South Korea’s Financial Supervisory Service (FSS) announced on Monday that it would begin using a new AI-based surveillance system to combat unfair virtual asset trading. The system, the Virtual Assets Intelligence System for Trading Analysis (VISTA), was developed by the regulator’s Virtual Asset Investigation Bureau.

According to the official announcement, VISTA uses a new sliding window grid search algorithm to automatically spot price manipulation. The upgrade was launched in Seoul to tackle the growing complexity of high-frequency trading and API-based market abuses that have often escaped manual checks.

Using the new system, the FSS hopes to better protect consumers and establish a transparent order in the rapidly changing virtual asset market. This is a major shift from the laborious process of manual checks to high-speed data processing.

Enhanced detection capabilities

The FSS confirmed that the new algorithm can break down suspicious trading periods into sub-second intervals. This allows for a level of analysis that human investigators couldn’t achieve before. The regulator stated that the system has already shown its effectiveness by identifying all suspicious intervals in previously closed cases and even uncovering additional manipulative actions that investigators had previously missed. 

This launch is a key part of the FSS’s larger strategy to incorporate strong computing power, including high-performance GPUs and CPUs, into its daily enforcement activities to keep up with the technical challenges of the cryptocurrency sector.

Evolution of infrastructure

The development builds on the FSS’s earlier efforts to improve its internal Virtual Asset Intelligence System. Since it started, the agency has used Python-based analysis tools to visualize trading patterns and identify unusual transaction indicators. 

However, as unfair trading practices became more advanced and high-frequency, the FSS recognized the need for a more powerful infrastructure. In late 2025, the agency began to prepare for this transition by acquiring high-performance servers to support AI integration and parallel data processing.

Advanced VISTA technology

The updated VISTA platform centers on the sliding window grid search technique. Unlike traditional methods that look at broad snapshots, this approach analyzes every possible sub-segment from time-series data, from fractions of a second to several months. 

Because this method requires extensive computational resources, the FSS has optimized its platform for parallel processing. This allows it to analyze hundreds of thousands of segments at the same time.

In the pilot testing involving five different digital assets, the algorithm either matched or outperformed human investigation efforts, as evidenced by the higher abnormal trading indicators in all test scenarios.

Future AI roadmap

The FSS plans to expand its AI capabilities through a multi-stage roadmap set for completion by the end of 2026. The next phase will involve the development of clustering algorithms to automatically identify groups of suspicious accounts participating in organized price manipulation. 

The regulator also plans to employ Large Language Models (LLMs) to analyze text data from thousands of different virtual assets to identify possible fraud. The final phase will involve the development of a network graph-based tracking system to analyze on-chain data and fund movements, enabling investigators to view connections between suspects and their transactions.

Future global regulation

The FSS is positioning itself as a leader in crypto regulation by moving toward an AI-focused enforcement model. With the automation of the detection of price manipulation, as well as the expansion of services into account clustering and on-chain tracking, the agency believes that it will be able to largely reduce the processing time of cases. 

The FSS said that it will continue to improve its AI-powered investigation system to quickly detect unfair trading. It will take strict actions through thorough investigations to protect users and create a stable market.

Also Read: South Korea Dismantles $102M Crypto Laundering Ring

On January 27, PayPal and the National Cryptocurrency Association released a joint study showing that 90% of U.S. merchants would start accepting cryptocurrency payments if the user experience and setup process were as simple as using traditional credit cards. 

This demand comes as nearly four out of ten merchants already accept digital assets, encouraged by high interest from younger shoppers. The report shows a change in the retail landscape, where the main barrier to widespread adoption has shifted from a lack of interest to a need for better technical integration.

The biggest myth about crypto payments? That merchants aren’t interested.

The reality: 90% say they’d try it if the setup matched card payments.

The demand is there.
The unlock is making crypto feel familiar at checkout. @NatCryptoAssoc https://t.co/ds3tzVg6ab

— PayPal (@PayPal) February 2, 2026

Rising enterprise adoption

The survey results challenge the common belief that businesses are reluctant to engage with digital currencies. According to the data, 39% of U.S. merchants have already added crypto at checkout.

Adoption reaches 50% among large companies earning over $500 million annually. For those already involved, crypto is no longer just an experiment; it makes up 26% of total sales for participating merchants.

The shift toward digital assets is a direct response to consumer demand. 88% of businesses report receiving customer inquiries about crypto payment options.

Growth tools for accessibility 

May Zabaneh, Vice President and General Manager of Crypto at PayPal, said crypto payments are moving beyond experimentation and into everyday use.

“Adoption is driven by customer demand for faster, more flexible ways to pay. Once businesses start accepting crypto, they see real value,” Zabaneh said. “When crypto payments feel as familiar as cards or online payments, they become an effective growth tool, helping businesses reach new customers and access funds more quickly.” 

“When crypto payments are offered in ways that feel as familiar as cards or online payments, they become a powerful growth tool, helping businesses reach new customers and access funds more quickly,” she added. Small business owners, such as Nikisha Bailey of Win Win Coffee, agree. They state that having flexibility and choice in payment options helps ensure independent businesses can grow alongside their customers.

Evolving industry utility

Cryptocurrency was once seen as a speculative asset rather than a payment method. However, recent years have shown steady growth in merchant usefulness. The report shows that industries like hospitality and travel are leading with an 81% adoption rate, followed closely by digital goods and luxury retail at 76%.

This is led by Millennials and Gen Z, who have expressed a high level of interest at 77% and 73%, respectively. The main drivers for merchants to facilitate the switch-over are faster speeds and new customer acquisition.

Future market normalization

The study suggests that the next five years will see the rapid normalization of digital assets. 84% of merchants predict that crypto payments will become common by 2031. 

For fintech providers, the focus is now on lowering the barrier to entry. Stu Alderoty, President of the National Cryptocurrency Association, explained that interest in crypto isn’t the issue; understanding it is. Alderoty said, “Too many people still don’t see how crypto fits into their everyday lives.”

“That’s why partnerships with trusted platforms like PayPal are so important. We’re working together to help close the knowledge gap and show how crypto can be simple, accessible, and easy for everyday businesses and consumers,” he stated.

