News
Stripe-backed Tempo blockchain inches toward launch with public testnet
The Tempo blockchain, backed by Stripe, has initiated its public test network as of Tuesday. This permissionless blockchain is set to feature an integrated decentralized exchange specifically optimized for stablecoins. Tempo has welcomed UBS, Mastercard, and Kalshi as "design partners" in its journey towards launch. This marks a significant advancement for Tempo, a much-anticipated layer 1 blockchain, as it moves closer to its official deployment. Initially conceived as a payments-centric blockchain, Tempo is now a functional network undergoing testing by leading global companies, according to the company’s announcement. Supported by Stripe and venture capital firm Paradigm, Tempo drew considerable attention upon its initial reveal in September. This is largely due to Stripe’s status as a leading payment processor, which promises extensive distribution once Tempo officially launches, anticipated in 2026. As of September, Stripe was valued at $106 billion, making it the largest privately-held fintech company, according to FinTech Magazine. In 2024, Stripe processed $1.4 trillion in payment volume, representing about 1.3% of global GDP, with clients including major corporations like NVIDIA, PepsiCo, and Comcast. Tempo has attracted notable figures from the crypto industry and academia, such as Dankrad Feist, a former Ethereum Foundation researcher, Liam Horne, former CEO of Optimism Labs, and Mallesh Pai, a professor from Rice University. Stripe CEO Patrick Collison expressed earlier this year on Hacker News his initial disappointment with the utility of crypto in payments over the past decade. However, his perspective shifted upon observing the tangible benefits businesses found in stablecoins. Collison noted these businesses utilize crypto for actual financial activities rather than speculative purposes. Tempo aims to facilitate low-cost payment transactions, targeting fees as low as a tenth of a cent per transaction. It seeks to avoid the congestion issues common in general-purpose blockchains by reserving blockspace specifically for payments at the protocol level. This means payments will not compete with other types of blockchain traffic, such as NFT mints or high-frequency contract calls. Additionally, the blockchain's permissionless nature will include a built-in decentralized exchange optimized for stablecoins and tokenized deposits. The Tempo client is open-source, enabling anyone to operate a node. Although the test network started with four company-operated validators, Tempo plans to expand its validator set to include its design partners before fully transitioning to a permissionless model. On Tuesday, Tempo announced the inclusion of UBS, Mastercard, and Kalshi as new design partners. These join an initial group of design partners, which includes notable names like Anthropic, Deutsche Bank, DoorDash, OpenAI, Revolut, Shopify, Standard Chartered, and Visa.
Teachers Union Urges Senate to Scrap Crypto Market Structure Bill
The American Federation of Teachers (AFT) has called on Senate leaders to reject the Responsible Financial Innovation Act, expressing concerns that it would compromise investor protections and introduce new risks to pension funds. The union argues that the legislation would undermine traditional securities safeguards and allow tokenized stocks to trade without adhering to standard registration or reporting requirements. This warning comes at a time when discussions around the crypto market structure bill have become increasingly contentious, with industry groups divided and lawmakers indicating that the bill's chances of advancing have diminished. Randi Weingarten, the AFT President, emphasized in a letter that the proposed legislation could strip away existing protections for crypto assets and erode longstanding securities regulations. He warned that it would permit companies to issue stock on a blockchain without following federal registration and reporting standards. The AFT, a major U.S. labor union with approximately 1.7 million members, including teachers, school staff, and public sector workers, is concerned that the bill would expose families uninvolved with cryptocurrency to economic risks and threaten the stability of their retirement security. The Responsible Financial Innovation Act aims to establish a comprehensive framework for the regulation of digital assets, determining the roles of the Commodity Futures Trading Commission and the Securities and Exchange Commission. It proposes federal standards for the operations of exchanges, brokers, custodians, and token issuers, focusing on registration, disclosures, consumer protection, and the management of customer assets. Current discussions are exploring how the bill could introduce new compliance obligations for issuers and intermediaries, potentially allowing tokenized traditional financial instruments to trade under updated federal regulations. The debate over the bill is taking place amidst a contentious policy landscape, with disagreements among crypto stakeholders about the necessity and content of a market structure bill. During the Blockchain Association’s annual policy summit in Washington, D.C., it became evident that once-unified groups are now divided over critical issues such as the treatment of decentralized finance, government oversight of peer-to-peer transactions, and acceptable compromises for legislative progress. Some stakeholders have retracted their support, preferring no bill over one they find unacceptable. At the summit, Decrypt reported a growing divide between the optimistic public discourse and private concerns about the bill’s future. Despite expressing enthusiasm publicly, Senator Cory Booker shared significant concerns in private about the potential derailment of the bill. Negotiators from both political parties remain hopeful about revising the draft soon, but Booker highlighted that recent developments, including the Supreme Court's potential decision allowing President Trump to dismiss SEC and CFTC commissioners, have complicated the bill's prospects. This expansion of presidential power, Booker suggested, could jeopardize the bill, especially with a lack of Democratic representatives in these agencies. The Supreme Court is also reviewing President Trump's prior decision to dismiss Rebecca Slaughter, a Democratic FTC commissioner, whose husband is involved in promoting the bill with a crypto investment firm. As the Court prepares to hear Slaughter’s case against Trump, the future of the crypto market structure bill hangs in the balance. Decrypt has sought comments from various stakeholders, including the White House, the SEC, the CFTC, the AFT, and the Department of Justice.
