Crypto News Round-Up — February 2026

February 2026 has seen a flurry of major developments in the crypto sector, from regulatory battles to soaring institutional involvement and even security breaches. In this roundup, we cover the top stories shaping the market: new regulations and legislative fights, big moves by financial giants into crypto, and significant hack events. Read on for a concise summary of each key news item.

• Step Finance DeFi platform hack
• Regulatory clash: Banks vs crypto
• Coinbase USDC yield program
• BlackRock Bitcoin ETF filing
• Goldman Sachs enters crypto
• Treasury warns on stablecoins

Step Finance suffers $40M hack via compromised executive devices

Decentralized finance (DeFi) analytics firm Step Finance disclosed that attackers had commandeered devices belonging to the company’s executive team, using them to drain the platform’s treasury. Over the weekend of Jan. 31, roughly 261,854 SOL (about $28.9 million) was illicitly withdrawn, and Step Finance later confirmed the total loss was near $40 million (Tom’s Hardware). The company said it is working with law enforcement and security experts to mitigate damage and investigate the breach.

• The incident highlights how the compromise of key personnel devices can lead to catastrophic losses in DeFi projects.
• A $40 million theft shakes investor confidence and underscores the need for stronger security practices in crypto firms.
• The hack will likely draw regulatory attention to DeFi project controls and custodial safeguards.

Banks vs. crypto: regulatory battle over stablecoin rewards

An Axios report revealed a mounting battle between Wall Street banks and crypto companies in the U.S. Congress. The dispute centers on proposed legislation that would allow crypto platforms to pay customers rewards for holding stablecoin deposits. Banking lobbyists argue that if crypto firms offer such bank-like product yields, they should face the same capital and consumer protections as traditional banks. The clash intensified recently when Coinbase withdrew its support for the bill with a single tweet, postponing a key Senate committee vote (Axios).

• The outcome will shape whether crypto firms can provide bank-style earning products, influencing stablecoin regulation.
• Banks see this as a threat to their deposit franchise; crypto firms view it as financial innovation needing lighter rules.
• Political stakes are high, as public figures (including one who calls himself a “crypto president”) signal crypto’s importance in upcoming elections.

Coinbase rolls out high-yield USDC program, boosting user deposits

Coinbase, the Nasdaq-listed crypto exchange, announced a new program allowing U.S. customers to earn interest on USD Coin (USDC) holdings (Reuters). Users can deposit USDC into a dedicated account to receive a competitive annual yield, aiming to mimic a traditional savings product. The feature drew significant attention, driving a surge in new sign-ups as traders moved funds to benefit from the yield opportunity.

• The program bridges centralized exchanges with DeFi-style earning, potentially pulling steady liquidity into Coinbase’s platform.
• By offering bank-like returns on stablecoins, Coinbase directly competes with decentralized yield platforms, possibly consolidating user deposits in one place.
• Offering interest products may invite regulatory scrutiny if classified under banking or securities laws.

BlackRock files for first U.S. spot Bitcoin ETF

Bloomberg reported that BlackRock, the world’s largest asset manager, submitted an application to the U.S. Securities and Exchange Commission for a spot Bitcoin exchange-traded fund (ETF). If approved, the ETF would allow investors to gain Bitcoin exposure through a familiar stock-market vehicle, without buying the cryptocurrency directly. This filing follows other recent ETF bids and reflects growing optimism that regulators may finally permit a U.S. Bitcoin ETF.

• An approved Bitcoin ETF would open crypto investing to a wider pool of institutional and retail investors in mainstream markets.
• Such an ETF could channel substantial new capital into Bitcoin, likely affecting its price and volatility.
• The move signals increasing institutional confidence in cryptocurrency, which could spur similar filings by other major asset managers.

Goldman Sachs to offer crypto funds to wealth clients

According to Reuters, Goldman Sachs announced plans to offer cryptocurrency funds to its private wealth and institutional clients. The bank will utilize its existing custody and trading infrastructure to facilitate access to Bitcoin and other crypto assets. Growing demand from clients prompted Goldman to expand its digital asset services, reversing a previous cautious stance on cryptocurrencies.

• Goldman’s entry into crypto underscores that even traditional Wall Street institutions now view digital assets as a legitimate investment opportunity.
• Bringing large institutional capital and credibility into the market could improve liquidity and stability for cryptocurrencies.
• The move is likely to prompt competitors to accelerate their own crypto offerings, further integrating crypto into mainstream finance.

U.S. Treasury official warns of stablecoin risks, urges oversight

Bloomberg reported that a senior U.S. Treasury official gave a stark warning about the risks posed by large stablecoins if left unregulated. The official compared uncontrolled stablecoin issuance to unregulated shadow banking, arguing that clear guardrails are needed to protect the broader financial system. This statement, delivered amid ongoing legislative debates, signals that stricter stablecoin regulations may be on the horizon.

• The warning suggests Congress and regulators are likely to pursue new rules requiring stablecoin issuers to hold reserves and undergo oversight.
• Equating stablecoins with “shadow banking” highlights fears they could create systemic risks if widely adopted without safeguards.
• The official’s remarks increase pressure on crypto companies to comply with anticipated regulations, potentially shaping the future stablecoin landscape.

As always, cryptocurrency markets are highly volatile. This news summary is not investment advice; readers should do their own research (DYOR) before making any financial decisions.

Bottom Line

February’s crypto headlines reflect a market in transition. Legacy financial players and new firms are clashing over how crypto should be governed, even as major institutions move into digital assets. At the same time, security breaches and regulatory warnings remind us that risks remain high. Investors and observers alike should stay informed on legislative outcomes and market developments while proceeding with caution in this volatile space.