Invest ideasNews
31 Jan 2026, 09:00
CFTC Partners With SEC On ‘Project Crypto’ For Unified Regulatory Approach
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have announced they are relaunching the Project Crypto initiative as a joint policy effort to prepare US markets for the digital era. SEC-CFTC Joint Efforts For Project Crypto On Thursday, CFTC Chairman Michael Selig revealed that the regulatory agency is partnering with the SEC on its Project Crypto initiative to bring “coordination, coherence, and a unified approach to the federal oversight of crypto asset markets.” At a joint event on regulatory harmonization, Selig and SEC Chairman Paul Atkins outlined their plan to advance a clear crypto asset taxonomy, clarify jurisdictional lines, remove duplicative compliance requirements, and reduce regulatory fragmentation through their partnership. The SEC-CFTC harmonization agenda will focus on the fundamentals, as the chairmen detailed, including aligned definitions, coordinated oversight, and seamless, secure data sharing between agencies. “Harmonization strengthens standards through coherence, predictability, and economic rationality.” The agencies aim to ensure that “innovation takes root on American soil, under American law, and in service of American investors, customers, and businesses,” Selig affirmed during his opening remarks. He added that he had directed the CFTC staff to work with the SEC to study “joint codification” of the common-sense crypto asset taxonomy recently laid by Atkins, “as an interim measure while Congress finalizes legislation.” In a joint statement shared by the CFTC, the pro-industry chairmen explained that Project Crypto was designed to ensure that the US is ready to reinforce its global financial leadership when Congress acts: At its core, Project Crypto and our broader harmonization efforts reflect a shared philosophy: financial regulation must be precise, not punitive. Rules must be narrowly tailored to address material risks, nimble enough to adapt to technological change and remain anchored in our agencies’ statutory authorities. Innovation Exemption Timeline Pushed Back During the panel, Chair Atkins discussed the timeline for the Commission’s long-awaited innovation exemption for the crypto industry, which was initially expected to come before the end of January. As reported by Bitcoinist, the SEC chair said in December that the regulatory agency could issue innovation exemption rules for crypto firms in early 2026. Notably, the Commission has been studying a rule exemption since July 2025. The measure would allow crypto firms to quickly launch products by complying with “certain principles-based conditions designed to achieve the core policy aims of the federal securities laws” instead of “burdensome prescriptive regulatory requirements that hinder productive economic activity.” Atkins affirmed that the agency is still working on the innovation exemption, arguing that they “need to measure twice and cut once.” As he outlined, the agency wants to deliver a rule change that is “fit for purpose that will allow enough people to be able to develop their products, you know, within a predictable ambit of maneuver and then with an end date, an off-ramp, that sort of thing.” In addition, he noted that last year’s government shutdown delayed progress on crypto regulation, adding that the potential new shutdown could further delay the highly anticipated measure. Atkins denied that the SEC is waiting on the market structure bill to put out the innovation exemption, arguing that it is within the agency’s authority. However, he emphasized that they are taking the upcoming regulation into account because “there are a lot of moving parts to the situation.” “I just want to make sure that we keep the train going forward at full speed and for all parties’ sake,” he asserted, but did not offer a new potential timeline for the innovation exemption rollout. Meanwhile, Chair Selig also shared his plan to explore “ways in which the agency can encourage innovation in software development and support builders as they work toward product market fit.” This includes assessing whether an innovation exemption “may be appropriate in certain circumstances.”
31 Jan 2026, 09:00
Bitcoin hits 2-month low: Can Trump’s rate-cut push lift BTC?
Rate cuts vs. reality: Can President Trump’s Fed pick move Bitcoin?
