Cryptopolitan

Elon Musk’s artificial intelligence business xAI is under pressure from regulators on many continents after its chatbot Grok created AI-generated, inappropriate pictures of actual people, despite the fact that the company claims significant user growth and concludes a major merger with SpaceX.

Last month, Grok flooded the X social media platform with AI-altered images of real individuals after users requested them. The episode sparked outrage worldwide and triggered investigations by governments and regulators.

Although X announced restrictions that stopped Grok’s own account on the platform from creating such images, Reuters confirmed earlier this month that the chatbot itself still generates them when users ask it to.

Regulators in three regions open investigations

The impact has spread to three major jurisdictions. The European Union opened a formal investigation against Grok after estimations revealed that it had created millions of deepfake photos in only a few days. The EU might levy substantial fines.

The Japanese government has requested improvements from X and submitted written inquiries, citing concerns over the generation of inappropriate images.

In the United States, California has gone one step further and issued a cease-and-desist order to xAI, ordering the business to stop producing such content.

Despite the controversy, Grok’s numbers tell a different story in terms of audience growth. The chatbot’s share of the U.S. market jumped to 17.8% last month, up from 14% in December and just 1.9% in January, according to data from research firm Apptopia. That puts Grok in third place among chatbots used in the United States, behind OpenAI’s ChatGPT in first and Google Gemini in second.

ChatGPT’s U.S. market share fell drastically to 52.9% last month, down from 80.9% in January of the previous year. Gemini moved in the other direction, increasing its share to 29.4% from 17.3% throughout the same time.

Grok made considerable progress on a worldwide scale. According to Similarweb data, the chatbot, up from 271.2 million the previous month, surpassed its Chinese competitor DeepSeek.

Grok earned 314 million global web views in January. Source: SimilarWeb

These findings come against the background of phenomenal industry-wide expansion, with Apptopia statistics suggesting a 152% year-over-year growth rate in the chatbot market.

Grok’s success may be ascribed in large part to its deep integration with the X platform. The chatbot appears in the app’s navigation bar and is available in several tiers of X’s premium membership plans, guaranteeing constant exposure to the platform’s user base.

The growth matters financially for xAI, which has been burning through cash to build the computing infrastructure needed to compete with better-funded rivals in Silicon Valley. The company launched roughly three years ago.

SpaceX acquisition creates a $1.25 trillion entity

Earlier this month, SpaceX, Musk’s rocket and satellite firm, bought xAI for $250 billion. CNBC said that the merged corporation is worth $1.25 trillion, making it the biggest merger of its kind. The deal was structured as a share exchange, which is intended to safeguard SpaceX from any obligations associated with xAI.

The acquisition takes place as SpaceX prepares for its first public offering, but xAI’s ongoing troubles hamper the process.

On Wednesday, Musk also made management changes at xAI after several co-founders left the company. Of the original 12 co-founders, only half remain. Musk, speaking on X, said the company had been “reorganized” to “improve the speed of execution,” adding that this “required parting ways with some people.” He also said, “We are hiring aggressively.”

Musk defined Grok’s mission at a 2025 event as creating a “maximally truth-seeking AI,” a declared goal that now stands in stark contrast to the ethical problems the business is being required to face.

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SBI Holdings has announced the acquisition of Coinhako, a major cryptocurrency platform based in Singapore. The move is in line with the company’s plan to expand its digital footprint across Asia.

The Japanese financial group said it will secure a majority stake through a capital injection and share purchases from existing shareholders. The deal is expected to signal a push towards building a stronger crypto infrastructure across the region.

Aside from strengthening its market positions, SBI would be looking to combine traditional finance experience with blockchain-based services. The company believes the move will support growing demand for tokenized assets and stablecoins across the growing financial markets in Asia.

SBI Holdings plans regional growth move with Coinhako acquisition

According to its statement, SBI Holdings’ Singaporean subsidiary, SBI Ventures Asset, is expected to sign a memorandum of understanding (MoU) with Holdbuild Pte, the parent company in charge of Coinhako. The transaction will still have to undergo regulatory approval and a final agreement on deal structure.

However, once everything is completed, Coinhako will become a subsidiary of SBI Holdings.

Analysts also see the acquisition as more than a financial investment. The deal is expected to support the broader digital strategy of SBI Holdings, which will see digital assets linked to mainstream financial services.

Consequently, the move could help position Singapore as a key regional base for the group’s tokenization ambitions. Yoshitaka Kitao, the Chairman, President, and CEO of SBI Holdings, discussed the long-term ambition behind the acquisition and how it could help all the parties involved.

“In this era of increasing tokenization, the importance of a global infrastructure for digital assets has never been greater,” he said. “Welcoming Coinhako into the SBI Group as a consolidated subsidiary is more than just an investment in a platform. We are confident that integrating Coinhako into the digital asset ecosystem that the SBI Group has built will expand the global corridor for digital assets and become a major driving force in realizing next-generation finance, including tokenized stocks and stablecoins.”

In addition, SBI Holdings wants the infrastructure of Coinhako to support institutional and retail investors looking for seamless access to digital assets. This way, the company will build stronger links between the traditional financial systems and blockchain-based products.

The combined platform is also expected to support new services that are tied to tokenized securities and stablecoins. The leadership of Coinhako also sees the partnership as a move that would help its growth.

Speaking about the acquisition, Yushio Liu, co-founder and CEO of Coinhako, said that the collaboration with SBI Holdings will help the platform’s mission to become a premier digital asset hub.

He added that the ambitions of Coinhako align with those of SBI Holdings, which is expected to create a positive environment for both firms. Liu added that Coinhako will use the resources provided by SBI to expand institutional infrastructure to meet the growing demand for its services across Singapore and other parts of Asia.

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A user on X has been inadvertently exposed as the mastermind behind a darknet operation named “FreeCity.” The exposure comes as a result of the user’s inability to let some frozen funds go. However, the user has denied the allegations made by onchain sleuths like ZachXBT. 

The alleged admin handling FreeCity has been outed as @sexinfochina. That user had publicly complained about how Near Intents, a project linked to the NEAR protocol, had frozen about 10 BTC they had sent to a generated address as part of a cross-chain transaction. 

The user called it “centralized theft,” cosplaying as a “mandatory compliance review” as no timeline or explanation was provided, as they were kicked out of the project’s Telegram group for voicing their questions.  

The altercation that outed FreeCity’s admin

In response to the post, ZachXBT shared a comment in which he accused “Sexinfochina” of being the operator behind FreeCity, a Chinese-language underground marketplace known to operate across the dark Web, clearness and Telegram channels. 

According to reports, FreeCity is behind a wide range of illegal activities, including the sale of stolen data, phishing tools, malware, money laundering, human trafficking, hitman services, drugs, prostitution, and many more. 

Zach also provided a screenshot he claims proves the FreeCity admin Telegram account had also made a complaint in the Near Intents Telegram support channel about the same frozen transaction details Sexinfochina had shared. 

The accused user denied the allegations

In response to Zach’s onslaught, Sexinfochina took to the comment section to clarify they are “NOT the operator of ‘FreeCity’ or ANY darknet market.” 

Conveniently left out the fact that you are a cyber criminal that operates the Chinese darknet market ‘FreeCity’

You openly advertise illicit services such as human trafficking / hitman openly on Telegram.

You also have knowingly laundered 5+ hacks for DPRK as their OTC.

I… https://t.co/KpGbwQXmuv pic.twitter.com/g9SpufjGIi

— ZachXBT (@zachxbt) February 14, 2026

“That tg account doesn’t belong to me,” Sexinfochina wrote. “I’m a trader whose 10 BTC is frozen by @near_intents under shady “compliance review.” You’re smearing me to deflect from THEIR theft. This is libel, not journalism. false accusations damaging reputation = criminal offense. Retract or lawyer up. Crypto community: Demand proof before believing smears.” 

