CryptonewsCom

The illicit on-chain money laundering ecosystem has expanded rapidly over the past five years, growing from roughly $10 billion in 2020 to more than $82 billion in 2025, according to Chainalysis’ latest 2026 Crypto Crime Report.

In the next preview chapter of our 2026 Crypto Crime Report, we examine how Chinese-language money laundering networks processed $16.1 billion in illicit crypto funds in 2025 (about $44 million per day across 1,799+ active wallets).

Read the full analysis here:… pic.twitter.com/0Jla3ce5X1

— Chainalysis (@chainalysis) January 27, 2026

Chainalysis said the sharp increase reflects the growing accessibility and liquidity of cryptocurrencies, alongside a shift in how laundering activity is conducted and who is facilitating it.

The firm noted that laundering services have become more sophisticated, industrialized and increasingly embedded in global criminal networks.

Chinese-Language Networks Now Account for 20% of Known Laundering

Chainalysis found that Chinese-language money laundering networks (CMLNs) have increased their share of attributed illicit laundering activity to around 20% in 2025.

These networks have also become a key endpoint for scam proceeds. Chainalysis noted that CMLNs now consistently launder more than 10% of funds stolen in pig butchering scams, as criminals shift away from centralized exchanges, which can freeze assets.

Since 2020, inflows to identified CMLNs have grown 7,325 times faster than those to centralized exchanges, far outpacing growth in DeFi-related laundering and intra-illicit transfers.

Chainalysis said Telegram-based services operating in Chinese-language channels now account for a disproportionate share of the global laundering landscape.

CMLN Ecosystem Processed $16.1B Through 1,799 Wallets

Chainalysis identified six major service types within the CMLN ecosystem, which together processed $16.1 billion in inflows during 2025. The number of active entities has risen sharply reaching more than 1,799 active on-chain wallets last year.

The report highlights the speed at which these operations scale. “Black U” services reached $1 billion in processing volume in just 236 days, while other typologies such as OTC desks and money mule networks scaled over longer periods.

Chainalysis estimates the ecosystem is processing nearly $44 million per day showing the industrial capacity of these networks.

Guarantee Platforms Anchor a Sophisticated Underground Market

At the center of the ecosystem are “guarantee platforms,” which function as marketing and escrow hubs connecting laundering vendors with buyers. Chainalysis said services such as Huione and Xinbi have dominated this market, even as enforcement actions disrupt individual accounts.

Vendors offer a wide range of laundering techniques, including running point brokers, money mule “motorcades,” informal OTC services, Black U discounted illicit crypto sales, gambling-linked laundering, and mixing and swapping-as-a-service.

Chainalysis noted that these networks demonstrate resilience, often migrating across platforms when challenged, while maintaining operational continuity.

Enforcement Actions Highlight Growing National Security Threat

Recent sanctions and advisories have drawn attention to the national security risks posed by laundering facilitation networks. Chainalysis pointed to actions including OFAC’s designation of the Prince Group, FinCEN’s rule targeting Huione Group, and advisories on Chinese money laundering networks.

Experts cited in the report warned that crypto has enabled rapid cross-border movement of illicit funds. Chainalysis concluded that disrupting these networks will require coordinated public-private collaboration, combining blockchain analytics, intelligence sharing, and proactive targeting of underlying operators rather than individual platforms alone.

Chainalysis emphasized that on-chain transparency offers unprecedented visibility—but only if matched with global enforcement capacity and systemic cooperation.

The post Chinese-Language Money Laundering Networks Processed $16.1B in Illicit Crypto: Chainalysis appeared first on Cryptonews.

Wemade announced that Chainlink Labs, one of the primary contributing developers of the Chainlink oracle network, has officially joined the Global Alliance for KRW Stablecoin (GAKS), a coalition formed to expand real-world adoption of Korean won-backed stablecoins.

Chainlink Labs has joined the Global Alliance for KRW Stablecoins (GAKS) led by WEMADE, a 600M+ user platform.https://t.co/PdTxmFvSbj

The alliance is advancing stablecoin standards in Korea by leveraging Chainlink's data, interoperability, compliance, & privacy standards. pic.twitter.com/QPTuTH4mEo

— Chainlink (@chainlink) January 27, 2026

Launched in November 2025, GAKS was created to accelerate the development of a trusted KRW stablecoin ecosystem while ensuring global regulatory compliance with Korean financial standards.

Wemade said Chainlink Labs will strengthen the alliance’s technical credibility and support the establishment of institutional-grade digital asset infrastructure across Korea.

Wemade Expands Standards and Infrastructure Support

Through GAKS, Wemade is working to advance technical standardization and enhance the infrastructure needed to support stablecoin adoption at scale.

With Chainlink Labs joining the alliance, Wemade said it will gain support in building global-level standards and improving the reliability of KRW stablecoin frameworks.

Alliance members will also have opportunities to leverage the Chainlink platform for key tokenized asset use cases, reflecting the growing importance of stablecoins in broader onchain finance initiatives.

Wemade noted that Chainlink will play a pivotal role in ensuring KRW stablecoins maintain data integrity, transparency, and stability aligned with global financial market expectations.

Chainlink Adds Institutional Expertise to Korea’s Stablecoin Push

Wemade highlights Chainlink’s position as the leading oracle platform powering the convergence of traditional finance with onchain markets.

Chainlink infrastructure has been adopted by major financial institutions including Swift, UBS, Euroclear, Mastercard, and Fidelity International. The network also supports key government datasets, demonstrating its growing role across both enterprise and public-sector adoption.

Wemade said Chainlink’s experience in powering the majority of DeFi applications makes its expertise a valuable addition as Korea develops next-generation stablecoin infrastructure.

Alliance Grows After Chainalysis, CertiK, and SentBe

Chainlink’s inclusion follows recent additions to GAKS, including Chainalysis, CertiK, and SentBe, broadening the alliance’s coverage across compliance, security, fintech, and data infrastructure.

“Chainlink’s participation marks a significant milestone for GAKS in securing global-level technical excellence and trust,” said Kim SukWhan, Vice President of Wemade. “Through close collaboration with Chainlink, we will continue to build a sound KRW stablecoin ecosystem.”

Johann Eid, Chief Business Officer at Chainlink Labs, said the alliance represents a key step for Korea’s digital asset sector.

“Wemade and the GAKS alliance are building critical infrastructure for the next phase of digital assets in Korea,” Eid said. “Chainlink is providing industry expertise and opportunities for GAKS members to leverage the Chainlink platform as they continue to develop stablecoin and tokenized asset initiatives in the Korean and APAC region.”

Wemade said it will continue accelerating KRW stablecoin adoption through partnerships with specialized global firms, advancing technical standardization and building trust in Korea’s emerging stablecoin market.

The post Chainlink Labs Joins Wemade’s Korea KRW Stablecoin Alliance appeared first on Cryptonews.

If you’re starting a new crypto project, picking the right exchange for your first token listing is important. Listing your token alone doesn’t mean you’ll succeed. Even though launching is easier now, it’s still hard to stand out, earn trust, and keep things moving.

For founders at the Pre-Seed and Seed stages, the exchange you choose affects how investors, partners, and the market see your project. The right exchange helps with early liquidity, building a community, and raising funds. A good fit supports your growth, while a poor choice can hold you back.

This article covers what early-stage teams look for when picking their first exchange and why some choose platforms like P2B.

Why the First Listing Plays a Critical Role

Crypto is crowded, with thousands of new tokens launching every year, and attention is spread thin. Investors often look at which exchange a new token first appears on.

Many founders run into a problem. Top exchanges offer more visibility and liquidity, but they usually want to see some traction, an active community, and trading history first. Early-stage teams often find it hard to get listed on these platforms right away.

That’s why some projects turn to exchanges that focus on early growth. These platforms have requirements and processes that better fit startups working to build their presence, P2B says.

Practical Criteria When Evaluating an Exchange

Founders today focus more on long-term sustainability than on how quickly they can list or how many chains an exchange supports. The exchange’s track record is important, as it shapes how people see your project at launch. Platforms with a solid history and strong security offer a more stable place for early trading.

Market positioning and liquidity depth are also key. Exchanges with active trading and a wide range of users help projects reach more investors. Platforms with strong ties to regulated markets, like the EU, are often better for teams aiming for long-term growth. Early-stage teams juggle product development, tokenomics, community building, and fundraising. Exchanges that simplify onboarding and offer coordinated services allow founders to focus on execution instead of logistics.

A Model-Oriented Toward Early-Stage Projects

Exchanges like P2B are designed to help projects launch their first token, the team says. They often have flexible onboarding terms, especially for liquidity, which can be a big challenge for startups with small budgets.

These platforms may let teams adjust service options based on their stage of development. This flexibility helps projects that are still working on their market strategy or building a community. Many projects start on mid-tier exchanges and move to bigger ones as they grow. This shows that the first listing is often a starting point, not the end goal.

Launching a token means handling fundraising, marketing, setting up liquidity, and technical work all at once. If these parts aren’t coordinated, things can get out of sync and make it harder to enter the market.

To help with this, some exchanges offer bundled services that include listing, fundraising tools like IEOs, marketing, and liquidity support. For early-stage teams, this setup makes it easier to coordinate and lowers the risk of missing key steps.

Cost matters too. Full launch support on big platforms is often too expensive for Pre-Seed or Seed-stage teams. Some exchanges offer lower-priced packages, so startups can follow a full go-to-market plan without using up resources needed for future growth.

For many founders, the first listing is about preparing, not growing quickly. Building a trading record, showing community activity, and keeping liquidity are things bigger exchanges look for later. Creating a controlled environment for these early signs can help you reach a wider market later. While no exchange can guarantee you’ll move to Tier-1 venues, a well-managed first listing makes your project readier for future chances.

