The US Federal Reserve kept the federal funds rate unchanged in a 3.5% to 3.75% range, with two officials dissenting in favor of an additional 25-basis-point cut. At the same time, the US dollar has fallen to a four-year low, prompting analysts to argue that currency weakness could act as de facto easing and influence Bitcoin and broader crypto markets.

AI-focused data center builds across several US states are facing rising community resistance over power use, infrastructure strain and environmental impact, similar to past opposition to Bitcoin mining facilities. According to Miner Mag, local concerns have already helped delay or block around $64 billion in data center projects, prompting some jurisdictions to pause new developments while they review zoning and grid requirements. Companies including Microsoft and OpenAI are responding with more community-oriented strategies and pledges to shoulder energy costs, as some Bitcoin miners also pivot toward AI and high-performance computing.

Circle and Aleo said Tuesday that USDCx, a privacy‑oriented representation of USDC, is live on Aleo via Circle's xReserve. The asset is fully backed by USDC held in xReserve and interoperable with USDC on networks such as Ethereum, reflecting privacy‑focused chains' efforts to access regulated, dollar‑pegged assets amid growing demand for onchain confidentiality tools.

On Monday, Tether reported that its Tether Gold (XAUt) token, with a market value above $2.2 billion, now makes up more than half of the gold-backed stablecoin sector. The milestone comes as Comex gold trades above $5,000 per troy ounce and the US Dollar Index extends its slide, amid accelerating central bank gold purchases and rising demand for safe-haven assets.

Axis co-founder Jimmy Xue says stablecoin issuance has shifted from rapid expansion to consolidation as stricter US and EU rules raise compliance costs and reserve standards. Industry data shows total supply has hovered near $310 billion since October, while higher US Treasury yields curb speculative minting and emphasize payments and short-duration liquidity.

On Monday, Fitch Ratings warned that Bitcoin-backed securities exhibit heightened market value risk consistent with speculative-grade credit profiles. The agency cited Bitcoin's sharp price volatility, collateral coverage pressures and past crypto lender failures as key concerns, potentially affecting how institutions evaluate crypto-linked credit products.

The Digital Chamber plans to host more than 50 member companies in Washington, D.C., on Thursday to brief Senate offices on the Responsible Financial Innovation Act market structure bill. Senate Agriculture and Banking Committees are expected to move toward markup in mid-January, with Senator Tim Scott scheduling a Jan. 15 vote on market structure. Analysts and lawmakers have warned that the 2026 U.S. midterm elections and potential government shutdowns could influence the bill's timing and prospects.

CoinFlip introduced a workplace benefit that lets US employees buy cryptocurrencies via payroll deductions, with allocations starting at $25 per pay period. The program supports Bitcoin, Ether, Solana and select stablecoins. On Aug. 7, US President Donald Trump signed an executive order directing federal agencies to review the treatment of alternative assets in retirement plans.

On Tuesday, Tether launched Scudo, a unit equal to one‑thousandth of a troy ounce and 1/1,000 of an XAUT token, to enable smaller onchain gold transactions. XAUT is backed by more than 1,300 gold bars and has a market cap of about $2.3 billion, according to Tether. The rollout follows a year in which gold prices rose above $4,550 per troy ounce.