Court, the SEC said it moved “to voluntarily dismiss this appeal.”Last month, just days before former SEC Chair Gary Gensler was due to step down, the agency appealed a November ruling from a Texas federal court judge that had blocked the definition change. The SEC’s voluntary dismissal now ends the legal battle. “Complete and total victory today in our case against the SEC over the dealer rule,” Blockchain Association CEO Kristin Smith said in a Feb. 19 X post. “The crypto industry can breathe a sigh of relief.”