The latest developments in cryptocurrency, blockchain and digital finance.
The Bank of Italy says banks and central institutions will anchor digital money, with Governor Fabio Panetta arguing stablecoins rely on fiat pegs and can only play a supporting role despite efficiency benefits.
New SEC submissions spotlight rising tensions over self-custody and DeFi regulation, as industry groups push for clearer dealer rules while warning against weakened investor protections during ongoing CLARITY bill negotiations.
Chainalysis has launched a new automation feature that lets non-technical teams run onchain investigations without writing code, aiming to help compliance and investigators keep up with increasingly sophisticated, AI-driven fraud, even as data shows hacking losses fell sharply toward the end of 2025.
Messari says insider trading can only be meaningfully curbed on prediction markets that enforce KYC, warning anonymous platforms face major limits in detecting abuse as regulatory scrutiny rises after high-profile geopolitical bets.
Senate Judiciary leaders are pushing to remove crypto developer protections from a market structure bill, warning the language could weaken enforcement against unlicensed money transmission and illicit finance, complicating efforts to secure bipartisan support amid growing industry pushback.
Bitcoin futures open interest has rebounded around 13% in January following a sharp Q4 deleveraging, with analysts pointing to a cautious return of risk appetite even as positioning remains well below October highs. At the same time, options open interest has overtaken futures, signaling a shift toward more structured and risk-managed trading strategies.
Bitcoin’s hashrate has slipped below 1 zetahash per second for the first time in four months, falling nearly 15% from its October peak, as analysts say miners are increasingly diverting power toward AI and high-performance computing for better margins, even as mining difficulty falls and profitability improves.
Jefferies strategist Christopher Wood has cut Bitcoin to zero in his Greed & Fear portfolio, citing quantum computing risk. He replaced the position with gold exposure, arguing that quantum breakthroughs could challenge Bitcoin’s store-of-value case. Developers counter that quantum threats are decades away and say Bitcoin has time to transition to quantum-resistant cryptography.
Trump said a Venezuela “leaker” has been jailed, comments that have refocused attention on suspiciously timed prediction market bets. Several Polymarket accounts tied to Venezuela wagers have gone inactive, while one continues betting on Iran. The episode adds momentum to calls for tighter oversight and insider trading rules for political prediction markets.
KBC plans to launch Bitcoin and Ether trading for Belgian retail investors via its Bolero platform from Feb. 16. The bank says the service complies with MiCA, even as Belgium has yet to issue formal MiCA licenses. The move comes amid broader EU debates over crypto supervision, passporting and the role of ESMA
Sygnum expects clearer US crypto regulation to pave the way for sovereign Bitcoin reserves and broader adoption of tokenization by banks in 2026, arguing that early state adopters could accelerate Bitcoin’s emergence as a global store of value despite ongoing political constraints. At the same time, the firm sees tokenized bonds moving steadily toward the financial mainstream as major institutions prepare to issue and manage debt directly on blockchain-based infrastructure.
Indian crypto platforms are urging the government to revisit high transaction taxes and loss restrictions ahead of the February budget. Exchanges argue that tighter compliance is already in place, but tax friction is pushing liquidity offshore. Industry leaders say targeted tax reforms could boost onshore activity while supporting enforcement goals.
Bitcoin derivatives open interest has fallen about 30% from October highs, signaling a broad deleveraging across the market. Analysts say this reset has historically preceded recoveries, but caution that derivatives markets have not yet confirmed a full bull phase.
Pakistan is exploring the use of a Trump-linked stablecoin for regulated payments and remittances, marking a rare sovereign-level engagement with a politically connected crypto venture. The move underscores Islamabad’s ambition to become a global crypto hub while testing stablecoins as part of its evolving digital finance strategy.
Thailand is stepping up efforts to combat illicit finance by unifying oversight of gold and crypto under a single enforcement framework. Stricter reporting, Travel Rule enforcement and a national data hub signal a more aggressive, data-centric approach to tracking “gray money” across both traditional and digital assets.
The latest Senate CLARITY Act draft would allow stablecoin rewards tied to usage, such as payments, wallets and staking, while banning yield paid simply for holding tokens. The proposal reflects a compromise between fostering crypto innovation and addressing banking sector concerns over deposit-like products.
Crypto funds saw $454 million in outflows last week as fading hopes for a March Fed rate cut cooled investor risk appetite. Bitcoin absorbed most of the selling, while select altcoins and European funds continued to attract inflows. The data points to caution rather than capitulation, with markets increasingly sensitive to macro policy signals.
A criminal probe into Fed Chair Jerome Powell is reviving concerns over political influence on monetary policy, adding a new narrative tailwind for Bitcoin’s non-sovereign appeal. While sentiment indicators hint at a potential market bottom, professional traders remain cautious on BTC in the near term, favoring selective exposure elsewhere in crypto markets.