PA Daily News | Coinbase reports a net loss of $667 million in Q4; the US CFTC establishes an Innovation Advisory Committee.

Today's top news highlights:

The US CFTC has established an Innovation Advisory Committee, and several cryptocurrency industry executives have been appointed.

South Korean Finance Minister: Will Strengthen Regulation of Cryptocurrency Market

The London Stock Exchange Group plans to provide on-chain settlement services for institutional investors.

Mirae Asset Management plans to acquire a 92% stake in Korbit for 133.5 billion won.

Aave Labs has proposed transferring 100% of its protocol revenue to the DAO in exchange for operating funds.

Coinbase announced that it increased its Bitcoin holdings by $39 million in Q4.

Anthropic raises $30 billion in funding at a valuation of $380 billion; Musk accuses its AI of discrimination.

Coinbase released its Q4 financial report: a net loss of $667 million and a 20% drop in revenue.

Regulatory news

The US CFTC has established an Innovation Advisory Committee, and several cryptocurrency industry executives have been appointed.

U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig announced the formation of a 35-member Innovation Advisory Committee, with several cryptocurrency industry executives appointed. Selig stated that the committee will assist the CFTC in developing a regulatory framework for the role of "breakthrough technologies" such as artificial intelligence and blockchain in financial markets, ensuring its decisions reflect market realities and establishing clear rules for a "golden age of U.S. financial markets."

The committee comprises representatives from blockchain projects, including Vivek Raman of Etherealize, Anatoly Yakovenko of Solana Labs, Brad Garlinghouse of Ripple, Sergey Nazarov, CEO of Chainlink Labs, and Hayden Adams, CEO of Uniswap Labs. Executives from centralized exchanges such as Bullish, Coinbase, Crypto.com, Gemini, Kraken, Bitnomial, and Robinhood are also on the list. Shayne Coplan, founder of prediction market platform Polymarket, and Tarek Mansour, founder of Kalshi, have also been appointed. Chris Dixon of crypto venture capital firm a16z crypto, Vance Spencer of Framework Ventures, and Alana Palmedo of Paradigm were also selected. The committee also includes representatives from traditional financial institutions such as Cboe, CME, DTCC, Nasdaq, and options clearing companies.

US SEC Chairman: Prediction markets are a "huge problem," and legal attention is steadily increasing.

U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins stated at a Senate Banking Committee hearing that prediction markets are a "huge problem" and a shared regulatory focus with Commodity Futures Trading Commission Chairman Michael Selig. Atkins noted "potential jurisdictional overlap" in prediction markets, currently primarily under the jurisdiction of the CFTC, but the two agencies will work collaboratively. When asked about the development of clear rules, he said "we'll have to wait and see," adding that "securities are securities, and the definition of prediction markets and their products depends on the specific wording." CFTC Chairman Selig stated that he will ensure "reasonable rules and safeguards" are in place for prediction markets to prevent them from being pushed overseas.

The question of who has the right to regulate prediction markets has become a focal point of contention between federal and state governments. Operators argue that, under the Commodity Exchange Act, all event contracts should fall under the jurisdiction of the CFTC; while some states argue that these platforms involve activities such as sports betting, violating local gambling laws. Prediction markets have also recently received additional attention due to insider trading allegations and restrictive legislation targeting political betting.

South Korean Finance Minister: Will Strengthen Regulation of Cryptocurrency Market

A Federal Reserve document proposes setting initial margin weights for cryptocurrency derivatives.

According to Cointelegraph, a new analysis released by the Federal Reserve on Wednesday proposes that cryptocurrencies should be classified as a separate asset class for initial margin requirements in "unsettled" derivatives markets (including over-the-counter transactions and other transactions not conducted through centralized clearinghouses). The report points out that floating crypto assets such as Bitcoin and Ethereum, as well as pegged crypto assets such as stablecoins, exhibit significantly different volatility compared to traditional asset classes, making them unsuitable for the existing risk classifications used in standardized initial margin models for interest rates, stocks, foreign exchange, and commodities.

