Crypto markets moved through a week driven mainly by policy decisions and institutional activity rather than price action. Regulators across regions continued to clarify how digital assets will be treated, with Japan signalling a shift toward crypto ETFs and India keeping its existing tax regime unchanged. 

Developments in U.S. politics, corporate treasury moves, and blockchain infrastructure also influenced sentiment during the week.

Below is a recap of the developments that mattered most.

Top Headlines

The week’s biggest developments reflected how policy decisions, regulatory signals, and institutional positioning continue to shape crypto markets, even as price action remained relatively muted.

Trump picks Kevin Warsh for Fed Role, stirring market debate

U.S. President Donald Trump’s backing of Kevin Warsh for a senior Federal Reserve role brought monetary policy back into focus. Warsh, a former Fed governor, has long criticised extended quantitative easing and has raised concerns about the side effects of aggressive central bank intervention.

The development drew attention across financial markets, including crypto. Market participants pointed to Warsh’s views on inflation control, balance sheet management, and asset valuations as factors that could influence liquidity conditions. Any move toward tighter policy is seen as relevant for Bitcoin and other risk assets, especially as institutional participation remains closely linked to macro policy signals.

Tether posts $10B profit as U.S. treasury holdings hit record $141B

Tether reported over $10 billion in profit for 2025, with reserve assets growing to nearly $193 billion. Its U.S. Treasury holdings hit a record $141 billion, making it one of the largest private holders of government debt. The stablecoin now serves more than 530 million users, underlining its dominance as a key liquidity provider in crypto markets.

Japan lays out crypto ETF roadmap for 2028

Japan indicated a possible shift in its approach to digital assets after reports suggested crypto exchange-traded funds (ETFs) could be allowed by 2028. While regulators have not announced any immediate approvals, discussions are reportedly underway to bring Japan’s framework closer to global standards.

The move stands out for a market that has traditionally taken a cautious stance following earlier exchange failures. If implemented, crypto ETFs could allow greater participation from institutional investors, including asset managers and pension-linked funds, though the proposed timeline points to a gradual rollout.

Union Budget 2026 leaves India’s crypto policy unchanged

India’s Union Budget 2026 did not introduce any changes to crypto taxation or regulation. The government retained the 30% tax on crypto gains and the 1% TDS on transactions, with no reference to licensing, classification, or oversight.

For India’s estimated 90 million crypto users, the outcome reinforced concerns around prolonged uncertainty. Industry participants said the lack of movement continues to limit domestic participation and innovation, while encouraging startups, traders, and capital to move offshore.

Strategy Inc. and Bitmine extend corporate accumulation

Corporate accumulation remained active during the week. Strategy Inc. disclosed the purchase of 2,932 Bitcoin for $264 million, bringing its total holdings to 712,647 BTC. The company continues to expand its Bitcoin treasury through periodic purchases.

Bitmine disclosed this week that its Ethereum holdings have climbed to 4.2 million ETH, with a total valuation of about $12.8 billion. The update places the company among the largest known corporate holders of Ether. The disclosure also reinforces the steady interest from institutions treating Ethereum as a long-term balance sheet asset rather than a short-term trade.

Ethereum prepares ERC-8004 mainnet rollout

Ethereum developers confirmed that ERC-8004 is scheduled to go live on the mainnet. The new standard is intended to support AI-driven agents that interact directly with smart contracts and manage assets on-chain.

According to developers, ERC-8004 is aimed at simplifying automated contract interactions across decentralized applications. While usage is still expected to be limited in the early stages, the rollout reflects continued development work linking artificial intelligence tools with Ethereum’s existing infrastructure.

Hyperliquid leads liquidity rankings

Hyperliquid topped global crypto liquidity rankings during the week, moving ahead of several centralized exchanges in reported market depth. The data showed increased activity on the decentralized derivatives platform, pointing to growing trader participation outside traditional centralized venues.

Following the rankings, Hyperliquid’s HYPE token rose about 20%, reflecting increased activity on the platform.

