The latest WuBlockchain Weekly recap frames a week where bitcoin’s sharp move higher ran alongside a fast-moving regulatory and custody agenda. Bitcoin and ether jumped, total liquidations reached $2.98 billion, and institutional developments such as Citi’s planned Bitcoin custody service and new SEC and CFTC policy pushes drew attention across the crypto market.
Custody and Compliance: Citi’s Entry, SEC Rules and CFTC Push
Citi is preparing to launch a Bitcoin custody service, adding another large financial institution to the digital asset custody landscape. The move lands as Bitcoin volatility hits 2026 lows and fear fades across crypto and TradFi, a backdrop that may make institutional entry more palatable. Meanwhile, the SEC proposed its Regulation Crypto Assets framework and the CFTC signaled it would push forward with new rules, extending the compliance perimeter around trading and custody.
The regulatory focus is not confined to the United States. Russia is moving to restrict retail crypto trading to Bitcoin, Ether and USDT, highlighting how different jurisdictions are narrowing retail access while institutional infrastructure expands. In the US, Citi’s custody plans and the SEC’s proposed crypto asset rules suggest a more structured path for established financial firms.
Market Impact: Liquidation Pressure and the US Trading Race
The market backdrop behind these policy moves was forceful: bitcoin and ether rallied sharply and overall liquidations climbed to $2.98 billion. The size of the move echoes earlier stress events, including when Bitcoin rose above $68,000 as crypto liquidations reached $1.31 billion in one hour. Kraken also opened US stocks trading, while Metaplanet moved to inject 2,100 BTC, adding to the institutional bid.
At the same time, President Trump said Hyperliquid is moving toward compliant entry into the US market, a notable signal for offshore platforms seeking regulated access. The combination of custody expansion, new SEC and CFTC frameworks, and compliant trading pushes means the next phase of the market may be defined as much by regulatory execution as by price action.
