US Senator Cynthia Lummis reportedly expects the Senate Banking Committee to postpone its markup of the CLARITY Act after Coinbase withdrew its backing over DeFi and stablecoin reward provisions. Coinbase CEO Brian Armstrong said the current draft, which ends stablecoin rewards and raises concerns about tokenized stocks and financial privacy, would be worse than existing rules and could materially affect the firm's revenue.

Bitcoin is trading within an ascending channel, with bulls defending both the 50-week and 50-day moving averages as support while price trends higher. ETF flows and liquidation data show strong spot and institutional demand, including a recent $753.8 million single-day ETF inflow and $174.5 million in liquidations that largely hit short positions, supporting the view that the uptrend could extend toward the $130,000 area.

Bitcoin rose 5% to $95k as the broader crypto market added about $130 billion in value in the third week of the month. With cooling U.S. inflation, softer labor data and progress on the CLARITY and GENIUS Acts, some analysts see macro conditions supporting a potential push toward $100k.

XRP is compressing near the $2.30–$2.40 zone, with structure pointing to a possible expansion as volatility cools. Analysts note a 3‑day close above $2.40 could open a path toward $2.70 and potentially $3.13, while maintaining the broader uptrend as long as price holds above $2.00.

Major US exchange Coinbase has withdrawn its support for the Digital Asset Market Clarity Act after CEO Brian Armstrong warned it would leave the domestic crypto sector worse off than the current rules. Armstrong argued that the draft bill, released on Jan. 21 with a markup hearing scheduled for Jan. 27, could curb tokenized equities and DeFi, boost SEC authority over CFTC, and undermine stablecoin rewards while expanding government access to financial data.

JPMorgan expects institutional participation in crypto to expand in 2026, following nearly $130 billion of inflows in 2025—a roughly one-third rise from 2024. Analysts cite new rules, including the Clarity Act, and track flows via ETFs, CME futures, venture fundraising, and Digital Asset Treasuries. They also note weaker CME futures activity and mixed venture funding trends.

Coinbase CEO Brian Armstrong has publicly opposed the current draft of a U.S. cryptocurrency bill scheduled for a vote by the Senate Banking Committee, arguing it is worse than the existing regulatory framework. He raised concerns over privacy, DeFi oversight, stablecoin yields and the balance of authority between the CFTC and SEC, while USDC trades at $1.00 with a $75.75 billion market cap and $20.17 billion in 24-hour volume. The broader crypto industry remains split, with some stakeholders favoring further amendments to address divisive provisions.

On 15 January 2026, Pakistan began testing World Liberty Financial's USD1 stablecoin as a regulated option for cross-border transactions, running in parallel with its planned digital rupee. The initiative comes as the country advances broader digital finance reforms, including a central bank digital currency pilot, draft crypto regulation and preliminary approvals for major exchanges. Officials and critics are debating whether rapid adoption of tokenized assets and stablecoins could heighten volatility and affect perceptions of Pakistan's sovereign risk.