Conclusion

In a crowded market, your first exchange choice shapes your project’s early path. Founders now value stability, flexibility, and strong support more than before.

Early-stage teams often look at exchanges like P2B because they focus on helping new projects enter the market, offer flexible services, and have experience with startups, the team says. If you’re planning your first listing, comparing these platforms with your long-term goals can help you build a more structured and sustainable go-to-market plan.

The post Key Factors to Consider When Choosing an Exchange for Your First Token Listing appeared first on Cryptonews.

Tether has officially launched USAT, a federally regulated, dollar-backed stablecoin built specifically for the U.S. market under the new GENIUS Act framework.

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

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

— Tether (@tether) January 27, 2026

The token, issued by Anchorage Digital Bank, marks Tether’s formal entry into America’s emerging federal stablecoin regime and signals a major shift in how digital dollars may operate inside the United States’ regulated financial system.

Announced on 27 January 2026, the launch follows earlier disclosures about the project’s design and the appointment of former White House Crypto Council Executive Director Bo Hines as CEO of Tether USAT.

USAT is now available to U.S. users seeking a stablecoin structured to comply with America’s dedicated federal oversight model.

A Stablecoin Built for America’s New Federal Framework

USAT has been developed to operate within the GENIUS Act’s new federal stablecoin framework, offering institutions a dollar-backed token issued through a nationally chartered bank.

Unlike USDT, which continues to operate globally and is progressing toward GENIUS Act compliance, USAT is purpose-built for the U.S. market and its increasingly digital payment infrastructure.

Tether described the launch as a milestone not only for the company but for the trajectory of the U.S. dollar in a digital era, as countries compete to shape the future of money.

By combining the scale of USDT with federal-grade regulatory expectations, USAT aims to set a new benchmark for trust and transparency.

Anchorage Digital Bank Issues USAT at Institutional Scale

Anchorage Digital Bank, N.A., America’s first federally regulated stablecoin issuer, is the official issuer of USAT. The bank has built scalable infrastructure with on-chain transparency, deeply integrated risk management, and bank-grade compliance.

Tether emphasized that USAT is designed not simply to satisfy regulatory requirements, but to function reliably within them day in and day out at institutional scale. U.S.-regulated exchanges and banking partners are being lined up to support broad access across the American financial ecosystem.

Cantor Fitzgerald will serve as the designated reserve custodian and preferred primary dealer, providing secure asset management and clear visibility into reserves from day one.

Tether’s Growing Role in the Global Dollar Economy

The launch comes as Tether continues to reinforce its role as a major macroeconomic participant. Tether Group is now the 17th-largest holder of U.S. Treasuries globally, ahead of sovereign holders including Germany, South Korea, and Australia.

USDT remains the world’s most widely adopted stablecoin, powering the digital economy at scale and supporting the international use of the U.S. dollar for payments, commerce, and reserves.

“USAT offers institutions an additional option: a dollar-backed token made in America,” said Paolo Ardoino, CEO of Tether. “USDT has proven for more than a decade that digital dollars can deliver trust, transparency, and utility at a global scale.”

Availability Across Major Crypto Platforms

During the first phase of rollout, USAT will be available on Bybit, Crypto.com, Kraken, OKX, and MoonPay, expanding access for both institutions and retail users seeking a regulated digital dollar product.

“With the launch of USAT, we see a digital dollar that is designed to meet federal regulatory expectations,” said Bo Hines. “Our focus is stability, transparency, and responsible governance, ensuring that the United States continues to lead in dollar innovation.”

The post Tether Launches Federally Regulated USAT Stablecoin for U.S. Market Under GENIUS Act Framework appeared first on Cryptonews.

Japan’s Financial Services Agency has unveiled strict collateral requirements for stablecoin reserve assets, setting a remarkably high threshold that could limit which bonds qualify as backing for digital yen instruments.

The proposed rules mandate that foreign-issued bonds must carry top-tier credit ratings and come from issuers with at least 100 trillion yen ($650 billion) in outstanding debt, a bar few global entities can meet.

The draft standards emerged Monday as part of regulatory notices implementing the 2025 Payment Services Act amendments, establishing how stablecoin issuers may invest “specified trust beneficiary interests” under Japan’s evolving digital currency framework.

Japan opens public consultation on stablecoin reserves, seeking feedback on which bonds can back yen-pegged tokens.

Deadline Feb 27, 2026.

The message is clear: stablecoins are moving from experiment to regulated money. pic.twitter.com/iUhbGdUlQs

— Roxom TV (@RoxomTV) January 27, 2026

Japan Sets 100 trillion Yen As Minimum Bond Collateral

The proposed FSA notice restricts eligible backing assets to foreign bonds that meet dual criteria, favoring only the world’s largest sovereign and corporate issuers.

Qualifying bonds must achieve a credit risk rating of “1–2” or higher from designated agencies while originating from entities whose total bond issuance reaches the 100 trillion yen minimum.

Beyond collateral standards, new supervisory guidelines target banks and insurance subsidiaries offering cryptocurrency intermediation services.

Financial institutions must now explicitly warn customers not to underestimate digital asset risks simply because products carry a traditional banking brand.

The FSA also introduced screening requirements for businesses handling foreign stablecoins, demanding confirmation that overseas issuers will not directly solicit Japanese retail customers.

Regulators plan to coordinate cross-border with foreign authorities to monitor these instruments and their originators.

The consultation period runs through February 27, 2026, implementing Act No. 66 of 2025 that revised Japan’s settlement and electronic payment framework last June.

After public comments close, the rules will undergo final procedures before taking effect.

Stablecoins Reshape Japan’s $9 Trillion Bond Market

While the FSA tightens oversight, Japan’s emerging stablecoin sector is potentially set to transform the country’s sovereign debt landscape, with implications for the Bank of Japan’s (BOJ) influence over its $9 trillion Japanese government bond (JGB) market.

Source: Mof

JPYC, the Tokyo-based issuer of Japan’s first yen-pegged stablecoin, suggests that digital asset companies could become significant holders of government bonds as reserve requirements expand.

The company launched its yen-backed stablecoin on October 27 under Japan’s revised Payment Services Act, marking the nation’s inaugural legal framework for stablecoins.

Founder and CEO Noritaka Okabe told Reuters that stablecoin issuers might assume roles traditionally occupied by the BOJ, which has been reducing bond purchases following years of aggressive monetary easing.

“With the BOJ tapering bond buying, stablecoin issuers could emerge as the biggest holders of JGBs in the next few years,” Okabe stated, adding that while authorities could influence bond duration, controlling total holdings would prove challenging.

Currently, the BOJ dominates Japan’s JGB market, holding roughly 50% of the 1,055-trillion-yen market, followed by insurance companies and domestic banks. Foreign investors and public pensions represent smaller market shares.

Source: MacroMicro

Okabe proposed that stablecoin issuers could fill emerging gaps, with JPYC planning to allocate 80% of proceeds to JGBs and 20% to bank deposits.

Major Banks Unite for Yen Stablecoin Initiative

Despite strict regulations, Japan’s three largest financial institutions, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, are collaborating on a joint initiative to launch yen-backed stablecoins for domestic users.

The banking trio intends to promote settlements using pegged cryptocurrencies, challenging the market dominance of dollar-denominated stablecoins like USDT and USDC.

According to Nikkei, the banks will establish infrastructure enabling corporate clients to transfer stablecoins between entities in accordance with standardized protocols, initially focusing on yen-pegged tokens, with potential dollar-pegged versions planned for future deployment.

Japan’s Nomura Holdings and SBI Holdings are developing the first crypto ETF products, awaiting approval for listing on the Tokyo Stock Exchange. #JapanCryptoETF #NomuraHoldings #SBIHoldingshttps://t.co/zT14u2QbqK

— Cryptonews.com (@cryptonews) January 26, 2026

These developments align with Japan’s broader digital finance transformation, as cashless payment adoption surged to 42.8% in 2024 from just 13.2% in 2010.

Reports also indicate that Japan’s financial watchdog is considering allowing banks to purchase and hold digital assets such as Bitcoin for investment purposes before 2028.

The post Japan Proposes Strict Bond Standards for Stablecoin Collateral – Can Issuers Meet the Bar? appeared first on Cryptonews.

Bank of Korea Governor Rhee Chang-yong revealed South Korea is considering a new registration regime that would allow domestic institutions to issue virtual assets, while warning that won-denominated stablecoins could enable capital flow circumvention.

Speaking at the Asian Financial Forum in Hong Kong, Rhee emphasized that exchange rate volatility could trigger rapid shifts into USD stablecoins and large fund transfers.

The announcement comes as South Korean regulators remain deadlocked over comprehensive stablecoin governance, with the Financial Services Commission and Bank of Korea split on whether issuance should be limited to bank-led consortia.

Meanwhile, the won has faced mounting pressure from currency swings and Trump’s tariff threats, which pushed the exchange rate to 1,446.2 won per dollar on Monday.

Source: RTHK

Governor Flags Capital Control Concerns Over Stablecoin Launch

Rhee stressed that once launched, won-denominated stablecoins “might be used to circumvent capital flow control measures, especially when combined with US dollar stablecoins.”

He noted that USD stablecoins are widely used and readily available, with transaction costs far lower than using dollars directly.

The governor warned that when exchange rate fluctuations trigger market expectations, funds may flow rapidly into dollar stablecoins, leading to large-scale cash transfers.

He added that non-bank issuance of stablecoins makes regulation particularly difficult for authorities.

Despite these concerns, Rhee acknowledged that market pressure has forced authorities to allow South Korean residents to invest in overseas-issued virtual assets.