Sexinfochina went as far as accusing Zach of being the “real bad guy” because he helps “out the big shots behind the scenes, pretending to uphold blockchain justice all along.” 

“So your money also comes from the crypto community? Can you guarantee that all your upstream funds are completely legal?” Sexinfochina asked. 

Zach responded by sharing more screenshots of how the FreeCity market owner’s Telegram account was complaining in the Near Intents TG channel about the exact same transactions.

“As more proof here’s an old DM before your last X account was banned,” Zach wrote, attaching old images of when Sexinfochina messaged him via a now-suspended X account after getting their account frozen. 

In the screenshot, they referred to themselves as a “normal user of Binance” and tried to appeal to Zach’s sense of justice, asking if he could help the “victims fight for justice.”

Screenshot of the text from a known alias of the alleged admin of the FreeCity dark marketplace. Source: @zachxbt via X/Twitter.

Sexinfochina remained active in the comment section after that, seemingly unbothered by being outed as a threat actor by a prominent online sleuth. 

Who is Sexinfochina, the alleged admin behind FreeCity? 

A thread from a user identified as Narcass3, whose bio claims he hunts DPRK “for fun,” backed up Zach’s claims that Sexinfochina is in fact the admin of the Chinese darknet market FreeCity. 

“Behind the handle is Xiao He, a Chinese national who is a prolific launderer of DPRK stolen funds, supporter of DPRK IT Worker ops, and pusher of fake viagra,” Narcass3 wrote. 

According to the user, Xiao He most likely hails from North West China and graduated from Southwest University of China with a Bachelor’s Degree in Electrical Engineering. He reportedly currently shuttles between Dubai and China and pretends to offer legitimate crypto OTC services.

Narcass3 also linked Xiao He to various social media handles, including ‘Victor Marshal’, ‘hexiao33’, ‘camonanesi’, ‘Komonado’, and ‘chaindeler.’

“Xiao He has for years laundered millions in crypto for DPRK APTs across the board and IT Workers. In the past, we saw him work closely with a group of IT Workers supporting Moonstone Sleet,” Narcass3 wrote. 

He reportedly operates several companies that all claim to be focused on freelancing or software development: ZenDao Tech, FWork[.]io, DeamChain, and Deliminal Limited. 

Several of the listed companies have IT workers who are closely affiliated with them. Meanwhile, Xiao He also engages in some freelance work on the side. 

Narcass3 even accused Xiao He of running a fake sex drug operation via his company “Kuhu Pharmacy” which seems to mainly be present on Telegram. He believes that most of Sexinfochina’s disparate activity all connects together because “he has shit opsec or just doesn’t care.”

Narcass3 also confirmed that despite all the shady acts he is involved in, Xiao He is unable to let go of his frozen funds and is fond of reaching out to customer support in a sloppy attempt to unfreeze them.

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A San Francisco man has lost more than $200,000 to crypto scammers after pooling the entire funds in a crypto investment that turned out to be a scam. The crypto scam was revealed by the man’s wife, who claimed that months after paying off $80,000 in debt, the family’s financial life had plunged into chaos.

According to the San Francisco man’s wife, the family’s financial progress has unraveled, a story that left personal finance experts Dave Ramsey and Jade Warshaw completely stunned.

The woman claimed that her husband secretly took out nearly $200,000 in high-interest personal loans and poured all the funds into several cryptocurrency investments that eventually vanished.

In her testimony, the man’s wife, Ana, claimed they had followed Ramsey’s debt plan since 2022, and it had been working for them.

San Francisco man loses funds to crypto scammers

In her statement, Ana mentioned that her family had stuck to their plan and been paying off their debts before her husband made this costly mistake. She said they were only left with their mortgage when her husband started talking to his friends about digital assets and how to make profits from investments in the assets.

The San Francisco native was said to have made small investments in crypto and saw small returns, which gave him the confidence to go all in. According to the wife, the San Francisco native told her about the smaller investments and returns, but failed to tell her about the bigger move.

“He took out a big loan of $200,000,” Ana said. “I was in total panic when he told me that.”

She claimed that the man said the money was used to invest in different digital assets, including XRP and the Trump coin, through a platform known as Pionex. Aside from the $200,000, the wife mentioned that the San Francisco man also invested $50,000 belonging to his mother.

Ana said she learned of what happened after all the money was already gone. The couple now owes about $200,000. Their monthly payment total is about $5,000, interest rates are about 23%, and the household income is around $10,000 every month.

The wife noted that their home is worth around $700,000, with about $400,000 still owed. The woman mentioned that her husband blamed the financial loss on a divine punishment because she failed to involve herself when he was making the decision.

In another related event, a family’s finances have gone down the drain after a man mistakenly pressed “sell short” on his crypto investment.

According to the woman, her husband borrowed $250,000 against their family home and put everything into crypto investments without her knowledge. When she found out, she asked him to sell immediately, and he promised that he would sell it and return the money to their account within days.

Instead, he refused and kept it in the investments.

Days later, the wife said the funds were not in their bank account and pressed him for answers. It was then that the husband confessed that he had not sold the crypto and had accidentally pressed the sell short button instead of the sell button, which caused all of his position to be liquidated.

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Bytedance, the parent company of video streaming platform TikTok, was hit with a cease-and-desist letter from Disney over its new Seedance 2.0 generative AI tool. In the details of the order, Disney claimed that the Chinese company infringed on its creative property to train the new model.

In the letter, which was first reviewed by Axios, Disney accused ByteDance of manipulating its copyrighted Disney characters as if they were available for use in the public domain.

The letter further claims that Seedance 2.0 includes a “pirated library” full of Disney assets, listing some of its biggest franchises from Star Wars to Marvel superhero movies. The generative artificial intelligence model was released this week by ByteDance and has triggered a wave of criticism from people from all corners.

Why did Disney serve ByteDance with a cease-and-desist order?

In its letter, Disney claimed that ByteDance is choosing to hijack Disney’s character despite several well-publicized objections on the company’s part.

According to Disney’s attorney, David Singer of Jenner & Block LLC, ByteDance is reproducing, distributing, and creating derivative works featuring those characters. “ByteDance’s virtual smash-and-grab of Disney’s IP is willful, pervasive, and totally unacceptable,” he added.

The letter also mentioned that Disney believes that this violation is just the beginning, considering the fact that Seedance has only been available for a few days.

In addition to Disney properties, the tool has also been used to generate videos using “The Lord of the Rings” assets and the likenesses of A-list Hollywood stars such as Will Smith, Brad Pitt, and Tom Cruise. The same stance was echoed in the statements released by SAG-AFTRA and the MPA, with both bodies speaking against Seedance 2.0 since it dropped.

“SAG-AFTRA stands with the studios in condemning the blatant infringement enabled by ByteDance’s new A.I. video model Seedance 2.0,” a spokesperson for the actors’ union said in a statement.

The spokesperson mentioned that the infringement includes the unauthorized use of members’ voices and likenesses, highlighting that it is a practice that is unacceptable and blocks real human talents from making a living with their abilities.

“Seedance 2.0 disregards law, ethics, industry standards, and basic principles of consent,” the spokesperson added.

Disney opens the door to artificial intelligence

In its response to Seedance 2.0, the Motion Picture Association slammed Seedance 2.0 on Thursday in response to an AI-generated fight scene between Brad Pitt and Tom Cruise. The association accused the company of disregarding copyright laws and called on it to desist from any infringement activities.

“In a single day, the Chinese AI service Seedance 2.0 has engaged in unauthorized use of U.S. copyrighted works on a massive scale,” Charles Rivkin, chairman and CEO of the MPA, said in their statement.

“By launching a service that operates without meaningful safeguards against infringement, ByteDance is disregarding well-established copyright law that protects the rights of creators and underpins millions of American jobs. ByteDance should immediately cease its infringing activity,” Rivkin added.