News you might have missed

• Winter Storm Frenan caused a 60% drop in Foundry USA’s mining hashrate as operations were temporarily halted.
• Fake Clawdbot tokens surged amid online speculation before being flagged as scams; the Moltbot founder said he would “never do a coin.”
• Binance shifted $1 billion from its SAFU fund into Bitcoin, adjusting its user protection reserves.
• The U.S. government built cash reserves ahead of a possible shutdown as Trump initiated legal action against his administration.
• The SEC reiterated that tokenized securities fall under the same rules as traditional assets.
• OFAC sanctioned UK-based crypto exchanges over alleged Iran-linked activity.
• The Czech central bank governor reaffirmed support for a Bitcoin pilot.
• Justin Sun claimed trillions could move to Tron in 2026.
• OKX’s CEO criticized Binance over responsibility for the October market crash.
• Silver gained 100% in 50 days, while gold prices declined sharply.
• The U.S. DOJ forfeited $400 million tied to a major cryptocurrency mixer.

What to expect next week

Market sentiment is expected to stay closely tied to macro and political developments, especially around Federal Reserve leadership and ongoing fiscal uncertainty in the U.S. Ethereum developers will be watching the rollout of ERC-8004, while markets across Asia look for more clarity on Japan’s ETF plans. In India, focus remains on whether any regulatory direction emerges following the Union Budget 2026.

Union Budget 2026 has once again passed without any reference to cryptocurrency, extending India’s long-standing silence on crypto regulation. There was no mention of digital assets, no indication of a regulatory framework, and no change to the existing tax structure introduced in 2022.

The 30% tax on crypto gains and the 1% TDS on every transaction continue for the fourth straight year. Since their introduction, these measures were expected to act as interim steps until clearer rules were put in place. Budget 2026 indicates that this transition has yet to occur.

Crypto remains taxed, but not recognised.

Four years since the crypto tax, still no policy framework

When crypto taxation was announced in 2022, the government indicated that regulation would follow. That framework is still missing.

Budget 2026 does not explain how crypto is treated under Indian law. It is still unclear whether it is considered an asset, a security, or a speculative instrument. The budget also does not mention investor protection, exchange licensing, or the place of crypto in the wider financial system.

This continued silence reinforces the impression that crypto is being treated more like gambling than as a financial or technology-based asset.

Industry Reactions

Reacting to the Union Budget 2026, Edul Patel, CEO of Mudrex, said the decision to retain the existing tax framework brings continuity but falls short of industry expectations.

“The Union Budget’s decision to maintain the existing taxation framework for Virtual Digital Assets provides continuity, but the industry was hoping for calibrated reforms to improve market participation and onshore liquidity.”

He added that despite regulatory and tax hurdles, the sector continues to expand, and targeted reforms could have strengthened India’s global position.

“While the sector continues to grow despite regulatory and tax challenges, the rationalisation of transaction taxes and enabling loss offsets would have further strengthened India’s competitiveness in the global digital asset economy.”

Patel noted that the industry remains hopeful that ongoing engagement with policymakers will lead to a more supportive environment.

“We remain optimistic that continued dialogue between industry and policymakers will help shape a more growth-oriented framework going forward.”

— Edul Patel, CEO, Mudrex

Meanwhile, Ashish Singhal, Co-founder of CoinSwitch, welcomed the introduction of explicit penalty provisions, calling them a step forward for compliance in the crypto ecosystem.

“The introduction of specific penalty provisions is a positive milestone for the crypto industry. By mandating a ₹200 daily penalty for reporting delays and a ₹50,000 fine for inaccuracies, the Government has formalized high standards of tax compliance and reporting for both users and VASPs.”

He said these measures validate the compliance-first approach followed by Indian platforms.

“This validates the ‘Compliance-First’ model of Indian platforms like CoinSwitch, shielding users from reporting risks and aligning with compliance goals.”

However, Singhal cautioned that compliance alone would not be enough to drive sustainable growth in the sector.

“While compliance and surveillance have tightened, true growth requires economic rationalization to keep Web3 innovation and talent within India.”

He pointed to existing tax provisions as barriers to genuine participation.

“The 1% TDS, lack of offset of losses and the 30% flat capital gains rate create an asymmetric environment for genuine participation.”