He explained that won-denominated stablecoins would primarily serve cross-border transactions, while tokenized deposits would handle more domestic payments.

Won Under Pressure as Trump Tariff Threat Compounds Volatility

The won-dollar rate closed at 1,446.2 won on Monday, rising 5.6 won after President Donald Trump threatened to increase tariffs on Korean automobiles, lumber, and pharmaceuticals to 25% from 15%.

Trump posted on Truth Social that the “South Korean’s legislature is not living up to its deal with the United States,” announcing the tariff hike in response.

Source: Truth Social

However, the currency’s losses proved limited as South Korea’s National Pension Service lowered its end-2026 foreign stock target to 37.2% from 38.9%, strengthening the won by as much as 2% to 1,433.3 per dollar following the announcement.

The welfare ministry said dollar demand was increasing with the pension fund’s growing size, while dollar supply in the onshore foreign exchange market was being outweighed by demand.

The KOSPI also rallied 2.73% to close at 5,084.85 on Tuesday despite Trump’s tariff threat, as investors bought the dip following Samsung Electronics’ 4.87% gain and SK Hynix’s 8.70% surge to a record high.

Min Kyung-won, a Woori Bank researcher, told the ChosunBiz that Trump’s statement “acts as a bearish factor for the won,” but added that the possibility of coordinated market intervention by US and Japanese foreign exchange authorities supports the currency’s upper range.

Regulatory Deadlock Stalls Stablecoin Framework Despite Market Momentum

The Bank of Korea has pushed for stablecoins to be issued only by consortia controlled by banks, insisting that lenders hold at least a 51% ownership stake to protect monetary stability.

The Financial Services Commission has resisted setting a fixed ownership threshold, warning it could sideline technology firms and slow innovation in digital payments.

Rhee emphasized at the Hong Kong forum that digital finance regulation should be strengthened, not relaxed, cautioning against forgetting the costs of the 2008 financial crisis.

He argued that South Korea’s fast payment system is highly developed and retail CBDCs do not offer significant advantages, though the central bank is conducting pilot projects with tokenized deposits and wholesale CBDCs.

South Korea’s comprehensive crypto law has been delayed to 2026 due to a dispute over who should be allowed to issue stablecoins.#Crypto #Regulationhttps://t.co/jKP9L9n63S

— Cryptonews.com (@cryptonews) December 30, 2025

The regulatory impasse persists despite strong market momentum, as South Korea ended its nine-year corporate crypto trading ban this month and passed amendments to the Capital Markets Act establishing legal frameworks for tokenized securities trading beginning January 2027.

Back in October, the Solana Foundation partnered with Wavebridge to develop a KRW-pegged stablecoin, while BDACS also launched KRW1 on Avalanche in September, with every token backed 1:1 by won held in escrow at Woori Bank.

The post South Korea Eyes Domestic Crypto Issuance as Governor Warns on Stablecoin Risks – What’s the Plan? appeared first on Cryptonews.

Gold’s surge past $5,000 an ounce and mounting uncertainty around U.S. crypto legislation are shaping a critical moment for digital asset markets, according to Bitwise Chief Investment Officer Matt Hougan.

Key Takeaways:

Gold’s surge above $5,000 reflects growing distrust in fiat currencies and centralized financial systems.

Institutional demand for assets beyond government control is reshaping how investors view both gold and crypto.

As trust in traditional institutions erodes, crypto’s self-custody and censorship-resistant features are gaining relevance.

In a note to clients on Monday, Hougan said the combination of rising demand for assets outside government control and fading confidence in near-term regulatory clarity could influence both crypto adoption and price action in the months ahead.

Gold has climbed sharply, gaining 65% in 2025 and another 16% so far in 2026, marking the first time it has traded above $5,000 per troy ounce.

Gold’s Surge Reflects Mounting Concerns Over Fiat Currencies

Hougan pointed out that roughly half of gold’s dollar-denominated value has been created in just the past 20 months, despite its thousands-of-years-long history as a store of value.

He argued the move reflects the long-term effects of expansive monetary policy, rising debt levels, and currency debasement, but also a deeper shift in investor behavior.

“It shows that people no longer want to keep all of their wealth in a format that relies on the good graces of others,” Hougan wrote.

Hougan linked the rally to a broader erosion of trust in institutions, accelerated by geopolitical events.

After the US froze Russia’s treasury assets in 2022 following the invasion of Ukraine, central banks doubled their annual gold purchases, he said, seeking reserves less exposed to external control.

More recently, German economists have urged the repatriation of gold held at the New York Federal Reserve, while a Norwegian government panel warned that sovereign wealth could face higher taxation, regulatory intervention, or confiscation.

The spiraling price of gold reflects two things:

1) Concerns about debt and debasement
2) The desire to self-custody wealth

Not enough people talk about the second force. It's really strong right now at the sovereign level.

— Matt Hougan (@Matt_Hougan) January 26, 2026

Against that backdrop, Hougan said crypto’s core characteristics are becoming more relevant. Assets such as bitcoin allow ownership without reliance on centralized intermediaries, while networks like Ethereum and Solana operate under rules that no single authority can alter.

Features often dismissed as jargon, including self-custody and censorship resistance, may take on greater importance as confidence in traditional systems weakens.

Odds of US Crypto Clarity Act Passage Slip to Around 50%

At the same time, Hougan flagged growing uncertainty around the Clarity Act, legislation aimed at cementing a pro-crypto regulatory framework in the US.

Prediction markets earlier this year placed the odds of passage near 80%, but those estimates have slipped closer to 50% following recent setbacks, including criticism from Coinbase CEO Brian Armstrong.

If the bill fails, Hougan warned that crypto could enter a multi-year “show me” period, where prices and adoption hinge on tangible, real-world use rather than expectations.

Passage, by contrast, could trigger a sharp rally as investors price in clearer growth paths for stablecoins and tokenized assets.

Hougan said he remains optimistic the legislation will pass, but cautioned that without it, the market should prepare for a slower, evidence-driven phase of growth.

The post Gold Rally Signals Fiat Distrust as Crypto Risks “Show Me” Phase: Bitwise CIO appeared first on Cryptonews.

The founder of the open-source AI assistant ClawdBot, now renamed Moltbot, has issued a public warning to the crypto community after scammers launched fake tokens using his project’s name, drawing in traders and triggering sharp losses.

Peter Steinberger said he has never issued a token, has no plans to do so, and has no connection to any cryptocurrency claiming affiliation with his work.

The fake token, $CLAWD, briefly gained traction among retail traders on Solana-based meme coin platforms, reaching an early market capitalization of around $16 million.

Momentum was short-lived; as soon as Steinberger publicly denied involvement, the market cap plunged from roughly $8 million to under $800,000.

NEW: After $CLAWD crashed from $8M to under $800K following its rebrand to @moltbot, the founder denied any involvement, saying he will never launch a token and that any project listing him as the owner is a scam. pic.twitter.com/arQ6aXLWj6

— SolanaFloor (@SolanaFloor) January 27, 2026

Steinberger made the statement after days of being contacted by crypto traders and promoters following the sudden appearance of meme coins branded around “ClawdBot.”

Founder Says Token Activity Is Hurting Software Project

In a post on X, he asked investors to stop contacting him and also stated that he would not take any fees or endorsements related to crypto launches.

To all crypto folks:
Please stop pinging me, stop harassing me.
I will never do a coin.
Any project that lists me as coin owner is a SCAM.
No, I will not accept fees.
You are actively damanging the project.

— Peter Steinberger (@steipete) January 27, 2026

This caution was issued due to the emergence of the impersonation accounts that were marketing a token called $CLAWD, which was displayed on Solana-based meme coin platforms.

The token briefly gained traction among retail traders, with some reporting early gains as hype spread across social media.

Traders posted on X that the incident was another instance of speculative AI-related tokens falling as soon as official dismissal was announced.

Several users accused the anonymous token deployers of serial rug-pull behavior, claiming similar projects had been launched and abandoned under different names.

The situation was compounded by a naming transition underway at the time. Steinberger said the ClawdBot project was forced to rebrand to Moltbot following trademark issues.

During the renaming process, mistakes with account migrations allowed third parties to squat on or take control of related GitHub and X handles.

Had to rename our accounts for trademark stuff and messed up the GitHub rename and the X rename got snatched by crypto shills.

That went wonderful.@moltbot it is.

— Peter Steinberger (@steipete) January 27, 2026

Those accounts were then used to impersonate the project and promote crypto tokens as if they were officially linked.

Steinberger said he is working with GitHub to recover the affected accounts and urged users to ignore any crypto-related claims tied to the project.

Viral AI Tool ClawdBot Faces Scrutiny After Security Warnings

ClawdBot, now Moltbot, gained attention earlier this month after going viral among developers.

The tool is an open-source, self-hosted AI assistant designed to run locally on a user’s machine and integrate with messaging platforms such as Telegram, WhatsApp, Discord, and Slack.

Unlike web-based chatbots, it is designed to retain long-term memory, execute commands, and automate tasks directly on the user’s system.

Steinberger, who previously sold software company PSPDFKit for about €100 million, returned to development to build the project as a privacy-focused alternative to cloud-hosted AI tools.

At the same time, cybersecurity researchers have raised concerns about unsafe deployments of ClawdBot by users unfamiliar with server security.

Blockchain security firm SlowMist and independent researchers reported that hundreds of ClawdBot gateway instances were exposed to the public internet due to misconfigured proxies.

SlowMist TI Alert

Clawdbot gateway exposure identified: hundreds of API keys and private chat logs are at risk. Multiple unauthenticated instances are publicly accessible, and several code flaws may lead to credential theft and even remote code execution (RCE).