ByteDance is not the first AI firm to receive a cease-and-desist order from Disney. In December 2025, Disney sent a letter to Google, accusing the company of copyright infringement on a massive scale.

Disney argued that Google is using its dominance in generative AI to commercially exploit and distribute infringing images and videos featuring Disney-owned characters. This came at a time when the company also sent the same letters to Meta and Character.AI.

Disney also previously announced that it had joined NBCUniversal and Warner Bros. Discovery in litigation against Midjourney and MiniMax.

At the same time, Disney has embraced AI, taking a $1 billion stake in OpenAI. In addition, the company has also announced plans to license its characters to OpenAI’s Sora video platform, with the company noting that the characters will be available for ChatGPT’s image generation tools.

Sora-generated videos will also stream on Disney+, and OpenAI will also help power new features across its service.

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Prices in the United States climbed more slowly than predicted in January, providing Americans with a brief respite after years of high prices, but a top Federal Reserve official warns the fight against inflation is far from over.

The Bureau of Labor Statistics said on February 13 that consumer prices climbed 2.4% in the 12 months through January 2026. That is down from 2.7% in December and came in below what most economists had predicted, around 2.5%. When you strip out food and energy, two categories that tend to swing wildly, prices were up 2.5% from a year ago.

On a monthly basis, overall prices gained 0.2%, while that core measure rose 0.3%. Both figures either matched or came in under forecasts.

Services inflation remains a stubborn problem

The numbers come at a time when the broader economy is holding up. Employers added a healthy number of jobs in January, and the unemployment rate remained near 4.3%, steady, but not indicating any major trouble in the job market. Housing costs remained one of the bigger forces pushing inflation higher, while food prices were up 2.9% over the past year.

In an interview with Yahoo Finance, Chicago Fed President Austan Goolsbee discussed the study on the same day it was released. He added there were some encouraging indicators, notably in goods pricing, which did not appear to be adversely affected by tariffs.

However, he was keen to stress that inflation in services is a whole other issue. “Services inflation is not tamed in the CPI,” Goolsbee stated, describing it as a “danger sign.”

He added that once service costs increase, they tend to stay high, and unlike products, they are not subject to the same trade constraints that tariffs bring. He noted that he will be keenly monitoring future Producer Price Index data on services for further information.

Fed in no rush to cut rates

When it comes to interest rates, Goolsbee did not promise any near-term cuts. He said the Fed needs to see real, sustained improvement in inflation before it moves. “If we could get some more improvement on the inflation side, I think rates can still go down a fair bit more,” he said.

However, he made clear that one encouraging report is not enough. He pointed out that inflation has been running above the Fed’s 2% goal for more than four and a half years, and the central bank needs solid evidence of progress before loosening policy further.

He also said he is not certain how restrictive current rates actually are, and that there may be room to bring them down toward a level that neither speeds up nor slows down the economy too much.

Goolsbee’s moderate attitude mirrors the Fed’s overall perspective. Goolsbee’s first opposing vote since arriving in 2023 came in December 2025, when he and Kansas City Fed President Jeff Schmid both voted against reducing interest rates (along with one other dissenter favoring a larger cut).

Six other officials at the discussion urged against going too quickly. In January 2026, he went even further, saying that external pressure on the Fed’s independence may make inflation more difficult to manage.

The markets mirrored this anxiety. According to CME FedWatch data from mid-February, traders expect a rate hold for the March 18, 2026, meeting (78% to 94%). Few saw a near-term drop, but long-term betting on incremental reductions remained if inflation continued to fall.

As of February 14, 2026: 90.8% chance the Fed holds rates at the March 18, 2026 meeting, with 9.2% odds of a 25 bps cut. Source: CME FedWatch Tool

January’s report offers some reason for optimism, but not enough for the Fed to change course just yet. Upcoming data on producer prices and employment will go a long way in shaping what happens in the months ahead.

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Southeast Asian gangs involved in human trafficking have now kicked up their money laundering activities, relying on cryptocurrencies to move illegal funds and conceal profits. The move signals a shift in how these groups operate across borders, with a new report showing that digital assets have become the most preferred channel.

According to the report, these illicit funds are tied to forced labor, operations carried out in scam compounds, and other criminal activities. The trend shows how easy criminal networks adapt to technology while expanding their global reach.

In a report released by Chainalysis, crypto transactions linked to suspected trafficking operations jumped by 85% to hit $260 million. The metric was released in its 2026 crypto crime report, which tracks illicit activities across public blockchains.

Why are Southeast Asian gangs adopting crypto?

In the report released by investigators, Southeast Asian gangs are now favoring crypto. Tom McLouth, an intelligence analyst at Chainalysis, explained that the adoption of digital assets by these gang networks is because using digital assets provides them with faster remittance.

He noted that transactions are carried out within seconds, and funds are moved into exchanges that are abroad at the same time. He tied most of these transactions to forced labor in scam centers.

In addition, some funds were also linked to international escort services and child sexual abuse material networks. The growth is in line with the expansion of scam compounds and digital gambling platforms across the region.

Aside from using digital assets for its speed, it helps them reduce their dependence on traditional banking systems. Criminals tend to avoid the delays and regulatory oversight that come with using traditional cross-border transfer systems, and scaling their operations faster.

Over the past few years, Southeast Asia has seen a rise in online scam hubs and digital casinos. These operations rely on trafficked workers who have been forced to leave their countries to seek greener pastures.

These networks usually advertise several fake roles to entice workers and end up holding them against their will in these compounds. The workers help the masterminds behind the operation run their scams, where they target victims worldwide and take payments using crypto wallets.

Investigators report scam growth tied to crypto

In the report, investigators mentioned that the criminals have been able to grow their operations using crypto. As scam centers in Southeast Asia continue to rise, crypto transactions associated with them are also increasing.

In addition, these trafficking groups use multiple wallets for transactions. However, blockchain technology creates a record of every transaction. Unlike cash exchanges, digital transactions leave a trail on the blockchain.

In addition, investigators are now using blockchain analytics and traditional intelligence to investigate these transactions. As a result of this, authorities can disrupt networks faster than in previous years.

While trafficking networks take advantage of the speed and global reach of crypto, transparency provides an edge to investigators. Cooperation between regulations and analytics firms has also been helping enforcement efforts.

In a recent update released by Interpol last November, it announced that it has designated the criminal scam compounds built in the region as a transnational criminal threat. The resolution was approved at a General Assembly meeting in Marrakech, where authorities claimed that the scam compounds have targeted victims from more than 60 countries. They claimed that these criminals target victims using voice phishing, romance scams, investment fraud, and other forms of crypto scams.

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Solana Company shares have jumped 14.51% (+0.28) as the firm rolls out institutional borrowing against natively staked SOL in qualified custody. The model allows institutions to hold their assets on the Anchorage Digital platform while using them as collateral to access liquidity on Kamino Finance.

Solana Co. stock (Nasdaq: HSDT) climbed after the company partnered with Anchorage Digital and Kamino Finance, enabling institutions to simultaneously earn native staking yield on SOL while unlocking liquidity for borrowing and lending. The institutions can borrow funds without having to unstake or liquidate their holdings. 

The announcement had an immediate impact on Solana Co.’s stock price as shares jumped to $2.34, a significant rebound from the recent all-time low of $1.80 earlier this week. However, despite the positive shift, the company’s stock remains down nearly 90% since its shift toward a Solana-focused treasury strategy in September 2025. 

On the other hand, while Solana Co. stock has seen a temporary lift, the company is still under pressure from volatility in SOL prices. SOL’s value had fallen from $245 per token in September 2025 to nearly $70 earlier this year before recovering toward the mid-$80 range last week. The company’s $200 million in treasury holdings has also been affected by these market fluctuations.  

