Hey there, PoI readers! 💫

Happy New Year and welcome to 2026! 🎉

It's your favorite crypto connoisseur, Mochi, back with our FIRST edition of the year! While you were celebrating, the crypto world was already brewing up drama. From US lawmakers sounding alarm bells about surveillance states and India's central bank playing CBDC favorites, to a legendary Bitcoin futures architect making his comeback and privacy warriors warning about AI's data grab - 2026 is starting with a bang.

Buckle up, because this edition is packed with regulatory drama, privacy concerns, and the kind of plot twists that make crypto the wildest ride in finance. Let's make 2026 legendary!

INTEL BRIEF

🟧 Rep. Warren Davidson claims the GENIUS Act could enable a surveillance state through digital IDs and wholesale CBDCs, threatening Americans' financial freedom despite promises of crypto clarity.

🟧 India's Reserve Bank is pushing countries to prioritize CBDCs over stablecoins, claiming they're safer for financial stability - but global CBDC adoption remains painfully slow with only three live projects.

🟧 Amir Zaidi, the architect behind regulated Bitcoin futures in 2017, returns to the CFTC as chief of staff just as the agency gears up to implement new digital asset legislation.

🟧 Session execs warn that AI integration at the OS level and limited user awareness pose major threats to private messaging, potentially bypassing encryption entirely and creating massive privacy risks.

US Rep Warns Stablecoin Bill Could Turn America Into a Financial Surveillance State

US Representative Warren Davidson just dropped a major red flag about the GENIUS Act (and yes, the irony of that name is not lost on us). According to Davidson, this stablecoin-focused legislation might actually be a Trojan horse that could strip Americans of their financial freedom and privacy faster than you can say "not your keys, not your crypto."

In a Wednesday post on X, Davidson didn't hold back, claiming the Act could enable a wholesale version of a US dollar CBDC - you know, those central bank digital currencies everyone's been side-eyeing with suspicion. He's speculated that this could be weaponized for "surveillance, coercion, and control." Yikes. That's giving very much dystopian sci-fi movie vibes, and we're not here for it.

But wait, there's more! Davidson also fears a digital ID system might force Americans to literally ask the government for permission to use their own money. Because nothing says "freedom" like having to get a hall pass to buy your morning coffee, right?

"Do not be deceived," Davidson warned his 86,600 X followers, reminding everyone that Bitcoin's original promise wasn't just about being some illiquid inflation hedge you HODL in your digital wallet. Nope - it was supposed to be about permissionless, peer-to-peer payments. Remember those good old days when crypto was meant to free us from the system, not become another tool for it?

Davidson isn't exactly new to this fight. Since representing Ohio back in 2016, he's been one of Congress's fiercest advocates for permissionless money, self-custody, and privacy. The guy has introduced legislation aimed at restricting state control over crypto, criminalizing CBDCs, and even tried to fire former SEC chair Gary Gensler. Talk about commitment!

Rep. Warren Davidson warns the GENIUS Act could enable wholesale CBDCs and digital IDs, potentially creating a surveillance state that strips financial freedom

Davidson argues crypto's original promise of permissionless, peer-to-peer payments is being undermined by legislation that enables government control

He's been fighting for crypto freedom since 2016, introducing bills to restrict state control and even criminalize CBDCs

India's Central Bank Pushes CBDCs Over Stablecoins But Global Adoption Remains Dead in the Water

The Reserve Bank of India (RBI) just dropped its December financial stability report on Wednesday, and they're basically screaming from the rooftops that countries should prioritize CBDCs over privately-issued stablecoins. Their reasoning? CBDCs apparently preserve the "singleness of money and the integrity of the financial system" while remaining the "ultimate settlement asset" and the "anchor for trust in money." (Did anyone else just get buzzword bingo?)

The RBI strongly advocates that nations should focus on central bank digital currencies to maintain trust in money, preserve financial stability, and build next-gen payment infrastructure that's faster, cheaper, and secure. They're also waving red flags about stablecoins, claiming they could create new channels for financial stability risks, especially during market stress. Translation: "We're nervous about losing control, and we'd like everyone to know about it."

Here's where it gets interesting - India's Economic Survey 2025-2026 indicated the government is considering regulations for stablecoins, while the RBI is taking a more cautious (read: skeptical) approach to crypto in general. Since central banks often shape money rules through policy and regulation, the RBI will likely have major influence over how crypto gets treated in India.

The RBI's Bold Claim: "CBDCs Are Stablecoins, But Better!"

In what might be the most confident flex of 2025, the RBI is basically saying CBDCs can do everything stablecoins can do - efficiency, programmability, instant settlement - but with the supposed credibility and safety of central bank money. It's giving very much "we have stablecoins at home" vibes.

Critics of CBDCs aren't exactly thrilled though. Many worry these digital currencies could infringe on privacy and undermine the financial sector by turning users into direct customers of central banks. Meanwhile, advocates argue CBDCs could improve payment efficiency and expand financial inclusion. It's a whole thing.