We strongly… https://t.co/j2ERoWPFnh

— SlowMist (@SlowMist_Team) January 27, 2026

These setups potentially allowed access to API keys, chat logs, and command execution capabilities.

Researchers stressed that the issue stemmed from user configuration errors rather than a hidden exploit but warned that the risks were serious given the tool’s deep system access.

Those security warnings added to confusion as scammers used the project’s sudden visibility to market tokens to speculative traders.

The post Fake ‘ClawdBot’ AI Token Hits $16M Before 90% Crash — Founder Warns of Scam appeared first on Cryptonews.

The crypto market is up today – but just barely. The cryptocurrency market capitalisation is up by just 0.1% over the past 24 hours by the time of writing, meaning it’s largely unchanged. It still stands at $3.05 trillion, the same as yesterday. Also, 77 of the top 100 coins posted price increases. Moreover, the total crypto trading volume stands at $113 billion.

TLDR:

Crypto market cap is mostly unchanged on Tuesday morning (UTC);

77 of the top 100 coins and 5 of the top 10 coins have gone up;

BTC decreased by 0.1% to $87,702 and ETH rose 0.3% to $2,901;

BTC ‘teeters in the grip of bearish sentiment’;

The $90,000 level ‘has become a psychological battleground’;

Bitcoin’s pause is ‘a macro repricing, not a demand breakdown’;

Investors are ‘rushing to traditional safe-haven assets’ as geopolitical risks rise;

Markets await US tech earnings and the Fed interest rate decision;

Tom Lee argued that BTC and ETH could surge when gold and silver drop;

Both US spot BTC and ETH ETFs broke outflows streaks on Monday;

Strategy bought an additional 2,932 BTC in the 20-25 January period;

Crypto market sentiment remains unchanged in the fear zone.

Crypto Winners & Losers

On Tuesday morning (UTC), we find 7 of the top 10 coins per market capitalisation up and three down (not taking stablecoins into consideration).

Bitcoin (BTC) fell by 0.1%, currently trading at $87,702. It, too, like the market in general, is unchanged in a day.

Bitcoin (BTC)

24h7d30d1yAll time

Ethereum (ETH) appreciated just 0.3%, changing hands at $2,901.

The highest fall among the top 10 is 0.3% by Tron (TRX), now trading at $0.2942.

At the same time, Solana (SOL)’s 1% is the category’s highest increase. It currently stands at $123.

It’s followed by Binance Coin (BNB)’s 0.6%, now trading at $876.

Furthermore, of the top 100 coins per market cap, 77 have posted price increases today.

Pump.fun (PUMP) leads this list with a 24.7% rise to $0.003134.

Next up is Hyperliquid (HYPE)’s 22.6% to the price od $27.28.

Provenance Blockchain (HASH) is the only other double-digit increase, rising 19.3% to $0.02739.

Of the red coins, River (RIVER)stands at the top, having plunged by 32.6%, reverting nearly all yesterday’s gains. It now stands at $58.14.

The rest are down 5% and less per coin.

Investors across markets await a fresh batch of tech earnings reports coming from the US, as well as the decision by the US Federal Reserve on interest rates. It remains to be seen how – if at all – these will affect the crypto market specifically.

Meanwhile, Fundstrat managing partner Tom Lee argued crypto fundamentals remain intact despite recent underperformance and that BTC and ETH could surge when the gold and silver rally begins to cool.

BTC’s Psychological Battleground

Petr Kozyakov, co-founder and CEO at Mercuryo, commented that BTC “stands precariously” at about $87,000. It currently “continues to teeter in the grip of bearish sentiment.” As the week began, it fell to the $86,100 level in “frenetic Asian trading.”

Moreover, markets are in risk-off mode as gold and silver surge. This shows that investors are “rushing to traditional safe-haven assets amid increasing levels of geopolitical risk.”

Additionally, both retail and institutional crypto investors remain on the defensive, Kozyakov added. Retail-driven sectors and institutional participation have retreated.

Meanwhile, Jimmy Xue, co-founder and COO of Axis, argued that Bitcoin’s $90,000 pause is a “macro repricing, not a demand breakdown.”

More precisely, the current pause is a macro-driven repricing of the discount rate, Xue says, as “the market’s hope for an aggressive 2026 easing cycle has significantly cooled.”

The spot ETF inflows remain a resilient floor, he says. But they are currently acting as a “passive wall” and not an active engine of price discovery.

Per Xue, “the $90,000 level has become a psychological battleground where macro traders are taking profits to hedge against a restrictive Fed, even as long-term institutional accumulators continue to buy the dips.”

He concludes: “A signal of Fed ‘patience’ this week effectively removes the immediate liquidity injection the market was front-running, leading to a period of ‘tense calm.’ In an environment already shaped by geopolitical friction and trade uncertainty, this lack of fresh capital typically triggers ‘volatility by headline,’ where thin order books lead to sharper, news-driven price swings. Without a dovish pivot, expect liquidity to remain defensive and concentrated in the most established assets.”

Levels & Events to Watch Next

At the time of writing on Tuesday morning, BTC was changing hands at $87,702. It’s been a choppy trading day, especially in the first half, with the price falling to the low of $87,180 twice. It very briefly hit the intraday high of $88,763.

BTC fell 3.8% over the past seven days, trading in the $86,319-$91,178 range.

The $90,500-$91,200 zone now acts as resistance, having previously served as a support area. If BTC falls below $86,400, it could move to $84,400. But a move above that level would open doors to $89,500, $90,500, $93,300, and $95,500.

Bitcoin Price Chart. Source: TradingView

At the same time, Ethereum was trading at $2,901. It surged from the intraday low of $2,879 to the intraday high of $2,948, and it swiftly dropped from that level.

Over the past week, ETH is 6.4% in the red, moving between $2,801 and $3,108.

A move above $2,950 could allow the coin to move back above $3,000, followed by $3,070 and $3,120. Another stable rally would take it to $3,200 and $3,330. Yet, another drop would clear a path to the $2,750-$2,850 area, and subsequently $2,600.

Ethereum (ETH)

24h7d30d1yAll time

Meanwhile, the crypto market sentiment remained unmoved over the past day, holding firmly within the fear zone.

The crypto fear and greed index stands at 29 at the time of writing, the same level as yesterday.

While the level may continue dropping in the short-term, it – like the market in general – awaits further signals, be they internal or external.

Source: CoinMarketCap

ETFs Break The Red Streak

The US BTC spot exchange-traded funds (ETFs) started the week in green, breaking a five-day outflow streak. They added $6.84 million, with the total net inflow now standing at $56.5 billion.

Of the twelve ETFs, three saw inflows, and three posted outflows. BlackRock took in $15.93 million, followed by Grayscale’s $7.75 million and WisdomTree’s $2.79 million.

On the red side, Bitwise recorded $10.79 million in outflows, followed by Fidelity’s $5.83 million and Ark & 21Shares’ $2.91 million.

Source: SoSoValue

Moreover, the US ETH ETFs outperformed their BTC counterparts on Monday, posting inflows of $116.99 million. With this, they also broke a four-day red streak. The total net inflow climbed slightly to $12.42 billion.

Of the nine ETH ETFs, one saw outflows, and one saw inflows. BlackRock recorded $20.25 million in outflows.

However, at the same time, Fidelity took in $137.24 million, turning the day’s tides green.

Source: SoSoValue

Meanwhile, Michael Saylor’s Strategy reported another addition to its Bitcoin treasury. The company bought 2,932 BTC for approximately $264.1 million between 20 January and 25 January.

With the latest acquisition, Strategy now holds a total of 712,647 BTC, spending roughly $54.19 billion.

Strategy has acquired 2,932 BTC for ~$264.1 million at ~$90,061 per bitcoin. As of 1/25/2026, we hodl 712,647 $BTC acquired for ~$54.19 billion at ~$76,037 per bitcoin. $MSTR $STRC https://t.co/RooLfEvniX

— Michael Saylor (@saylor) January 26, 2026

Moreover, BlackRock applied to the US Securities and Exchange Commission (SEC) to launch the iShares Bitcoin Premium Income ETF.

Unlike products that track Bitcoin’s price, this type of ETF combines price exposure with a covered call strategy to generate regular income.

JUST IN: $14 trillion BlackRock files for a new iShares #Bitcoin Premium Income ETF.

BlackRock is embracing Bitcoin pic.twitter.com/6pKK9zaM9H

— Bitcoin Magazine (@BitcoinMagazine) January 26, 2026

Quick FAQ

Did crypto move with stocks today?

After several red days, the crypto market has posted a minor increase over the past 24 hours. Meanwhile, the US stock market started the week green. By the closing time on Monday, 26 January, the S&P 500 was up 0.5%, the Nasdaq-100 increased by 0.42%, and the Dow Jones Industrial Average rose by 0.64%. This comes ahead of a fresh batch of tech earnings reports, as well as the US Federal Reserve’s interest rate decision.

Is this rally sustainable?

Minor shifts in prices are normal and expected. However, the basis for the current increase is shaky and may not hold for long. We are likely to see additional pullbacks in the near-term. That said, incoming macro movements could push the prices higher.

You may also like:

(LIVE) Crypto News Today: Latest Updates for January 27, 2026

The digital asset market has shifted back into the green this Tuesday, spearheaded by a powerful recovery in the GameFi sector, which surged 4.64% over the last 24 hours. After a period of cooling, investor appetite for "Play-to-Earn" ecosystems has reignited, with Axie Infinity (AXS) delivering a massive 36.94% rally. This move comes as Bitcoin (BTC) reclaimed $88,000 level and Ethereum (ETH) pushed through $2,900, signaling a broader stabilization across the macro landscape. High-growth...