Vivek Ramaswamy's Strive to raise $500M to buy Bitcoin
Strive, a publicly traded asset management and Bitcoin treasury firm, has unveiled a $500 million stock sales initiative aimed at bolstering its Bitcoin holdings. Co-founded in 2022 by entrepreneur and politician Vivek Ramaswamy, the company announced on Tuesday its intention to allocate the proceeds from this sale towards "general corporate purposes." This includes acquiring Bitcoin, Bitcoin-related products, and enhancing working capital. Additionally, Strive plans to invest in "income-generating assets" to further expand its operations, although specific assets have not been disclosed. This approach mirrors a trend among public companies leveraging capital markets for Bitcoin accumulation, a strategy notably advanced by Michael Saylor's firm. Currently, Strive ranks as the fourteenth-largest corporate Bitcoin holder, possessing 7,525 BTC, which is valued at approximately $694 million based on current market prices. The company transitioned to a Bitcoin treasury strategy following a public reverse merger in May. In a strategic move in September, Strive agreed to acquire Semler Scientific, thereby positioning the merged entity among the prominent corporate holders of Bitcoin. In related developments, Strive has been vocal about its stance on Bitcoin treasuries. Earlier this month, CEO Matt Cole urged the stock market index provider MSCI to allow market forces to determine the inclusion of companies with significant Bitcoin holdings in passive investment portfolios. This call to action comes as MSCI seeks feedback from the investment community regarding the potential exclusion of digital asset treasury companies (DATs) with balance sheets heavily weighted in cryptocurrencies. Since the launch of its first exchange-traded fund in August 2022, Strive Asset Management has expanded its managed assets to over $2 billion. Following the announcement of the stock sales program, Strive's shares (ASST) saw a 3.6% increase, closing at $1.02 on Tuesday, according to Google Finance. The stock has more than doubled in value since the start of the year, reflecting investor confidence and strong market performance.
Stripe’s stablecoin blockchain Tempo launches public testnet
Stripe and Paradigm have progressed significantly with their blockchain venture, Tempo, by launching its inaugural public testnet. This crucial development represents a substantial move towards establishing the official layer-1 blockchain. Tempo's announcement, made on Tuesday, reveals that the open source testnet is now operational, allowing anyone to "run a node or sync the chain" and explore its diverse features. Tempo stated that the launch marks a new chapter in its growth, concentrating on scalability, reliability, and integration. Over the coming months, the team plans to introduce additional infrastructure partners, expand features and developer tools, and rigorously test throughput under actual payment conditions. The announcement detailed six primary features that are currently operational on the network: dedicated payment lanes, gas fees in stablecoin, a built-in decentralized exchange for stable assets, metadata for payments and transfers, fast deterministic finality, and modern wallet signing techniques. Tempo aims to offer immediate, deterministic settlement, predictably low fees, and a stablecoin-centric experience—areas where many general-purpose blockchains still face challenges, particularly in financial applications. Following the launch, Georgios Konstantopoulos, Paradigm's general partner and chief technology officer, highlighted on social media a feature that enables users of the Tempo testnet to create stablecoins directly through their web browsers. These stablecoins will be crafted using Tempo’s TIP-20 token standard. However, the testnet documentation does not yet specify the liquidity and collateral requirements that will apply when the blockchain officially launches. The testnet comes four months after Tempo was initially introduced by Stripe and Paradigm, and three months following the project's successful $500 million fundraising, which valued it at $5 billion. The initiative initially began with prominent design partners such as OpenAI, Deutsche Bank, Standard Chartered, and Shopify. In the latest update, Tempo announced it has gained additional design partners, including notable companies like Mastercard, UBS, Kalshi, and Klarna. Last month, Klarna, known for its buy-now-pay-later services in the EU, launched a USD-pegged stablecoin on Tempo, becoming the first digital bank on the network to do so.