The authors suggest assigning differentiated risk weights to these two types of crypto assets and calibrating more accurate risk weights by constructing a benchmark index with equal weighting for floating digital assets and pegged stablecoins, serving as a proxy variable to simulate crypto market volatility and behavior. Initial margin is a core risk control mechanism in derivatives markets, requiring traders to pledge collateral to mitigate counterparty default risk. The high volatility of crypto assets means traders need to provide a higher proportion of collateral buffers. This report reflects the technical preparations being made at the US federal level for integrating crypto assets into the existing regulatory framework.

Project Updates

Mirae Asset Management plans to acquire a 92% stake in Korbit for 133.5 billion won.

Mirae Asset Consulting, a subsidiary of Mirae Asset Group of South Korea, has decided to acquire approximately 26.91 million shares of Korbit for 133.5 billion won (approximately US$93.82 million), giving it a 92.06% stake after the transaction. Mirae Asset Consulting stated that it will use digital assets to create future growth momentum and expects to purchase all related shares from shareholders such as NXC and SK Group.

The London Stock Exchange Group plans to provide on-chain settlement services for institutional investors.

According to Cryptopolitan, the London Stock Exchange Group announced on Thursday its plans to launch an on-chain settlement service for institutional investors, named LSEG Digital Securities Depository. The platform will connect traditional securities markets with blockchain networks, supporting the trading and settlement of tokenized bonds, stocks, and private market assets, while maintaining compatibility with existing infrastructure. The system will be compatible with multiple blockchain networks, with initial delivery targeted for 2026, subject to regulatory approval.

LSEG already operates a blockchain platform for private equity funds on Microsoft Azure, and this new system is a further expansion of its digital asset strategy. The company stated it will form a strategic partner group to gather market feedback during development and build an ecosystem that connects digital and traditional markets across time zones and supports multiple payment methods. Major UK financial institutions such as Barclays, Lloyds, National Westminster Markets, Standard Chartered, and Brookfield have expressed their support for the project.

Binance will support the exchange and renaming of MANTRA (OM) tokens to MANTRA.

Binance announced that it will support the exchange, split pricing, and rename MANTRA (OM) token to MANTRA (MANTRA). OM will be converted at a ratio of 1 OM = 4 MANTRA and will use the new MANTRA ticker. Starting February 23, OM-related contracts will stop opening new positions and will automatically settle; from February 14 to 23, OM will be delisted from Cross/Isolated Margin and will trigger automatic repayment and asset conversion; starting February 20, Buy & Sell Crypto will remove OM; on February 23, Binance Loans will close OM lending; starting February 27, Simple Earn will redeem OM products and repurchase them in MANTRA after March 4; on March 2, OM will be completely delisted in spot, Convert, Gift Card, and other scenarios; on March 4, a new MANTRA spot trading pair will be opened and OM withdrawals will be stopped.

Aave Labs has proposed transferring 100% of its protocol revenue to the DAO in exchange for operating funds.

According to The Block, Aave Labs has proposed a framework to transfer 100% of the revenue from all its Aave-branded products to the Aave DAO treasury, and to transfer related trademarks and intellectual property to the newly established Aave Foundation. The proposal also requests financial support from the DAO for its operations. Under the proposal, Aave Labs will relinquish all revenue from future business lines including Aave v3, v4 protocols, aave.com front-end revenue, Aave Card, and AAVE ETF. In exchange, it requests the DAO to commit $25 million in stablecoins and 75,000 AAVE to cover operating expenses, and to apply for five grants of $3 million each for the development and marketing of the Aave App, Aave Pro, and Aave Card, as well as $2.5 million for the Aave Kit. Aave Labs stated that the v4 architecture will enable revenue models that were difficult to achieve in previous versions, and plans to gradually adjust v3 parameters to guide migration 8-12 months after the v4 launch. The proposal also requests the DAO to coordinate v4 development with Labs and to temporarily suspend the development of new v3 features.

Marc Zeller, founder of the Aave Chan Initiative, objected. Zeller called it a "cashing out attempt disguised as goodwill," saying Labs was trying to use radical proposals as bargaining chips and "attempt to impose an outcome regardless of the governance process." He estimated Labs' actual funding needs at around $50 million and questioned the legitimacy of its governance.

Anthropic raises $30 billion in funding at a valuation of $380 billion; Musk accuses its AI of discrimination.