The post Why Is Crypto Up Today? – January 27, 2026 appeared first on Cryptonews.

Bitcoin is steady around $88,000 after a recent drop from its highs, and the timing stands out. Although the price seems cautious, institutional interest is growing. This period of consolidation is happening as asset managers shift from just holding Bitcoin to exploring yield-generating products linked to it.

This mix of stable prices near support and more institutional involvement leads traders and investors to ask: Is this pause a sign of exhaustion, or is it setting up for the next move?

BlackRock Expands Bitcoin Exposure With Income Strategy

BlackRock has applied to the US Securities and Exchange Commission to launch the iShares Bitcoin Premium Income ETF, marking another step in institutional Bitcoin adoption. Unlike products that only track Bitcoin’s price, this ETF combines price exposure with a covered call strategy to generate regular income.

JUST IN: $14 trillion BlackRock files for a new iShares #Bitcoin Premium Income ETF.

BlackRock is embracing Bitcoin pic.twitter.com/6pKK9zaM9H

— Bitcoin Magazine (@BitcoinMagazine) January 26, 2026

The fund will mainly invest through IBIT, BlackRock’s spot Bitcoin ETF, which manages about $68 to $70 billion in assets. In addition, the fund will sell call options on IBIT shares and distribute the option premiums to investors as monthly income.

This setup attracts institutions and conservative investors who want income instead of just price gains. In volatile markets, option premiums can be significant. Some analysts estimate annual yields of 8 to 12 percent when volatility is favorable, but returns are not guaranteed and gains are limited during strong rallies.

Key implications include:

Broader participation from income-focused investors

Increased liquidity in Bitcoin ETF options markets

Structural demand for IBIT shares

All these factors strengthen Bitcoin’s position as an asset for institutions, not just a speculative investment.

BTC Price Holds Support as Selling Pressure Fades

Technically, Bitcoin price prediction is bearish as BTC is trading around $87,600 and is consolidating after being rejected at $95,500. On the 2-hour chart, the price is still in a downward channel, limited by a trendline that has marked lower highs since mid-January.

Bitcoin Price Chart – Source: Tradingview

The previous support zone between $90,500 and $91,200 is now acting as resistance, limiting upward moves for now. Still, recent price action near $86,400 to $87,000 shows long lower wicks and small bodies, which suggests buyers are stepping in rather than giving up.

The 50-EMA has moved below the 100-EMA and is heading toward the 200-EMA, which shows momentum is slowing but not breaking down. At the same time, the RSI has bounced from oversold levels to the mid-40s, indicating that selling pressure is easing, even if confidence is still uncertain.

Bitcoin Outlook: Break Above $90K Could Reset the Trend

If Bitcoin stays above $86,400, the risk of further drops seems limited. The price could slowly rise toward $89,500, then test the downward trendline near $90,500. If it breaks above that, the next targets are $93,300 and possibly $95,500 if the recovery continues.

If BTC fails to hold support, attention would turn to $84,400. However, the current price action points to consolidation instead of a sharp drop. As more institutional products launch and volatility settles, this period looks more like accumulation than distribution.

If buyers regain momentum, Bitcoin’s current range could become the foundation for its next strong move, driven by steady capital flows rather than hype.

Bitcoin Hyper: The Next Evolution of BTC on Solana?

Bitcoin Hyper ($HYPER) is bringing a new phase to the BTC ecosystem. While BTC remains the gold standard for security, Bitcoin Hyper adds what it always lacked: Solana-level speed. The result: lightning-fast, low-cost smart contracts, decentralized apps, and even meme coin creation, all secured by Bitcoin.

Audited by Consult, the project emphasizes trust and scalability as adoption builds. And momentum is already strong. The presale has surpassed $31 million, with tokens priced at just $0.013635 before the next increase.

As Bitcoin activity climbs and demand for efficient BTC-based apps rises, Bitcoin Hyper stands out as the bridge uniting two of crypto’s biggest ecosystems. If Bitcoin built the foundation, Bitcoin Hyper could make it fast, flexible, and fun again.

Click Here to Participate in the Presale

The post Bitcoin Price Prediction: Trillion-Dollar Firm BlackRock is Launching a Bitcoin ETF That Prints Cash – How Will Institutions React? appeared first on Cryptonews.

Ethereum is showing signs of strain when handling data-heavy blocks weeks after its December Fusaka upgrade, raising concerns about whether the network is ready to support higher data throughput from layer 2 blockchains, according to new research from MigaLabs.

Key Takeaways:

Ethereum is failing to reliably process data-heavy blocks despite higher blob limits introduced by the Fusaka upgrade.

Blocks with 16 or more blobs show sharply higher miss rates compared with normal network conditions.

If layer 2 demand rises, these elevated miss rates could threaten Ethereum’s network stability.

The Fusaka hard fork was designed to expand Ethereum’s data capacity by allowing layer 2 networks to submit more “blobs,” a form of temporary data used primarily by rollups to post transaction information to the main chain.

The change was widely seen as a step toward cheaper and more scalable layer 2 activity.

Ethereum Blocks With Higher Blob Counts Face Higher Miss Rates

However, an empirical analysis published by MigaLabs suggests that blocks carrying higher blob counts are significantly more likely to be missed by the network.

The research draws on data collected since October 2025 and examines network behavior before and after Fusaka, as well as two subsequent Blob-Parameter-Only (BPO) updates that raised blob limits further.

MigaLabs, which has previously collaborated with Lido DAO and the Cambridge Centre for Alternative Finance, found that Ethereum is not coming close to using the expanded capacity.

Despite increases to the target blob count, most recently raised to 14, the median number of blobs per slot has actually fallen since the first BPO update.

High blob counts of 16 or more remain rare, appearing only a few hundred times out of more than 750,000 observed slots.

More troubling is what happens when blob counts do spike. The study shows that missed-slot rates rise sharply once blocks contain 16 or more blobs.

Tomorrow: Fusaka

Ethereum’s second major upgrade this year.

→ Feature highlight: PeerDAS – Unlocking up to 8x data throughput. For rollups, this means cheaper blob fees and more space to grow.

Learn more. https://t.co/3TOda5KjY2 pic.twitter.com/sEfeiTamy9

— Ethereum (@ethereum) December 2, 2025

While the baseline miss rate for slots with up to 15 blobs hovers around 0.5%, miss rates at higher blob counts range from 0.77% to as high as 1.79.

At the maximum observed level of 21 blobs, the miss rate was more than three times the network average.

These blobs are primarily submitted by large layer 2 networks such as Arbitrum and Base, which rely on Ethereum’s data availability to operate securely.

If demand from these networks increases and high blob counts become more common, the elevated miss rates could compound and pose risks to overall network stability.

MigaLabs Urges Pause on Ethereum Blob Increases Amid Rising Miss Rates

MigaLabs cautioned that while the sample size for very high blob counts is still limited, the pattern is consistent across all observed data points.

In its conclusion, the firm recommended against any further increases to blob capacity until miss rates at higher blob levels return to baseline and real demand begins to approach existing limits.

As reported, the Ethereum Foundation has elevated post-quantum security to a core strategic focus, forming a dedicated Post Quantum team and committing $2 million to the effort.

Announced by Ethereum researcher Justin Drake, the initiative will be led by Thomas Coratger alongside Emile, a contributor to leanVM.

The post Ethereum Struggles With Data-Heavy Blocks After Fusaka Upgrade, Research Finds appeared first on Cryptonews.

The line between sports and digital finance is blurred, and Toobit is one of the latest crypto exchanges to lean into that trend. The platform has announced its Elite Championship, a new trading campaign in collaboration with LALIGA, which offers traders a chance to compete for a total of 800,000 USDT in rewards.

The event runs from January 15 to February 28, 2026, and is open to participants across different experience levels. Instead of focusing purely on high-volume trading, the campaign is structured to reward a mix of performance, consistency, and community involvement.

Why This Campaign Stands Out

In contrast to traditional trading competitions that usually revolve around raw volume or capital size, Toobit’s Elite Championship puts the focus on percentage-based performance and user participation. This allows traders with smaller accounts to compete more fairly, while also encouraging regular activity rather than one-off trades.

Mike Williams, Chief Communication Officer at Toobit, explained that the campaign is meant to reflect the same competitive spirit found in professional sports, where preparation, timing, and strategy matter more than sheer size.

The partnership with LALIGA adds a cultural layer to the event, which ties trading performance to one of the most recognizable football brands in the world.

How the Elite Championship Is Structured

The campaign is divided into three different tracks, each targeting a specific way users interact with the platform.

One part revolves around everyday trading activity. By completing tasks such as making a first deposit, placing spot trades, or finishing daily challenges, users unlock mystery boxes. These boxes may contain rewards like LALIGA match tickets, signed jerseys, Toobit-branded merchandise, token airdrops, or trading trial funds. The idea is to make participation feel more engaging and less repetitive.

Another part of the campaign is performance-driven. Traders are ranked based on profit and loss percentage, with the top 200 participants sharing a prize pool that can grow to as much as 500,000 USDT, the team says. Since the pool expands as more traders join, the competition naturally becomes more attractive as the event progresses.

The third part focuses on social engagement. Through tasks on X and Telegram, managed via Gleam, users can earn smaller rewards of up to 200 USDT, as well as limited LALIGA memorabilia. Here, creativity and activity within the community matter just as much as trading results.

Traders can register via the campaign page, with the announcement page providing a full overview of the Elite Championship.

