Crypto Weekly Market Wrap January 19: Regulatory Shifts, Institutional Growth, and Market Trends

Last week, the crypto market saw a flurry of key developments that reshaped the industry. From Coinbase’s CEO addressing White House support concerns regarding the CLARITY Act, to South Korea lifting a nine-year cryptocurrency investment ban, regulatory shifts were in focus. Meanwhile, global financial giants like Ripple and Bitwise continued to expand their market influence. In this article, we will discuss key developments that made headlines last week.

Coinbase CEO Responds to White House CLARITY Act Claims

Coinbase CEO Brian Armstrong rejected the rumors that the White House threatened to pull its support of the CLARITY Act. He said that the continued negotiations with federal authorities were positive and did not really indicate pessimism, as it was reported. Armstrong specifically responded to the claims of journalist Eleanor Terrett, asserting that the White House threat allegations were false.

In general, love your posts, but this is not accurate. The White House has been super constructive here.

They did ask us to see if we can go figure out a deal with the banks, which we're currently working on.

Actually, we've been cooking up some good ideas on how we can help… https://t.co/t1bK48oRc0

— Brian Armstrong (@brian_armstrong) January 17, 2026

Moreover, Armstrong emphasized that the White House had urged Coinbase to work with banks to identify a suitable policy solution. Negotiations with banking associations are ongoing, and they are working on creating policies to safeguard retail clients. Coinbase Chief Legal Officer Paul Grewal also came out to assure the public, noting the transparency and optimism of the talks.

Tennessee Court Halts Action Against Kalshi Prediction Market

A Tennessee federal judge temporarily halted state action against prediction market platform Kalshi. The U.S. District Judge ruled that Kalshi would suffer irreparable harm if the enforcement continued. 

This decision highlights the growing skepticism about state regulation of financial products that are already regulated by federal authorities. The ruling of the court also implied that the lawsuit filed by Kalshi stands a good chance of succeeding. It could potentially impact future litigations surrounding crypto derivatives.

New York Pushes for Criminalizing Unlicensed Crypto Activity

New York Attorney General Alvin Bragg demanded more stringent measures, suggesting criminal penalties against unlicensed cryptocurrency activities. He presented the risks of illegal operations, including drug trafficking and financing of terrorism, being made easier through unregulated crypto platforms. Bragg proposed that lawmakers swiftly address these regulatory loopholes.

South Korea Lifts Nine-Year Cryptocurrency Investment Ban

The Financial Services Commission (FSC) of South Korea lifted a nine-year ban on corporate investment in cryptocurrencies. The new guidelines enable listed firms and professional investors to invest up to 5% of their equity capital in cryptocurrencies. The 5% cap is, however, criticized as being too restrictive compared to other global markets.

According to the new regulations, investments will be allowed in the top 20 cryptocurrencies based on their market value. However, USD-pegged stablecoins remain under consideration, and further consultations on how to incorporate them into the new regulation are expected. The new regulations will take effect towards the end of 2026, aligning with the Digital Asset Basic Act in South Korea.

Former NYC Mayor Eric Adams Disputes Memecoin Rug Pull Allegations

Eric Adams, the former mayor of New York City, refuted claims that his memecoin project, NYC Token, engaged in a rug pull. Reports claimed that Adams had pulled out the liquidity in the project, causing huge losses for the investors. Adams’ spokesperson, however, clarified that no funds had been removed from the token. The spokesperson also added that the project was volatile, as is common with newly launched digital assets.

Statement from Todd Shapiro, spokesperson for former NYC Mayor Eric Adams: pic.twitter.com/kza4UGvApJ

— Eric Adams (@ericadamsfornyc) January 14, 2026

Regardless of the volatility of the token launch, Adams insisted that NYC Token was not an investment tool but was for charitable causes. However, the structural stability of the token and its governance remained a topic of concern. This continues to cast doubts on the sustainability of the project.

Federal Reserve Chair Accuses DOJ of Undermining Fed Independence

Federal Reserve Chair Jerome Powell publicly accused the Trump administration of using the Justice Department to compel the Fed to adjust interest rates. Powell’s comments came after the grand jury subpoenas were issued in connection with the renovation of the headquarters of the Federal Reserve. He contended that the inquiry threatened to destroy the Fed in making independent economic decisions, especially regarding interest rates.

The remarks by Powell address the issue of the politicization of financial policy. He stressed that the decision-making process of the Fed should not be affected by the investigation or the possible criminal charges.