Anthropic announced that it has completed a $30 billion funding round, bringing the company's post-money valuation to $380 billion. The funds will be primarily used to deepen AI research, product development, and infrastructure expansion, enabling its large-scale model Claude to be deployed in more scenarios.

Subsequently, in response to Anthropic's post, Musk accused his AI of "hating white and Asian people, especially Chinese, heterosexuals and men," calling such bias "evil and should be fixed," and replied to a user in the comments section that his AI product Grok 4.2 is "much better" at this issue.

Yzi Labs investment partner accuses CEA Industries of maliciously delaying shareholder meeting

Alex Odagiu, an investment partner at Yzi Labs, recently wrote to the board of directors of CEA Industries, accusing them of reckless behavior in postponing their annual general meeting (AGM), which could lead to the company facing delisting from Nasdaq. The letter points out that more than 400 days have passed since the last AGM (December 17, 2024). The board is attempting to exploit a loophole in the rules by changing the fiscal year-end date to April 30th, a move seen as an "accounting maneuver," to extend the meeting interval to 16 months.

Odagiu stated that the board's actions were an attempt to evade voting and that in December of last year, it used a "ski vacation" excuse to cover up its actions of obstructing shareholder democracy through a "poison pill" plan and amendments to the bylaws. The letter emphasized that while the board attempted to comply technically, its malicious manipulation could trigger Nasdaq's delisting discretion. Yzi Labs demanded that the board immediately announce the date of the 2025 Annual General Meeting and cease its actions that jeopardize the company's listing status in order to retain its position.

The Stuttgart Stock Exchange plans to merge its crypto division with trading firm Tradeas.

According to Bloomberg, the Stuttgart Stock Exchange Group, the German stock exchange operator, will merge its crypto business with Frankfurt-based digital asset trader Tradeas. The new division will house approximately 300 employees and will be jointly managed by the two companies' management teams.

Sources familiar with the matter said the deal values ​​Tradeas at approximately €200 million ($238 million), and the combined entity at over €500 million. Stuttgart Exchange CEO Matthias Voelkel stated that the crypto market is highly dynamic, and this move aims to create optimal conditions for growth in this market.

Coinbase has revealed its three priorities for this year: developing a full-fledged trading platform, expanding stablecoin payments, and bringing the world's largest blockchain to life.

In its letter to shareholders, Coinbase stated that it will focus its investments on three key priorities in 2026:

• Develop a comprehensive trading platform: Expand Coinbase into the only trusted platform for customers to trade all types of assets (cryptocurrencies, derivatives, stocks, and prediction markets), helping customers manage more portfolios and increase engagement.

• Expanding Stablecoins and Payments: Accelerating the usability of USDC and the payment technology stack (APIs, wallets, and merchant channels) to make value transfer faster, cheaper, and easier, and seizing the next wave of opportunities. A wave of real-world applications beyond trading.

• Bringing the world on-chain: By expanding DeFi integration within the Coinbase app and focusing more on transactions, the Base app is being extended to make the on-chain experience simpler and more accessible. Coinbase's infrastructure continues to drive activity on the Base platform, so increased usage also depends on Coinbase's infrastructure.

Analysis: The crypto market currently lacks new capital inflows, so it's too early to talk about a bull market or a major rebound.

According to Greeks.live analysis, a total of 38,000 BTC options and 215,000 ETH options expired on February 13. The BTC options put-call ratio was 0.71, with a maximum price threshold of $74,000 and a notional value of $2.5 billion; the ETH options put-call ratio was 0.82, with a maximum price threshold of $2,100 and a notional value of $410 million.

The crypto market continues its bleeding decline, with the biggest pain points falling rapidly. Today, options representing 9% of total open interest, totaling nearly $2.9 billion, expire. This week, implied volatility for Bitcoin and Ethereum has decreased, with BTC's main term IV at 50% and ETH's at 70%, indicating some easing of the price downtrend, but market confidence remains weak. In terms of trading volume, put options dominate, and after yesterday's further decline, some bargain hunting has begun. Looking at major options data, Skew has also rebounded, and commodities are seeing a significant increase in call options. The market remains in a bear market, but this most severe decline has likely ended. Currently, the crypto market lacks new capital inflows, and it's premature to discuss a bull market or a major rebound.

