Hi there!
We are closing out the first full week of February, yet it still feels as though January hasn’t ended. A lot is happening at the same time—Trump, Musk, and the U.S. continue to dominate headlines in the crypto market—and it does look like there is no end in sight anytime soon. The good news is that these changes will likely turn out a net-good for the sector.
As we always do, let’s bring you up to speed with this week’s top stories!
Biggest Story
Coinbase CLO Testifies in Congress on Alleged Crypto Banking Crackdown
Coinbase’s Chief Legal Officer, Paul Grewal, and key U.S. crypto stakeholders testified before Congress on February 6, 2025, over allegations that regulators pressured banks to sever ties with crypto firms.
This hearing followed reports of over 30 crypto founders having their bank accounts closed amid concerns of a coordinated crackdown. Although regulators deny such actions, internal Coinbase documents suggest otherwise.
Grewal addressed claims that agencies like the FDIC encouraged banks to limit exposure to digital assets. Industry leaders such as MARA Holdings CEO Fred Thiel and Anchorage Digital CEO Nathan McCauley also joined Grewal in criticizing regulatory overreach and “regulation by exhaustion,” which some lawmakers claimed discouraged banks from collaborating with crypto companies.
However, lawmakers remain divided; some call for stronger oversight, while others caution against excessive intervention that could stifle innovation and limit consumer access to finance services.
Other Stories Making Waves
Canadian Hacker Charged in Multi-Million Dollar DeFi Exploits: U.S. authorities charged Canadian hacker Andean Medjedovic with orchestrating DeFi hacks and stealing over $65 million from KyberSwap and Indexed Finance. Despite a global manhunt, he is still at large. He faces up to 20 years in prison per charge.
Trump’s Tariffs Shake Crypto Markets: Crypto markets took a hit as Trump imposed steep tariffs on Canada, Mexico, and China, triggering a global trade war. Investors are dumping risky assets, causing market volatility. Analysts believe cross-asset reallocation, not crypto-specific issues, is behind the turmoil.
AI Meets Blockchain: AVAXAI Launches DeFi AI Agents: Avalanche DeFAI Agents has launched a groundbreaking AI-powered DeFi platform on Avalanche. The project allows users to create, trade, and co-own AI agents using blockchain technology.
USDT Now Live on Bitcoin and Lightning Network: Tether has officially launched USDT on Bitcoin’s base layer and Lightning Network, making stablecoin payments faster and cheaper. The integration uses Taproot Assets to enable instant transactions while maintaining Bitcoin’s security.
UBS Tests Blockchain for Digital Gold Investments: Swiss banking giant UBS is taking gold investments on-chain, using Ethereum’s ZKsync Validium for its Key4 Gold product. The move aims to improve privacy, scalability, and efficiency.
Turkish Court Overturns Part of Thodex Founder’s Conviction: A Turkish appeals court has overturned some charges against Faruk Fatih Özer, founder of the collapsed crypto exchange Thodex. While he’s still convicted of fraud and money laundering, the court ordered a retrial on certain aspects of his case.
Spot Bitcoin ETFs See $340M Inflow After Trump Delays Tariffs: Bitcoin ETFs bounced back with a $340.7 million net inflow after Trump postponed his controversial tariffs. BlackRock’s IBIT led the surge, pushing total ETF inflows to $40.7 billion.
Elon Musk Sparks Dogecoin Surge Amid Reddit Drama: Elon Musk has stirred up the Dogecoin market again! After calling out Reddit users for allegedly threatening the Department of Government Efficiency (DOGE) employees, the memecoin’s price shot up by 5%. Musk’s response, coupled with an official investigation announcement, fueled the hype.
Canada’s Crypto ETF Market Gets a Boost with Leveraged Bitcoin & Ethereum Funds: Evolve Funds is launching Canada’s first-ever leveraged Bitcoin and Ethereum ETFs, offering 1.25x exposure. Unlike U.S. funds that use heavy derivatives, these will rely on cash borrowing. With Canadian investors flocking to U.S. ETFs for better fees and liquidity, this move could be a game-changer.
Around the World: Bold Moves and Crypto Regulations
South Korean City to Seize Crypto from Tax Evaders: Gwacheon is stepping up its tax game by launching an electronic system to track down crypto wallets linked to tax dodgers. Evaders will get a warning before their crypto gets confiscated, and enforcement kicks off in early 2025.
El Salvador Buys More Bitcoin Despite IMF Restrictions: El Salvador bought 12 more BTC, bringing its total stash to 6,068 BTC, despite its newly secured $1.4 billion loan IMF deal, with conditions to cut back on Bitcoin-related public sector activities.
HashKey Capital Gets Green Light for Crypto Management in Hong Kong: HashKey Capital has secured regulatory approval to offer managed crypto investment services in Hong Kong. This means high-net-worth residents can now manage their crypto portfolios professionally, with a mix of spot assets, derivatives, and OTC trades.
Hong Kong SFC Expands Crypto Oversight Team: Hong Kong’s securities regulator intends to recruit 15 new employees, eight of whom will be involved in its oversight of the crypto sector. The SFC claims it wants to improve its market surveillance capacities and simplify the licensing process for crypto exchanges.
Utah Could Be the First U.S. State to Hold Bitcoin Reserves: Utah is leading the race to become the first U.S. state to hold Bitcoin in its treasury officially. Experts believe it could beat other states to the punch because of its fast-track legislative process and strong political backing.
Japan’s Prime Minister Pushes for Crypto and Web3 Growth: Prime Minister Shigeru Ishiba wants Japan to go all-in on crypto and Web3 to tackle economic challenges. Lawmakers are also pushing for crypto tax reforms, arguing that high rates are stifling innovation.
India Reassesses Crypto Policy Amid Global Shifts: India is rethinking its crypto stance as global regulations evolve, with officials revisiting a long-delayed discussion paper. While the government remains cautious, stricter tax rules are already in place. The Reserve Bank of India is especially wary of stablecoins, warning that they could threaten financial stability if left unchecked.
Market Trends: Winners and Losers
Top 5 Gainers 📈
According to data from CoinGecko, these are the five biggest gainers for the week:
- MEMDEX100 surged 30.7%, from $34.1M to $44.6M.
- Fartboy skyrocketed 131.6%, from $34.7M to $80.5M.
- Ket soared 161.2%, from $57.4M to $150.1M.
- Miracle Play climbed 70.3%, from $15.2M to $25.9M.
- Flayer exploded 212.4%, from $33.2M to $103.9M.
Top 5 Losers 📉
According to data from CoinGecko, the five biggest losers for the week are:
- Akuma Inu plunged -57.0%, from $215.5M to $92.6M.
- Fartcoin tumbled -57.6%, from $1.15B to $489.0M.
- Moby AI fell -49.2%, from $96.4M to $48.9M.
- Based Pepe declined -55.9%, from $77.6M to $34.2M.
- Pippin dropped -46.9%, from $61.5M to $32.7M.
Project Spotlight
Finacash Introduces Crypto Prepaid Card for Seamless Spending
Finacash has launched a new prepaid card that enables users to spend cryptocurrency directly from any Web3 wallet, with no identity verification required for balances under $10,000. The card functions like traditional debit and credit cards, offering global acceptance where Visa and Mastercard are supported. It provides a convenient financial solution for crypto users with built-in security, real-time spending tracking, and no hidden fees.
Why It Matters: This innovation enhances crypto’s usability for everyday transactions, bridging the gap between digital assets and real-world spending while preserving user privacy.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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