Kamino executive says partnership unlocks institutional borrowing demand

Cheryl Chan, the head of strategy at Kamino, said the collaboration unlocks meaningful demand for institutions to borrow against assets held in qualified custody. Chan added that by partnering with Anchorage Digital, Kamino will enable institutions to access on-chain liquidity and yield on SOL while continuing to custody assets within their existing regulated framework. 

“Institutions want access to the most efficient sources of on-chain liquidity, but they aren’t willing to compromise on custody, compliance, or operational control.”

–Nathan McCauley, CEO and Co-founder of Anchorage Digital

McCauley also disclosed that Atlas collateral management allows institutions to keep natively staked SOL held with a qualified custodian while using it productively, bringing institutional-grade risk management to Solana’s lending markets.

Anchorage Digital will act as the collateral manager for natively staked SOL, enabling institutions to earn staking rewards while unlocking borrowing power on Kamino. 

Meanwhile, all collateral will remain held in the borrower’s segregated account at Anchorage Digital Bank. That will ensure all assets remain in custody even as Kamino’s lending markets track their economic value. 

Scalable model serves as treasury companies’ blueprint

Cosmo Jiang, a board director at Solana Company, said the new model demonstrates how institutional-grade infrastructure can unlock deeper participation on the Solana network. Jiang, also a general partner at Pantera Capital Management, believes this scalable model will serve as the blueprint that other treasury firms will follow and institutional investors will demand. 

Simply put, this new model is a strong example of how regulated custody and on-chain lending and borrowing can collaborate within the Solana ecosystem. Solana Co. will collaborate to bring institutional capital to Solana’s DeFi ecosystem through a tri-party custody model. The company is currently the second-largest publicly traded holder of SOL, with nearly 2.3 million tokens on its balance sheet.

Meanwhile, several peers are also moving in similar directions, pushing firms to rely more on staking income and alternative yield strategies rather than on price appreciation alone.

SOL Strategy launched a liquid staking token backed by over 500,000 SOL last month. The company added a fee-generating product alongside its validator and treasury operations.

Sharps Technology also disclosed that its treasury is earning an annualized staking yield of approximately 7% while expanding validator operations.

Meanwhile, Upexi said staking income now accounts for the majority of its revenue, even as lower SOL prices drove a $179 million quarterly loss. The loss was primarily tied to accounting revaluations. 

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Members of the BRICS format are planning to establish a new exchange for precious metals, a high-ranking Russian diplomat revealed.

The news comes against the backdrop of increased volatility in the markets for assets such as gold and silver following recent spikes in their prices.

BRICS is building a trading platform for precious metals

Member states of the BRICS group of developing economies are now working to create a dedicated exchange for precious metals, Russian Deputy Foreign Minister Sergey Ryabkov told Russian state media.

Speaking to TASS, Ryabkov noted that besides a common investment platform, BRICS wants to have a “platform designed to work in special economic zones,” which virtually all participating countries have.

According to excerpts from his interview with Russia’s official news agency published Saturday, the diplomat further stated:

“There is also a recent, but very important, initiative to create an exchange of precious metals, along with a grain exchange.”

The Russian Federation is the source of a number of initiatives that were pitched and adopted when Moscow chaired the organization in 2024, the report reminded.

These include proposals for payment platforms, mechanisms for settlements in national currencies, reinsurance facilities for trade within the grouping and with its partners.

The establishment of a grain exchange and a new investment platform, discussed recently by Ryabkov’s superior, Sergey Lavrov, were also among Moscow’s suggestions.

“There are all reasons and prerequisites for something tangible to emerge,” the deputy minister insisted, commenting on these projects, without providing more details.

The idea of an exchange for precious metals comes to the fore after the prices of these assets registered a remarkable growth over the course of the past year.

Gold surpassed $5,600 in January, and the all-time high was followed by heightened market volatility, with the price per ounce falling towards $4,600 in early February.

It exceeded $5,000 again later this month, according to data compiled by Trading Economics. After sliding by more than 3% this past Thursday, it rebounded again on Friday to a little over $5,000.

BRICS to offer alternative to whatever America can shut down

Recognizing the weight of the pressure that the United States can exert, BRICS intends to create an alternative to everything that Washington can shut down “at the push of a button,” Ryabkov stressed.

“I think no one is underestimating the risks associated with American policy, both sanctions and tariffs. But this doesn’t mean everyone is ready to succumb to pressure,” the Russian official said, stressing:

“BRICS was created precisely to offer an alternative to everything that can be shut down at the push of a button, as we have already seen.”

“We are seeking and finding solutions to the problems this increasingly toxic international environment is creating,” he added, noting that this includes efforts within BRICS and in collaboration with countries willing to work with the organization.

The Russian representative put an emphasis on deploying “digital methods and systems” in that regard as well as on the use of national currencies for transactions.

Last month, the Central Bank of India, a founding member of BRICS, proposed linking digital currencies issued by its nations to simplify cross-border trade and reduce dependence on the U.S. dollar.

However, in November 2025, Russian Finance Minister Anton Siluanov admitted that his country’s push for a system for international settlements in the group is hampered by partners sticking to the Greenback.

Trade growth within BRICS overtakes global average

Sergey Ryabkov also highlighted some of the results of the BRICS integration, pointing out that trade between its members is growing faster than global trade and elaborating:

“Statistics show that trade growth among BRICS countries significantly exceeds both the overall growth rate of global trade and the trade growth between BRICS members and other partners.”

The Russian diplomat is convinced “this is simply an indication that BRICS – without being some kind of ‘magic wand’ – can truly help address challenges.”

“We need to expand this potential, and there is the political will to do so,” Russia’s deputy foreign minister emphasized.

BRICS was originally formed by Brazil, Russia, India, and China in 2009, with South Africa joining the following year. The intergovernmental body has since accepted Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates as full members.

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Rivian stunned the market with its shares soaring 27% on Friday following stronger-than-expected 2025 earnings. The shares rose sharply from their previous close of $14.00 to $17.73 on Friday. 

Google Finance data showed the stock traded in a day range of $16.40 to $18.48, edging higher to $17.76 in after-hours trading.

Rivian reports 2025 financial and production performance

Rivian announced on Thursday that its 2025 gross profit was $144 million, compared with a net loss of $1.2 billion in 2024.

According to the release, Rivian produced 42,284 vehicles and delivered 42,247 to clients by the end of 2025. Despite this, the company’s automotive profitability for the year showed a $432 million net loss, which was better than in 2024.

According to the company’s earnings report, the company delivered 9,745 and produced 10,974 vehicles in quarter 4 of last year alone, but its consolidated revenues for the quarter dropped to $1,286 million from $1,734 million in the same period in 2024. The company revealed that automotive revenues fell 45% year over year to $839 million due to a $270 million decline in regulatory credit sales, fewer vehicle deliveries after tax incentives expired, and a greater mix of lower-priced EDV models. 

The company’s release disclosed that consolidated full-year revenues came to $5,387 million, up 8% from 2024. Software and services had a 222% increase in revenue to $1,557 million, while automotive revenues fell 15% to $3,830 million. 

The company also laid off roughly 600 employees in October of last year, more than 4% of its workforce.

“It’s a turnaround for the ages,” said Dan Ives, an analyst with Wedbush Securities. “The past few years have been very frustrating for investors.”

Rivian was established in Florida in 2009. It went public in 2021. Its competitors include Tesla and other automakers that charge higher prices for all-electric cars.

The cheapest Rivian model currently on the market, the R1T pickup truck, starts at $72,990.

Rivian advances autonomous driving and AI ecosystem

Rivian is banking its future on the success of its own lower-priced R2 model, which is anticipated to cost about $45,000. According to the earnings release, the company has gotten a good early response to its R2 SUV.

“It’s incredibly exciting to see the early strong reviews of the R2 pre-production builds, and we can’t wait to get them to our customers next quarter,” Rivian founder and chief executive, RJ Scaringe, said in a statement. 