Important data

Coinbase released its Q4 financial report: a net loss of $667 million and a 20% drop in revenue.

Coinbase's fourth-quarter earnings report showed that revenue fell 20% year-over-year to $1.8 billion, exceeding market expectations, due to declining cryptocurrency prices leading to a contraction in trading activity. After accounting for unrealized losses to reduce its cryptocurrency holdings and investment value, the company recorded a net loss of $667 million, compared to a profit of $1.3 billion in the same period last year.

Coinbase stated that despite a weakening market environment, its total trading volume outperformed the overall market, supported by its derivatives business. In recent years, the company has continuously reduced its reliance on spot trading through acquisitions such as Deribit and the launch of stock trading and prediction markets. Analysts believe that the key focus for the market will be whether Coinbase can diversify its business to create a stable revenue stream that can weather economic cycles.

Coinbase announced that it increased its Bitcoin holdings by $39 million in Q4.

According to Coinbase's 8-K report filed with the U.S. Securities and Exchange Commission (SEC), Coinbase disclosed that it increased its Bitcoin holdings by $39 million in the fourth quarter of last year through regular weekly purchases. As of December 31, 2025, the fair market value of Coinbase's crypto assets used for its own investments and crypto assets used as collateral was $2 billion and $823 million, respectively.

Bitcoin spot ETFs saw a total net outflow of $410 million yesterday, with none of the twelve ETFs experiencing net inflows.

Ethereum spot ETFs saw a total net outflow of $113 million yesterday, with none of the nine ETFs experiencing net inflows.

South Korean police lost Bitcoin that had been seized and stored in a cold wallet since 2021.

According to The Block, the Gangnam Police Agency in Seoul, South Korea, recently discovered during an internal investigation that 22 bitcoins (worth approximately $1.5 million) seized since November 2021 had been transferred from a USB cold wallet. Because the investigation was suspended, the loss of these assets went unnoticed for a long time. The USB device itself was not stolen. The Gyeonggi Northern Provincial Police Agency has launched an internal investigation to determine the specific circumstances of the loss and whether any internal personnel were involved. Police declined to provide further details regarding the ongoing investigation.

This discovery stems from a nationwide special inspection of seized assets launched following the recent theft of 320 seized Bitcoins by the Gwangju District Prosecutors' Office . Local media reported that evidence management personnel at the Gwangju Prosecutors' Office had their seized Bitcoins stolen after mistakenly logging into a phishing website.

JPMorgan Chase: Bitcoin production costs have fallen from $90,000 at the beginning of the year to $77,000.

According to The Block, JPMorgan analysts stated that their estimated Bitcoin production cost—historically considered a "soft price support"—has fallen from $90,000 at the beginning of the year to $77,000, primarily due to recent declines in network hashrate and mining difficulty. Analysts pointed out that the recent drop in Bitcoin network hashrate triggered the largest reduction in mining difficulty since China's mining ban in 2021, with a cumulative decrease of approximately 15% year-to-date. The difficulty reduction provides breathing room for miners still operating, and efficient miners are seizing market share lost by high-cost miners forced to shut down. Analysts stated that a hashrate rebound has been observed, and production costs are expected to rebound at the next difficulty adjustment.

The report attributes the decrease in mining difficulty to two factors: first, the drop in Bitcoin prices made it unprofitable for high-cost miners; and second, winter blizzards in the United States caused large mining farms in Texas and other areas to temporarily shut down. Some high-cost miners have maintained operations by selling Bitcoin or transitioning to AI, exacerbating the price pressure since the beginning of the year. Analysts believe that the exit of high-cost miners has stabilized and remain "positive" about the overall cryptocurrency market in 2026.

The whale 3NVeX has deposited a total of 10,735 BTC, equivalent to approximately $727 million, into Binance in the past three days.

According to Onchain Lens monitoring, two hours ago, whale 3NVeX deposited another 2,535 BTC into Binance (including the previously monitored 2,035 BTC), equivalent to approximately $168.42 million. Over the past three days, he has deposited a total of 10,735 BTC (approximately $727.37 million) into Binance.