Cointelegraph

Betterment has warned users to disregard a crypto promotion message that circulated on Friday, describing it as an unauthorized notification that was sent through a third-party system.

The incident surfaced after multiple users reported receiving a message that appeared to promote a limited-time cryptocurrency offer. Screenshots shared on Reddit showed the notification urging recipients to send as much as $10,000 worth of Bitcoin (BTC) or Ether (ETH) to specified wallet addresses, with a promise that the funds would be “tripled” and returned within hours.

The message, framed as an official promotion celebrating Betterment’s “best-performing year,” closely mirrored common crypto scam tactics, including time pressure, unusually high guaranteed returns and direct wallet transfers. Some users said similar language also appeared in email messages.

Related: 'Hundreds' of EVM wallets drained in mysterious attack: ZachXBT

Betterment disavows crypto promotion message

In a statement posted on X, Betterment confirmed that the message was not legitimate. The company said the notification was sent without authorization via a third-party system used for marketing and other customer communications.

“Please note that this is not a real offer and should be disregarded,” Betterment wrote, adding that it apologized for any confusion caused by the message.

Betterment’s response on X. Source: Betterment

Betterment is a US-based digital investing platform best known as a robo-advisor that automatically builds and manages diversified portfolios using low-cost ETFs, along with cash management and retirement accounts.

While it is not a crypto exchange, Betterment does offer crypto investing as a linked product, allowing users to gain exposure to assets like Bitcoin and Ethereum through its platform via an integrated crypto service.

Related: Crypto hack counts fall, but supply chain attacks reshape threat landscape

Crypto phishing losses fell 83% in 2025

Crypto phishing attacks linked to wallet drainers dropped sharply in 2025, with total losses falling to $83.85 million, down 83% from nearly $494 million a year earlier, according to a report from Scam Sniffer. The number of victims also declined to about 106,000, a 68% drop year over year, as overall market activity cooled.

However, phishing losses still tracked crypto market cycles, peaking during periods of heightened onchain activity, particularly in the third quarter when Ethereum posted its strongest rally and losses reached $31 million.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Spot Bitcoin exchange-traded funds (ETFs) started 2026 with sharp outflows, shedding a combined $681 million over the first full trading week of the year.

According to data from SoSoValue, spot Bitcoin (BTC) ETFs recorded four consecutive days of net outflows between Tuesday and Friday, outweighing inflows earlier in the week. The largest daily redemption occurred on Wednesday, when products shed $486 million, followed by $398.9 million on Thursday and $249.9 million on Friday.

The reversal came after 2026 opened with brief strength. On Jan. 2, Bitcoin ETFs attracted $471.1 million, followed by another $697.2 million inflow on Jan. 5.

Spot Ether (ETH) ETFs followed a similar trajectory. On a weekly basis, spot Ether ETFs posted net outflows of approximately $68.6 million, ending the week with total net assets of around $18.7 billion.

Spot Bitcoin ETFs weekly flows. Source: SoSoValue

Macro uncertainty drives risk-off shift

Vincent Liu, chief investment officer at trading firm Kronos Research, pointed to macro uncertainty as the primary driver behind the pullback. He told Cointelegraph that shifting expectations around monetary policy and global risk were weighing on positioning.

“With Q1 rate cuts looking less likely and geopolitical risks rising, macro conditions have turned risk-off,” Liu said. “As traders wait for clearer positive signals, reduced risk appetite is spilling into crypto.”

Liu added that investors are now closely watching upcoming US Consumer Price Index data and Federal Reserve guidance for clues on when easing could resume. “Until clearer signals emerge, positioning is likely to remain cautious,” he added.

Morgan Stanley files for Bitcoin, Solana ETFs

Despite volatile market conditions, Morgan Stanley has filed with the US Securities and Exchange Commission to launch two spot crypto ETFs, one tracking Bitcoin and the other Solana (SOL).

The move came a day after the second-largest US bank, Bank of America, began allowing advisers in its wealth management businesses to recommend exposure to four Bitcoin ETFs.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Pump.fun co-founder Alon Cohen said the Solana-based memecoin launchpad is overhauling its creator fee system after concluding that the existing model may have skewed incentives.

“Creator fees need change,” Cohen wrote in a Friday post on X, acknowledging that the Dynamic Fees V1 system, introduced several months ago, succeeded in driving activity but failed to produce sustainable market behavior.

According to Cohen, the mechanism encouraged low-risk token creation at the expense of high-risk trading, which he described as “dangerous” because traders are the core source of liquidity and volume on the platform.

Cohen said the initial rollout showed early promise. Within weeks, new creators began launching tokens and livestreaming, fueling what he described as some of the strongest onchain conditions of 2025. Pump.fun’s bonding curve volumes more than doubled during that period, according to charts shared alongside his post. However, the surge proved short-lived and exposed structural weaknesses.

Pump.fun’s bonding curve volume. Source: Alon Cohen

Related: Pump.fun private sale investors send over $160M to exchanges

Creator fees encouraged token minting over liquidity

While creator fees helped serious project tokens with active teams, Cohen said they did little to change the behavior of the average memecoin deployer. In many cases, fees became a blunt incentive to mint tokens rather than build liquid markets.

“The platform so far fails at providing a good user experience here, oftentimes requiring users to CTO [Community Takeover] coins, trust other people to fulfill their promises, etc,” he wrote.

In a series of posts on X, Pump.fun outlined the first phase of changes. The platform is introducing creator fee sharing, allowing creators and CTO administrators to allocate specific percentages of fees to up to 10 wallets after launch. Teams will also be able to transfer coin ownership and revoke update authority.

Cohen said that no one from the Pump.fun team will accept fees under any circumstances, describing the feature as “for trenchers.” Fees remain claimable at any time by recipients and are not forfeited if left unclaimed.

Related: Pump.fun Revenue Hits 2025 Low as Memecoin Hype Fades

Pump.fun becomes dominant Solana memecoin launchpad

Pump.fun has emerged as the leading launchpad for Solana memecoins by combining near-frictionless token creation with a standardized route to liquidity.

The platform briefly lost ground in July when rival LetsBonk overtook it on volume and revenue, but momentum quickly shifted back. Pump.fun reinforced its position through aggressive PUMP token buybacks and a revamped creator payout program under Project Ascend. By late summer, trackers again showed Pump.fun controlling around 75%–80% of Solana’s memecoin launches.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

An anti-decentralized finance group is reportedly running advertisements on Fox News encouraging the public to pressure their Senators into passing crypto market structure legislation that excludes DeFi provisions perceived to be threatening to the banking industry.

According to two screenshots shared Friday on X by Crypto in America host Eleanor Terrett, the Investors For Transparency members wrote: "Tell Your Senator: Pass Crypto Legislation Without DeFi Provisions,” sharing a hotline number to contact their local Senators.

“Don’t Let DeFi Stall Innovation,” another snippet of the ad said, which appears to echo concerns from banking lobbyists over the CLARITY Act permitting stablecoin issuers to offer interest-bearing products that could be disguised as bank-like deposits and potentially draw trillions of dollars from the traditional banking system.