SEC Chair looks to “future-proof” overhaul of crypto regulation
Paul Atkins, the Chair of the US Securities and Exchange Commission (SEC), is advocating for a comprehensive reform of crypto regulations with the aim of making these changes resilient to future shifts in administrative focus. Atkins emphasizes the need to adjust existing securities trading rules to better integrate tokenized alternatives. He remains committed to preserving the core principles that drive the cryptocurrency sector. Atkins has initiated a reformative campaign, known as "Project Crypto," aiming to secure these regulatory changes against potential reversals by future administrations. “What is really important to me is that we future-proof what we’re doing,” Atkins stated, highlighting his concern about maintaining the reforms' longevity amidst possible future policy shifts. While he did not detail specific measures to safeguard these changes, his comments were made during the Blockchain Association’s annual policy summit held in Washington, DC, which featured prominent speakers including US Treasury Secretary Howard Lutnick and Comptroller of the Currency Jonathan Gould. Since its announcement in July, "Project Crypto" has received positive feedback from the industry. Atkins initially described the initiative as a strategy to ensure the crypto market's prominence, evaluating the pros and cons of transitioning from off-chain to on-chain market environments. The SEC staff has been tasked with formulating proposals to clarify the regulatory status of crypto assets, facilitate traditional financial institutions in managing crypto assets for clients, enable all-in-one financial “super-apps,” and harness the potential of on-chain systems within securities markets. In a recent address at the Federal Reserve Bank of Philadelphia, Atkins outlined his perspective on crypto assets, categorizing them into digital commodities, digital collectibles, digital tools, and tokenized securities. According to Atkins, only tokenized securities should fall under SEC regulation, and he indicated that future SEC efforts would concentrate on these assets. He highlighted the necessity of revising securities trading rules to accommodate the on-chain trading of tokenized equities, noting that current regulations may not align well with the dynamics of a tokenized environment. Despite the support, the plan has faced criticism. Citadel Securities, a major US market maker, expressed concerns in a letter to the SEC that relaxing existing regulations might disrupt US equities markets by favoring decentralized exchanges over traditional ones. Nonetheless, Atkins dismissed the idea of segregating traditional markets from the smaller, more volatile crypto markets. He advocated for interoperability and the freedom of movement, principles he views as fundamental to distributed ledger technology. “Let people innovate. Let the market decide what it wants to do,” Atkins stated, reinforcing his commitment to fostering a dynamic and integrated market environment. The article was contributed by Aleks Gilbert, a DeFi correspondent based in New York for DL News.
US Tech Giants Unite to Battle China’s Open-Source AI Dominance
In a significant move, major technology firms such as Anthropic, OpenAI, and Block have teamed up to establish the Agentic AI Foundation under the Linux Foundation's umbrella. This initiative aims to develop open standards for AI agents, leveraging contributions from three core projects: Anthropic's Model Context Protocol, OpenAI's AGENTS.md specification, and Block's Goose framework. The foundation has attracted prominent platinum members like Amazon Web Services, Bloomberg, Cloudflare, Google, and Microsoft, signaling a unified industry effort towards neutral governance in agentic AI infrastructure. The formation of this group comes at a time when China is rapidly advancing in global open-source AI, prompting America's leading tech companies to collaborate. Cloudflare's CTO, Dane Knecht, emphasized the importance of open standards and protocols like MCP in fostering a vibrant developer ecosystem without the risk of vendor lock-in. U.S. companies face a dilemma: they desire the recurring revenue from proprietary APIs, but risk becoming obsolete if China dominates the foundational layer. Thus, standardizing on MCP and agentic AI is seen as a strategic move to retain competitiveness and capture value through superior models rather than relying on ecosystem lock-in. This pragmatic collaboration marks a victory for the open-source community, with competitors recognizing the collective benefits of standardization over fragmentation. The U.S. AI industry's efforts to reclaim open-source dominance could prove advantageous for users worldwide, including those in China, by potentially enhancing open-source development. Anthropic has contributed its Model Context Protocol to the Linux Foundation, which allows AI models to use tools creatively beyond mere API calls. Since its launch, MCP has gained substantial traction with over 10,000 active servers, support from platforms like ChatGPT, Gemini, Microsoft