The global cryptocurrency market shed nearly $300 billion in total market capitalization over the weekend, amid a broader market crash. This multi-billion-dollar vanish has triggered fresh debate over whether the downturn signals deeper structural problems in digital assets. 

However, Raoul Pal, founder and CEO of Global Macro Investor (GMI), argues the sell-off has little to do with crypto fundamentals and more to do with a temporary shortage of U.S. dollar liquidity. 

In a post shared on X on Sunday, Pal pushed back against what he described as a growing narrative that “Bitcoin and crypto are broken” and that the market cycle has ended. 

https://t.co/M5mLAi3XLA

— Raoul Pal (@RaoulGMI) February 1, 2026

According to Pal, recent price action points to a broader macro-driven issue rather than a sector-specific failure. 

Bitcoin and SaaS stocks move together

Pal highlighted a key observation: Bitcoin and Software-as-a-Service (SaaS) stocks have been falling almost in lockstep. This is notable because the two asset classes are fundamentally different, yet both are considered “long-duration assets,” as their valuations depend heavily on future growth expectations.

“What I found destroyed both the BTC narrative and the SaaS narrative,” Pal said. “SaaS and BTC are the exact same chart.”

Bitcoin recently dropped toward the mid-$75,000 range, while several high-growth technology stocks also saw sharp declines. Pal argued that when unrelated assets fall together, it often signals a common macro driver, rather than isolated problems within each market. 

Liquidity drain, not crypto-specific stress

According to Pal, the main pressure point has been U.S. liquidity tightening, worsened by repeated government shutdowns and structural issues in the Treasury market. He pointed to the depletion of the Federal Reserve’s Reverse Repo Facility (RRP), a place where institutions park excess cash overnight, as a key factor. 

In earlier years, when the U.S. Treasury rebuilt its Treasury General Account (TGA), liquidity drains were offset by money flowing out of the RRP. That buffer is now largely gone.

“With no offset available, TGA rebuilds have become pure liquidity drains,” Pal explained.

He also said that a strong rally in gold absorbed much of the remaining marginal liquidity, leaving riskier assets like crypto and growth stocks more exposed.

Fed leadership concerns and market reaction

Some market participants have linked the crypto decline to speculation around Kevin Warsh, reportedly under consideration for a senior Federal Reserve role. Jeff Mei, chief operating officer at crypto exchange BTSE, said investors fear Warsh could maintain a tougher stance on inflation and rate cuts.

Pal rejected that view, calling it a “false narrative.” He argued that Warsh is more likely to follow a Greenspan-era approach, allowing the economy to run hot while relying on productivity gains, particularly from artificial intelligence, to manage inflation.

“Warsh will cut rates and do nothing else,” Pal said, adding that broader liquidity decisions would likely be driven through fiscal and banking channels.

Why this matters for markets

The episode highlights how macro liquidity conditions continue to dominate crypto price action, even as the industry matures. Similar liquidity-driven sell-offs occurred in 2022, when aggressive Federal Reserve tightening triggered sharp declines across both digital assets and technology stocks.

Pal believes the current liquidity headwinds are temporary and expects conditions to improve once the latest U.S. government shutdown is resolved. However, he acknowledged that timing remains uncertain and volatility may persist. “Often in these cycles, time matters more than price,” he said.

For now, the market downturn appears less about crypto’s long-term viability and more about short-term liquidity stress, reinforcing the growing link between digital assets and global macroeconomic forces.

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Cross-chain crypto protocol CrossCurve has confirmed that its bridge was exploited in a smart contract attack, resulting in the loss of approximately $3 million across multiple blockchain networks. 

The incident, disclosed late Sunday, once again underscores the persistent security risks surrounding cross-chain bridges, one of the most vulnerable components in decentralized finance (DeFi).

CrossCurve announced on X that its bridge was “under attack,” citing the exploitation of a vulnerability in one of the smart contracts used for cross-chain operations. The protocol immediately urged users to suspend all interactions as the team works on the breach. 

⚠️ URGENT Security Notice

Dear users,

Our bridge is currently under attack, involving the exploitation of a vulnerability in one of the smart contracts used.

Please pause all interactions with CrossCurve while the investigation is ongoing.

We appreciate your patience and… pic.twitter.com/yfo1KvWoDd

— CrossCurve (@crosscurvefi) February 1, 2026

Blockchain security analysts later confirmed that the exploit allowed attackers to bypass critical validation checks and unlock tokens without proper authorization. 

What happened and how the attack worked

According to Defimon Alerts, shared by blockchain security company Decurity, the attacker used a vulnerability that enabled anybody to spoof a cross-chain message. 

The vulnerability existed in a smart contract linked to CrossCurve’s Axelar-based receiver system. The attacker reportedly called a function called expressExecute on the ReceiverAxelar contract with a forged message.

This bypassed gateway validation and triggered token unlocks on the PortalV2 contract. As a result, assets were released without backing, allowing the attacker to drain funds across several networks.

Defimon Alerts estimated total losses at around $3 million, though the final figure may change as investigations continue. At the time of writing, CrossCurve has not released a complete breakdown of affected assets or chains.

CrossCurve @crosscurvefi (ex https://t.co/4HJ33uOZUS) has been exploited for around 3 million on several networks.

Anyone could call expressExecute on ReceiverAxelar contract with a spoofed cross-chain message, bypassing gateway validation and triggering unlock on PortalV2.… pic.twitter.com/EfYe3Tfo9v

— Defimon Alerts (@DefimonAlerts) February 1, 2026

Response from CrossCurve and Curve Finance

In an effort to recover the stolen funds, CrossCurve CEO Boris Povar publicly shared 10 wallet addresses believed to have received assets from the exploit. He offered a bounty of up to 10% if the funds are returned within 72 hours, a practice commonly referred to as a “white hat” reward.

According to Povar, in case of no contact within the given time frame, CrossCurve will consider the incident as malicious and seek legal alternatives. These include working with law enforcement, filing civil lawsuits, and coordinating with other crypto projects to freeze funds where possible.

Curve Finance that has collaborated with CrossCurve also released a statement that urged users who had invested their votes in CrossCurve pools to reevaluate their hold. The Curve team insisted on the need to be risk-conscious in making decisions when dealing with third-party protocols.

In light of the recent security incident involving https://t.co/3Wv3pEhCu8 (== CrossCurve):

Users who have allocated votes to Eywa-related pools may wish to review their positions and consider removing those votes. We continue to encourage all participants to remain vigilant and… https://t.co/chd5YBOXhr

— Curve Finance (@CurveFinance) February 1, 2026

Why this matters for the crypto industry

Cross-chain bridges have long been a major attack surface in crypto. Over the past few years, bridge exploits have accounted for billions of dollars in losses. 

High-profile incidents include the Ronin Bridge hack, the Wormhole exploit, and the Nomad bridge failure, all of which involved flaws in message verification or validation logic.

The CrossCurve incident is another case of a well-known pattern of a small error in validation code resulting in a massive loss of assets within a few days. Such incidents still bring questions to regulators, investors and developers regarding security assumptions of cross-chain systems.

Related security trends and recent attacks

The broader threat landscape is also evolving. In a recent case, cybersecurity researchers at ReversingLabs uncovered malware hidden inside Ethereum smart contracts.

The hackers exploited the Node Package Manager (NPM) with counterfeit JavaScript packages to covertly extract malicious commands out of the blockchain to enable malware to bypass the usual security checks.

Collectively, these events indicate that attackers are becoming more likely to take advantage of the trust and transparency of blockchain infrastructure itself, and not necessarily by using overtly malicious activity.

How users can stay safe

To the users, the CrossCurve exploit is yet another reminder that there is real risk to interacting with DeFi protocols. Security experts suggest not using new bridges or those with a low audit, exposure to cross-chain products, and keeping a close eye on the announcements of protocols. 

Possible losses can also be minimized by using hardware wallets, not signing blind contracts, and diversifying assets in platforms.

As investigations into the CrossCurve exploit continue, the incident reinforces a central reality of decentralized finance: innovation often moves faster than security, and users remain the final line of defense.

Also Read: Makina Finance Hacked: MEV Bot Snipes 1,299 ETH in $4M Protocol Exploit

A public disagreement has emerged between the leadership of two of the world’s largest cryptocurrency exchanges over the causes of the massive market crash that hit the crypto industry last year on October 10–11. 

Now months after the incident, OKX CEO Star Xu has openly criticized Binance’s actions which led to the crash, while Binance Co-Founder Changpeng Zhao (CZ) has firmly rejected the claims.

“On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day,” Xu said, emphasizing that it was Binance’s high APY USDe campaign that led to the market bloodbath. 

No complexity. No accident.
10/10 was caused by irresponsible marketing campaigns by certain companies.

On October 10, tens of billions of dollars were liquidated. As CEO of OKX, we observed clearly that the crypto market’s microstructure fundamentally changed after that day.… pic.twitter.com/N1VlY4F7rt

— Star (@star_okx) January 31, 2026

The debate centers on one of the largest liquidation events in crypto history, when roughly $19 billion in leveraged positions were wiped out in a single day, triggering sharp price swings and exposing weaknesses in market structure and risk management across major platforms.  

What triggered the market crash

In a detailed post on X, Xu explained the October 10 crash was not an accident or a complex market failure. Instead, he described it as the result of “irresponsible marketing campaigns by certain companies.”

Xu explained that Binance launched a short-term user acquisition campaign offering around 12% APY on USDe, a yield-bearing token created by Ethena. During the campaign, Binance allowed USDe to be used as collateral with the same treatment as traditional stablecoins like USDT and USDC, and without strict limits.

According to Xu, this design decision encouraged users to move large amounts of capital into USDe without fully understanding its risk profile. 

Unlike tokenized money market funds such as BlackRock’s BUIDL or Franklin Templeton’s BENJI, Xu said USDe operates more like a tokenized hedge fund product, relying on arbitrage and algorithmic trading strategies that carry higher risk.

He added that many users viewed USDe as a stablecoin equivalent, even though it embedded significantly more volatility and leverage risk.

Leverage loops and systemic risk

Xu described how risk escalated rapidly as traders began looping leverage. Users converted USDT or USDC into USDe, used USDe as collateral to borrow more USDT, converted the borrowed funds back into USDe, and repeated the cycle. 

“This leverage loop produced artificial APYs of 24%, 36%, and even 70%+, widely perceived as “low risk” simply because they were offered by a major platform,” Xu stated, “Systemic risk accumulated rapidly across the global crypto market.”

This structure created what appeared to be unusually high “low-risk” yields, sometimes exceeding 30% or even 70%, simply because they were offered by a major exchange.

When market volatility increased, USDe briefly lost its peg, triggering cascading liquidations across exchanges. Xu said weaknesses in risk controls around assets such as wrapped Ether and liquid staking tokens worsened the situation, causing some tokens to trade near zero during the panic.

He claimed the damage from the crash was, in some ways, more severe than the collapse of FTX, citing widespread losses for traders and crypto firms, including OKX customers.

CZ rejects allegations as “far-fetched”

When criticized, Changpeng Zhao has always denied claims over Binance having any involvement in causing the crash. Speaking during a question-and-answer session on Binance’s social media channels, Zhao described claims blaming Binance as “far-fetched,” according to Bloomberg. 

Zhao said Binance did not trigger the forced liquidations and emphasized that the exchange operates under regulatory oversight in Abu Dhabi, with additional monitoring arrangements involving U.S. authorities. 

He noted that regulators have the ability to review Binance’s systems and operations. Addressing platform issues during the crash, Zhao said Binance had already compensated affected users. 

The exchange reportedly paid out around $600 million, including $300 million to retail traders and $100 million reserved for institutional clients facing liquidity stress.

Zhao also warned about coordinated online campaigns spreading misinformation, claiming some attacks were driven by paid actors attempting to damage Binance’s reputation. 

Why the dispute matters for crypto markets

The dispute raises more general issues of market structure, leverage, and transparency in crypto trading. The October liquidation incident revealed the extent to which aggressive yield products and collateral policy can increase risk in volatile times.

The same issues arose during previous market crashes, such as the Terra-Luna crash in 2022 and the FTX crash later that year, which demonstrated how interconnected systems and leverage can amplify systemic shocks.

While Xu said he was not trying to attack Binance, he claimed that big platforms have a greater responsibility because they have the power to influence the actions of the market. Zhao, in his turn, insisted that Binance was responsible and adhered to the regulatory requirements.

Impact and what comes next

The controversy is expected to affect the design of yield products by exchanges, collateral regulations and marketing disclosures in the future.

The question of whether crypto platforms are neutral marketplaces or actively influence risk-taking behavior is increasingly being questioned by regulators and market participants.

With the crypto markets still expanding, the October crash is a lesson that high yields, leverage, and complex products may be associated with hidden risks. The response of exchanges can determine the investor trust and market stability in the future.

Also Read: Binance’s CZ in Talks With Governments on Tokenization

The U.S. Commodity Futures Trading Commission (CFTC) is moving forward with a broad reset of its regulatory approach to prediction markets, announcing plans to write new rules that clarify how these fast‑growing platforms will operate under federal law. 

The announcement comes from CFTC Chairman Michael Selig at a panel alongside Securities and Exchange Commission (SEC) Chair Paul Atkins, as the tension between federal regulators, states, and the courts intensifies. 

Prediction markets let users trade contracts tied to future outcomes, such as elections, economic events, and sports results. Platforms such as Polymarket, Kalshi, Coinbase, DraftKings, FanDuel, Robinhood, and others operate or plan to launch products that let people buy and sell these contracts. 

But questions about legality, jurisdiction, and consumer protections have always shadowed this sector, prompting the CFTC’s renewed regulatory effort. 

Why the regulatory pivot?

Chairman Selig emphasized that the current framework for event contracts, the legal term used by the CFTC, has created “uncertainty” rather than clarity for market participants. 

To address this, he directed staff to withdraw a 2024 proposal that would have banned political and sports-related event contracts, as well as a 2025 advisory cautioning the offering of sports‑related contracts amid legal disputes. 

Selig told the audience that the previous efforts, while well‑intended, failed to provide clear guidance and instead left operators and traders in a regulatory gray zone. 

“It is time for clear rules and a clear understanding that the CFTC supports lawful innovation in these markets,” he said, reflecting his goal to balance innovation with investor protection and market integrity. 

The new rulemaking will aim to lay out precise standards for how event contracts should be structured, vetted, and overseen, including how they relate to derivatives law and whether federal jurisdiction preempts conflicting state gaming laws. 

State vs Federal: A growing legal clash

Legal challenges have become widespread. Multiple states have argued that prediction markets’ sports‑related contracts resemble unlicensed gambling and should fall under state gaming laws, not federal oversight. 

For example, Tennessee’s Sports Wagering Council recently ordered Kalshi, Polymarket, and Crypto.com to halt sports contracts and refund customers by Jan. 31, 2026, claiming these offerings violate state law. 

BREAKING: Tennessee Sports Wagering Council sends cease-and-desist letters to Kalshi (📸), Polymarket and Crypto, demanding that they cease offering sports event contracts to TN customers immediately, void all pending contracts and issue refunds by Jan. 31. Lawsuits are imminent. pic.twitter.com/jDIPIwsrCn

— Daniel Wallach (@WALLACHLEGAL) January 9, 2026

Similar actions have been taken in Connecticut, and courts in Massachusetts have barred Kalshi from offering sports markets without state gambling licenses. 

In contrast, federal courts previously ruled that some political event contracts did not constitute illegal gaming, underscoring the debate over jurisdiction. Selig signaled that the CFTC may engage more actively in these cases. 

He directed staff to reassess how the agency participates in ongoing litigation, especially where jurisdictional questions are contested, asserting that “the Commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives.” 

Growth, innovation, and scrutiny

Prediction markets are not new, they have operated under the CFTC’s jurisdiction for years. However, rapid adoption in the last few election cycles, expanding retail participation, and the integration of crypto platforms have dramatically increased their profile. 

In late 2025, Polymarket re‑entered the U.S. market after acquiring a regulated exchange operator and winning CFTC approval to operate as a registered designated contract market. 

Kalshi, meanwhile, has handled billions in trading volume, especially on questions tied to major sports leagues, elections, and economic events. These developments drew attention not just from regulators but also from legislators. 

A proposed Public Integrity in Financial Prediction Markets Act of 2026 would seek to ban government officials from trading on contracts related to their official duties, after a controversial high-stakes trade on a Venezuelan political outcome sparked concern about insider trading. 

Industry and market impacts

The regulatory pivot could have far‑reaching effects. Proponents argue a clearer federal framework will reduce legal risk, encourage responsible innovation, and support transparent markets. 

The critics fear that the state regulators will still push their own standards, resulting in a patchwork of regulations that do not reflect the federal intentions. Daily volumes and contract offerings are growing, which investors and traders are observing. 

While some states continue enforcement actions, federal efforts to harmonize rules may impact where and how prediction markets operate, especially if legislation formalizes the CFTC’s authority over event contracts. 

Looking ahead

As Selig and the SEC coordinate on digital asset and prediction market rules, stakeholders across finance, gaming, and technology will be closely tracking how these regulatory contours take shape. 

The outcome will affect not only specialized platforms like Kalshi and Polymarket but any exchange offering predictive financial products tied to real‑world events.

Also Read: Vitalik’s “Anti-Crazy Mode” Nets $70,000 on Polymarket

Bitcoin extended its sharp sell-off late Thursday, falling nearly 7% in 24 hours to trade around $82,000 after briefly dipping as low as $81,000 during U.S. trading hours. 

The decline erased multi-month gains from Bitcoin’s price in a single day and triggered a wave of forced liquidations across the crypto market, highlighting renewed fragility in risk assets. 

According to CoinGlass data, more than $880 million worth of crypto long positions were liquidated within one hour during the steepest part of the drop, with total liquidations reaching about $1.68 billion over the past 24 hours. 

The broader cryptocurrency market followed Bitcoin’s decline, with major tokens falling between 7%–9%. Ethereum was hovering close to $2,750, as BNB and XRP were trading at approximately $850 and $1.75, respectively.

At current levels, Bitcoin is trading just above its November dip near $81,000. Market participants are closely watching this zone, as a decisive break could open the door to a deeper move toward the April 2025 lows near $75,000, which formed during tariff-related market stress earlier in the year.

Fed leadership speculation rattles risk assets

One of the factors weighing on sentiment appears to be renewed uncertainty around U.S. monetary policy leadership. Traders reacted to reports that President Donald Trump may nominate former Federal Reserve Board member Kevin Warsh to replace current Fed Chair Jerome Powell. 

Trump said he would announce his nominee on Friday, a day after publicly criticizing the Fed for not cutting interest rates. Prediction market Polymarket showed odds of Warsh being selected surging to 90%, up sharply from 37% just hours earlier.  

Before the shift, some investors had expected a more dovish candidate, such as BlackRock fixed-income chief Rick Rieder. This threat of an even more aggressive Fed policy puts additional strain on already weak crypto markets, which are extremely sensitive to liquidity expectations.

Analysts see correction, not collapse

Despite the sharp move, several analysts describe the current decline as a corrective phase rather than a structural breakdown. Technically, Bitcoin failed to hold a rebound above $83,800, keeping downside risks in focus. Some analysts now point to the November low near $80,600 as a near-term test.

Market analyst CryptoZeno noted that Bitcoin’s returns have turned negative in recent months, down about 26% since last July, following a strong expansion phase in mid-2025. 

The concept of leverage unwinding is supported by derivatives data. Previous declines of 8% to 10% in futures open interest have been accompanied by local price lows, such as declines in February-March, early April, and mid-November 2025.

These patterns suggest forced selling may be approaching exhaustion rather than signaling a prolonged downtrend.

Strategy stock slides as Bitcoin breaks key support

The sell-off also hit crypto-linked equities. Strategy Inc. (NASDAQ: MSTR), widely known for holding Bitcoin as a core treasury asset, fell as much as 9.63% on Thursday, trading near $143, close to its 52-week low. 

The stock often amplifies Bitcoin’s moves due to the company’s large exposure. Earlier this week, Strategy bought 2,932 BTC for $264 million, lifting its total holdings to 712,647 BTC, roughly 3.4% of Bitcoin’s fixed supply. 

While the accumulation underscores long-term conviction, the recent price drop highlights the short-term volatility risks tied to corporate Bitcoin strategies. Investors are, at least, considering macro uncertainty, heavy lever unwinds, and key technical levels. 

It will probably be determined by the overall market response to the changes in Fed leadership and liquidity expectations in the coming days whether Bitcoin will stabilize around the existing support or fall further.

Also Read: Bitcoin Falls Below $85K as $850M Gets Liquidated in Market Sell-Off

The U.S. Securities and Exchange Commission (SEC) has clarified that tokenized securities remain subject to federal securities laws, reinforcing that placing a financial instrument on a blockchain does not alter its legal status. 

The guidance was issued Wednesday through a joint staff statement from the SEC’s Divisions of Corporation Finance, Trading and Markets, and Investment Management. 

The statement is made in the context of increasing attention of financial institutions to the tokenization of traditional assets (stocks, bonds, funds) with blockchain technology. Although the agency recognized the operational distinction of on-chain recordkeeping, it still highlighted that the regulatory obligations are the same.

Legal obligations are not altered by blockchain format

The SEC states that securities issued or registered on a blockchain should be subject to the same registration, disclosure, and compliance requirements as those of securities issued using traditional systems. 