The Bigger Picture: Crypto and Football

Toobit’s partnership with LALIGA goes beyond a single campaign. As an Official Regional Partner of the Spanish league, the exchange is using football as a bridge to reach a broader audience, under the shared message “Play on a bigger stage.”

This includes educational resources tailored to local markets and access to experiences that go beyond standard crypto rewards, such as VIP matchday trips to Spain and signed collectibles.

The move also reflects a wider industry trend. Football currently accounts for roughly 43% of all crypto-related sports sponsorships, making it the most active sport in terms of crypto partnerships. The 2025/26 UEFA Champions League season alone features a record 48 crypto-linked deals, showing how deeply the two sectors are becoming connected.

What Traders Should Expect

For traders, the Elite Championship offers more than just a prize pool. It adds a competitive and interactive layer to normal trading activity, without forcing users into high-risk behavior or unrealistic expectations, the exchange says.

Some may approach it as a serious competition, others as a way to explore the platform more actively, while football fans may simply be drawn in by the LALIGA-related rewards. The structure allows for all of these entry points without making the event feel exclusive or inaccessible.

Registration is available via the official campaign page, while full event details are outlined on the announcement page.

About Toobit

Founded in 2022 and based in the Cayman Islands, Toobit operates as a global crypto exchange with a focus on derivatives trading, alongside spot markets and copy trading tools. The platform is registered as a Money Services Business under FinCEN.

Rather than centering its messaging around price predictions or profit claims, Toobit emphasizes infrastructure, liquidity, and a trading environment designed to support both new and experienced users.

All in all, crypto exchanges continue to compete, but campaigns like the Elite Championship suggest that Toobit is placing increasing weight on user experience and long-term engagement.

For more information about Toobit, visit:

Website | X | Telegram | LinkedIn | Discord | Instagram

The post Toobit Brings Trading and Football Together With Its LALIGA Elite Championship appeared first on Cryptonews.

Bitwise Asset Management, a global crypto asset manager, has launched a new onchain investor offering through non-custodial vault strategies on Morpho, an onchain lending network.

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

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

The quick details:

-… pic.twitter.com/pUz9Upk4lV

— Bitwise (@BitwiseInvest) January 26, 2026

The firm said its first vault strategy will target up to 6% annual percentage yield (APY) on stablecoins, with plans to expand into additional strategies over time. The launch reflects growing institutional interest in accessing decentralized finance (DeFi) yield opportunities through more structured and risk-managed products.

First Strategy Focused on Stablecoin Yield

Bitwise said its initial vault strategy on Morpho is designed to generate yield by investing in overcollateralized lending pools. The strategy currently targets an APY of around 6%, providing investors exposure to onchain fixed-income-style returns through transparent lending markets.

Vaults function similarly to a portfolio of lending positions, allocating capital across programmable strategies to earn digital yield. Bitwise said its approach will combine onchain infrastructure with professional oversight to help investors participate in DeFi markets.

Strategy and Risk Oversight Led by Jonathan Man

The vault curation and risk management will be led by Jonathan Man, CFA, Bitwise Portfolio Manager and Head of Multi-Strategy Solutions and DeFi Strategies.

“Decentralized finance offers compelling yield opportunities, but the complexity of managing onchain risk has kept many investors on the sidelines,” Man said.

“That’s why we’re so excited for Bitwise to enter vault curation. Bitwise provides value-add by layering professional guidance and risk management experience onto these non-custodial tools,” adds Man.

Bitwise said the strategy will draw on the expertise of its 140-person team of investment and technology professionals and the firm’s more than eight-year track record as a crypto specialist.

Morpho Highlights Institutional Demand for Onchain Infrastructure

Morpho provides programmable and non-custodial infrastructure for onchain lending and borrowing, with vaults operated through smart contracts that invest funds programmatically on behalf of users.

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

He added that Morpho Vaults are designed for institutional use, allowing professionally defined risk parameters to be expressed directly onchain.

“As major institutions like Bitwise recognise the value in diversified fixed-income strategies in digital assets, vaults are emerging as a core building block of onchain finance strategies,” Frambot said.

Vaults Positioned as Building Blocks of Onchain Finance

The launch comes as crypto firms increasingly frame vault strategies as a key component of the broader shift toward onchain financial markets.

Bitwise said it believes vaults offer investors a transparent way to earn digital yield while maintaining non-custodial control of assets. The company indicated more strategies are expected to follow as institutional participation in DeFi continues to expand.

The post Bitwise Launches Non-Custodial Onchain Yield Vaults on Morpho Targeting 6% APY appeared first on Cryptonews.

Senator Roger Marshall has agreed not to offer a controversial credit card swipe fee amendment during Thursday’s Senate Agriculture Committee markup of landmark crypto legislation, removing a major obstacle that threatened to derail the bill’s passage.

The Kansas Republican filed the amendment last week seeking to force payment networks to compete on swipe fees, mirroring his longstanding Credit Card Competition Act co-sponsored with Senator Dick Durbin.

However, Marshall agreed in private Saturday conversations not to call up the provision, which had pitted the finance industry against major retailers and jeopardized support from Republicans expected to back the underlying digital asset legislation, according to Politico.

Source: Politico

White House Clears Internal Obstacle as External Threats Mount

White House officials became directly involved in preventing the amendment’s consideration, with one source confirming the Marshall provision would have “jeopardized” passage of the crypto bill the administration is pressing to advance through committee.

Durbin, who co-sponsored the credit card measure alongside Senator Peter Welch, is not currently expected to offer the amendment at the markup, though no final decision has been made.

While the credit card dispute now appears resolved, the Thursday markup faces a potentially more serious threat from Washington’s looming budget crisis.

Congress is racing toward a partial government shutdown deadline this weekend, with Senate Democrats blocking a $1.3 trillion appropriations package following a deadly Minneapolis shooting by a Border Patrol agent.

The standoff threatens to furlough hundreds of thousands of federal workers and could disrupt the legislative calendar just as crypto legislation reaches a critical juncture.

Former Utah Governor Gary Herbert called the shutdown threat evidence of “a lack of leadership, a lack of ability to work together.“

Agriculture Bill Advances Despite Partisan Fractures and Timing Risks

Despite these challenges, the Agriculture Committee’s markup represents the first formal Senate vote on comprehensive legislation to reform the crypto market structure after months of delays across multiple committees.

The bill would expand the Commodity Futures Trading Commission’s authority over digital commodities, including Bitcoin, though Chairman John Boozman released the text without securing Democratic support after bipartisan negotiations collapsed.

“Although it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better,” Boozman said, acknowledging that “differences remain on fundamental policy issues.“

Senate Agriculture Committee advances crypto bill for January 27 markup without Democratic support as Banking delays CLARITY Act over stablecoin disputes.#ClarityAct #Stablecoinhttps://t.co/Wjz1vpYh5d

— Cryptonews.com (@cryptonews) January 22, 2026

The committee’s decision to proceed reflects growing urgency as alternative legislative paths have stalled.

The Agriculture Committee’s legislation has become the primary vehicle for crypto regulation after the Senate Banking Committee postponed its parallel CLARITY Act until late February or March, instead pivoting to housing legislation following President Trump’s affordability push.

Banking’s bill stalled after Coinbase CEO Brian Armstrong withdrew support over restrictions on tokenized equities and stablecoin rewards, calling certain provisions “catastrophic.”

Trump Pushes for Passage as Democrats Demand Ethics Guardrails

President Trump confirmed at Davos that he expects to sign crypto market structure legislation “very soon,” stating his administration is working to ensure “America remains the crypto capital of the world.“

His public pressure comes as Democratic opposition has intensified over ethics concerns, with Senator Adam Schiff demanding controls covering the White House and Senator Ruben Gallego calling ethics guardrails “a red line.“

Beyond partisan divisions, the Thursday markup must navigate the same budget crisis threatening to shut down parts of the federal government.

If Congress fails to pass the appropriations package by Saturday, agencies including DHS and the Pentagon would enter shutdown mode, potentially delaying legislative business and forcing senators to prioritize budget negotiations over crypto regulation.

Patrick Witt, White House Executive Director of the President’s Crypto Council, has urged immediate passage despite imperfect provisions, warning that delays risk “punitive legislation in the wake of a crisis, à la Dodd-Frank” under future Democratic control.

₿ Patrick Witt argues that “no bill is better than a bad bill” it is a “privilege” to say because of Trump's pro-crypto administration.#PatrickWitt #CryptoMarketStructureBill #CryptoLegislationhttps://t.co/KmaS7NL4cE

— Cryptonews.com (@cryptonews) January 21, 2026

“You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more,” Witt wrote.

Earlier this month, Investment bank TD Cowen also warned the legislation could slip to 2027 as lawmakers position for midterm elections, with full implementation potentially delayed until 2029.

The combination of shutdown risks, partisan ethics disputes, and electoral timing creates a narrow window for passage that Thursday’s markup may represent the industry’s best opportunity to secure regulatory clarity before political conditions deteriorate further.

The post Senator Shelves Card Fee Fight to Save Crypto Bill From Collapse – Will It Pass Now? appeared first on Cryptonews.

Australia’s financial regulator has identified regulatory gaps around digital assets as a critical risk for 2026, warning that rapid innovation in the crypto and fintech sectors continues to expose consumers and markets to unlicensed advice, misleading conduct, and exploitation of unclear regulatory boundaries.

The Australian Securities and Investments Commission flagged emerging financial sector participants, particularly in digital assets and payments, alongside users of artificial intelligence as priority areas requiring enhanced perimeter oversight.

ASIC said some entities actively seek to remain outside regulation, contributing to perceived regulatory uncertainty that demands clearer licensing requirements and stronger supervision.

