Efforts to reform US cryptocurrency regulation have hit another delay, as Senate senators pushed back the crucial markup of the CLARITY Act. The vote has been moved to the last week of January to secure bipartisan support.
Disagreements persist over stablecoin rewards, DeFi regulation, and regulatory authority between the SEC and CFTC. Without sufficient support, the bill risks stalling in committee and losing momentum for the year.
The CLARITY Act aims to bring structure to the US digital asset landscape, clarifying which tokens are classed as securities or commodities and expanding the CFTC’s supervisory role. It sets rules for market oversight and asset handling, providing legal clarity beyond the current enforcement-focused system.
The House passed its version in mid-2025, but the Senate has yet to agree on wording acceptable to all stakeholders. Delaying the markup gives Senate leaders time to refine the bill and rebuild support for potential 2026 reform.
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Fintech investment platform Betterment has confirmed a data breach after hackers gained unauthorised access to parts of its internal systems and exposed personal customer information.
The incident occurred on 9 January and involved a social engineering attack connected to third-party platforms used for marketing and operational purposes.
The company said the compromised data included customer names, email and postal addresses, phone numbers and dates of birth.
No passwords or account login credentials were accessed, according to Betterment, which stressed that customer investment accounts were not breached.
Using the limited system access, attackers sent fraudulent notifications to some users promoting a crypto-related scam.
Customers were advised to ignore the messages instead of engaging with the request, while Betterment moved quickly to revoke the unauthorised access and begin a formal investigation with external cybersecurity support.
Betterment has not disclosed how many users were affected and has yet to provide further technical details. Representatives did not respond to requests for comment at the time of publication, while the company said outreach to impacted customers remains ongoing.
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India’s Financial Intelligence Unit has tightened crypto compliance, requiring live identity checks, location verification, and stronger Client Due Diligence. The measures aim to prevent money laundering, terrorist financing, and misuse of digital asset services.
Crypto platforms must now collect multiple identifiers from users, including IP addresses, device IDs, wallet addresses, transaction hashes, and timestamps.
Verification also requires users to provide a Permanent Account Number and a secondary ID, such as a passport, Aadhaar, or voter ID, alongside OTP confirmation for email and phone numbers.
Bank accounts must be validated via a penny-drop mechanism to confirm ownership and operational status.
Enhanced due diligence will apply to high-risk transactions and relationships, particularly those involving users from designated high-risk jurisdictions and tax havens. Platforms must monitor red flags and apply extra scrutiny to comply with the new guidelines.
Industry experts have welcomed the updated rules, describing them as a positive step for India’s crypto ecosystem. The measures are viewed as enhancing transparency, protecting users, and aligning the sector with global anti-money laundering standards.
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Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.
Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.
The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.
Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.
Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.
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The UK’s Financial Conduct Authority has confirmed that all regulated crypto firms must obtain authorisation under the Financial Services and Markets Act. Both new market entrants and existing operators will be required to comply.
No automatic transition will be available for firms currently registered under anti-money laundering rules. Companies already authorised for other financial services must apply to extend permissions to cover crypto activities and ensure compliance with upcoming regulations.
Pre-application meetings and information sessions will be offered to help firms understand regulatory expectations and enhance the quality of their applications.
An official application window is expected to open in September 2026 and remain active for at least 28 days. Applications submitted during that period are intended to be assessed before the regime formally begins, with further procedural details to be confirmed by the FCA.
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Illicit crypto activity surged in 2025 as nation states and professional criminal networks expanded on-chain operations. Government-linked actors used infrastructure built for organised cybercrime, increasing risks for regulators and security teams.
Data shows that illicit crypto addresses received at least $154 billion during the year, representing a 162% increase compared to 2024. Sanctioned entities drove much of the growth, with stablecoins making up 84% of illicit transactions due to their liquidity and ease of cross-border transfer.
North Korea remained the most aggressive state actor, with hackers stealing around $2 billion, including the record-breaking Bybit breach. Russia’s ruble-backed A7A5 token saw over $93 billion in sanction-evasion transactions, while Iran-linked networks continued using crypto for illicit trade and financing.
Chinese money laundering networks also emerged as a central force, offering full-service criminal infrastructure to fraud groups, hackers, and sanctioned entities. Links between crypto and physical crime grew, with trafficking and coercion increasingly tied to digital asset transfers.
