US Treasury Rejects Bitcoin Bailout, TRM Labs Hits $1B Valuation
Today in crypto markets, U.S. Treasury Secretary Scott Bessent told Congress the government will not rescue Bitcoin or the broader digital asset sector during downturns. Separately, blockchain analytics firm TRM Labs closed a $70 million Series C at a $1 billion valuation, and new analysis from Coin Metrics indicated that about 11% of Ethereum transactions may be tied to address-poisoning activity following the Fusaka upgrade.
U.S. Treasury says it will not backstop Bitcoin or wider crypto markets
Testifying before Congress on Wednesday, Treasury Secretary Scott Bessent said market participants should not expect a federal bailout if crypto prices fall sharply, emphasizing that investors are responsible for risks associated with decentralized assets. “I am Secretary of the Treasury. I do not have the authority to do that, and as chair of the Financial Stability Oversight Council (FSOC), I do not have that authority,” Bessent said when asked whether the government would “bail out” Bitcoin.
The remarks come amid a broad market decline, with Bitcoin sliding toward the low $70,000 range and Ether dropping below $2,200.
TRM Labs raises $70M Series C at $1B valuation, becoming a crypto unicorn
Blockchain intelligence firm TRM Labs completed a $70 million Series C financing round that values the company at $1 billion, according to a Wednesday announcement. The round was led by early backer Blockchain Capital, with participation from Goldman Sachs, Bessemer Venture Partners, Brevan Howard Digital, Thoma Bravo, Citi Ventures and Galaxy Ventures.
TRM Labs provides AI-driven tools to public and private institutions to counter cybercrime and illicit activity that increasingly relies on automation.
“At TRM, we’re building AI for problems that have real consequences for public safety, financial integrity, and national security,” wrote Esteban Castaño, co-founder and CEO of TRM Labs.
The $70 million raise underscores continued investment in blockchain analytics aimed at curbing AI-enabled scams and cyberattacks, including participation from major traditional institutions.
Coin Metrics: Stablecoin ‘dust’ transactions on Ethereum triple after Fusaka
Stablecoin-driven dusting activity is now estimated to account for 11% of all Ethereum transactions after the Fusaka upgrade reduced fees, according to Coin Metrics. Ethereum is processing more than 2 million average daily transactions, with a mid-January spike to nearly 2.9 million, alongside 1.4 million daily active addresses — a 60% increase versus prior averages.
Coin Metrics reviewed over 227 million balance updates for USDC (USDC) and USDt (USDT) on Ethereum between November 2025 and January 2026. Median transaction size on Ethereum fell sharply after Fusaka. Source: Coin Metrics
The analysis found that 43% of balance updates involved transfers of less than $1 and 38% were under a single penny — “amounts with insignificant economic purpose other than wallet seeding.”
The number of addresses with small “dust” holdings — greater than zero but below 1 native unit — has risen significantly, consistent with millions of wallets receiving tiny poisoning deposits.
Before Fusaka, stablecoin dust represented roughly 3% to 5% of Ethereum transactions and 15% to 20% of active addresses, Coin Metrics said. “Post-Fusaka, these figures jumped to 10-15% of transactions and 25-35% of active addresses on a typical day, a 2-3x increase.”
However, 57% of balance updates were transfers above $1, “suggesting the majority of stablecoin activity remains organic,” Coin Metrics stated.
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