Advertisement from the Investors For Transparency group. Source: Eleanor Terrett

The US Treasury estimated in April that $6.6 trillion worth of traditional banking deposits could flow out of the banking system if stablecoins see widespread adoption.

It comes as the Senate Banking Committee published an official notice for its CLARITY Act markup scheduled for this Thursday, Jan. 15, at 10:00am Eastern Time.

Crypto industry annoyed with anti-DeFi efforts

The banking lobby efforts have frustrated several members of the crypto community, including Uniswap Labs CEO Hayden Adams, who said it was both “ironic and unsurprising” that the Investors For Transparency organization is campaigning against DeFi while not revealing who they are and who they’re funded by.

Advertisement from the Investors For Transparency group. Source: Eleanor Terrett

Fears crypto market structure legislation may not pass this year 

Several Democratic lawmakers are also reportedly pushing for conflict-of-interest safeguards in the crypto market structure bill.

There have also been fears that the 2026 US midterm elections may slow the momentum of the CLARITY Act bill, with TD Cowen’s Washington Research Group reporting the bill may not pass Congress until 2027, with final implementation potentially pushed to 2029. 

Related: A16z raises $15B, says crypto a 'key' to America winning next 100 years

Senate Banking Committee Chair Tim Scott, however, appears confident that it can be passed much sooner and “deliver real results for the American people.”

Source: US Senate Banking Committee

Magazine: Davinci Jeremie bought Bitcoin at $1… but $100K BTC doesn’t excite him

Tech-focused venture capital firm Andreessen “a16z” Horowitz said it raised over $15 billion to invest in companies and technologies it sees as critical to secure America’s future and win the next century — and crypto remains a key part of that mission.

In a post to X Friday, a16z co-founder Ben Horowitz, acknowledged that China and other competitors have caught up to the US in recent decades and that America must continue to innovate to preserve its technological, economic, and military dominance:

“As the American leader in Venture Capital, the fate of new technology in the United States rests partly on our shoulders. Our mission is ensuring that America wins the next 100 years of technology. That starts with winning the key architectures of the future – AI and crypto.”

Source: a16z

Horowitz said alignment between the US government and the private sector is crucial to defend American interests, warning that failure could cost the country its dominance:

“If America fails to win technologically, it will lose economically, militarily, geopolitically, and culturally. And the entire world will lose as well.”

“We have already seen the beginnings of this in both AI and crypto.” Horowitz said, warning that swift action is necessary to reverse the trend before it’s too late.

A16z’s Crypto fund left out, but crypto investing still possible

The funds will be distributed across several verticals, including Growth ($6.75 billion), Apps and Infrastructure ($1.7 billion each), American Dynamism fund ($1.18 billion), and Bio and Healthcare ($700 million).

Another $3 billion will be used for other venture strategies.

Related: Bitcoin trader maintains $76K BTC price target as 2026 comeback fizzles

While the a16z Crypto fund didn’t receive funds in this round, many of the crypto companies it has invested in are part of its Growth fund, which spans multiple industries.

Babylon secures $15 million from a16z

In a separate investment, a16z put $15 million into Bitcoin staking and lending protocol Babylon on Wednesday in an effort to support the development of the Bitcoin decentralized finance ecosystem and make the cryptocurrency a more productive asset.

Magazine: Davinci Jeremie bought Bitcoin at $1… but $100K BTC doesn’t excite him

An industry leader said stablecoin-powered cards are shaping up to be one of the biggest crypto themes of 2026, which seek to provide the benefits of blockchain while keeping the payment experience familiar for consumers.

“This is one of the big themes of 2026: crypto becomes enmeshed more deeply into how payments flow through the global economy,“ Haseeb Qureshi, a managing partner at crypto-focused venture capital firm Dragonfly, posted to X Friday.

“Stablecoin cards are growing like crazy, everywhere in the world,” the VC added after stablecoin startup Rain raised $250 million in a funding round that pushed its valuation to nearly $2 billion.

The huge funding round came as Rain increased its active card base 30-fold and its annualized payment volume by nearly 40 times in 2025, making it one of the fastest-growing fintech companies globally. 

The platform supports major stablecoins, including Tether (USDT) and USDC (USDC), across several blockchain networks, including Ethereum, Solana, Tron, and Stellar.

Rain is part of a new wave of stablecoin startups integrating blockchain into payment systems for faster settlement, lower costs, and greater global reach while keeping the experience seamless for consumers, Qureshi noted:

“They don't even know that it's crypto under the hood. All they know is that all of a sudden, they can pay people and buy stuff in dollars, any time, anywhere, and it all ‘just works.’”

It comes as Bloomberg Intelligence predicted on Thursday that stablecoin payment flows would increase at an 81% Compounded Annual Growth Rate to $56.6 trillion by 2030.

Source: Tom Dunleavy

Stablecoin cards may face limited use in developed markets

Not everyone is convinced that stablecoin payments will challenge traditional cards in developed countries, however, with Better Tomorrow Ventures GP, Sheel Mohnot, stating that stablecoin merchant acceptance lacks a captive audience, exclusivity, and killer incentives to make a meaningful change.

Related: Banks must upgrade their blockchain infrastructure

Pantera Capital investor Mason Nystrom opposed Mohnot’s view, highlighting that stablecoin payments provide merchants with instant payouts, immediate settlement, and chargeback protection:

“Stablecoin rails are coming for the entire fintech stack. Some incumbents will adopt, other[s] will be wholesale replaced. Stablecoin checkout will be massive.”

Stablecoin regulation is moving forward

The passing of the GENIUS Act in the US appeared to boost regulatory momentum late last year, with Canada and the UK renewing efforts to implement stablecoin frameworks in 2026 or the near future.

Institutional adoption is also ramping up, with remittance platform Western Union set to launch a stablecoin settlement system on the Solana blockchain in the first half of 2026 alongside a stablecoin card to enable consumer spending in emerging markets.

Magazine: One metric shows crypto is now in a bear market: Carl ‘The Moon’

The start of 2026 saw Bitcoin and select altcoins rally back toward their weekly range highs, and the current situation across markets highlights improving investor sentiment and trading volumes. Since Jan. 1, Bitcoin continued to show improvement with tightening range consolidation clearly seen in its daily higher lows and higher highs, leading to the weekly high at $94,800.

BTC/USDT 7-day liquidation heatmap lookback. Source: Hyblock

7-day liquidation heatmap data from Hyblock shows long liquidation clusters between $89,000 to $87,000 and short positions sitting at the weekly range high near $95,000. 

From a technical trader’s point of view, the start of year rally pulled the price above the 20-day moving average, which is currently converging with the 50-day moving average. After BTC failed to hold $95,000 and liquidate the short positions in that zone, it appears that some traders cut their positions to take profit in anticipation of a lower support retest of the 20-MA at $89,400.

BTC/USDT (Binance) 1-day chart. Source: TradingView.com

If the current trend were to extend and volume permitting, over the coming days, another attack on the $95,000 level could occur. Such a move could lead to short covering and liquidations, allowing bulls to exploit a clear gap in the volume profile of the BTC/USDT (Binance) pair, setting Bitcoin up for a 13% rally to $101,500. 

