According to the Blockchain and Web3 Observatory of the Politecnico di Milano, Italy closed 2025 with around 2.8 million crypto-asset holders, equal to 7% of the population, a lower share than France, Germany and Spain. The study also reports strong growth in stablecoins and blockchain projects, alongside a sizeable group of Italian consumers who are considering entering decentralised finance for the first time.

The UK Financial Conduct Authority is developing a new cryptoasset regulatory framework following consultations in December 2025 and new legislation submitted to Parliament. The regime is set to commence on 25 October 2027, with an authorisation gateway expected from around September 2026 to oversee trading platforms, intermediaries, lending, staking, and custody activities. Firms conducting in-scope crypto business in or to the UK will move from AML-focused registration to full authorisation under the Financial Services and Markets Act once the rules take effect.

On January 26, 2026, the ECB said Executive Board member Piero Cipollone used a Süddeutsche Zeitung interview to promote a cash-like digital euro aimed at simplifying payments and lowering merchant fees. He argued it would run on European infrastructure to reduce reliance on foreign providers, and in September he cited a mid-2029 launch as a realistic timeline.

Digital asset manager Bitwise has announced on X that it is partnering with DeFi lending protocol Morpho to launch non-custodial onchain vaults designed to generate yield. The first Bitwise-managed vault aims for a 6% annual percentage yield by allocating capital into over-collateralized lending pools, with additional multi-strategy products planned on Morpho.

The global supply of fiat-backed stablecoins has climbed above $284 billion, intensifying debate over whether these tokens threaten bank deposits or enhance existing financial infrastructure. Historians, economists, and crypto industry leaders argue that stablecoin growth, shaped by recent U.S. legislation and dominated by USDT and USDC, has so far coincided with rising bank deposits instead of triggering outflows.

On 26 January, Bitwise introduced non-custodial yield strategies on Morpho, marking its first role as a curator of DeFi lending vaults. The vaults seek annualised returns of up to 6% from overcollateralised onchain lending while leaving asset custody with users. The launch is positioned as a controlled test of institutional demand for professionally managed, transparent DeFi yield products.

On January 26, 2026, Kraken launched DeFi Earn, an in‑app vault offering up to 8% APY on USDC through onchain lending. The service is available in 48 U.S. states, Canada, and the European Economic Area, with three vault options overseen by Chaos Labs and Sentora. A 25% fee applies to yield, and withdrawals may be delayed if liquidity is tight.

The Senate Agriculture Committee postponed its Tuesday markup of the Digital Commodity Intermediaries Act due to a winter storm in Washington, D.C. The session has been rescheduled to Thursday, January 29 at 10:30 a.m., intensifying focus on the bill amid parallel delays at the Senate Banking Committee.