Former Fed Governor Kevin Warsh has moved to the top of prediction markets for the chair position after recent comments by President Trump. Jerome Powell’s term ends on May 15, and the announcement of a successor is expected this month. Silver rose over 4% and gold gained 2% while markets weighed potential policy changes.

The U.S. Senate Banking Committee, chaired by Tim Scott, has delayed a planned January 15 vote on the CLARITY Act, a key bill on crypto market structure. The postponement, which follows intense industry lobbying, adds uncertainty around rules for DeFi treatment, stablecoin yields and token issuance while drawing mixed reactions from market participants.

On January 17, 2026, Patrick Witt, Director of the White House Crypto Council, confirmed that the U.S. government is still working to build a strategic Bitcoin reserve funded only by judicially seized assets. The initiative, constrained by President Trump's executive order and complex inter-agency legal requirements, excludes open-market purchases while retained Bitcoins from Samourai Wallet developers and ongoing market shifts in Bitcoin are monitored for potential policy impact.

On January 16, Donald Trump indicated he would like Kevin Hassett to continue serving at the White House National Economic Council while also weighing him as a possible Federal Reserve Chair. Speculation over potential successors to Jerome Powell has driven notable shifts in prediction market odds, particularly for Hassett. At the same time, Ethereum is trading at $3,270.86 with a market cap of USD 394.78 billion and a 24‑hour volume of USD 23.24 billion, highlighting crypto’s sensitivity to interest rate expectations.

California's Department of Financial Protection and Innovation has ordered Nexo Capital Inc. to pay a $500,000 penalty for issuing unlicensed crypto-backed loans to 5,456 state residents between 2018 and 2022. The action adds pressure to Nexo's plans to re-enter the U.S. market, following earlier nationwide settlements tied to securities violations and investor disclosures.

On January 14, 2026, Minneapolis Fed President Neel Kashkari stressed the importance of Federal Reserve independence while addressing a Department of Justice criminal investigation into Chair Jerome Powell and alleged Trump administration pressure on the central bank. Kashkari framed the administration's actions as a monetary policy issue, defended Powell, and noted that while political tensions could add to market volatility, there is no direct, specific impact on cryptocurrencies at this stage.

On January 13, the U.S. Senate released a 278-page bipartisan crypto market structure bill after extensive negotiations in Washington. The draft sets activity-based limits on stablecoin rewards that could advantage banks and constrain non-bank firms, and allows a 48-hour window for amendments.

South Korea's Financial Services Commission has proposed capping major shareholders' ownership in cryptocurrency exchanges at 20%. On Tuesday, DAXA, representing the five largest platforms, opposed the measure, warning of market disruption and possible forced stake reductions for figures such as Song Chi-hyung and Cha Myung-hun. The plan could also affect Naver's 20 trillion KRW agreement with Dunamu.

On January 12, the Financial Services Commission of South Korea ended a nine year prohibition, permitting listed companies and registered professional investment institutions to gain crypto exposure. The framework caps allocations at up to 5% of net assets into the top 20 tokens and affects about 3,500 entities, with exchanges required to apply staggered execution and size limits. Uncertainty around stablecoin classification may influence corporate participation.