The agency claimed that the issuance format, on-chain or off-chain, does not influence the federal securities laws. On-chain transactions are transactions that are recorded on a blockchain as ownership and transfers instead of using the conventional databases. 

The SEC observed that issuers can issue tokenized securities in a separate category or in combination with conventional securities. In some cases, regulators can consider both formats as one and the same class under some laws as they have rights and privileges that are substantially similar. 

The main difference, which the statement clarified, is the way issuers keep records of shareholders. Rather than off-chain databases, issuers or their representatives can rely on a single or multiple crypto networks to monitor ownership, without altering the legal nature of the security.

Regulation arrives amid changing crypto enforcement

The explanation comes in the fact that the SEC has changed its approach to crypto regulation in the last year. During the Trump administration, the agency has abandoned or shut down over a dozen enforcement actions of big crypto companies. 

Some of those cases focused on the issue of whether digital tokens, staking services, or wallet infrastructure were unregistered securities.

Although the enforcement posture is less aggressive, the statement of Wednesday strengthens the legal basis of most of the previous cases by restating that the securities laws are applicable irrespective of the technological structure. 

Nevertheless, the guidance does not consider whether crypto-native products are securities in the first place, which is a question that is legally unanswered.

The clarification and its importance to markets

The declaration offers regulatory certainty to institutions that consider tokenized securities, especially with traditional finance starting to experiment with blockchain-based settlement and recordkeeping. 

Meanwhile, it is an indication that innovation will not spare products of regulation. Although the SEC has reduced certain crypto enforcement, it still pursues cases of activities like Bitcoin mining services, which it claims can be securities offerings. 

The guidance suggests that regulatory scrutiny will focus on economic reality rather than labels or technology. As tokenization gains traction, the SEC’s message is clear: blockchain may change how securities move, but not how they are regulated.

Also Read: Ondo Finance Demands Clear Rules for Digital Asset Securities from SEC

A low-profile crypto trader has drawn attention after he generated over $2 million in profits within 24 hours on the decentralized perpetuals exchange Hyperliquid, according to data from blockchain intelligence firm Arkham Intelligence. 

The trade highlights both the growing influence of on-chain transparency and the rising activity on decentralized derivatives platforms.

How the trade happened

Arkham’s on-chain analysis shows that the trader built roughly $4.5 million in leveraged long exposure to HYPE, Hyperliquid’s native token, shortly before a sharp price rally. 

Track Wanyewest on Arkham:https://t.co/lYebOUK3R7

— Arkham (@arkham) January 28, 2026

The gains came as HYPE surged from recent lows near $21 to around $34–35, marking a 50–65% increase in recent weeks. The trader’s positions were large enough to place them among Hyperliquid’s top daily performers. 

Arkham’s entity mapping linked activity across multiple exchanges, including Binance, showing how blockchain data can connect wallets and trading behavior even when identities remain anonymous.

The portfolio behind the gains was mostly a combination of ETH holdings with Hyperliquid perpetual contracts, which confirms a trend in which traders pledge ETH to gain access to high leverage derivatives on decentralized exchanges.

Hyperliquid’s growth and the HYPE rally

The trade occurred amid a broader resurgence in Hyperliquid’s ecosystem. One of the main forces has been the fast implementation of HIP-3, which enables users to open decentralized perpetual markets through the staking of HYPE.

This has expanded trading beyond crypto assets into commodity-linked perpetuals, including gold and silver. Open interest on HIP-3 markets recently climbed to over $790 million, up from around $260 million a month earlier. 

HIP-3 open interest reached an all-time high of $790M, driven recently by a surge in commodities trading.

HIP-3 OI has been hitting new ATHs each week. A month ago, HIP-3 OI was $260M.

— Hyperliquid (@HyperliquidX) January 26, 2026

Trading activity has also intensified, with Silver-USDC perpetuals posting more than $1.2 billion in 24-hour volume, making it one of the platform’s most actively traded contracts.

Hyperliquid routes 50% of trading fees into HYPE buybacks, a mechanism that analysts say has supported token demand alongside reduced sell pressure following earlier staking unlocks.

Similar high-risk wins

This is not an isolated case. Hyperliquid has experienced several big trades in recent months such as a $1.5 million deposit turned into $875,000 in profit with leveraged HYPE longs, and a position scaled to $8.1 million that earned over $1 million in unrealized gains.

In January 2026, another trader who invested $85, made over $115K on a Chinese memecoin. Nonetheless, according to the market observers, these gains are associated with a lot of risk. Extremely high leverage on perpetuals has also resulted in the loss of multimillion dollars when the market turns.

Another example just this week in Solana, a wallet made $285 into $627,000 in a 24-hour timeframe by buying the new ZReaL token, which brought up the issue of timing benefits and insider trading.

These incidents highlight the way decentralized trading platforms are transforming market participation, providing transparency and extreme volatility. Although big wins get attention, analysts warn that big wins are an exception, not a rule, particularly in high-leverage settings.

Also Read: Polymarket Whale Turns Fortunes with $6.12M Profit in Just 24 Hours

Arthur Hayes, Co-Founder of BitMEX, says Bitcoin could see a strong upside move if the US Federal Reserve intervenes in Japan’s currency and bond markets through balance sheet expansion. 

In his latest essay titled “Woomph,” Hayes argues that stress in the Japanese yen and government bond market may eventually force central banks to inject fresh liquidity into the global financial system, a development that has historically supported Bitcoin prices.

Hayes uses the metaphor of a “woomph,” a sound that signals hidden danger in a snowpack, to describe recent market signals coming from Japan. According to him, the sharp weakening of the yen alongside rising yields on long-term Japanese Government Bonds (JGBs) is an unusual and troubling combination. 

“Woomph” is a an essay on my theory about how the Fed could be printing money to manipulate the yen and JGB markets. If true money printer go fucking BRRRR!

https://t.co/VdCUcd784t pic.twitter.com/loIlR5nOd0

— Arthur Hayes (@CryptoHayes) January 27, 2026

Normally, a country’s currency strengthens when bond yields rise, reflecting investor confidence. Japan’s divergence, Hayes notes, suggests growing strain beneath the surface.

Why Japan’s bond and currency stress matters

Japan plays a major role in global financial markets. Its investors hold one of the largest foreign investments in the US Treasury bonds, and the nation is highly dependent on imports, in particular, energy.

A weaker yen raises inflation risks for Japan, while higher JGB yields increase borrowing costs for the government and pressure the Bank of Japan’s balance sheet. Hayes argues that the Japanese authorities should not be able to stabilize these markets otherwise the US can intervene to safeguard its interests. 

Japanese investors selling US Treasuries in large amounts in a brief period would drive up US yields at a time when Washington is already operating at historically large deficits. 

To avoid this instability, Hayes thinks that the Federal Reserve might act indirectly by increasing its balance sheet to boost the prices of the yen and the JGBs. 

“The line item to monitor is Foreign Currency Denominated Assets,” Hayes emphasized. “They will not provide a detailed breakdown of exactly which assets it owns. We must infer from JGB price action whether the Fed is present. “

Such intervention, he explains, would involve the New York Fed creating new dollar liquidity, exchanging it for yen, and potentially buying Japanese government bonds. This process would increase the Fed’s balance sheet and inject more dollars into the financial system.

Implications for Bitcoin and crypto markets

Hayes says this type of liquidity expansion would be positive for Bitcoin. Historically, Bitcoin has been doing well when central banks inject more money into the economy because investors seek an alternative to fiat currencies.

While Hayes cautions that the impact may not be immediate, he believes sustained balance sheet growth would eventually lift Bitcoin and other crypto assets in nominal terms. 

“Bitcoin will pump alongside a growing Fed balance sheet (gold). It might not happen on your timeframe if you are 100x leveraged trading 1m candles on some shitcoin perp, but Bitcoin and quality shitcoins will mechanically levitate in fiat terms as the quantity of paper money rises,” he said. 

Recent market activity supports his broader thesis. In the last year, Bitcoin has been mostly trading flat even with the interest rate cuts in the US indicating that traders are waiting to see more indicators of new liquidity and not policy signals alone.

Current Bitcoin Market Snapshot

The current price of Bitcoin was $88,753.36 and the 24-hour trading volume was $38.17 billion at the time of writing. It is down nearly 10% from the month high, according to CoinMarketCap data. 

While Hayes’ analysis remains a theory and not a proven policy outcome, it points to the way in which the traditional financial market changes, especially in Japan, might determine the next significant step of Bitcoin.

Also Read: Strategy Inc Buys 2,932 Bitcoin for $264M; Total Holdings Hits 712,647

Digital asset manager Bitwise has taken its first direct step into decentralized finance (DeFi) by launching non-custodial on-chain vaults in partnership with lending protocol Morpho. 

The firm confirmed the launch on January 26, and it was a change of direction in its traditional emphasis on exchange-traded products and research targeting institutional investors. 

A shift beyond ETFs and traditional crypto products

The new product allows users to earn yield on stablecoins while retaining full control of their funds. Instead of transferring custody, investors deposit assets into an onchain vault that is managed through smart contracts. Bitwise curates the strategy and oversees risk, but all execution happens transparently on-chain. 

According to Bitwise, the first vault focuses on stablecoins and deploys capital into overcollateralized lending markets on Morpho. The strategy currently targets returns of up to 6% annually, though actual yields may vary depending on market conditions.

“Finance is moving onchain. Vaults are a key part of that, offering investors a transparent way to earn digital yield on their assets,” Bitwise said in a post on X announcing the launch.

Finance is moving onchain. Vaults are a key part of that, offering investors a transparent way to earn digital yield on their assets.

Today, we’re excited to announce that Bitwise is launching non-custodial vault strategies as a curator on @Morpho.

The quick details:

-… pic.twitter.com/pUz9Upk4lV

— Bitwise (@BitwiseInvest) January 26, 2026

How the vault works and why it matters

The vault allocates deposited funds to lending pools where borrowers provide excess collateral, reducing counterparty risk compared to unsecured lending models. All positions remain visible on-chain, and users can withdraw funds at any time, unlike some staking or locked-yield products.

Strategy design and real-time risk oversight are led by Jonathan Man, CFA, Bitwise’s Portfolio Manager and Head of Multi-Strategy Solutions. The firm said the vault leverages infrastructure and risk frameworks it has developed over several years managing crypto investment products.

“Decentralized finance, or DeFi, offers compelling yield opportunities, but the complexity of managing onchain risk has kept many investors on the sidelines,” Man said. “Bitwise provides value-add by layering professional guidance and  risk management experience onto these non-custodial tools.”

The move comes as asset managers increasingly explore blockchain-based financial infrastructure rather than relying solely on regulated wrappers such as ETFs. While Bitwise has been best known for serving traditional investors, the Morpho vault signals a broader industry trend toward treating DeFi as core financial infrastructure.

Morpho’s growing institutional footprint

Morpho has become a prominent platform of curated lending strategies, where professional managers can create custom vaults with standardized smart contracts. The protocol is now the seventh-largest DeFi platform by total value locked (TVL), having a fund of approximately $6.7 billion, as per DeFiLlama. 

The platform’s growth accelerated in late 2025 following partnerships with Coinbase, Crypto.com, and Société Générale’s digital asset unit SG-FORGE. Earlier this week, Morpho also announced that curated vaults from Sentora had been integrated into Kraken’s DeFi Earn program. 

Kraken's DeFi Earn has integrated @SentoraHQ curated vaults that allocate to Morpho.

DeFi Earn connects users to the best onchain yield opportunities, all within @krakenfx. pic.twitter.com/dbY3wCp8qL

— Morpho 🦋 (@Morpho) January 26, 2026

“Bitwise joining Morpho as a vault curator highlights growing institutional demand for allocating capital onchain through noncustodial infrastructure,” Morpho Co-Founder and CEO Paul Frambot said.

What comes next for Bitwise’s DeFi strategy

Bitwise has not disclosed performance data or timelines for expanding its vault offerings. However, the firm previously predicted that on-chain vaults, often described as “ETFs 2.0” could double assets under management in 2026. 

The Morpho launch appears to be an early step in that longer-term strategy, as traditional asset managers cautiously deepen their involvement in decentralized finance.

Also Read: Bitwise Launches BPRO: The First Actively Managed ETF Combining BTC & Gold

Valour, the UK subsidiary of Nasdaq-listed digital asset firm DeFi Technologies, has received regulatory approval to offer cryptocurrency exchange-traded products (ETPs) to retail investors on the London Stock Exchange (LSE). 

The approval, granted by the UK’s Financial Conduct Authority (FCA), allows Valour to expand beyond professional investors and make its products available to the wider public.

Bitcoin and Ethereum staking ETPs begin trading

The new offerings that have been approved are the 1Valour Bitcoin Physical Staking ETP and the 1Valour Ethereum Physical Staking ETP, which started trading on the LSE on January 26, 2026. 

Valour has secured UK regulatory approval and has begun offering select Valour ETPs to UK retail investors through the London Stock Exchange starting January 26, 2026.

💬 “This is a major milestone for Valour and @DeFiTechGlobal as we continue expanding access to regulated… pic.twitter.com/hkU9kdiL00

— Valour (@ValourFunds) January 26, 2026

These products offer physically collateralized exposure to Bitcoin and Ether and include staking rewards in their net asset value, allowing investors to earn blockchain-based yields in standard brokerage accounts.

“This is a major milestone for Valour and DeFi Technologies as we continue expanding access to regulated digital asset investment products,” said Johan Wattenstrom, Chairman and CEO of DeFi Technologies. 

He further explained that the approval was especially important to the long-term strategy of the company considering that the UK is a financial hub in the world.

UK regulatory shift creates retail opportunity

In October 2025, the FCA removed a decades-old ban that had limited retail access to crypto exchange-traded notes since 2021. The updated framework allowed crypto ETPs to be sold in retail, but only of Bitcoin or Ether, physically backed, and with regulated custodians having cold storage facilities.

These products are not subject to the Financial Services Compensation Scheme under the existing regulations, and investors are therefore at risk of issuer and market risks.  

Crypto ETFs will also transfer to Innovative Finance ISAs as of April 2026, as they are now regulated as such. Valour had already floated such products in the LSE, but only professional investors could access it. 

The firm is also credited with the introduction of what it has termed as the physically backed Bitcoin staking ETP in the world. Valour has since launched an exchange-traded product based on Solana in Brazil in December, outside the UK.

Market environment and general industry trends

The introduction is timed when the crypto ETP market is of mixed mood. CoinShares reported that crypto-based ETPs experienced over $1.7 billion of outflows last week, a turnaround of robust inflows in the earlier weeks. 

According to the Head of Research at CoinShares, James Butterfill, the move was caused by declining expectations of interest rate reductions, poor price action, and disillusionment over the use of digital assets as an inflation hedge.

With the temporary outflows, the largest asset managers, including BlackRock, Fidelity, and Grayscale, are continuously adding more crypto ETFs, indicating that institutional investors have long-term interest. 

UK tightens grip on crypto regulation

The approval of Valour is also in line with the wider regulatory involvement in the UK crypto industry. In January this year, Ripple secured FCA permission to conduct itself as an Electronic Money Institution, which will enable it to increase regulated payment services in the country.

The UK regulators should implement a full-fledged crypto regulatory framework by October 2027, which may further define the supply and form of digital asset investment products to retail investors.

Also Read: FCA to Open UK Crypto Licensing Window in September 2026

The decentralized social media landscape just witnessed its most significant consolidation to date. Today, Farcaster Co-Founder Dan Romero put an end to rumors of a total shutdown, confirming that while the founding team is stepping back, the protocol will live on under the stewardship of Neynar. 

Romero’s clarification comes days after an acquisition deal with developer‑infrastructure company Neynar was announced and addresses speculation about leadership changes and funding returns. 

In a post on X, Romero reassured users that Farcaster remains functional, reporting about 250,000 monthly active users and over 100,000 funded wallets as of December 2025. 

Given some rumors, wanted to post a few clarifications:

Farcaster is not shutting down. The protocol works and will continue to work. There were 250,000 MAU in December and over 100,000 funded wallets. The acquirer, Neynar, is a venture-backed startup and plans to shift…

— Dan Romero (@dwr) January 22, 2026

He confirmed that Neynar plans to emphasize developer‑focused growth while maintaining the protocol’s current services. 

What has changed and what hasn’t

The transition of Farcaster’s protocol contracts, codebase, apps, and AI token launchpad Clanker to Neynar began late last week. According to the acquisition announcement, co-founder Romero and Varun Srinivasan will step away from daily operations. 

Neynar, backed by venture capital, will now assume responsibility for ongoing development, infrastructure, and ecosystem coordination. 

From a user perspective, there are no immediate disruptions to the platform. Farcaster’s mobile and web apps, as well as its core features, are expected to operate as usual while Neynar prepares a new developer‑centric roadmap. 

Romero acknowledged the difficulty of the decision, saying this handoff was intended to propel Farcaster into its next growth stage. “After five years, it’s clear Farcaster needs a new approach and leadership to reach its full potential,” he wrote. 

Why return $180M to investors?

In the same statement, Romero addressed another major concern: funding. He said that “Merkle, we’re planning to return the full $180M raised back to investors.” 

This commitment has drawn attention because such capital returns are rare in the crypto sector, where many projects burn through funds without delivering sustained value. 

Romero also explained his personal finances, saying that his recent funds used to buy a property were a result of his Coinbase IPO proceeds, which disproved rumors spread on social media.

The new blueprint

Farcaster emerged in 2021 with the goal of decentralizing social media, enabling users to own their identity and social data on‑chain. It raised significant funding, including a $150 million Series A in 2024, and briefly achieved a valuation near $1 billion.

The sale of Farcaster explained

Farcaster started as an idea:

– Dan Romero leaves Coinbase
– wants a social network without platform risk
– users own their identity
– apps can come and go
– teams up with Varun Srinivasan
– builds on Ethereum, later Optimism

2022

– raises $30M… pic.twitter.com/za19XfuXb9

— StarPlatinum (@StarPlatinum_) January 21, 2026

Although the initial interest was high, sustainable user growth and monetization eluded the company, and later in 2025 the team began working on wallet and trading functionality, abandoning a strictly social first model. 

With the transition process taking place in the next few weeks, the future of Farcaster will probably be more evident as Neynar presents its intended roadmap. The Farcaster-Neynar deal may also become a blueprint for other struggling decentralized social projects. 

Instead of a slow death or a “rug pull,” the founders seem to have secured the protocol’s future with a technical partner, working to protect their reputation with a full refund, and trying to clear a path to innovate in the sector.

Also Read: Farcaster Sale Ignites X Debate Over Its Future

Circle’s CEO Jeremy Allaire says the company does not see its dollar-pegged stablecoin USDC as a competing payment product, but views it as a neutral financial infrastructure designed to work alongside banks and card networks.

Speaking on CNBC’s Squawk Box during the World Economic Forum in Davos, Switzerland, Allaire said Circle does not view payment giants such as Visa or Mastercard as rivals. Instead, he described them as “significant partners,” stressing that stablecoins function more like shared platforms than closed financial products.

Allaire said “stablecoins are network-effect businesses,” and their usefulness grows as more developers, institutions, and payment providers integrate them. “We’re a neutral company. We don’t compete with banks, we don’t compete payment companies, we don’t compete exchanges,” he said.

A future where AI agents control the wallet

Allaire argued that stablecoins operate as utilities rather than traditional fintech products. As adoption expands, the cost of storing and moving money could fall toward zero, especially as automation and AI begin to handle payment flows.

“In that future world, where AI agents are doing the money movement, it’s going to be hard to know exactly what the payment business model is over that period of time,” he said, adding that the long-term structure of the payments industry remains uncertain.

He also addressed concerns that banks launching their own stablecoins could threaten USDC’s growth. According to Allaire, broader participation strengthens the overall ecosystem rather than weakening it. “The more people who connect to them, the more usage they get,” he said.

Circle’s USDC is currently the second-largest stablecoin by market capitalization, with about $73.6 billion in circulation, behind Tether’s USDT at roughly $186.6 billion, according to DeFiLlama data. The total stablecoin market stands at around $308.18 billion.

Notably, stablecoins’ $33 trillion transaction milestone in 2025, exceeding Visa and Mastercard’s combined volume, signals a shift toward blockchain-based backend settlement as a standard for global value transfer.

Regulation, growth outlook, and market context

When asked about the stalled Digital Asset Markets Clarity bill in the US Congress, Allaire said there is “clearly a bipartisan desire” to move forward.

He noted that the legislation goes beyond stablecoins and could shape how digital tokens integrate into capital markets, an area of interest for both traditional banks and crypto firms.

Allaire said Circle takes a conservative view on long-term growth assumptions, even as USDC circulation has grown roughly 80% year over year for two consecutive years. He said a compound annual growth rate of around 40% remains a “reasonable baseline.” 

Circle went public in June 2025, pricing its IPO at $31 per share before opening at $69. The stock later peaked at $263.45 in June itself, but has since retraced to around $72, according to Google Finance.

Partnerships highlight stablecoin momentum

Recent developments suggest stablecoins are increasingly integrating with traditional payment rails. In July, stablecoin infrastructure firm BVNK partnered with Visa to enable stablecoin payouts via Visa Direct’s $1.7 trillion real-time payments network.

Earlier, in August, Mastercard and Circle launched USDC and EURC settlement services across Eastern Europe, the Middle East, and Africa. The move allows merchants to settle transactions directly in stablecoins, reducing settlement time and liquidity friction.

These alliances conform to the argument by Allaire that stablecoins are not supplanting financial systems, but are gradually integrated into them, which is a gradual change in the manner in which money flows around the world, without yet redefining the entire business model of payments.