Belarus Launches “Crypto Bank” System with New Decree

Belarus officially introduced a “crypto banking system,” which enables registered institutions to provide financial services related to tokens alongside traditional banking services. The new system is to be regulated by dual regulators from both the National Bank of Belarus and the High-Tech Park (HTP). The decree, which was signed by the president, Alexander Lukashenko, aims to promote innovation in the cryptocurrency industry and, at the same time, comply with the local regulations.

This move is part of the broader plan of Belarus to adopt digital financial services. The crypto banking system is expected to boost economic growth, as the government anticipates drawing businesses that are related to blockchain.

South Korea Approves Framework for Security Token Offerings

The National Assembly of South Korea approved key amendments to its Capital Markets Act, paving the path to security token offerings (STOs). The act allows tokenized securities to be issued and traded over blockchain platforms, establishing a regulated marketplace of digital securities. The new legal framework will create new investment opportunities, especially in non-traditional assets such as real estate and art.

Goldman Sachs Explores Tokenization and Prediction Markets

Goldman Sachs is pursuing opportunities in tokenization and prediction markets, especially in the case of stablecoins. The firm’s CEO, David Solomon, emphasized the need to be ahead of the new trends in the financial market. Although Goldman has no intention to be in the lead in all aspects, the firm plans to use these technologies to streamline its business activities.

🚨 JUST IN: Goldman Sachs says RWA tokenization and prediction markets are emerging key growth areas, signaling where institutional capital sees the next phase of on-chain expansion. pic.twitter.com/ovZ0XLvkTR

— Real World Asset Watchlist (@RWAwatchlist_) January 15, 2026

Solomon also noted that the bank is keeping a keen eye on the trend in the regulatory environment that will inform its strategy towards tokenization. One area that seems of special interest to the firm is the growth of prediction markets. This could intersect its experience in derivative-type contract activities.

Ripple Expands European Presence with EMI License

Luxembourg’s financial regulator gave a preliminary approval to Ripple for an Electronic Money Institution (EMI) license. This license marks a step towards Ripple’s expansion into the European Union, where it can provide its cross-border payment solutions across the region.

The EMI license also strengthens the commitment of Ripple to regulatory adherence and will enable it to facilitate its services in the EU. The firm operates in more than 90% of the daily foreign exchange markets across the world.

Thailand Cracks Down on Digital Asset Regulation

The Thai Prime Minister, Anutin Charnvirakul, called for stricter measures on activities in digital assets as part of the broader crackdown on illegal capital flows. The government will implement the “Travel Rule,” which requires the identification of both senders and receivers in cryptocurrency transactions.

The Bank of Thailand is keenly tracking the usage of USDT, especially concerning foreign transactions, because it is a threat to financial stability. The Thai government is also building a national-level Data Bureau. This will help monitor suspicious activities in real time so that digital assets do not facilitate illegal transactions or grey money flows.

Bitwise Launches Chainlink ETF on NYSE Arca

Bitwise launched a new Chainlink-based ETF, making it the most recent entry in the emerging market of crypto-linked investment products. The Bitwise Chainlink ETF (CLNK) debuted on the NYSE Arca, giving investors an option to get exposure to one of the most popular blockchain projects. This ETF comes after Grayscale rolled out its Chainlink ETF, further expanding the number of regulated crypto investment products.

CME Group to Launch Cardano, Chainlink, and Stellar Futures

CME Group introduced new crypto derivatives products by adding futures contracts for Chainlink, Stellar, and Cardano. New futures contracts will be launched on February 9, 2026. They will offer traders a better chance to hedge their positions in these popular digital assets. The introduction of these contracts represents an ongoing move by CME to expand its crypto product offerings following increased demand for regulated access to the market.

Our Crypto product suite is growing with new Cardano, Chainlink and Stellar futures. 🚀

Available in both larger and micro sizes, these contracts will offer the capital efficiency and versatility to expand your strategy. ➡️ https://t.co/kl3EMcEzFi pic.twitter.com/HUC6rUPSSP

— CME Group (@CMEGroup) January 15, 2026

These new contracts will be both standard and micro. Here, traders will have the option of trading with larger or more affordable positions. The move by CME Group to expand its crypto derivatives offering follows a year of record-breaking success in its crypto futures and options markets.

Ripple and LMAX Group to Expand Stablecoin Use

Ripple collaborated with LMAX Group to facilitate the use of stablecoins within institutional markets. As part of the deal, Ripple commits to financing LMAX $150 million to help it expand its cross-asset offerings. Ripple’s USD-linked stablecoin (RLUSD) will be integrated as a core collateral tool within the global trading framework of LMAX. As a result, this will enable it to be used by banks and brokers for margin and settlement purposes.