As shown in the chart below, the bulk of this week’s intra-day Bitcoin price action was driven by traders using perpetual futures to trigger liquidations. Note how a near $1.1 billion surge in futures buy volume took place as BTC rallied to $94,800 on Jan. 5, and $100 million in shorts were liquidated in the BTC/USDT pair at Binance, according to data from TRDR.io. 

Example of perps traders driving Bitcoin price action. Source: TRDR.io

As detailed earlier, current liquidation heatmap data and orderbook structure suggest that a similar event could occur again if traders press BTC price to $94,000. 

The Nasdaq Stock Exchange and the Chicago Mercantile Exchange (CME) Group joined forces to unify their crypto indexes, rebranding the Nasdaq Crypto Index (NCI) as the Nasdaq-CME Crypto Index.

The NCI benchmark index includes Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), Chainlink (LINK), Cardano (ADA) and Avalanche (AVAX), spokespersons for Nasdaq confirmed to Cointelegraph.

Sean Wasserman, head of index product management at Nasdaq, said in Friday’s announcement:

“We see the index-based approach as the direction investors are heading, beyond just Bitcoin. That’s similar to what we’ve seen in other asset classes, where you have indexes that are representative of the broader market.”

The price of the NCI benchmark index at the time of writing. Source: Yahoo Finance

The announcement comes amid an institutional rush into crypto, digital assets, and blockchain technology, as traditional financial infrastructure integrates digital rails to prepare for an internet-first economy.

Related: Morgan Stanley to launch digital asset wallet as part of crypto product expansion

The market is shifting to crypto index products in response to growing complexity

Crypto index exchange-traded funds (ETFs), which track the prices of a basket of cryptocurrencies, will drive the next wave of crypto adoption, according to Will Peck, head of digital assets at asset manager WisdomTree.

Crypto index products remove the technical complexity of analyzing a broad range of digital assets, including tokens across different sectors, making them ideal for passive investors seeking crypto exposure, Peck told Cointelegraph.

There were 29.66 million cryptocurrencies listed on CoinMarketCap at time of writing, with more tokens listed daily.

The number of listed tokens on CoinMarketCap exploded in 2024 and continues to increase. Source: CoinMarketCap

Matt Hougan, chief investment officer at Bitwise, shares the same view and said he was “most excited” for the growth of crypto index products in 2026.

The demand for these investment vehicles will be driven by investors seeking small, passive crypto allocations who cannot commit to deep analysis on the constantly growing sector, Hougan said.

“The market is getting more complex, and the use cases are multiplying,” Hougan said in December

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

Colombia’s tax authority, DIAN, has introduced a mandatory reporting regime for crypto service providers, requiring exchanges and intermediaries to collect and submit user and transaction data as part of its oversight of the digital asset sector.

The rules were set out in Resolution 000240, issued on Dec. 24, which adds a crypto reporting regime aligned with OECD-developed international standards, including the Crypto-Asset Reporting Framework (CARF).

According to the new rules, crypto exchanges, custodians and other service providers must report identifying information and transaction data for “reportable” users, enabling the automatic exchange of that information with foreign tax authorities.

The resolution also sets out due diligence and valuation requirements, including fair-market valuation methods, and establishes penalties for providers that fail to comply.

The reporting obligations are directed at service providers and do not directly impose reporting duties on individual users.

The resolution takes effect upon publication, requiring affected platforms to update their compliance and reporting systems before the first reporting cycles.

Countries move to close crypto tax reporting gaps

As crypto moves further into the financial mainstream, governments worldwide are tightening tax rules to close reporting gaps and strengthen oversight of digital asset activity.

One major change is the rollout of CARF, an OECD-backed global standard that requires crypto service providers to collect and automatically report user and transaction data to tax authorities, with initial reporting expected in 2026 and the first automatic exchanges of information anticipated in 2027.

In a November update, the OECD said 48 jurisdictions have already enacted, or are close to enforcing, laws mandating CARF-related data collection, while another 27 jurisdictions are expected to begin sharing information in 2028.

The Organisation for Economic Co-operation and Development, or OECD, is an international organization that develops policy standards on taxation, economic cooperation and financial transparency.

In the United States, lawmakers may pass the CLARITY Act in 2026, a sweeping regulatory framework designed to define how digital assets are classified, taxed and issued.

While many countries are pressing ahead with clearer crypto tax rules, others remain more cautious.

On Thursday, Indian financial authorities again raised concerns that cryptocurrency transactions could hinder tax enforcement, warning lawmakers of risks tied to crypto activity during a parliamentary finance committee meeting.

Magazine: Davinci Jeremie bought Bitcoin at $1… but $100K BTC doesn’t excite him

A number of Democratic lawmakers in the US Senate are reportedly pushing for conflict-of-interest guardrails in a crypto market structure bill under consideration.

According to a Thursday report from Punchbowl News, Senate Democrats including Adam Schiff and Ruben Gallego demanded safeguards in the Republican-led Responsible Financial Innovation Act (RFIA) which would affect how US regulatory agencies and the government handles digital assets. The lawmakers reportedly pushed for provisions prohibiting public officials, including US President Donald Trump, from profiting from any connections to crypto companies.

“It is a red line,” Gallego told Punchbowl on the ethics guardrails. “They need to get it right, or they’re not going to have enough votes to pass this.” 

The market structure bill, which passed the US House of Representatives as the CLARITY Act, has been under consideration in the Senate since July. Amid debate over provisions such as addressing potential conflicts of interest and decentralized finance, the bill also faced delays from a 43-day government shutdown in October and November.

Drafts of the Responsible Financial Innovation Act made public by the Senate Banking Committee and Senate Agriculture Committee showed that the bill could give the US Commodity Futures Trading Commission (CFTC) more authority in regulating digital assets. However, some experts have speculated that the 2026 midterm elections could draw support from the bill, especially among Democrats.

RFIA’s top supporter to leave Senate in 2027

Wyoming Senator Cynthia Lummis, one of the market structure bill’s earlier supporters and the lawmaker leading the charge for the legislation on the Senate Banking Committee, announced in December that she would not run for reelection in 2026. She will leave the Senate in January 2027.

Source: Cynthia Lummis

Senate Banking Committee Chair Tim Scott said this week that the body would hold a markup on the RFIA on Thursday. As of the time of publication, no markup event was on the committee’s public calendar, or that of the Senate Agriculture Committee.

Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice

For years, major banks treated cryptocurrency primarily as a risk to be contained. That posture is now giving way to a more deliberate form of engagement. Rather than debating crypto’s legitimacy, banks are increasingly deciding how and where to integrate it, from regulated investment products to blockchain-based payment rails.

This shift is on full display in this week’s Crypto Biz. JPMorgan is extending its US dollar deposit token onto new blockchain infrastructure, signaling that tokenized cash is moving closer to production use within global banking. 

Morgan Stanley, meanwhile, is positioning itself to offer exposure to Bitcoin (BTC) and Solana (SOL) through exchange-traded funds (ETFs), potentially bringing crypto investments to millions of wealth management clients. 