Solving the usability gap

The report concludes that the key to moving from current adoption to a crypto-saturated market is usability. While security features and privacy are important selling points for 41% and 40% of merchants, the “final hurdle” is achieving the same ease as traditional financial systems. 

If payment processors can replicate the simplicity of a credit card swipe for digital tokens, the 90% of merchants currently waiting are likely to begin implementation. This would fundamentally change the standard checkout experience for American consumers.

Also Read: USD1 Overtakes PayPal’s PYUSD as Stablecoin Race Heats Up

A post shared on X on Monday claimed that U.S. President Donald Trump would sign a major Bitcoin and crypto market bill today at 3:30 PM, releasing $3 trillion in liquidity.

However, official government records, statements from key lawmakers, and the congressional calendar show no such event or executive agenda. The rumors may stem from meeting with banks today.

The White House press briefing room and official websites of sponsoring senators show no indication of a signing ceremony. Moreover, the widely circulated $3 trillion liquidity figure has no credible source and does not appear in any proposed legislation.

🚨 BREAKING:

🇺🇸 PRESIDENT TRUMP IS SET TO SIGN THE BITCOIN & CRYPTO MARKET BILL TODAY AT 3:30 PM.

THE LEGISLATION IS EXPECTED TO UNLOCK OVER $3 TRILLION IN LIQUIDITY, POTENTIALLY FLOWING INTO FINANCIAL MARKETS.

MAJOR CATALYST.

EXTREMELY BULLISH FOR CRYPTO. pic.twitter.com/VTvAXVGQKY

— Mr. Crypto Whale 🐋 (@Mrcryptoxwhale) February 2, 2026

What is Crypto Market Bill?

The Crypto Market Bill is a proposed federal framework that aims to clarify whether digital assets fall under the regulation of the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). The bill is intended to provide the legal certainty required for institutional banks and large financial markets to invest in blockchain technology.

Recent legislative progress

The speculation comes after legislative action on a number of bills related to the crypto space, such as the Genius Act and the Clarity Act. Although the Trump administration has been showing a more favorable view toward digital assets compared to previous years, moving a bill from the Senate and House floors to the Oval Office requires a clear series of votes and public disclosures.

None of these steps point to a signing scheduled for today, making the “breaking” claims on social media inconsistent from a current parliamentary procedure standpoint. The fact that rumors like these are being spread around indicates the volatility and sensitivity of the crypto market to social media news. If a bill of this magnitude were to be signed, it would result in a more organized regulatory framework for exchanges. 

Risk of market manipulation

Traders may act on these claims only to suffer losses when the projected event does not happen. Investors should proceed with caution, as misinformation campaigns often target retail investors during times of high market anticipation.

As the industry waits for federal oversight, investors should rely on official government websites and verified news outlets instead of anonymous social media claims. As of this afternoon, no Bitcoin-related legislation has been added to the executive agenda for immediate action.

Also Read: Why Trump is Taking His Own Government to the Court

Strategy Inc., a Bitcoin (BTC) treasury firm, announced that it expanded its digital asset treasury by purchasing an additional 855 BTC for about $75.3 million. The acquisition, disclosed on Monday, took place between January 26 and February 1 at an average price of $87,974 per coin.

The purchase was funded through the sale of shares in the company’s at-the-market (ATM) offering program. This maintains Strategy’s position as the largest corporate holder of Bitcoin. The move continues the firm’s strategy despite the recent market drop, where BTC plummeted from its 2025 highs to briefly touch levels below $76,000.

Strategy has acquired 855 BTC for ~$75.3 million at ~$87,974 per bitcoin. As of 2/1/2026, we hodl 713,502 $BTC acquired for ~$54.26 billion at ~$76,052 per bitcoin. $MSTR $STRC https://t.co/tYTGMwPPUF

— Michael Saylor (@saylor) February 2, 2026

The acquisition comes at a time of extreme market volatility. On January 30, Strategy Inc.’s stock experienced an 11% drawdown as Bitcoin fell below the $85,000 level, which shows the correlation between the company’s stock and the asset.

Coin basis update

As of February 1, Strategy Inc.’s total holdings reached 713,502 BTC, which represents an investment of roughly $54.26 billion. The average price comes to $76,052 per BTC. 

In its latest filing, the company reported generating $106.1 million in net proceeds by selling 673,527 shares of its Class A common stock to fund these new purchases.

In addition to common stock sales, Strategy Inc. manages several classes of preferred stock, including its Series A Perpetual Stretch Preferred Stock. The company recently raised the dividend rate for this particular security to 11.25% per year, effective February 1. 

The change suggests the company is encouraging traditional investment to support its ongoing digital asset purchases while still having a significant amount of “available for issuance” capacity across its different types of securities.

Recent purchases 

Strategy Inc. has continued its accumulation of Bitcoin in recent weeks. On January 20, the company surpassed 700,000 BTC in total holdings with a purchase of $2.13 billion. A week later, on January 27, it announced the acquisition of another 2,932 Bitcoin for $264 million. These successive large-scale acquisitions point to a period of heightened activity for the company.

Similarly, OranjeBTC, a Brazil-based Bitcoin treasury company, announced that it has continued its Bitcoin accumulation strategy. The firm has updated its reserves to 3,722.3 BTC, with a portfolio composition of around 43,604 shares per bitcoin.

🇧🇷 Nesta semana, a OranjeBTC retomou a execução de operações estruturadas voltadas à recompra de ações, mantendo disciplina na alocação de capital.

Números atualizados:
• 3.722,3 BTC em reservas
• Ações por Bitcoin: 43.604
• BTC Yield 1T26: 0,11%
• BTC Yield acumulado: 2,50%… pic.twitter.com/OEoVaxzPFF

— OranjeBTC (@ORANJEBTC) February 2, 2026

These numbers make a cumulative BTC yield of 2.50%, with the company posting a Q1 26 yield of 0.11% as of early February. This simultaneous activity shows a general market trend in which Bitcoin-related companies are utilizing the market crash to their advantage, like Strategy Inc. 

