Crypto Weekly Market Wrap January 26: Regulation Clashes, ETF Milestones, and Global Policy Shifts

The crypto industry entered the final week of January with high-stakes policy shifts, institutional moves, and unexpected shakeups. From Trump’s pro-crypto stance at Davos to the ABA’s stablecoin crackdown, the week offered a dense mix of political, regulatory, and market developments shaping digital assets. Let’s discuss key developments that made headlines last week. 

ABA Pushes to Ban Stablecoin Yields in 2026

The American Bankers Association has put stablecoin rewards as the top agenda for 2026. The group expressed its objections to the increasing role of interest-bearing stablecoins compared to traditional deposits.

Bank of America CEO Brian Moynihan warned earlier that up to $6 trillion in deposits would move to crypto options. ABA noted that this pattern puts lending capacity at risk, especially in smaller banks. Meanwhile, the industry leaders expect a potential clash between federal regulators and decentralized finance providers in the coming months.

The new stance of the ABA may affect congressional debates regarding stablecoin frameworks. Legislators could reexamine bills limiting interest issuance based on dollar-backed tokens. These talks come after a year of intense competition among fintechs over deposit flows.

Trump Affirms Crypto Support at Davos

President Donald Trump reiterated his backing of digital asset policy reforms. He said during a Davos panel that he would sign crypto legislation as early as possible. He also positioned digital finance as a national security priority. Trump further noted that the inability to be the leader in crypto and artificial intelligence may negatively affect the U.S. strategic position.

BREAKING: 🇺🇸 President Trump says he hopes to sign crypto bill soon. pic.twitter.com/kT4nwlPjDq

— Bitcoin Magazine (@BitcoinMagazine) January 21, 2026

The remarks of the president were a call to action, especially as Congress advanced towards a more comprehensive crypto market structure bill. Advisors who are closer to the administration expect the White House to urge the lawmakers to act more quickly. The bill has also been supported by some Republican members in recent weeks.

Bitcoin Reserve Strategy Moves Ahead

At Davos, American Treasury Secretary Scott Bessent spoke about Bitcoin reserves. He confirmed that the Strategic Bitcoin Reserve Initiative is still in operation under the current administration. Bessent said that the government would keep accumulating confiscated Bitcoin holdings. The suspension of the BTC sales by federal agencies was the first step. The intention is to incorporate tokens that are recovered into long-term digital reserves.

The approach indicates a change in federal asset management. The shift to strategic custody over liquidation is an indication of increased confidence in the value proposition of Bitcoin. Bessent also reiterated that asset integration will be preceded by judicial procedures.

Vitalik Buterin Doubles Down on Digital Privacy

Last week, Ethereum co-founder Vitalik Buterin addressed the crypto community in a post. In 2026, he called on users to stop depending on centralized tools. Buterin claimed to have switched to open-source platforms, leaving Google and Gmail. To communicate, he now resorts to Signal and urges others to do the same. Additionally, he replaced Google Maps with OpenStreetMap.

The push aligns with his vision of computational self-sovereignty. He noted that blind reliance on the “mainstream tools” compromises the principles of Web3. Buterin also drew attention to the collapse of Liberty Reserve as a cautionary tale.

Strategy Adds Over $2B in Bitcoin Holdings

Strategy confirmed that it purchased 22,305 additional BTC at approximately $2.13 billion. The average price of purchase was $95,284 per coin. The company is now in possession of 709,715 BTC with this recent purchase. Its total investment has reached $53.92 billion, and the average entry cost is $75,979 per coin.

Strategy has acquired 22,305 BTC for ~$2.13 billion at ~$95,284 per bitcoin. As of 1/19/2026, we hodl 709,715 $BTC acquired for ~$53.92 billion at ~$75,979 per bitcoin. $MSTR $STRC $STRK $STRF $STRD $STRE https://t.co/6hpAeOxp2I

— Strategy (@Strategy) January 20, 2026

PumpFun Launches Hackathon and Funding Program

PumpFun introduced a new investment program called Pump Fund and a $3 million hackathon. The initiative will facilitate 12 teams to develop tokenized projects. Every chosen project will be allocated 250,000 at a valuation of $10 million. The applicants should possess a functional product, issue a token, and have at least 10% of their supply. The project is intended to reward transparency and community-first design in crypto.

Meanwhile, the structure of the funding round was highly praised by developers. Many consider it a grassroots product construction in a market that has become immersed in speculative hype.

WLFI to Host Forum with Top Financial Leaders

World Liberty Financial announced its inaugural World Liberty Forum. The event will be hosted in Mar-a-Lago on 18 February 2026. Among the expected attendees are the chairman of Goldman Sachs, David Solomon, and CFTC chairperson Michael Selig. The participants will discuss innovation in the context of crypto, artificial intelligence, and global financial systems.

Moreover, the Trump-affiliated organization will announce new partners at the forum. Organizers added that the topics will include regulation, geopolitics, and infrastructural development. WLFI characterized the event as a milestone towards the broader ambitions of the project.

