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At a hearing of the House Financial Services Committee, several Democratic lawmakers questioned SEC Chairman Paul Atkins regarding the recent reduction in enforcement actions against the cryptocurrency industry by the U.S. Securities and Exchange Commission (SEC), expressing concerns about whether these decisions are linked to Trump and his connections to the crypto industry.Lawmakers specifically mentioned the SEC's suspension of the case against Tron founder Justin Sun and the withdrawal of the lawsuit against Binance. Democratic Congressman Stephen Lynch stated during the hearing that the decline in SEC enforcement has impacted the agency's reputation and demanded an explanation for why the related cases were not pursued further. The SEC had previously sued Justin Sun in 2023 for allegedly issuing unregistered securities and manipulating trading volumes, but later in 2025, it applied to pause the case to explore settlement possibilities; in May of the same year, the SEC withdrew its lawsuit against Binance under Atkins's leadership.Data shows that in 2025, the SEC's overall enforcement actions decreased by about 30% compared to the previous year, with crypto-related cases dropping by approximately 60%, which is viewed by outsiders as a signal of a shift in regulatory focus. In response, Atkins stated that the SEC still maintains a "strong enforcement presence" and noted that some changes are part of the normal adjustments following a change in regulatory leadership.

According to market news, the enforcement team at the Chicago office of the Commodity Futures Trading Commission (CFTC) has completely resigned. This office was once regarded as the agency's "top enforcement force," previously having 20 enforcement attorneys, and now none remain.This staff reduction comes as the CFTC seeks to significantly expand its regulatory scope into the cryptocurrency and prediction market sectors. Reports indicate that the same leadership responsible for the CFTC's staff cuts last year had actively advocated for the agency's jurisdiction to cover most of the cryptocurrency markets and sports prediction platforms. Caroline Pham, who served as the acting chair of the CFTC in 2025, pushed for a reduction of over 21% in the agency's workforce last year, and she is currently employed at the cryptocurrency company MoonPay.Former CFTC enforcement attorneys stated that this layoff is targeted, as the Chicago office has specialized experience and a key role in reaching multi-billion dollar settlements with cryptocurrency companies like FTX and Binance.

Mark T. Uyeda, a commissioner of the U.S. Securities and Exchange Commission (SEC), delivered a speech at the 2026 Asset Management Derivatives Forum, highlighting the progress of the implementation of Treasury clearing rules and the development of tokenization in the securities market.The SEC has approved the registration of two new clearing agencies, CME Securities Clearing and ICE Clear Credit, providing market participants with more clearing options. Data from the Office of Financial Research indicates that if the rules are implemented in the first 8 months of 2025, U.S. global systemically important banks could free up an average of $34.5 billion in balance sheet space.Regarding tokenization, Uyeda stated that the SEC has ceased to use enforcement as the primary means of expressing its views, instead promoting limited scope pilots through regulatory guidance and exemptions. He emphasized that SEC rules should remain technology-neutral, focusing on outcomes rather than processes, while ensuring appropriate investor protection measures.

The founder of TX, Sam Bankman-Fried (SBF), posted on the X platform stating that there is a phenomenon of political lawfare in the United States, and that the relevant enforcement logic is "do not give the defendant a chance to present evidence."He claimed that the Biden administration's judicial system had launched baseless charges against him and former President Trump, and restricted their ability to respond publicly. SBF mentioned the case involving Trump's financial records, stating that the related expenses often have accounting classification disputes within companies, yet the prosecution still brought multiple charges based on this. He also noted that in his own case, he faced a gag order and pretrial detention measures, while FTX has always maintained its solvency. SBF further stated that he believes he has been targeted due to his opposition to U.S. cryptocurrency regulatory policies and changes in political donation positions. However, these statements are solely his personal views and have not been confirmed by judicial authorities, and he is currently lobbying for a pardon.

Six U.S. Senators, including Mazie K. Hirono, Elizabeth Warren, and Richard Durbin, sent a letter to Deputy Attorney General Todd Blanche on January 28, questioning his decision to dissolve the Department of Justice (DOJ) National Cryptocurrency Enforcement Team (NCET) in April 2025.The senators pointed out that although Todd Blanche claims the DOJ should not act as a regulator of digital assets, he himself held cryptocurrencies valued between $158,000 and $470,000 at the time of making that decision, which constitutes a clear conflict of interest and may violate federal laws regarding personal financial interests. The senators previously referred to the shutdown of the department as a "serious mistake," believing it would facilitate criminal activities such as sanctions evasion, drug trafficking, and fraud.The letter cited data showing that illegal cryptocurrency activities surged by 162% in 2025, primarily driven by a significant increase in cryptocurrencies received by sanctioned entities, and that money laundering networks have become a "dominant force" in the digital asset space. The senators believe that Todd Blanche's actions may violate the provisions of federal law 18 U.S.C. § 208(a) concerning the influence of personal financial interests on public decision-making. Currently, Todd Blanche has been named as a subject of a complaint by the DOJ Office of the Inspector General.