Barclays has made its first bet on stablecoin infrastructure, backing settlement rails designed to connect regulated issuers with financial institutions. 

And Bank of America has taken another step toward normalization by allowing advisers to recommend spot Bitcoin ETFs to clients.

Together, these moves suggest the banking sector is no longer content to watch from the sidelines.

JPM Coin heads to the Canton Network

JPMorgan announced plans to issue its US dollar-denominated deposit token, JPM Coin (JPMD), natively on the Canton Network, marking another step by Wall Street toward production-ready blockchain infrastructure.

Digital Asset, the developer of the Canton Network, and Kinexys by JPMorgan will extend JPM Coin from its existing rails onto Canton’s privacy-focused layer-1 blockchain, enabling regulated digital cash to move across interoperable networks.

According to an announcement shared with Cointelegraph, JPM Coin, described as the first bank-issued, US dollar-denominated deposit token for institutional clients, represents a digital claim on JPMorgan’s dollar deposits and is designed to facilitate faster, more secure movement of regulated money on public blockchains.

“This collaboration brings to life the vision of regulated digital cash that can move at the speed of markets,” said Yuval Rooz, co-founder and CEO of Digital Asset.

Morgan Stanley enters crypto ETF race

US investment bank Morgan Stanley is entering the cryptocurrency exchange-traded fund market, with proposed products offering exposure to Bitcoin and Solana, following the strong debut of spot crypto ETFs in the United States.

The bank has filed with the US Securities and Exchange Commission to launch two investment vehicles, the Morgan Stanley Bitcoin Trust and the Morgan Stanley Solana Trust, designed to provide passive investment exposure to the performance of their underlying digital assets.

If approved, the funds could be made available to more than 19 million clients within Morgan Stanley’s wealth management division, significantly expanding access to crypto-linked investment products.

Spot Bitcoin ETFs have ranked among the most successful ETF launches on record, attracting substantial inflows during their first two years of trading. Momentum has continued into the new year, with renewed investor demand driving fresh inflows during the first trading sessions.

The 12 spot US Bitcoin ETFs have amassed more than 1.3 million BTC, valued at nearly $120 billion. Source: Bitbo

Barclays invests in stablecoin infrastructure

London-based banking giant Barclays has made its first investment in a stablecoin-focused company, signaling traditional finance’s growing interest in digital dollar infrastructure.

The bank announced an undisclosed investment in Ubyx, a US-based stablecoin clearing platform that connects regulated issuers with financial institutions to facilitate settlement and interoperability. The move also marks a notable shift for Barclays, which in recent years has publicly emphasized the risks associated with digital assets.

“This investment aligns with Barclays’ approach to explore opportunities based on new forms of digital money, such as stablecoins,” the bank said in a statement.

Ubyx has previously raised $10 million in seed funding, backed by Galaxy and Coinbase. The company was founded by Tony McLaughlin, a former Citibank executive.

Bank of America wealth advisers cleared to recommend Bitcoin ETFs

US investors may soon receive recommendations to buy Bitcoin ETFs from Bank of America’s private bank and Merrill Edge platforms, adding to evidence of Bitcoin’s growing integration into traditional finance.

The bank’s chief investment office has approved coverage of four U.S. spot Bitcoin ETFs, including products offered by Bitwise, Fidelity, BlackRock and Grayscale. Collectively, the funds manage more than $100 billion in Bitcoin assets.

The move comes roughly a month after Bank of America reportedly advised wealth management clients to allocate 1% to 4% of their portfolios to digital assets.

“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate,” Chris Hyzy, chief investment officer at Bank of America Private Bank, told Yahoo. 

Source: Cointelegraph

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The passage of the Digital Asset Market Clarity Act of 2025, also known as the CLARITY market structure bill, hinges on bipartisan support in the United States Senate Banking Committee, according to Alex Thorn, head of research at crypto investment firm Galaxy.

Typically, the Senate needs at least 60 votes to advance legislation, and Republicans need seven to 10 Democrats to vote yes on the CLARITY Act, Thorn said on Friday.

If Republicans can secure four votes from Democrats on the Senate Banking Committee, it is “likely” that all 17 Democratic senators who voted for the GENIUS Act, a stablecoin regulatory framework, will vote with Republicans to advance the market structure bill. Thorn added: 

“Advocates for the market structure bill want to see a similar level of bipartisanship next week. Absent a strong bipartisan showing in the Senate Banking Committee vote, the bill’s odds of passing in 2026 drop dramatically.”

US Senate record on crypto-related legislation. Source: Alex Thorn

The US Congress passing a crypto market structure framework would foster crypto adoption, especially among institutional investors, who may be hesitant to adopt digital asset technology due to unclear regulations and the possibility of a regulatory rollback, Thorn said.

What happens if market structure bill doesn’t pass?

If the CLARITY Act fails to pass in the Senate, the impact on the crypto industry would be “relatively minimal,” Thorn said, adding that industry players have already secured several key policy objectives through the pro-crypto regulatory pivot in the US.

However, short-term investor sentiment will likely be impacted if the bill fails to advance, Thorn said, with the 2026 US midterm elections making it “highly uncertain” that the bill will see a second vote in 2026 if it fails to advance on Jan. 15. 

The balance of power in the United States House of Representatives at time of writing. Source: US House

Investment Bank TD Cowen recently warned that crypto market structure legislation may not pass until 2027, and might take effect in 2029, if Democratic lawmakers manage to stall the vote beyond the midterm elections and regain power in at least one chamber of Congress.

Trump-era regulations that benefited the crypto industry, artificial intelligence and the broader tech industry could be rolled back if Republicans lose control of either chamber in the 2026 midterms, billionaire hedge fund manager Ray Dalio said.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

New York Representative Ritchie Torres, with the backing of more than 30 other Democrats in the House of Representatives, has introduced legislation following a Polymarket user netting $400,000 on a bet related to the removal of then-Venezuelan President Nicolás Maduro. 

In a Friday notice, Torres said he had introduced the Public Integrity in Financial Prediction Markets Act of 2026.

According to the New York representative, the bill would prohibit “federal elected officials, political appointees, Executive Branch employees, and congressional staff from buying, selling, or exchanging prediction market contracts tied to government policy, government action, or political outcomes when they possess material nonpublic information or could reasonably obtain such information through their official duties.”

“The most corrupt corner of Washington, DC may well be the intersection of prediction markets and the federal government — where insider trading and self-dealing are no longer imagined risks but demonstrated dangers,” said Torres. “We ignore this plain-sight corruption at our own peril.”

Source: Ritchie Torres

The bill came less than a week after a Polymarket account placed a $32,000 bet on a contract predicting that Maduro would be removed from power by Jan. 31. US President Donald Trump announced on Saturday that US forces had entered Venezuela and captured Maduro to face criminal charges in New York.

Related: Polymarket user who won $400K on Maduro ouster bet quietly disappears

The bet, which netted the unknown user more than $400,000, raised concerns over insider trading on the platform. In introducing the bill, Torres signaled that allowing an elected official to use platforms like Polymarket or Kalshi could incentivize him to “personally push policies that line his pockets.”

