Happy Friday! Crypto's next phase may be defined less by hype and more by plumbing, with macro forces and institutional flows reshaping how bitcoin trades in 2026, according to Kraken Global Economist Thomas Perfumo.

In today's newsletter, Jefferies strategist Christopher Wood removes a 10% bitcoin allocation from his model portfolio over quantum risks, Google Play is set to ban overseas crypto exchanges from its South Korea store, Goldman Sachs CEO David Solomon says the firm is actively exploring tokenization and prediction markets, and more.

Meanwhile, X users celebrate a crackdown on the "plague" of AI-led reply spam as InfoFi platforms seek alternatives.

P.S. Don't forget to check out The Funding, a biweekly rundown of crypto VC trends. It's a great read — and just like The Daily, it's free to subscribe!

Jefferies strategist drops 10% bitcoin allocation over quantum computing fears

Christopher Wood, global head of equity strategy at investment bank Jefferies, removed bitcoin entirely from his "GREED & fear" model portfolio, reallocating the full 10% position into physical gold and gold-mining equities.

Wood said rising concerns around quantum computing pose an existential risk to bitcoin's long-term store-of-value thesis, even if near-term price impact appears limited.
He cited a 2025 Chaincode Labs study estimating that 20% to 50% of circulating bitcoin could be vulnerable to quantum-enabled key extraction.
The shift marks a reversal for one of bitcoin's earlier institutional advocates, who originally added the asset as a digital alternative to gold during the pandemic-era stimulus cycle once mature custody infrastructure was in place.
Industry attention to quantum risk has intensified following recent advances in quantum computing, alongside warnings from experts about potential exposure tied to reused addresses.
Governments and crypto projects are already adjusting, with El Salvador restructuring its bitcoin holdings and new startups raising capital aiming to harden networks against future quantum threats.
Google Play to ban overseas crypto exchanges from South Korea store

Google Play Store is set to block unregistered overseas crypto exchanges and wallets in South Korea starting Jan. 28, requiring all platforms to register as VASPs with the Korea Financial Intelligence Unit.

The move effectively removes global exchanges like Binance, Bybit, and OKX from Android app downloads and updates, while favoring 27 locally registered platforms, including Upbit and Bithumb.
Overseas exchanges face steep barriers to compliance, as Korea's registration process requires local security and AML certifications that are widely viewed as impractical for foreign firms.
According to local media reports, while users can still access global exchanges via web browsers, regulators risk pushing retail traders toward VPNs and APK downloads, increasing security risks in one of the world's most active crypto markets.
Goldman Sachs CEO says firm is actively exploring tokenization and prediction markets

Goldman Sachs is actively evaluating where tokenization, stablecoins, and prediction markets could enhance its existing businesses, according to CEO David Solomon.

During Thursday's earnings call, Solomon said regulatory clarity, particularly around U.S. market structure legislation, remains central to how the bank is approaching such innovations.
His comments come as Goldman and other major banks previously disclosed that they are jointly exploring a bank-backed digital money initiative tied to regulated stablecoin-like structures.
On prediction markets, Solomon said he recently met with two large platforms and spent several hours learning about their operations.
He added that Goldman has specific teams studying the sector, particularly products regulated by the CFTC, which he said resemble derivatives-style contract activity.
Iran's crypto ecosystem nears $8B as bitcoin withdrawals surge during protests: Chainalysis

Iran's crypto ecosystem grew to $7.8 billion in 2025, with onchain activity closely tracking domestic unrest and geopolitical flashpoints, according to Chainalysis.

Wallets linked to the Islamic Revolutionary Guard Corps accounted for roughly half of all value received by Iranian crypto addresses in the fourth quarter, underscoring the group's expanding financial footprint, the blockchain forensics firm said.
Chainalysis observed sharp spikes in activity around conflict and cyber incidents, highlighting crypto's dual use as both a civilian financial lifeline and a funding rail for sanctioned actors.
During recent mass protests, bitcoin withdrawals from Iranian exchanges to personal wallets surged, behavior the firm said may reflect a flight to safety amid political and economic instability.
House Democrats press SEC over pausing Justin Sun case, citing 'pay-to-play' concerns

Three House Democrats accused the SEC of retreating from crypto enforcement, asking Chair Paul Atkins to explain why high-profile cases, including one involving Tron founder Justin Sun, have been paused or dismissed.

In a letter to Atkins, lawmakers said the pullback has coincided with a surge in crypto political spending, arguing the timing creates the appearance of a "pay-to-play" dynamic that undermines investor protection.
The letter zeroed in on the prolonged pause of the Sun case, citing his large investments in Trump-linked crypto ventures and raising concerns about preferential treatment and national security risks.
A spokesperson for Sun rejected the allegations as factually incorrect and politically motivated, said the SEC matter remains pending, and emphasized Sun's cooperation with regulators and his role in initiatives like the T3 Financial Crime Unit to combat blockchain abuse.
Looking ahead to next week

UK CPI inflation and U.S. mortgage data are out on Wednesday. U.S. jobless claims, PCE, and GDP figures are scheduled for Thursday.
World Economic Forum annual meetings begin on Monday.
ZKsync, deBridge, ApeCoin, Melania Meme, Official Trump, LayerZero, Kaito, and Wormhole are among the crypto projects set for token unlocks.
Web3 Hub Davos 2026 kicks off in Switzerland. The Nashville Energy & Mining Summit 2026 also gets underway.