Also Read: Ripple’s Stablecoin Is Now Live on Binance for Trading

Social media platform X is planning to introduce a new onboarding feature called “Starterpacks” that aims to help new users quickly find and follow curated lists of accounts tied to specific interests, including cryptocurrencies, technology, business and more. 

The company’s Head of Product, Nikita Bier, announced the initiative in a recent X post, saying the tool will launch “in a few weeks” after several months of work to identify and compile the most relevant accounts across thousands of topics.

Over the last few months, we scoured the world for the top posters in every niche & country

We've compiled them into a new tool called Starterpacks: to help new users find the best accounts—big or small—for their interests

⬇️ Reply below with a topic you're most interested in… pic.twitter.com/MYIIQAaJaL

— Nikita Bier (@nikitabier) January 21, 2026

Over 1,000 interest categories already curated

According to Bier, X has already prepared over 1,000 interest categories that cover subjects from memecoin trading and economics professors to software builders and more eccentric personalities. He also shared that they have plans to expand the curated niche lists to 3,000 within the next few months to better match diverse interests.

In a video shared alongside the announcement, the Starterpacks concept shows how new users can choose topics of their interest and immediately follow suggested accounts, rather than building their feed manually over time. 

Bier explained that one of X’s biggest challenges is helping users grow their accounts and find relevant content. In a recent post, he had noted that “power users” have spent years curating their timelines, but new accounts often struggle to escape mainstream news and politics to find niche interests like crypto communities. 

Starterpacks are intended to address that gap by surfacing top voices and accounts for particular interests.

Why Starterpacks matter for crypto communities

The announcement comes amid discussions that engagement around cryptocurrency content on X has declined. Data shared on social media suggested that posts containing the word “Bitcoin” fell by around 32% in 2025, hinting at reduced crypto visibility on the platform. 

There were 96,000,000 posts on X containing the word "bitcoin" in 2025, a decrease of 32% year over year. H/T @wullon pic.twitter.com/bZMS5OSdFs

— Jameson Lopp (@lopp) January 20, 2026

Having Starterpacks with a crypto-specific category, X might be aiming to revitalize the interest and enable users to more conveniently connect with well-known commentators, analysts, and influencers in the crypto domain.

The new feature also reflects a broader trend in social platforms trying to personalize onboarding. Similar tools have already appeared on rival apps: decentralized platform Bluesky released its own “Starter Packs” in mid‑2024, and Meta’s Threads began testing curated feeds in late 2024, letting users follow custom topic channels from the start. 

This convergence suggests a growing recognition that interest‑based discovery drives user engagement. 

Crypto market context in early 2026

X’s move also takes place as the crypto market starts 2026 with mixed signals. Bitcoin’s price has fluctuated near the low‑to‑mid $90,000 range, with periods of consolidation and volatility as traders digest macroeconomic data and regulatory developments. 

Although certain predictions are still positive regarding the future price potential, the short-term trading has been impacted by the regulatory delays and the pressure to make profits.

Looking ahead

Starterpacks will be launched within the next few weeks, providing new users with an option of creating relevant feeds much easier since the very beginning. In the case of X, the feature would assist in retaining and increasing the interest in niche topics by decreasing the friction of finding the influential voices manually. 

It will be seen whether it will greatly increase long-term interaction, especially in such fields as crypto, as the market is still developing.

Also Read: Vitalik Buterin Slams “Corposlop” as Crypto Social Turns Toxic

F/m Investments has asked the US Securities and Exchange Commission (SEC) for permission to record ownership of its existing exchange-traded fund (ETF) shares on a blockchain, marking a potential first filing for the regulated ETF market.

On January 21, the firm submitted the exemptive application requesting permission to tokenize shares of its 3-Month Bill ETF of $6.3 billion of its US Treasury (TBIL). If approved, the proposal would permit tokenized and conventional ETF shares to coexist under the same ticker, CUSIP (Committee on Uniform Securities Identification Procedures), fees, rights and disclosures. 

However, the fund’s investment strategy, holdings, trading mechanics, and exchange listing would remain unchanged. The filing does not change the ETF itself but is concerned with the way ownership records are kept.

The move would make short-term US Treasuries a real-world test case for integrating blockchain-based ownership records into regulated securities markets, rather than operating outside existing rules.

Tokenization moves inside regulatory framework

According to the company, the application would allow TBIL shares to be recorded on a permissioned blockchain ledger while remaining fully compliant with the Investment Company Act of 1940 and Rule 6c-11.

F/m said the structure would preserve traditional investor protections, including board oversight, daily portfolio transparency, third-party custody, and audits.

“Tokenization is coming to securities markets whether we file this application or not,” said Alexander Morris, CEO of F/m Investments.

“The question is whether it happens inside the regulatory framework investors have relied on for 85 years, or without that set of protections for investors.” The filing was made in collaboration with The RBB Fund, Inc., F/m’s multi-series trust.

Bridging traditional brokerage and blockchain settlement

David Littleton, Co-Founder and President of F/m Investments, said the goal is to allow TBIL to operate as a standard Treasury ETF while enabling regulated movement between traditional brokerage systems and token-aware settlement platforms.

Market commentators also noted the significance of the filing. ETF analyst Nate Geraci wrote on X that F/m Investments has become “the first ETF issuer to file with the SEC for tokenized ETF shares,” adding that it could be “the first of many.”

F/m Investments becomes first ETF issuer to file w/ SEC for tokenized ETF shares…

Would be for the F/m US Treasury 3 Month Bill ETF (TBIL).

"Tokenization is coming to securities markets whether we file this application or not.” – CEO Alexander Morris

First of many. pic.twitter.com/lyH9Qh8LPR

— Nate Geraci (@NateGeraci) January 21, 2026

Growing momentum around real-world asset tokenization

The filing comes as tokenization of real-world assets (RWAs) gains traction across traditional finance. Over the past year, several major firms have launched blockchain-based versions of familiar financial products.

The digital liquidity fund by BlackRock has grown fast on Ethereum, and JPMorgan has recently launched a tokenized money-market fund which is targeted at institutional clients. Major exchanges have also announced tokenization initiatives, signaling broader interest in blockchain-based settlement and recordkeeping.

Unlike unregistered digital tokens or stablecoins, which often operate outside securities law, F/m’s proposal keeps tokenized ETF shares firmly within the existing regulatory structure.

If approved, the approach could allow a single ETF share class to support both conventional brokerage trading and blockchain-based settlement workflows.

Although the SEC has not yet decided on the application, the request shows an increasing trend by traditional asset managers to integrate blockchain technology into regulated markets instead of circumventing them. The result may affect the way other ETFs and financial products will venture into tokenization in future. 

Also Read: Chainlink Launches 24/5 Data Streams for U.S. Stocks and ETFs

Grayscale Investments, one of the largest digital asset managers in the crypto industry, has filed a Form S‑1 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its existing Grayscale Near Trust into a spot exchange‑traded fund (ETF). 

The filing was submitted on January 20, 2026, marking an important step in Grayscale’s strategy to broaden its ETF product lineup amid ongoing regulatory scrutiny and volatility in the broader crypto market.

Proposed ETF to list on NYSE arca under GSNR ticker

If approved by the SEC, the revamped fund, expected to be renamed the Grayscale Near Trust ETF, will seek to list its shares on the NYSE Arca under the ticker GSNR, moving from the current OTCQB trading venue. Additionally, Grayscale has also included language around a potential staking program for NEAR tokens held by the trust. 

The asset manager also plans to disclose fees, staking arrangements, and additional operational details in forthcoming SEC filings. It noted that, should certain conditions be met, the sponsor anticipates entering into written arrangements with third‑party staking providers through the custodian.

The trust’s key service providers include CSC Delaware Trust Company as trustee, The Bank of New York Mellon as transfer agent and administrator, and Coinbase Custody Trust Company LLC as custodian, with Coinbase Inc. also serving as prime broker. 

The proposed ETF is intended to track the spot price of NEAR Protocol using CoinDesk NEAR CCIXber Reference Rate.

Market reaction and price movement

Following the S‑1 filing, NEAR Protocol’s price rebounded more than 3% in the first few hours, reducing losses while the broader crypto market experienced downward pressure. 

At the time of writing, NEAR was trading around $1.54, having swung between a 24‑hour low of $1.50 and a high near $1.60. Its trading volume has gone up by about 17%, indicating increased interest among traders. 

In spite of this increase, NEAR is still lower than the 50-day and 200-day moving averages, which means that the technical sentiment is still bearish.

Data from CoinGlass also showed a rise in futures activity, with total open interest for NEAR futures climbing about 2% to $229 million in recent hours. Open interest increases were notably visible on major derivatives exchanges such as Binance, OKX, and Bybit.

Context and broader ETF trends

The NEAR ETF filing by Grayscale is part of a larger initiative by the company to increase its regulated ETFs. Recently, Grayscale also registered statutory trusts in Delaware for potential BNB and Hyperliquid (HYPE) ETF products, an early procedural move before federal‑level SEC approval.

The NEAR ETF filing indicates long-term institutional interest in regulated crypto investment vehicles. Industry analysts, including Bloomberg ETF expert James Seyffart, have noted that “Crypto ETP filings continue to come across the SEC’s desk,” signaling continued issuer interest despite regulatory hurdles and recent weak liquidity in existing crypto ETF products.

Also Read: ETF Liquidity Remains Weak as Crypto Markets Undergo Selling Pressure

Ripple President Monica Long has signaled a potential turning point in how large corporations interact with blockchain-based financial systems. She has forecasted that nearly half of all Fortune 500 companies may adopt crypto exposure by the end of 2026.

In a detailed post shared on X, Long described 2026 as a critical phase for the industry, marking what she called the “institutionalization of crypto.” Her comments come after a year of increased activity in stablecoins, tokenized assets, and crypto-linked financial infrastructure across global markets.

After one of crypto’s most exciting years (and Ripple’s), the industry is entering its production era. In 2026 we’ll see the institutionalization of crypto — trusted infrastructure and real utility will push banks, corporates, and providers from pilots to scale — across…

— Monica Long (@MonicaLongSF) January 20, 2026

Long says that the uptake of crypto by businesses will cease to be experimental. The next 12 months will see a surge in Digital Asset Treasury (DAT) strategies. This isn’t just about holding Bitcoin; it’s about a multi-pronged approach to balance sheet management, such as holdings of tokenized real-world assets, on-chain U.S. Treasury bills, stablecoins, and programmable financial instruments.

Long wrote, “Crypto is no longer speculative—it’s becoming the operating layer of modern finance,” and that the shift is indicative of increasing institutional confidence and not a short-term market mania.

Capital markets and stablecoins spur institutional interest

Stablecoins were identified by Long as one of the most important catalysts of this transition. She added that digital dollars are becoming more and more a settlement basis globally, as opposed to a payment system. 

She says that stablecoins are being used by firms to enhance real-time liquidity, capital efficiency, and cross-border settlement, particularly in business-to-business transactions.

Her remarks are in line with the recent developments by traditional payment companies. In the last year, companies like Visa and Stripe have increased stablecoin-based settlement pilots, which is indicative of a wider interest in blockchain-based payment rails.

Long also indicated the increasing institutional involvement via capital markets. Although crypto exchange-traded funds (ETFs) have increased access to investors, she observed that ETFs remain a minor fraction of the market. 

She estimated that 5%-10% of capital markets settlement would shift on-chain as institutions pursue more collateral mobility and shorter settlement cycles.

3/ Institutional access is also expanding through capital markets. Crypto ETFs are accelerating exposure, yet only represent a small share of the broader market, underscoring room for major growth. As adoption scales, collateral mobility will also become a top use case, with…

— Monica Long (@MonicaLongSF) January 20, 2026

Banking adoption, M&A, and custody

On acquisitions and mergers, Long quoted $8.6 billion of crypto-related deal volume in 2025, which is mostly institutional. She claimed that custody services are becoming a core area of focus by 2026.

Long projects that 50% of the world’s top 50 banks will formalize new crypto custody relationships this year. No longer content with single-vendor risk, banks are adopting “multi-custodian” models to manage institutional-grade operational risk.

2/ Crypto is no longer speculative – it’s becoming the operating layer of modern finance. By 2026, ~50% of Fortune 500 companies will have crypto exposure or formalized DAT strategies, actively holding tokenized assets, onchain T-bills, stablecoins, and programmable financial…

— Monica Long (@MonicaLongSF) January 20, 2026

“Crypto is no longer speculative—it’s becoming the operating layer of modern finance,” Long shared.

This trend is supported by recent deals. Cryptocurrency companies also entered conventional finance in 2025, with Kraken acquiring NinjaTrader and Ripple itself acquiring treasury and prime brokerage firms to augment its institutional offerings.

The importance of this to the crypto market

Provided it comes to pass, the estimates made by Long indicate a change in the perception of crypto, not as a risky investment category, but as a fundamental element of corporate financial infrastructure. 

More enterprise adoption may affect the liquidity of the market, regulatory transparency, and demand for compliant blockchain solutions.

Long also observed that the intersection of blockchain and artificial intelligence would automate the treasury functions and risk management further, but she stated that the privacy-saving technologies would still be necessary.

The time frame is still unclear, but her remarks represent a larger industry story: the next stage of crypto can be less about retail speculation and more about the extent to which it is integrated into the world of financial systems.

Also Read: BVNK Partners with Visa to Power Stablecoin Payments

A Polymarket trader nicknamed “beachboy4” captured attention within the crypto community, by generating $6.12 million in profits in just 24 hours. 

The trader, who joined the platform in November 2025, reduced a prior $6.8 million drawdown to a mere $395,000 unrealized loss through high-stakes sports bets. Highlighted by OnchainLens, the phenomenon demonstrates both the potential rewards and volatility inherent in blockchain-based prediction markets.

Meet the most profitable trader, "beachboy4," who made $6.12M in just one day on #Polymarket.

Covering almost all the losses in just one day, only $687,824 now needs to be recovered.https://t.co/sYnh09ASZB pic.twitter.com/qoWCU0PxzR

— Onchain Lens (@OnchainLens) January 18, 2026

In the match, West Ham United against Tottenham Hotspur in the Premier League, Beachboy4 bet $3.32 million and won $3.48 million after victory of the team. Their other bets include a $1.29 million on Sunderland AFC’s win over Crystal Palace that earned $1.86 million and a $1.08 million bet on Arsenal over Chelsea made $1 million to the overall winnings. 

Although the net was a loss of $48,580 on an NBA spread bet, it is still one of the largest single-day returns of Polymarket, with the portfolio of the user worth $7.3 million on 98 pending predictions, including bets on an upcoming FC Barcelona match.

Cryptocurrency’s high-risk environment is marked by record-breaking returns

Another Polymarket trader, ascetic0x on X, claimed to have made a profit of $104,000 in a few months betting on Bitcoin in the short term. The trader had a 8,300x return by multiplying the initial bankroll 16 times by 33 predictions, which is a very disciplined way of market timing and risk management.

I DID IT!!! Turned $12 into $100,000 (over 8,300x) by going all-in and doubling my bankroll 16 times in a row on short-term BTC moves – while sharing my bets and the reasoning behind them along the way.

This is only possible on @Polymarket !!!

It took a lot of work and real… pic.twitter.com/TJmNOWrmko

— ascetic (@ascetic0x) January 15, 2026

These stories highlight the potential payoffs that are high as well as the risks that are serious of decentralized prediction platforms. Polymarket is a Polygon-based prediction markets platform. It enables predictive betting on world events like sports results, elections and the price of cryptocurrencies.

In 2025, the platform became highly popular, passing the weekly trading volume of $1 billion. It has integrated with other exchanges, such as Coinbase, attracting users who consider it a decentralized alternative to conventional sportsbooks.

Previous incidents and ethical issues

In early January 2026, an anonymous user made a bet of $30,000 on the departure of Venezuelan President Nicolas Maduro and made over $436K. This outcome raised concerns over alleged insider trading as the market began to spike. 

As much as these tales are pointing to the monetary potential, there is a warning on the dangers by experts. Various leaders have noted that megabets are prone to disastrous loss, and the possibility of insider trading or market rigging is an ethical and regulatory issue.

The successes of beachboy4 and ascetic0x highlight the attractiveness and dangers of crypto prediction markets, and how timing, conviction, and risk management can provide an astronomical payoff, albeit at the cost of high exposure to financial loss.

Also Read: Elon Musk on Polymarket? User’s 80% Accuracy Hints He Might Be the One

Trove Markets, a crypto startup building a decentralized perpetual exchange focused on collectibles, is facing growing backlash after abruptly pivoting away from Hyperliquid to Solana, despite raising millions from backers under a Hyperliquid-based roadmap. 

The move has triggered refund demands, allegations of token dumping, and a broader debate around transparency in early-stage DeFi projects.

Trove’s sudden pivot raises questions

On Friday, Trove Markets made its first announcement of switching to Solana in a post on X, which surprised many investors. It was already a Hyperliquid-native decentralized perpetual (perps) exchange, constructed using the HIP-3 framework of Hyperliquid.

$TROVE will launch on Solana

ICO participants who contributed via EVM, can connect their Solana wallet to receive $TROVE, on our ICO site: https://t.co/1VtxZ3pbB9. Ends 18th January, 5pm UTC. pic.twitter.com/NBCrpirq1c

— TROVE (@TroveMarkets) January 16, 2026

That framework requires projects to stake a large amount of HYPE tokens as a slashable bond to launch a perps market.

According to one of Trove’s builders, known as “Unwise,” the pivot followed the withdrawal of 500,000 HYPE tokens by a liquidity partner, tokens that were critical for the planned Hyperliquid integration. 

“This changes our constraints,” the builder said, adding that Trove would now rebuild the perps exchange on Solana from scratch. The announcement came just days after Trove completed a TROVE token sale between January 8 and January 11, raising more than $11.5 million. 

The token generation event (TGE), originally expected sooner, has now been pushed to January 19 at 4:00 pm UTC. Trove said it needs more time due to the Solana transition and refund processing.

Due to the move to Solana and the refund processing, we need more time to execute this correctly.

New TGE time: Jan 19, 4:00 PM UTC.

We sincerely apologize for the delay.

We’ll share the contract address and final distribution details once we are live.

— TROVE (@TroveMarkets) January 18, 2026

Token sales, wallet activity, and community backlash

In addition to the pivot, Trove is also being questioned for its on-chain activity related to HYPE tokens. ZachXBT, a blockchain researcher, and the Hyperliquid News X account identified a number of transfers associated with Trove wallets based on data provided by Hyperliquid explorer Hypurrscan.

Reports claim that wallets associated with the project sold nearly 194,000 HYPE tokens, worth around $10 million, within a 24-hour period. 

They increased to $10 million in dumping in 24 hours.https://t.co/tvm9rAqiiq pic.twitter.com/kLZ5tN2Oky

— Hyperliquid News (@HyperliquidNews) January 18, 2026

These tokens were originally acquired as part of a $20 million raise in November to meet Hyperliquid’s mandatory HIP-3 staking requirement. Although the Founder of Trove supposedly insisted he did not control one of the wallets in question and demanded it to be closed, it is reported that sales went on minutes later.

This sequence intensified speculation around insider selling or compromised wallet access, further damaging investor confidence. Community reaction has been swift and vocal. Several X users have demanded full refunds, arguing that they invested specifically in a Hyperliquid-based product. 

It has been questioned by others whether it is possible to refund in case a large share of the HYPE stake has been sold off. 

Also Read: Hyperliquid Surges Past Tron and Solana to Lead Blockchain Fees

The White House has reportedly expressed strong displeasure after Coinbase recently withdrew its support for the proposed CLARITY Act, a major piece of legislation intended to regulate the U.S. cryptocurrency market. 

The move comes just ahead of a scheduled markup session in Congress, prompting concerns about potential delays in the bill’s progress.

According to government sources, the White House views Coinbase’s decision as a sudden and unilateral move, referring to it as a “rug pull” for both the administration and the crypto industry. 

🚨SCOOP: The White House is considering pulling its support for the crypto market structure bill entirely if @coinbase does not come back to the table with a yield agreement that satisfies the banks and gets everyone to a deal, a source close to the Trump administration tells me.…

— Eleanor Terrett (@EleanorTerrett) January 17, 2026

Administration may pull political support

According to journalist Eleanor Terrett, a government official who was conversant with the situation indicated that the administration is looking into removing its political support to the legislation if Coinbase “does not come back to the table with a yield agreement that satisfies the banks and gets everyone to a deal”. 

Coinbase CEO Brian Armstrong issued a statement late Wednesday, highlighting concerns with the draft of the bill. Armstrong criticized provisions that could effectively restrict tokenized equities, impose limitations on decentralized finance (DeFi) platforms, and reduce the authority of the Commodity Futures Trading Commission (CFTC). 

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.

There are too many issues, including:

– A defacto ban on tokenized equities
– DeFi prohibitions, giving the government unlimited access to your financial…

— Brian Armstrong (@brian_armstrong) January 14, 2026

He further noted that the exchange was not going to back the bill as it is, highlighting privacy and innovation risks in the digital asset space.

Reactions of industry and government

The move has elicited mixed feelings in the industry. Some analysts assume that Coinbase is more worried about its competitive advantage because the bill might end up giving preference to other exchanges and financial institutions. 

In the meantime, the White House has emphasized that the bill is aimed at controlling the larger digital economy, and not a specific exchange. 