Copilot, VS Code, and 97 million monthly SDK downloads. OpenAI's AGENTS.md, a lightweight specification adopted by 60,000 repositories, standardizes project instructions for AI agents. Meanwhile, Block's Goose offers a local-first agent framework. Together, these contributions operate under the Linux Foundation's neutral governance. The timing of this initiative is crucial. A December 2025 MIT study revealed that China now accounts for 17.1% of global open-source AI downloads, surpassing the U.S.'s 15.8%. Companies like DeepSeek and Alibaba have saturated the market with high-performance models, while American firms have largely focused on closed APIs in pursuit of profitability. According to Jim Zemlin, executive director of the Linux Foundation, AI is entering a new phase as conversational systems evolve into autonomous agents capable of collaboration. The foundation addresses a strategic vulnerability: reliance on Chinese open-source models could diminish dependency on U.S. cloud services and APIs. The foundation's responsive governance and vendor neutrality are underscored by its diverse membership. Platinum members include Amazon, Anthropic, Block, Bloomberg, Cloudflare, Google, Microsoft, and OpenAI. Gold members feature Cisco, Datadog, Docker, IBM, Oracle, SAP, Snowflake, and Twilio, while Silver members include Hugging Face, Uber, SUSE, and others. The organization stresses that no single company directs its path. China's edge comes from a strategic approach that prioritizes adaptability and modular innovation over large-scale AI operations. By providing open weights, Chinese companies allow developers to build upon their technologies, enhancing their adaptability. The Trump administration's AI Action Plan acknowledges the threat, noting that open-source and open-weight models could become global standards in certain business sectors and academic research, thus holding geostrategic significance.
War Department Launches New Platform With Google’s Gemini in Military AI Push
The U.S. War Department has introduced a new platform, GenAI.mil, integrating Google's Gemini for Government into military operations, marking a significant step in the Pentagon's efforts to incorporate artificial intelligence across the armed forces. This initiative is part of the U.S.'s strategic endeavor to stay competitive with China in the realm of next-generation defense technologies. The launch aligns with the administration's recent AI Action Plan, which mandates federal agencies to quicken the integration of advanced AI systems. Already, AI tools have been deployed on computers within the Pentagon and military bases globally, laying the groundwork for an "AI-first" workforce. Secretary of War Pete Hegseth emphasized the importance of AI in modern warfare, stating that technological advancements are crucial to maintaining a competitive edge over adversaries. By achieving IL5 authorization, Gemini is now equipped to manage sensitive but unclassified Defense Department data, providing over 3 million military and civilian personnel with access to cutting-edge AI tools similar to those used in the commercial sector to enhance productivity and streamline operations. Google CEO Sundar Pichai highlighted this deployment as a pivotal moment in the public sector's AI adoption, emphasizing the security and reliability of Google's systems. The U.S. military's investment in AI is substantial, with a proposed budget of $1.8 billion for 2025 dedicated to AI and machine-learning initiatives, alongside partnerships that ensure swift access to commercial AI models. Despite this progress, the Department of War did not immediately comment further, and Google refrained from elaborating beyond its public statements. The implementation of Gemini occurs amid a broader shift among AI companies, including giants like Meta, Anthropic, OpenAI, xAI, and Google itself, who are now more open to military use of their AI technologies. Earlier this year, Google revised its 'AI at Google' principles, removing restrictions on deploying Gemini for purposes that might facilitate harm. However, watchdog organizations express concern over the rapid deployment of AI in government sectors. The Center for Democracy and Technology recently cautioned that agencies may be adopting general-purpose AI models too hastily, risking potential errors and public harm due to inadequate testing and oversight. Senior Policy Analyst Quinn Anex-Ries warned that such untested deployments could lead to confusion, wasteful spending, and a range of failed AI projects that may hinder agency objectives and waste taxpayer money. Google has assured that military data will not be used to train its public AI models. The system is designed to streamline various tasks such as onboarding, contracting, and policy analysis, with the potential to incorporate more models as the military expands its AI capabilities. Secretary Hegseth reiterated the commitment to leveraging advanced, domestically-produced technology to enhance the effectiveness of the U.S. military forces, underscoring the limitless possibilities that AI presents.
