According to ChainCatcher, Flow's official account on the X platform has provided an update regarding the recent attack on its network. The network has decided against rolling back or restructuring, opting instead for an 'Isolation Recovery Plan.' Key points of the new strategy include: 1. No rollback or reorganization, preserving all legitimate user activities. 2. No need for partners to replay transactions. 3. Over 99.9% of accounts remain unaffected and will resume normal operations upon restart. 4. Temporary restrictions will be placed on accounts receiving illegally minted tokens during the restart. The network recovery will occur in phases: Phase one involves the launch of the Cadence environment, with temporary limitations on the EVM. Phase two will see Cadence repairs, expected to take approximately 24-48 hours. Phase three includes EVM repairs and a restart. Phase four will restore cross-chain bridges and exchanges, with the exact timing determined by operators after confirming stability.

According to ChainCatcher, Strategy Executive Chairman Michael Saylor recently tweeted 'Back to Orange,' indicating a renewed interest in acquiring Bitcoin. This statement prompted a response from gold advocate and economist Peter Schiff, who questioned the source of Saylor's funding for additional Bitcoin purchases. Schiff speculated whether Saylor would use reserves created from recent stock sales or sell stocks at a discount below net asset value, potentially resulting in a negative Bitcoin yield.

According to PANews, the Hong Kong Monetary Authority has announced plans to fully implement new banking capital regulations based on the Basel Committee on Banking Supervision's crypto asset standards starting January 1, 2026. The Basel Committee defines crypto assets as private 'digital assets' primarily reliant on cryptography and distributed ledger technology or similar technologies. These 'digital assets' are characterized as digital representations of value that can be used for payment, investment, or acquiring goods or services. The definition encompasses not only cryptocurrencies like Bitcoin and Ethereum but also real-world assets (RWA) and stablecoins.

Ethereum price started a decent upward move above $2,900. ETH is now showing positive signs and might eye more gains above $3,000. Ethereum started a recovery wave above the $2,920 zone. The price is trading above $2,950 and the 100-hourly Simple Moving Average source: https://www.newsbtc.com/analysis/eth/ethereum-price-targets-3k/

The Atlas memecoin, themed around US Vice President JD Vance’s pet dog, has nearly half of its supply controlled by 68 wallets showing signs of coordinated buying and potential insider activity. The token was heavily promoted by the influencer Whale Insider, raising concerns that retail investors could be at risk from price manipulation.

According to Odaily, UK Finance has recently reviewed the progress of the UK's crypto regulation for 2025 and outlined key policy directions for 2026. Over the past year, discussions in the UK have focused on stablecoins, crypto asset trading platforms (CATPs), and market manipulation prevention. The regulatory focus is shifting from 'unbacked crypto assets' to stablecoins supported by real-world assets. UK Finance notes that regulators are increasingly viewing stablecoins as tools with payment and monetary attributes rather than purely investment-type crypto assets. This classification will directly impact redemption timelines, KYC requirements, and compliance costs for issuers. They also caution that if the regulatory burden on pound sterling stablecoins is higher than that on non-pound sterling stablecoins issued overseas, it could lead to issuers relocating, weakening the UK's control over stablecoins and monetary policy. Furthermore, UK Finance highlights that the core challenge for 2026 will be balancing innovation encouragement, consumer protection, and financial system resilience. This includes systemic stablecoin redemption rules, multi-currency and multi-issuer structure designs, and the integration of stablecoins with traditional payment systems. As the UK's Financial Conduct Authority launches a regulatory sandbox for non-systemic stablecoins, the country is entering the policy implementation phase. Whether the final regulatory framework can balance innovation and competitiveness will determine if London can maintain its status as an international financial center.

Flow officially updated its update on the attack on the X platform, stating that it is abandoning network rollback and shifting to an "isolation recovery plan." Key points of the new plan include: 1. No rollback/reorganization, preserving all legitimate user activity; 2. No need for partner replay transactions; 3. Over 99.9% of accounts are unaffected, and normal operation resumes immediately after restart; 4. During restart, accounts receiving illegally minted tokens will be temporarily restricted. Furthermore, the network will be restored in phases: Phase 1, Cadence environment goes live, EVM is temporarily restricted; Phase 2, Cadence is repaired (approximately 24-48 hours); Phase 3, EVM is repaired and restarted; Phase 4, cross-chain bridges/exchanges resume operation. The specific recovery time will be determined by the operators after confirming stability based on the actual situation.