Authorities also observed that the CLARITY Act is connected to the policy agenda of President Donald Trump, which underlines the political importance of the bill in addition to the opposition of Coinbase. There are a number of senators who have promised to resume the legislation. 

Senator Mark Warner, a Democratic senator representing Virginia, said that the bill has a way forward, and Senator Cynthia Lummis admitted that it would take time to review and revise the bill. 

The leaders of the industry, such as Galaxy Digital CEO Mike Novogratz, have been optimistic that the bill might be passed in the coming few weeks, with positive talks with Congress members.

While the crypto bill might be delayed to keep working on it, I am very confident that a bill will get done soon. I have spoken to over 10 senators on both sides of the aisle in the past 24 hrs and I believe they all are working in good faith to get something done. Always gets…

— Mike Novogratz (@novogratz) January 14, 2026

Background and broader context

The CLARITY Act is designed to create more explicit regulations on digital assets, such as stablecoins, tokenized securities, and DeFi platforms. Although the bill may open capital-raising opportunities to crypto businesses and bring about regulatory certainty, opponents such as Coinbase caution that the new regulations may be oppressive to innovation. 

The controversy is preceded by comparable controversies in 2025, when large U.S. exchanges and blockchain supporters collided on the issue of privacy, DeFi regulation, and the role of federal authorities in the regulation of crypto.

At this point, the timeline of the bill is not clear. Although the markup session is on hiatus, legislators are considering amendments to support industry interests. 

According to market observers, any delay in federal regulation may affect the adoption of digital assets, trading, and competitiveness of the U.S. in the international crypto market.

Also Read: US Senate Delays CLARITY Act Markup, Casting Doubt on Crypto Rules in 2026

A crypto user has lost more than $500,000 worth of USDT after falling victim to an address poisoning attack on the Ethereum blockchain, highlighting once again how simple mistakes can lead to massive losses in onchain transactions.

The incident was detected at 14:01 UTC, with blockchain security firm CyversAlerts publicly flagging it shortly after at 14:34 UTC. It is among the first reported address poisoning cases of 2026, underlining that this type of scam remains a persistent threat despite growing awareness in the crypto space.

🚨ALERT🚨Our systems detected a $509K $USDT
address poisoning attack around 24 min ago.

The victim initially sent 5K $USDT, unaware that the receiver address belonged to a scammer. The victim intended to send the funds to 0xe842….D3E6F, but mistakenly sent to 0xe842….f3e6F.… pic.twitter.com/bWI1vnLWHS

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) January 16, 2026

How the $500,000 address poisoning attack unfolded

According to CyversAlerts, the victim initially sent a test transaction of 5,000 USDT to what they believed was the correct wallet address. The address appeared familiar because it closely resembled the intended recipient, ending in D3E6F.  

The address was however under control of a scammer and it was slightly different in the middle character details which are normally hidden or abbreviated in wallet interfaces.

Only two minutes later, the victim made a bulk transfer of 509,000 USDT to the same poisoned address after the test transfer had succeeded. Overall, the victim had lost about $514,000.

Transaction history manipulation

The attack timeline indicates that the scammer had prepared in detail long before the attack. The attacker initially sent several small payments using similar looking addresses to the wallet of the victim, intentionally contaminating the history of transactions. 

The victim had copied the address of the previous transactions believing it to be legit, thus choosing the wallet of the scammer as opposed to the real wallet. The money was effectively lost once it was committed on-chain.

Address poisoning attacks take advantage of such habits as copying wallet addresses on the transaction history and not checking them character by character.

A growing pattern of high-value crypto losses

This event is preceded by a significantly bigger address poisoning incident in December 2025, when an experienced trader lost almost half a million dollars in USDT in one transaction. 

How to lose $50M in under an hour. This is one of the largest on-chain scam losses we’ve seen recently.

A single victim lost $50M in $USDT to an address poisoning scam. The funds had arrived less than 1h earlier.

The user first sent a small test tx to the correct address. Mins… pic.twitter.com/Umsr8oTcXC

— Web3 Antivirus (@web3_antivirus) December 19, 2025

In such a scenario, the attacker would have used an address that resembled the first three and last four characters of the legitimate wallet which would seem genuine at first sight. 

The victim had already made a valid test transfer but then copied a tainted address in the history of transfers when making the full transfer. The attacker soon transferred the money to ETH and laundered it through several wallets, and eventually laundered some of the assets through Tornado Cash, making the trail go cold.

The risk of familiarity for crypto users

The importance of addressing poisoning scams is that they do not depend on hacking smart contracts or using protocols. Rather, they are user behavioral directed. 

The risk exposure of both retail users and professional traders is rising as crypto usage continues to rise and the number of transactions of the stablecoins such as USDT is high daily.

The latest cases, such as a crypto giveaway scam that took advantage of the official communication channels of Betterment, demonstrate how scammers are changing. 

They are becoming more and more dependent on the credibility of trusted platforms, familiar interfaces, and technical tricks to earn credibility. To the wider crypto community, such incidents drive a bitter truth: blockchain transactions are permanent. 

Even seasoned users may commit expensive mistakes and once money is transferred onchain, it is hard to retrieve. With the trading activity still at its peak, these scams are still a major threat to the market participants, and this is why more protection to the user and vigilance is of utmost importance.

Also Read: Prince Group’s Chen Zhi Arrested Over $15B Crypto Scam Network

Cathie Wood, CEO of ARK Invest, recently commented that Bitcoin continues to offer higher returns relative to risk compared with traditional assets, even as markets debate whether digital assets have matured or remain volatile. 

Her comments come from ARK Invest’s latest press release, which frames Bitcoin’s role within a broader macroeconomic and technological shift underway in the US and global economy.

According to ARK, the US economy has quietly gone through what it describes as a “rolling recession” over the past three years. Despite steady headline GDP growth, higher interest rates have pressured housing, manufacturing, and consumer sentiment. 

The next three years could be Reaganomics on steroids, another golden age for the US equity market. Back then, early in my career, I remember how deregulation, tax cuts, sound monetary policy, and peace through strength sent the dollar soaring, which put a lid on the gold price! https://t.co/kVRmZlQsNZ

— Cathie Wood (@CathieDWood) January 16, 2026

Wood describes the economy as a “coiled spring,” weakened by restrictive monetary policy but positioned for a rebound as inflation cools and productivity improves.

Bitcoin vs gold in a changing macro environment

One of the central comparisons in the press release is Bitcoin versus gold. During 2025, gold prices rose by around 65%, while Bitcoin declined by roughly 6%. However, ARK notes that looking only at one year can be misleading. Since late 2022, Bitcoin’s price has risen about 360%, far outpacing gold’s longer-term gains.

Wood identifies supply dynamics as one of the differences. When prices are high, it is possible to produce more gold, whereas Bitcoin is coded to produce a fixed amount of supply.

The growth in the annual supply of Bitcoin is estimated to decrease to approximately 0.41% after the next halving period, which supports its scarcity in the long term. ARK argues this feature makes Bitcoin structurally different from commodities like gold.

The company also mentions that the value of gold compared to the amount of money in the world has been at an all-time high, similar to such times as the early 1930s and 1980s.

Conversely, Bitcoin is a relatively new macro asset, and its adoption in institutions and asset managers is still in its developmental phase.

Diversification and risk-adjusted returns

The analysis conducted by ARK shows that Bitcoin is not correlated with the key asset classes. Based on weekly data since 2020, the company discovered that the correlation of Bitcoin with gold, equities, and bonds is lower than most conventional asset pairings.

Wood argues this makes Bitcoin attractive for diversification, especially for investors seeking higher returns per unit of risk.

“Bitcoin should be a good source of diversification for asset allocators looking for higher returns per unit of risk during the years ahead,” the press release states.

This view aligns with Wood’s recent comments that 2025 marked a “before and after” moment for Bitcoin. Despite episodes of sharp volatility, including flash crashes that liquidated leveraged positions, she believes market behavior is changing as institutional participation grows and speculative excess gradually declines.

At the time of writing, Bitcoin was trading at $95,560, down 0.91% in the past 24 hours, with a $49.4 billion daily trading volume and a market capitalization of about $1.91 trillion. 

Why it matters now

The discussion comes at a time when markets are reassessing risk amid high equity valuations and heavy investment in artificial intelligence infrastructure. ARK anticipates that AI, blockchain, and other technologies will help economic growth despite a possible compression of equity multiples.

In the case of Bitcoin, it does not imply a short-term price certainty but a change in portfolios. Wood does not rule out volatility but opines that relative to traditional hedges, such as gold, the combination of fixed supply, low correlation, and long-term adoption trends makes Bitcoin a unique risk-return profile.

With regulators, institutions, and investors still determining the role of crypto in the world markets, the analysis presented by ARK is a contribution to the current debate on whether Bitcoin is becoming a strategic element of a modern portfolio or remains a speculative one.

Also Read: U.S. Spot Crypto ETFs Pull $1.05B as Bitcoin Demand Surges

Atomic Wallet has come under scrutiny after a viral social media post alleged the wallet caused them a loss of nearly $479,000 worth of Monero (XMR). The wallet provider, however, has denied that it can verify the claim, stating no direct support request was filed and the available evidence does not prove a loss occurred. 

The controversy began when an X user using the name Nicolas van Saberhagen claimed his Monero balance dropped to zero while opening the Atomic Wallet app. According to the user, 633 XMR were allegedly transferred to the same address through multiple transactions.

At the time of the claim, the tokens were valued at around $479,000. The user also pointed out that the app displayed a banner stating that funds were safe during the incident.

Atomic Wallet questions credibility of viral claim

Atomic Wallet responded publicly, saying it reviewed the allegation but could not confirm any loss. The company noted that more than 20 hours had passed since the claim surfaced and that it had not received any support request from the user through official support channels.

We reviewed the “633 XMR loss” claim. At this point we can't confirm the issue.

Here’s why:

1) A $479k (633 XMR) loss was claimed, but no support ticket has been submitted after 20+ hours.

2) Monero is private, so screenshots alone cannot verify any loss.

3) The same account… https://t.co/0mXvTILMwQ pic.twitter.com/OhJv4k35PG

— Atomic – Crypto Wallet (@AtomicWallet) January 15, 2026

The wallet provider explained that screenshots alone cannot confirm a Monero loss, as transactions on the Monero blockchain are private by design. Without access to transaction data or wallet logs, Atomic Wallet said it cannot independently verify whether funds were moved or compromised. “Monero is private, so screenshots alone cannot verify any loss,” the team said. 

Company flags unusual activity linked to claiming account

The company also highlighted what it described as unusual behavior linked to the account making the claim. Atomic Wallet stated that the same account later announced a 30 XMR giveaway shortly after reporting the alleged loss. 

It added that the account appeared to be newly created and showed irregular follower growth. The firm said it has received past reports of impersonation tied to similar patterns. 

“The same account announced a 30 XMR giveaway right after the claim, which is a really strange signal,” the team stated, “The account is brand new with unusual follower growth and impersonation reports.”

Atomic Wallet reiterated that it operates as a noncustodial wallet, meaning it does not control or store user funds. Users manage their assets directly through private keys held on their own devices. The company said it remains open to investigating the issue further if the user contacts its support team directly.

User points to closed-source wallet risks

The complainant later framed the incident as a broader warning about closed-source wallet software. He claimed the Monero network itself functioned as designed and that the cryptography behind the protocol did not fail. Instead, he argued that trusting closed-source applications with private keys carries inherent risks.

This conflict is against the background of increased market activity of Monero. XMR price has increased by over 50% in the last one week, as a result of a revived interest in privacy-oriented cryptocurrencies.

However, the token has faced a pullback, falling around 3.03% in the last 24 hours. At the time of writing, Monero trades near $688, according to CoinMarketCap.

Why this matters for crypto users

The issue of wallets is frequently reoccurring during the time of high market rallies, when the value of assets grows rapidly and the number of users is higher.

In the past, Atomic Wallet has faced scrutiny following a major security breach in 2023, though the company has since emphasized improvements in security practices and user education.

The present state of affairs also underscores the existing difficulties in authenticating claims related to privacy coins such as Monero, in which transaction information is kept secret by default.

It further emphasizes the need to communicate directly to the wallet providers in case of disputes between the users and the wallet providers. There is no independent evidence yet to support the alleged loss and the issue is not yet resolved as Atomic Wallet is waiting to be contacted by the user.

Also Read: Monero (XMR) Jumps to New All-time High Amid Privacy Coin Surge

US Senators Cynthia Lummis and Ron Wyden have introduced a bipartisan bill aimed at reducing legal uncertainty for blockchain developers who build software but do not handle customer funds. 

The proposed legislation, called the Blockchain Regulatory Certainty Act of 2026 (BRCA), seeks to clarify that developers and service providers should not be treated as money transmitters under US law if they never take custody of user assets.

The bill was introduced on Monday as a standalone measure, even as similar language is being debated as part of a broader crypto market structure package in Congress. 

Writing code is not the same as controlling money and developers who build blockchain infrastructure without touching user funds shouldn't be treated like banks. @RonWyden and I are ensuring that won’t happen. pic.twitter.com/9zIgh07e0b

— Senator Cynthia Lummis (@SenLummis) January 12, 2026

Lawmakers say the goal is to draw a clear line between financial intermediaries, such as banks or payment companies, and software developers who only write code or maintain decentralized networks.

In the existing interpretations of the federal and state regulations, developers are worried that they may be criminally or civilly liable depending on the use of their software by third parties.

That fear was heightened by the recent enforcement efforts on crypto-related projects, and it is now unclear whether writing open-source code would subject developers to money transmission regulations.

Why lawmakers say clarity is needed

Senator Lummis said the bill aims to ensure developers can build blockchain-based tools without fear of prosecution for activities that do not involve money laundering or custody risks. 

She argued that treating developers as financial institutions “makes no sense” when they never control or access user funds and has contributed to innovation moving outside the US.

Lummis added, “This bill gives our developers the clarity they need to build the future of digital finance without fear of prosecution for activities that pose no money laundering risk. It’s time to stop treating software developers like banks simply because they write code.”

These same concerns were echoed by Senator Wyden who said, “Forcing developers who write code to follow the same rules as exchanges or brokers is technologically illiterate and a recipe for violating Americans’ privacy and free speech rights.”

He said developers who simply create or maintain software should not be forced to comply with rules designed for businesses that actively move or manage money on behalf of others.

The bill states that if a person or entity never handles another individual’s funds, they should not qualify as a money transmitter. Supporters say this clarification would reduce confusion created by older laws that predate blockchain technology.

Background and recent developments

The debate gained urgency following cases involving privacy-focused crypto tools. Last year, Tornado Cash co-founders Roman Storm and Alexey Pertsev were found guilty of operating an unlicensed money-transmitting business linked to the crypto mixing protocol. 

That case alarmed developers across the industry, many of whom worry that neutral software tools could expose them to similar charges. At the same time, Congress is working on a wider crypto market structure bill that covers stablecoins, decentralized finance (DeFi), and regulatory oversight. 

While that bill includes protections similar to BRCA, lawmakers have warned that provisions can change during committee markups. The Senate Banking Committee is expected to review the broader legislation this week, while the Senate Agriculture Committee has delayed its hearing until late January.

Industry response and potential impact 

The BRCA has been welcomed by several crypto advocacy groups who believe that innovation in the US should be defined clearly in the law. However, the bill does not change anti-money laundering rules for custodial platforms or financial firms that directly manage user funds.

The legislation may offer long-awaited legal assurance to developers of non-custodial and decentralized systems in case it passes. Its future, as of now, lies in the ability of the Congress to develop it as a separate bill or integrate it into the bigger crypto regulation framework.

This may determine the balance of innovation, responsibility, and financial regulation of the US, as the use of blockchain technology expands.

Also Read: US Senate Delays CLARITY Act Markup, Casting Doubt on Crypto Rules in 2026

The US Senate has delayed a key step in advancing comprehensive cryptocurrency regulation, raising new questions about whether long-awaited digital asset rules can pass Congress in 2026. 

Senate Agriculture Committee Chairman John Boozman confirmed that his panel will postpone its planned markup of the Digital Asset Market Structure CLARITY Act until the final week of January.

The decision comes as lawmakers struggle to secure enough bipartisan support to move the bill forward. The markup had originally been scheduled to take place alongside a parallel session in the Senate Banking Committee this week on Thursday.

🚨NEW: Bye bye dueling markups.

Per Chairman @JohnBoozman, the @SenateAg Committee is punting its markup on crypto market structure to the last week in January instead of holding it, as originally planned, on Thursday at the same time as the Senate Banking Committee. Boozman… pic.twitter.com/o0vi0Y4yDL

— Eleanor Terrett (@EleanorTerrett) January 12, 2026

Why the markup was postponed

Boozman said the delay is intended to preserve bipartisan backing and avoid forcing a vote that could fail in committee. A markup is a critical legislative stage where lawmakers debate and amend a bill line by line before voting on whether to advance it to the full Senate. 

If either the Banking or Agriculture Committee rejects the CLARITY Act, the legislation cannot proceed. The postponement suggests Senate leaders do not yet have the votes needed. 

Some of the unresolved provisions that lawmakers are still debating are stablecoin reward programs, regulation of decentralized finance (DeFi), and the division of regulatory responsibility between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

What the CLARITY Act proposes

The CLARITY Act is the most expansive US crypto market structure bill proposed to date. It seeks to formally categorize digital assets, with some of the tokens falling under the SEC securities law and the rest as commodities regulated by the CFTC.

The bill would also establish federal standards for crypto exchanges, brokers, and custodians, including rules on asset segregation, disclosures, and market surveillance. 

Supporters argue this approach would replace the current enforcement-driven regulatory framework with clearer statutory guidance, giving crypto firms and institutions more predictable compliance rules.

The House of Representatives passed its version of the bill in mid-2025. The Senate, however, has struggled to agree on language acceptable to lawmakers, regulators, banks, and the crypto industry.

Political and industry tensions

Opposition comes from multiple directions. Some Democrats have raised concerns that the bill could weaken investor protections. Some Republicans are opposed to possible restrictions on the yields of stablecoins and DeFi.

Industry groups have warned that late-stage amendments restricting business models could cost the bill their support.

Coinbase, the largest US crypto exchange, recently warned lawmakers it may withdraw backing for the legislation if provisions targeting stablecoin rewards remain. According to Bloomberg, the exchange views those rewards as a core part of its platform.

Warren raises retirement risk concerns

The delay also coincides with increased scrutiny from Senate Banking Committee Ranking Member Elizabeth Warren. She recently wrote to SEC Chairman Paul Atkins seeking clarity on how the agency plans to protect investors after President Donald Trump signed an executive order allowing pension funds and retirement accounts to gain exposure to crypto assets.

“For most Americans, their 401(k) represents a lifeline to retirement security rather than a playground for financial risk,” Warren wrote, warning that crypto volatility and limited transparency could put retirement savings at risk. She asked the SEC to respond by January 27, 2026.

What happens next

By pushing the markup to late January, Senate leaders hope to renegotiate disputed provisions and rebuild a workable coalition. Nonetheless, the future of the CLARITY Act is not clear due to a busy legislative schedule and the lack of consensus in political lines.

The ability of lawmakers to close these gaps will define whether the US will finally have a coherent crypto regulatory framework in 2026 or the reform will be stuck again in 2027.

Also Read: CLARITY Act to Enter Senate Markup in January, Says David Sacks

Coinbase, the largest crypto exchange in the US, is intensifying pressure on lawmakers in Washington as a key part of the proposed CLARITY Act could limit how stablecoin rewards are offered, a move that has sparked a broader debate between the crypto industry and the traditional banking sector.

According to a report by Bloomberg, Coinbase has issued a serious warning that it may withdraw support for the CLARITY Act unless parts of the act restricting stablecoin rewards is removed. 

What is happening and why it matters

The Digital Asset Market Clarity Act of 2025, known as the CLARITY Act in short, is a major market‑structure bill being crafted by the US Senate Banking Committee, with a markup session scheduled this Thursday. 

Bloomberg reported that Coinbase may reconsider backing the bill if it goes beyond disclosure requirements and places limits on rewards offered by exchanges and platforms.

This matters because stablecoin rewards, where users earn yield for holding tokens like USDC, have become an important source of revenue for crypto exchanges. 

For Coinbase, stablecoins generated nearly $247 million in revenue in Q4 along with $155 million from blockchain rewards, illustrating how significant these offerings are to its business.

Who is involved and what they want

Coinbase wants to preserve the ability of exchanges to offer rewards to users who hold stablecoins on their platforms. The company has applied for a national trust banking charter, which would formally allow it to provide yield under a regulated framework. 

At the same time, other legislators and lobbying groups in the banking sector believe that the reward should be restricted to regulated financial institutions in order to safeguard the traditional banking system.

Banking lobbyists caution that the stablecoin products may drain deposits out of banks because of their high yields, which may undermine community lending and financial stability. The US Treasury has previously estimated that widespread stablecoin adoption could divert trillions of dollars away from the banking sector.

On the other side, crypto supporters, including the group Stand With Crypto, have mobilized public backing. Stand With Crypto claims more than 135,000 emails have been sent to senators urging them to protect stablecoin rewards in the legislation.

The crypto community continues to show up. Our advocates have sent OVER 135,000 emails to senators to protect our crypto rewards.