Bitcoin price update

At the time of writing, Bitcoin is trading at $77,893, reflecting a decline of approximately 0.43% over 24 hours. The total market capitalization stands at $1.55 trillion, representing a 0.5% decline. The circulating supply remains at 19.98 million BTC out of the total 21 million BTC. 

Strategy Inc. currently owns about 3.4% of the overall Bitcoin supply.

The firm’s filings show it has billions of dollars left for future stock issuances. Specifically, over $8 billion remains in its common stock ATM program, while over $20 billion is available for its 8.00% Series A Perpetual Strike Preferred Stock. This shows that the firm will continue its buying spree despite the price fluctuations in the crypto market.

Also Read: Bitcoin Drops 7%: $1.7B Liquidated as Markets Panic Over Potential Fed Pick

The digital collectibles market saw a sharp slowdown this week, with NFT sales declining by 41% across major blockchains. According to CryptoSlam data, Bitcoin-based NFT sales, primarily driven by Ordinals, witnessed a 70.07% decline in volume as of Saturday.

Despite the broader slowdown, CryptoPunks and Bored Ape Yacht Club (BAYC) continued to rank among the top 10 collections by monthly volume.

Flying Tulip PUT led the month overall, with $74 million in sales. While CryptoPunks recorded more than $13 million in volume, outperforming most newer projects and rising 57% week-over-week, BAYC recorded $6 million in sales, rising 21%.

Divergence in market activity

The current market conditions create a confusing environment where financial activity and retail engagement are diverging. Although Bitcoin NFT sales volume declined by over 70% to $6.66 million, the network still saw a 30.87% increase in new participants.

At the time of writing, the total number of buyers for the week has reached 10,905. This suggests that while major transactions have slowed, a new group of smaller collectors is joining the ecosystem.

Ethereum continued to dominate all blockchains with $46.92 million in NFT sales, falling 38.78% over the seven-day period. The network drew 28,096 buyers, up 18.26% from the prior week. Wash trading on Ethereum totaled $4.94 million during this timeframe.

Base recorded $2.26 million in NFT sales, marking a 35.45% gain, while BNB Chain followed with $7.73 million, reflecting a 10.24% increase over the past week. 

This recent volatility follows a time when Bitcoin Ordinals had become a major player in the NFT space, often matching or surpassing Ethereum in daily volume. However, the current downturn is a part of the overall cooling down of the speculative fervor that led to record-breaking asset prices a few months ago.

Correlation with asset prices

The NFT market has traditionally followed the price actions of the underlying assets, such as Bitcoin and Ethereum, which have been under pressure lately.

The current trend indicates substantial “bottom-fishing” activity in the Bitcoin space. The data indicates that institutional and “whale” liquidity are leaving high-priced Ordinals, while retail collectors are seizing the opportunity to join the ecosystem at lower prices. 

Future market outlook

This trend suggests that even though the total value of the market is decreasing, the number of holders is actually growing, which could lead to a more decentralized ownership structure for Bitcoin-based digital assets.

The future of this shift depends on whether these new retail participants stay active if prices remain flat. If the trend of increasing buyer numbers continues despite falling volumes, the market might be moving from a high-stakes speculative space to a more accessible retail environment.

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

Step Finance, a portfolio management service on the Solana blockchain, has confirmed today that a security breach compromised some of its treasury wallets. The incident came to light shortly after the occurrence of the breach, leading to the unstaking and subsequent transfer of around 261,854 SOL, worth over $28 million at the time of the breach.

The breach was detected by the on-chain data that highlighted a major unstaking of assets from the protocol’s treasury. The data also indicated that the assets were transferred at 08:20 UTC. In an X post on Saturday, the protocol acknowledged the situation publicly to keep users informed, stating that there had been a breach of security for some of their treasury wallets.

There has been a breach of security for some of our treasury wallets hours ago and we are currently investigating

More information will be posted at a later stage

— Step☀️ (@StepFinance_) January 31, 2026

Following the disclosure, users were advised to safeguard their wallets by revoking smart contract permissions previously granted to Step Finance. Active approvals allow applications to move assets, and compromised administrative control could potentially lead to further unauthorized withdrawals.

By using revocation tools or blockchain explorers to cancel these allowances, users can break the link between their funds and the affected contracts. This helps in preventing additional losses even if the protocol remains compromised.

Emergency recovery efforts

In response to the exploit, Step Finance has begun searching for external technical support to track the stolen assets and secure remaining funds. 

The team said it is reaching out to specialized digital forensics organizations to help manage the fallout. Regarding their recovery efforts, the team noted, “We are contacting Cybersecurity firms to assist. Any firms who can assist feel free to slide into DMs.”

We are contacting Cybersecurity firms to assist.

Any firms who can assist feel free to slide into DMshttps://t.co/uNN5l6TYVL

— Step☀️ (@StepFinance_) January 31, 2026

Platform ecosystem role

Step Finance has been a central dashboard for Solana users, providing functionality to monitor yields, swaps, and NFT portfolios. As a project within the Solana ecosystem, the importance of its treasury cannot be overstated in ensuring that it remains liquid and develops its offerings. 

Although the Solana network remains functional, this incident is the latest in a string of high-profile DeFi hacks in which the attackers focus on private key management or multisig configurations of the treasuries of large protocol projects.

Future implications

If the stolen 261,854 SOL cannot be recovered or frozen on centralized exchanges, Step Finance may face challenges in carrying out its long-term plans. The incident could also prompt a wider movement within the Solana community for stronger, third-party audited treasury management solutions to avert similar unauthorized deactivations of staked assets.

The investigation into the wallet compromise is still ongoing, with the Step Finance team set to release an announcement once the security teams have finished their analysis. Until then, the protocol remains under observation as the team works to ensure that there are no other vulnerabilities within their wallet infrastructure.

Also Read: Waltio Files Complaint Over Extortion and Crypto Data Breach

Tether, the issuer of USDT, recently announced that it is transporting over a ton of physical gold each week to a high-security vault in Switzerland. The accumulation supports its digital dollar, USDT, and its gold-backed token, XAUT. 

With this move, Tether has become one of the largest private holders of gold outside central banks and governments. The company says the decision to diversify into physical assets is meant to ensure that the company’s reserves, which are valued at several billion dollars, remain stable in the face of growing geopolitical tensions and the fall in value of fiat currencies.