SEC Chair Atkins Says Many Types of Crypto ICOs Are Outside Agency’s Purview
SEC Chair Paul Atkins has indicated that initial coin offerings (ICOs) involving network tokens, digital collectibles, or digital tools should be regarded as non-securities transactions, placing them outside the regulatory scope of the SEC. Under his outlined token taxonomy, only tokenized securities should be subject to SEC regulation, while many ICOs could transition to the more lenient oversight of the Commodity Futures Trading Commission (CFTC). This approach could signal a resurgence of ICO fundraising in the U.S., even in advance of any formal market structure legislation. Speaking at the Blockchain Association’s annual policy summit, Atkins expressed a desire to encourage these types of ICOs. He clarified that, according to his taxonomy, these ICOs do not meet the definition of securities. Last month, Atkins introduced a classification system dividing the crypto industry into four token categories. He argued that three of these categories—network tokens, digital collectibles, and digital tools—should not be classified as securities. Consequently, ICOs linked to these types of tokens would not fall under SEC regulation. The only ICO category Atkins believes should be regulated by the SEC involves tokenized securities—digital representations of securities that are already under SEC regulation and trade on blockchain networks. "ICOs overlap all four categories," Atkins noted. "Three of these are within the CFTC's domain, so it's their responsibility, while we'll concentrate on tokenized securities." This development could be advantageous for companies looking to raise funds by creating and selling tokens to investors and the public. ICOs experienced a surge in popularity during the 2017 crypto boom until the SEC, under President Donald Trump, cracked down on the practice by prosecuting numerous ICO issuers for allegedly selling unregistered securities. Atkins' recent statements suggest that ICOs could regain popularity, regardless of whether a new crypto market structure bill is passed. Under Atkins' proposed taxonomy, most crypto tokens would likely fall outside the SEC's purview, instead being overseen by the CFTC, known for its less stringent approach. Despite Atkins' positive outlook, Sen. Cory Booker has expressed significant concerns about potential obstacles to the proposed crypto market structure bill. Tokens that Atkins believes should not be classified as securities include those related to decentralized blockchain networks, internet memes, characters, events, trends, or those offering practical functions like tickets or memberships. Such tokens might soon be considered appropriate for ICO use. In July, Atkins mentioned that the SEC's "Project Crypto" initiative could facilitate ICOs through regulatory exemptions and safe harbors. Although the Senate's pending crypto market structure bill aims to formalize an ICO process, industry leaders are already advancing related initiatives, regardless of legislative progress. For instance, Coinbase recently launched a platform for ICOs after acquiring the fundraising and token launch platform Echo for $375 million. Tokens created on this platform are available to retail investors in the U.S.
Zcash is discreetly sitting in US government wallets, creating a bizarre conflict for the regulators attacking privacy
According to an analysis by Arkham Intelligence, the US government is in possession of a considerable amount of Zcash, a digital currency known for its privacy features. This holding, estimated to be worth around $1.5 million, is believed to have originated from assets seized during the 2017 shutdown of the AlphaBay darknet market. Arkham Intelligence connected these funds to government-controlled wallets via transfers linked to the Department of Justice's investigation into the marketplace. Although the government hasn't officially addressed the specific findings concerning Zcash, the holding is noteworthy due to the privacy-centric nature of the cryptocurrency. However, it constitutes only a small portion of the federal government's vast cryptocurrency reserves, which include nearly $30 billion in Bitcoin and $187 million in Ethereum, mostly acquired through similar law enforcement actions. This situation underscores a peculiar conflict where the government possesses a digital asset designed to conceal financial trails, which regulators aim to expose. As policymakers increase their scrutiny of risks associated with illicit finance, Zcash and similar technologies have become focal points in regulatory discussions. This tension will be highlighted during a roundtable on December 15, featuring Zcash founder Zooko Wilcox, Aleo Network Foundation CEO Alex Pruden, and SpruceID founder Wayne Chang, alongside the US Securities and Exchange Commission (SEC). Hester Peirce, who heads the SEC's crypto task force, indicated that the discussion seeks to enhance the agency's understanding of modern privacy tools. She emphasized that new insights could enable the regulator to refine its oversight strategy without compromising civil liberties. The debate over Zcash's traceability has been fueled by Arkham's recent claim that it can identify more than half of all Zcash activities. In a post dated December 8, Arkham stated that its service has managed to attribute over 53% of all transactions, both open and private, to known entities. Furthermore, more than 48% of inputs and outputs have been linked to specific entities, totaling over $420 billion in tagged operations. This announcement has sparked debate among privacy advocates, with critics pointing out that most Zcash transactions occur in a "transparent" mode, which is publicly visible on-chain like Bitcoin, making them easier to trace. However, Zcash's shielded transactions, which encrypt transaction metadata, remain much harder to analyze. Zooko Wilcox challenged the implications of Arkham's findings, arguing that their analysis does not equate to a breach of the protocol's encrypted shielded pool. He asserted that the data primarily reflects activity in Zcash's transparent addresses rather than compromising its core privacy framework. Arkham has not provided comprehensive methodological details, and CryptoSlate has been unable to independently verify the extent of its tracing capabilities. Despite the scrutiny, Zcash has been among the best-performing major tokens this year. The asset's value soared over 1,000% in recent months, reaching a peak above $700 in November before settling at approximately $434, based on CryptoSlate data. This strong performance has attracted renewed interest from institutional investors, with Grayscale recently applying for a spot-focused exchange-traded fund (ETF) for the asset.
