Today in crypto: The United Kingdom’s financial services watchdog, the Financial Conduct Authority (FCA), launched three consultations on new crypto market rules covering exchanges, staking, lending and DeFi, with feedback due Feb. 12, 2026. Crypto executives urged the US Securities and Exchange Commission (SEC) to shift its thinking on privacy tools, and crypto exchange-traded funds (ETFs) set three straight weeks of inflows.
UK regulator consults on crypto rules for exchanges, lending and DeFi
The United Kingdom’s Financial Conduct Authority (FCA) launched a series of consultations on proposed rules for digital asset markets, marking the next phase in the government’s effort to establish a comprehensive regulatory framework for crypto assets.
The proposals, published across three consultation papers, cover crypto trading platforms, intermediaries, staking, lending and borrowing, market abuse, disclosures and decentralized finance (DeFi). The FCA said consultation responses will be open until Feb. 12, 2026.
The regulator said the proposals aim to support innovation while ensuring that consumers understand the risks associated with crypto investment. It added that regulations should not eliminate risks entirely, but should ensure that participants operate responsibly and transparently.
“Our goal is to have a regime that protects consumers, supports innovation and promotes trust,” said David Geale, the FCA’s executive director for payments and digital finance, adding that industry feedback will help shape the final rules.
The consultations mark the next step in the UK’s push toward full “market structure” rules for crypto, moving beyond earlier requirements focused on financial promotions and Anti-Money Laundering compliance.
Crypto urges SEC to see good in privacy tools
Crypto industry executives urged the Securities and Exchange Commission to shift its thinking on blockchain privacy tools at its sixth crypto-focused roundtable on Monday, saying there are legitimate applications for them outside of criminal use.
StarkWare general counsel Katherine Kirkpatrick Bos participated in a panel discussion and told Cointelegraph that a major takeaway was that there shouldn’t be an assumption that those using and creating privacy tools are “overwhelmed by wrongdoers.”
“Why is the assumption that an individual needs to affirmatively prove that they are compliant or they’re using the tool for good, as opposed to it being the other way around?” she said.
In his opening remarks, SEC chair Paul Atkins said that if “pushed in the wrong direction, crypto could become the most powerful financial surveillance architecture ever invented,” with the government transforming it “into a financial panopticon.”
He added his agency must strike a balance and “make certain that Americans can use these [privacy] tools without immediately falling under suspicion.”
Digital asset ETPs post third straight week of net inflows, led by US demand
Crypto exchange-traded products (ETPs) recorded about $864 million in inflows last week, according to a report on Monday by European digital asset manager CoinShares.
The United States led regional inflows with about $796 million, followed by Germany with roughly $68.6 million and Canada with about $26.8 million. Together, the three countries account for approximately 98.6% of year-to-date (YTD) inflows into digital asset investment products.
Switzerland-listed crypto ETPs recorded about $41.4 million in weekly outflows, while YTD net flows were about $622.4 million, according to the data.
Bitcoin (BTC) investment products recorded about $522 million in weekly inflows, while short-Bitcoin products posted roughly $1.8 million in net outflows, “signalling a recovery in sentiment,” according to the report.
Ether (ETH) saw approximately $338 million in inflows during the week, lifting YTD to about $13.3 billion, up 148% from 2024.
Beyond Bitcoin and Ether, Solana (SOL) investment products recorded about $65 million in weekly inflows, bringing YTD inflows to roughly $3.46 billion, a tenfold increase from last year.
XRP (XRP) products also attracted fresh capital, with approximately $46.9 million added during the week and about $3.18 billion in inflows accumulated YTD, according to the data.
Smaller-cap products saw more mixed results, with Aave (AAVE)-linked products recording about $5.9 million in weekly inflows and Chainlink (LINK) adding roughly $4.1 million. Hyperliquid (HYPE) products posted net outflows of around $14.1 million during the period.
This is the third consecutive week of inflows for crypto ETPs, following about $716 million in inflows last week and roughly $1 billion the week before.
Bitcoin has attracted around $27.7 billion YTD, still below the $41 billion it recorded in 2024.
cointelegraph.com