According to Singhal, such measures could push users toward offshore platforms.

“These measures risk driving Indian capital toward non-compliant offshore platforms, leaving users vulnerable to legal and financial scrutiny.”

He reiterated CoinSwitch’s commitment to working with policymakers on reforms.

“CoinSwitch remains fully committed and we will continue to work with the Government towards a balanced, user-first tax regime that pairs robust oversight with economic viability.”

— Ashish Singhal, Co-founder, CoinSwitch

In a separate remark, Edul Patel said the proposed penalties signal a broader policy push towards transparency and accountability.

“The proposed penalties for non-disclosure and misreporting of crypto assets reflect a broader policy shift towards strengthening compliance and transparency in India’s digital asset ecosystem, building on the recently updated FIU-IND guidelines for exchanges.”

He added that clearer accountability helps align crypto with mainstream financial standards.

“By creating clearer accountability, these measures bring crypto transactions closer to mainstream financial reporting standards.”

Patel concluded that long-term growth would depend on trust and regulatory clarity.

— Edul Patel, CEO, Mudrex

“Long-term growth in the sector depends not only on innovation, but also on trust, consistency, and regulatory clarity, and measures like these move the industry in the right direction.”

Commenting on the Budget, SB Seker, Head of APAC at Binance, said the Union Budget 2026:

“reiterates India’s focus on building the foundations of a Viksit Bharat, with continued emphasis on digital public infrastructure such as AI, data centres, and cloud-led growth.

“From a digital assets perspective, the Budget maintains the existing taxation framework. At the same time, it underlines the need for a more forward-looking tax approach that evolves with market maturity, technological convergence, and India’s broader digital ambitions.

“Globally, governments are moving towards clearer and more calibrated tax and compliance frameworks for digital assets. Binance believes that globally aligned tax policies, combined with strong compliance standards and investor education, can support sustainable long-term growth.”

India leads global crypto adoption despite policy silence

India remains a global leader in crypto adoption, with more than 90 million users as of 2024. The country has the largest crypto user base in the world, mainly driven by retail investors, a young population, and widespread access to mobile trading apps.

In November 2025, India became the world’s second-largest holder of Bitcoin, with retail investors holding nearly $120 billion worth of the asset. This placed the country just behind the United States in terms of retail Bitcoin holdings.

Despite the scale of adoption and capital involved, crypto does not find any mention in the country’s most important fiscal policy document.

Crackdowns increase even as regulation remains absent

Even as crypto remains outside budget discussions, regulatory action around the sector has picked up.

Earlier this year, the Financial Intelligence Unit (FIU) tightened the screws on crypto platforms by pushing stricter KYC compliance norms. Exchanges were asked to strengthen verification and reporting processes, adding regulatory pressure without offering legal clarity.

From April 2026, authorities will also be able to track crypto-related emails and social media activity, expanding oversight of digital asset discussions and transactions.

The focus, for now, appears to be on monitoring and enforcement rather than putting a formal regulatory framework in place.

Stablecoin signals and digital rupee add to confusion

The silence in Budget 2026 stands in contrast to recent government statements on digital assets.

In October, Finance Minister Nirmala Sitharaman urged nations to prepare for stablecoins, recognising their growing role in global finance and cross-border payments. Around the same period, the government reiterated its plans to expand the RBI-backed digital currency.

But Union Budget 2026 stays silent on where private cryptocurrencies fit into this wider plan. There is still no clarity on whether India intends to introduce a sovereign stablecoin or how it would work alongside crypto assets already used by millions of Indians.

Taxed, tracked but still ignored

The continued exclusion of crypto from the Union Budget 2026 reflects the gap between how widely crypto is used in India and how it is dealt with at the policy level.

Crypto in India continues to be heavily taxed and closely monitored, but it still functions without a clear regulatory framework. With millions of users and substantial retail money already involved, the lack of direction raises a basic question: how long can the government continue to delay taking a clear policy call?

As the Union Budget 2026 ends without addressing crypto once again, that question remains unanswered. Why does a country that leads global crypto adoption continue to avoid spelling out crypto’s place in its financial system?