US policy shift fueled record $8.6bn in crypto deals – FT

US openness to digital assets helped push crypto mergers and acquisitions to a record $8.6 billion this year, and advisers expect the pace to extend into 2026 as new rules take effect and traditional finance steps in, Financial Times reports.

Across the sector, 267 transactions were recorded through December 23, an 18% increase from 2024, according to PitchBook. Lawyers and bankers attributed the influx of capital to policy signals from Washington, including moves to prioritize crypto, appoint supportive regulators, drop high-profile cases against digital asset firms and establish a national crypto reserve.

Charles Kerrigan, a partner at law firm CMS, called it the firm’s busiest year for crypto deals “by a mile.” He expects activity to continue next year as US regulations roll out, drawing in more banks and asset managers and allowing crypto companies to consolidate.

The pipeline held even as crypto asset prices softened late in the year. Eric Risley, founder of advisory firm Architect Partners, reported that ongoing talks remain on track: “We’re in the midst of lots of transactions and . . . the move from $120,000 to $90,000 has done nothing to derail those conversations.”

Big transactions marked the wave of consolidation. Coinbase completed the industry’s largest-ever acquisition by buying derivatives exchange Deribit for $2.9 billion. Kraken agreed to acquire US retail futures platform NinjaTrader for $1.5 billion, while payments company Ripple purchased crypto prime broker Hidden Road for $1.25 billion.

Equity markets reopened for crypto companies as well. Eleven initial public offerings raised $14.6 billion worldwide this year, compared with $310 million from four listings in 2024, PitchBook figures show. Issuers included Gemini, stablecoin issuer Circle and Peter Thiel-backed exchange Bullish.

Many buyers targeted firms with licenses that demonstrate compliance with national and regional rules, a strategy expected to persist into 2026. The EU’s Markets in Crypto-Assets regulation, which began to take effect in 2023, has been a focus for acquirers, in the view of Diego Ballon Ossio of Clifford Chance.

Stablecoin businesses were a major focus this year and are expected to remain active into next year as the US implements new oversight for the sector alongside fresh rules in the UK. Kerrigan noted that companies “will have to spend a lot of money to remain compliant with the new licensing regimes,” including via acquisitions.

As we wrote previously, Fidelity’s Jurrien Timmer said Bitcoin’s four-year halving cycle likely topped at the Oct. 6 all-time high in a post on X, adding that past “winters” have lasted about a year. He said he remains a secular bull but sees 2026 as a possible “off year,” with support around $65,000 to $75,000.