Surpassing sovereign gold reserves

Tether is reportedly using a repurposed Cold War-era nuclear bunker to house its holdings and now holds 140 tons of gold, worth around $24 billion. The amount of gold reserves exceeds those of countries such as Greece, Australia, and South Korea.

The move positions Tether as a “gold central bank” in the private sector. This change indicates a shift for the world’s largest stablecoin issuer, which oversees nearly $187 billion in circulating USDT. While Tether remains committed to Bitcoin, owning over 100,000 units.

CEO Paolo Ardoino has described Bitcoin and Gold as equally vital to the firm’s future. He said, “It is almost like you have two children and have to decide which one is more beautiful.” Ardoino noted, “It’s reasonable that we are going to have around 10% in bitcoin and 10% to 15% in gold.”

Why is Tether buying gold

Tether began increasing its gold holdings in 2026 as stablecoin policy frameworks such as the U.S. GENIUS Act and Europe’s MICA rules moved into enforcement. As a result, regulators are now scrutinizing what reserves are made up of.

In this situation, gold offers Tether an asset with no counterparty risk, independence from U.S. banking rails, and universal acceptance as reserved collateral.

As reserve standards tighten, gold becomes a regulatory hedge as much as a financial one.

From digital to physical

The strategy’s emphasis on fortified physical assets reflects the early days of the industry when pioneers like Xapo stored Bitcoin in Swiss bunkers to shield digital wealth from hackers and government seizure.

However, the current trend marks a change; instead of using vaults to protect digital “gold,” firms now use them to accumulate actual physical metal to safeguard digital “dollars.” The announcement comes as the crypto market faces extreme scrutiny, while the price of gold keeps rising, with the most recent incline by 22% this year, to $5,311 per ounce.

Tether’s gold acquisition goes back to the 2020 pandemic, viewing gold as necessary against a world that is “not in a happy place.” The company’s conviction comes from the fact that the gold price increased last year by 64%. Gold is “logically a safer asset than any national currency,” Ardoino added.

Impact on global demand

The effects of this accumulation also extend beyond the crypto reserves. It is also noted that the price-insensitive accumulation of Tether has a major effect on the demand for gold. 

Tether is now competing with financial institutions by creating a complete supply chain for gold through the recruitment of experienced gold traders from large banks and the purchase of upstream mining royalty firms. 

This strategy suggests that the largest stablecoin issuer is preparing for a future marked by what Ardoino calls the “unraveling of Western economies,” where cryptographic code alone may not provide the necessary stability without support from physical assets.

Also Read: Tether Submits to U.S. Rulebook With New USA₮ Stablecoin

Institutional whales and retail investors experienced a market downturn today as XRP’s market cap dropped below $110 billion. The token fell from $1.91 to $1.75 in recent trading sessions amid huge liquidation that wiped out $62 million, with the majority of longs getting wiped out. 

At the time of writing, XRP is trading at $1.76, reflecting a decline of 2.26% over 24 hours. Its total market capitalization stands at $107.5 billion. As the price drops instigate panic selling from weak hands, the 24-hour trading volume has increased by over 45%.

CoinGlass data shows that XRP experienced a major long squeeze, with over $62.2 million in total liquidations over 24 hours. The long positions accounted for about 98%, i.e., $60.99 million of the total wipeout.

There has been a 4.26x liquidation in the 7-day average. The largest single liquidation was about $17.38 million, suggesting a sharp price pullback. The liquidation heat was primarily concentrated on Hyperliquid, which handled over $44 million, roughly 70%, of the total volume, followed by Bybit and Binance.

Technical breakdown

The price drop was further fueled by a “long squeeze,” where the forced selling of the asset due to liquidated positions caused the price to drop faster than it would have otherwise. The token also experienced a technical breakdown, where XRP dropped below its 30-day Simple Moving Average of $2.02 and the 50% Fibonacci retracement level of $2.09. These levels, which were previously a source of support, have now become a strong source of resistance.

Market data from the last quarter shows that XRP had been trying to stabilize above the $2.00 mark as part of its function as a utility bridge for financial institutions. However, the current decline of 6.59% is much worse than the overall crypto market’s 5.54% drop.

Unlike speculative meme coins, XRP’s value is often linked to institutional risk demand. Its faster decline suggests that large holders are reducing their risk by moving into stablecoins or other major coins, seeking safety as the Altcoin Season Index fell by 12.5%.

The Relative Strength Index (RSI) has dropped to 28.29. The lack of huge buying volume shows that market participants are hesitant. Most traders seem to be waiting on the sidelines, looking to see if a deeper bottom forms before investing again.

Bearish signals and RSI levels

TradingView technical gauges have issued a “Sell” signal, backed by a 14-to-0 ratio of bearish to bullish moving averages.

The future implications of this decline focus on the $1.78 swing low and the $110 billion market cap floor. If the total ecosystem valuation falls below this critical point, the liquidation of assets may continue unless buyers purchase the $1.75 level. If XRP is an indicator of institutional fear, then the failure to move above the $2.02 level may signal a long-term downturn for high-utility altcoins.

Also Read: Ethereum Plunges Below $2,700 — Could $2,094 Be Next?

The U.S. Securities and Exchange Commission (SEC) has stopped Roundhill ETF Trust from launching its proposed 4x leveraged exchange-traded funds. 

The SEC’s Division of Investment Management sent a formal letter to the firm’s counsel, Morrison Warren, regarding the Roundhill 4X SPY ETF and Roundhill 4X QQQQ ETF filings.

The financial and crypto-asset sectors are closely watching this situation, as it reinforces the agency’s plan to impose a strict leverage cap across all open-end fund structures. 

Under Rule 18f-4, all open-end funds, including those holding crypto-linked derivatives, must keep their Value-at-Risk (VaR) within 200% of a reference portfolio. This means that 2x leveraged crypto ETFs sit at the absolute regulatory limit, leaving little room for tracking error, volatility spikes, or structural complexity.

Violating rule 18f-4 leverage limits

The main concern is related to Rule 18f-4 of the Investment Company Act of 1940, which tries to ensure that the risk level associated with leverage in funds remains under control. According to this rule, the Value-at-Risk (VaR) of an open-end fund cannot exceed 200% of the VaR of a reference portfolio. 

