Crypto News Round-Up — February 2026

Recent headlines in the cryptocurrency world reflect a mix of regulatory tussles, exchange turmoil, and institutional interest. Major U.S. and Asian developments have put pressure on the market, while hacks and technical glitches have prompted questions about security. Here’s a concise update on the most important crypto stories from the last day.

• U.S. Banks vs. Crypto Firms Over Regulation
• Step Finance Breach Leads to $40M Crypto Heist
• Coinbase Confirms Insider Data Breach
• Bithumb Glitch Sends $44B in Bitcoin to Users
• New Crypto ETF Filing Surfaces
• South Korea Tightens Crypto Exchange Rules

U.S. Banks vs. Crypto Firms in Regulatory Battle

Outlets report that traditional banks are clashing with cryptocurrency companies over who will set the rules for digital finance. Banks have lobbied for stricter oversight of stablecoins and lending, arguing that crypto firms need more oversight. Meanwhile, industry firms counter that innovation could be stifled by overly rigid regulations. An (Axios) analysis notes that both sides are ramping up influence efforts in Washington, with the outcome likely to shape future payment systems.

This debate is partly fueled by upcoming legislation and hearings. Lawmakers are considering new rules on stablecoins and crypto lending, and each sector wants to sway the outcome. Policymakers face pressure to balance innovation with consumer and financial stability concerns.

Why it matters:

• Determines how stablecoins, crypto banking, and DeFi activities will be regulated
• Could affect which companies dominate payment services and digital money
• Signals how friendly U.S. policy will be toward crypto innovation

Step Finance Suffers $40M Security Breach

Step Finance, a decentralized finance (DeFi) analytics platform, confirmed that its executives’ devices were compromised in a hack on January 31. According to reports, hackers gained unauthorized access and stole roughly $40 million in cryptocurrency assets. The incident, covered by (Tom’s Hardware), is one of the largest DeFi exploits of the year so far.

Step Finance has since suspended operations and is working with security firms to investigate the breach. The platform is urging users to check wallets and revoke any suspicious approvals, and it plans to deploy additional security measures once systems are restored.

Why it matters:

• Highlights significant security risks for DeFi platforms and their customers
• Shows that attackers target executives and internal systems, not just smart contracts
• May prompt tighter operational security and insurance in the DeFi industry

Coinbase Confirms Insider Breach of Customer Data

Crypto exchange Coinbase admitted that a contractor improperly accessed customer information. The company disclosed that around 30 users had email and KYC (know-your-customer) data exposed, after a former contractor shared it via messaging apps. Tech press outlets like (TechRadar) report that Coinbase fired the contractor once the breach was discovered and offered affected customers identity protection.

Coinbase emphasized that no funds were taken and that the data was only a small subset of their user base. Nonetheless, this incident raises concerns about the security of personal data on major exchanges. Coinbase is working with regulators and has tightened contractor access in response.

Why it matters:

• Underscores that even top exchanges face insider threats to user privacy
• Could lead regulators to push for stricter data controls on crypto platforms
• Highlights the importance for users to secure their accounts and personal info

Bithumb Accounting Error Sends $44 Billion in Bitcoin to Users

South Korea’s largest cryptocurrency exchange, Bithumb, experienced a massive accounting error due to a misplaced decimal point. The error caused the exchange to deduct a far larger amount of Bitcoin from some trades, effectively crediting about 620,000 BTC to random users. In dollar terms, this accidentally distributed Bitcoin was worth roughly $44 billion at the time. Tech outlets report that Bithumb has frozen withdrawals while it works to reverse the faulty transactions.

The glitch was caused by confusion between a comma and a decimal in the trading database. Bithumb has publicly addressed the issue and is consulting both internal teams and outside experts to correct the balances. Authorities in South Korea may investigate how the error occurred and what controls failed.

Why it matters:

• Shows how human or software errors at large exchanges can have enormous market impact
• Raises questions about internal controls and audit procedures at cryptocurrency companies
• May erode user confidence in exchange infrastructure when mistakes of this scale occur

New Crypto ETF Filing Surfaces (Bloomberg)

Financial media reports that an asset management firm has filed with regulators to launch a new cryptocurrency exchange-traded fund (ETF). According to (Bloomberg), the proposed ETF would allow institutional and retail investors to gain exposure to Bitcoin and Ethereum through a traditional stock market product. The filing includes details like management fees and custodial arrangements. Regulators are now reviewing the proposal and will decide whether to approve the fund.

The ETF market has seen a wave of interest as major financial institutions seek regulated crypto investment vehicles. If approved, this fund could open the door for billions of dollars in new inflows. Issuance is scheduled for later this year, pending regulatory green lights and market conditions.

Why it matters:

• Reflects growing mainstream demand for crypto exposure through regulated channels
• Approval would signal regulator comfort and bring more institutional capital into crypto
• May increase market stability by providing an on-ramp for traditional investors

South Korea Cracks Down on Crypto Exchange Rules

A Bloomberg report indicates that South Korean financial regulators are moving to tighten rules for cryptocurrency exchanges. Under the planned changes, exchanges will face stricter requirements for customer identification (KYC), anti-money laundering checks, and asset custody. They may also blacklist anonymous stablecoins and impose higher capital requirements. The goal is to shrink the shadow market and protect investors.

South Korea is one of the largest crypto markets, so these measures could ripple through global markets. Exchanges operating in the country will likely need to update their systems and reporting. Observers note that this trend aligns with a broader international push for tighter oversight of digital assets.

Why it matters:

• Stricter rules in a major market increase pressure on global crypto platforms to comply
• Could reduce the number of unregulated trading venues and increase transparency
• Follows a global trend of regulators seeking more control over the crypto industry

Reminder: Cryptocurrency markets are highly volatile and can change rapidly. This round-up is for informational purposes only and is not financial advice. Always do your own research (DYOR) and consider the risks before making investment decisions.

Bottom Line

This collection of stories highlights the dual nature of the crypto industry’s current phase. On one hand, regulators and institutions are increasingly involved (from U.S. banks pushing for rules to South Korea updating laws and asset managers seeking ETF approval). On the other hand, technological glitches and security breaches underscore the sector’s vulnerabilities. Companies and users should stay vigilant. As always in crypto, stay informed and be prepared for rapid changes.