Bitcoin 'After Dark' ETF Would Bet on BTC as Wall Street Sleeps
A company known as Tidal Trust II recently submitted an application to the Securities and Exchange Commission for an innovative exchange-traded fund designed to offer Bitcoin exposure during off-hours in the U.S. market. This proposed ETF, named the Nicholas Bitcoin and Treasuries AfterDark ETF, plans to balance its holdings between Bitcoin and short-term U.S. Treasuries. By doing so, it aims to capture the overnight performance of Bitcoin for American investors. Unlike traditional spot Bitcoin ETFs that directly hold Bitcoin, this fund intends to mimic Bitcoin's performance using futures contracts, index options, and existing spot Bitcoin ETFs. Eric Balchunas, a Senior ETF Analyst at Bloomberg Intelligence, noted on social media that historically, the majority of Bitcoin's gains occur outside of regular trading hours. This observation has prompted ETF developers to explore new and varied strategies, as evidenced by the AfterDark ETF concept. Recent trading patterns have shown Bitcoin experiencing sell-offs shortly after the U.S. markets open at 9:30 am ET, prompting discussions regarding these movements among market watchers. Lark Davis, an entrepreneur and content creator, humorously commented on this phenomenon, questioning whether American investors were restricted from buying. Tidal Financial Group, which specializes in "white label ETF solutions," highlighted the Nicholas Wealth brand in its filing, suggesting a modern approach to investment distinct from traditional methods. The XFunds brand, known for its edgy marketing, emphasizes adaptability to changing markets with slogans like "not your grandpa's bond fund." Currently, Tidal Financial Group operates an actively-managed ETF under the ticker "BLOX" on the NYSE, which invests in blockchain-related companies, including trading platforms, payment processors, and crypto miners. As of Tuesday, Bitcoin was trading at approximately $92,700, reflecting a 1.6% increase over the previous day, although it had declined by nearly 4% over the past year, according to CoinGecko data.
OCC boss says ‘no justification’ to judge banks and crypto differently
Jonathan Gould, the head of the Office of the Comptroller of the Currency (OCC), emphasized that cryptocurrency companies seeking a U.S. federal bank charter should not be treated differently from other financial institutions. Speaking at a blockchain conference on Monday, Gould acknowledged that while applicants from the digital or fintech sectors might offer innovative services for a national trust bank, activities like custody and safekeeping have been conducted electronically for decades. He asserted, "There is simply no justification for considering digital assets differently." Gould stressed the importance of not limiting banks, including current national trust banks, to outdated technologies or business models. The OCC, which oversees national banks, has historically viewed crypto companies as potential risks to the banking system. Currently, only two crypto banks hold OCC licenses: Anchorage Digital, chartered since 2021, and Erebor, which received a preliminary banking charter in October. Gould argued that the banking system is capable of evolving, from the telegraph era to the blockchain age. He noted that the OCC had received 14 new bank charter applications this year, some from entities involved in digital or novel asset activities, a number comparable to applications from the past four years. In his remarks at the 2025 Blockchain Association Policy Summit, Gould highlighted that chartering is vital for ensuring the banking system keeps pace with financial evolution, thereby supporting the modern economy. He advocated for digital asset entities and those using novel technologies to have a route to become federally supervised banks. Addressing concerns from banks and financial trade groups about crypto companies acquiring banking charters and the OCC's oversight capabilities, Gould warned against reversing innovations that could better serve customers and bolster local economies. He pointed out the OCC's extensive experience in supervising a crypto-native national trust bank. Gould shared that existing national banks frequently communicate their initiatives for innovative products and services, reinforcing his confidence in the OCC's ability to oversee both new entrants and the novel activities of existing banks in a fair and balanced way.