Since the proposed ETFs from Roundhill are focused on offering 4x leverage, meaning 400% of the daily return, the SEC believes that this is not possible while remaining within the permissible leverage ratios.

Administrative rejection and fiduciary concerns

The SEC’s intervention came after Roundhill filed post-effective amendments on January 23, seeking to offer 400% daily exposure to major indices. The regulator stated it will not review these filings in detail until the issues in the letter are addressed, and it asked the firm to voluntarily delay the effectiveness of its filings.

This administrative hurdle serves as a clear rejection, as the SEC questioned how the trust’s directors could fulfill their fiduciary duties while pursuing a strategy that appears to go against federal risk management standards.

Risk baseline calculations

Roundhill reportedly tried to use a different baseline to assess its risk profile in its filings. The agency clarified that if a fund’s goal is to track the performance of an unleveraged index such as the S&P 500, it must use that specific index as its reference portfolio.

The SEC noted that the fund’s reference assets accurately represent the fund’s unleveraged portfolio and are the only proper baseline for calculating leverage risk. While 2x and 3x leveraged ETFs have become common for short-term traders, the SEC has typically been cautious about “super-leveraged” options. 

SEC emphasizes rules for issuers

The reaffirmation of Rule 18f-4 in recent years aimed to establish a clear framework for derivatives use. However, this exchange suggests some issuers thought there might be loopholes for products exceeding the 3x limit. The SEC’s current concerns emphasize that the 200% VaR limit is an unmovable barrier for now.

The SEC has made it clear that “more than 200% (2x) leveraged exposure to underlying indices or securities” is facing challenges under current rules. By refusing to review the Roundhill filings until they align with Rule 18f-4, the commission has effectively limited the leverage available in the ETF wrapper.

Issuers must now choose between withdrawing their filings or fundamentally changing their strategies to comply with the 200% risk limit.

Also Read: Grayscale Files S-1 with U.S. SEC for BNB ETF

Dubai Insurance has launched a first-of-its-kind digital wallet, allowing UAE residents to pay for car, health, and home insurance using Bitcoin and other major cryptocurrencies.

The move, announced on Wednesday, follows a regulatory change within the Dubai International Financial Centre (DIFC). It functions under the supervision of the Virtual Assets Regulatory Authority (VARA) and the Abu Dhabi Global Market’s Financial Services Regulatory Authority (ADGM FSRA).

As per a report, the project aims to transform the insurance industry by offering a faster payment solution. This is in line with the UAE’s vision of incorporating digital assets into the economy through the “Next Gen Finance” initiative.

Bypassing traditional banking fees

The new payment system allows customers to pay without going through banks through a direct digital wallet integration developed in collaboration with Zodia Custody. This change prevents the usual delays and high transaction fees tied to bank-led premium payments. It allows for 24/7 instant policy issuance, even on weekends and public holidays.

The introduction of this specialized wallet moves cryptocurrency beyond being a purely speculative investment. It turns it into a practical tool for everyday financial security. 

Residents with digital assets can now manage their insurance needs directly from their portfolios. They do not have to change their assets into fiat money in order to finish a transaction. This is a positive development for the growing number of “crypto-native” professionals in Dubai, who are increasingly earning and spending money in a purely digital environment.

History of proactive regulation

The UAE has historically taken a proactive approach to digital asset regulation. It established VARA in 2022 to create a clear legal framework for virtual asset service providers. Most recently, on January 12, 2026, the Dubai Financial Services Authority (DFSA) updated its rules. 

This change shifted the responsibility of token suitability assessments to individual firms and fostered a more agile and innovative environment. These regulatory improvements have opened the door for institutional players like Dubai Insurance to connect traditional insurance and blockchain technology.

Future of smart contracts

The success of this model indicates a future where decentralized technologies could further streamline the insurance lifecycle. Industry insiders believe the next level could include the use of smart contracts for automatic settlement of claims. This would enable instant payment into the policyholder’s wallet upon confirmation of a covered event.

By introducing crypto-based insurance payments, Dubai is reinforcing its leadership in the digital economy. The UAE is setting the pace globally by ensuring that its residents are able to insure their lives and properties without the need for banks.

Also Read: Kansas Proposes Bitcoin Reserve Using Unclaimed Digital Assets

Securities and Exchange Commission (SEC) Chairman Paul Atkins discussed a potential shift in federal retirement policy, stating that professional fund managers and trustees should have the authority to include digital assets in 401(k) plans.

In an interview with CNBC on Thursday, Atkins said, “The time is right to go forward with that in a measured way that has guardrails to protect the retirees.”

The SEC hopes to follow a White House executive order focused on digital asset innovation and asset diversification for everyday workers. The proposal seeks to modernize the American retirement system by treating cryptocurrency like institutional pension funds that have already accepted digital assets.

However, while Atkins has expressed support for the idea, no formal rule has been passed. The SEC does not control retirement plans, as that responsibility falls under the U.S. Department of Labor (DOL).

Current unregulated market

The current state of affairs for 401(k) plans is that there is no clear regulation, leaving those who manage American wealth in a precarious position. If they choose to include crypto and the market crashes, they could be sued for not adequately safeguarding the retirement savings of their participants.

On the other hand, if they choose to exclude digital assets during a market boom, they could face backlash for not providing the modern diversification and competitive returns that the current executive branch now promotes.

Managers now face a tough choice

If passed, the proposal would shift the responsibility of risk from federal regulators to private managers. Sponsors would have to deal with the complex interaction between the latest portfolio theory and the issue of liability. Atkins framed this shift as part of his “Project Crypto” initiative, which emphasizes financial freedom and innovation.

However, this approach puts the wealth managers in a tough spot. Without established safe harbors, these fiduciaries need to consider the potential for institutional growth alongside the risk of lawsuits if the volatile crypto market suffers a major downturn. 

Clearer guidance from regulators, like the Department of Labor, is required to shield managers from personal liability and to define exactly how digital assets can be integrated. As the primary enforcer of the Employee Retirement Income Security Act (ERISA), the department rescinded its “extreme care” warning in May 2025 to return to a neutral stance; it has yet to provide a green light for digital assets.