Keep it going and show the banks that they can't overpower us. Tell Congress: Pass market structure, protect our rewards. https://t.co/f99Gjudtvc

— Stand With Crypto🛡️ (@standwithcrypto) January 9, 2026

Background: GENIUS Act and past policy moves

The debate builds on the GENIUS Act, signed into law last July, which prohibited stablecoin issuers from offering interest or yield purely for holding the tokens. However, that law did not explicitly restrict third‑party platforms like Coinbase from offering rewards, creating the current regulatory ambiguity.

Recent past news shows this policy tension is not new. Earlier in 2025, the crypto industry and banking groups clashed over similar stablecoin provisions in federal regulation proposals. 

The core question has been how far Congress should go in applying traditional financial rules to digital asset markets.

What comes next

The Senate Banking Committee’s markup this Thursday will be a critical moment. If the CLARITY Act includes restrictions on rewards, it could delay the bill’s overall progress. 

Some analysts believe the legislation may not pass Congress until as late as 2027 or 2029, especially with the 2026 US midterm elections looming and complicating bipartisan consensus.

Chairman @SenatorTimScott is moving forward on digital asset market structure legislation – delivering clear rules that protect Main Street, keep innovation here at home, and safeguard U.S. national security.

Read his statement on next week’s markup ⬇️ pic.twitter.com/mWBTqwgVsS

— U.S. Senate Banking Committee GOP (@BankingGOP) January 10, 2026

Senate Banking Committee Chair Tim Scott has said that he believes the bill could be passed sooner, however, the stablecoin rewards battle demonstrates that legislators have a difficult time trying to strike a balance between innovation and financial regulation.

Also Read: Quantum Computing Poses Deeper Risks to Bitcoin: Coinbase Analyst

Elon Musk’s social media platform X is preparing to roll out a new feature called Smart Cashtags, signaling a deeper push into real-time financial information for stocks and cryptocurrencies.

The feature, expected to launch publicly in February 2026, aims to make market data more accessible directly within social conversations, according to details shared by X’s Head of Product, Nikita Bier.

X is the best source for financial news — and hundreds of billions of dollars are deployed based on things people read here.

We are building Smart Cashtags that allow you to specify the exact asset (or smart contract) when posting a ticker. From Timeline, users will be able to… pic.twitter.com/nFtuA2ISqJ

— Nikita Bier (@nikitabier) January 11, 2026

What are Smart Cashtags and who is building them

Smart Cashtags are an upgraded version of the existing $TICKER system used on X. Instead of simple mentions, the new format will allow users to tap on a cashtag to instantly view real-time price movements, recent discussions, and related news about a stock or crypto asset. 

Bier confirmed that crypto cashtags may also link directly to specific smart contracts, offering near real-time on-chain data for newly minted tokens.

The feature is being developed by X’s product team under Elon Musk’s broader vision of transforming the platform into an “everything app,” a goal he has repeatedly highlighted since acquiring X, then known as Twitter, in October 2022.

How the feature works and when it launches

According to preview screenshots and product commentary, tapping a Smart Cashtag will surface live price data along with a feed of recent posts, news, and conversations tied to that asset. 

Assets shown in mockups range from traditional equities like Berkshire Hathaway ($BRK.B) to crypto tokens such as $BONK on Solana. Bier said X plans to gather user feedback before the wider release, with an internal rollout expected in the coming weeks and a public launch targeted for February. 

On-chain data is likely to update the pricing information almost immediately, which could be more comprehensive than what is provided by traditional market data providers.

What backend does it tap into to find the asset? Asking in terms of smaller cap crypto tickers which people cashtag a lot but may not be on mainstream exchanges yet, but can be found on decentralized platforms like @Dexscreener

— Stupifff (@Stupifff) January 11, 2026

Why this matters for markets and users

X already plays a major role in shaping market sentiment, particularly in crypto. Bier noted that “hundreds of billions of dollars” have been deployed based on information users encounter on the platform. 

Smart Cashtags formalize this influence by embedding price context directly into posts, reducing the gap between discussion and data.

This change may transform X into more than a market-conversation place. Images of concept buttons with Buy and Sell text are a source of speculation that the trading capability would be added one day.

While X has not confirmed in-app trading, analysts believe any execution layer would likely rely on partnerships with regulated brokers or crypto platforms rather than X handling trades itself.

Past attempts and regulatory context

This is not X’s first move into market data. In December 2022, the platform introduced a basic Cashtags feature showing charts for Bitcoin and Ether, and select stocks using TradingView data, along with links to Robinhood. 

That feature was later removed, making the upcoming Smart Cashtags X’s second attempt at embedding financial tools into the platform. At the same time, X has already obtained money transmitter licenses in more than 25 states in the U.S., which indicates that it is preparing to expand its payment services, which may include crypto.

However, the company has not disclosed a timeline for enabling payments or trading. The development comes as X faces regulatory pressure, including scrutiny in the EU over algorithmic transparency and a recent fine under the Digital Services Act. 

French authorities have launched a politically-motivated criminal investigation into X over the alleged manipulation of its algorithm and alleged “fraudulent data extraction.” X categorically denies these allegations.

This investigation, instigated by French politician Eric…

— Global Government Affairs (@GlobalAffairs) July 21, 2025

Musk recently stated that X plans to open-source its recommendation algorithm, potentially as a response to these concerns.

What this means going forward

Smart Cashtags position X at the intersection of social media and financial infrastructure. Although the feature is currently oriented towards information and discovery, its development may redefine the way users follow markets in real time.

At this point, X points out that Smart Cashtags is still a preview feature, and that more clarity will be available closer to launch.

Also Read: FIU-IND Tightens Crypto Rules, Mandates Cybersecurity Audits

Former members of the Zcash development team are preparing to relaunch their work under a new company, marking a significant organizational shift for the long-running privacy-focused cryptocurrency project. 

The group, which previously worked at Electric Coin Company (ECC), plans to release a new Zcash wallet called CashZ, built on the existing Zashi wallet codebase.

Ex-Zcash developers move forward with CashZ

On January 8, former ECC chief executive officer Josh Swihart announced the formation of CashZ, a new for-profit startup created by the same engineers who developed Zashi, Zcash’s flagship wallet, and contributed to recent protocol upgrades. 

We are all in on Zcash.
We need to scale Zcash to billions of users.
Startups can scale, but nonprofits can't.
That's why we created a new Zcash startup.https://t.co/ZurjfTxnPi pic.twitter.com/ksnwLewpPp

— Josh Swihart 🛡 (@jswihart) January 8, 2026

The announcement is based on the previous day’s happenings, when Zcash developers publicly announced their resignation from ECC and their intentions to proceed with the development of privacy-oriented tools on their own. The team resigned collectively from ECC after internal disagreements with Bootstrap, the nonprofit that oversees ECC’s operations.

Swihart described the exit as a “constructive discharge,” saying governance changes introduced by Bootstrap’s board made it difficult for the developers to continue their work effectively. 

Despite leaving ECC, the team stressed that it has not abandoned Zcash. The protocol remains open source, and the developers say they will continue working on Zcash tools rather than launching a new blockchain or token.

CashZ will function as a direct continuation of the Zashi wallet. According to the company, existing users will be able to migrate to the new wallet with minimal disruption once it launches. A public waitlist is already live, signaling that development is moving ahead quickly.

Why the split matters for Zcash

The departure has reignited broader debates around how crypto projects should be structured. Swihart claimed that nonprofit models may decelerate the decision-making process and its implementation, particularly when the regulatory oversight is intensified.

Over the past few weeks, it's become clear that the majority of Bootstrap board members (a 501(c)(3) nonprofit created to support Zcash by governing the Electric Coin Company), specifically Zaki Manian, Christina Garman, Alan Fairless, and Michelle Lai (ZCAM), have moved into…

— Josh Swihart 🛡 (@jswihart) January 7, 2026

He said startup structures often provide clearer incentives and more flexibility, which can be critical in fast-moving crypto markets.

However, the team presented the move as a structural change and not a philosophical one. The mission of Zcash, i.e. the private digital payment, is the same, and ECC still exists as an independent entity.

The resignations did not affect the Zcash network itself and it has been running as usual. Other crypto projects have experienced similar tensions with foundations and boards disagreeing on control, funding, and long-term direction with core developers.

Over recent months, Zcash has been technologically advanced, yet the CashZ launch shows that governance issues can continue to affect perception and momentum.

Market reaction and recent context

The news initially caused confusion among investors. ZEC prices dropped briefly after rumors circulated on social media suggesting the project had been abandoned. Some of the fears were alleviated later as developers explained that Zcash development would proceed.

There’s been noise around Zcash governance lately, so let’s be clear about what actually matters.

The Zcash protocol didn’t break.
Privacy didn’t weaken.
ZEC didn’t suddenly forget how to be money.

What happened is simpler: the builders chose principles over politics.

The… https://t.co/JAvsv2iraA

— Michelangelo.zec ⓩ🛡️ (@BTCTurtle) January 7, 2026

At the time of writing, Zcash was trading at $433.12, down 6.73% over the past 24 hours, with a trading volume of $1.41 billion and a market capitalization of approximately $7.13 billion, according to CoinMarketCap.

There have been mixed reactions to these updates from the larger community, but they are mostly centered on governance, sustainability, and future of privacy in crypto.

This scenario highlights a common problem in the industry as protocols can be decentralized, but the organizations managing them still have extremely human challenges related to leadership, structure, and control.

Also Read: Cypherpunk Buys $29M in Zcash, Total Holdings Reach 290,062 ZEC

The Sei Network has issued an urgent alert to holders of USDC.n, a legacy version of the USDC stablecoin, to swap or migrate their tokens before a major network upgrade planned for March 2026, warning that lingering balances could lose accessibility or value after the transition. 

USDC.n, also known as USDC via Noble, was originally issued by Circle on the Noble blockchain and bridged to Sei as the primary dollar‑pegged stablecoin used on the network. 

Check your Sei wallet: if you hold USDC.n (USDC via Noble), you should move to native USDC before the end of March 2026.

The SIP-3 upgrade (expected on mainnet in late March) will effectively make Sei an EVM-only chain, and Cosmos-native assets like USDC.n won’t be supported. pic.twitter.com/gNtiIbzN4o

— Sei Labs (@Sei_Labs) January 7, 2026

Since then, Circle has launched native USDC directly on Sei, which has made many users swap their bridged tokens to the canonical one. By early January 2026, the value of USDC.n on Sei had dropped to approximately $1.4 million, compared to several million holders who have moved off.

What’s happening and why it matters

The urgency stems from a forthcoming upgrade known as SIP‑3, which will convert Sei into an EVM‑only blockchain, a network that only supports Ethereum‑compatible tokens and smart contracts. 

As part of this change, Cosmos‑native assets like USDC.n and other legacy tokens will no longer be supported. Anyone still holding USDC.n after the upgrade could find their tokens inaccessible or significantly devalued on the Sei Network.

“After this upgrade, USDC.n may become inaccessible or lose its value on the Sei Network,” the project said in its official announcement. 

The SIP‑3 upgrade is expected to go live on mainnet at the end of March 2026, though the timeline may shift slightly depending on final testing and community governance outcomes. Holders are advised to follow official channels for updates. 

How holders can convert

Sei’s guidance outlines different paths for holders: For smaller balances, users can swap USDC.n for native USDC using decentralized exchanges such as DragonSwap or Symphony. However, liquidity and slippage may vary, and holders should exercise caution and research before transacting.

For larger amounts, a batching and migration tool exists that moves USDC.n through Noble, then Polygon, and finally back to Sei using Circle’s Cross‑Chain Transfer Protocol (CCTP). Manual bridging methods are also possible but carry extra technical risk and potential for loss. 

Sei’s advisory also notes that holders who have supplied USDC.n into lending or defi protocols like Yei or Takara Lend must first withdraw those positions before migrating, or risk loss of access when the SIP‑3 upgrade takes effect. 

Context and recent developments

This alarm is in line with larger trends in the Sei ecosystem. In July 2025, Circle introduced native USDC and CCTP V2 on Sei to enhance liquidity and cross-chain transfers, which made native USDC the main stablecoin on the network.

The shift to an EVM‑only architecture mirrors industry trends toward Ethereum compatibility, with many chains standardizing around EVM tools and developer ecosystems. 

The transition is expected to streamline development, enhance interoperability, and simplify token standards on Sei, but it also renders legacy Cosmos‑native assets obsolete. 

To users of USDC.n, this is an alert that it may be necessary to keep up with protocol changes and timely migrations to protect crypto assets.

Also Read: BC Card Joins Base to Pilot USDC Payments in South Korea

The Trump family-backed crypto platform World Liberty Financial has taken a major regulatory step as it seeks to expand institutional use of its USD1 stablecoin. 

On Wednesday, the company confirmed that its subsidiary, WLTC Holdings LLC, filed an application with the US Office of the Comptroller of the Currency (OCC) to establish a national trust bank.

If approved, the proposed entity, World Liberty Trust Company, would allow the firm to issue, custody, and convert USD1 directly under federal supervision. 

World Liberty Financial Announces that WLTC Holdings LLC has Submitted an Application for a National Trust Bank Charter to Issue and Custody USD1 Stablecoins 🦅☝️https://t.co/ulapagYLYq

— WLFI (@worldlibertyfi) January 7, 2026

This would decrease its dependency on third-party service providers like BitGo and internalize stablecoin operations. World Liberty Co-Founder Zach Witkoff said institutions are already using USD1 for cross-border payments, settlement, and treasury management. 

“A national trust charter will allow us to bring issuance, custody, and conversion together as a full-stack offering under one highly regulated entity,” he said.

What the Charter would allow

The trust bank would operate as a purpose-built institution focused on stablecoin services. According to World Liberty, the bank plans to offer fee-free minting and redemption of USD1 at launch, along with seamless conversion between US dollars and the stablecoin. 

It would also provide custody services for USD1 and other approved stablecoins. USD1 is currently backed by US dollar deposits and short-duration US Treasury instruments held at regulated institutions. 

The stablecoin is compatible with a variety of blockchains, such as Ethereum, Solana, BNB Smart Chain, TRON, and Aptos, which allows settlement in a short time and programmable payments.

The company said USD1 has grown to more than $3.3 billion in circulation within its first year, making it one of the fastest-growing dollar-backed stablecoins in the market.

Regulatory context and growing scrutiny

World Liberty’s application comes at a time when US regulators are showing greater openness toward crypto-native banking models. 

In December, the OCC granted conditional charter approvals to firms including Circle, Ripple, Fidelity Digital Assets, BitGo, and Paxos. OCC Comptroller Jonathan Gould said new entrants help promote competition and innovation in the banking system.

However, World Liberty’s ties to President Donald Trump may invite closer scrutiny. Trump is listed as a co-founder alongside his sons Eric, Barron, and Donald Trump Jr. Some lawmakers have raised concerns over potential conflicts of interest, especially following Trump’s recent pardon of Binance Co-Founder Changpeng Zhao.

Witkoff has indicated that the trust company structure is meant to prevent conflicts, and Trump and his family will not be in any executive position, or run the day-to-day business.

Why this matters for the crypto market

The proposed charter reflects a broader push by stablecoin issuers to gain regulatory clarity as institutional adoption grows. The USD1 would be more appealing to exchanges, asset managers, and corporate users who are looking to use a compliant digital dollar in a federally regulated trust bank.

The move also follows World Liberty’s recent plan to allocate at least 5% of its treasury to boost USD1 adoption. In recent weeks, the firm disclosed buying $10 million worth of its governance token using USD1 and expanding integrations across centralized and decentralized platforms.

As regulators weigh stablecoin legislation and oversight frameworks, the outcome of World Liberty’s application could influence how crypto firms bridge traditional finance and blockchain-based payments in the US.

Also Read: World Liberty Financial Rises Nearly 22% Over the Past Week

Meme coins PEPE and BONK recorded price gains over the past week as trading activity in the sector picked up. PEPE surged nearly 66.9%, climbing from $0.0000040 to $0.0000069, while BONK rose 54.6% over the same period. 

The trend is based on the wider recovery of meme coins since the end of December 2025, as the market capitalization of the sector regained its previous lows.

PEPE is currently trading at $0.0000067 and the 24-hour trading volume of PEPE is $84,15,61,884. The token has fallen by 4.12% over the last 24 hours and its live market capitalization is $2,84,16,99,559.

BONK is currently trading at $0.000012 and its 24-hour trading volume is $33,39,89,632, a decline of 4.85%. The token’s live market cap is $1,02,06,84,190, according to CoinMarketCap.

Latest trading and whale action

The rally of PEPE was accompanied by an increase in trading volume that hit a high of $919 million showing the interest of retail and leveraged traders. 

BONK also experienced spikes in its daily volumes as high as $760 million on January 4 and then stabilized around $315 million on January 7. The token is still 78% lower than its all-time high of $0.000057 of November 2024. 

PEPE remains 75% below its December 2024 high of $0.00002803, but current momentum has reduced the difference. These gains have been affected by the activity of whales. 

James Wynn, a reputed meme coin trader, has a PEPE position of 10x leverage of HyperLiquid with a value of $3.11 million. The current position has unrealized gains of over 545,000 and a 212% margin. 

Added a couple of nickels to my $BTC and $PEPE long. Feeling risk on.

Apparently fortune favors the brave @cryptocom?

– $WYNN pic.twitter.com/ge2U7f8m3g

— James Wynn (@JamesWynnReal) January 5, 2026

Wynn also holds a long of $16.26 million BTC, and his total exposure is $19.4 million, and both floating profits are over $842,000. Other major traders have also made a profit on leveraged Ethereum and PEPE.

Technical forecast and market feeling

Analyst NFTdavie pointed out that PEPE has just hit upper resistance and the next target is the $0.000010 level. Reaching this level would be tantamount to subtracting one zero in the price of the token. PEPE perpetual contracts are currently being funded at 0.0100% indicating optimism among leveraged traders.

Rapid Fire Charts: $PEPE$PEPE continues to look strong and is doing exactly what you want to see, a clean bounce off the upper resistance line (white). If bullish momentum follows through, the next move is a breakout toward the target zone (green), where one zero gets eaten and… https://t.co/LmMOvEhQtI pic.twitter.com/Y1r4Lwhdla

— davie satoshi (@NFTdavie) January 6, 2026

The derivatives are pointing at optimistic pessimism in the crypto market. In liquidations reported by Coinglass, there were $443 million liquidations in 24 hours.

The crypto Fear and Greed Index rose to 49, which indicates increasing, yet still wary confidence in the market. In general, the total crypto market capitalization peaked to $3.18 trillion, and the meme coin industry added about $52.77 billion, according to CoinMarketCap.

Background and sector trends

The meme coin industry has recovered since the end of December, gaining about $10 billion in the overall market capital. Other prominent tokens like Dogecoin and Shiba Inu also recorded weekly returns of 20.9% and 29%, respectively. 

The industry has recovered after the lows of dominance had not been experienced since the November 2024 meme coin boom.

Although PEPE and BONK are still nowhere near their past highs, recent trading action shows that meme coins are back in the spotlight, both by retailers and leveraged traders.

Also Read: Onyxcoin Price Jump Nearly 175% in First Week of January 2026

Onyxcoin (XCN) has begun the year with a sharp price action, attracting the attention of the market after recording one of the best weekly returns among the mid-cap crypto tokens. 

The spike follows a lengthy phase of volatility, and the early-January rally of XCN is significant to traders and analysts interested in trend reversals in digital assets.

In the first week of January, XCN surged almost 175% at its peak indicating renewed speculative interest. By Jan. 6, Onyxcoin was trading at about $0.00910, and it has gained approximately 110% in the last seven days. The token briefly hit a weekly high of about $0.01224 and thereafter reversed indicating that the rapid rise had been followed by profit-taking.

XCN is currently trading at an approximate of $0.009194, which is 5.31% higher than in the previous 24 hours and its trading volume is approximately $205.7 million, with a market capitalization of approximately $337.36 million.

Why Onyxcoin is back in focus

The recent rally is after a complicated price history. Having peaked at around $0.1726 in 2022, XCN went into a long-term decline. The token gradually declined until 2023 and 2024, reaching an all-time low of around $0.00072.

This drop was indicative of the general market downturn and the lack of on-chain activity in the crypto bear market. The momentum started to rebound in early 2025.

Last January, XCN surged up sharply, and in two weeks, the company rose by approximately 0.0026 to 0.0364. This was followed by another spike in April 2025, when the token increased over 67% in a day and the trading volume increased over 1300%. 

This action was accompanied by the release of the Onyxcoin Goliath mainnet that was intended to enhance network performance and increase the number of use cases.

The profits were however short lived. XCN was trading in a fluctuating downward trend most of 2025 but experienced a revival in December following its debut on the Robinhood trading platform. The said listing enhanced accessibility to retail traders and preconditioned the present January rally.

Analysts now attribute the recent breakout of XCN to a combination of technical elements and roadmap anticipations. Market observers cite ongoing progress in the Goliath project and the intended incorporation of the Onyx AI Agent as the defining factors in the sentiment. 

$XCN (Onyxcoin) is absolutely exploding right now! 🔥

From $0.005 just 7 days ago to $0.011 today that's a wild +157.51% surge!

24h change: +91.29%, volume pumping to $197M, market cap hitting $398M. 👀👀

The governance token for the Onyx Protocol is waking up huge in 2026.… pic.twitter.com/NsjhsEPCA0

— theweb3guy (@Web3InsiderGuy) January 6, 2026

These programs indicate that the ecosystem is active, but analysts are skeptical due to the history of the token making sharp turns. Technically, traders are keenly observing whether XCN can sustain itself above the level of $0.0087 which was a major resistance before the rally. 