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Around $500 million in bonds issued by Telegram remain frozen within Russia’s financial settlement system following the application of international sanctions.
The situation reflects how global regulatory measures can continue to affect corporate assets even when companies operate across multiple jurisdictions.
According to reports, the frozen bonds were issued in 2021 and are held at Russia’s National Settlement Depository.
Telegram said its more recent $1.7 billion bond issuance in 2025 involved international investors, with no participation from Russian capital, and was purchased mainly by institutional funds based outside Russia.
Telegram stated that bond repayments follow established international procedures through intermediaries, meaning payment obligations are fulfilled regardless of whether individual bondholders face restrictions.
Financial results for 2025 also showed losses, linked in part to a decline in cryptocurrency valuations, which reflected broader market conditions rather than company-specific factors.
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World Liberty Financial’s WLTC Holdings LLC has applied with the Office of the Comptroller of the Currency to establish World Liberty Trust Company, National Association (WLTC), a national trust bank designed for stablecoin operations.
The move aims to centralise issuance, custody, and conversion of USD1, the company’s dollar-backed stablecoin. USD1 has grown rapidly, reaching over $3.3 billion in circulation during its first year.
The trust company will serve institutional clients, providing stablecoin conversion and secure custody for USD1 and other supported stablecoins.
WLTC will operate under federal supervision, offering fee-free USD1 issuance and redemption, USD conversion, and custody with market-rate conversions. Operations will comply with the GENIUS Act and follow strict AML, sanctions, and cybersecurity protocols.
The stablecoin is fully backed by US dollars and short-duration Treasury obligations, operating across ten blockchain networks, including Ethereum, Solana, and TRON.
By combining regulatory oversight with full-stack stablecoin services, WLTC seeks to provide institutional clients with clarity and efficiency in digital asset operations.
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In the US, Morgan Stanley has moved to launch exchange-traded funds linked to Bitcoin and Solana, signalling that major banks are no longer prepared to watch the crypto market from the sidelines.
Filings submitted to the Securities and Exchange Commission show the bank intends to offer funds tied to the prices of both crypto assets, making it the first of the ten biggest US banks by assets to pursue crypto ETFs directly.
Interest from Wall Street has been strengthened by regulatory changes introduced under the Trump administration, which created clearer rules for stablecoins and crypto-related investment products.
BlackRock’s Bitcoin ETFs have already become a major source of revenue, encouraging banks to seek a more active role instead of limiting themselves to custody services.
The trend is expected to have implications for European investors. US-listed crypto ETFs cannot normally be sold to retail investors in the EU because they do not comply with UCITS requirements.
The shift suggests crypto has become too commercially significant for Wall Street institutions to ignore, with banks increasingly treating digital assets as part of mainstream financial services rather than a peripheral experiment.
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A significant shift away from global views on central bank digital currencies has been made with the decision to allow China’s digital yuan to earn interest starting in January 2026. Wallet balances will now accrue interest at demand deposit rates, marking a shift from the widely held view that retail CBDCs should function purely as digital cash.
Central banks in Europe and the United States have long argued against interest-bearing CBDCs, warning they could destabilise financial systems by drawing deposits away from commercial banks.
Institutions such as the European Central Bank, the Federal Reserve and the Bank for International Settlements have stressed that digital currencies should not become savings instruments.
China’s move, however, effectively repositions the digital yuan closer to a deposit-like form of money rather than a simple cash substitute.
The policy applies to verified individual and corporate wallets, while anonymous wallets remain excluded. Digital yuan balances are also now covered by China’s deposit insurance scheme, offering the same protection as bank deposits.
Analysts say these design choices, combined with China’s two-tier distribution model that keeps commercial banks as intermediaries, aim to limit risks of bank disintermediation while encouraging wider adoption.
China’s decision could influence global debates as dozens of countries continue to explore the use of digital currencies. While Europe remains committed to a non-interest-bearing digital € and the United States has formally banned a retail CBDC, China is testing whether an interest-paying digital currency can coexist with traditional banking.
The experiment is likely to be closely watched as policymakers reconsider what role digital money should play in future financial systems.
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