On January 19, Paradex’s perps decentralized exchange experienced a database migration issue that caused Bitcoin to display a $0 price, triggering a cascade of liquidations. The anomaly affected the Paradex blockchain, block explorer, bridge, and API, leading the exchange to force-cancel all open orders.

Paradex initiated a rollback to block 1,604,710, the last known correct state before the maintenance issue. According to the exchange, all accounts were restored to their pre-maintenance balances, and user funds were confirmed safe as recovery efforts continued. The exchange posted frequent updates on its status page throughout the process to reassure users.

Liquidations and Market Impact

The price glitch coincided with a period of heightened market volatility. Bitcoin had already dropped from over $95,000 to $92,284 in the 24 hours preceding the incident, reflecting broader market pressures.

The glitch amplified liquidations, with over $875 million in positions closed across Paradex, including $234 million in Bitcoin alone, according to CoinGlass data. Paradex’s perps protocol held approximately $641 million in open interest and recorded roughly $37 billion in trading volume over the previous 30 days, highlighting the scale of exposure to technical failures.

Analysts noted that thin liquidity during the Martin Luther King Jr. holiday and early trading in Asian markets likely exacerbated the impact of the glitch on leveraged positions.

Recovery and Institutional Context

By 5:00 a.m. ET, Paradex confirmed all services were operational. The episode underscores the operational risks inherent in decentralized perps exchanges, particularly those built on layer-2 networks like Starknet, where database integrity directly affects market stability.

Beyond immediate technical implications, the incident highlights how infrastructure issues can amplify price movements, creating liquidity stress across digital asset markets.

Crypto markets were also reacting to renewed US-EU trade tensions and a quieter global market environment due to holiday-thinned participation. Industry observers noted that while the exchange successfully contained losses, the event serves as a cautionary tale for risk management, stress testing, and monitoring protocols within high-leverage crypto trading ecosystems.

One year after Gary Gensler resigned as SEC chair, the agency’s approach to cryptocurrencies has changed markedly under Trump-appointed leadership. Acting Chair Mark Uyeda and later confirmed Chair Paul Atkins oversaw the dismissal of high-profile enforcement actions and investigations.

Among the earliest moves was the withdrawal of a 2023 civil case against Coinbase, followed by investigations into Robinhood Crypto, Uniswap Labs, and the cessation of the SEC’s appeal against Ripple stemming from its 2020 enforcement action.

These decisions coincided with the political backing of pro-crypto candidates and campaigns supported by companies like Ripple and Coinbase, prompting scrutiny over the agency’s impartiality and ties to industry interests.

Crypto Roundtables and Regulatory Context

Despite enforcement rollbacks, the SEC has continued engagement with the crypto sector through a series of 2025 roundtables. These sessions convened industry, legal, and policy experts to discuss topics including tokenization, decentralized finance, custody, and financial privacy. However, the practical impact of these discussions is potentially limited by ongoing legislative efforts.

The Digital Asset Market Clarity (CLARITY) Act, intended to provide structured guidance for digital asset regulation, passed the House in July 2025 but remains stalled in the Senate after Coinbase CEO Brian Armstrong withdrew support, highlighting ongoing friction between industry priorities and regulatory clarity.

Democratic Exodus and Institutional Implications

Gensler and Commissioner Jaime Lizárraga departed in January 2025, leaving Caroline Crenshaw as the sole Democratic voice at the SEC until her January 2026 exit. With no announced nominations to restore bipartisan representation, the agency now operates entirely under Republican leadership, reflecting a broader shift in US crypto policy.

Gensler has returned to MIT Sloan School of Management, continuing to publicly classify cryptocurrencies such as Bitcoin as “speculative” assets. The SEC’s pivot, coupled with pending legislation and ongoing industry engagement, signals a recalibrated regulatory environment with significant implications for market participants and institutional strategy.

The postponement of a planned markup for the Digital Asset Market Clarity Act, known as the CLARITY Act, has prompted renewed concern from leaders across the decentralized finance sector. The bill, which aims to establish a regulatory framework for digital asset markets in the United States, was delayed after Senate Banking Committee leadership announced a pause in proceedings. Industry participants now expect weeks of further debate before lawmakers return to the legislation.

Crypto advocacy groups and venture investors have used the delay to highlight provisions they say could negatively affect DeFi platforms and software developers. The DeFi Education Fund warned that proposed amendments could undermine decentralized technology by imposing compliance obligations that do not align with non-custodial systems. Several venture capital firms echoed those concerns, arguing that revisions are needed to protect open-source developers from regulatory exposure.

Developer Protections and DeFi Scope

A central issue for DeFi advocates is how the bill defines responsibility for compliance within decentralized systems. Representatives from major crypto investment firms have said the current draft leaves ambiguity around whether developers or infrastructure providers could be required to conduct customer identification, register with regulators, or meet standards designed for centralized intermediaries. They argue such requirements could discourage innovation or push development activity outside the United States.

Some industry figures have emphasized that the debate extends beyond stablecoin provisions, which have drawn attention from banking groups. Legal and policy experts aligned with DeFi have said the priority is establishing a market structure that allows decentralized protocols to operate without forcing them into frameworks built for traditional financial institutions. In their view, unresolved definitions in the bill could create long-term uncertainty for builders and investors alike.

Legislative Context and Institutional Pressures

The CLARITY Act has faced months of delays amid disagreements over decentralized finance, potential conflicts of interest, and the role of stablecoins in the financial system. The most recent pause followed public criticism from Coinbase Chief Executive Officer Brian Armstrong, who said the bill, as written, could restrict tokenized equities and stablecoin-related activities. Senate Banking Committee Chair Tim Scott characterized the delay as temporary, signaling that negotiations are ongoing.

Institutional dynamics continue to shape the debate, with some lawmakers pushing for tighter controls to address concerns around illicit finance, while others emphasize competitiveness and innovation. Senate Democrats have reportedly advocated amendments that would place additional limits on DeFi platforms, a stance that has drawn pushback from crypto-focused policy groups. As discussions continue, no new date has been set for the markup.

The outcome of the bill is closely watched by market participants, as it could influence whether the US remains a central hub for decentralized finance development. For now, the delay has created space for further negotiation, but it has also extended uncertainty for an industry seeking clearer regulatory boundaries.

Coinbase has started rolling out stock trading to a limited group of users, marking a significant step in its effort to build an all-in-one financial platform that spans cryptocurrencies, equities, and alternative assets. The initial offering allows customers to trade US-listed stocks using traditional market infrastructure, positioning the crypto exchange more directly against established brokerages and hybrid platforms such as Robinhood.

The stock trading feature is powered by Apex Fintech Solutions, which provides clearing and custody services, and is expected to expand to a broader user base in the coming weeks. Coinbase Chief Executive Officer Brian Armstrong has framed the move as a pragmatic bridge between traditional finance and blockchain-based markets, while acknowledging that fully tokenized equities remain a longer-term objective. According to Armstrong, regulatory coordination with the Securities and Exchange Commission will be essential before shares can be issued natively onchain with voting and dividend rights.

Platform Expansion and Competitive Landscape

The launch deepens Coinbase’s competition with firms like Schwab, Fidelity, and Robinhood, which already offer integrated access to stocks and digital assets. Unlike some rivals that rely on third-party issuers for tokenized equities in offshore jurisdictions, Coinbase has indicated it plans to develop such products internally once regulatory conditions allow. Market data shows growing interest in tokenized real-world assets, with transfer volumes for tokenized equities reaching roughly $2.4 billion over the past month.

Beyond stocks, Coinbase has been expanding into adjacent markets, including regulated prediction markets through a partnership with Kalshi. These initiatives align with Armstrong’s broader strategy to position Coinbase as a primary financial application, supported by stablecoin payments, developer tools, and its Base blockchain. The approach reflects a belief that traditional financial activity will increasingly migrate onto blockchain-based infrastructure over time.

Regulatory Headwinds and Institutional Context

Coinbase’s expansion comes amid ongoing regulatory debate in Washington over crypto market structure and tokenization rules. Armstrong recently withdrew support for a draft Senate banking bill, arguing it could restrict tokenized equities and stablecoin-related revenue models. The decision highlighted tensions between crypto firms, traditional banks, and tokenization specialists competing for influence over future market rules.

Despite the friction, institutional interest in digital assets continues to grow, supported by spot crypto exchange-traded funds and increasing experimentation with tokenized collateral. Coinbase management has said clearer regulation and rising institutional participation could reinforce its strategy, even as near-term uncertainty weighs on sentiment. The stock trading rollout underscores the company’s attempt to diversify revenue while navigating a complex and evolving regulatory environment.

Ethereum network activity has surged over the past month, driven by a significant influx of new users rather than increased participation from existing accounts. According to on-chain analytics firm Glassnode, the network’s “activity retention” metric nearly doubled, climbing from just over 4 million to around 8 million active addresses in 30 days. The increase reflects a rise in first-time interacting wallets, signaling broader adoption across the ecosystem.

Glassnode noted that activity retention measures whether users continue to engage with the network over time, providing a clearer view of sustained usage rather than short-lived spikes. The data suggests Ethereum is attracting new participants at a faster pace, reinforcing its role as core infrastructure for decentralized applications, payments, and stablecoin settlement.

Transactions Reach Record Levels

Daily transactions on Ethereum also climbed to an all-time high of approximately 2.8 million, marking a 125% increase from the same period last year. Data from blockchain explorers shows active addresses exceeding 1 million in mid-January, more than double year-ago levels. Analysts attribute much of the growth to rising stablecoin usage as transaction costs on Ethereum decline.

Lower fees have been supported by Ethereum’s scaling strategy, which pushes execution to layer-2 networks while maintaining settlement security on the main chain. This structure has allowed stablecoin transfers and decentralized finance activity to expand without materially increasing congestion on the base layer. Institutional participants have increasingly pointed to this model as a blueprint for scalable financial infrastructure.

Institutional and Macro Context

The rise in network usage comes amid improving sentiment toward Ethereum following a period of underperformance relative to other digital assets. Staking levels have continued to rise, with nearly 36 million ether now locked, tightening liquid supply while reinforcing network security. At the same time, steady inflows into ether-linked exchange-traded products have added a layer of institutional participation.

Competition among smart contract platforms remains intense, but Ethereum’s entrenched developer base, liquidity depth, and stablecoin dominance continue to differentiate it from rival networks. While market prices remain sensitive to broader macroeconomic conditions and risk appetite, the underlying growth in user activity suggests Ethereum’s utility-driven adoption remains intact as blockchain-based financial infrastructure matures.

Bitcoin could reassert itself as a leading macro asset despite lagging gold and US technology stocks last year, according to Arthur Hayes, co-founder of BitMEX. In recent commentary, Hayes framed Bitcoin’s performance primarily as a function of dollar liquidity rather than asset-specific fundamentals. He argued that tighter liquidity conditions in 2025 constrained crypto markets, while other sectors benefited from targeted policy support and capital allocation.

Hayes emphasized that Bitcoin’s underperformance relative to gold and the Nasdaq should not be viewed as a structural shift. Instead, he described it as a cyclical outcome driven by monetary conditions, noting that Bitcoin historically responds most strongly when dollar liquidity expands. In his view, the groundwork for such a shift is forming as policymakers and financial institutions reassess growth and funding priorities.

Liquidity Conditions and Monetary Policy

Central to Hayes’ thesis is the expectation that US dollar liquidity will increase meaningfully in 2026. He pointed to the potential expansion of the Federal Reserve’s balance sheet, easing financial conditions, and a gradual decline in borrowing costs as key contributors. Lower mortgage rates and looser credit standards could feed broader asset markets, including cryptocurrencies, as capital seeks higher returns.

Hayes also highlighted the role of commercial banks in financing government-backed strategic sectors. Increased lending tied to fiscal priorities could inject additional liquidity into the financial system, indirectly supporting risk assets. From a macro perspective, Bitcoin remains sensitive to these dynamics, acting as what Hayes describes as “monetary technology” whose valuation reflects expectations around fiat currency debasement.

Diverging Paths for Crypto, Gold, and Tech

While Bitcoin struggled in 2025, gold and US technology stocks posted strong gains. Hayes attributed this divergence partly to policy-driven capital flows into artificial intelligence and defense-related industries. He argued that government support and executive actions distorted traditional market signals, channeling investment toward favored sectors regardless of underlying returns.

Gold, meanwhile, benefited from inflation hedging demand and geopolitical uncertainty. Bitcoin, lacking similar institutional tailwinds during the period of tightening liquidity, fell behind despite maintaining its role as a hedge against long-term currency erosion. Hayes suggested that once liquidity conditions normalize, Bitcoin could compete more directly for capital currently allocated to gold and equities.

Institutional Context and Market Implications

From an institutional standpoint, Hayes’ outlook underscores Bitcoin’s evolving position within macro portfolios. Rather than trading purely on retail sentiment, Bitcoin increasingly reflects global liquidity cycles, fiscal policy, and banking system behavior. This aligns with broader trends in which digital assets are evaluated alongside traditional macro instruments.

Although Hayes stopped short of making explicit price forecasts, his analysis reinforces the view that Bitcoin’s long-term relevance is tied to monetary policy and systemic liquidity. As investors monitor shifts in central bank balance sheets and credit conditions, Bitcoin’s trajectory may once again hinge on forces well beyond the crypto-native ecosystem.

Solana Mobile has confirmed plans to distribute more than 1.8 billion SKR tokens to users of its Seeker smartphone as part of the first season of its ecosystem airdrop. The distribution is scheduled for Jan. 21 and will reward both end users and developers based on engagement with the device, the Solana dApp Store, and onchain activity. More than 100,000 users and 188 developers are expected to receive allocations in the initial phase.

According to Solana Mobile, users will receive approximately 1.82 billion SKR tokens, while developers will receive an additional 141 million tokens. An allocation tracker has been launched, allowing participants to view their expected rewards through their Seed Vault wallets. The company said the airdrop follows a tiered structure, with rewards ranging from 5,000 SKR to a maximum of 750,000 SKR per user.

Token Utility and Governance Design

SKR is the native token of the Solana Mobile ecosystem and is designed to function as both a utility and governance asset. The token is closely tied to the Seeker device, the company’s second-generation crypto-integrated smartphone, and is intended to support application discovery, device verification, and community governance. Users will be able to delegate tokens to Guardians, entities responsible for enforcing platform rules and curating applications.

Tokenomics data released earlier this month shows a fixed total supply of 10 billion SKR tokens. Thirty percent of that supply has been reserved for community airdrops, with roughly two-thirds of the initial allocation designated for Seeker users and developers. An additional 2.7 billion tokens will be unlocked at the token generation event and directed toward the community treasury, liquidity provisioning, and ecosystem growth initiatives.

SKR will be stakeable at launch, allowing users to earn rewards directly through the Seed Vault Wallet or via a web-based staking interface. This structure aligns with broader trends across crypto ecosystems that seek to incentivize long-term participation through staking and delegated governance models.

Mobile Strategy and Market Context

The airdrop comes as Solana Mobile seeks to differentiate itself in a competitive landscape where blockchain networks are increasingly targeting consumer hardware as a distribution channel. While the first-generation Saga phone struggled to gain traction, Seeker has seen stronger adoption, supported by improved hardware specifications and a lower price point of around $500.

Solana Mobile has reported more than 150,000 pre-orders for Seeker, with devices shipping to over 50 countries since August. The company’s approach reflects a broader institutional push to embed crypto services directly into consumer devices, reducing reliance on third-party platforms and app stores.

As mobile-first crypto usage continues to expand, the SKR airdrop positions Solana Mobile as an early experiment in aligning hardware adoption, developer incentives, and token-based governance within a single ecosystem. Market participants will be watching closely to see whether this model can sustain long-term engagement beyond initial incentives.

Germany’s DZ Bank, the country’s second-largest lender by assets, has secured regulatory approval to offer retail cryptocurrency trading under the European Union’s Markets in Crypto-Assets (MiCA) framework. The license, granted by Germany’s financial regulator BaFin, allows the Frankfurt-based bank to launch meinKrypto, a digital asset trading platform designed for individual customers of cooperative banks.

The platform will be integrated into the VR Banking App, which is widely used by Germany’s Volksbanken and Raiffeisenbanken. DZ Bank said the rollout will begin shortly, enabling participating cooperative banks to offer crypto trading directly to retail clients. The service will initially support trading in major cryptocurrencies, including Bitcoin, Ether, Litecoin, and Cardano.

Expansion Beyond Institutional Crypto Services

DZ Bank’s approval marks a shift from its earlier focus on institutional crypto services toward broader retail adoption. In 2024, the lender partnered with Boerse Stuttgart Digital to provide crypto infrastructure for professional and institutional clients. The meinKrypto platform extends those capabilities to private investors, reflecting growing confidence among traditional banks following the implementation of MiCA.

The service is aimed at self-directed retail investors and will not be integrated into advisory or wealth management offerings. Customers will be able to trade and custody digital assets entirely within the existing banking app, reducing reliance on external crypto exchanges. Cooperative banks must still apply individually for MiCA-related notifications before activating the service for their customers.

According to DZ Bank, the platform was developed specifically for the cooperative banking sector, allowing local institutions to offer crypto services without building proprietary infrastructure. This model mirrors broader European banking trends, where shared platforms are being used to manage compliance costs and operational complexity under new digital asset regulations.

Regulatory Clarity and Market Demand

MiCA has become a key catalyst for crypto adoption among European banks by establishing uniform licensing, custody, and consumer protection standards across the bloc. Germany has emerged as one of the most active markets under the framework, with several large financial institutions accelerating digital asset strategies since the rules came into force.

Interest from cooperative banks appears substantial. A September 2025 study by Genoverband found that more than 71% of Germany’s cooperative banks are considering offering crypto services to private customers. This demand reflects increasing client interest in digital assets, as well as competitive pressure from fintech platforms that already provide crypto trading alongside traditional financial services.

DZ Bank’s move positions the cooperative sector to compete more directly with online brokers and crypto-native firms while maintaining regulatory oversight and established customer relationships. It also underscores a broader normalization of crypto within Europe’s banking system, where digital assets are increasingly treated as standard financial instruments rather than experimental products.

While DZ Bank has not disclosed transaction fees or long-term expansion plans, the approval suggests that retail crypto trading is becoming a core component of banking strategies under MiCA. The rollout will be closely watched as a test case for how effectively traditional banks can integrate crypto services at scale.

BVNK, a global provider of stablecoin payment infrastructure, has entered a strategic partnership with Visa to support stablecoin-based pilot programs on Visa Direct, Visa’s real-time money movement network. Under the collaboration, BVNK will provide the underlying infrastructure enabling select Visa Direct customers to pre-fund payouts using stablecoins and deliver funds directly to recipients in digital dollars.

The integration allows businesses in approved markets to move funds without relying solely on traditional fiat settlement rails. Stablecoin payouts can be delivered directly into recipients’ digital wallets, offering expanded options for cross-border and off-hours payments. Visa Direct processes approximately $1.7 trillion in annual volume, positioning the pilot as a meaningful institutional test of stablecoins at scale.

Expanding Visa Direct’s Payment Capabilities

Visa has steadily increased its exposure to blockchain-based payment infrastructure as part of a broader strategy to modernize money movement. The partnership with BVNK builds on Visa Ventures’ investment in the company in May 2025 and reflects Visa’s interest in using stablecoins to address settlement speed, liquidity management, and global accessibility.

BVNK processes more than $30 billion in annual stablecoin transactions and specializes in enterprise-grade compliance, treasury management, and onchain settlement. By integrating BVNK’s technology, Visa Direct can offer clients the ability to fund payouts outside of traditional banking hours, including weekends and holidays, while maintaining oversight and operational controls expected by institutional users.

Institutional and Competitive Context

The partnership comes as global payment networks, banks, and fintech firms increasingly explore stablecoins as a complement to existing payment rails. Stablecoins are gaining traction for cross-border payouts, remittances, and treasury operations due to their near-instant settlement and reduced dependency on correspondent banking networks.

Visa’s move positions it alongside competitors testing similar capabilities, as payment providers seek to capture demand from global platforms, marketplaces, and financial institutions operating across multiple jurisdictions. The pilot approach reflects a measured rollout, focusing first on markets with demonstrated demand for digital asset payments before expanding more broadly.

From a macro perspective, the collaboration aligns with growing regulatory clarity around stablecoins in key jurisdictions, enabling large payment networks to experiment within defined compliance frameworks. While stablecoins remain a small share of global payment volumes, institutional pilots such as this signal a shift from exploratory testing toward practical integration within established financial infrastructure.

The rollout is expected to proceed gradually, with expansion determined by customer demand, regulatory conditions, and operational performance. For Visa and BVNK, the partnership represents a step toward embedding stablecoins into mainstream money movement rather than positioning them as a parallel system.

The Bank of Thailand has placed USDT trading under closer monitoring after identifying signs that stablecoin activity on domestic platforms may be linked to grey money flows. According to local media reports, central bank officials found that roughly 40% of USDT sellers active on Thai platforms are foreign participants who may not be authorized to trade in the country. The findings have prompted authorities to include stablecoins alongside cash, gold, and e-wallet transactions in expanded financial surveillance efforts.

While Thailand’s domestic crypto market remains relatively small, officials signaled that scale alone does not exempt digital assets from scrutiny. Daily crypto trading volumes average about 2.8 billion baht, compared with 10 billion to 15 billion baht in the foreign exchange market. Regulators argue that even modest volumes can be significant if they function as conduits for unreported or illicit capital movements.

Central Bank Frames Crypto Oversight

Governor Vitai Ratanakorn said the central bank intends to move beyond passive observation and take a more active role in addressing structural risks. He warned that unchecked grey money channels could pose longer-term threats to macroeconomic stability if left unresolved. The Bank of Thailand’s approach reflects a broader institutional shift toward treating crypto-linked flows as part of the financial system rather than a niche activity.

The move follows a Jan. 9 directive from Prime Minister Anutin Charnvirakul calling for tighter controls on gold trading and digital assets. The measures include stricter reporting requirements, enhanced wallet identification rules, and coordination between the central bank, the Revenue Department, and law enforcement agencies. Together, the steps aim to improve visibility into large or unusual transactions that may bypass traditional oversight.

Stablecoin Growth Complicates Regulatory Calculus

Thailand’s review comes as stablecoins continue to expand in global usage, both for legitimate payments and for cross-border capital movement. USDT remains the dominant stablecoin by circulation, giving it outsized influence in emerging markets where access to dollars can be limited. For regulators, that scale presents a challenge in balancing financial innovation with enforcement of anti-money laundering standards.

Data from blockchain analytics firms indicate that stablecoins account for a growing share of illicit crypto transaction volumes, reinforcing concerns among central banks and finance ministries. Issuers such as Tether have emphasized their cooperation with law enforcement, including wallet freezes and transaction monitoring tied to sanctions enforcement. Despite these actions, USDT’s widespread adoption has kept it under persistent regulatory and political scrutiny.

Regional Signal to Crypto Markets

For market participants, Thailand’s decision signals that Southeast Asian regulators are increasingly aligning crypto oversight with traditional financial supervision. By integrating stablecoins into existing frameworks for monitoring capital flows, authorities are seeking to limit regulatory arbitrage while preserving broader market stability. The approach mirrors trends in other jurisdictions where stablecoins are viewed less as speculative assets and more as functional components of the payment system.