A recent report by UK financial institutions outlined the progress of UK crypto regulation in 2025 and provided a key policy outlook for 2026. UK Finance noted that the past year has seen intensive discussions in the UK regarding stablecoins, crypto asset trading platforms (CATPs), and the prevention of market manipulation. The regulatory focus is gradually shifting from "unanchored crypto assets" to stablecoins backed by real-world assets. UK Finance stated that regulators are increasingly viewing stablecoins as tools with payment and monetary attributes, rather than simply investment-type crypto assets. This classification will directly impact redemption timelines, KYC requirements, and issuer compliance costs. It also cautioned that if the regulatory burden on sterling stablecoins is higher than that on non-sterling stablecoins issued overseas, it could induce issuers to relocate, weakening the UK's control over stablecoins and monetary policy. Furthermore, UK Finance pointed out that the core challenge in 2026 lies in striking a balance between encouraging innovation, protecting consumers, and maintaining the resilience of the financial system. This includes systemic stablecoin redemption rules, multi-currency and multi-issuance structure design, and the integration of stablecoins with traditional payment methods in payment scenarios. With the UK Financial Conduct Authority launching a regulatory sandbox for non-systemic stablecoins, the UK is entering the policy implementation phase. Whether the final regulatory framework can balance innovation and competitiveness will determine whether London can maintain its status as an international financial center. (Crowdfund Insider)

Venture capital in crypto sees record investments amid clearer regulations and AI advancements, reshaping market landscapes in 2025. source: https://coincu.com/news/crypto-vc-funding-regulatory-ai/

California's proposed "Billionaire Tax Act of 2026" has drawn strong opposition from many in the crypto industry. The bill proposes a 5% wealth tax on individuals with a net worth exceeding $1 billion, with the proceeds intended to fund the healthcare system and state-level aid programs. Industry experts believe this policy could lead to an outflow of entrepreneurs and capital, negatively impacting the local innovation ecosystem. Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell, among others, point out that the wealth tax is partly based on unrealized gains, potentially forcing taxpayers to sell shares or business assets to raise funds. Powell stated on the X platform that this measure could be the "last straw" preventing billionaires from staying in California, with related spending, employment, and philanthropic activities potentially shifting as a result. Castle Island Ventures founding partner Nic Carter and ProCap BTC chief investment officer Jeff Park also believe that in a context of high capital mobility, a one-time wealth tax could signal to the market the possibility of further taxation in the future. Meanwhile, Dune co-founder Fredrik Haga cited Norway as an example, stating that a similar tax system led to the exodus of high-net-worth individuals, with the actual tax revenue falling short of expectations. Supporters of the proposal include California's 17th Congressional District Representative Ro Khanna, who believes the taxes will be used to improve childcare, housing, and education, thereby promoting American innovation. However, opponents point to past California audit reports revealing issues with the efficient use of public funds, questioning whether the increased tax revenue will truly be used for its intended goals. (Cointelegraph)

Crypto executives, including Bitwise CEO Hunter Horsley and Castle Island Ventures founding partner Nic Carter, have pushed back against a proposed 5% billionaire tax in California. source: https://cointelegraph.com/news/california-billionaire-tax-crypto-executives-slam?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound

Grok, Elon Musk’s AI chatbot on X, has been praised by Vitalik Buterin for giving unpredictable responses that challenge users’ political biases and promote more truthful interactions.

A massive hack has struck Trust Wallet, one of the most widely used crypto wallets, resulting in estimated losses exceeding $6 million.

Italy’s competition authority has ordered Meta to allow rival AI chatbots on WhatsApp while investigating possible abuse of its dominant position. Meta plans to appeal, saying the policy protects its systems, but regulators worry it could limit competition and innovation in the AI market.

Nvidia has announced a $20 billion acquisition of Groq’s core assets, a landmark move that strengthens its already commanding position in the artificial intelligence chip market and reshapes the competitive landscape for AI infrastructure.

Keonne Rodriguez, co-founder of Samourai Wallet, began serving a five-year federal prison sentence and shared a personal account of his first days, describing the intake process and adjusting to prison life just before Christmas.

The Philippines has escalated its crackdown on unlicensed cryptocurrency platforms, with internet service providers beginning to block access to major global exchanges, signaling a decisive shift toward stricter enforcement of local crypto regulations.

Pudgy Penguins projected its animated characters on the Las Vegas Sphere for a week-long holiday campaign, promoting its physical products rather than NFTs. The display helped the crypto-born brand reach mainstream audiences, supporting merchandise sales and boosting recognition despite a struggling NFT market.

Kraken has officially launched the Krak Card, a Mastercard crypto debit card for residents living in the EU countries and the United Kingdom. The Krak card would allow users to spend more than 400 cryptocurrencies and fiat currencies seamlessly.

Trust Wallet confirmed a security incident affecting version 2.68 of its Chrome extension after users reported unauthorised wallet drains following a recent update. The company told users to disable the extension and upgrade immediately, saying its mobile app and other versions were not affected while the investigation continues.