Industry-friendly regulatory approach

The need for crypto inclusion comes about as the SEC is now taking a more industry-friendly approach under the current administration. Atkins has been vocal about the need to shift away from regulation by enforcement and instead seeks to provide clear channels for new technologies.

This discussion is a part of a larger order that seeks to understand the role of digital assets in domestic savings. However, there might be some with the belief that the volatile nature of assets such as Bitcoin presents a major risk to the retirement savings of millions of American workers.

What comes next

The integration of crypto into 401(k) plans will likely require future coordination between the SEC and the DOL. Until formal regulations or safe harbors are proposed, plan sponsors will likely operate in a period of uncertainty.

While there is high potential for billions of dollars to flow into the crypto ecosystem, the immediate outcome is a complicated legal environment for fund trustees. The coming months will reveal whether the 401(k) market will truly adopt digital assets or if the fear of litigation will keep these trillions of dollars tied to traditional investment options.

Also Read: Tokenized Securities Face Same Rules as Traditional Assets, Says SEC

RIVER, the native asset of a chain-abstraction stablecoin system, fell sharply over the past 24 hours, dropping nearly 29% and is now trading around $49. The decline happened right after the token hit an all-time-high (ATH) of about $87, concluding a month where its value surged nearly 2,000%.

Analysts had already warned about the possible risk of a crash due to low usage and possible manipulated trading, heightened by using leverage options like 80X.

Market watchers attribute this correction to extreme supply concentration and large profit-taking by early investors who exited their positions after a period of rapid growth.

At the time of writing, RIVER is trading at $49.11, with a decline of 29.57% on the day. The total market capitalization has declined by 29.53% in 24 hours, reaching $924.07 million. The 24H volume is $136.22 million with a rise of 70.15%. The circulating supply currently is 19.6 million RIVER, accounting for approximately 19.6% of the 100 million maximum supply.

Institutional funding impact

One of the key factors that contributed to the initial price explosion was a funding round, which drew the attention of institutional investors. Prominent investors like TRON founder Justin Sun and Arthur Hayes’ Maelstrom Fund gave the project a certain degree of legitimacy that helped RIVER boost its market capitalization. 

The funding injected into the project was intended to help the project’s objective of developing a multi-chain stablecoin abstraction layer that would render the need for bridges obsolete when transferring stablecoins between different blockchains.

Major centralization risks

Despite the project’s buzz, on-chain data shows that around 94% of the total RIVER supply is currently held in five individual wallets. This level of concentration of the total supply in the hands of a few individuals means that a handful of investors can create a huge effect on the market price.

Experts in the industry have warned that such a system is fraught with danger and that these ‘whales’ can create massive price crashes at will, leaving retail investors who purchased during the peak with massive losses. The future stability of RIVER is unclear as the market assesses the consequences of this supply distribution.

Although the project is still in the process of building its ecosystem by partnering with other networks such as TRON and Sui, the looming threat of further liquidation by the major holders casts a shadow over the price. Regulatory scrutiny could also increase if this uneven distribution leads to more claims of market manipulation or artificial volume.

The RIVER token is currently experiencing a similar pattern to what most of the other tokens that spiked during the bull market and went downhill once trading euphoria collapsed. While support from industry giants helped drive its 2,000% rise, the 29% fall acts as a reminder of the risks tied to highly centralized assets.

Also Read: Trove Token Crashes 95% After Abandoning Hyperliquid

Researcher Thomas Thiery, known as soispoke, along with other contributors, proposed Fork-Choice Enforced Inclusion Lists (FOCIL, EIP-7805) on Wednesday, aiming to protect Ethereum’s fundamental principles. The mechanism is expected to become a part of the upcoming Hegota upgrade, currently targeted for late 2026.

The adjustment aims to prevent network censorship by allowing multiple validators to work together, ensuring valid transactions are included according to the fork-choice rule. 

By requiring transactions to be processed within a set timeframe, the proposal seeks to limit the growing power of centralized block builders who currently have a lot of control over transaction ordering. Developers are prioritizing this change to keep Ethereum a neutral and decentralized ledger rather than letting it become dominated by a few intermediaries.

A push for fairness

The move toward FOCIL is not just a technical adjustment; it reflects a call for fairness built into Ethereum’s code. The network has had to contend with issues related to the growing influence of specialized builders who are able to selectively decide which transactions to validate in order to maximize their profits or in response to external pressures. 

FOCIL removes this kind of exclusionary power from the centralized bodies and returns it to the thousands of individual validators who help to support the network. This is a reflection of a very important struggle within the environment: the struggle to prevent Ethereum from becoming what it originally set out to replace, the centralized banking systems.

Breaking the builder monopoly

The main feature of EIP-7805 sets a binding requirement for block creation. Currently, a single block builder decides which transactions get included in a block. Under the new proposal, a group of validators will create an inclusion list of pending transactions from the public mempool. 

Thiery’s research paper, “Who Wins Ethereum Block Building Auctions and Why?” shows the urgency of this transition. The study reveals that only three builders produced 80% of all Ethereum blocks between late 2023 and early 2024.

This “chicken-and-egg” problem means dominant builders receive exclusive order flow because they win blocks, and they win blocks because they have exclusive order flow. FOCIL breaks this cycle by introducing a committee-based design where a rotating group of validators get local inclusion lists based on their own view of the mempool.

Cryptographic guarantee of neutrality

If a builder tries to leave out these transactions, the fork-choice rule will require validators to reject that block and select another one that follows the list. This offers a cryptographic guarantee that no one entity can permanently gatekeep the blockchain.

The proposal responds directly to the delay of similar features in the previous Glamsterdam upgrade. Although Glamsterdam, set for the first half of 2026, focuses on Proposer-Builder Separation (ePBS) to promote fairness in the network, developers concluded that FOCIL needed more thorough review before becoming a key feature. 

Future protocol resilience

By separating censorship resistance from block production, Ethereum can continue to grow with builders without compromising its credibility. For users, this means better assurance that their transactions won’t be unjustly blocked or delayed by institutional competitors or centralized intermediaries. For the wider industry, it sets an example for protocol-level resistance against the “cartelization” of block building, ensuring that the network’s rules stay clear and fair.