31 Jan 2026, 08:45
Investor argues Fed nominee Kevin Warsh won’t remain a policy hawk
Stanley Druckenmiller, a billionaire investor and longtime mentor of Donald Trump’s Federal Reserve chair nominee, pushed back on Kevin Warsh’s reputation as a hardliner on interest rates, noting he isn’t always hawkish on monetary policy. He dismissed the idea that Warsh is rigid on rates, saying, “I’ve seen him go both ways,” after President Trump nominated Warsh to succeed Jerome Powell. Warsh’s years at the Fed shaped his hawkish profile, particularly after transcripts revealed that he had emphasized inflation risks just days before Lehman Brothers went under in 2008. Druckenmiller said that Warsh is flexible about Greenspan’s methods President Trump has been outspoken about demands for rate cuts, frequently criticizing Chair Jerome Powell for his refusal to cut borrowing rates. However, there remains skepticism in financial circles about Warsh getting Powell’s job, as they believe his views on cutting the Fed’s balance sheet may drive long-term rates higher. But unlike many investors, Druckenmiller backs Trump’s appointment of Warsh. He argued that the former Fed governor, a partner at his family office since 2011, supported rate cuts during the financial crisis and favored easing policy at the outset of the pandemic. The duo even warned the Fed in a 2018 commentary against raising rates too soon, a recommendation the central bank later walked back amid market turmoil. Druckenmiller also asserted that Warsh is open-minded about Greenspan’s methods, which shaped Fed policy during a decade of strong productivity growth. He added that Warsh’s Stanford role and proximity to Silicon Valley make him exceptionally equipped to weigh tech risks and benefits, with a network few can match. “I could not think of a single other individual on the planet better equipped,” stated Druckenmiller. He further contended, “I’m really excited about the partnership between him and Bessent. Having an accord between the Treasury secretary and Fed chair is ideal.” The Treasury Secretary concurs with Warsh that a spike in AI productivity could allow the Fed to lower rates without triggering inflation. According to the Financial Times, Bessent and Warsh have already been acquainted through their shared relationship with Druckenmiller. Analysts say Warsh’s selection was an odd choice Some on Wall Street view Trump’s selection of Kevin Warsh as Fed chair as highly unusual. Warsh, if confirmed, will need to reconcile his previous support for higher interest rates with a president eager to reduce rates and willing to pressure Fed members to do so. Warsh secured Trump’s spotlighted contest by promising Fed “regime change,” pledging to shrink the balance sheet, and arguing that AI-driven growth will curb inflation. His stance was seen by some as something that would ease the ‘Sell America’ frenzy.” David Robin, an interest-rate strategist at TJM Institutional Services, stated, “Warsh is a data-dependent, Fed-credibility choice, so Fed watchers can breathe a bit of a sigh of relief. Conversely, I’m hard-pressed to think Trump would appoint anyone who didn’t commit to lower rates over time starting in June.” However, Jonathan Levin noted in Bloomberg Opinion that Trump turning the Fed chair hunt into a spectacle and picking Warsh are likely to both roil markets and leave most people unsatisfied, including himself. He also claimed that Warsh’s hawkish profile would make it even more difficult for him to build credibility. The smartest crypto minds already read our newsletter. Want in? Join them .
31 Jan 2026, 08:30
Trump Nominates Pro-Crypto Kevin Warsh For New Fed Chair — Details
United States President Donald Trump has unveiled former Federal Reserve Governor Kevin Warsh as his pick for the next chair of the US central bank. This move confirms the circulating rumors after the former Fed governor reportedly met with Trump at the White House on Thursday, January 29. Trump Pushes Warsh To Senate For Fed Chair Position On Friday, January 30, Trump, via his social media platform Truth Social, announced his nomination of ex-Fed official Kevin Warsh as the successor of Jerome Powell as the Federal Reserve chairman. Prior to this announcement, prediction platforms had heavily tipped Warsh as Trump’s likely pick. Related Reading: Why Litecoin Price Going To $2,000 Is Not A Fantasy, But Market Cap Math Warsh previously served on the Federal Reserve Board of Governors from 2006 to 2011 and held senior roles at the White House National Economic Council during former President George Bush’s administration. The former Morgan Stanley banker was considered for the Fed chair job in 2017 before Powell was eventually appointed. Trump said in his announcement: I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best. On top of everything else, he is “central casting,” and he will never let you down. Congratulations Kevin! Warsh has been a vocal critic of the Federal Reserve’s monetary policy long before Powell became chair. Unsurprisingly, his recent stance appears to align with Trump’s agenda of lowering interest rates. In fact, the former Wall Street executive said in an interview last July that President Trump was right to push the Fed to cut rates. Trump’s nomination of Warsh as the Fed chair still needs to be confirmed by the US Senate, with many commentators expecting a battle between the executive and legislative arms. While Trump seeks a Fed chair that listens to the White House, a homage that Powell has refused to pay, the Senate believes the Federal Reserve should function independently. What Does Warsh’s Selection Mean For Crypto? Warsh and Powell seem to be on opposite sides of the divide when it comes to the cryptocurrency industry and Bitcoin. While the current Federal Reserve chair has consistently played down BTC’s relevance in the greater US economy, Warsh has been fairly positive about the world’s largest cryptocurrency. In a recent conversation hosted by the Hoover Institution, Warsh said that Bitcoin is an important asset that doesn’t trouble him, and he doesn’t view the coin as a substitute for the dollar. “Bitcoin can help inform policymakers when they are doing things right or wrong,’ the former Morgan Stanley banker said. Related Reading: Bitcoin Needs Deeper Liquidity Before A Real Recovery Takes Shape: Analysts Featured image from iStock, chart from TradingView
31 Jan 2026, 07:53
US Government Shutdown 2026: How Is the Stalemate Impacting the Crypto Market?