“Just as Donald Trump has been using crypto to enrich himself and his family, there is reason to fear that Trump or his associates could do the same when it comes to prediction markets,” said Torres. “No elected official is elected to profit from elected office.”

Cointelegraph reached out to Polymarket for comment on the bill, but had not received a response at the time of publication.

US Senate to address market structure bill next week

As Torres’ bill is considered in the House, lawmakers in the Senate are expected to hold a markup on digital asset market structure legislation.

The bill, passed as the CLARITY Act in the House in July and called the Responsible Financial Innovation Act in the Senate, is expected to be one of the most comprehensive pieces of legislation affecting the crypto industry by changing the regulatory roles of the Commodity Futures Trading Commission and Securities and Exchange Commission.

Senate Banking Committee Chair Tim Scott said the committee will hold a markup of the market structure bill on Thursday, potentially advancing it to a floor vote.

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Cryptocurrency traders increasingly leaned on automated strategies in 2025 as volatile but largely range-bound markets made directional bets harder to sustain, according to a year-end recap from HTX.

The Seychelles-based exchange, formerly known as Huobi, said the trend was most visible in the growing use of grid-based trading bots on its spot platform. According to HTX, grid trading volume rose 97% year over year in 2025, while capital allocated to grid strategies doubled.

The increase was especially pronounced in stablecoin pairs, where grid trading volume rose 352% year over year, compared with 122% growth in major cryptocurrencies. HTX said the bots were typically used to capture smaller, repeated price swings rather than to bet on sustained market moves.

In grid trading, traders set a price range and let automated orders execute buy and sell orders as the market moves back and forth.

HTX ranks among the world’s 10 largest exchanges by trading volume, liquidity and platform traffic, according to CoinMarketCap.

Source: CoinMarketCap

Coinbase expands use of AI agents across trading tools

While grid trading bots automate execution using fixed rules, AI-powered agents are built to make autonomous decisions, interact through natural language and operate directly onchain. Coinbase has been among the most active crypto exchanges exploring AI agents.

As early as August 2024, CEO Brian Armstrong said Coinbase had tested AI agents, including a transaction in which one automated bot used crypto tokens to interact with another AI system and purchase AI training data, a process he described as “tokens buying tokens.”

In October of the same year, Coinbase rolled out “Based Agent,” a tool that lets users create AI agents linked to crypto wallets for automated onchain activity, including trading, swaps and staking.

In October 2025 Coinbase introduced Payments MCP, a tool designed to let AI agents interact directly with onchain financial services without requiring API keys. The system allows large language models to access wallets, onramps and stablecoin payments through natural language prompts using the Model Context Protocol.

Source: Coinbase Developer Platform

Interest in AI-managed trading appears to be rising, with an April CoinGecko survey showing that about 36% of respondents would allow AI agents to manage most of their crypto holdings.

Still, some experts have warned about the risks. Aaron Ratcliff, attributions lead at blockchain intelligence company Merkle Science, told Cointelegraph that giving AI agents access to crypto wallets adds a new layer of trust to systems designed to be trustless, shifting much of the security responsibility back to users.

Magazine: One metric shows crypto is now in a bear market: Carl ‘The Moon’

Cryptocurrency markets experienced a limited recovery this week as investor liquidity gradually returned after the holidays.

Bitcoin (BTC) topped a weekly high of $94,458 on Monday, before declining to about $90,937 at the time of writing on Friday.

US spot Bitcoin exchange-traded fund (ETF) demand saw a sharp reversal after $1.1 billion in inflows on the first two trading days of the new year. The ETFs have since logged three consecutive days of outflows, with a cumulative $398 million sold on Thursday, according to Farside Investors data.

In the broader cryptocurrency space, concerns arose over the future of privacy-preserving token Zcash (ZEC) after the main company behind the protocol, the Electric Coin Company, decided to separate from Bootstrap, the nonprofit that supports its development.

Bitcoin ETF flows, USD, million. Source: Farside Investors

2025 crypto bear market “repricing” year for institutional capital

The steep decline in altcoins over the past year may reflect a broader reassessment of which blockchain networks are likely to attract long-term capital, as institutional investors begin a gradual, multiyear entry into the market, analysts said.

Excluding Bitcoin, 2025 turned out to be a bear market for the wider cryptocurrency market. Decentralized finance (DeFi) tokens fell 67%, while cryptocurrencies associated with smart contract blockchains delivered a negative average return of 66%, according to blockchain data shared by Jamie Coutts, chief crypto analyst at Real Vision.

The past year’s poor performance was a “repricing” of the leading crypto projects as institutional capital was seeking to gain more exposure, Coutts wrote in a Wednesday X post.

“Repricing the highest quality (network adoption, fundamentally sound) protocols/L1s, just as the multi-year onboarding of institutional capital commences,” he said.

Smart contract platforms and defi tokens, historical annual performance. Source: Jamie Coutts

Coutts is the latest analyst to highlight an ongoing repricing in how cryptocurrencies are valued as maturing digital asset investors seek exposure to tokens powering protocols with organic usage and revenue, not just general altcoins.

Looking at the past year, Solana was the leading blockchain by fees, with $585 million generated, while second was Tron with $576 million in revenue, according to crypto intelligence platform Nansen.

Blockchain networks by key metrics, including active addresses and fees, one-year chart. Source: Nansen

Institutional and large investors tend to gravitate to the five leading cryptocurrencies, according to Nicolai Sondergaard, research analyst at Nansen.

“Solana ETFs are still seeing inflows, but the same can't fully be said onchain. ETH, on the other hand, has seen some players rotate from BTC,” the analyst told Cointelegraph, adding:

“Many expect that with liquidity coming back, big players prepare by accumulating, and this seems to be accurate based on onchain and offchain data.”

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Zcash backer Bootstrap says split due to clash over nonprofit, Zashi

Bootstrap, the nonprofit that supports the privacy-focused cryptocurrency Zcash, said a recent governance dispute that led to the departure of key board members stemmed from the legal limits nonprofits face when seeking outside investment.

The comments follow the decision by the Electric Coin Company, the main development team behind Zcash, to separate from Bootstrap and form a new company. ECC cited concerns over what it described as “malicious governance actions,” Cointelegraph reported Thursday.

In its official response, Bootstrap said the board members engaged in discussions regarding “external investment and alternative structures to privatize” Zashi, the self-custodial crypto wallet built for private Zcash transactions.

The board discussed “external investment and alternative structures to privatize Zashi, while working with legal counsel to ensure any path forward would comply with U.S. nonprofit law, remain consistent with the long-term mission of Zcash, and not jeopardize the broader Zcash community,” according to an announcement shared by board member Zaki Manian on Thursday.

Zashi was developed by ECC and launched on mobile platforms in early 2024. Its source code is publicly available, reflecting Zcash’s open-source model, under which no single entity owns or controls the protocol.

Bootstrap board members’ statement. Source: Weareallzashi.org

Bootstrap said the core disagreement stems from its fiduciary and legal obligations as a nonprofit organization registered under section 501(c)(3) of the US tax code.