According to a report by Cryptonews, a Cornerstone Research report reveals that under Paul Atkins' chairmanship of the U.S. Securities and Exchange Commission (SEC), the number of cryptocurrency-related enforcement actions initiated by the SEC in 2025 significantly decreased. The report shows that in 2025, the SEC initiated only 13 cryptocurrency-related enforcement actions, a 60% decrease from 33 in 2024, marking the lowest level since 2017.Among these 13 cases, 5 were initiated before former chairman Gary Gensler's departure, while the 8 cases under Atkins' leadership primarily involved fraud allegations, indicating a shift in enforcement focus from broad registration theories to specific cases of investor harm.The total fines imposed on digital asset market participants in 2025 amounted to $142 million, less than 3% of the total fines in 2024. The head of Cornerstone Research stated that this reflects a shift in the SEC's approach to digital asset regulation under Atkins' leadership, with expectations that U.S. cryptocurrency regulation in 2026 will rely more on rule-making rather than ad-hoc litigation.

According to CoinDesk, PwC stated in its "Global Cryptocurrency Regulatory Report" that as legislation progresses from draft to law worldwide, cryptocurrency regulation will become clearer this year, and countries with more transparent cryptocurrency rules will lead the industry development.The report suggests that the environment will be less defined by regulatory debates and more shaped by jurisdictions competing to attract capital and establish legitimacy. The trend of cross-border collaboration is strengthening, aimed at enhancing market integrity, preventing financial crime, and protecting investors. For cryptocurrency companies, this means higher compliance costs, but it will also bring clearer rules, potentially fostering new products, banking channels, and deeper institutional participation.

According to The Block, U.S. Congress members Maxine Waters, Sean Casten, and Brad Sherman sent a letter on Thursday to Securities and Exchange Commission Chairman Paul Atkins, requesting an explanation for why the agency has paused multiple cryptocurrency enforcement cases, including the lawsuit against Tron founder Justin Sun.The lawmakers pointed out in the letter that since early 2025, the SEC has dismissed over a dozen crypto-related cases, including those against Binance, Coinbase, and Kraken, coinciding with a surge in political donations from the industry, raising concerns about a "pay-to-play" scheme. The letter mentioned that crypto companies donated at least $85 million to President Trump's re-election campaign, and the companies whose cases were dismissed had each contributed at least $1 million to Trump's inauguration.They specifically highlighted the Justin Sun case, noting that it has been on hold for 11 months, signaling that enforcement may be selective and that political influence could affect accountability. The legislators also issued a separate document preservation request, asking the SEC to provide all communications related to the decision to pause the Justin Sun case.

The Zcash Foundation stated this Wednesday that the U.S. SEC has officially concluded its years-long investigation into the organization and has made it clear that it does not plan to take any enforcement action or require remediation.The foundation disclosed that it received a subpoena from the SEC in August 2023, related to "In the Matter of Certain Crypto Asset Offerings." Currently, the SEC has completed its review and closed the case. An SEC spokesperson responded that the agency "does not comment on whether an investigation exists."This case closure occurs against the backdrop of a shift in the SEC's stance on crypto regulation. During the Trump administration, the SEC withdrew or terminated enforcement actions or investigations against several crypto entities, including Coinbase and multiple DeFi projects, which is markedly different from the Biden administration's hardline approach characterized by "enforcement-style regulation."Current SEC Chairman Paul Atkins is pushing for updates to crypto regulatory rules through "Project Crypto," focusing on on-chain activities and technological realities.It is worth noting that the Zcash ecosystem has recently experienced fluctuations. On January 8, all employees of the core developer Electric Coin Company collectively resigned due to structural disagreements with the board of its parent organization. In response, the Zcash Foundation emphasized that its commitment to the protocol remains unchanged and pointed out that the Zcash network is independent of any single organization or entity, and that organizational adjustments within the ecosystem do not equate to a deterioration in the health of the network itself.

According to Cointelegraph, the Indian enforcement agency has frozen assets worth $1.3 million, including cryptocurrency assets, related to a fraud case valued at $3.2 million.

According to market news, a newly created wallet has deposited 3.6 million USDC into the HyperLiquid trading platform and opened a 10x leveraged long position in ZEC (Zcash). Currently, the wallet also has additional buy orders in the $400 to $401 range.

The blockchain computing scalability protocol Truebit Protocol announced on platform X that a security incident involving one (or possibly multiple) malicious actors has been discovered. The affected smart contract code is "0x764C64b2A09b09Acb100B80d8c505Aa6a0302EF2". The public is strongly advised not to interact with this contract until further notice. They have contacted law enforcement and are taking all feasible measures to address the situation. Updates on the handling of this matter will be released through official channels.According to previous news from ChainCatcher, TrueBit is suspected to have been attacked, resulting in a loss of approximately 26.4 million dollars.

The Indian financial authorities have reiterated their concerns about cryptocurrency trading, warning that it could complicate tax enforcement. The Indian tax department stated that offshore trading platforms, private wallets, and DeFi tools pose risks that could make tracking cryptocurrency income "almost impossible." Cryptocurrencies allow for "anonymous, borderless, and nearly instant" value transfers, enabling individuals to move funds without regulated financial intermediaries.India currently imposes a flat tax of 30% on profits from all cryptocurrency activities, and additionally, all transfers (regardless of profit) are subject to a 1% withholding tax. While India officially allows cryptocurrency trading under a high tax regime and has approved the return of major U.S. exchange Coinbase in 2025, the Indian government's overall stance on cryptocurrencies remains cautious and complex.