Any inability to keep that level may result in further consolidation, particularly with the introduction of U.S. market hours with increased liquidity and intraday volatility.

The implication of this to the market

The performance of XCN at the beginning of 2026 shows the rapid change of sentiment in the crypto market, especially in the case of tokens that have had significant fluctuations previously. 

Although the recent gains are an indication of renewed interest, analysts emphasize that sustainability will be pegged on follow-through volume, wider market conditions as well as further advancements on the roadmap of the project. 

In the meantime, the Onyxcoin breakout is another piece of data to the market that is feeling its way at the beginning of the new year.

Also Read: Midnight Network (NIGHT) Price 83% Crash Post-Launch

Decentralized perpetuals exchange Lighter saw its native token LIT jump more than 18% on Monday, driven by speculation that the platform may have started a token buyback program. 

According to real-time market data, LIT was trading at around $3.13, with a 24-hour trading volume of $356,863,48 at the time of writing, with a live market cap of $78,33,47,548, marking a significant gain in a single day.

The surge comes as the crypto community closely tracks Lighter’s treasury account. On Monday evening, on-chain data showed the treasury held 180,750 LIT tokens, worth roughly $548,987. 

The fees generated and protocol buybacks can be tracked with the treasury account in the block explorer, see link in threadhttps://t.co/b6PubEokro

— Lighter (@Lighter_xyz) January 5, 2026

Although the platform has not confirmed a buyback officially, it mentioned its treasury account on X where fees and buybacks could be observed publicly. Lighter has already mentioned that revenues would be distributed between ecosystem expansion and token buybacks based on the market conditions.

Strategic LIT purchases of Justin Sun

The price surge comes after Tron Founder Justin Sun’s acquisition of LIT in significant amounts in the last week. Sun purchased about $33 million LIT tokens with the money of Lighter Liquidity Protocol (LLP), which is more than 5% of the supply in circulation. 

In early December, he withdrew $5.2 million USDC to purchase 1.66 million LIT as well, which added up to $38 million LLP withdrawals. The crypto community was highly interested in these purchases. 

Analysts indicate that such massive token buys as such may affect the perception of the market and may create a price momentum in support of LIT. 

These huge transactions were made possible by the huge liquidity that Sun had already injected into the LLP through a previous deposit of $200 million, which did not cause significant slippage.

Of the ~$200M @justinsuntron deposited into LLP, he has withdrawn roughly $5.2M USDC via a single wallet and used it to buy ~1.66M LIT, currently worth about $4.65M, with an additional ~$1.2M USDC still sitting in his spot balance.https://t.co/FVas1KAhPY

— MLM (@mlmabc) December 30, 2025

History and marketplace

Lighter released its public mainnet in October and became one of the top perpetuals exchanges which are decentralized. It recorded a monthly trading volume of more than $200 billion in December, which was higher than other competitors such as Aster $177.5 billion and Hyperliquid $169.3 billion. 

In its last round of funding, the platform attracted Founders Fund and Ribbit Capital as the lead investors in a round that raised $68 million at a valuation of $1.5 billion, according to Fortune.

Last week LIT token was launched, and the supply of the token, and there is a promise to distribute half of it to the development of the ecosystem. The team stressed that any value created by the products and services of Lighter would be beneficial to LIT holders.

New listing: $LIT is live! pic.twitter.com/grbcGUMkI2

— Lighter (@Lighter_xyz) December 30, 2025

Although the buybacks were not officially verified, the presence of the treasury movements and the high-profile purchases of the token by the investors such as Sun have contributed to the speculation and interest in the market.

Why this matters

The token activity of Lighter emphasizes the increased tendency toward exchanges with the help of treasury management and buybacks to underpin the value of the tokens. Onchain data, liquidity flows, and investor activity can give insights to investors and market observers on the possible price dynamics. 

Although the buyback is not yet verified, the apparent growth of treasury and the strategic acquisitions indicate that efforts are being undertaken to help the token in the market.

Also Read: Jump Trading Nets $24M on Lighter Airdrop with Only One Month Activity

Coinbase shares surged about 8% on Monday after Goldman Sachs upgraded the stock from “neutral” to “buy,” reflecting growing confidence in the crypto exchange’s long-term business model and the wider digital asset market. 

The rally came after the investment bank raised its 12-month price target for Coinbase from $294 to $303, citing diversification beyond traditional crypto trading.

According to Google Finance data, as of writing, Coinbase closed the session at $254.92, marking one of its strongest daily performances in recent weeks. At current levels, Goldman’s new target implies an upside of roughly 18%, although the stock saw limited movement in after-hours trading.

GS upgrade $COIN from neutral to BUY.
"Selectively more optimistic on crypto."
"Shift to structural growth through growing derivatives business, best-in-class crypto infrastructure businesses, and new, secularly growing products, particularly tokenization/prediction markets" pic.twitter.com/9vuBZR1ICX

— matthew sigel, recovering CFA (@matthew_sigel) January 5, 2026

The upgrade was issued by Goldman Sachs analyst James Yaro, who said the bank holds “selective optimism” toward US brokerage firms and crypto infrastructure companies that show structural growth. 

He highlighted Coinbase as a key example, pointing to its expanding business lines and focus on long-term infrastructure plays.

Why Goldman Sachs turned more positive on Coinbase

According to the report, Yaro is of the opinion that crypto companies such as Coinbase are no longer trading platforms. He identified blockchain infrastructure, tokenization, and prediction markets as some of the possible drivers of growth.

These segments, he said, could help reduce Coinbase’s reliance on trading volumes, which tend to fluctuate with market cycles. Coinbase has recently taken steps in that direction.

The firm has also incorporated prediction markets in its platform by partnering with Kalshi, where users can trade on real-life events and outcomes. Prediction markets emerged as one of the fastest-growing crypto use cases in 2025, drawing attention from both retail users and regulators.

Goldman also reported remarks of Coinbase CEO Brian Armstrong, who has described how he plans to transform the company into an everything exchange by 2026.

Here are our top priorities for 2026 at Coinbase:

1) Grow the everything exchange globally (crypto, equities, prediction markets, commodities – across spot, futures, and options)

2) Scale stablecoins and payments

3) Bring the world onchain through @CoinbaseDev, @base chain,…

— Brian Armstrong (@brian_armstrong) January 1, 2026

The plan also involves the expansion into stablecoins, tokenized assets, and further growth of Base, the Ethereum layer-2 (L2) network of Coinbase.

Broader crypto outlook and regulatory risks

Beyond Coinbase, Goldman Sachs expressed a cautiously optimistic outlook for the broader crypto market in 2026. Yaro said the bank expects increased adoption from both retail and institutional investors, driven partly by regulatory progress in the US.

However, he also flagged risks. The report warned that failure to pass proposed US crypto market structure legislation could slow industry growth. Regulatory clarity remains a key factor for institutional participation, which has so far been more limited compared to retail involvement.

Goldman’s confidence in the call is supported by Yaro’s track record. Data from TipRanks shows the analyst has a 62% success rate, with average annual returns close to 16%.

$COIN

James Yaro @ Goldman Sachs upgraded Coinbase to a buy today with a PT of $303.

That’s a 28% upside from current levels. pic.twitter.com/ZjKRZeorSY

— FinanceIntel (@finance_intell) January 5, 2026

Recent developments add context

The upgrade is based on a series of announcements made by Coinbase in the recent months. Armstrong posted a roadmap on New Year Day showing that he intended to diversify beyond cryptocurrencies into equities, commodities, futures and options, depending on the regulations of the regions.

The company also employed Liz Martin, a former Goldman Sachs Partner as the Vice President of Product to assist it in developing its markets and derivatives products.

These actions combined indicate that Coinbase is an organization that is setting itself up to lead anticipated shifts in crypto adoption and regulation.

Although the risks are still there, the upgrade of Goldman indicates that Wall Street is becoming more attentive to the way crypto firms are transforming their business models in the next stage of the market development.

Also Read: Coinbase Users Lose $2 Million to Fake Support Scam

Crypto investor sentiment is showing early signs of recovery as the CoinMarketCap Crypto Fear and Greed Index flipped to “neutral” for the first time since October. 

The index currently sits at 42, indicating that while investors are no longer driven by fear, they have yet to turn optimistic about the market’s direction. The shift comes after a turbulent end to 2025. Investor sentiment hit its lowest point of the year in November, when the index dropped to 10, signaling “extreme fear.”  

Even though the index moving back to “neutral” looks positive at first glance, it doesn’t always mean a new rally is starting. In the past, when sentiment recovered after a major market top, it usually showed that selling pressure had eased, not that confidence had fully returned. The same thing happened after the 2018 and 2022 peaks, when the market calmed down first and then moved sideways for a long time before any real recovery.

October sell-off ends 2025 crypto bull run

That fall came after a steep drop in the market in October that terminated the crypto bull run of the year. Bitcoin had hit an all-time high of more than $125,000 only days prior to the sell-off, and then dropped by almost 35% to approximately $80,000. 

Altcoins were hit even harder, as most tokens lost most of their value within a single day. The overall market value of all altcoins, without Bitcoin and Ethereum, declined by approximately 33%.

The speed of the decline caught many investors off guard, especially those who entered near the peak. The sudden reversal marked a clear shift from speculative optimism to capital preservation, ending months of aggressive risk-taking.

Although sentiment has improved going into 2026, analysts report that there is uncertainty. The persistence of geopolitical tensions and the low retail involvement still restrain the positive momentum in the market.

Despite the improving sentiment, retail participation remains weak. Search interest and social media activity around Bitcoin and major altcoins are still far below the levels seen in October, suggesting that the current price stability is being supported mainly by experienced and institutional traders rather than a broad return of retail investors.

Crypto market tests geopolitical shock

The focus of the global community has moved to the United States (U.S.) because President Donald Trump declared that the U.S. troops conducted a massive military operation in Venezuela and arrested President Nicolas Maduro. 

Trump said the operation was the result of weeks of escalating pressure, which included alleged strikes, oil seizures, and the amassing of U.S troops in the Caribbean.

Following the reports of explosions in Caracas and other parts, the government of Venezuela has refuted the allegation, declared a state of emergency, and accused the U.S. of military aggression. Trump will give additional information during a press conference.

Nevertheless, the crypto market has been quite stable up to now, despite the uncertainty. Bitcoin was trading at around $92,389 with a small 0.86% increase in the last 24 hours. 

Ethereum was even more powerful, increasing approximately 0.06% to reach the level of $3,153, and XRP increased more than 2.82% to surpass $2.12. Stablecoins like USDT were stable and showed a hesitant yet well-organized reaction to the market.

Market resilience raises questions for analysts

This price action is unique since risk-on assets tend to experience drastic falls whenever there are unexpected geopolitical events. It is still uncertain to analysts whether the situation will have a long-term impact on crypto prices. 

Some people think that the market has reached a mature stage to absorb geopolitical shocks, whilst others state that wider risk sentiment will be evident as soon as U.S. financial markets open.

Market sensitivity may be enhanced by thin liquidity that is characteristic of early January. The scenario reminds one of the past geopolitical tensions, including the Russia-Ukraine crisis and the Middle East tensions, in which crypto has been resilient at first and then responds to macroeconomic effects. 

Market awaits clarity on the Venezuela situation

In the meantime, traders are keeping a close eye on whether the Venezuela scenario turns out to be a diplomatic battle or a sanctions, energy shocks, or broader regional instability that would trigger a repricing in financial markets.

As 2026 gets underway, the crypto market appears more settled than it was at the end of 2025, but confidence is still missing. Whether this calmer mood turns into a real recovery or fades back into fear will depend on how global markets react to the Venezuela situation, moves in energy prices, and overall risk appetite once U.S. markets are back in full swing.

Also Read: Bitcoin Nears $90K as CME Gap Sparks Future Price Dip

The network activity of Ethereum has increased significantly after the Fusaka upgrade in early December, with new data indicating that the number of holders has increased significantly, despite the asset approaching one of the key technical levels.

On-chain data show that the number of new Ethereum holders has increased by an average of 110% in the last three weeks, which is a sign of new activity in the network.

This increase is accompanied by the ETH price action narrowing in a downward wedge, which puts the asset at the risk of a possible breakout.

Etherium increases following Fusaka upgrade

The Fusaka upgrade was launched on December 3, 2025 and it introduced modifications to enhance scalability and cost reduction on Ethereum Layer-2 (L2) networks. Reduction of transaction costs has been an Ethereum user priority, especially with the increased competition with other smart contract platforms.

On-chain data shows that Ethereum has been receiving approximately 292,000 new addresses every day since the upgrade. These new addresses are wallets that have not yet interacted with ETH, which is a typical indicator of adoption trends.

The surge may also be due to seasonal factors. The market usually picks up towards the end of the year, as portfolio rebalancing, positioning at the beginning of the new year, and fresh interest after significant protocol changes drive the market.

The same spikes in address creation were seen following the Merge of Ethereum in 2022 and the Dencun upgrade cycle earlier in 2024.

Although not every new address will become long-term users, continued growth at this rate usually indicates that more people are using the network, which can provide liquidity and price stability in turbulent times.

Also Read: Ethereum’s Fusaka Upgrade Quietly Resets the Power Map

Holder behavior displays wary positioning

The behavior of holders indicates a reserved market, although the network activity is increasing. HODL Waves indicator shows that growth is registered amongst mid-term holders, which are wallets containing ETH between three and six months.

The majority of these investors came into the market in July to October 2025. There are early entrants that are already in profit, and many of those who purchased later are still underwater. 

This has resulted in what analysts term as forced holding where investors hold back until the price rebounds. These cohorts will reduce selling pressure, which will temporarily sustain price levels.

Nevertheless, this dynamic also carries the risk. Selling activity may pick up as ETH approaches break-even levels on the mid-term holders, and there is no real upside unless new demand soaks up the supply.

Price of ETH approaches technical decision

At the time of writing, Ethereum (ETH) was trading at approximately $3,173, near the top of a falling wedge that has been developing since the beginning of November. These trends usually lead to acute price fluctuations, but the direction is determined by the overall conditions in the market.

Provided that ETH breaks above the resistance at around $3,287, it would open a short-term trend to the range of $3,400-3,450. Technical estimates indicate that there is a higher upside but this would need more buying volume to support.

On the negative side, the inability to break out may push ETH down to less than $3,000. Any shift towards the support of $2,900 would undermine the optimistic perspective and strengthen range-bound trading.

Why this matters

The increasing number of holders and the growing efficiency of the Ethereum network come at a time when investors are looking to 2026, a year most believe will see regulatory clarity and wider institutional involvement. 

Although the price trend is not clear, the trend of increased adoption and technical compression puts Ethereum at a pivotal point in the network and the market.

To date, the next step of Ethereum is probably determined by the ability of the adoption momentum to be converted into long-term demand.

Also Read: Ethereum Treasury Companies Bounce Back as ETH Surges above $3K

The traders of prediction markets on Polymarket are indicating that they are increasingly wary of the price trend of Bitcoin (BTC), with the probability that the asset will not hit extreme highs before 2027 being low. 

Although long term analysts are still positive about the future of Bitcoin, market based probabilities indicate that traders are now more inclined towards more conservative results.

Bitcoin price predictions on Polymarket

Polymarket data that tracks the question “What price will Bitcoin hit before 2027?” show traders putting only a 21% probability that Bitcoin will reach a price of $150,000, a price that many bullish projections about 2026 discuss. 

The confidence level reduces even more at larger targets, where only 15% is likely at $160,000 and single-digit likelihoods at higher prices. The most probable result on the site is Bitcoin going to $100,000 with the odds of about 80%, the safest bet traders are making at the moment. 

Even at the point of the all-time high of Bitcoin, which is below $120,000, there is only a 45% probability, which means that the expectations are low in the near-to-medium term.

At the time of writing, Bitcoin was trading at $88,708.51, up 1.44% in the last 24 hours. Its 24-hour volume is $20.6 billion with a market cap of $1.77 trillion, according to CoinMarketCap.

The reason traders are becoming conservative

This skepticism is based on the poor performance of Bitcoin at the end of 2025, which ended in the negative despite high expectations at the beginning of the cycle. 

Another potential cause of trader reluctance is that the four-year halving cycle followed by Bitcoin apparently failed, which was once used to predict significant bull and bear cycles by chartists.

As the traditional cycle is no longer relevant, traders are possibly reevaluating the behavior of Bitcoin in a shifting macro and regulatory landscape. In the absence of a clear historical roadmap, the market participants seem to be less price aggressive upside in the short-term.

This warning notwithstanding, there are wider macro expectations that are mixed. The U.S President Donald Trump is likely to name a new Federal Reserve chair in the next few weeks. 

The markets expect the possibility of interest rate reductions, which may be favorable to risk assets, such as cryptocurrencies. The same expectations have already driven gold and silver to record highs in late 2025, despite crypto prices being mostly flat.

Analysts make contrasting, optimistic market bets

Although Polymarket indicates the sentiment of traders, the institutional analysts are still indicating possibilities of higher gains in 2026. Prior to this, some companies, including Standard Chartered, Strategy, and Bernstein, have predicted that Bitcoin will hit $150,000 in 2024, and Fundstrat analyst Tom Lee has even suggested higher levels of $200,000 to 250,000 in the same year should everything go well.

Meanwhile, the future US legislation, such as the GENIUS Act and the CLARITY Act, may offer much-needed regulatory clarity, which may speed up institutional adoption.

Recent on-chain information also provides additional background. As per analysis provided by DeFiOasis, Polymarket profits are extremely concentrated, with less than 0.04% of wallets having over 70% of realized profits, and approximately 70% of users suffer losses. 

在超过 170 万个 Polymarket 全体交易地址中，获得已实现盈利的地址占比接近 30%；反过来说，~70% 的交易地址已实现亏损

一个更为扎心的现实是，不到 0.04% 的地址获得了超过 70% 的总已实现盈利，这些顶级地址累计已实现盈利高达 37 亿美元

绝大多数能够实现盈利的交易地址的盈利区间是 0 – 1,000… pic.twitter.com/jAj3SXsxVO

— defioasis.eth (@defioasis) December 29, 2025

This asymmetry underscores the fact that prediction markets tend to represent the opinion of a small, highly informed segment of the population instead of popular opinion.

All in all, Polymarket data indicates that while some traders anticipate an increase in Bitcoin, they are however not convinced that a significant breakout will occur prior to 2027. 

By the year 2026, the disparity between market-based probabilities and analyst forecasts can be one of the most monitored indicators in the crypto space.

Also Read: Bitcoin Q4 Ends in Red with 23% Decline Despite Q2-Q3 Surge

Trump Media and Technology Group, the operator of US President Donald Trump’s Truth Social platform, has announced plans to launch a blockchain-based token for its shareholders, marking its latest step into the digital asset space. 

The company said the new digital asset, known as the DJT token, will be distributed in partnership with Crypto.com and issued on the Cronos blockchain.

1:1 Token Distribution for Shareholders

According to the announcement, each eligible shareholder is expected to receive one token for every whole share of DJT owned, using a 1:1 distribution model. Trump Media said the rollout is expected to begin in the near future, with additional details to be shared in the coming months.

The company said the token may offer periodic rewards and benefits tied to its ecosystem, including Truth Social, the Truth+ streaming service, and its prediction market platform, Truth Predict. 

However, Trump Media emphasized that the token will not represent equity ownership, voting rights, or a claim on company profits. Trump Media CEO and Chairman Devin Nunes said the initiative aims to blend blockchain technology with traditional markets. 

“We look forward to utilizing Crypto.com’s blockchain technology and improving regulatory clarity to implement this first-of-its kind token distribution, reward Trump Media shareholders, and promote fair and transparent markets,” Nunes said.

Tokenized rewards, not tokenized ownership

The company made clear that the DJT token should not be confused with tokenized equity. In its disclaimer, Trump Media said the digital tokens are not expected to be transferable, exchangeable for cash, or tied to the “managerial efforts of others,” a phrase often used in US securities law to define investment contracts.

Only “ultimate beneficial owners” of DJT shares as of specific record dates will qualify for the distribution, excluding borrowers or derivative holders. Trump Media also reserved the right to modify or cancel the program at any time.

The announcement comes amid growing interest and scrutiny, around tokenized financial products. Earlier this year, brokerage platform Robinhood introduced tokenized stock trading for European Union customers, including tokens linked to private companies such as SpaceX and OpenAI. 

OpenAI quickly distanced itself from the offering, stating the tokens did not represent equity ownership or shareholder rights. Legal experts have warned that many tokenized products simply track price exposure without granting the protections or privileges of traditional stock ownership.

A steady build, not a one-off

The token plan also fits into Trump Media’s broader digital asset strategy. In recent months, the company has steadily increased its Bitcoin holdings rather than making isolated crypto bets. 

In July, Trump Media disclosed that it held close to $2 billion in Bitcoin and Bitcoin-related assets, funded largely through stock sales and bond issuances.

More recently, on-chain data showed the firm added another 451 Bitcoin, worth about $40 million, lifting its total holdings above 11,500 BTC, valued at over $1 billion at current prices.

Trump Media just bought 451 $BTC($40.3M) and currently holds 11,542 $BTC($1.04B).https://t.co/N7Z4p47UU7 pic.twitter.com/LjAfkVsTma

— Lookonchain (@lookonchain) December 22, 2025

Executives have previously said Bitcoin now accounts for roughly two-thirds of the company’s liquid assets. While the DJT token does not change shareholder rights, it highlights how publicly listed companies are experimenting with blockchain tools alongside traditional finance. 