The proposed deal could bring “new vulnerabilities for politically-motivated attacks on Zcash,” including a potential lawsuit from donors leading to unwinding the transactions, meaning that Zashi would be “transferred back to ECC,” the statement says.

Bootstrap added that these factors “jeopardize the entire Zcash ecosystem” and such transactions must be done “carefully” to ensure these assets will “serve the public good,” and not be “captured for private benefit.”

Zcash’s code is also public and open-source, and no single company or entity owns the protocol.

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Fake MetaMask 2FA security checks lure users into sharing recovery phrases

Crypto investors are being targeted by a new phishing campaign that impersonates MetaMask and tricks users into handing over their wallet recovery phrases, according to the blockchain security firm SlowMist.

The attackers are impersonating a two-factor authentication (2FA) security verification flow, which redirects users to fraudulent domains through fake security warnings that request users’ seed phrases.

When a user shares a wallet recovery phrase, the funds from the wallet are stolen, warned SlowMist's chief security officer, 23pds, in a Monday X post.

This new wave of scams serves as a reminder that decentralized wallet protocols would never ask users for their secret recovery phrase, which enables anyone to take control of the wallet.

Source: 23pds

The phishing email redirects users to fake domains impersonating MetaMask, urging them to enable 2FA within a short period, claiming they may lose access to key wallet features.

The final step of the fraudulent process asks users for their 12-word seed phrase to complete the “security setup.”

Source: 23pds

Crypto phishing scams involve hackers sharing fraudulent links with victims to steal sensitive information, such as crypto wallet private keys.

Phishing scams have been a long-standing issue in the cryptocurrency space, but a decreasing number of incidents signals that investors are becoming wiser to this threat. 

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Aave founder pitches bigger future for DeFi lending giant

Aave founder and CEO Stani Kulechov outlined a broader strategic vision for the protocol following a contentious governance vote that rejected a proposal to transfer control of Aave’s brand assets and intellectual property to its decentralized autonomous organization (DAO).

The failed vote prompted renewed debate within the Aave community over the protocol’s long-term direction and governance structure, an issue Kulechov addressed.

In a post published Friday on the Aave governance forum, Kulechov argued that the protocol must evolve beyond its core decentralized finance (DeFi) lending business to pursue opportunities in real-world assets (RWAs), institutional lending and consumer-facing financial products. 

He described the community as being “at a crossroads,” noting that DeFi’s future growth trajectory remains uncertain without broader market expansion.

Significantly, Kulechov said Aave Labs plans to distribute non-protocol revenue to Aave (AAVE) tokenholders, a move that could expand how the token captures value beyond governance participation. He added that Aave Labs plans to introduce a new governance proposal to address intellectual property ownership and brand-related rights, following community pushback against the earlier initiative.

Kulechov’s post appears aimed at refocusing the community away from short-term governance disputes and toward a more cohesive long-term strategy. He highlighted RWAs in particular, describing the sector as a potential $500 trillion opportunity based on the estimated value of global financial assets.

Aave is one of the largest DeFi protocols, with its total value locked exceeding $45 billion in October, according to industry data. 

Source: Kolten

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Perp DEXs almost triple volume in 2025 as onchain derivatives mature

Perpetuals decentralized exchanges are closing 2025 with cumulative trading volume reaching $12.09 trillion, up from $4.1 trillion at the start of the year. 

DefiLlama data shows that about $7.9 trillion of this lifetime total volume was generated in 2025. This means that 65% of all perp DEX trading volume occurred in a single calendar year. This concentration highlights how rapidly onchain derivatives scaled in 2025. 

In December alone, perpetuals trading volume reached $1 trillion, carrying momentum that started in October, when monthly volumes first reached $1 trillion. 

The increase reflects a sharp acceleration in onchain derivatives usage in the last 12 months, as perpetuals DEXs absorbed a growing share of leveraged crypto trading activity. 

Perpetuals DEX volume in 2025. Source: DefiLlama

Perpetuals DEXs began to emerge around 2021, with dYdX and Perpetual Protocol widely credited as among the earliest platforms to offer decentralized perpetual futures onchain.

The sector’s growth accelerated sharply in 2023, when the emergence of Hyperliquid marked a turning point.

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DeFi market overview

According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.

The Render (RENDER) token rose 56% as the biggest gainer of the past week, followed by the Internet of Things (IoT) provider Jasmy Corporation’s JasmyCoin (JASMY), up over 52% during the past week.

Total value locked in DeFi. Source: DefiLlama

Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.

Bitcoin’s long-term holders (LTHs) went through one of the most aggressive distribution phases on record in 2025. While the scale of selling rattled the market, onchain data analysis suggests that this pressure may be fading, possibly outlining the next bullish period for BTC price.

Key takeaways:

Long-term holders distributed roughly $300 billion in BTC in 2025, marking a historic supply reset.

Heavy LTH selling has occurred near cycle peaks or during structural transitions, not at the start of new downtrends.

With selling pressure stalling, the next phase may hinge on how early the long-term holder supply stabilizes.

A historic unwind backed Bitcoin’s 2025 volatility

The amount of Bitcoin (BTC) that had remained unmoved for at least two years moved onchain sharply in 2025. Nearly $300 billion worth of Bitcoin that had been dormant for over a year re-entered circulation. The 30 days between November 15 and December 14 2025, marked one of the heaviest long-term holder (LTH) distribution periods in more than five years.

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Since 2019, sharp declines in long-term holder (LTH) supply have rarely appeared in isolation. They have surfaced during phases when Bitcoin’s trend was already under strain, either approaching exhaustion or undergoing a structural shift.

In 2018, the LTH supply fell from 13 million BTC to 12 million BTC, with selling intensity peaking when the 30-day distribution reached 1.08 million BTC in December. At that point, Bitcoin had already spent months declining. Price bottomed near $3,500 in February 2019, before stabilizing and rallying to $11,000 by mid-year, illustrating how heavy LTH selling could precede recovery rather than mark its end.

The 2020–2021 cycle unfolded differently. LTH supply dropped from 13.7 million BTC to 11.65 million BTC, while Bitcoin climbed from $14,000 to $61,000. The 30-day distribution peak of 891,000 BTC did not immediately halt the rally.

Instead, selling persisted as prices rose, gradually eroding upside momentum before the cycle ultimately rolled over, a reminder that LTH distribution can accompany expansion before defining its limits.

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During the 2024–2025 bull run, supply declined from 15.8 million BTC to 14.5 million BTC, with the 30-day distribution peaking at 758,000 BTC. Price topped slightly earlier in March, and both metrics then moved sideways through Q2–Q3, reinforcing a familiar pattern: price strength tends to fade as long-term holders step up distribution.

The final phase in mid-to-late 2025 proved more abrupt. LTH supply briefly recovered to 15.4 million BTC in June, before collapsing to 13.5 million BTC by December, the sharpest decline on record.

Price weakness appeared in October, but the most selling followed later, with the largest-ever 30-day distribution peak of 1.14 million BTC in November. That sequence suggests capitulation rather than orderly profit-taking, marking a reset rather than a continuation of the prior trend.

