The SEC said it will operate with minimal staff beginning January 31, 2026 due to a U.S. government shutdown. Its contingency plan pauses tokenized securities registration and crypto product exemptions, slowing reviews across key divisions. Markets expect short-term disruption, while Ethereum trades at $2,439.50 after recent declines.

On January 30, 2026, at CFTC headquarters, SEC Chair Paul S. Atkins and CFTC Chair Michael Selig announced Project Crypto, a joint initiative to harmonize U.S. cryptocurrency regulation. The project seeks to create a unified framework for trading, custody, and clearing, aiming to reduce investor confusion and improve market efficiency. Analysts expect clearer oversight and codified token classifications to strengthen U.S. competitiveness in global digital asset markets.

On January 30, 2026, SEC Chair Paul S. Atkins and CFTC Chair Michael Selig launched Project Crypto at CFTC headquarters to harmonize cryptocurrency regulation. The initiative seeks to align rules on trading, custody, clearing, and risk management while reducing investor confusion and compliance burdens. Analysts also note the move comes as Bitcoin trades at $83,365.96 with a 24.75% price decline over the past 90 days and a market cap of $1.67 trillion.

On December 27, 2025, Flow experienced a security breach. On January 31, the Flow Foundation said it permanently destroyed 87.4 billion counterfeit FLOW tokens, concluding technical remediation, according to a GlobeNewswire statement. The foundation cited restored transaction health with over 3 million weekly transactions and referenced recovery efforts after a $3.9 million theft, alongside added security measures.

On October 10, 2025, OKX CEO Star Xu publicly argued that Binance's USDe promotion was a key driver behind a sharp crypto flash crash that erased about $19 billion in positions in a single day. The event saw assets such as BTC and ETH slump as USDe allegedly depegged by 35% on Binance and has since fueled debate over centralized exchanges, risk management practices, and the future direction of crypto markets.

On January 28, 2026, the U.S. SEC clarified that tokenized securities must comply with federal securities laws, outlining expectations for issuer-sponsored and third-party models. The update aims to align blockchain-based mechanisms with existing rules and may encourage traditional institutions to explore tokenization, while broader adoption still depends on pending legislation.

On January 28, 2026, the U.S. SEC issued guidance confirming that tokenized securities must follow existing U.S. securities regulations, regardless of the technology used. The update outlines issuer obligations around registration, disclosure, reporting and anti-fraud rules, and distinguishes issuer-backed from third-party tokenized instruments. One SEC commissioner warned that the staff guidance does not carry legal force, leaving broker-dealers exposed to potential shifts in enforcement.

The Central Bank of the UAE has approved USDU, a USD-pegged stablecoin issued by Universal Digital Ltd., for use within its regulatory framework and focused on institutional settlement. As of January 29, 2026, according to CoinMarketCap, USDU is priced at $1.00 with a fully diluted market cap of $10.01 billion.

On January 29, the UAE's Central Bank approved USDU under the Payment Token Services Regulation, marking the first USD-backed stablecoin authorized within its framework. Managed by Universal Digital, USDU targets professional clients for cross-border settlements, with reserves held at Emirates NBD and Mashreq Bank, and Aquanow designated as the global distributor outside the UAE.