Regulatory Perimeter Creates Enforcement Challenges

ASIC’s Key Issues Outlook 2026, released Tuesday, highlighted that rapid innovation by participants unfamiliar with financial services rules continues creating risks across the crypto sector.

The regulator noted that while some businesses currently operate legitimately outside existing frameworks, determining whether new product classes or services should fall within licensing regimes ultimately rests with the government.

The warning arrives as Australia’s crypto adoption rate reached 31% in 2025, up from 28% the previous year, placing the nation among the world’s most crypto-engaged populations.

Source: a16z

Self-managed superannuation funds have increased their crypto exposure sevenfold since 2021 to A$1.7 billion, while major exchanges, including Coinbase, prepare dedicated pension account services targeting the country’s retirement pool.

Despite this growth, regulatory fragmentation persists.

ASIC Chair Joe Longo warned in November that Australia risks becoming a “land of missed opportunity” unless it adapts to blockchain-driven tokenization that reshapes global markets.

“Australia must innovate or stagnate. Seize the opportunity or be left behind,” Longo said at the National Press Club, noting that J.P. Morgan told him their money market funds will be entirely tokenized within two years.

Government Advances Comprehensive Licensing Framework

Parliament is currently debating the Corporations Amendment (Digital Assets Framework) Bill 2025, introduced last November by Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino.

The legislation would require crypto exchanges and custody providers to obtain Australian Financial Services Licenses, bringing them under ASIC supervision, with potential penalties of up to 10% of annual turnover for rule breaches.

The bill creates two new license categories for digital asset platforms and tokenized custody platforms, focusing regulation on companies that control customer funds rather than on underlying technology.

Licensed firms must comply with ASIC standards for transactions, settlement processes, and asset custody, while small operators handling less than A$10 million annually would be exempt.

Australia has introduced its first full regulatory framework for crypto custody and exchange platforms that promises tougher oversight.#Australia #Cryptohttps://t.co/jzYWZ9Vk6I

— Cryptonews.com (@cryptonews) November 27, 2025

Mulino said the reforms target companies controlling customer assets and warned that “it’s currently possible for a company to hold an unlimited amount of client crypto without any financial law safeguards.“

The government projects the framework could unlock A$24 billion in annual productivity gains while strengthening investor protections.

Temporary Relief Bridges Regulatory Transition Period

While permanent legislation advances, ASIC has introduced temporary exemptions easing compliance burdens during the transition.

The regulator finalized class relief in December, allowing intermediaries to distribute certain stablecoins and wrapped tokens without separate licenses until mid-2028, provided they maintain proper records and offer Product Disclosure Statements to retail investors.

The relief extends to omnibus custody structures, widely adopted across traditional markets but previously restricted in crypto.

ASIC positioned the temporary measures as supporting responsible innovation while awaiting broader digital asset reforms addressing tokenized payments and custody frameworks.

ASIC has removed separate licensing requirements for intermediaries distributing stablecoins and wrapped tokens.#Australia #Cryptohttps://t.co/f3qXjkjyym

— Cryptonews.com (@cryptonews) December 11, 2025

The regulator also adopted a sector-wide no-action stance until June 2026, giving companies time to review updated guidance, lodge license applications, or adjust operations.

ASIC’s INFO 225 guidance confirmed that many stablecoins, wrapped tokens, tokenized securities, and digital asset wallets fall under existing financial product rules requiring AFS licenses.

Beyond digital assets, ASIC flagged nine other critical risks for 2026, including increased retail exposure to private credit markets, operational failures by superannuation trustees, cyber-attacks undermining market confidence, and potential CHESS infrastructure outages.

The regulator emphasized that global regulatory divergence is creating growing fragmentation that complicates compliance and risks uneven consumer protections across jurisdictions.

For now, Australia’s regulatory push aims to catch up with global competitors while addressing vulnerabilities that have left investors exposed to fraud, operational failures, and unclear legal protections.

The post Australia Flags Crypto Regulation Gaps as Major 2026 Risk – What Happens Next? appeared first on Cryptonews.

Tensions around market manipulation, meme tokens, and perceived favoritism have resurfaced on Coinbase-backed Layer 2 network Base, prompting its creator, Jesse Pollak, to publicly reject calls for the team to intervene in token prices.

In a post on X, Pollak said the Base core team would not “support the chart behind the scenes,” directly addressing community members who have urged the network to use internal capital to push specific tokens higher.

just to say it out loud: the @base core team will not "support the chart behind the scenes" — if what you mean is privately / behind the scenes coordinating and deploying capital to actively drive the price of an asset up in an attempt to get to a specific outcome. this would:

-…

— jesse.base.eth (@jessepollak) January 27, 2026

Pollak said privately coordinating or deploying funds to drive the price of an asset toward a desired outcome would disadvantage other tokens, undermine trust in the ecosystem, violate Base’s commitment to free and open markets, and likely break the law.

He added that while the team would continue to improve how it drives visibility and distribution for applications and assets built on Base, price discovery must remain organic and transparent.

Traders Question Base’s Missing “Flagship” Token

The comments came amid growing frustration among some traders who argue that Base lacks a breakout token capable of attracting sustained speculative interest.

A host of a popular Base-focused livestream said the network did not have “what it takes” to push a project into the hundreds of millions in market capitalization and suggested shifting attention to the chains.

No, this is a Base problem.

The Base trenches are starving for a real runner, yet the people at the top don’t seem to care.

And the fix isn’t even hard.

Pick a community.
Support the chart behind the scenes.
Give the chain something to rally around.

Watch sentiment flip and… https://t.co/93HP9nIXM4

— Bill- Late Night on Base (@latenightonbase) January 26, 2026

Other users pushed back, saying the issue was not unique to Base but shows a broader problem across crypto, where meme-driven speculation has become a zero-sum game dominated by short-lived pumps.

This isn’t a base problem.

This is a Memecoin casino problem, across all of crypto.

More than pvp ponzis we need newer positive sum games.

— Etheraider (@etheraider) January 26, 2026

Pollak’s response drew support from parts of the community, while others showed their disagreements over how networks should compete for attention.

Other users complained that Base had the option to rally around some of their tokens and failed to do so, citing examples of projects they thought could have been used as flagship assets.

Pollak recognized the frustrations but felt that in the long term it only results in recurring losses by manipulating prices, whereas fair markets enable the participants to learn, to adapt, and ultimately to prosper.

In his comments, he noted that Base remains to serve creators, builders, applications, and meme culture on the network, and the Base app is moving towards a more trading-oriented experience to highlight activity throughout the ecosystem.

At the same time, he drew a clear line between promotion and manipulation, saying that secret coordination to inflate prices is incompatible with Base’s role as open infrastructure and with Coinbase’s obligations as a U.S.-regulated public company.

Earlier Meme Token Controversy Still Haunts Base

The debate also revived scrutiny of earlier incidents that shaped perceptions of Base’s role in meme markets.

In 2025, Base faced backlash after its official X account posted “Base is for everyone,” followed by a tokenized version of the post minted on Zora.

@coinbase’s @base sparks controversy as a meme coin linked to its tweet surged to $17.1M before crashing 90%, raising questions about influencer responsibility.#Memecoin #BaseNetworkhttps://t.co/LsdudfhlIz

— Cryptonews.com (@cryptonews) April 17, 2025

Although Base said the token was a creative experiment and not an official product, the episode fueled accusations of implicit endorsement and intensified calls for regulatory scrutiny.

More broadly, pump-and-dump activity has been a persistent issue on Base, where low transaction costs and fast execution have made it easier for bad actors to deploy, hype, and exit tokens within hours.

Research during peak meme periods suggested that a significant share of newly launched Base tokens had severe security flaws or malicious features, including honeypot contracts and unlocked liquidity.

These dynamics have contributed to large losses for retail traders and reinforced demands for clearer standards.

Pollak’s statements appear aimed at distancing Base from those practices while leaving room for structured, transparent incentives.

I love and support every meme on base
I love and support every builder on base
I love and support every creator on base
I love and support every app on base

the @baseapp can and will continue to iterate and it's shifting to be more trading focused, so it can drive value to all…

— jesse.base.eth (@jessepollak) January 27, 2026

In replies to users, he said open systems such as competitions or clearly defined liquidity programs could be explored if they are implemented publicly and fairly.

The post Base Won’t ‘Pump’ Tokens: Jesse Pollak Slams Market Manipulation as ‘Illegal’ appeared first on Cryptonews.

The Australian Securities and Investments Commission (ASIC) said Tuesday that a Federal Court has slapped AU$14 million ($9.6 million) on Gold Coast-based BPS Financial for operating and promoting its ‘Qoin Wallet’ crypto product.

BPS Financial, the owner and operator of Block Trade Exchange, touted a crypto token called ‘Qoin’ and promoted a “non-cash payment” wallet linked to it.

The corporate regulator launched its first court action against the firm in 2022, alleging unlicensed conduct and the misleading promotion of crypto assets.

BPS Financial claimed that its self-issued cryptocurrency Qoin could be swapped for Australian dollars through other exchanges. It also noted that the Qoin wallet and company were regulated. However, BPS Financial does not hold a license in Australia.

The Federal Court said in 2024 that the company was involved in unlicensed conduct over almost three years for issuing Qoin crypto and promoting its wallet.

BPS Financial to Pay Penalties for Unlicensed Conduct, Misleading Statements

Per the Tuesday statement, the firm additionally made several false and misleading representations about the Qoin Wallet.

“Given the nature of these products, providers must have the appropriate licenses and authorizations,” said ASIC Chair Joe Longo.

The Court has ordered BPS Financial to pay its AU$14 million, split into two, according to the charges. This includes a AU$12 million penalty for misleading statements and a AU$2 million for unlicensed conduct.