Related: Bitcoin RSI hints at $105K BTC price rebound as bull signals multiply

What the pause in selling may be signaling

Since December, the LTH supply has stopped falling, currently around $13.6 million, while Bitcoin has entered a sideways range. Additional confirmation comes from the long-term/short-term holder supply ratio. 

Every time this ratio has fallen to –0.5 or below, Bitcoin has either entered a base-building phase or rallied to new highs within weeks. In December, the ratio dropped to roughly -0.53, after which price volatility compressed and momentum stalled, consistent with a reset rather than trend continuation.

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Thus, this combination, aggressive distribution followed by supply stabilization, has historically marked transition phases rather than trend continuation. If the trend repeats, the consolidation through Q1to Q2 could act as a base-building period, with any sustained rally more likely to emerge later, potentially into Q3. 

Related: BlackRock adds $900M BTC as Bitcoin long-term selling falls to 2017 lows

Key points:

Bitcoin bulls will have to successfully defend the moving averages to increase the possibility of a break above $95,000.

Most major altcoins have turned down from their overhead resistance levels, indicating that the bears are active at higher levels.

Buyers are attempting to maintain Bitcoin (BTC) above the $90,000 level, but the bears continue to exert pressure. Material Indicators cofounder Keith Alan said in a post on X that BTC could slump to the $87,500 to $89,000 support zone. An even lower target was projected by trader Roman, who expects a drop to the $76,000 level.

However, CryptoQuant CEO Ki Young Ju said in a post on X that BTC is unlikely to see a 50% crash from its all-time high, similar to previous bear markets. He anticipates BTC to remain “sideways for the next few months.”

Crypto market data daily view. Source: TradingView

On a slightly longer-term perspective, there are positive signs for the bulls. BTC has averaged 95% gains in the year following a down year, according to Smarter Web Company Bitcoin strategy head Jesse Myers. If history repeats, 2026 could be a positive year for BTC, following the 6.33% drop in 2025.

Could BTC and the major altcoins rebound off their support levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC has pulled back to the moving averages, indicating that the bears are aggressively defending the $94,789 level.

BTC/USDT daily chart. Source: Cointelegraph/TradingView

Both moving averages are flattening out, and the relative strength index (RSI) is at the midpoint, indicating a balance between supply and demand. The advantage will tilt in favor of the bulls if they push the Bitcoin price above the $94,789 resistance. The BTC/USDT pair could then skyrocket to the psychological level of $100,000.

Instead, if the price skids below the moving averages, it signals that the pair may remain inside the $84,000 to $94,789 range for a few more days. Sellers will be back in the driver’s seat on a close below $84,000.

Ether price prediction

Ether (ETH) remains inside the symmetrical triangle pattern, indicating uncertainty about the next directional move.

ETH/USDT daily chart. Source: Cointelegraph/TradingView

If the Ether price turns up from the moving averages and breaks above the resistance line, it suggests that the bulls have overpowered the bears. The ETH/USDT pair could surge to $3,659 and later to $4,000.

Conversely, if the price continues lower and breaks below the support line, it signals that the advantage has tilted in favor of the bears. The pair could then plunge to $2,623 and subsequently to $2,111.

XRP price prediction

Sellers successfully defended the downtrend line and have pulled XRP (XRP) to the moving averages.

XRP/USDT daily chart. Source: Cointelegraph/TradingView

The upsloping 20-day exponential moving average ($2.04) and the RSI in the positive zone signal that buyers have an edge. If the price rebounds off the moving averages with strength, the possibility of a break above the downtrend line increases. If that happens, the XRP/USDT pair could rally toward $2.70, signaling a trend change.

Alternatively, a drop below the moving averages suggests that the XRP price could remain inside the descending channel pattern for a while longer.

BNB price prediction

BNB’s (BNB) pullback from the $928 level is finding support at the moving averages, indicating that the bulls are active at lower levels.

BNB/USDT daily chart. Source: Cointelegraph/TradingView

The bulls will attempt to thrust the BNB price above the $928 level, completing a bullish ascending triangle pattern. If they do that, the BNB/USDT pair could rally toward the pattern target of $1,066.

Contrary to this assumption, if the price breaks below the moving averages, it suggests a lack of demand at higher levels. The pair could drop to the uptrend line and then to the $790 support.

Solana price prediction

Solana (SOL) rebounded off the moving averages on Thursday, indicating that the dips are being viewed as a buying opportunity. 

SOL/USDT daily chart. Source: Cointelegraph/TradingView

The bulls will attempt to strengthen their position by pushing the Solana price above the $147 level. If they manage to do that, the SOL/USDT pair could surge toward $172. That suggests the corrective phase may be over.

This positive view will be invalidated in the near term if the price turns down from the current level or the overhead resistance and breaks below the moving averages. The pair may then tumble to $117.

Dogecoin price prediction

Dogecoin (DOGE) turned down from the $0.16 resistance on Tuesday and has reached the moving averages.

DOGE/USDT daily chart. Source: Cointelegraph/TradingView

The 20-day EMA ($0.14) is turning up gradually, and the RSI is just above the midpoint, indicating a slight edge to the buyers. A close above the $0.16 level suggests that the market has rejected the break below the $0.13 support. The DOGE/USDT pair may then climb to $0.19.

On the contrary, a break below the moving averages indicates that the Dogecoin price could remain range-bound between $0.12 and $0.16 for some time. The next leg of the downtrend could begin on a close below $0.12.

Cardano price prediction

Cardano (ADA) has pulled back to the moving averages, which is expected to act as strong support.

ADA/USDT daily chart. Source: Cointelegraph/TradingView

If the Cardano price rebounds off the moving averages, the likelihood of a rally to the breakdown level of $0.50 increases. Sellers are expected to aggressively defend the $0.50 level, as a break above it indicates a potential trend change.

On the downside, a break below the $0.37 support suggests that the bears continue to exert pressure. The ADA/USDT pair could then descend to the $0.33 level, which is likely to attract buyers.

Bitcoin Cash price prediction

Bitcoin Cash (BCH) turned up from the 20-day EMA ($613) on Thursday, indicating demand at lower levels.

BCH/USDT daily chart. Source: Cointelegraph/TradingView

The upsloping moving averages and the RSI in the positive territory indicate that the bulls have the upper hand. Buyers will strive to push the Bitcoin Cash price above the $670 level. If they succeed, the BCH/USDT pair could surge toward the stiff overhead resistance at $720.

The first sign of weakness will be a close below the moving averages. That suggests the breakout above $631 may have been a bull trap. The pair may then collapse toward $518.

Chainlink price prediction

Chainlink (LINK) is witnessing a tough battle between the bulls and the bears near the moving averages.

LINK/USDT daily chart. Source: Cointelegraph/TradingView

If the price rebounds off the moving averages with strength, the bulls will attempt to propel the LINK/USDT pair above the $14.98 resistance. If they can pull it off, the Chainlink price could rally toward $17.66.

On the other hand, if the price skids below the moving averages, it suggests that the pair could swing inside the $11.61 to $14.98 range for a few more days. Sellers will have to sink the price below the $10.94 support to seize control.