Scaringe revealed that Rivian’s R2 launch is still proceeding according to plan, with the first client deliveries expected in the second quarter of 2026.  The company completed its first R2 manufacturing validation builds in mid-January. 

Scaringe stated that the launch variant will be a well-equipped Dual-Motor AWD vehicle, with additional product and line-up details scheduled for release on March 12.

On December 11 of last year, the company hosted its first Autonomy and AI Day. It stated that it is advancing its autonomy and AI capabilities as part of its broader push to integrate cutting-edge technology across its vehicle lineup.

The company showcased innovations from its vertically integrated hardware, software, and autonomy teams, introducing its third-generation autonomy platform and its first in-house AI chip, the RAP1 Autonomy Processor, which supports multi-modal computing in the real world.

On the same day, Rivian also introduced Universal Hands-Free (UHF), expanding assisted-driving capabilities to over 3.5 million miles across the U.S. and Canada for R1 vehicles, with customer utilization doubling in the weeks following the launch.

The company said it expects that RAP1, in conjunction with R2’s advanced sensor and computing architecture, will deliver a significant leap in efficiency and enable advanced autonomous features such as “eyes-off” and personal-level 4 capabilities.

Rivian said it is further strengthening its AI ecosystem through Rivian Unified Intelligence, a system designed to understand products and operations as a single continuous framework.

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As inflation rates around the world continue to soften, Bitcoin holders and crypto investors are increasingly questioning the reasons they own the world’s largest cryptocurrency.

According to Anthony Pompliano, a well‑known BTC entrepreneur, investors are being “tested” as U.S. inflation data cools, forcing a reassessment of why Bitcoin is held in the first place, whether as an inflation hedge, a growth asset, or a store of value.

Throughout 2025 and into early 2026, numerous inflation reports showed U.S. consumer prices rising more slowly than expected. For example, data in late 2025 showed inflation holding around 2.7% year‑over‑year, below forecasts, which at times helped buoy Bitcoin prices as investors eyed potential monetary easing from the Federal Reserve.

However, just because inflation is easing does not mean Bitcoin’s path forward is simple. Softer inflation can reduce Bitcoin’s traditional appeal as a hedge against rising consumer prices.

Corporate confidence and the long-term store of value debate

Strategy, the largest corporate Bitcoin holder, recently reaffirmed its commitment to the asset even amid volatility. Michael Saylor, American entrepreneur and former CEO of Strategy, has publicly stated the company will continue to hold and acquire Bitcoin regardless of near‑term price movements.

The underlying worth of Bitcoin should be understood as fixed supply, Pompliano said, and if governments continue printing money, the cryptocurrency’s price will ultimately rise. “Bitcoin and gold are great long-term assets,” he continued.

A new report from the Bureau of Labor Statistics indicated the Consumer Price Index (CPI) fell to 2.4% in January from 2.7% in December. But inflation “looks better on paper than in reality,” Moody’s chief economist Mark Zandi told CNBC. 

Since BTC has a limited supply of 21 million coins, it is often considered an inflation hedge. When central banks increase the money supply and fiat currencies lose value, investors typically look for alternative assets, including Bitcoin, to preserve purchasing power.

Fear and volatility shake the market, but opportunities remain

Market sentiment has fallen precipitously. When analysts reviewed the most recent Crypto Fear & Greed Index data, the index reached 9, a level not seen since June 2022, indicating the most extreme fear. BTC is at about $68,850, down more than 28% in the past 30 days, CoinMarketCap data shows.

Short-term deflationary pressures, Pompliano noted, may generate volatility before Bitcoin can resume its upward trajectory. He noted that demands for lower interest rates and additional money printing may weaken the U.S. dollar, even though the effects are initially concealed. 

“The currency is going to be devalued at a time where deflation covers up the impact — I call it a monetary slingshot,” he noted. 

He expects the Federal Reserve to keep expanding the monetary supply, as the country seeks to quell economic pressures, saying further dollar debasement would boost BTC’s appeal in the long term. The U.S. Dollar Index is down 2.32% over the past 30 days and is currently trading at 96.88, according to TradingView.

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Blockchain investigator ZachXBT has tackled a business associate of popular figure Jake Paul over his claims concerning their new crypto venture. Paul’s business partner, Geoffrey Woo, responded to a post on X, claiming that the crypto venture had ‘0% rug pull risk’ because he was already rich.

In the post quoted by Woo, a user on X said, “Perhaps the most important thing about this meta is that founders are very much aligned and there’s no founder rug pull risk. Bags meta ran up larps to $70m. Interesting to see how high this goes on base.” Woo also claimed in his post that he would not be tempted to dump his full position, a claim that didn’t seem to go down well with ZachXBT. He pointed out the obvious problem, which was Woo’s decision to enter into a partnership with the Paul brothers in the first place.

ZachXBT highlights failed projects linked to the Paul brothers

ZachXBT highlighted several failed projects that have been run by the Paul brothers in the crypto industry. He mentioned projects like CryptoZoo, Animoon, Sacred Devils, STICKDIX, and Dink Doink that have lost more than 99% of their peak value. Aside from dozens of publications linking the Paul brothers to scams and rug pulls, there is the issue of Jake Paul’s promotion of TRX without disclosing compensation.

Despite the comments, Woo didn’t back down from his claim that the project runs no founder rug pull risk. He even repeated a bullish price prediction for the new token. Still unconvinced, ZachXBT said, “The bot placed the sells, not the dev,” joking about the excuse Woo could invent on the day that he eventually dumps his token. In fact, he also sounded unconvinced that Woo’s project hadn’t already sold some of the tokens gotten from its founding allocation.

The researcher cited three sales, highlighting swaps from the memecoin to other digital assets, which would violate Woo’s disclosure promise to pre-announce insider sales for operations. On the other hand, Woo and Jake Paul had been business partners for a long time, with the pair co-founding a venture capital firm in 2021 and working together on a men’s personal care brand. As a Stanford graduate and a professional, Woo knows the implications of his promise to pre-announce sales and predict 0% risks.

The Paul family in the negative spotlight

The Paul family has done little to steer away from public scrutiny in the past few days after Logan Paul was accused of faking a $1 million Super Bowl bet on Polymarket. Paul was filmed placing what appeared to be a $1 million bet on the New England Patriots beating the Seattle Seahawks and winning the coveted prize. However, ZachXBT and numerous onlookers have claimed that he did not go through with the bet as his account had no money in it.

In addition, ZachXBT also pulled up a list of the top bettors within the market and showed that none of them matched the bet made by Paul. He called the move “yet another Logan Paul scam,” a comment that possibly referenced the detailed crypto project CryptoZoo, where victims lost tens of thousands of dollars, and led to numerous lawsuits, some of which are still ongoing. ZachXBT also speculated that there is some sort of relationship between Paul and Polymarket that is not being disclosed.

The crypto sleuth shared one of Paul’s live streams, filmed days earlier, that showed the influencer trying to promote Polymarket in a way that ZachXBT described as inorganic. Meanwhile, Polymarket is still battling various legal challenges in courts in the United States. The platform recently launched a lawsuit against the state of Massachusetts, attempting to prevent it from shutting down its sports prediction markets.

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Scott Bessent, the United States Secretary of the Treasury, has stressed that enacting the CLARITY crypto market structure bill could bolster investor confidence and improve market sentiment during a crucial period of economic contraction.

He also argued that delays in passing the CLARITY bill, driven by concerns from the crypto industry, have significantly affected the ecosystem.

To clarify on this point, Bessent highlighted that, “During a period of significant market sell-offs, I believe that clear information about the CLARITY bill would really help the market feel more at ease, allowing us to move on from this situation. If the Democrats were to gain control of the House, which I don’t see as a good outcome, then the chances of reaching an agreement would likely disappear.”