“The size of these penalties underscores the seriousness of BPS Financial’s misconduct and is intended to send a strong message of deterrence to the digital asset industry,” Longo added.

Aussie Places Crypto Regulation Gaps in 2026 Risk Outlook Plan

The ASIC released major 2026 risk report on Tuesday, highlighting that crypto assets continue to create risks, including with “unlicensed advice, misleading conduct, and the exploitation of unclear regulatory boundaries.”

The regulator noted that the government should determine whether a new asset class should be brought within a licensing regime.

“Ensuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026,” it added.

The post Australian Court Penalizes BPS Financial Over Crypto Qoin Wallet Promotion appeared first on Cryptonews.

Prediction markets platform Kalshi has opened a new office in Washington, D.C., as it ramps up efforts to shape federal and state policy amid growing scrutiny of its products across the United States.

Key Takeaways:

Kalshi has opened a Washington office and hired seasoned policy veterans to deepen engagement with federal and state regulators.

The CFTC-regulated platform leads prediction markets with $6.58 billion in monthly volume.

State regulators continue to challenge Kalshi’s sports-related contracts.

The company hired veteran political strategist John Bivona as its first head of federal government relations, according to a recent announcement.

Bivona brings more than two decades of experience spanning political campaigns and federal agencies, including a stint as the first White House liaison at the Department of Homeland Security during the Biden administration.

He also previously served as chief of staff to former New York congressman Antonio Delgado and held senior roles at the Democratic Congressional Campaign Committee.

Kalshi Steps Up Policy Engagement as Prediction Markets Gain Traction

Kalshi said the move reflects its intention to engage more directly with policymakers as prediction markets gain traction.

The platform, which is regulated by the Commodity Futures Trading Commission, allows users to trade contracts tied to the outcome of future events, ranging from elections and economic data to entertainment and sports.

To strengthen its state-level outreach, Kalshi has also hired Blake Bee, a former senior manager of state and local public policy at Amazon.

Bee previously worked closely with state attorneys general and spent years at the National Association of Attorneys General, as well as in the Mississippi Attorney General’s Office.

Kalshi prepares for change in control of Congress; hires Democrat to lead DC lobbying efforts. pic.twitter.com/1qpce9v6JZ

— Mick Bransfield (@MickBransfield) January 27, 2026

Kalshi has emerged as the world’s largest prediction market by monthly volume.

The company reported $6.58 billion in trading volume in December, far outpacing rival Polymarket, which logged $2.28 billion over the same period. Trading activity surged last fall, coinciding with the start of the NFL season.

CEO Tarek Mansour said the platform processed roughly $441 million in volume in the first four days following kickoff.

Despite its rapid growth and federal license, Kalshi has encountered resistance from several US states over its sports-related contracts.

Regulators in states including Arizona, Tennessee, Connecticut and Massachusetts have argued that those offerings amount to unlicensed sports betting under state law.

Court rulings have been mixed. A federal judge in Nevada ruled last year that Kalshi must comply with the state’s gaming regulations, rejecting the firm’s argument that CFTC oversight overrides state authority.

Kalshi is appealing that decision. In contrast, a judge in Tennessee temporarily blocked state officials from stopping the platform’s sports contracts.

State Opposition to Prediction Markets Builds Over Consumer Concerns

State opposition to prediction markets has been building for months.

In 2025, the SWC urged the CFTC to prohibit sports event contracts, arguing that such products bypass state safeguards such as age verification, responsible gaming rules and anti-money laundering requirements.

As reported, a new legislation to limit the interactions between government officials and the prediction markets is being supported by more than 30 Democrats in the US House of Representatives, including former Speaker Nancy Pelosi.

The lure behind new restrictions is a controversial Polymarket bet, which started as a bet of $32,000 but eventually became more than $400,000 shortly before the unexpected detention of Venezuelan President Nicolás Maduro.

The bill proposed by the New York Representative Ritchie Torres is the Public Integrity in Financial Prediction Markets Act of 2026.

The post Kalshi Opens Washington Office to Step Up US Lobbying Efforts appeared first on Cryptonews.

Fundstrat managing partner Tom Lee believes Bitcoin and Ether are poised to play catch-up once the blistering rally in gold and silver begins to cool, arguing that crypto fundamentals remain intact despite recent underperformance.

Key Takeaways:

Tom Lee says Bitcoin and Ether could rally once the surge in gold and silver fades.

He argues crypto is lagging due to deleveraging and investor FOMO shifting toward precious metals.

Despite price weakness, Lee believes crypto fundamentals have improved since October.

Speaking on CNBC’s Power Lunch on Monday, Lee said digital assets should typically benefit from a weaker US dollar and a Federal Reserve that is moving closer to easing.

However, he noted that crypto markets have lacked a key driver this cycle as leverage across the industry has been largely wiped out.

Tom Lee: Gold and Silver FOMO Is Holding Back Crypto

“Crypto doesn’t have the leverage tailwind because the industry delevered,” Lee said, adding that as long as gold and silver continue to surge, investors are chasing metals instead.

“There’s a FOMO into buying that instead of crypto,” he said. Historically, Lee argued, periods where precious metals pause have often been followed by sharp rallies in Bitcoin and Ethereum.

The divergence has been stark in recent weeks. Gold prices hit a record high of $5,100 on Monday, extending gains to roughly 17.5% since the start of the year.

Silver has moved even more aggressively, climbing 57% year-to-date to peak at $110.

Analysts have linked the surge in precious metals to heightened geopolitical tensions, trade tariff threats and sustained weakness in the US dollar, all of which have driven investors toward traditional safe havens.

Lee said crypto markets are still dealing with the fallout from a major deleveraging event on Oct. 10, which he described as having “crippled many key players” across exchanges and market makers.

While the sector is “limping along,” he said the underlying fundamentals have improved meaningfully since then.

Bitcoin has struggled to reflect those fundamentals. The largest cryptocurrency is down roughly 30% from its October high and has failed to regain momentum above the $95,000 level, recently sliding back toward support near $86,000.

“The precious metal move has sucked a lot of the oxygen out of the room,” Lee said, adding that prices are lagging fundamentals rather than signaling deeper weakness.

Tom Lee-Linked Firm Buys $58M in Ether as Institutional Interest Grows

Lee’s confidence in Ethereum remains evident. On Monday, BitMine, an Ether-focused treasury firm linked to Lee, purchased another 20,000 ETH for $58 million, according to blockchain analytics firm Lookonchain.

Lee also said recent discussions at the Davos forum underscored growing interest from financial institutions in building on Ethereum and other smart contract platforms.

Not all analysts agree that dollar weakness alone will lift Bitcoin. CryptoQuant analyst GugaOnChain said recent ETF outflows show investors still favor gold during periods of stress.

“For BTC to thrive,” they said, “the weakness of the American currency must come from risk appetite, not from fear.”

The post Fundstrat’s Tom Lee Predicts Bitcoin, Ethereum Surge Once Metals Rally Fades appeared first on Cryptonews.

The European Central Bank (ECB) is pressing its case for a digital euro as both a consumer product and a strategic hedge, as Europe weighs how much of its everyday payments system should sit on infrastructure owned outside the bloc.

In a recent interview with Süddeutsche Zeitung, ECB Executive Board member Piero Cipollone boiled the pitch down to convenience.

“Quite simply: it’s easy. You can use it everywhere – in Germany and across the entire euro area.”

He said the project aims to be all-inclusive by design, including in small shops and for people without smartphones.

“Every retailer who accepts digital payments today will in future be required to accept the digital euro as well. And retailers will be pleased, because fees will fall significantly – after all, the ECB is providing the infrastructure.”

In September, Cipollone said a mid-2029 launch for the digital euro was a reasonable and realistic timeline.

In an interview with @SZ, Executive Board member Piero Cipollone explains that the digital euro will simplify payments for consumers, lower fees for retailers and provide a European infrastructure that fosters innovation https://t.co/0Q3heGUkTU pic.twitter.com/iWLkVtsQdy

— European Central Bank (@ecb) January 26, 2026

Payments Sovereignty Emerges As Core Case For Digital Euro

Cipollone framed it as an add-on rather than a replacement for existing methods, with basic use free. “The digital euro, by contrast, will be free for basic use. It will be like cash, but in digital form. We’re simply creating an additional option. Coins and banknotes will still be available; no one will be forced to switch.”

He then shifted from convenience to sovereignty, arguing that digital money should not depend on non-European technology. “Don’t you feel safer knowing that the money you pay with every day is based on European technology, meaning it is in European hands and does not depend on third countries?”

To make that point, Cipollone cited the International Criminal Court, where US sanctions cut judges off from card access. “Their US cards were cut off – limiting their ability to pay across Europe, because they were blocked by Visa and Mastercard. With a digital euro they could have continued to pay throughout the euro area.”

ECB Warns Foreign Providers Could Cut Access

He warned that reliance runs deeper than it looks, because national cards often route through international schemes for cross-border and online use, and some euro area countries lack domestic payment systems.

Cipollone argued the digital euro would create both the payments plumbing and the public money that flows through it, and he said the infrastructure could help European private solutions scale across borders.

That is where the foreign-dependence point becomes explicit. “Today US corporations own critical parts of the infrastructure and, in theory, they could cut us off. With a European infrastructure, we would own the “rails”. If one provider dropped out, Europe would have enough alternatives left.”

He also argued that speed matters, because standards and acceptance rules shape markets even before any launch date. “Every delay makes us more reliant on foreign payment systems.”

The post ECB’s Cipollone Pitches Digital Euro As Cash-Like Payments Tool To Cut Foreign Dependence appeared first on Cryptonews.