Americans have lost more than $333 million to scams conducted through crypto ATMs, with $240 million disappearing in the first half of 2025. In response, cities like Spokane and Stillwater have passed local bans, while several other states and municipalities are weighing restrictions or tighter oversight. Industry participants and legal experts argue the machines expose deeper gaps in banking access, even as authorities focus on their role in fast, irreversible fraud.

On January 9, the Tennessee Sports Wagering Council ordered Kalshi, Polymarket and Crypto.com to immediately stop offering sports-related contracts to state residents and refund all customer funds by Jan. 31, 2026. Regulators allege the CFTC-registered platforms are running unlicensed sports wagering in violation of the Tennessee Sports Gaming Act and warn that noncompliance could trigger civil penalties, criminal referrals and potential gambling-promotion charges.

Brazilian exchange Mercado Bitcoin has released a report projecting that Bitcoin’s market capitalization will more than double by the end of 2026 to reach 14% of gold’s market value. The exchange also expects stablecoin capitalization to climb to $500 billion and altcoin ETFs, led by XRP and Solana products, to see strong institutional inflows.

Nasdaq Inc. and CME Group Inc. plan to relaunch the Nasdaq CME Crypto Index (NCI™) on January 8, 2026, positioning it as a renewed benchmark for institutional participation in digital assets. The index, which includes major cryptocurrencies such as Bitcoin and Ethereum, is expected to support market transparency and infrastructure as Bitcoin trades above $90,000 with a market cap of $1.81 trillion. Analysts suggest the move could encourage new institutional-grade crypto products and reinforce the sector's overall maturity.

On Jan. 9, Tennessee’s Sports Wagering Council directed Polymarket, Kalshi, and Crypto.com’s Nadex to halt sports event contracts, void pending wagers, and refund deposits by Jan. 31, 2026. The letters warned that unlicensed betting could trigger criminal referrals and fines up to $25,000 under state law.

On-chain data indicates that more than $1.25 billion in USDT was withdrawn from Binance in a single session, while the exchange's stablecoin reserves fell by nearly $1.7 billion over two days. At the same time, very large wallets holding over $100 million in USDT reportedly added about $4.7 billion, suggesting capital is moving into off-exchange storage, softening short-term trading activity but not necessarily signaling market distress.

On 9 and 10 January 2026, police in Hilir Perak carried out three coordinated operations in Teluk Intan, seizing forty-one machines allegedly used for illegal crypto mining. Investigators believe the sites were stealing electricity from the national grid, and no suspects have been detained as authorities work to identify those responsible. Officials warn that such unlicensed setups can trigger fires, grid instability, and higher power costs for legitimate users.

The U.S. Senate Banking Committee is scheduled to hold a hearing on January 15 to examine the Digital Asset Market CLARITY Act and broader cryptocurrency market structure legislation. Lawmakers including Rep. French Hill, Sen. Tim Scott, and Sen. Cynthia Lummis aim to clarify SEC and CFTC jurisdictions over digital commodities and investment contracts, while analysts note Bitcoin’s recent volatility ahead of the session.