Crypto Weekly Roundup: Regulation, Innovation, and Market Fear

This week in crypto, major regulatory moves and market shifts are reshaping the landscape. From China halting stablecoin projects to Tether minting another billion USDT, the industry faces both progress and pushback. Meanwhile, exchanges and governments worldwide are refining their roles in crypto’s next chapter.

Chinese Tech Giants Halt Stablecoin Projects

Chinese fintech leaders Ant Group and JD.com have reportedly stopped their stablecoin development efforts following new guidance from regulators. Authorities have tightened rules on private digital currencies, emphasizing state-backed initiatives like the digital yuan.

The move shows China’s continued cautious stance on decentralized assets. This pause may slow innovation in the sector but strengthens Beijing’s control over its digital financial ecosystem.

Japan May Let Banks Directly Invest in Crypto

Japanese regulators are considering allowing banks to own and invest in cryptocurrencies directly. This would mark a major policy shift and could bring more institutional confidence to Japan’s crypto sector. The plan aims to integrate digital assets into the mainstream financial system safely. If approved, it could make Japan one of the most crypto-friendly developed nations.

CME Launches Event Contracts to Rival Kalshi and Polymarket

The Chicago Mercantile Exchange (CME) has introduced event contracts, allowing traders to bet on real-world outcomes like interest rate decisions or Bitcoin prices.

This move puts CME in direct competition with Kalshi and Polymarket, two popular prediction markets. It signals growing institutional interest in speculative event-based trading. The addition could attract both retail and professional traders looking for regulated options.

Russia Moves to Criminalize Crypto Transactions

Russia’s parliament is preparing a bill that would criminalize most cryptocurrency transactions, echoing Soviet-era restrictions on private financial dealings. The proposal aims to curb capital flight and maintain state control over money flows.

If passed, individuals and companies could face severe penalties for using or trading digital currencies. The move would isolate Russia further from the global crypto economy.

Tether Mints Another $1 Billion USDT

Stablecoin issuer Tether has minted another $1 billion in USDT, boosting its market supply amid rising demand. The new issuance suggests growing liquidity needs, especially across exchanges and DeFi platforms.

Despite ongoing transparency debates, Tether remains the dominant player in the stablecoin market. The company claims each token is fully backed by reserves, though critics continue to question its audits.

OpenSea to Launch SEA Token and Go Multi-Chain

NFT marketplace OpenSea plans to release its SEA token in Q1 2026, part of a major shift toward becoming a multi-chain trading hub. The move aims to reignite user engagement and reward long-time traders.

OpenSea’s token will likely compete with Blur’s BLUR token for market share. This marks a new phase in the evolution of NFT marketplaces, blending community ownership with interoperability.

Bank of England Eyes Stablecoin Limits

The Bank of England is considering temporary limits on how much stablecoin each user can hold, aiming to maintain financial stability during the transition to digital payments. The limits would apply until regulators are confident in the sector’s risk management.

This cautious approach shows the UK’s commitment to innovation without compromising safety. The policy could shape how stablecoins integrate into traditional finance.

Retail Investors Lose $17B on Bitcoin Stocks

According to 10X Research, retail traders lost around $17 billion by investing in overvalued Bitcoin-related stocks. The report highlights how hype around crypto-linked equities led many to buy during market peaks. As Bitcoin’s price corrected, these stocks plunged even faster. The findings underscore the risks of chasing speculative investments without understanding their fundamentals.

Ripple Seeks $1 Billion for XRP Reserve

Ripple Labs is reportedly planning to raise $1 billion to strengthen its XRP reserve. The funding round would support future liquidity needs and expand its payment network. Ripple continues to push institutional adoption despite regulatory challenges in the U.S. This move shows its long-term commitment to building utility around XRP.

Market Fear Index Hits Extreme Lows

The Crypto Fear and Greed Index has dropped to 22, signaling extreme fear among investors. The decline reflects growing uncertainty due to regulatory actions and falling prices. Historically, such levels often indicate market bottoms, but sentiment remains fragile. Traders are watching closely to see if confidence returns or panic deepens.

About Paybis

Paybis is a global cryptocurrency exchange platform that provides fast, secure, and user-friendly digital asset transactions. Founded in 2014, the company specializes in fiat-to-crypto and crypto-to-fiat conversions, enabling users to buy, sell, and swap Bitcoin, Ethereum, and other cryptocurrencies using various payment methods, including credit/debit cards, bank transfers, and e-wallets.

With a strong focus on security and compliance, Paybis is registered with regulatory authorities and implements industry-leading AML/KYC procedures. The platform is known for its intuitive interface, 24/7 customer support, and competitive exchange rates, making it a preferred choice for both beginners and experienced traders.

Wrapping Up

This week paints a mixed picture for crypto – innovation continues, but regulation and fear dominate sentiment. While projects like OpenSea and Ripple look to the future, global authorities tighten control. For investors, it’s a reminder that progress in crypto often comes hand in hand with volatility and uncertainty.

Written by

Rem Vasilenko

Rem Vasilenko is a Growth Operations Manager at Paybis. With a keen interest in FinTech, Rem brings a unique perspective to the evolving digital finance landscape. He combines his passion for FinTech with his marketing and business skills to drive innovative strategies. Find him on LinkedIn.