Daily Brief: January 13, 2026

Market Overview

Bitcoin closed today at $91,197, gaining modestly with increased trading volume, hinting at a market that’s calm yet active. Ethereum ended at $3,092, showing a slight dip but maintaining its long-term upward trend, indicating stability despite short-term fluctuations. The overall crypto market cap stands at $3.19 trillion, slightly down from yesterday yet holding strong, with recent breakouts suggesting potential strength ahead. The general sentiment is cautiously optimistic, as investors watch for clearer moves in a market that’s consolidating with neutral sentiment.

🇰🇷 South Korea Lifts Crypto Ban with New Investment Cap

South Korea is shaking up its crypto scene by ending a nine-year ban on corporate investments in digital assets. The Financial Services Commission now allows companies to invest up to 5% of their equity in the top 20 cryptocurrencies. This move marks a significant shift in policy and could unlock substantial capital from around 3,500 eligible entities.

While the new guidelines are a step forward, the 5% cap has drawn some criticism. Many argue that this limit could hinder South Korea's ability to compete globally in the crypto market. Despite this, the policy is expected to stimulate local crypto developments, including stablecoins and Bitcoin ETFs.

The FSC plans to finalize these guidelines by early 2024, with corporate trading anticipated to begin by the end of the year. This regulatory shift reflects a broader acceptance of cryptocurrencies in traditional finance and could potentially bring trillions of won into the market, supporting the growth of local crypto companies.

Why it matters: This change opens up significant investment opportunities, aligning South Korea more closely with global crypto standards and potentially revitalizing its local market.

🔍 Powell Probe Sparks Fed Independence Debate

Federal Reserve Chair Jerome Powell is under investigation by the Department of Justice, a move he claims is politically motivated. The probe, initiated by the Trump administration, centers on the Fed's independence in setting interest rates. Powell argues this is a direct response to his refusal to bow to political pressure from President Trump, who has been vocal about his dissatisfaction with Powell's interest rate policies.

The investigation, which includes subpoenas related to the Fed's headquarters renovation and Powell's Senate testimony, comes as his term nears its end in May 2026. Tensions between Powell and Trump have escalated, with Trump considering candidates for the next Fed chair who might align more closely with his economic views. This situation raises significant concerns about the Fed's ability to operate free from political influence.

Amidst this turmoil, analysts suggest that Bitcoin could gain appeal as a decentralized asset. The uncertainty surrounding US monetary policy and central bank independence might boost Bitcoin's attractiveness, especially if confidence in the dollar wanes. While Bitcoin has seen a slight increase, traders remain cautious about its short-term prospects, reflecting mixed sentiment in the crypto market.

Why it matters: The probe into Powell highlights critical issues about the Fed's autonomy, potentially impacting future monetary policy and economic stability, while also influencing investor confidence in traditional and decentralized assets.

🛡️ Vitalik's Vision: Ethereum's Path to Ossifiability

Vitalik Buterin, Ethereum's co-founder, has unveiled a bold vision for the network's future, emphasizing the need for 'ossifiability'. This concept aims to ensure Ethereum can sustain itself without constant upgrades, akin to Bitcoin's stability. The idea is to make Ethereum resilient enough to pass what Buterin calls the 'walkaway test,' where the network can operate securely even if its developers step away.

Buterin's roadmap includes achieving quantum resistance and zk scalability, positioning Ethereum as a trustless platform for decentralized applications. While some critics worry about potential rigidity, supporters argue that ossifiability is vital for long-term resilience. The success of this initiative could cement Ethereum's role as a foundational layer for a decentralized internet.

The focus on ossification reflects a strategic shift from constant change to stability, mirroring Bitcoin's governance model. By reducing the need for frequent upgrades, Ethereum aims to protect its core value and maintain credibility as a neutral infrastructure. This approach could mitigate risks associated with unbounded growth and enhance Ethereum's reliability.

Why it matters: Buterin's vision for Ethereum's ossifiability is crucial for ensuring its long-term viability and trustworthiness, especially as technological threats evolve.

🔗 Cardano's Bold DeFi Move with XRP and Bitcoin

Charles Hoskinson, the mind behind Cardano, has set his sights on 2026 as a transformative year for the platform. The plan? Integrate major players like Bitcoin and XRP into Cardano's DeFi ecosystem. This ambitious move aims to enhance liquidity and user engagement across the board.

Cardano's Midnight, a privacy-focused layer, will play a crucial role by wrapping XRP to enable private DeFi activities. This could unlock over $100 billion in idle XRP liquidity, offering a privacy layer that the public XRPL lacks. It's a strategic push to position Cardano as a privacy leader in the DeFi space.

Despite recent price fluctuations in Midnight, Cardano's privacy token, the roadmap remains promising. The upcoming launch of decentralized apps and network expansion is expected to bolster Cardano's market position, even as the token's price stabilizes.

Why it matters: Cardano's integration of Bitcoin and XRP into its DeFi ecosystem could redefine cross-chain collaboration and privacy in the crypto space, potentially attracting significant liquidity and user adoption.

⏳ US Crypto Regulation Stalled by Bipartisan Disputes

The US Senate has postponed the markup of the Digital Asset Market Structure CLARITY Act, highlighting a lack of bipartisan support. This delay underscores the growing disagreements over key provisions in the legislation, which aims to establish federal rules for crypto markets. The House passed its version in mid-2025, but the Senate's approval remains uncertain, pushing potential regulation further into 2026.

Charles Hoskinson, founder of Cardano, expressed skepticism about the CLARITY Act's passage this quarter. He criticized the current regulatory environment and called for the resignation of Trump's crypto adviser, David Sacks, for not adequately supporting the industry. Hoskinson believes the proposed bills favor large institutions over retail investors, which could undermine the industry's health.

SEC Chair Paul Atkins remains optimistic about a new bipartisan bill aimed at resolving regulatory uncertainties. This legislation seeks to clarify the roles of the SEC and CFTC, fostering a stable market environment. Atkins sees this as crucial for positioning the US as a global leader in crypto, though the delay of the CLARITY Act suggests challenges ahead.

Why it matters: Delays in crypto regulation create uncertainty, affecting innovation and market stability, and highlight the need for clear, collaborative policies.