Meanwhile, in Reality...

While the RBI is out here championing CBDCs, the global adoption story is... well, let's just say it's moving at the speed of a DMV line on a Monday morning. Only three CBDCs have actually launched worldwide, according to the Atlantic Council - that's Nigeria, the Bahamas, and Jamaica. Three. Out of the entire planet.

The Atlantic Council's CBDC tracker shows 49 countries are in the pilot phase, 20 are developing the tech, and 36 are still researching it. So basically, everyone's thinking about it, but nobody's really doing it.

Compare that to stablecoins, which are absolutely crushing it right now. Financial institutions across the US, Europe, and Asia are moving into stablecoins for benefits like faster, lower-cost transfers. The stablecoin market cap? It started 2025 at around $205 billion and is believed to have ended the year at $307 billion, according to DefiLlama. That's some serious growth, and it's happening while CBDCs are still stuck in committee meetings.

India's RBI is urging countries to prioritize CBDCs over stablecoins, citing concerns about financial stability and the need to preserve monetary sovereignty

Only 3 CBDCs have launched globally (Nigeria, Bahamas, Jamaica) despite 105+ countries exploring the tech - adoption is painfully slow

Stablecoin market cap grew from $205B to $307B in 2025 while financial institutions embrace them for faster, cheaper transfers over traditional rails

The Architect of Bitcoin Futures Returns to CFTC as Crypto Regulation Heats Up

In what can only be described as the ultimate "return of the king" moment for crypto regulation, Amir Zaidi is heading back to the Commodities Futures Trading Commission (CFTC) as chief of staff after a six-year break. And trust me, this isn't just any boring government appointment - this guy is basically crypto regulation royalty.

The CFTC dropped the announcement on Wednesday, with Chairman Michael Selig practically rolling out the red carpet for Zaidi's return. Selig emphasized the wealth of experience Zaidi brings to the table, saying he was "grateful for his willingness to return" and praising his "continued dedication and service."

But here's the kicker - Zaidi was instrumental in the historic launch of CFTC-regulated Bitcoin futures contracts during President Trump's first term. You know, that little thing that helped legitimize Bitcoin when everyone and their grandmother thought crypto was just internet funny money? Yeah, that was partly his doing.

Why This Matters (Like, A Lot)

Zaidi's comeback couldn't be more perfectly timed. With Congress poised to send digital asset market structure legislation to the President's desk, Selig noted that Zaidi will bring "tremendous experience and expertise to the CFTC as it develops fit-for-purpose regulations for our rapidly evolving commodity markets." Translation: Things are about to get real in crypto regulation land, and they need someone who actually knows what they're doing. Novel concept, right?

The OG Crypto Regulator

Let's take a quick trip down memory lane. Zaidi's previous CFTC stint ran from 2010 to 2019, where he bounced around several different roles like a regulatory Swiss Army knife. In his last two years, he served as the director of the CFTC's Division of Market Oversight - basically the person responsible for overseeing the policy that helped establish a regulated Bitcoin futures market in the US.

And it's not like this guy has been sitting on a beach somewhere for six years. Before returning to the CFTC, Zaidi was flexing his expertise as the head of global compliance at major broker-dealer TP ICAP. So yeah, he's been keeping his regulatory muscles nice and toned.

A Blast From Bitcoin's Past

Remember 2017? When the regulated Bitcoin futures markets launched on the CBOE? That was a major step forward in legitimizing Bitcoin at a time when crypto skepticism was at an all-time high and mainstream adoption was basically a fever dream. The fact that Zaidi helped make that happen is kind of a big deal, and now he's back to potentially do even more.

The Crypto-Friendly Government Renaissance

Zaidi's appointment is just another piece of evidence that we're witnessing what many are calling a crypto-friendly revolution in government agencies. The CFTC is believed to play a key role in crypto regulation and oversight in 2026, and Zaidi marks yet another pro-crypto figure taking up key positions in government.

Chairman Selig, who took over from Caroline Pham in late December, has already vowed to support the current administration's goal of "cementing the US as the Crypto Capital of the World." Bold claim, but with people like Zaidi on board, it doesn't seem completely crazy.

Meanwhile, over at the SEC, new chairman Paul Atkins is taking a much friendlier approach to crypto. We're seeing a flood of crypto exchange-traded funds hitting the market, and many legal disputes are being put to rest. It's like watching the regulatory ice age finally thaw out, and honestly? It's about time.

Amir Zaidi returns to the CFTC as chief of staff after six years - he was instrumental in launching regulated Bitcoin futures in 2017 during Trump's first term

His timing is perfect as Congress prepares to send digital asset legislation to the President's desk, and the CFTC needs experienced leadership

Part of a broader crypto-friendly shift in government, with both the CFTC and SEC taking more supportive stances toward digital assets in 2026

AI Integration Could Completely Bypass Messaging Encryption and Nobody Seems to Notice

Well, buckle up buttercup, because according to Session executives Alex Linton and Chris McCabe, we've got way bigger fish to fry - and that fish is powered by artificial intelligence.