Vietnam Approves Crypto Exchange Licensing Pilot

The Ministry of Finance in Vietnam announced the beginning of its pilot licensing program for digital asset trading platforms. Applications will be overseen by the State Securities Commission of the country under Decision №96/QD-BTC. The applicants have to be domestic companies and have a threshold of paid-in capital of VND 10 trillion, or approximately $380 million. In addition, the program is based on the rules established in Government Resolution №05/2025/NQ-CP.

South Korean Prosecutors Lose $48M in Seized Bitcoin

The Gwangju District Prosecutors’ Office in South Korea reported a loss of a substantial amount of Bitcoin. The funds, estimated at $48 million, were lost in a suspected phishing scam. An internal check indicated that the private key credentials were breached through a malicious website.

JUST IN: 🇰🇷 South Korean prosecutors search for "lost" Bitcoin

– Prosecutors say a “significant” amount of BTC was lost while in state custody
– Loss likely occurred mid-2025, possibly via phishing
– Authorities refuse to disclose how much Bitcoin is missing pic.twitter.com/BexowaFnlX

— Bitcoin Archive (@BitcoinArchive) January 22, 2026

The office acknowledged that it could not verify the magnitude of the loss as a whole, but rumors suggested that it might be more than 70 billion won. The case casts doubts on how the government handles digital evidence. Critics demanded better crypto asset custody protocols in law enforcement agencies.

Hong Kong Association Pushes Back Against New Rules

Hong Kong’s HKSFPA expressed its opposition to tighter crypto asset regulations aimed at fund managers. The group, in a formal response, claimed that the abolishment of 10% de minimis exemption would suppress innovation.

At the moment, asset managers are permitted to invest up to 10% in crypto without special licensing. The new regulation would mandate full registration in case of a 1% allocation. The association further remarked that this regulation would increase the costs and discourage experimentation. The members highlighted the importance of proportionate frameworks to facilitate institutional adoption.

Russia Proposes Lighter Licensing for Crypto Exchangers

The Bank of Russia announced its plan to ease licensing of crypto exchangers. The goal is to drag more firms out of the gray zone and into compliance. New regulations would separate crypto exchangers from securities market entities. Authorities will impose customized standards of compliance to facilitate the approval process.

Regulators also intend to establish prudential limits in order to avoid spillover risks. The bill is expected to be completed by July 2026. It will come into effect in July 2027.

India Bans Privacy Coins on Crypto Platforms

The Indian Financial Intelligence Unit issued new guidelines prohibiting privacy coins on local crypto platforms. The move is aimed at tokens such as Monero, Zcash, and Dash. The FIU identified these assets as high risk because of the capacity to hide a source of transactions. It also blocked exchanges to block mixers and unhosted wallet services. In addition, platforms should increase customer due diligence and be more vigilant about wallet activity.

India bans Monero ($XMR), Zcash ($ZEC), and Dash ($DASH).

India's Financial Intelligence Unit (FIU-IND) has issued a directive to registered cryptocurrency exchanges and platforms, requiring them to halt deposits, withdrawals, and trading of privacy-focused coins like Monero…

— MartyParty (@martypartymusic) January 23, 2026

Dogecoin ETF Debuts on NASDAQ via 21Shares

A new Dogecoin ETF was introduced on NASDAQ under the ticker TDOG. The fund is issued by 21Shares, and it exposes investors to direct DOGE. Dogecoin is available to investors via regular brokerage accounts. The fund has an annual fee of 0.50%, charged in DOGE. All holdings are secured one-to-one by physical custody. Furthermore, 21Shares collaborated with the House of Doge to introduce the product.

UBS Plans Crypto Access for Wealth Clients

UBS is set to provide crypto trading to a select group of private banking clients. The strategy will involve exposure to Bitcoin and Ethereum via regulated partners. Access will be restricted to Swiss clients, with a possibility of expansion in the future. The bank stated that increasing demand among the high-net-worth individuals prompted the decision.

UBS will do an assessment of the custody and compliance procedures prior to the roll-out of the service. This will represent a major change in the institutional integration of crypto, should it be approved.

U.S. Agencies Push for Regulatory Harmony

On January 27, SEC Chairman Paul Atkins and CFTC Chairman Michael Selig will conduct a joint event, aiming at harmonizing crypto policies. The meeting will be held in the CFTC headquarters and will be livestreamed. The two leaders highlighted the importance of eliminating confusion due to overlapping jurisdictions.

NEXT WEEK: We are partnering with the @CFTC to hold a joint event on harmonization and U.S. financial leadership in the crypto era.

The event, held at CFTC headquarters, will be open to the public and livestreamed on our website.

— U.S. Securities and Exchange Commission (@SECGov) January 22, 2026

They also claimed that old regulations are slowing innovation and disadvantaging U.S. companies. The discussion between the two chairmen will be moderated by Crypto in America journalist Eleanor Terrett.