Adding FOCIL as the primary feature for Hegota shows the dedication to the blockchain’s core principles. As the scale and resource requirements for the node operators grow, the risk of centralization becomes more prominent. Through this move, Ethereum can maintain its position to build a system that is open to all, irrespective of the changes in the regulatory or economic landscape.

Also Read: Ethereum Stakers Wait 61 Days for 2.8% Yield: Why Demand Is Rising

Fidelity Investments announced on Wednesday that it will launch its own stablecoin, the Fidelity Digital Dollar, or FIDD. The token will be accessible to institutional and retail investors in the coming weeks and will maintain a 1:1 peg with the U.S. dollar using cash reserves and short-term U.S. Treasuries.

With this launch, Fidelity is aiming to use its large existing infrastructure to compete directly with established players like Tether, Circle, and Ripple during a time of rapid regulatory changes in the United States.

Regulatory compliance and framework

As per a report, the rollout follows the passage of the Genius Act, a federal law that created an official U.S. regulatory framework for digital dollars. FIDD is based on the Ethereum blockchain and is intended to be a high-efficiency settlement layer for Fidelity’s trading and wealth management activities.

Mike O’Reilly, President of Fidelity Digital Assets, said that as digital asset adoption continues to grow, the company saw the stablecoin launch as the logical next step for the market and its clients. The launch aims to create a compliant, easy-to-use environment for around-the-clock liquidity and global payments.

Vertical integration advantage 

A key advantage of Fidelity in the stablecoin market is its vertical integration as a traditional financial giant. While the market leaders Tether and Circle are primarily issuers and rely on third-party partners for banking and custody, Fidelity operates its own federally chartered national trust bank.

This enables the firm to act as the issuer, custodian, and exchange simultaneously. By managing the entire financial framework internally, Fidelity reduces counterparty risk often linked with stablecoins, providing a “closed-loop” system that may attract conservative institutional investors who have previously steered clear of the fragmented sector.

Market competition and testing

The launch of FIDD comes nearly a year after reports indicated Fidelity was testing a stablecoin. The current market is very competitive. Tether-issued USDT still leads with about 60% market share. Circle comes in at second place with USDC having approximately 23%, followed by others in a relatively small margin.

Recently, Tether has launched its USAT stablecoin. While Fidelity uses its own bank for safety, Tether’s move attempts to neutralize its “offshore” reputation by submitting to the GENIUS Act and moving its primary reserve management to U.S.-regulated firms.

The long-term effects of FIDD’s launch could lead to the easing of traditional capital markets. By moving dollars onto a blockchain, Fidelity hopes to improve efficiency in its various wealth management platforms since digital transfers tend to be cheaper and faster than traditional networks like ACH.

Future market outlook

O’Reilly noted that many firms use stablecoins as the settlement method on crypto platforms because they offer liquidity for providers and firms year-round at a low cost. Additionally, Fidelity’s announcement hinted that the company might manage reserves for stablecoins issued by other firms, which could position it as the behind-the-scenes infrastructure for the industry.

As the industry waits for the outcome of future legislation, such as the Clarity Act, the success of FIDD will likely depend on whether Fidelity can transfer its trillions of dollars in managed assets to this new digital platform. The company already has extensive knowledge of managing reserves, and a large customer base gives it a competitive edge.

Also Read: USDC Stablecoin Is Not a Rival to Visa and Mastercard: Circle CEO at Davos

In a market that is ‘now or never,’ Ethereum (ETH) investors are doing something unexpected. They are waiting. As of today, the Ethereum validator entry queue has reached 3.53 million ETH, creating a 61-day bottleneck that is in contrast to the exit queue of under 40 ETH. This huge imbalance indicates a surge in institutional and retail demand to lock up capital, even as staking yields have compressed to a low of 2.83%.

By choosing a two-month waiting period over immediate liquidity, investors appear to be signaling a shift in Ethereum’s market role. ETH is increasingly being viewed as a long-term investment rather than just a speculative asset for short-term trading. The desire for stability is outweighing the demand for high immediate returns.

Surge in demand despite low yields

The entry queue has risen sharply over the last 30 days, even with a limit of 256 ETH per epoch in place to control validator movement. Current data shows that 30.02% of the total ETH supply, roughly 36.4 million tokens, is now staked. This represents over $118 billion and sets a new record for the network.

This strong commitment remains steady, even though the staking APR has reached all-time lows. It shows that investors are prioritizing the network’s security and their long-term positions rather than short-term returns.

Evolution of ETH

In the past, staking offered higher yields of almost 6% and shorter entry times. However, as the network has developed, institutional investors and major exchange-traded product issuers have become the main drivers of this growth. 

For example, companies like BitMine have increased their assets, now owning over 4.2 million ETH tokens. The proposed Grayscale Ethereum Staking ETF has also helped bring “native yield” and attention into traditional financial systems. This change follows important technical upgrades, such as the Fusaka upgrade.

Introduction of DVT

Ethereum co-founder Vitalik Buterin has proposed integrating native Distributed Validator Technology (DVT) directly into the protocol to support network security and decentralization. This proposal aims to simplify the current complexities of DVT, allowing stakers to split a single validator across multiple independent nodes to eliminate single points of failure and reduce slashing risks. 

For the millions of ETH currently waiting in the entry queue, such an upgrade could provide a more resilient infrastructure, making it safer for the growing wave of institutions and stakers to lock up their capital long-term.

Impact on market dynamics

At the time of writing, Ethereum is trading at $3,003, reflecting a gain of 1.31% over 24 hours. The total market capitalization stands at approximately $363.5 billion. The circulating supply currently is 120.69 million ETH, accounting for 100% of the current total supply. The current queue situation has major effects on Ethereum’s market dynamics:

• Lower Sell Pressure: A nearly empty exit queue shows that current stakers are not selling their holdings immediately. This contrasts with earlier periods of congestion and demonstrates strong confidence in the asset’s future value.

• Demand Over Yield: Investors’ readiness to wait almost two months for a 2.8% return confirms that Ethereum staking is increasingly seen as a safe option. 