Whether such initiatives deliver lasting value or face regulatory hurdles remains an open question as tokenized products continue to evolve.

Also Read: Trump-Backed Crypto Firm Alt5 Sigma Faces Audit Questions

Amir Zaidi, the key policymaker behind the launch of regulated Bitcoin futures in the United States, has returned to the Commodity Futures Trading Commission (CFTC) as chief of staff after a six-year hiatus. 

The CFTC announced the appointment on Wednesday, with Chairman Michael Selig highlighting Zaidi’s extensive experience in both government and financial services.

“I’m grateful for his willingness to return as chief of staff and for his continued dedication and service to both the CFTC and our stakeholders,” Selig said. 

I’m grateful for Amir Zaidi’s willingness to return to the @CFTC as chief of staff. Amir was instrumental in the historic launch of CFTC-regulated bitcoin futures contracts during @POTUS President Trump’s first term. With Congress poised to send digital asset market structure… https://t.co/Oft6NLc4Uv

— Mike Selig (@MichaelSelig) December 31, 2025

“Amir was instrumental in the historic launch of CFTC-regulated bitcoin futures contracts during President Trump’s first term. With Congress poised to send digital asset market structure legislation to the President’s desk, he will bring tremendous experience and expertise to the CFTC as it develops fit-for-purpose regulations for our rapidly evolving commodity markets”

Who led the CFTC before Zaidi’s return

Before Zaidi’s appointment, the CFTC was led by Chairman Caroline Pham, who stepped down in late December 2025. The tenure of Pham was aimed at updating the rules of the derivatives market and aligning with other regulatory bodies in the regulation of digital assets.

Selig replaced Pham and immediately made Zaidi his chief of staff, indicating a shift in focus to experience in the crypto and derivative markets.

Past experience and impact on crypto markets

Zaidi previously served at the CFTC between 2010 and 2019, holding several senior roles. In his final two years, he led the Division of Market Oversight, overseeing policies that enabled the introduction of the first federally regulated Bitcoin futures contracts in 2017. 

The introduction of these contracts into the CBOE was a major move towards mainstream cryptocurrency adoption when there was a high level of skepticism and uncertainty over regulation.

Before rejoining the CFTC, Zaidi served as global head of compliance at TP ICAP, a large broker-dealer. He had also served in New York and Washington in different financial, legal, and regulatory positions, creating a career that has been both in the public service and in the private industry.

Zaidi holds a J.D., cum laude, from the University of Maryland School of Law and a B.S. in Business Administration, summa cum laude, from Boston University.

Leadership amid regulatory shifts

The appointment of Zaidi is in line with the recent trends of crypto regulation in the US. The CFTC under Chairman Selig has indicated that it is determined to adopt an innovation-friendly regulation to ensure that it balances market growth with investor protection.

Meanwhile, the Securities and Exchange Commission (SEC) under Chairman Paul Atkins, has also taken a more permissive approach to crypto, granting several exchange-traded funds and resolving legal tussles with crypto companies.

Zaidi has said that he will bring stability to the CFTC and help the chairman pursue his pro-innovation agenda at a time when the derivatives and crypto markets are changing at a fast pace.

His role will involve policy planning, internal coordination, and regulatory decision-making support, especially as new legislation potentially increases the agency’s reach over digital assets.

With US legislators getting closer to the formalization of crypto regulations, the reappearance of Zaidi highlights the increasing significance of having an experienced leadership in the future of digital asset markets.

A joint regulation of the CFTC and SEC would potentially affect the perception of the US as a cryptocurrency and financial innovations center in the world.

Also Read: Crypto Spot ETF Developments in 2025 and Awaited Launches in 2026

Bitmine Immersion Technologies has expanded its Ethereum staking to $1.37 billion, with an additional $352 million worth of Ether staking on December 31. The move highlights the company’s ongoing commitment to Ethereum, even as the broader crypto market faces a slow period at the close of 2025. 

On-chain data tracked by OnChain Lens showed Bitmine staking 118,944 ETH, valued at around $352.16 million at the time. Following the transaction, the firm’s total staked Ether climbed to 461,504 ETH, worth roughly $1.37 billion at prevailing market prices. 

Bitmine (@BitMNR) has further staked 118,944 $ETH, valued at $352.16M.

In total, they have staked 461,504 $ETH, worth $1.37B.

Also, a newly created wallet received 32,938 $ETH, worth $97.8M, from #FalconX. It likely belongs to #Bitmine.https://t.co/1vbYSuHbap… https://t.co/GdG0PwZhI0 pic.twitter.com/bXLIzm78Gl

— Onchain Lens (@OnchainLens) December 30, 2025

The staking activity suggests Bitmine is positioning its holdings for a longer-term horizon rather than seeking short-term profits.

Onchain Labs also flagged a newly created wallet that received 32,938 ETH from trading firm FalconX. On-chain activity shows that the address is probably associated with Bitmine, which contributes to the fact that the company is still expanding its exposure instead of merely rearranging the current resources. 

Continued accumulation from Bitmine

This activity caps a busy month for Bitmine. Over the past week alone, Bitmine accumulated more than 44,000 ETH, while earlier in December it executed several large purchases, including a single-day buy of 67,886 ETH worth about $201 million on December 24.

Additional transactions of roughly $88 million and $97.6 million further expanded its treasury. According to data from Strategic ETH Reserve, Bitmine’s total Ether holdings now stand at around 4.07 million ETH, valued at approximately $12 billion. 

At the time of writing, Ethereum (ETH) was trading at $2,972.82, with a 24-hour trading volume of about $17.94 billion. Ethereum’s current market value is around $358.8 billion, according to CoinMarketCap data.

Strategic shift and market context

Bitmine Immersion Technologies Inc. (NYSE: BMNR), which is led by Fundstrat Co-Founder Tom Lee, has experienced significant strategic changes in 2025. The company was previously recognized as a prominent Bitcoin mining hardware provider, but has since re-oriented its business around massive asset holdings of digital assets, with Ethereum being the core of its treasury policy.

By current estimates from Strategic ETH Reserve data, Bitmine controls the largest known corporate ETH treasury and ranks second globally among crypto treasuries, behind only Strategy’s Bitcoin holdings.  The firm has stated an ambition to eventually own close to 5% of Ethereum’s circulating supply. 

With average ETH entry prices of about $3,960, Bitmine is believed to be carrying billions of dollars of unrealized losses in the present market decline. This notwithstanding, accumulation has proceeded during price weakness.

Lee has also explained the recent market weakness by the fact that year-end tax-loss sales in the US are at their highest point between December 26 and December 30, as well as reduced institutional participation during the Christmas period. 

3/
Chairman Thomas “Tom” Lee states:

"Market activity tends to slow as we enter the final holiday weeks of a calendar year. Bitmine added 44,463 ETH in the past week, as we continue to be the largest 'fresh money' buyer of ETH in the World."

"Year-end tax-loss related selling…

— Bitmine (NYSE-BMNR) $ETH (@BitMNR) December 29, 2025

What comes next

Looking ahead, Bitmine intends to roll out its Made in America Validator Network (MAVAN) in the first quarter of 2026, which will run Ethereum validators based in the US, according to the official announcement on PR Newswire.

The company’s next shareholder meeting is scheduled for January 15, 2026, in Las Vegas, during which the management is likely to provide more information on its Ethereum treasury plan.

Since Ethereum has been trading below its previous highs, the activities of Bitmine demonstrate the opposite of a company strategy, consistent accumulation and staking in the face of market consolidation, and not a withdrawal in the case of uncertainty.

Also Read: Bitmine Surpasses 4 Million ETH Holdings After $128M Buying Spree

Pakistan’s push to move quickly on crypto regulation and adoption could place it among the world’s leading crypto hubs by the end of this decade, according to Binance’s Co-Founder Changpeng “CZ” Zhao. 

His remarks arrive as the nation speeds up its endeavors at institutionalizing its digital asset ecosystem as the world moves towards increased interest in blockchain-based finance.

CZ shared his views during a recent interview with Pakistan Crypto Council CEO Bilal bin Saqib, where he pointed to Pakistan’s young, tech-aware population and growing policy clarity as key strengths. 

A conversation between Changpeng Zhao (@cz_binance), Founder of Binance and Chairman PVARA, @BilalBinSaqib on the future of crypto in Pakistan.

From Pakistan’s potential to tokenization and what comes next for the virtual asset economy.

Timestamps:

– Why Pakistan for Crypto?:… pic.twitter.com/ILGHOMBdWY

— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) December 30, 2025

“I think it’s fantastic to see the country of this size are able to have this clear vision from the leadership and ability to move at this speed,” CZ said. He added that if the current pace continues, “at this speed in five years, Pakistan will be the crypto leader, one of the crypto leaders in the world.”

Pakistan’s regulatory shift and why it matters

Pakistan has made a number of moves in 2025 to make crypto activity regulated. To regulate digital assets and services, the government created the Pakistan Virtual Assets Regulatory Authority (PVARA).

The authority has representatives of the State Bank of Pakistan, the Securities and Exchange Commission (SEC), and the Federal Board of Revenue, which means that the coordination among major financial institutions is provided.

During the same period, PVARA granted in-principle approvals to global exchanges Binance and HTX, allowing them to begin setting up local operations and prepare for full licensing. 

Pakistan takes a decisive step toward a regulated digital asset future.

Pakistan Virtual Assets Regulatory Authority (PVARA) has issued NOCs to Binance and HTX, launching a phased, FATF-aligned pathway toward full licensing. Strong governance, AML and CFT compliance remain… pic.twitter.com/jSk6JTqvFt

— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) December 12, 2025

These developments mark a shift from earlier uncertainty toward a phased licensing model for Virtual Asset Service Providers. Pakistan has also considered more radical concepts, such as creating a Bitcoin reserve and exploring real-world asset tokenization as a method of foreign investment and market liquidity.

According to CoinMarketCap data, Bitcoin is currently trading around $88,400, and it indicates that the world is still interested in it despite the volatility in the market.

Tokenization and global access

When asked about tokenizing Pakistan’s stock market or sovereign assets, CZ framed the idea as a way to broaden access. 

“Which country doesn’t want the global population to buy their stocks?” he said, adding that “Tokenizing stocks allows the global population to buy those tokens. That is basically direct investment into those stocks of Pakistan.”

This view aligns with earlier developments. Pakistan recently signed a non-binding memorandum of understanding with Binance to explore tokenizing up to $2 billion worth of sovereign assets, including government bonds and commodity reserves. 

According to a Reuters report, the goal is to improve transparency, increase liquidity, and expand access to international markets, subject to regulatory approvals.

Opportunities and challenges for local players

In addition to institutions, CZ emphasized how blockchain reduces entry barriers to individuals and small businesses than conventional banking or artificial intelligence.

“The blockchain will never reject you,” he said, while also noting the need for stronger education, university programs, and incubators to support innovation. Related initiatives suggest Pakistan is testing multiple angles at once. 

Earlier this year, officials confirmed plans to explore a national stablecoin, which PVARA’s leadership described as a potential tool for modernizing payments and even managing government debt.

Although the results will be determined by the implementation, regulation, and the market situation, the latest steps of the country demonstrate why the global crypto leaders are becoming more attentive to its development.

Also Read: Iranian Currency Collapse Shows Need for Bitcoin: Bitwise CEO

This week witnessed protests throughout Iran’s capital Tehran following the decline of its national currency, the rial, to record lows against the US dollar. This exacerbated the anger of the people with the inflation, erosion of savings and the long-term economic strains. 

Amid the frustration, Bitwise CEO Hunter Horsley highlighted Bitcoin as a possible instrument that people around the world employ to insure themselves against the falling fiat currencies, which put the focus on the role of crypto at the time of financial turmoil.

Economic mismanagement —

The story of the past, present, and future.

Bitcoin is a new way for the people to protect themselves. https://t.co/C8nWz4DPFN

— Hunter Horsley (@HHorsley) December 29, 2025

The protests came after the rial fell by a steep margin, which is mostly attributed by the locals to poor fiscal policies by the central bank of Iran. 

Rial hits record low amid economic mismanagement

Reports quoted by the Financial Times state that the rial has lost over 40% of its purchasing power since June when a short-lived but fierce conflict with Israel further tightened the Iranian economy. 

The currency is now trading at an all-time low of close to 1.4 million rials against the US dollar. To put it in perspective, analysts observe that at the beginning of the 1980s, the official exchange rate was approximately 70 rials per US dollar, which highlights the extent of depreciation over the long term.

1.42 million rial per dollar

The official rate in the early 1980s was **70 per dollar** https://t.co/Sor7WEQnQ8

— Alex Gladstein (@gladstein) December 30, 2025

It is against this context that Horsley remarked on X that economic mismanagement has caused harm to ordinary citizens repeatedly and that Bitcoin is an alternative store of value that is not controlled by state-run monetary systems. 

His statements did not explicitly support the adoption of Bitcoin in Iran but presented it as a larger global reaction to the decline of currencies, which has been the opinion of a number of leaders in the crypto industry in recent years.

Banking risks, economic pressure, and crypto constraints

Political turmoil also accompanied the protests. The governor of the central bank of Iran, Mohammad Reza Farzin, is said to have resigned due to the increasing criticism, which further left the financial direction of the country uncertain. 

Meanwhile, the banking industry in Iran is becoming more stressed. In October, the Bank Melli, which is state-owned, was declared bankrupt, endangering the assets of over 42 million individuals. 

This was a warning by the central bank of Iran earlier this year that eight more banks might be dissolved or forced to merge unless it undergoes urgent reforms.

Sanctions and crypto regulation add pressure

These issues are still aggravated by international sanctions. Sanctions associated with the Iranian nuclear program and operations in the region have restricted access to international financial networks and hard currency, undermining trust in local banks and speeding up the exodus of the rial.

Although crypto trading is legal in Iran, the regulatory framework is not clear, particularly regarding self-custody. Bitcoin mining is regulated and legal. 

Matthew Sigel, Head of VanEck research, recently pointed out that the government has been cracking down on mining activities that have not been registered, and in fact, it is encouraging people to report offenders. 

Protests erupt in Tehran as the rial hits a record low.

Worth recalling: Iran recently cracked down on unregistered Bitcoin mining, even offering cash rewards for citizens to report their neighbors, just as demand for stores of value soared.

Truly diabolical policy sequencing.… pic.twitter.com/uosLRsKhQf

— matthew sigel, recovering CFA (@matthew_sigel) December 29, 2025

It is in spite of the fact that electricity costs in Iran are low, and theoretically, Bitcoin mining can be done at a fraction of the costs in the rest of the world.

Crypto sector faces regulatory and security challenges

The dangers go beyond regulation. In June, an Iranian crypto exchange Nobitex was hacked, which caused additional damage to the trust in local crypto infrastructure. Subsequent blockchain data indicated that crypto inflows to Iran decreased by 11% between January and July as tensions rose in the region.

Similar debates are going on around the world. Coinbase CEO Brian Armstrong has recently claimed that Bitcoin can serve as a counter to governmental waste and inflation, even in the developed world, such as the United States. 

Collectively, these opinions represent a larger debate, as currencies are strained by inflation, war, or a bad policy choice, Bitcoin is more and more a part of the discussion, not a solution to all our issues, but a backup system that people resort to when everything is unpredictable.

Also Read: Saylor Predicts US Bank Bitcoin Buying & Custody in First Half of 2026

An alleged scammer impersonating Coinbase customer support has reportedly stolen more than $2 million in cryptocurrency from unsuspecting users, according to blockchain investigator ZachXBT. 

The case highlights the growing threat of social engineering scams in the crypto industry, where attackers exploit trust rather than technical vulnerabilities.

In a post shared on X earlier this week, ZachXBT said he identified a “Canadian threat actor” who allegedly carried out support impersonation scams over the past year. 

1/ Meet Haby (Havard), a Canadian threat actor who has stolen $2M+ via Coinbase support impersonation social engineering scams in the past year blowing the funds on rare social media usernames, bottle service, & gambling. pic.twitter.com/bBqrV7GmPi

— ZachXBT (@zachxbt) December 29, 2025

The fraudster allegedly called Coinbase users claiming to be a help desk worker and persuaded victims that their accounts were compromised.

Users targeted through fake support calls

According to ZachXBT, the attacker used social engineering tactics, including phone calls and fake support conversations, to trick users into revealing sensitive information or approving unauthorized transactions. 

A leaked screen recording shared by the investigator shows the scammer speaking directly with a victim while offering fraudulent assistance. ZachXBT claimed that the money stolen in these frauds was over $2 million and used to gamble, lavish night services, and rare usernames on social media.

While the investigator said he traced the suspect’s identity and location using public data, he did not disclose personal details due to platform policies.

How the scam worked

Social engineering frauds are based on deceit and not hacks. The attacker in this case is accused of spoofed phone numbers, emails, and messaging applications to look legitimate.

The victims thought they were talking to official Coinbase employees and took the advice that led to the loss of assets. ZachXBT noted that the alleged scammer repeatedly deleted accounts and purchased expensive Telegram usernames to cover tracks. 

Nevertheless, it was said that it was possible to trace the money by public posts and wallet activity. The case highlights the importance of the fact that even seasoned users may become victims when the scams are carried out in a convincing manner.

Similar crypto scams and law enforcement action

This case follows several high-profile crypto fraud incidents in recent months. Earlier this year, a user lost $50 million in USDT when he copied a poisoned wallet address into transaction history, as reported by Lookonchain.

A victim (0xcB80) lost $50M due to a copy-paste address mistake.

Before transferring 50M $USDT, the victim sent 50 $USDT as a test to his own address 0xbaf4b1aF…B6495F8b5.

The scammer immediately spoofed a wallet with the same first and last 4 characters and performed an… pic.twitter.com/eGEx2oHiwA

— Lookonchain (@lookonchain) December 20, 2025

In another major development, U.S. authorities arrested a New York-based suspect in December following an investigation into a multimillion-dollar Coinbase impersonation scam, also linked to ZachXBT’s on-chain analysis.

The event is a reminder that impersonation of customer support is one of the most efficient scamming techniques in the crypto world.

Why this matters for crypto users

The incident serves as a reminder that customer support impersonation remains one of the most effective scam methods in crypto. The exchanges have already issued several warnings to users that support personnel will never request seed phrases, passwords, or transfer funds to personal wallets. 

With the increased use of crypto, new users are at greater risk because they do not have much knowledge about the typical tricks of scammers. Such cases also highlight the urgent need to educate users, improve security practices, and authenticated communication channels.

Although blockchain tools simplify the process of tracking fraud, prevention is the best defense. Social engineering is still taking advantage of human trust and it is important to be watchful in an industry where the transactions are irreversible.

Also Read: Chinese Crypto Scammers Build $27B Darknet Market Via Telegram

Brian Armstrong, CEO of the largest exchange in the U.S. Coinbase, says Bitcoin could help maintain fiscal discipline in the United States and indirectly support the U.S. dollar’s role as the global reserve currency. 

In a recent interview on Tetragrammation with Rick Rubin, Armstrong stated that Bitcoin (BTC) creates a form of healthy competition for the dollar and prevents reckless fiscal policy. 

Sharing the clip on X, Armstrong said, “It creates competition in a way that’s healthy for the dollar, which helps to provide a check and balance against high inflation and deficit spending.” He argued that when inflation or deficit spending becomes excessive, people may seek alternatives like BTC. 

Bitcoin is good for USD.

It creates competition in a way that’s healthy for the dollar, which helps to provide a check and balance against high inflation and deficit spending. pic.twitter.com/iHjQCJVqCb

— Brian Armstrong (@brian_armstrong) December 28, 2025

He added, “if there’s too much deficit spending or inflation in the US, people will flee to Bitcoin, you know, times of uncertainty.” 

U.S. debt surge and dollar pressure

The U.S. government’s national debt has risen dramatically in recent years. According to the U.S. Congress Joint Economic Committee, the national debt is now approaching $38.5 trillion, increasing by roughly $69,433 per second for the past year. 

Armstrong’s comments come amid growing concern that high debt and inflation could erode confidence in the dollar if not managed carefully.

Bitcoin’s price, which peaked above $126,000 in October 2025, its all-time high, before pulling back, has been seen by some analysts as a “debasement trade”—a hedge against currency weakening, alongside gold’s rally. 

Armstrong said, “Bitcoin is special and unique in the sense that it is like digital gold. It has the highest trust, I would say, because it’s the original incarnation of crypto.”

The CEO believes Bitcoin’s existence can help remind markets and policymakers of monetary risks. “I actually think in a strange way, you know, Bitcoin is helping extend the American experiment in the sense that it creates competition with the dollar,” he said.

The role of stablecoins and the USD

Meanwhile, other leaders in the industry believe that stablecoins, which are digital currencies tied to the U.S. dollar, can be more directly connected to maintaining dollar supremacy in the world.

Unlike Bitcoin, stablecoins are designed to hold a steady value and are increasingly being adopted for everyday payments, remittances, and business transactions.

In July 2025, the U.S. passed the GENIUS Act, a comprehensive framework to regulate payment stablecoins and require them to hold safe assets like the U.S. Treasuries to back their tokens.

This move helped increase the confidence of financial institutions and contributed to the rapid growth of the stablecoins. Its market capitalization surpassed $312 billion and forecasts suggest that it may grow to over $2 trillion by 2028.

U.S. Treasury officials have suggested that dollar‑backed stablecoins could help cement global demand for the dollar by making it easier for people and businesses worldwide to use digital dollars in everyday commerce.

