Regulatory momentum and market pressures: What's next for crypto?
By John Nada·Jan 24, 2026·3 min read
Crypto markets face declines amid regulatory developments; Coinbase's Armstrong pushes for clearer U.S. rules. What's next for Bitcoin and Ethereum?
Crypto markets are struggling, with major currencies experiencing significant declines. Bitcoin fell by 3% to $88,200, while Ethereum dropped 6% to $2,905. Solana and XRP also faced downturns, down 2% to $127 and $1.88 respectively. This comes after a tumultuous Tuesday where selling pressure intensified, leading to the liquidation of over $1 billion in long positions for Bitcoin.
Despite the market turmoil, there were notable developments in the cryptocurrency space. Bitcoin and Solana have both tumbled below key technical support levels, prompting concerns among investors. However, Delaware Life has taken an innovative step by linking Bitcoin exposure to a fixed indexed annuity, connecting its performance to BlackRock’s spot Bitcoin ETF. This move could signify growing interest in integrating cryptocurrency within traditional financial products.
Meanwhile, Trump Media announced plans to airdrop crypto tokens to its shareholders in February, marking its initial foray into on-chain incentives tied to equity ownership. This could signal a new trend in corporate strategies, as companies seek ways to engage stakeholders in the digital asset space.
At the World Economic Forum in Davos, Coinbase CEO Brian Armstrong highlighted the urgent need for a balanced U.S. crypto market structure bill, emphasizing the potential for a mutually beneficial regulatory framework. His participation reflects the increasing focus regulators are placing on creating clear guidelines for the industry amid rising scrutiny.
In Portugal, the gambling regulator made headlines by blocking access to Polymarket, citing concerns over unlicensed gambling. This decision reflects a broader global trend where prediction markets are facing regulatory hurdles, raising questions about the future of decentralized platforms.
Adding to the regulatory complexities, the CFTC has indicated that it is underprepared for a more extensive oversight role in the cryptocurrency sector. The agency's workforce has seen a reduction of approximately 21.5%, which may hinder its ability to effectively monitor and regulate the rapidly evolving digital asset landscape.
In a more optimistic development, Galaxy Digital announced its plans to launch a $100 million hedge fund focused on cryptocurrency and fintech investments. This move could attract institutional capital as the firm seeks to capitalize on emerging opportunities within the digital asset sphere.
With the recent fluctuations in market prices and rising regulatory pressures, the future of cryptocurrency remains uncertain. Investors and stakeholders will undoubtedly be watching closely for further developments and potential shifts in the landscape. As traditional finance increasingly integrates with digital assets, how will the regulatory environment adapt, and what implications will this hold for market stability?