Hyperliquid price prediction

Hyperliquid (HYPE) turned down from the 50-day simple moving average ($28.48) on Wednesday and slipped below the 20-day EMA ($26.21) on Thursday.

HYPE/USDT daily chart. Source: Cointelegraph/TradingView

The next support on the downside is at the uptrend line. If the price turns up sharply from the uptrend line, it suggests that the bulls are buying on dips. The HYPE/USDT pair could then reach the overhead resistance at $29.37.

Contrarily, if the price continues lower and breaks below the uptrend line, it signals that the bulls have given up. The Hyperliquid price could then slump toward the $22.19 level, where the buyers are expected to step in.

BNY, a financial services company that traces its roots back to one of the oldest financial institutions in the United States, launched tokenized bank deposits for its institutional clients on Friday.

Tokenized bank deposits are onchain cash balances or depositor claims against a bank. BNY will issue the tokenized bank deposits on an in-house permissioned blockchain network, according to an announcement from the company.

The differences between permissioned and permissionless blockchain networks. Source: Cointelegraph

The onchain deposits will be used to support collateral and margin requirements, with additional functionality in the future, BNY said, adding:

“As global financial markets shift towards an always-on operating model, institutions are seeking faster and more efficient ways to move assets — with greater settlement certainty, transparency, lower friction and capability to unlock liquidity.”

The move by BNY is the latest blockchain-related development from a major financial institution, as banks and established players in traditional finance overhaul legacy financial infrastructure to meet the demands of the digital age.

Related: Tokenization will disrupt finance faster than digital disrupted media: Crypto exec

SEC proposes a shift to always-on capital markets

In September 2025, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) released a joint statement proposing a shift to 24/7 capital markets.

“Further expanding trading hours could better align US markets with the evolving reality of a global, always-on economy,” the statement said.

The legacy financial system relies on a complex web of intermediaries and does not operate nights, weekends or certain holidays, leaving investors and traders stuck in positions when the market is closed.

Joint statement from CFTC and SEC proposing always-on capital markets. Source: SEC

Blockchain technology removes intermediaries and functions around the clock, reducing settlement times, transaction costs and friction in cross-border commerce.

Real-world asset tokenization (RWA), the process of representing physical or traditional assets on a blockchain, is one of the tools that enables 24/7 capital markets across asset classes, including traditionally illiquid assets like real estate and collectibles.

The SEC and CFTC acknowledged that 24/7 onchain markets and tokenization are more “viable” for certain asset classes and not others, adding that a “one-size-fits-all” approach to always-on markets may not work.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story

Vitalik Buterin, co-founder of the Ethereum blockchain, has doubled down on his support of Tornado Cash developer Roman Storm, who could be retried on two felony charges sometime this year.

In a Friday X post, Buterin warned his followers about privacy from both the public and governments, adding that he had used Tornado Cash to make transactions in furtherance of this principle. The Ethereum co-founder has supported Storm since before his criminal trial, saying that developing software for others to use for privacy was not a crime. 

“I have personally used Roman's software to make transactions — to buy software for my own use, without my name ending up in corporate databases, to support charities that protect valuable human rights, and other goals,” said Buterin. “Roman has been a principled and steadfast developer of these principles. Unlike some others, who use these causes as an excuse to make profit and write software that has flashy advertising but is broken under the hood [...]”

Source: Vitalik Buterin

Storm was indicted in August 2023 for running an unlicensed money transmitter business and engaging in a conspiracy to commit money laundering and a conspiracy to violate sanctions. He was found guilty of the first charge in August, but a jury deadlocked on the other two.

As of Friday, it was uncertain whether US prosecutors would retry Storm on the two felony charges or when he would be sentenced for running an unlicensed money transmitter business. He has repeatedly claimed he was innocent and drew support from many in the crypto industry, who claim “writing code is not a crime.“

Presidential intervention in Storm’s case?

In November, following the verdict in Storm’s criminal trial, a group of crypto companies and advocacy groups called on US President Donald Trump to step in and “urge the Department of Justice to dismiss all open charges” against the Tornado Cash developer.

Trump had not publicly commented on Storm’s case as of Friday, nor had he suggested that he planned to issue a presidential pardon. Polymarket’s event contract on potential Trump pardons before 2027 showed several crypto industry figures including former FTX CEO Sam Bankman-Fried and Terraform Labs co-founder Do Kwon, but not Storm.

Storm’s lawyers and prosecutors are scheduled to return to court for a conference to discuss the case on Jan. 22.

Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice

In June 2013, the lens through which US citizens looked at their government was dramatically changed; it was now a PRISM.

PRISM was the program that enabled the National Security Agency (NSA), with some help from the FBI, to obtain unthinkable quantities of data from tech giants like Google, Facebook and Microsoft, among others.

Despite previous statements that the NSA did not collect data “directly” from tech companies, American whistleblower Edward Snowden revealed that they did, and that it was just one portion of a larger picture showing that the US was in the mass surveillance game.

With the veil lifted, change was inevitable. We saw major legislative reform with the USA FREEDOM Act passing in 2015, the rise of digital privacy advocacy groups and courts ruling that the NSA’s phone data surveillance was illegal.  

After Snowden, the data flood only accelerated

Practically speaking, though, what has really changed?

“Everything has changed, and nothing has changed,” renowned security technologist Bruce Schneier told Cointelegraph’s Not Dead Yet show. “Certainly, the surveillance is still happening.”  

Source: Cointelegraph

Schneier, a New York Times bestselling author and fellow at Harvard’s Berkman Klein Center for Internet & Society, didn’t stop there with his warnings. 

The scale of the data problem is seldom understood, Schneider says. Not only is there exponentially more data collected than in the lead-up to the Snowden leaks in 2013, but it is also markedly more granular.

In December 2025, investigative journalists at French newspaper Le Monde managed to track spies, special forces and those close to the French president with mobile phone ad data purchased from a major broker.

“In the case of our policeman, we can follow him to a famous sports store, to the recycling center, to the gas station… And all the way home,” the journalists wrote.

The quantity and quality of modern data allow mass surveillance at a level never seen before, and surveillance capitalism is foundational to the status quo. But now, Schneier warns, parallel to the rise of mass surveillance is the new threat of “bulk spying.”

“The fact that AI can go voice-to-text and summarize means we are entering the world of bulk spying in addition to bulk surveillance […] I will guarantee you, the US, China, Russia, [and] other countries, are doing this.”

The NSA collected data from the biggest tech monopolies of the time, and Schneier is concerned that history is repeating itself, this time with AI companies.

“All of the horrors of social media are coming back in a way that’s even worse with AI,” he said.

A bleak, dystopian future may not be set in stone, however. Privacy is trending, both inside and outside of crypto, in a way it never has before. The myriad invasions of privacy once evoked apathy, then malaise. Now it verges on outrage and action. The thousands of concessions made may have finally reached critical mass, and true change could be within reach.

Schneier told The Register, “I just can't imagine that we will have this level of mass surveillance, either corporate or government, in 50 years. I think we'll view these business practices like we view sweatshops today: as evidence of our less ethical past selves.”