LSEG Launches Blockchain-Based Settlement Platform for Tokenized Deposits

The London Stock Exchange Group (LSEG) introduced a new 24/7 blockchain-based settlement platform for tokenized bank deposits. The service, known as LSEG Digital Settlement House (DiSH), enables instant payment and settlement across multiple currencies.

The platform aims to offer liquidity management and reduce settlement periods so that institutional and retail traders can have a better financial infrastructure. The LSEG DiSH platform grants intraday borrowing and lending as well, which allows greater flexibility in managing digital assets.

Bitpanda Eyes IPO in 2026 Amid Growing Crypto Regulation

Crypto exchange Bitpanda is planning for an initial public offering (IPO) in 2026 with a valuation of between 4 and 5 billion euros. The company has hired the services of Goldman Sachs, Citigroup, and Deutsche Bank to spearhead the offering. It is likely to be conducted on the Frankfurt Stock Exchange.

Bitpanda, a cryptocurrency trading platform backed by billionaire Peter Thiel, is gearing up for a Frankfurt initial public offering as soon as the first half of this year, sources say https://t.co/nmS6yVJKVY

— Bloomberg (@business) January 13, 2026

The decision to list in Frankfurt comes after evaluating potential markets, with Bitpanda dismissing a London listing because of weak liquidity. Additionally, the IPO plans of Bitpanda coincide with a period of regulatory clarity in the crypto market. The exchange is also planning to capitalize on the friendly regulatory climate in the EU and the U.S.

21Shares Lists Bitcoin and Gold ETP on London Stock Exchange

A new exchange-traded product (ETP) combining gold and Bitcoin on the London Stock Exchange was launched by 21Shares. The product, named BOLD, follows a rules-based strategy, rebalancing monthly between the two assets depending on their relative stability. BOLD is intended to provide a potential hedge against inflation and exposure to the potential growth of Bitcoin and the stability of gold.

The BOLD ETP has gained traction since its listing and is physically backed and stored by having an institutional custodian in cold storage. The new product is the first of its kind in the UK. It will offer retail investors easy access to a diversified portfolio of digital and traditional assets.

Tom Lee’s BitMine Expands Ethereum Holdings

BitMine expanded its portfolio by acquiring 24,266 ETH. The company currently holds 4.17 million ETH, which makes it one of the largest Ethereum holders in the world. BitMine also has a staking Ethereum strategy, whose staked assets have almost doubled over the last few weeks.

Digital Asset Investment Products Market Overview

Last week, digital asset investment products saw a strong surge in inflows, reaching $2.17 billion, as per CoinShares’ latest report. The inflows were spread across major cryptocurrencies, with Bitcoin leading at $1.55 billion. Ethereum and Solana also saw significant investments, attracting $496 million and $45.5 million, respectively. Despite a positive start to the week, sentiment soured by Friday, with $378 million in outflows. This was driven by escalating geopolitical tensions and concerns over tariff threats.

Digital asset investment products saw their largest weekly inflows since October 2025 at US$2.17bn. Bitcoin led inflows with US$1.55bn while Ethereum and Solana recorded inflows of US$496m and US$45.5m respectively. Blockchain equities had a very strong week with inflows…

— Wu Blockchain (@WuBlockchain) January 19, 2026

Regionally, the US took the lead with $2.05 billion in inflows. Other countries ,such as Germany, Switzerland, and Canada, followed, contributing smaller amounts. Altcoins like XRP, Sui, and Hedera also recorded notable inflows, highlighting sustained interest across a broad range of digital assets. In addition, blockchain equities performed well, bringing in $72.6 million of inflows, underscoring strong investor confidence in the overall digital asset ecosystem.

Bitcoin Price Performance

The flagship asset, Bitcoin, displayed an impressive performance last week, surging from lows of $90K to face resistance at around $98K. Following the resistance, BTC consolidated around the $95K region to record a surge of more than 5% during that period. Meanwhile, its market cap and trading volume climbed to $1.90 trillion and $17 billion, respectively.

Looking at the weekly chart, BTC is still bouncing off strongly from its key support around the $84K level. The price has formed a steady upward trend with green candlesticks forming. The first level of resistance has been noted at the $98K region. Should the bulls reclaim this mark, BTC could seek to challenge the next resistance toward the $109K region.

Meanwhile, indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) support a further upward rally. The 14-day RSI has approached the neutral region at 46 levels from the oversold territory.

Furthermore, the histogram is slowly turning positive as the red bars fade away. This suggests that the bulls have the upper hand at the moment. The MACD line has also changed its direction from heading downwards and could make a crossover above the signal line if the current trend holds.