Indication of a changing financial environment

The debate highlights two contrasting views within the crypto world, Bitcoin as a store of value and check on monetary policy versus stablecoins as a practical digital dollar extension. 

Both trends indicate a changing financial environment in which digital assets are becoming more influential in the traditional money markets and finance on the global scene.

The debate on whether Bitcoin will eventually moderate fiscal policy or stablecoins will cement the use of the U.S. dollar in the world economy, but the discussion shows how digital money is transforming economic thought, even among policymakers and institutional leaders.

Also Read: Saylor Predicts US Bank Bitcoin Buying & Custody in First Half of 2026

A proposed 5% wealth tax on California’s billionaires is drawing sharp criticism from crypto executives and investors, who warn it could trigger capital flight and drive entrepreneurs out of the state. The proposal, known as the 2026 California Billionaire Tax Act, is expected to appear on the statewide ballot and has already sparked a wider debate about wealth taxes, innovation, and fiscal accountability.

The initiative seeks to impose a one-time 5% tax on net wealth above $1 billion, affecting roughly 200 Californians who collectively hold an estimated $2 trillion in assets. 

According to the SEIU United Healthcare Workers West union, the tax aims to address looming funding gaps in California’s healthcare system while also supporting public K-14 education and state food assistance programs.

Supporters argue that steep federal healthcare funding cuts, estimated at nearly $100 billion over the next five years, have pushed California toward a healthcare crisis. The union says these cuts could lead to job losses, higher insurance premiums, reduced coverage, and hospital closures if alternative funding sources are not found.

Billionaires seriously consider leaving California

According to a report by the New York Times, many billionaires including Peter Thiel and Larry Page are exploring ways to reduce or cut ties to California due to the proposed measures. Thiel, who also backs the digital asset exchange Bullish, is considering relocating and investing in other states.

Page, Google’s Co-Founder and a longtime Palo Alto resident, has filed documents to incorporate three limited liability companies in Florida and is reportedly contemplating leaving California by the end of the year.

The potential tax would retroactively apply to anyone residing in California as of January 1, 2026. Billionaires with $20 billion in assets could face a one-time $1 billion tax, payable over five years.

For Page, with an estimated net worth of $258 billion, the tax could exceed $12 billion, for Thiel, with $27.5 billion, the bill could be more than $1.2 billion.

Crypto executives warn of capital flight

Senior figures in the crypto industry have also strongly opposed the measure. Crypto exchange Kraken’s Co-Founder Jesse Powell and Bitwise’s CEO Hunter Horsley argue that taxing unrealized gains would force billionaires to sell assets or equity in their businesses, potentially disrupting companies and accelerating relocation out of California.

I say this with no joy as a California resident:

Many who’ve made this state great are quietly discussing leaving or have decided to leave in the next 12 months.

More generally, one of the fascinating developments of this decade is people voting their views not with the… https://t.co/bTlBnsYdnY

— Hunter Horsley (@HHorsley) December 27, 2025

Powell warned on X that the proposal could be “the final straw,” saying billionaires would take jobs, philanthropy, and investment with them. 

Castle Island Ventures partner Nic Carter echoed similar concerns, questioning whether policymakers had fully analyzed capital mobility in an era when wealth can move across borders quickly.

Critics compare the proposal to wealth tax experiments in Europe. Dune CEO Fredrik Haga pointed to Norway’s experience, where a similar tax reportedly led many wealthy individuals to move abroad, generating less revenue than expected.

Defenders say investment in services fuels innovation

The proposal has been publicly defended by California Democrat Representative Ro Khanna, a Democrat with a crypto-friendly policy.

My district is $18 trillion, nearly 1/3 of US stock market in a 50 mile radius. We have 5 companies with a market cap over a trillion dollar companies. If I can stand up for a billionaire tax, this is not a hard position for 434 other members or 100 Senators.

Those saying that… https://t.co/k7j4TvJARK

— Ro Khanna (@RoKhanna) December 27, 2025

He asserts that investment in childcare, housing, healthcare, and education eventually enhances innovation through maintaining a stable workforce and decreasing inequality over time.

Yet skepticism remains over whether new tax revenue would be effectively used. Horsley and NYU Professor Austin Campbell cited a December audit by the California State Auditor that flagged issues with how taxpayer funds were managed, including untracked or weakly justified spending.

Broader U.S. debate on crypto and taxes

The California proposal is a contrast to the recent developments in other states. Arizona has proposed pro-blockchain bills that would exempt digital assets in the state of Arizona and safeguard blockchain node operators.

The lawmakers of Ohio and Wyoming have also introduced exemptions of small crypto transactions as an incentive to adopt and innovate.

With states adopting various approaches, the billionaire tax in California brings to the fore an increasing conflict between investment in the services of the state and business-friendly environment.

As the voters are likely to resolve the question in 2026, the discussion will influence more extensive debates about wealth, taxation, and the future of innovation in the U.S.

Also Read: Japan FY2026 Tax Reform: Crypto Reclassified as Financial Product

As 2025 draws to a close, BNB Chain has officially secured its position as the world’s most active Layer 1 blockchain by a significant margin. New data released from CryptoRank today reveals that the network averaged 4.32 million daily active wallets throughout the year, effectively widening the gap between its closest competitors, Solana and NEAR protocol.

Top L1 Chains By Daily Active Users in 2025

@BNBCHAIN 4.32 million (daily average)
@solana 3.23 million
@NEARProtocol 3.15 million

4. @trondao 2.55 million
5. @Aptos 1.03 million pic.twitter.com/glJkGdKzQS

— CryptoRank.io (@CryptoRank_io) December 25, 2025

Solana secured the second rank, demonstrating a robust ecosystem with an average of 3.23 million daily active wallets. NEAR Protocol followed closely in third place, recording a significant level of engagement with 3.15 million daily active wallets.

TronDAO occupied the fourth position on the leaderboard, sustaining a consistent user base of 2.55 million daily active wallets. Aptos successfully entered the top five rankings, achieving a milestone of 1.03 million daily active wallets.

CZ reacts: “2026 will awesome”

Binance Co-Founder Changpeng Zhao, popularly known as CZ, has responded to this data. In a brief post on X, CZ encouraged ecosystem builders and expressed optimism about the network’s growth heading into 2026, highlighting the significance of user activity as a key performance metric. He said, “Keep building. 2026 will awesome!”

The daily active wallet count often provides a stronger indication of organic adoption and ecosystem engagement than token price alone. The widening gap in user activity reflects not just retail adoption but also growing institutional interest. 

For instance, the BlackRock BUIDL launch on BNB Chain recently demonstrated confidence from institutional investors, signaling broader engagement with the network beyond standard trading activity.

Factors that have fueled the expansion of BNB Chain

Several factors appear to be fueling BNB Chain’s expanding user base. Recently, Kalshi enabled deposits and withdrawals for BNB and USDT, allowing users faster access to one of the world’s leading prediction markets via BNB Chain. 

BSC deposits are now live on @Kalshi

This gives users direct, instant access to one of the world’s leading prediction markets.

Read more from Kalshi https://t.co/azbWN2TRKl

— BNB Chain (@BNBCHAIN) December 22, 2025

Additionally, Binance’s acquisition of an Abu Dhabi global license points to regulatory progress, enabling wider real-world use of the network for faster and cheaper transactions. 

These advancements indicate that BNB Chain is becoming popular in the field of decentralized finance (DeFi) as well as in wider financial use. These trends indicate that BNB Chain is on the rise in decentralized finance and in more general financial uses.

Stablecoin growth strengthens BNB Chain liquidity

Stablecoins have been another important component in the ecosystem development of BNB Chain. According to the data provided by Dune Analytics, the amount of stablecoins in circulation on the network increased to more than $15 billion by mid-December, as compared to $14.8 billion in mid-November 2025.

Stablecoins on BNB Chain just crossed $15B in total circulating supply

Source: @Dune pic.twitter.com/mmRXYvRKqX

— BNB Chain (@BNBCHAIN) December 17, 2025

USDT is still the biggest contributor, and USD1 and USDC are also experiencing significant growth, but smaller stablecoins like USDe have also experienced significant growth, increasing more than ten times in the past few months.

Analysts also note that the increasing use of stablecoins contributes to the enhancement of liquidity and the use of DeFi in large-scale applications.

Recent events and market effect

The network is in the process of introducing a new institutional grade stablecoin to help serve large-scale applications. 

According to BNB Chain officials, the asset will be created to improve the liquidity of various use cases, which will strengthen the increasing utility of the chain in both DeFi and traditional financial ecosystems. 

This is against a backdrop of a high adoption rate with the overall market capitalization of stablecoins on the BNB Chain increasing 32.3% quarter-on-quarter in Q3 2025.

Stablecoins became a major growth driver in Q3.

• Stablecoin market cap rose 32.3% QoQ to $13.9B
• Growth was broad across issuers, including yield-bearing and synthetic assets
• The 0-Fee Carnival continued to reduce onboarding friction pic.twitter.com/1H3pLu4Gzn

— BNB Chain (@BNBCHAIN) December 16, 2025

Analysts observe that the long-term adoption trends may be reflected in the daily wallet activity, which might affect the developer interest and institutional involvement in the network.

Also Read: CZ Spotlights New Predict.fun Platform on BNB Chain

Crypto wallet provider Trust Wallet has confirmed a security incident affecting a specific version of its browser extension, after on-chain investigator ZachXBT estimated that attackers drained more than $6.77 million from users’ wallets so far. 

The incident has raised fresh concerns around browser-based wallet security at a time when crypto-related exploits continue to rise across the industry.

The issue surfaced on Thursday after ZachXBT issued a public alert on Telegram, warning that multiple Trust Wallet users had reported sudden and unauthorized fund transfers. 

Yes $6M+ stolen at minimum from hundreds of Trust Wallet users.

Hopefully they will offer compensation to everyone if it’s determined they’re at fault for the incident.

It’s difficult to map out since there’s many theft addresses.

Here’s my list so far below:

EVM…

— ZachXBT (@zachxbt) December 25, 2025

According to the investigator, users saw their balances disappear within minutes, with no signs of gradual withdrawals. Many reports appeared shortly after Trust Wallet rolled out an update to its Chrome browser extension.

Further, as per Lookonchain, the hacker has sent about $4.25 million to ChangeNOW, FixedFloat, KuCoin, and HTX.

Extension update linked to sudden wallet drains

Trust Wallet later confirmed on X that the incident impacted Browser Extension version 2.68. The company urged users to immediately upgrade to version 2.69 and advised those still on the affected version to disable the extension until the update is complete.

“Users with Browser Extension 2.68 should disable and upgrade to 2.69,” Trust Wallet said, adding that mobile-only users and other extension versions were not affected. Several user reports claimed that funds vanished immediately after importing seed phrases into the updated extension 2.68. 

We’ve identified a security incident affecting Trust Wallet Browser Extension version 2.68 only. Users with Browser Extension 2.68 should disable and upgrade to 2.69.

Please refer to the official Chrome Webstore link here: https://t.co/V3vMq31TKb

Please note: Mobile-only users…

— Trust Wallet (@TrustWallet) December 25, 2025

On-chain data reviewed by ZachXBT showed rapid transfers involving Bitcoin, Ethereum, and Solana, with funds routed through multiple receiving addresses in a consistent pattern. The activity concentrated in the hours following the update rollout, suggesting a narrow but impactful attack window.

On-chain data shows multi-million dollar impact

According to publicly available blockchain information, ZachXBT found several addresses that were being paid by hundreds of affected wallets.

Early estimates placed losses above $6 million, while visible on-chain transfers accounted for at least $4.3 million. The final figure could rise as more victims come forward.

Trust Wallet said it is actively investigating the issue but has not publicly disclosed the root cause or whether the extension update directly enabled the exploit. As of press time, the company has not announced recovery options or mitigation measures beyond upgrading the extension.

CZ reacts to Trust Wallet hack

Binance Co-Founder Changpeng Zhao (CZ) addressed the incident on X, saying “So far, $7m affected by this hack. @TrustWallet will cover. User funds are SAFU. Appreciate your understanding for any inconveniences caused.”

He added that, “The team is still investigating how hackers were able to submit a new version.”

Why this incident matters

The Trust Wallet incident raises the issue of increasing risks associated with browser extensions, which typically deal with private keys and seed phrases. In contrast to smart contract exploits, wallet-level attacks may result in immediate and irreparable losses, and users have little to do about it.

The incident is also part of a larger trend of increasing crypto theft. According to Chainalysis estimates, attackers stole more than $3.41 billion in cryptocurrency between January and early December this year, slightly higher than last year’s total. 

Many of these incidents involved phishing attacks, compromised third-party services, or wallet vulnerabilities.

Similar breaches raise broader security concerns

Decentralized prediction platform Polymarket, earlier this week, verified that a recent hack was a result of a vulnerability in a third-party authentication provider, and not its own systems.

There, the attackers emptied user accounts following the use of external login infrastructure, which highlights the importance of dependencies that are not part of core platforms in creating severe risks.

The combination of these events demonstrates that wallet providers and crypto platforms are still appealing targets, despite the absence of direct protocol failures.

The Trust Wallet case contributes to the existing discussions on user security, extension-based wallets, and the necessity of more robust protection of the crypto ecosystem as a whole.

Also Read: 2025 Crypto Hacks Hit $6.5B as Stolen Funds Jump 51% Yearly

Amplify, a digital asset manager, has introduced two new stablecoins and tokenization-based exchange-traded funds (ETFs), Amplify Stablecoin Technology ETF (STBQ) and Amplify Tokenization Technology ETF (TKNQ), to its portfolio in the rapidly expanding blockchain industry. 

The Amplify Stablecoin Technology ETF (STBQ) and Amplify Tokenization Technology ETF (TKNQ) both began trading on the NYSE Arca on December 23, 2025.

Introducing first-of-their-kind ETFs: $STBQ, Amplify Stablecoin Technology ETF, and $TKNQ, Amplify Tokenization Technology ETF.

Full press release: https://t.co/W9w7aeQmHk
STBQ: https://t.co/pSib0LOadW
TKNQ: https://t.co/lJl4HgpmBA pic.twitter.com/gBmQjEfohP

— Amplify ETFs (@AmplifyETFs) December 23, 2025

Targeted exposure to emerging crypto trends

The STBQ ETF is designed to track companies generating revenue from payments technology, digital asset infrastructure, and trading platforms that support the stablecoin ecosystem. 

It holds shares in firms such as Visa, Mastercard, PayPal, and Circle, alongside crypto ETFs from Grayscale, iShares, and Bitwise. Amplify wrote “stablecoins as the compliant backbone of digital finance,” citing regulations such as the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the U.S. and the Markets in Crypto-Assets Regulation (MiCA) in Europe.

In the meantime, TKNQ focuses on businesses that are building tokenization products such as BlackRock, JPMorgan, Citigroup, Figure Technology Solutions, and Nasdaq. 

Tokenization allows the representation of real-life assets, including equities, bonds, or real estate, as digital tokens on a blockchain. Analysts estimate that the tokenized assets may increase to more than $3.7 trillion to $4 trillion by 2030 due to institutional adoption and changing regulations.

Background and market context

These ETFs are launched at a time when there is a boom of blockchain-oriented investment products. In 2025, the U.S. regulators relaxed some of the crypto ETF requirements, enabling providers such as Amplify to launch more targeted ones. 

Stablecoins have risen to the forefront in particular after the U.S. legislation provided institutions with the confidence to issue compliant digital assets, and tokenization has been on the rise as financial institutions consider how to digitalize traditional markets.

Christian Magoon, the CEO of Amplify ETFs, said, “We were early in recognizing the potential of blockchain-related technologies, and that experience informs how we approach the next wave of developments taking shape today.”

Possible investor implication

These ETFs provide investors with an opportunity to get exposure to major themes in the digital finance sector without owning cryptocurrencies. The capital is likely to capture the progress in the use of stablecoins, regulatory shifts, and institutional participation in tokenization. 

Analysts point out that STBQ may experience an increase due to the fact that the volumes of the transactions with the stablecoins are only going to increase, and they are now estimated to be more than $9 trillion each year.

New trends and regulatory impact 

Other companies have made similar steps in the wider market, introducing blockchain or crypto-oriented ETFs after the U.S. Securities and Exchange Commission made its regulatory stance clear. 

These ETFs also offer investors controlled ways to engage in digital finance innovations and reduce part of the risks associated with direct crypto exposure.

Also Read: VanEck Files Third Amendment for Spot Avalanche ETF With SEC

A major PUMP holder closed a three-month position at a substantial loss, according to on-chain data from OnchainLens and Nansen. The wallet deposited 3.8 billion PUMP, worth $7.3 million, into FalconX on December 23. 

The same tokens were initially withdrawn from Binance at a value of $19.53 million, resulting in a realized loss of $12.22 million. According to blockchain records, this transfer is more of a full exit of the position as opposed to a partial sale.

What a brutal loss!

Whale 3QB9kH accumulated 3.806B $PUMP($19.53M) from #Binance between Sep 12 and Nov 4 at an average price of $0.00513.

3 days ago, he deposited all 3.806B $PUMP ($7.3M) into #FalconX to sell, incurring a total loss of over $12M(-62%).… pic.twitter.com/XlJj2HOeiD

— Lookonchain (@lookonchain) December 23, 2025

PUMP price close to key support levels

After the whale exited, PUMP was trading at approximately $0.00167-0.00175, which is slightly below a long-term support band. The token has been trading within a downward trending channel over the past weeks with lower highs and no selling pressure. 

The technical indicators show that the market is still bearish, the RSI is below the midline and the MACD is negative which means that the sellers still prevail.

However, it has been observed that a whale exit causes short-term selling pressure, but it also eliminates a large overhead seller, which might eventually lessen any future resistance related to supply.

In case if the support of the $0.0017 level breaks, PUMP might be retracted to the zone of $0.0015-0.0014 where the next demand area lies. Conversely, holding  above $0.0027 would mark the first major bullish shift, with resistance level near $0.0045.

An extended recovery above the channel midline would ultimately aim at the $0.02 zone, but this would be achieved after breaking several resistance levels and a lot of volume verification.

History and recent market environment

PUMP has been volatile over the last few months, in line with the overall trends in low-cap altcoins. Smaller holders sold into local highs earlier in November, as well, which helped to cause temporary price dips. 

Such massive movements of whales, according to analysts, tend to predetermine short-term price action and can affect the mood of retail traders.

Why this matters

The loss of $12 million by one whale highlights the dangers of volatile and low-cap cryptocurrencies. Whale exits may affect short-term market action and market mood. 

To investors, whale movements combined with technical levels may give an idea of possible support and resistance levels, and navigate high-risk altcoin markets.

Also Read: Advancing PumpFun Lawsuit Puts Solana Under Legal Spotlight

The U.S. Securities and Exchange Commission (SEC) has charged seven entities, including three purported crypto asset trading platforms and four investment clubs, for allegedly defrauding retail investors out of more than $14 million through a sophisticated social media driven investment scam.

According to the SEC, the scheme ran between January 2024 and January 2025 and mostly targeted U.S.-based retail investors. The defendants include crypto trading platforms Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc., along with investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation.

The regulator filed the complaint in the U.S. District Court of the District of Colorado for violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. 

The SEC alleged that the entities engaged in a coordinated fraud scheme that was based on false trading platforms, falsified investment products, and false statements of regulatory approval.

How the scam worked

The SEC stated that the investment clubs lured victims with social media adverts and messaging applications like WhatsApp. The fraudsters presented themselves as financial experts and utilized group chats to gain the trust of investors by telling them what they purported to be AI-generated investment tips.

Once investors gained confidence, the clubs encouraged them to open accounts on the three crypto asset trading platforms. These platforms allegedly claimed to hold government licenses and offered what they described as “Security Token Offerings” tied to legitimate businesses.

In reality, the SEC says, no trading ever occurred. The platforms were fake, the token offerings were not real, and the companies were also fake. The defendants charged extra fees when investors tried to withdraw their money, which further increased the losses of investors.

The SEC claims the defendants misappropriated at least $14 million and moved the money abroad through a system of bank accounts and crypto wallets.

An alarmingly growing trend

SEC officials say the case highlights a growing trend of crypto-related scams that exploit social media, messaging apps, and emerging technologies such as artificial intelligence. 

Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, said the agency continues to see fraudsters using online communities and fake expertise to manipulate retail investors. The SEC is seeking permanent injunctions, civil penalties, and disgorgement of ill-gotten gains, along with prejudgment interest against several defendants.

The charges also come as U.S. authorities continue cracking down on crypto-related investment fraud. In a recent case, a federal judge sentenced Magdaleno Mendoza, a senior promoter of the IcomTech cryptocurrency Ponzi scheme, to nearly six years in prison. 

Prosecutors said Mendoza helped lure victims with promises of guaranteed returns and hosted recruitment events while collecting large sums of cash. That case, like the current SEC action, targeted working-class investors and relied heavily on trust-building tactics and false profit claims.

Investor caution remains critical

The SEC’s Office of Investor Education and Assistance has cautioned investors against unsolicited investment offers in social media and messaging platforms. 

The agency recommends that investors should check licenses, be skeptical of guaranteed returns, and check the background of anyone promising an investment opportunity with the help of official tools such as Investor.gov.

With crypto markets maturing, the regulators argue that awareness and due diligence are still needed in ensuring that retail investors are not exposed to more sophisticated scams.

Also Read: MEXC Once Again Faces Scrutiny on Premarket Scams Allegations