Here’s what happened in crypto today

Today in crypto, US regulators want to extend banking protections to users of cryptocurrency accounts and wallets, Indian cryptocurrency exchange WazirX announced a restructuring plan aimed at compensating affected users, and the United Kingdom Treasury amended a law to clarify that crypto staking does not fall under a “collective investment scheme” — clearing a potential compliance headache for proof-of-stake blockchains.CFPB wants to extend similar banking protections to crypto usersThe United States Consumer Financial Protection Bureau (CFPB) has proposed a new rule that could allow crypto wallet users to receive similar protections as traditional bank accounts.According to the proposed rule, which was published on Jan. 10, crypto users who have lost funds due to hacks or scams could be eligible for a refund by crypto service providers. The regulator suggested the same protections that “guard against error and fraud” under the Electronic Fund Transfer Act also apply to consumers using “emerging payment mechanisms,” such as crypto accounts or wallets. Consumers transacting in stablecoins or “any other similarly-situated fungible assets that either operate as a medium of exchange or as a means of paying for goods or services” would fall under the new protections. “The CFPB interprets the term ‘funds’ to include assets that act or are used like money, in the sense that they are accepted as a medium of exchange, a measure of value, or a means of payment,” the regulator said.Scammers continue to plague the crypto industry, causing billions of dollars worth of losses. In 2024, crypto users lost $3 billion due to hacks and scams, according to data from PeckShield. Chainalysis estimated this figure to be around $2.2 billion over the past 12 months.Indian crypto exchange WazirX charts recovery path after $235 million cyberattackIndian cryptocurrency exchange WazirX, which suffered a $235 million cyberattack in July 2024, has announced a restructuring plan aimed at compensating affected users.The exchange, reportedly targeted by North Korea’s Lazarus Group, has developed the plan under the supervision of Singapore’s legal system.Zettai, the parent company managing WazirX, filed for a moratorium at the Singapore High Court in August 2024, proposing a restructuring plan under a Singapore Scheme of Arrangement. A Singapore Scheme of Arrangement is a court-approved legal process companies can use to restructure their debts and liabilities. It allows a company to propose a binding arrangement with creditors, ensuring resolution while avoiding liquidation.WazirX, in an affidavit shared with Cointelegraph, stated that it currently holds liquid assets amounting to $566.4 million USDt (USDT), exceeding the total claims of $546.5 million USDT filed by users in July 2024. The company has also introduced recovery tokens to settle outstanding claims, allowing creditors to benefit from profits generated by future platform operations and recovered assets.WazirX founder Nischal Shetty described the restructuring as a step toward restoring user trust.“Our swift filing for the moratorium and application to the court for a Scheme process was a decisive step taken for the benefit of users so they can receive distributions as soon as possible,” Shetty told Cointelegraph. “Token distributions will be made shortly after the Scheme is approved by creditors and sanctioned by the court [...] my number one goal is to add more value than what was stolen.”UK order clarifies crypto staking is not a collective investment schemeThe UK Treasury has amended a law clarifying that crypto staking — necessary for proof-of-stake blockchains such as Ethereum and Solana — doesn’t fall under the definition of a “collective investment scheme,” which is typically heavily regulated. A Jan. 8 order from the department amends a section of The Financial Services and Markets Act 2000 about group investments, adding that “arrangements for qualifying cryptoasset staking do not amount to a collective investment scheme [CIS].”It clarifies that “qualifying cryptoasset staking” means validating transactions on a blockchain, a distributed ledger technology network “or other similar technology.”The updated law will come into effect on Jan. 31.