HashKey Files for Hong Kong IPO, Aims to Be City’s First Listed Crypto Exchange
HashKey Holdings is aiming to make history as Hong Kong's first publicly listed cryptocurrency exchange. The company has filed for an initial public offering (IPO) that could significantly influence the city's burgeoning regulated crypto market. Their plan involves listing 240.57 million shares globally, with 24.06 million reserved for Hong Kong investors and 216.51 million for international buyers. The maximum share price is set at HK$6.95, with the final pricing scheduled for December 16, followed by the commencement of trading the next day under stock code 3887. In its IPO prospectus, HashKey outlines its ambition to create a comprehensive digital asset ecosystem. This ecosystem is designed to offer tailored products and services for a wide range of clients, including retail investors and institutional stakeholders, all integrated into the blockchain value chain. HashKey is already recognized as the largest licensed platform in Hong Kong, and this move could solidify its position further as the city enhances its regulatory framework for both retail and institutional crypto markets. Over the past two years, Hong Kong has made significant strides in tightening and clarifying its regulatory stance on digital assets. The city has introduced new permissions for staking services, allowing firms supervised by the Securities and Futures Commission (SFC) to offer these services under regulated conditions. Additionally, stricter custody requirements for licensed platforms have been established. Hong Kong has also advanced its regulation of stablecoins, reinforcing the dominance of the U.S. dollar in local issuance and setting stringent capital, disclosure, and governance thresholds for potential issuers. These developments occur amidst Beijing's cautious scrutiny, especially after mainland regulators halted stablecoin ventures by major Chinese tech firms in October. HashKey emphasizes its regulatory advantages, extensive ecosystem, and technical expertise. It highlights its role as an early, licensed digital asset operator in Asia, showcasing its strong security and compliance framework. The company has reported HK$29.0 billion (US$3.71 billion) in staking assets and HK$1.7 billion (US$218 million) in real-world asset value, making it the largest staking provider in Asia and the eighth-largest globally. Although revenue is still in its nascent stages, HashKey is transitioning towards real-world financial assets, aiming to generate income through gas fees on its HashKey Chain—a layer-2 network designed for real-world assets, stablecoins, and institutional applications. Since its inception, HashKey has managed HK$7.8 billion (US$998 million) in assets, bolstered by its venture and secondary fund businesses, positioning it as a leader in Asia's digital asset investment sector. Despite a sharp increase in revenue from 2022 to 2024, the company's operating costs have risen even more steeply, leading to significantly increased losses. From HK$585.2 million (US$74.9 million) in 2022, losses nearly doubled to HK$1.19 billion (US$152.3 million) in 2024. HashKey attributes these losses to increased spending on research, marketing, administrative functions, and significant equity-settled share-based payment expenses. Adjusted losses saw a temporary decrease in 2023 but rose again in 2024 and into the first half of 2025, mainly due to higher exchange business costs and a decrease in transaction-facilitation revenue. Despite these financial challenges, the company's net loss improved to HK$506.7 million (US$64.9 million) in the first half of 2025, primarily due to a reduction in general and administrative expenses. Decrypt has approached HashKey for comments, but a response has not yet been received.