BitcoinWorld US Government Shutdown 2026: How Is the Stalemate Impacting the Crypto Market? The United States officially entered a partial government shutdown at 12:01 a.m. on January 31, 2026 , following the House of Representatives’ failure to pass a Senate-approved spending package. This political deadlock has triggered immediate consequences for the digital asset sector, creating a “data vacuum” for traders and freezing critical regulatory progress at the SEC and CFTC . As investors react to the uncertainty, the crypto market is experiencing heightened volatility, significant ETF outflows , and a pause on major legislative bills like the CLARITY Act . How Is the Shutdown Affecting Bitcoin Prices and Market Liquidity? The news of the shutdown has shifted market sentiment into a state of “ Extreme Fear ,” driving capital away from risk-on assets like cryptocurrency and toward traditional safe havens such as gold. Bitcoin Price Correction: Leading into the shutdown, Bitcoin (BTC) prices fell roughly 7% , testing the critical support range of $81,000–$83,000 as traders de-risked their portfolios. Massive Liquidations: The volatility resulted in a massive leverage flush. On January 30 alone, over $1.68 billion in total crypto liquidations occurred, with long positions accounting for 93% of the wipeout. ETF Outflows: Institutional caution is evident in the spot market. Spot Bitcoin ETFs recorded net outflows totaling approximately $818 million in a single day as large-scale investors moved to the sidelines to await political clarity. Why Does the Shutdown Freeze Crypto Regulations and Economic Data? A prolonged shutdown halts the “administrative machinery” of the U.S. government, which has a direct downstream effect on crypto regulation and economic forecasting. SEC & CFTC Freeze: Both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have transitioned to “emergency-only” staffing. This effectively pauses the review of at least 16 spot crypto ETF applications —including highly anticipated filings for Solana and Litecoin —and halts the issuance of new “no-action” letters. Legislative Delays: The Digital Asset Market Structure Bill (also known as the CLARITY Act ), which was poised for a breakthrough in Q1 2026 , is now stalled. Congressional focus has pivoted entirely to resolving the budget deadlock, delaying vital industry legislation. The “Data Vacuum”: The suspension of federal agencies means the release of critical economic reports—such as CPI inflation data and Non-Farm Payrolls —will be delayed. Without these macro signals, crypto traders lack the guidance needed to predict Federal Reserve interest rate moves, leading to “choppy” and unpredictable price action. Frequently Asked Questions Will the government shutdown crash Bitcoin prices further? While short-term volatility is high, the impact depends on the duration of the shutdown. Currently, the market is pricing in “Extreme Fear,” pushing Bitcoin down to the $81,000 range. However, if the shutdown resolves quickly—with a House vote expected as early as February 2, 2026 —prices may stabilize. Conversely, a long-term stalemate could test the thesis of Bitcoin as a “non-correlated” asset. How does the shutdown affect pending Crypto ETF approvals? The shutdown effectively pauses the approval clock. With the SEC operating with minimal staff, the review process for new products, including Solana and Litecoin ETFs , is halted. No new approvals or regulatory guidance will be issued until full government funding is restored and agencies return to normal capacity. Is Bitcoin considered a safe haven during a government shutdown? Historically, this is debated. While some investors view Bitcoin as “Digital Gold” that should rise when the fiat system looks dysfunctional, the current market reaction shows a correlation with risk assets. In the immediate term, liquidity concerns are driving investors toward cash and physical gold rather than crypto, though this could shift if the shutdown extends for weeks. Conclusion The January 2026 government shutdown serves as a significant stress test for the mature crypto market. With over $1.68 billion in liquidations and a freeze on SEC regulatory progress, the event highlights the sector’s continued sensitivity to U.S. fiscal dysfunction. Traders should remain cautious of the “data vacuum” and monitor the upcoming House vote on February 2 , as the restoration of government operations is the primary catalyst needed to bring stability back to digital asset prices and resume the industry’s legislative momentum. This post US Government Shutdown 2026: How Is the Stalemate Impacting the Crypto Market? first appeared on BitcoinWorld .
31 Jan 2026, 07:05
Bitcoin Price Holds Steady Despite Partial US Government Shutdown
Although the Senate passed a package of funding bills at the end of the business week, the US government still shut down partially on Saturday morning. Nevertheless, House Speaker Mike Johnson noted that the chamber is expected to pass the Senate-approved funding deal on Monday as the POTUS outlined his support for it. Perhaps that’s the reason why BTC remained relatively calm following the Thursday storm. With a 71-29 vote, the Senate greenlighted a package of five bills, plus a two-week stopgap measure that provides lawmakers with more time to work out disputes over funding for the Department of Homeland Security. The House of Representatives will vote to approve the final version of the deal on Monday, so the federal government has shut down for the second time during Trump’s current presidency. However, this one is expected to be significantly shorter, unlike the record 43-day period in 2025. US Office of Management and Budget Director Russell Vought advised federal agency heads that their employees “should report to work for their next regularly scheduled tour of duty to undertake orderly shutdown activities.” “The Administration will cotinue working with the Congress to address recently raised concerns to complete appropriations for Fiscal Year 2026. It is our hope that this lapse will be short,” he added . In the light of this new sort of uncertainty in the world’s largest economy, bitcoin’s price has remained relatively stable. The asset tumbled hard on Thursday to a multi-month low of $81,000 but managed to recover some ground on Friday and Saturday morning and now sits close to $84,000. BTCUSD Jan 31. Source: TradingView Some altcoins have even charted more notable gains, such as XMR (11%), CC (8.5%), and HYPE (6%). SOL is also up by 4%. The post Bitcoin Price Holds Steady Despite Partial US Government Shutdown appeared first on CryptoPotato .
