Daily Crypto Briefing – January 11, 2026

Banking tensions and technical developments dominated crypto headlines today, with traditional financial institutions pushing back against stablecoin yields while Ethereum faces ongoing challenges.

Top Stories

Banking Industry Warns of $6.6 Trillion Stablecoin Risk

CoinDesk reports the American Bankers Association sent a letter to the U.S. Senate warning that yield-bearing stablecoins could impact their members' ability to grant loans. JPMorgan disagrees with the assessment, downplaying the threat to traditional banking.

X Teases Crypto-Aware Smart Cashtags After Community Backlash

CoinDesk reveals X's head of product Nikita Bier outlined plans for asset-aware Smart Cashtags just one day after facing criticism from parts of the crypto community over a now-deleted post. The feature aims to provide accurate asset tracking and live pricing.

Vitalik Buterin Identifies Three Major Stablecoin Problems

The Block reports Ethereum's co-founder argues that decentralized stablecoins still face unresolved challenges around price benchmarks, oracle security, and staking incentives. Buterin suggested long-term sustainability may require independence from the dollar entirely.

Ethereum ETFs Launch "Yield War" With Cash Distributions

CryptoSlate analyzes how Grayscale has transformed Ethereum's staking yield into traditional cash distributions for ETF investors. On January 6, the Grayscale Ethereum Staking ETF paid around $0.083 per share, marking a new competitive dynamic in the ETF space.

Regulation

Senate Banking Advances Crypto Market Structure Legislation

• Bitcoin.com News reports U.S. lawmakers are moving closer to rewriting digital asset rules as a key Senate panel advances sweeping market structure legislation
• Tennessee ordered Kalshi, Polymarket, and Crypto.com to halt sports betting contracts and issue refunds by January 31, 2026
• Iran's Revolutionary Guard allegedly moved $1 billion through UK-registered crypto exchanges using USDT on Tron, according to TRM Labs analysis

Technology

Ethereum's Zero-Knowledge Future

• CoinDesk reports Ethereum Foundation co-executive director Hsiao-Wei Wang described zero-knowledge proofs as part of Ethereum's midterm roadmap
• Ethereum co-founder Vitalik Buterin declared the blockchain trilemma solved following the December 2025 Fusaka upgrade
• The protocol is shifting toward distributed block building to enhance censorship resistance

Markets

Bitcoin Consolidates Below $94K

• Bitcoin continues trading in the $90,000 range with no significant movement in the past 24 hours
• Whale activity shows big holders on Bitfinex trimming long positions after a late-December peak of 73,000 BTC
• Bitcoin's Short-Term Holder SOPR rises above 1, potentially signaling a trend reversal
• Power law analysis suggests Bitcoin may face a critical battle around $65,000 if 2026 becomes a consolidation year

Altcoin Movements

• Monero's XMR hit $500 for the first time since 2021, while rival Zcash struggles
• XRP holds above $2.10 following UK FCA approval, with analysts eyeing a potential breakout toward $2.40
• Ethereum sentiment matches pre-rally conditions from previous cycles, according to social metrics

DeFi & Staking

Major Staking Milestones

• BitMine Immersion Technologies crossed 1 million staked ETH, becoming the largest Ethereum treasury company with over 4 million ETH in holdings
• Ethereum staking queues build to $5.5 billion, signaling strong institutional interest
• A Truebit hacker laundered $26 million in ETH through Tornado Cash, highlighting ongoing DeFi security concerns

Quick Hits

• Russians are asking government hotlines whether pensions can be paid in crypto, suggesting mainstream adoption
• CryptoQuant founder criticized X for penalizing crypto content instead of addressing bot spam
• Walmart and Google announced AI agent integration for online shopping experiences
• Brazil's B3 stock exchange will expand trading hours for crypto and gold futures starting in April
• Nasdaq and CME Group relaunched their crypto index as the Nasdaq CME Crypto Index
• UBS predicts silver might reach triple digits in 2026 despite significant 2025 gains
• WazirX launched recovery tokens as part of its post-hack comeback strategy

What to Watch

• Senate Banking Committee markup on crypto market structure legislation
• Bitcoin's ability to break above $94K resistance or potential retest of $65K support
• Ethereum ETF yield competition as more issuers potentially follow Grayscale's distribution model
• X's Smart Cashtags rollout and crypto community reception
• Regulatory response to Iran sanctions evasion allegations involving UK crypto exchanges