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- > The US Government May Be Headed for Another Shutdown
- > Hyperliquid activity reaches all-time high
- > Japanese financial markets consider greenlighting crypto ETFs
- > Stablecoin giant Tethered to the States following launch of US-regulated token USAT
The US Government May Be Headed for Another Shutdown
You’d be forgiven for waking up, checking the daily news and thinking you’re still in 2026.
It feels like only yesterday that the big ‘T’ word (tariffs) ruled the markets, causing uncertainty within the crypto sphere and broader economic ecosystem.
Well…that’s kind of because it was. After dominating headlines at the start of 2025, 2026’s scriptwriters regurgitated the same plot following Donald Trump’s tariff threats targeting Denmark, as geopolitical tensions rose again.
To make the similarities even more striking, the US Government may be headed toward yet another shutdown, following a near six-week cessation in October-November last year.
This time around, the US Government could grind to a halt over funding of the Department of Homeland Security, with Polymarket odds sitting at over 60% in favour of a shutdown by the end of this week.
While this particular closure would only impact certain pockets of the US public service (unlike last time which was a full shutdown), it may still have a ripple effect on the economy.
So far, the crypto market has traded mostly flat since the prospect of another closure reared its head last week. However, additional uncertainty stemming from another shutdown could murky the waters of what’s already been an opaque opening to 2026.
Hyperliquid activity reaches all-time high
Hyperliquid is eyeing a place in the top ten cryptocurrencies by market cap following a strong week marked by 50% gains and record highs in on-chain activity. While the broader market crab-walked sideways, Hyperliquid has been one of few projects to the buck the trend over the past seven days. Key to the current hype (sorry, we had to do it at least once) of the decentralised perps trading platform is an influx of users following the introduction of HIP-3 last October.
HIP-3 essentially handed the reigns to the user, allowing independent participants to create their own derivatives markets on Hyperliquid’s blockchain, staking HYPE to solidify their positions.
This, in theory, further decentralises the project’s on-chain DEXs by providing multiple markets and liquidity pools for tradeable assets.
Uptake in these markets has accelerated notably over the past month, with tokenised precious metals leading the way. As gold, and particularly silver, have seen strong price action in the past quarter, many crypto traders have turned to Hyperliquid’s markets for exposure.
According to the platform’s official X account, open positions on the HIP-3 protocol hit an all-time high of nearly $800 million USD – a 200% monthly increase.
While conviction in the socioeconomic environment remains tentative, Hyperliquid has demonstrated that, at least for now, it can remain resilient amid downward market pressure.
Japanese financial markets consider greenlighting crypto ETFs
Japan may be the next country in line to add spot crypto ETFs to its repertoire of stock offerings on major national exchanges.
Crypto ETFs have become cemented as core to the digital asset ecosystem since their introduction to the United States in 2024. In their first two years of trading, assets under management (AUM) across US BTC funds has exceeded $150 billion USD. This means that approximately 9% of Bitcoin’s market cap is held in these financial product – demonstrating solid demand for the ‘traditional’ investment crossover.
The United States is the biggest crypto market in the world (by volume), and therefore the nation’s actions have a notable global influence.
While the spot ETF trend has spread across Europe, Australia and parts of Asia, Japan had largely been waiting on the sidelines – until now.
According to the Nikkei, the tenth-best selling newspaper in the world, the local Financial Services Agency is considering legislation that would allow ETFs comprising digital assets. As the move would require regulatory overhaul – including a renewed emphasis on protecting investors – Nikkei suggested an earliest approval date of 2028.
However, the news is significant for several reasons. The regime has historically enacted tough crypto legislation with high capital gains taxes – something they’re looking to change moving into 2026. The introduction of ETFs in the country could reinforce the perception that Japan intends to become more crypto-friendly moving forward.
Japan boasts the world’s third-largest stock market (by capital), meaning progressive crypto policies could play a role in long-term digital asset adoption.
Stablecoin giant Tethered to the States following launch of US-regulated token USAT
Tether, the company behind the biggest USD-pegged stablecoin, has officially entered the US market with the launch of its latest asset, USAT.
While Tether’s flagship currency, USDT, is already the largest stablecoin in the world (and available for trade in decentralised markets), it isn’t regulated by local authorities, making its institutional use tricky. This was compounded by the introduction of the GENIUS Act in 2025, a formal guideline for the issuance and management of pegged cryptocurrencies.
USAT has been designed with this legislative framework in mind, leveraging Anchorage Digital Bank’s status as a ‘regulated stablecoin issuer’.
According to Tether’s media release, USAT is ‘purpose-built for the US market and its highly digital payment infrastructure, providing institutions with a digital dollar that is issued through a nationally chartered bank’.
The stablecoin will be fully backed by US dollar reserves and will be redeemable 1:1 for USD.
Tether is one of the largest blockchain corporations in the world, and will be hoping its new product can reclaim ground in the US market currently held by Circle’s USDC and Ripple’s RLUSD.
Ben Knight
