Key Highlights
- India’s Union Budget 2026 keeps crypto taxes unchanged, maintaining the 30% gains tax and 1% TDS.
- Trump nominates Kevin Warsh for a key Federal Reserve role, sparking debates on liquidity and its impact on risk assets, including Bitcoin.
- Tether reports $10B profit and U.S. Treasury holdings hit $141B, reinforcing its role as a major liquidity provider in crypto markets.
Crypto markets moved through a week driven mainly by policy decisions and institutional activity rather than price action. Regulators across regions continued to clarify how digital assets will be treated, with Japan signalling a shift toward crypto ETFs and India keeping its existing tax regime unchanged.
Developments in U.S. politics, corporate treasury moves, and blockchain infrastructure also influenced sentiment during the week.
Below is a recap of the developments that mattered most.
Top Headlines
The week’s biggest developments reflected how policy decisions, regulatory signals, and institutional positioning continue to shape crypto markets, even as price action remained relatively muted.
Trump picks Kevin Warsh for Fed Role, stirring market debate
U.S. President Donald Trump’s backing of Kevin Warsh for a senior Federal Reserve role brought monetary policy back into focus. Warsh, a former Fed governor, has long criticised extended quantitative easing and has raised concerns about the side effects of aggressive central bank intervention.
The development drew attention across financial markets, including crypto. Market participants pointed to Warsh’s views on inflation control, balance sheet management, and asset valuations as factors that could influence liquidity conditions. Any move toward tighter policy is seen as relevant for Bitcoin and other risk assets, especially as institutional participation remains closely linked to macro policy signals.
Tether posts $10B profit as U.S. treasury holdings hit record $141B
Tether reported over $10 billion in profit for 2025, with reserve assets growing to nearly $193 billion. Its U.S. Treasury holdings hit a record $141 billion, making it one of the largest private holders of government debt. The stablecoin now serves more than 530 million users, underlining its dominance as a key liquidity provider in crypto markets.
Japan lays out crypto ETF roadmap for 2028
Japan indicated a possible shift in its approach to digital assets after reports suggested crypto exchange-traded funds (ETFs) could be allowed by 2028. While regulators have not announced any immediate approvals, discussions are reportedly underway to bring Japan’s framework closer to global standards.
The move stands out for a market that has traditionally taken a cautious stance following earlier exchange failures. If implemented, crypto ETFs could allow greater participation from institutional investors, including asset managers and pension-linked funds, though the proposed timeline points to a gradual rollout.
Union Budget 2026 leaves India’s crypto policy unchanged
India’s Union Budget 2026 did not introduce any changes to crypto taxation or regulation. The government retained the 30% tax on crypto gains and the 1% TDS on transactions, with no reference to licensing, classification, or oversight.
For India’s estimated 90 million crypto users, the outcome reinforced concerns around prolonged uncertainty. Industry participants said the lack of movement continues to limit domestic participation and innovation, while encouraging startups, traders, and capital to move offshore.
Strategy Inc. and Bitmine extend corporate accumulation
Corporate accumulation remained active during the week. Strategy Inc. disclosed the purchase of 2,932 Bitcoin for $264 million, bringing its total holdings to 712,647 BTC. The company continues to expand its Bitcoin treasury through periodic purchases.
Bitmine disclosed this week that its Ethereum holdings have climbed to 4.2 million ETH, with a total valuation of about $12.8 billion. The update places the company among the largest known corporate holders of Ether. The disclosure also reinforces the steady interest from institutions treating Ethereum as a long-term balance sheet asset rather than a short-term trade.
Ethereum prepares ERC-8004 mainnet rollout
Ethereum developers confirmed that ERC-8004 is scheduled to go live on the mainnet. The new standard is intended to support AI-driven agents that interact directly with smart contracts and manage assets on-chain.
According to developers, ERC-8004 is aimed at simplifying automated contract interactions across decentralized applications. While usage is still expected to be limited in the early stages, the rollout reflects continued development work linking artificial intelligence tools with Ethereum’s existing infrastructure.
Hyperliquid leads liquidity rankings
Hyperliquid topped global crypto liquidity rankings during the week, moving ahead of several centralized exchanges in reported market depth. The data showed increased activity on the decentralized derivatives platform, pointing to growing trader participation outside traditional centralized venues.
Following the rankings, Hyperliquid’s HYPE token rose about 20%, reflecting increased activity on the platform.
News you might have missed
- Winter Storm Frenan caused a 60% drop in Foundry USA’s mining hashrate as operations were temporarily halted.
- Fake Clawdbot tokens surged amid online speculation before being flagged as scams; the Moltbot founder said he would “never do a coin.”
- Binance shifted $1 billion from its SAFU fund into Bitcoin, adjusting its user protection reserves.
- The U.S. government built cash reserves ahead of a possible shutdown as Trump initiated legal action against his administration.
- The SEC reiterated that tokenized securities fall under the same rules as traditional assets.
- OFAC sanctioned UK-based crypto exchanges over alleged Iran-linked activity.
- The Czech central bank governor reaffirmed support for a Bitcoin pilot.
- Justin Sun claimed trillions could move to Tron in 2026.
- OKX’s CEO criticized Binance over responsibility for the October market crash.
- Silver gained 100% in 50 days, while gold prices declined sharply.
- The U.S. DOJ forfeited $400 million tied to a major cryptocurrency mixer.
What to expect next week
Market sentiment is expected to stay closely tied to macro and political developments, especially around Federal Reserve leadership and ongoing fiscal uncertainty in the U.S. Ethereum developers will be watching the rollout of ERC-8004, while markets across Asia look for more clarity on Japan’s ETF plans. In India, focus remains on whether any regulatory direction emerges following the Union Budget 2026.