In a chat with Cointelegraph, these privacy warriors dropped some seriously concerning intel about the future of private messaging. Spoiler alert: it's not looking great, and most people don't even realize what's at stake.

AI: The Privacy Threat You Didn't See Coming

Sure, the EU's Chat Control legislation has been getting heavily criticized by privacy advocates (and rightfully so - nobody wants governments mandating the scanning of private messages). But Linton, who serves as president of the Session Technology Foundation, says AI is the new front we need to worry about, and honestly? It's kind of terrifying.

Here's the nightmare scenario: AI's capacity to analyze information on your device and store that data creates "huge privacy issues, huge security issues," according to Linton. He speculated that the ability to communicate privately could basically become "impossible to do on an average mobile phone or an average computer." Let that sink in for a second.

But wait, it gets worse! If AI gets integrated at the operating system level or higher, it might be able to completely bypass the encryption on your messaging app. That information could then be "fed off to a black box AI, and then from there, God knows what happens to it," Linton warned. It's giving very much dystopian nightmare vibes, and we're not fans.

"It's important that we push back against this type of deep integration of AI into all of our devices," Linton stressed, "because at that point, you just don't know what is happening on your device anymore."

And here's the kicker - the problem is believed to be exacerbated when lawmakers take advice on addressing privacy concerns from the very tech giants pushing the technology onto users in the first place. Because that's not a conflict of interest at all, right?

Most People Are Privacy Sleepwalking

McCabe, Session's co-founder, dropped another truth bomb: many people are unaware of how their online data is stored and used, as well as the dangers of mass data collection by big tech companies. And honestly, can you blame them? This stuff is complicated, and most of us are just trying to live our lives and send memes to our friends.

Case in point: ChatGPT creator OpenAI disclosed last month that a third-party data analytics provider got breached, exposing some user data that could potentially be used for phishing or social engineering attacks. Oh, and a now-deactivated chatbot feature was also found to be sharing chat histories on the open web. Cool, cool, cool. Everything's fine.

"A lot of people are unconscious of what's going on with their data," McCabe said, explaining that data can be used to "manipulate people through things like advertising, or doing things they don't even realize they do or don't want to do based on their data." It's like digital puppetry, except less fun and more creepy.

Linton emphasized that raising awareness and helping people understand available privacy tools is a key part of their work. Because if people don't know there's a problem, how can they possibly protect themselves?

The Pressure Is Real

Building encrypted messaging tools isn't exactly a walk in the park. "There is a lot of pressure if you're in the business of building encrypted messengers," Linton said. Proposed or enacted regulations are being adopted in many jurisdictions, and there's often negative media attention that comes with it.

The people actually working on this technology feel that pressure, which is why it's important for the general public to understand that these tools are trying to help. They're trying to safeguard information and make the online space better - not enable criminal activity like some narratives suggest.

From Part-Time Tech Nerds to Full-Time Privacy Warriors

Here's where the story gets kind of inspiring. McCabe said the idea for Session was born from a desire to use decentralized technology in a meaningful way and combat privacy issues. He was an electrician and "a part-time tech nerd" in his spare time until a redundancy opened the door to going "all in on Web3." He started building Session in 2018.

Linton, also a self-confessed "part-time tech nerd," was a journalist with Australia's national broadcaster, the ABC, and saw firsthand why private communication was so important. These guys literally walked away from their careers to fight for your privacy. That's dedication!

Session is open source and uses end-to-end encryption, meaning only the sender and receiver can read messages. It's designed to remove usual identifiers and metadata that traditional messengers rely on (goodbye, phone numbers!), and it has no central servers.

"It's just removing that whole middleman," McCabe explained. "If you're concerned about censorship or control or self sovereignty, removing the middleman is the key to doing that, and that's what we did."

And they must be doing something right, because Session was one of two crypto messaging apps that received support from Ethereum co-founder Vitalik Buterin last month - to the tune of a combined $760,000 in Ether plus a personal recommendation. Not too shabby!

AI integration at the OS level could bypass messaging encryption entirely, creating massive privacy and security issues that most users are completely unaware of

Many people don't understand how their data is collected, stored, and used to manipulate their behavior through advertising and other means

Session is an open-source, decentralized messaging app that removes identifiers and central servers - recently backed by Vitalik Buterin with $760K in ETH

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe a tiny bit paranoid about your digital privacy (in a healthy way, of course). Remember, whether it's governments pushing CBDCs, AI sneaking peeks at your messages, or regulators finally getting their act together - staying informed is your superpower. Keep questioning, keep learning, and never stop fighting for your financial freedom and privacy!

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

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