Afterwards, the United States’ top financial official concluded that it is essential to secure approval of this bill at the earliest opportunity and later send it to US President Donald Trump’s desk to sign it into law by spring. Notably, the spring period runs from late March through late June in the country. At this particular moment, sources explained that the urgency stems from impending changes in power during the 2026 midterm elections. 

Bessent calls for the urgency of the CLARITY bill approval

Regarding Bessent’s remarks, Joe Doll, a prominent crypto attorney and executive known for his work in Web3 legal strategy, particularly as the former General Counsel for the NFT marketplace Magic Eden, declared that power shifts during US midterm elections are inevitable.

Just after he outlined this finding, reports noted an earlier statement by Ray Dalio, a prominent American investor, billionaire hedge fund manager, and author. In his statement, Dalio contended that President Trump has a two-year mandate that is highly vulnerable to threats in the 2026 midterms and could be overturned in the 2028 elections. According to him, if Trump’s pro-crypto policies are not codified into law, a political shift could easily reverse them.

Currently, US House data highlighted that the Republican Party maintains a slim lead, holding four more seats than the Democratic Party in the US House of Representatives, holding 218 seats compared to 214 for Democrats.

On the other hand, Polymarket shared its data disclosing that 47% of traders anticipate a split in control between the two parties during the 2026 midterms, resulting in divided control of Congress. As of now, Polymarket traders have placed a 37% probability on the Democratic Party achieving a full sweep of both chambers of Congress in the upcoming midterms.

Doubts surrounding the CLARITY bill deepen

While these uncertainties surrounding the CLARITY bill intensified, reports from reliable sources mentioned that officials from Trump’s administration met with banking and crypto executives to discuss strategies for managing stablecoin yields in the market structure bill currently under Senate consideration.

This meeting was confirmed after the Digital Chamber, the world’s largest trade association for the blockchain and digital asset industry, shared a post on the social media platform X, pointing out that Cody Carbone, its CEO, and other industry executives gathered at the White House to discuss the details of the Digital Asset Market CLARITY Act. Notably, the Senate Banking Committee delayed talks on this act last month.

Meanwhile, before resuming discussions, Lawmakers were scheduled to address several topics, including tokenized equities, decentralized finance, ethical guidelines for elected officials investing in crypto, and rewards for stablecoins.

In a statement, Carbone stated that, “The meeting at the White House today was just the type of progress we need to help solve one of the major problems that is hindering further steps in market structure legislation,” adding that, “We are hopeful that as we explore the details of the policy further, we can create a level playing field for digital assets in the US.” 

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Virginia is progressing the bill to regulate cryptocurrency ATM kiosks across the state. According to reports, the legislation has passed both the state Senate and House and has now been moved to the governor’s desk. If signed, the bill would create rules for operators and add a new layer of consumer protection against scams.

In addition, the legislation is expected to include other licensing and reporting requirements that would help residents carry out transactions safely across Virginia. The legislation will also prevent operators of the kiosk from marketing them as ATMs or using language that recognizes them as ATMs. Other protections include daily and monthly transaction limits, a 48-hour hold for new users, so that refunds can be possible after suspected fraud. ID verification for all transactions and clear warning notices branded at the kiosks are also some other measures highlighted in the bill.

Virginia set to pass bill to regulate crypto ATMs

The bill was sponsored by Delegate Michelle Maldonado, who claimed that it was prompted by the increased scams across Virginia. She highlighted a situation where a resident in Southwest Virginia lost about $15,000 to scammers as a result of the machine, and another case in Fairfax County. She added that the machines are confusing people. Maldonado said that they are shaped to look like regular ATMs, which is not supposed to be the case.

Maldonado mentioned that instead of taking money out of the machines, people are required to deposit funds to buy digital assets that are often moved to broader exchanges in the country or abroad. She claimed that in several cases, people are being deceived into sending money using the machines. She highlighted some cases, including that of debt repayment by an offspring, payment to get out of legal problems, and the major aspect, the romance scams.

Crypto scams being facilitated using the crypto ATMs have been on the rise, with Maldonado noting that people in other parts of the country have lost as much as $250,000 to similar scams. “The thing about crypto is that once it goes into the exchange, which is in the blockchain environment, there’s no way to trace it. There’s no way to get it back,” Maldonado said. The legislation requires kiosks to register their business, pay fees, put a limit on fees charged to use the machines, and provide avenues to refund available portions of money.

What are other states saying about crypto ATM regulation?

Maldonado added that the approach shows a proactive regulatory strategy, noting that about 7% of the scams being carried out in the crypto industry are facilitated using the kiosks. She highlighted that the small figure doesn’t mean there are no issues, noting that it is the best time to put the safeguards in place to ensure that the 7% figure doesn’t blow up in the future. Maldonado added that Virginia wants people to be educated, which is why they are producing tools to keep the industry accountable.

Virginia is not the only state looking to keep tabs on crypto ATMs and kiosks, with other states also pushing regulations towards that effect. In 2025, about 14 States passed laws to protect users from crypto ATM scams, bringing the total to 17 states. While the contents of the regulations and thresholds varied, the regulations were pushed towards combating the rising menace. The highlight of most regulations required setting daily transaction limits and brandishing fraud warning signals near the location of the kiosks.

Lt. Eric Calendine, a fraud investigator for the Beaufort County Sheriff’s Office in South Carolina, spoke about the legislation being developed by states. Calendine has been working with lawmakers in the state to pass crypto ATM legislation. He noted that he has been tracking fraud in Beaufort County and discovered that many cases involved jury duty, tech support, romance, and impostor scams. He mentioned that funds are typically hard to recover because they are sent to countries that do not cooperate with US authorities.

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Coinbase head Brian Armstrong said a ban on stablecoin rewards would “ironically” make the company more profitable. He even argues that the policy would harm customers. This comes in when the crypto market is dealing with increased selling pressure and sentiments dipping in “Extreme Fear.”

In a recent post, Armstrong wrote that if a crypto rewards ban became law, Coinbase would benefit financially. This is because the exchange currently pays out large amounts in rewards to users holding USDC. The stablecoin market cap is on a surge and hovers around $314 billion. 

Coinbase defends USDC yield payouts

Coinbase CEO in a post mentioned that “But we don’t want this to happen,” as customers should continue receiving rewards. He added that the regulated US stablecoins should remain competitive globally. These comments landed as lawmakers are debating the provisions in the pending market structure legislation bill that could restrict interest or rewards paid on stablecoins. 

Banks have reportedly pushed for language prohibiting such payouts. They argue that yield-bearing stablecoins could draw deposits away from insured lenders. In a way, it could threaten financial stability, they insist. Meanwhile, crypto firms say that rewards are essential to attracting users and competing with offshore platforms.

Coinbase offers USDC rewards as a headline feature. As of February 2026, the platform advertises a 3.50% annual yield on USDC balances. However, this benefit is limited to Coinbase One subscribers which is a paid membership on the platform. Free accounts no longer earn rewards.

Tether’s USDT is the biggest stablecoin in the market. It holds a circulation of more than 183 billion. Circle’s USDC stands 2nd in the tally with a circulation of over 73.4 billion. The Trump family-backed stablecoin, USD1, went on to hit the 5.28 billion circulation mark.

Coinbase margins in focus

Taking a look at it from the financial outlook, a ban could reduce Coinbase’s costs. The exchange generates revenue from USDC held on and off its platform. This is done through its partnership with issuer Circle. The exchange earns a share of interest income from the dollar reserves backing the stablecoin. If rewards were eliminated, then it would retain more of that interest spread rather than distributing a portion to users.

Data shows that the stablecoin operations have become a growing contributor to Coinbase’s revenue mix. Its fresh quarterly results show that subscription and services revenue rose 13.5% to $727.4 million. Stablecoin revenue increased to $364.1 million from $225.9 million.