Indian financial authorities have reiterated their concerns about cryptocurrency trading, warning that it could complicate tax enforcement. The Indian tax department stated that offshore trading platforms, private wallets, and DeFi tools pose risks that could make tracking cryptocurrency income "almost impossible." Cryptocurrencies enable "anonymous, borderless, and nearly instantaneous" value transfers, allowing individuals to move funds without regulated financial intermediaries.India currently imposes a flat tax of 30% on profits from all cryptocurrency activities, and additionally, all transfers (regardless of profitability) are subject to a 1% withholding tax. While India officially allows cryptocurrency trading under a high tax regime and has approved the return of major U.S. exchange Coinbase in 2025, the Indian government's overall stance on cryptocurrencies remains cautious and complex.

According to Fox Business, U.S. Treasury Secretary Scott Bessent stated that the government has begun to incorporate Bitcoin seized through law enforcement into its "strategic reserves," no longer routinely auctioning them off. Bessent indicated that the government will not purchase Bitcoin on the open market but will hold the seized assets for the long term.

1inch released its 2025 data review, stating that the platform completed approximately $214 billion in token exchange transactions throughout the year, a year-on-year increase of 39%, with about 114 million transactions executed, more than doubling from the previous year.In terms of network distribution, Ethereum remains the main trading hub for 1inch, with a total transaction volume of approximately $97.1 billion; BNB Chain recorded a transaction volume of about $82.1 billion, with a year-on-year increase of nearly 10 times; Arbitrum and Base recorded transaction volumes of approximately $13.2 billion and $8.8 billion, respectively. In addition, 1inch noted that the demand for cross-chain transactions significantly increased in 2025, with a total cross-chain exchange volume of approximately $697 million, completing 148,000 transactions, with nearly 48,000 users utilizing related features.Ethereum remains the core node for cross-chain liquidity, with major flows including Ethereum→BNB, BNB→Ethereum, and Ethereum→Arbitrum. 1inch pointed out that trading activity is further concentrating on core networks, while newly connected networks are also beginning to gradually contribute to transaction volume.

SharpLink Gaming co-CEO Joseph Chalom tweeted that the surge in stablecoins, tokenized RWA, and the growing interest from sovereign wealth funds could drive Ethereum's TVL to increase significantly by 2026, with the stablecoin market size reaching $50 billion.Joseph Chalom stated that tokenized RWA will reach $300 billion by 2026, and the management scale of tokenized assets will grow tenfold, expanding from the tokenization of individual funds, stocks, and bonds to the tokenization of entire fund portfolios. The amount of ETH held by sovereign wealth funds and the scale of tokenization will grow 5-10 times. Over the past year, financial services companies, including JPMorgan, Franklin Templeton, and BlackRock, have shown increasing interest in Ethereum, which is a major catalyst. Notably, SharpLink unstaked 35,627 ETH this morning, worth $104.4 million.

The Enforcement Directorate (ED) of India raided a total of 21 residential and office locations in Karnataka, Maharashtra, and New Delhi as part of a money laundering investigation, uncovering a network of a fraudulent cryptocurrency investment platform.The gang has been operating since 2015, using celebrity images and fake trading websites to promise high returns, attracting investors from India and abroad, and laundering funds through cryptocurrency wallets, P2P transfers, shell companies, and underground money exchanges. Currently involved websites include goldbooker.com, cryptobrite.com, among others, and official investment risk warnings have been issued.

Binance CEO He Yi stated in the "Bonnie Blockchain" podcast that CZ actively invited He Yi to be an advisor for Binance during the ICO period, which led to He Yi's involvement in the revision and writing of the BNB white paper.After the completion of the BNB ICO, CZ invited He Yi to join again the day before the BNB launch, saying, "Tomorrow BNB is going to launch, and if BNB increases tenfold after it goes live, I won't be able to make you this offer. So you either agree today, or we can only renegotiate later." This conversation ultimately led to He Yi's decision to join Binance before the BNB launch.

A federal judge has temporarily blocked Connecticut from enforcing gambling laws against the prediction market platform Kalshi and ordered state regulators to refrain from taking any enforcement action while the court weighs the company's request for a preliminary injunction.U.S. District Judge Victor Bolden instructed state officials in a Monday order not to take enforcement action against any conduct described in the cease-and-desist letter until the court rules on Kalshi's motion for a preliminary injunction. The previous cease-and-desist letter was sent by the Connecticut Department of Consumer Protection to Kalshi and Crypto.com last week, demanding that they stop what the state regulators called unlicensed online sports betting operations.Kalshi argues that, as a CFTC-designated contract market, it enjoys exclusive federal jurisdiction, while Connecticut claims that these contracts violate state gambling laws. The oral arguments for the preliminary injunction are scheduled for February 12, 2026.