• Supply Impact: With nearly one-third of the total supply locked up, the amount of liquid ETH available on exchanges continues to shrink. This could increase the effect of any future demand spikes on market prices.

Ethereum stakers are willing to wait almost two months for a 2.8% yield as the network builds a native yield system accepted by global capital markets. While Ethereum’s price has remained sensitive to wider market sentiment and leverage, the underlying on-chain data shows a strong and growing ecosystem where long-term capital is opting to stay locked in the consensus layer rather than seeking to exit.

Also Read: Vitalik Calls for “Garbage Collection” to Prevent Ethereum Bloat

The Tron network is experiencing a surge in active users, reaching 4.59 million on Tuesday, i.e., a 36% increase from the previous month. As the network continues to dominate stablecoin settlement, its token TRX fails to show any significant movement in the market.

Yet as count rises, the TRON (TRX) token price remains largely unmoved. At the time of writing TRX is trading at $0.2947, reflecting a decline of 0.42% over 24 hours. The total market capitalization stands at $27.91 billion and the circulating supply currently is 84.71 billion TRX.

For investors, the divergence is becoming impossible to ignore: Tron adoption is accelerating, but the token is failing to capture it.

Stablecoin dominance drives activity–not TRX demand

Meanwhile, the growth in active accounts is mainly due to Tron’s strong position in the stablecoin market and its focus on real-world use. By prioritizing low fees and speed instead of speculative hype, the network has attracted a steady user base. This trend is expected to keep going as the network adds more features for high-volume financial services.

The main reason for this user increase is Tron hosting over $82 billion UDT in supply. This accounts for more than 98% of the stablecoin volume on the network, making Tron a key settlement layer for USDT. The network’s integration with the Base network in December 2025 improved its cross-chain capabilities. This allows the TRX token to connect with Coinbase’s Layer 2 ecosystem.

Price Analysis: high usage, low value capture

The latest 4-hour TRX/USDT chart shows that token is continuing to compress inside a descending wedge. This indicates that TRX is experiencing selling pressure despite stable network fundame.

At the time of writing TRX is trading near $0.2928, having failed multiple times to reclaim the $0.30–$0.31 resistance zone since January 24.  Each bounce has been met with lower highs, while support has gradually shifted down toward the $0.29 area, confirming a short-term downtrend.

Volume has also declined steadily during this compression phase, indicating waning speculative participation even as on-chain usage rises. Moreover, onchain data shows no corresponding increase in spot accumulation.

Momentum indicators remain weak. The Relative Strength Index (RSI) is at 36.3, below the neutral 50 level and approaching oversold territory, signaling that bearish momentum still dominates. 

Most fees on Tron are paid via bandwidth and energy credits, not through direct TRX spending, which limits fee-driven buy pressure even as daily transactions exceed 10 million.

AI and technical roadmap

The overall impact of this user growth is shown in the network’s revenue, which has recently surpassed that of other major blockchains. The 2026 roadmap includes the Java-tron v4.8.1 upgrade to improve EVM compatibility and a project focused on integrating artificial intelligence into DeFi and NFTs. These upgrades aim to attract more developers and boost on-chain use.

Also Read: River Token Jumps Nearly 2000% in January: Will the Rally Hold?

Digital asset firm Tether launched USA₮ today, a stablecoin regulated by the federal government and designed for the U.S. market. Issued through Anchorage Digital Bank, N.A., the token is the first to operate under the federal GENIUS Act framework established in July 2025.

As per the official announcement, the stablecoin aims to provide domestic institutions with a dollar-backed asset that meets strict national oversight standards while using established financial infrastructure like Cantor Fitzgerald for reserve custody.

Tether Announces the Launch of USA₮, the Federally Regulated, Dollar-Backed Stablecoin, Made in America 🇺🇲🚀

Read more: https://t.co/rIMQTQ7ipX

— Tether (@tether) January 27, 2026

Market availability and Infrastructure

This launch follows a preliminary design announcement made late last year, signaling a change in how stablecoins connect with the American banking system. USA₮ is now available to U.S. users via major platforms like Bybit, Crypto.com, Kraken, OKX, and Moonpay.

CEO Bo Hines, who previously served as the Executive Director of the White House Crypto Council, joined Tether in September and is leading the project. He said that the project focuses on stability and responsible governance to ensure American leadership in financial innovation.

Shift to federal oversight

While Tether’s global token, USD₮, is the most widely adopted stablecoin around the world, it has often operated outside the direct oversight of U.S. federal regulators. Meanwhile, USA₮ is designed to meet bank-grade compliance requirements and offers on-chain transparency through a nationally chartered bank.

Paolo Ardoino, CEO of Tether, noted that while USD₮ has shown the utility of digital dollars globally for over a decade, USA₮ extends that mission by providing a product specifically tailored to the American regulatory environment.

Global economic implications

The launch has wider implications for the future of the U.S. dollar in a digital-first global economy. As countries compete to shape the future of money, integrating a major stablecoin issuer into a federally recognized framework could set a new standard for trust and transparency.

Anchorage Digital Bank has developed infrastructure to manage large-scale transactions while maintaining integrated risk management, which may encourage more traditional financial entities to adopt blockchain-based settlements.

Legitimizing Tether’s role

USA₮ represents a fundamental rebranding for a company that has spent a decade navigating the American financial system. While Tether has been established with USDT, it did so by operating offshore, often drawing heavy scrutiny from U.S. regulators regarding its reserve transparency. In contrast, USA₮ is a calculated move toward transparency and federal legitimacy.

This approach is further solidified by the focus on “dollar innovation.” This launch places USA₮ under the direct supervision of the Office of the Comptroller of the Currency (OCC). It’s no longer just an offshore claim, but a bank-issued asset subject to the same compliance standards as traditional national banks.

The debut of USA₮ represents Tether’s effort to shift from being a global industry participant to a key player in the domestic regulated financial system. Although USA₮ is not legal tender and is not issued or guaranteed by the U.S. government, its compliance with the GENIUS Act serves as a foundation for the next generation of American commerce.

Also Read: Tether To Fund INHOPE For Fight Against Online Child Abuse