Amid this growth, Cryptopolitan reported that Coinbase printed a net loss of $666.7 million, or $2.49 per share, for the quarter ended Dec. 31. Transaction revenue fell sharply as digital asset prices slumped in the final months of 2025.

The global crypto market retreated from early October highs. It was a reaction to President Donald Trump’s new tariffs on Chinese imports and expected export controls on critical software. Bitcoin price has dropped by almost 30% in the last 30 days. It is running down by more than 45% from its all time high (ATH) of $126,198 recorded on October 7 2025. BTC is trading at an average price of $68,868 at the press time.

The stablecoin debate has bagged the spotlight among the investors. The GENIUS Act, which was passed last year, created a federal framework for stablecoins. On the other side, there is the Clarity Act that aims to define regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It has been stalled amid disagreements over stablecoin rewards.

Coinbase withdrew its support over certain provisions. This has been cited as a factor in the delay. A recent White House meeting tried to fix the differences between banks and crypto firms. But it ended without a breakthrough.

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Anthropic’s user base increased by 11% after its viral Super Bowl ad, which bashed rival OpenAI and earned it bragging rights, according to BNP Paribas. Visits to the Claude chatbot maker’s website jumped 6.5%, pushing Anthropic into the top 10 free apps on the Apple Store to beat competitors Meta, Gemini, and OpenAI.

According to the data analyzed by BNP Paribas, OpenAI’s daily active users also saw a 2.7% bump post-game, and Google’s Gemini added 1.4%. AI brand ads took center stage at the Super Bowl, reaching an audience of about 125 million in the U.S. alone. However, Claude’s user base still lags behind those of ChatGPT and Gemini. 

Meanwhile, the rivalry between Anthropic and OpenAI added a new layer with the dueling ads as the AI firms head toward potential IPOs later this year. Both companies have become more publicly vocal in recent weeks, with executives openly slurring each other’s businesses. 

Anthropic’s snarky ad wins AI Super Bowl

BNP Paribas said Anthropic’s cheeky Super Bowl ad, which indirectly took aim at OpenAI, led to the highest increase in visits and users, beating all other AI firms to win the “AI Super Bowl.” Meta, Google Gemini, OpenAI, and Anthropic all aired commercials during the Super Bowl in the battle for more customers. 

Paul Smith, chief commercial officer at Anthropic, said his company is focused on growing revenue rather than spending money. He also noted that Anthropic is even less interested in flashy headlines. The senior Anthropic executive, speaking during an AI partnership signing with Man Group, took a light swipe at OpenAI’s spending and plans to test ads in ChatGPT.

“It was a conscious decision not to include ads in Claude. Advertising would take Anthropic in directions where you’re optimizing for the wrong things.”

–Paul Smith, Chief Commercial Officer at Anthropic

Smith said his company is “unconflicted” because it does not run ads, focusing instead on selling its AI to businesses. He added that, without ads, Anthropic can focus on areas such as making AI models more intelligent, trusted, helpful, and safe. The AI firm has committed $50 billion to building data centers in the U.S., but it is also buying compute from Google and Microsoft.

Anthropic’s CEO, Dario Amodei, has also reinforced a do-more-with-less mindset and said the company is taking a more disciplined approach to spending than others. Smith pointed out that Anthropic is looking to buy compute as close to the correct amount as possible, without going too much or too little. He emphasized that his company is not buying ahead of demand.

OpenAI CEO calls Anthropic’s Super Bowl ad deceptive

OpenAI CEO Sam Altman responded in a lengthy X post, calling Anthropic’s Super Bowl funny but deceptive. He further stoked the fire in an interview with the tech news show TBPN, reiterating that Anthropic was clearly being dishonest. Altman emphasized that his company would never run ads in the way Anthropic depicted them, adding that OpenAI users would definitely reject that.

The OpenAI boss also threw small jabs at Anthropic, claiming that more Texans use ChatGPT for free than the total number of people who use Claude in the U.S. He noted that Anthropic offers an expensive product to rich people. Individual plans for ChatGPT range from free to $200 a month, while Anthropic’s individual plans for Claude range from free to $100 a month.

Altman also defended his company’s decision to show ads on ChatGPT, stressing that OpenAI has differently-shaped problems than Anthropic. He pointed out that no ads are shown for ChatGPT Plus or Pro subscribers.

The OpenAI executive also accused Anthropic of wanting to control what people do with AI, adding that Anthropic blocks companies it does not like from using its coding product. He further noted that the rival company also wants to tell others what their business models can be, calling it a dark path.

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A coalition of crypto industry advocates is pushing back against Wall Street banks’ calls to prohibit stablecoin yields. The coalition argued that user involvement, innovation, and liquidity across digital asset markets depend on limited incentives.

A White House conference between Wall Street bankers and cryptocurrency entrepreneurs stalled this week, even though government officials under President Donald Trump urged the parties to reach an agreement. In a one-page document titled “Yield and Interest Prohibition Principles,” the banks defended their stance that no stablecoin yield or incentive is appropriate. They claimed that such yields jeopardize the depository activity at the core of the American banking system.

Digital Chamber outlines principles to protect stablecoins

Today, The Digital Chamber is releasing principles to help illuminate the path forward on the stablecoin yield debate so that the U.S. can move forward in advancing a durable market structure bill and lead the world in crypto.

These principles push to preserve stablecoins as… pic.twitter.com/CKMgT9k7Xv

— The Digital Chamber (@DigitalChamber) February 13, 2026

Among the most prominent voices, the Digital Chamber has put forth a formal principles framework to guide policymakers toward fair regulations that uphold the US dollar’s global dominance, support DeFi expansion, and safeguard stablecoins’ position in payments.

On February 13, the Digital Chamber published a report stating that Section 404 of the Senate Banking Committee’s market-structure draft would prohibit interest or compensation for merely holding payment stablecoins, although defining specific allowed applications. The group cautioned that eliminating key exemptions would cause current digital asset activities linked to dollar-denominated stablecoins to stop.

The Digital Chamber explained that the Act may seriously impair these markets in the absence of specific clauses that permit incentives for tasks such as liquidity provision in DeFi protocols and exchange liquidity pools. According to the organization, this reduces the risk that dollar-based stablecoins will lose their global significance and may allow foreign currencies to take their place in crucial sectors of the digital asset ecosystem.

According to the crypto advocacy group, no organization should avoid a direct or indirect ban on stablecoin yield as long as the applicable exemptions are maintained. The chamber also agreed with financial institutions’ concerns regarding community banking and lending. It also stated that businesses must accurately disclose that any profits derived from stablecoins are not comparable to conventional interest income.

The Digital Chamber favored keeping clauses that linked such exemptions to compliance controls and explicit statements. According to its principles, these actions are meant to mitigate enforcement risks while preserving openness for users engaged in stablecoin-related activity.

The chamber also supported a clause in the Senate Banking Committee draft that requires authorities to conduct a study evaluating the advantages of expanded payment-stablecoin activity and its impact on deposits at insured banks, two years after implementation. According to the group, such analysis should demonstrate that stablecoins enhance the established financial system rather than replace it.

Carbone pushes compromise amid stablecoin negotiation stalemate

Digital Chamber CEO Cody Carbone said in an interview that the group sees their plan as a compromise meant to show lawmakers that it is flexible. He emphasized that the industry organization is prepared to make concessions on provisions that resemble interest payments, as passive stablecoin holdings most closely resemble traditional savings accounts.

Carbone said that banks are working to amend upcoming legislation to limit provisions that are now permitted under the GENIUS Act, which is the stablecoin’s governing law. He urged bankers to resume talks, arguing that while the industry’s willingness to remove incentives for passive holdings is a major concession, businesses should still be able to provide transaction-tied incentives.

“If they don’t negotiate, then the status quo is that just rewards continue as-is. If they do nothing and they continue to say, ‘We just want a blanket prohibition,’ this goes nowhere.”

