Shiba Inu fell 7% and briefly broke below short-term support before buyers quickly stepped in, signaling notable dip-buying interest. XRP has logged a death cross only days after a golden cross, with its price slipping nearly 4% and trading in a tight range around $1.97 to $2.06. At the same time, the New York Stock Exchange revealed plans for a separate 24/7 blockchain-based market for tokenized securities with instant settlement using stablecoins.

CFTC Chair Michael Selig has launched the Future-Proof initiative to overhaul decades-old U.S. derivatives, crypto, and prediction market regulations as he begins his term at the agency. Taking office on December 22 after Senate confirmation on December 18, he aims to replace enforcement-led oversight with tailored rules for blockchain, AI-driven trading, and digital asset markets. The program will review existing frameworks, modernize requirements, and build on reforms advanced under former acting chair Caroline Pham.

The combined stablecoin market cap has climbed to a record $307.7 billion, while tokenized funds and other RWAs are also at all-time highs. At the same time, Bitcoin's market cap has dropped faster than stablecoin supply, driving the Stablecoin Supply Ratio sharply lower and signaling unusually large sidelined buying power. This pattern has historically appeared near local market bottoms, with on-chain liquidity waiting for clearer risk conditions before rotating back into volatile assets.

The Digital Asset Market CLARITY Act of 2025 is a U.S. market structure proposal that seeks to define when a digital asset is treated as a security or a commodity and how trading venues and intermediaries should register under federal oversight. The House passed H.R. 3633 in July 2025, and in January 2026 the Senate Banking Committee postponed a key markup amid criticism from industry leaders over CFTC authority and stablecoin rewards. Supporters say the framework could reduce regulation-by-enforcement, while critics warn it may weaken state powers and create new pressure points for decentralization and DeFi.

In 2025, the U.S. labor market added about 580,000 jobs, the smallest annual increase since the COVID-19 pandemic and far below the 2 million positions created in 2024. Unemployment stood near 4.4% in December 2025, with roughly 7.5 million people jobless and millions more either wanting work or stuck in part-time roles for economic reasons. Analysts point to inflation, tariffs, corporate cost-cutting, AI-driven automation and a low quit rate as key forces behind the hiring freeze, and expect labor conditions in early 2026 to resemble 2025 even if unemployment gradually stabilizes later in the year.

On January 20, CFTC Chairman Michael Selig introduced the "Future Proof" program to overhaul the agency's oversight of digital assets with a focus on minimum effective regulation. The initiative is designed to update decades-old rules for derivatives to better address crypto markets, registration, customer protections, and market surveillance. On the same date in 2026, Bitcoin traded around $89,464.19 with a 3.77% daily decline and a 59.18% market dominance, reflecting broader volatility.

On January 20, 2026, Russia's Constitutional Court ruled that owners of legally obtained cryptocurrencies enjoy the same property and judicial protection rights as holders of other assets. The decision arose from a dispute over 1,000 USDT and invalidated a legal provision that made court protection conditional on prior tax notification, except for coins from mining. The judgment is expected to trigger reviews of previously rejected claims and guide lawmakers in refining digital asset regulations, while keeping mandatory reporting in place for mining-related holdings.

If Donald Trump were to die suddenly or be removed from office, analysts suggest crypto markets could see rapid sell-offs, with altcoins and leveraged positions hit hardest. Under the 25th Amendment, JD Vance would immediately assume the presidency if Trump dies or is removed after conviction, and traders would watch closely for signals that he will maintain Trump-era crypto, SEC, DOJ, and U.S. Bitcoin reserve policies. Market recovery would likely depend on how quickly and clearly the new White House commits to policy continuity and regulatory posture toward digital assets.