Key Developments This Week
- •US Senate delays the CLARITY Act, extending regulatory uncertainty.
- •Bitcoin breaks $94,000 as long-term holders refuse to sell.
- •Banks complete cross-border tokenized bond settlements using fiat and stablecoins.
- •Prediction markets hit a record $701.7 million in trading volume.
- •Ripple secures preliminary approval for a Luxembourg EMI license ahead of MiCA.
This week, the cryptocurrency market experienced significant activity on two fronts: notable price strength and ongoing regulatory pressure. Bitcoin surged past $94,000, a rise supported by the steadfast refusal of long-term holders to divest. Concurrently, institutional interest in tokenized finance deepened, evidenced by bank-led settlement trials and IPO filings. Meanwhile, governments across Europe, Africa, and other regions continued to tighten enforcement measures. With prediction markets achieving record volumes and Ripple advancing its strategy concerning the Markets in Crypto-Assets (MiCA) regulation, it appears that the next phase of cryptocurrency evolution is gradually taking shape.
In this weekend's roundup, we delve into the key market trends, regulatory risks, and institutional movements that are shaping the future of cryptocurrency into 2026. We focus on the developments that are most impactful.
Lead Story: US Senate Delays CLARITY Act Markup, Prolonging Regulatory Uncertainty
Senate committees have postponed the markup of the Digital Asset Market CLARITY Act to the final week of January. This delay is intended to secure bipartisan support, as divisions persist over issues concerning stablecoins, DeFi regulation, and the oversight responsibilities of the SEC and CFTC. The postponement slows the momentum of a bill designed to define the structure of crypto markets and federal authority, thereby extending regulatory uncertainty into 2026.
Why it matters: This decision could significantly influence whether comprehensive US crypto regulation advances in 2026 or remains stalled. The outcome will shape innovation, compliance efforts, and investor confidence within the industry.
Other News Making Waves
Markets & Trading
- •Bitcoin breaks $94K as long-term holders stay put
Bitcoin climbed toward $97,500 after surpassing the $94,200 resistance level, indicating a resurgence of bullish momentum. On-chain data reveals that the Value Days Destroyed (VDD) metric is near 0.53, suggesting that long-term holders are largely refraining from selling their assets. This low selling pressure implies that the current rally is driven by genuine demand rather than short-term speculative trading.
- •Retail traders return to Bitcoin and Ether as altcoin rallies fade
Following a substantial liquidation event in October, retail investors have quickly shifted their focus back to Bitcoin and Ether. Altcoin rallies have become notably shorter, reflecting diminished trader conviction and a more cautious risk appetite. Reports indicate that this shift signifies retail investors prioritizing safety and capital preservation, adopting a strategy more aligned with institutional approaches. While market confidence is improving, altcoins are still experiencing a slow recovery as 2026 progresses.
- •SHIB exchange balances drop 80 trillion as whales accumulate
Centralized exchanges have seen withdrawals of 80 trillion SHIB tokens since December, reducing balances from 370.3 trillion to 290.3 trillion tokens. Significant wallets have moved 82 trillion tokens, thereby granting whales greater control over the supply. The reduction in exchange liquidity is expected to limit immediate selling pressure, potentially benefiting long-term holders. Analysts suggest this strategic move, possibly linked to Ethereum's Pectra upgrade and the growth of Web3, could signal upcoming bullish cycles, despite potential short-term volatility.
On-Chain & Investor Behaviour
- •On-chain data indicates muted Bitcoin exchange flows and a Spent Output Profit Ratio (SOPR) near 1, suggesting patient, long-term holding behavior.
- •A governance dispute between Aave DAO and Aave Labs has led to increased volatility in AAVE, even as whales have been accumulating the token.
Institutions, Payments & TradFi–Crypto Integration
- •Swift and several major banks have successfully completed a trial for settling tokenized bonds using both fiat currencies and stablecoins across multiple platforms.
- •Singapore Gulf Bank has partnered with J.P. Morgan Payments to facilitate 24/7 USD clearing services through its Wire 365 platform.
Corporate & Industry Developments
- •Ripple has obtained preliminary approval for an Electronic Money Institution (EMI) license in Luxembourg, a move that advances its strategy for compliance with the Markets in Crypto-Assets (MiCA) regulation.
- •KRAKacquisition Corp, an entity backed by an affiliate of Kraken, has filed for a $250 million Initial Public Offering (IPO) on Nasdaq, with a focus on crypto infrastructure.
- •Prediction markets have reached a record trading volume of $701.7 million, with Kalshi leading the activity.
Regulation & Policy Watch
- •The US Senate Banking Committee has delayed its proposed crypto market structure bill to continue bipartisan discussions.
- •Coinbase has withdrawn its support for the CLARITY Act, expressing concerns that it could negatively impact Decentralized Finance (DeFi), stablecoins, and consumer privacy.
- •The UK government has abandoned plans for mandatory digital identification for employment checks following public backlash.
- •Pakistan is reportedly exploring the use of a USD1 stablecoin for facilitating cross-border payments.
- •France has issued a warning that crypto firms operating without a license risk shutdowns ahead of the MiCA deadline.
Market Movers: Winners and Losers
Top 5 Gainers 📈
- •Pirate Chain +167.08%, from $0.225643 to $0.602642
- •DebtReliefBot +193.92%, from $0.00011344 to $0.00033342
- •Kled AI +98.98%, from $0.02080839 to $0.04140528
- •Dash +113.82%, from $37.84 to $80.91
- •River +110.53%, from $11.87 to $24.99
Top 5 Losers 📉
- •UCHAIN -49.48%, from $1,802.58 to $910.71
- •Lava Network -36.38%, from $0.124882 to $0.079453
- •Prom -13.57%, from $7.22 to $6.24
- •Lighter -35.93%, from $2.95 to $1.89
- •Power Protocol -35.80%, from $0.227408 to $0.145997
Data source: CoinGecko
Project Spotlight: Visa Enables Global Stablecoin Payouts via BVNK Partnership
Visa has partnered with UK-based BVNK to allow merchants to receive payments in USDC and USDP across 26 countries, with the capability for instant conversion into over 45 local currencies. This integration utilizes Visa Direct and BVNK’s regulated infrastructure to expedite payouts for contractors, gig workers, and e-commerce operators, while simultaneously reducing costs by up to 80% compared to traditional wire transfers.
Why It Matters: This partnership bridges traditional finance with blockchain technology, making stablecoins a viable option for global payments and demonstrating their increasing utility in real-world business transactions.