-Cody Carbone,  Digital Chamber CEO.

Carbone expects that the new position paper from the Digital Chamber would help restart the negotiations that have stalled the legislation’s advancement since an 11th-hour dispute ruined a hearing on the bill before the banking panel a month ago. The White House has reportedly called for a compromise by the end of the month. Although Trump’s crypto adviser Patrick Witt stated in a Friday interview with Yahoo Finance that another meeting would be scheduled for next week, the bank side hasn’t appeared to move much in talks thus far.

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Figure Technology, a prominent blockchain-based fintech company, has acknowledged a security incident involving unauthorized access to its data.

In a statement, Alethea Jadick, a spokesperson for Figure Technology, said the breach occurred when an employee fell for a social engineering scam, allowing hackers to gain access to a few files.

The firm confirmed that it is communicating with partners and affected parties regarding the breach. Moreover, it pointed out that complimentary credit monitoring is available to all recipients of this notice. Nonetheless, reporters claimed that Figure’s spokesperson failed to address certain questions concerning the breach details.

Breach incidents in the tech industry remain a key concern

The figure’s breach incident has sparked security concerns among individuals, igniting heated discussions in the industry. In this scenario, reports stressed that ShinyHunters, a notorious black-hat criminal hacking and extortion group, took credit for the breach on its dark web portal. According to the hackers, the company refused to meet their demands, prompting them to leak 2.5 gigabytes of allegedly stolen data.

In response to this action, Figure stated that,  “We recently found out that an employee was manipulated into giving access, which let someone download a limited number of files through their account. We took immediate action to stop the activity and hired a forensic firm to investigate which files were impacted.”  

Following this statement, sources declared that the approach applied in this case was Social engineering, a psychological manipulation of people into performing actions such as granting unauthorized access or divulging confidential information, acting as a form of “human hacking”.

Meanwhile, to demonstrate the intensity of the situation, Chainalysis shared a report last month noting that scammers stole an estimated $17 billion in cryptocurrency last year, using AI to enhance impersonation and social engineering.

Their report showed that data breaches remained a key concern in the tech industry last year, further heightening tensions this year.  This was after a report from the Privacy Rights Clearinghouse, dated December 2025, revealed that regulators recorded more than 8,000 filings covering more than 4,000 distinct scenarios that significantly affected at least 374 million people.

While Figure’s spokesperson provided limited details about the firm’s breach, an anonymous individual from the ShinyHunters group informed a reliable source that the breach was part of a broader campaign targeting companies that use the Okta single sign-on service. In the meantime, sources mentioned that other alleged victims were the University of Pennsylvania and Harvard University.

Step Finance encounters a breach in its operation 

As breach incidents continue to be a significant challenge in the industry, Step Finance, a prominent DeFi platform particularly within the Solana blockchain ecosystem, announced that several of its treasury and fee wallets were compromised, prompting an investigation into the breach.

Following its announcement, onchain data revealed that hackers unstaked about 261,854 SOL and moved them to an unknown address. At the moment, the blockchain security company CertiK claimed that the price of SOL was around $110, implying that these transfers accounted for almost $29 million in value.

Meanwhile, in attempts to calm down the tension among its clients, Step Finance shared an X post, highlighting that, “We experienced a security breach in some of our treasury wallets a few hours ago, and we are currently looking into it… We will share more details later.” The platform also disclosed that it engaged cybersecurity experts to assist with the investigation.

Nonetheless, Step Finance failed to mention the primary cause of the breach. This sparked speculation in the ecosystem, with some alleging it stemmed from a smart contract flaw and others claiming it was due to an access control issue. The main question raised at the moment was whether user funds outside the treasury were affected. 

These concerns prompted reporters to reach out to Step Finance for clarity on the speculations and questions raised, but it declined to respond. 

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The digital asset market in February 2026 is showing a clear change in capital rotation patterns. While established names from previous cycles remain dominant in size, their growth profiles are maturing. Investors are no longer relying solely on large-cap tokens for upside. Instead, attention is shifting toward newer protocols that combine lower entry valuations with active development and practical utility.

This rotation reflects a broader search for asymmetric growth, opportunities that established, highly capitalized networks may struggle to deliver at the same scale. Within this environment, one emerging project has begun to stand out among early-positioning investors preparing for the next major cycle.

Solana (SOL)

Solana (SOL) is currently trading at approximately $80, with a market cap hovering around $45 billion. It has come a long way from its early days, but the path forward is becoming more difficult. While it is known for its incredible speed and low fees, it has struggled recently to stay above key technical levels. 

Technically, Solana is hitting heavy resistance zones. It is currently stuck below the $87 to $95 range, which has turned from a support area into a ceiling. Analysts suggest that unless it can reclaim $100 with strong volume, it may continue to consolidate or even slip toward $70. 

Ethereum (ETH)

Ethereum (ETH) remains the king of smart contracts, but it is also feeling the pressure of a changing market. It is currently trading near $2,000 with a market cap of about $245 billion. Even with institutional interest and ETFs, the price has failed to hold onto its previous highs. Large holders have been seen moving their ETH into other assets as the network faces a risk-off environment in early 2026.

The technical charts for Ethereum show a clear struggle. It is currently fighting to stay above the psychologically important $2,000 mark. Resistance zones are thick between $2,150 and $2,450, where many sellers are waiting to exit. If ETH cannot break through these levels, it could enter a longer period of capitulation where the price drifts lower while the market looks for a new reason to buy.

Mutuum Finance (MUTM)

As larger tokens consolidate, Mutuum Finance (MUTM) has been building momentum. It is a decentralized lending protocol on the Ethereum network that enables users to supply tokens for yield or borrow against collateral within a transparent, non-custodial framework.

The system is structured around two complementary models. Its Peer-to-Contract (P2C) markets allow users to deposit assets into shared liquidity pools and earn variable yield based on utilization, with interest generated from borrower activity. In parallel, a planned Peer-to-Peer (P2P) layer is designed to facilitate more direct lending arrangements under predefined Loan-to-Value ratios and liquidation thresholds. This dual-market approach positions Mutuum as a functional DeFi infrastructure protocol rather than a narrative-driven token.

The project is currently in its Phase 7 presale stage, with the token priced at just $0.04. This is a significant jump from its starting price of $0.01, but it is still far below its confirmed launch price of $0.06. With over $20.5 million raised and more than 19,000 holders, the project has the kind of early community support that usually precedes a major market breakout.

Why MUTM Is Positioned to Lead the 2026 Rotation

Analysts believe MUTM has a better chance for massive growth in 2026 compared to ETH or SOL. The main reason is the “market cap ceiling.” For ETH or SOL to double in value, they need tens of billions of dollars in new money. For MUTM, a move from $0.04 to $0.40 is a much smaller hurdle. This makes it a high-potential choice for those looking for a 10x opportunity that the larger altcoins can no longer easily provide.

Consider a $450 investment comparison. In Ethereum, $450 buys about 0.22 ETH. If ETH reaches its bullish target of $4,000, that investment becomes $880. In Solana, $450 buys roughly 5.6 SOL. If SOL hits $160, you have $896. However, in the MUTM presale, $450 gets you 11,250 tokens. If MUTM reaches a conservative target of $0.50, that same $450 grows into $5,625. This illustrates the massive gap in growth potential between a mature giant and a fresh utility project.

The strength of Mutuum Finance is not just in its price, but in its technology. The team has already launched the V1 protocol on the Sepolia testnet. This allows anyone to test the lending pools and see how the mtTokens earn yield in a live environment. 

To ensure the code is safe, the project has passed a manual audit by Halborn Security and holds a high 90/100 score from CertiK. With working tech and top-tier security, MUTM is checking every box for investors who are rotating away from stagnant giants and into the future of DeFi.

For more information about Mutuum Finance (MUTM) visit the links below:

Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance