The past week in crypto brought a mix of regulatory heat, new technology launches, security scares, and corporate reshuffling. From Tennessee’s clampdown on prediction platforms to fresh progress in blockchain banking, here’s a look at the biggest stories shaping the industry.
Tennessee regulators moved firmly against several prediction market platforms, ordering Kalshi, Polymarket, and Crypto.com to stop offering sports-related event markets to residents in the state. In cease-and-desist letters dated January 9, the Tennessee Sports Wagering Council argued that these companies were effectively running unlicensed sports betting operations, even if the markets were presented as “event contracts.” Officials say the products fall squarely under sports wagering rules and require proper licensing.
Meanwhile, traditional finance continues to push deeper into blockchain infrastructure. BNY Mellon, the world’s largest custodian bank with nearly $58 trillion in assets under management, rolled out a new platform that lets institutional customers settle bank deposits using blockchain rails. The move highlights how major banks are increasingly experimenting with tokenized deposits and blockchain-based settlement as demand for faster and programmable money grows.
Crypto exchange OKX also made headlines after restructuring its global institutional business unit. The shake-up resulted in layoffs, though the exact impact remains unclear. One report suggested that about half of the team was let go, while another source estimated 8–10 job cuts and several voluntary exits tied to the reorganization.
In the world of crypto privacy, Ethereum co-founder Vitalik Buterin voiced support for Roman Storm, the Tornado Cash developer convicted in August on money-transmitting charges. Buterin emphasized that privacy tools are essential and called privacy a basic human right, noting that he has backed Storm’s work from the early days and personally used privacy-preserving software.
Ripple notched a regulatory milestone in the UK, securing approval from the Financial Conduct Authority for both its Electronic Money Institution license and crypto asset registration. The authorization opens doors for Ripple to scale its services in Britain under tighter but clearer regulatory oversight.
Security risks also showed no signs of slowing. Truebit, an Ethereum-based verification and computation protocol, suffered a major breach, losing about 8,535 ETH — roughly $26.6 million. On-chain analysis platform Lookonchain traced the transactions linked to the exploit, underscoring ongoing vulnerability concerns across DeFi ecosystems.
Politics entered the crypto spotlight as well. U.S. President Donald Trump said he would not consider a pardon for FTX co-founder Sam Bankman-Fried, responding to questions about potential clemency for several prominent figures.
In Florida, lawmakers proposed creating a state-managed Bitcoin reserve, with the bill filed ahead of the 2026 legislative session starting January 13 — signaling how digital assets continue to seep into state-level financial planning.
The Optimism Foundation floated plans for a token buyback program designed to better align the OP token with the broader Superchain ecosystem, potentially dedicating 50% of Superchain revenue to monthly OTC purchases if approved by governance.
India also remained active on the regulatory front as tax authorities joined the Reserve Bank of India in warning about the challenges of enforcing rules around virtual digital assets. Officials told the parliamentary finance committee that tracking and taxing crypto transactions remains difficult ahead of the upcoming Union Budget.
On the adoption side, video platform Rumble launched a non-custodial crypto wallet built directly into its service, letting users tip creators with digital assets such as Bitcoin, USDT, and Tether Gold without relying on intermediaries.
Finally, hardware wallet maker Ledger reported that its e-commerce partner Global-e experienced a data breach. Ledger stressed that its own hardware and software wallets remain secure, but urged users to stay alert.
Together, these developments reflect an industry balancing innovation with compliance, as regulators tighten their stance while institutions and platforms continue to build the next wave of crypto infrastructure.
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