White House crypto adviser Patrick Witt said banks should not view stablecoin yield offerings as a threat and urged compromise between lenders and crypto platforms. He argued the debate has delayed the CLARITY market structure bill, which defines SEC/CFTC roles, and warned lawmakers face a narrowing window ahead of the 2026 US midterms.

The Netherlands' House of Representatives advanced a proposal to impose a 36% capital gains tax on savings and liquid investments, including cryptocurrencies. The measure cleared the 75-vote hurdle with 93 lawmakers in favor and would apply starting in the 2028 tax year if the Senate also approves it. Exemptions include equity in qualifying start-ups and physical property used for non-investment.

On Wednesday, a Federal Reserve staff working paper proposed treating crypto as a distinct asset class for setting initial margin in uncleared derivatives, citing higher volatility and a poor fit with SIMM categories. It recommends separate risk weights for floating coins like Bitcoin and Ether and pegged stablecoins, plus a benchmark index to calibrate those weights.

At a House Financial Services Committee hearing on Wednesday, Democratic lawmakers pressed SEC Chair Paul Atkins about a reported 60% decline in enforcement actions since Donald Trump appointed him to lead the agency. Lawmakers highlighted dismissed crypto-related lawsuits, foreign investment in Trump-linked World Liberty Financial and memecoin projects, and alleged political motivations behind pardons and dropped cases.

On Feb. 8, Lyn Alden said the U.S. Federal Reserve is shifting into a "gradual" money-printing phase, expecting balance-sheet growth to roughly match bank assets or nominal GDP and to lift asset prices only mildly. CME FedWatch showed 19.9% odds of a March cut, down from 23%, as markets weigh Jerome Powell’s guidance and leadership uncertainty.

On Friday, a16z crypto managing partner Chris Dixon argued that non-financial crypto applications have lagged due to scams, extractive behavior, and regulatory pressure, and he emphasized a 10-year build horizon. On Sunday, Dragonfly’s Haseeb Qureshi countered that these products failed because demand was absent, while Castle Island’s Nic Carter said venture theses must prove out within a 2–3 year deployment window.

Global Google search interest for the term "crypto" is hovering near its 12‑month low while the digital asset market cap has dropped from over $4.2 trillion to about $2.4 trillion. At the same time, the Crypto Fear & Greed Index recently hit an all‑time low of 5, indicating extreme fear comparable to the sentiment seen after the 2022 Terra ecosystem collapse.

More than 23% of traders now expect the Federal Open Market Committee to cut rates at its March 2026 meeting, up from 18.4% on the previous Friday. Expectations center on a 25-basis-point reduction as markets react to Kevin Warsh's nomination as the next Federal Reserve chair and weigh its impact on liquidity and risk assets.

According to the CFTC, it reissued a staff letter on Friday to broaden payment stablecoin issuer criteria to cover national trust banks, amending Staff Letter 25-40 issued on Dec 8, 2025. The move aligns with the GENIUS Act signed in July 2025 and follows the FDIC's December 2025 proposal outlining how banks could issue stablecoins via subsidiaries.