BitGo Goes Public on NYSE with BTGO Ticker

Digital asset custody company BitGo went public on January 22. The company is now listed on the NYSE with the ticker BTGO. BitGo termed the move as a mainstreaming of digital asset finance. BitGo was established in 2013 and focuses on institutional custody and infrastructure. The company has been at the forefront of securing large crypto holdings.

Trump Media Sets Date for Token Distribution

Trump Media announced February 2 as the record date of its upcoming token distribution. To qualify, shareholders should hold at least one DJT stock. The tokens, which were developed in collaboration with Crypto.com, will not represent equity. They can, however, provide access to features in Truth Social or Truth+. Distribution shall be in accordance with the SEC, and tokens will not be transferable. The company further encouraged investors to verify their eligibility by registering or using brokerage settings.

Ledger Eyes $4 Billion IPO on NYSE

Ledger, a hardware wallet company, is considering a public listing. The company is targeting a valuation of $4 billion, according to the report. The IPO will be conducted at the NYSE. Moreover, the offering will be managed by Goldman Sachs, Jefferies, and Barclays.

❗️@Ledger eyes U.S. IPO at a $4B+ valuation: @FT

Hardware #wallet maker #Ledger is preparing for a potential U.S. #IPO, reportedly working with Goldman Sachs, Jefferies, and Barclays on the deal, which could take place as early as this year pic.twitter.com/hjJQcnXxfh

— Charged Ventures (@ChargedVentures) January 23, 2026

Nasdaq Seeks ETF Options Rule Change

Nasdaq submitted a proposal to remove trading restrictions on Bitcoin and Ethereum ETFs. This change would impact products of BlackRock, Grayscale, and others, should it be approved. The exchange requested the SEC to waive the 30-day review. New regulations would harmonize crypto ETF options with the current ETF regulations. The proposal aims to facilitate market fairness and consistency. By the end of February, the SEC will make the decision regarding the change.

Grayscale Seeks Spot ETF Status for NEAR Trust

Grayscale submitted a filing to convert its NEAR Trust into a spot ETF. The proposal would transfer the fund out of OTC trading to NYSE Arca. The trust currently holds less than $1 million in NEAR tokens. Coinbase will deal with custody, whereas BNY Mellon will facilitate transfers. The company remarked that staking can be considered at a later date, provided that the conditions are met.

Crypto ETP filings continue to come across the SEC's desk. https://t.co/wJhFQcGMtM

— James Seyffart (@JSeyff) January 20, 2026

FCA Finalizes Crypto Firm Guidelines in UK

The UK Financial Conduct Authority entered the last phase of its crypto regulation process. It provided a guideline regarding the consumer duty of digital asset firms. Feedback is open until March 12. The regulator will also roll out its permissions application gateway by September 2026.

Binance Files MiCA Application in Greece

The world’s largest crypto exchange, Binance, filed for a MiCA license in Greece. The move comes prior to the July 1 EU deadline. The company established a local entity to facilitate the process. Moreover, it is collaborating closely with the financial authorities in Greece to finalize the application.

Digital Asset Investment Products Market Overview

Digital asset products saw $1.73 billion leave the market last week, marking the sharpest retreat since November 2025, as per CoinShares’ latest report. The largest outflows came from the United States, totaling nearly $1.8 billion, with additional minor withdrawals from Sweden and the Netherlands.

Bitcoin led the retreat, shedding $1.09 billion, while Ethereum followed with $630 million in redemptions. Other assets like XRP also saw exits, though Solana stood out with $17.1 million in new capital.

🚨 UPDATE 🚨

DIGITAL ASSET INVESTMENT PRODUCTS SAW $1.73B IN NET OUTFLOWS
LARGEST WEEKLY WITHDRAWALS SINCE NOVEMBER 2025!#Crypto #DigitalAssets #MarketTrends #Outflows pic.twitter.com/YMCiF05DdR

— Crypto News Hunters 🎯 (@CryptoNewsHntrs) January 26, 2026

Interestingly, Switzerland, Germany, and Canada posted inflows, suggesting regional differences in investor outlook. Short Bitcoin funds saw a slight $0.5 million inflow, showing some traders are still hedging. Meanwhile, Binance and Chainlink posted modest inflows, reflecting selective optimism despite the downturn.

Bitcoin Price Performance

Bitcoin experienced a rocky performance last week as it recorded a decline of more than 5%. During that period, the asset traded in a range between $94k and $86k. Moreover, its market capitalization declined to $1.75 trillion, while the trading volume surged to $45 billion.

Looking at the technical indicators on the weekly chart, BTC continues to correct further downwards. The price is still trading below the middle Bollinger Band at $99,082. Should the current trend hold further, the price could drop further toward the key support around $75,013.

Meanwhile, the 14-day Relative Strength Index (RSI) is recovering from the oversold region, currently hovering around the 40 level. The RSI could climb to the neutral zone in case the selling pressure eases, which could also see BTC’s price movement reverse from the continuous downtrend.