CFTC pilot opens path for crypto as collateral in derivative markets
The US Commodity Futures Trading Commission (CFTC) has released updated guidance on using tokenized collateral in derivatives markets, setting the stage for a pilot program to experiment with cryptocurrencies as collateral in these markets. In derivatives markets, collateral acts as a security deposit to assure that a trader can cover potential losses. Announced by CFTC Acting Chairman Caroline Pham, this digital asset pilot will enable futures commission merchants (FCMs)—companies that facilitate futures trades for clients—to accept Bitcoin (BTC), Ether (ETH), and Circle's stablecoin USDC (USDC) as margin collateral. This pilot program marks a significant step toward integrating cryptocurrency into regulated financial markets. Circle CEO Heath Tarbert highlighted that it would enhance customer protection, reduce settlement friction, and assist in risk reduction. Pham emphasized that the program "establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting." Participating FCMs will adhere to stringent reporting standards, including weekly updates on total customer holdings and any significant issues affecting the use of crypto as collateral. The CFTC’s Market Participants Division, Division of Market Oversight, and Division of Clearing and Risk have also provided updated guidance regarding the use of tokenized assets for collateral in futures and swaps trading. This guidance addresses tokenized real-world assets, such as US Treasury money market funds, and covers topics like eligible tokenized assets, legal enforceability, and segregation and control arrangements. Pham stated on X that this "guidance provides regulatory clarity and opens the door for more digital assets to be added as collateral by exchanges and brokers, alongside US Treasurys and money market funds." Additionally, the Market Participants Division issued a "no-action position" concerning the use of payment stablecoins as customer margin collateral and the holding of specific proprietary payment stablecoins in segregated customer accounts. The CFTC also withdrew Staff Advisory 20-34, which had limited FCMs' ability to accept crypto as customer collateral, deeming it "outdated and no longer relevant," partly due to the GENIUS Act. The CFTC's initiative has received commendations from several crypto industry leaders. Katherine Kirkpatrick Bos, general counsel at blockchain company StarkWare, remarked on the substantial impact of using "tokenized collateral in the derivatives markets." She noted the advantages such as atomic settlement, transparency, automation, and capital efficiency, recalling the tokenization summit in early 2024 as a hopeful sign. Paul Grewal, Coinbase's chief legal officer, also endorsed the CFTC's move, describing Staff Advisory 20-34 as a "concrete ceiling on innovation" that relied on outdated information and overextended regulatory boundaries, hindering the objectives of the President's Working Group on Financial Markets (PWG). Salman Banaei, general counsel at the layer-1 blockchain Plume Network, praised the CFTC's actions as a "major move" toward broader adoption. He noted that this development is a step toward using on-chain infrastructure to automate settlement for the world's largest asset class: over-the-counter derivatives and swaps.
Fitch Ratings flags risk for US banks with high crypto exposure
Fitch Ratings has issued a cautionary note regarding US banks with substantial cryptocurrency exposure, suggesting a possible negative reassessment of their credit ratings. In a report released on Sunday, the agency acknowledged that while integrating cryptocurrencies can enhance fees, yields, and operational efficiency, it also introduces significant risks related to reputation, liquidity, operations, and compliance. Fitch noted that innovations such as stablecoin issuance, deposit tokenization, and the use of blockchain technology present banks with opportunities to enhance customer service and capitalize on the efficiency of blockchain in areas like payments and smart contracts. However, the agency warned that banks with concentrated digital asset exposures might see their business models or risk profiles downgraded. Despite regulatory progress in the US aimed at creating a safer cryptocurrency landscape, banks still confront numerous challenges in managing cryptocurrency dealings. Fitch pointed out that banks must effectively address issues concerning the volatility of cryptocurrency values, the pseudonymity of digital asset owners, and safeguarding digital assets against loss or theft to fully harness the potential earnings and franchise benefits. Fitch Ratings is part of the "Big Three" credit rating agencies in the US, alongside Moody’s and S&P Global Ratings. The ratings from these agencies are influential in the financial sector, affecting business perceptions and economic viability. A downgrade from Fitch for banks with significant crypto exposure could lead to diminished investor confidence, increased borrowing costs, and hindered growth prospects. Major banks like JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, which have ventured into the crypto space, were mentioned in the report. The report also underscored potential risks from the rapid expansion of the stablecoin market, which could pose systemic threats if it grows sufficiently to impact other financial sectors and institutions. Fitch warned that widespread adoption of stablecoins might increase risks to the financial system, particularly if it reaches a scale capable of influencing the Treasury market. In a similar vein, Moody’s recently highlighted the potential systemic risks associated with stablecoins. In a report from late September, Moody’s argued that the widespread use of stablecoins in the US could undermine the legitimacy of the US dollar. They noted that a high penetration of USD-linked stablecoins could weaken monetary transmission, especially when pricing and settlement occur increasingly outside the domestic currency framework. This situation, they said, could lead to "cryptoization" pressures, which resemble unofficial dollarization but with increased opacity and reduced regulatory oversight.
The “infinite money glitch” fueling Strategy and BitMine has evaporated, forcing a desperate pivot to survive
This week, two of the largest crypto treasury companies, Strategy and BitMine, notably increased their digital asset holdings despite a decline in their market premiums. Strategy, previously known as MicroStrategy and focused on Bitcoin, reported acquiring 10,624 BTC last week for $962.7 million, marking its largest weekly purchase since July. This move came as Strategy's stock, MSTR, saw a 51% drop over the year, trading at $178.99. Similarly, BitMine, the largest corporate holder of Ethereum, expanded its holdings by 138,452 ETH. These acquisitions occur amid growing pressures on the Digital Asset Treasury (DAT) model, which has seen the gap closing on arbitrage opportunities that once allowed public companies to trade at 2.5 times their Net Asset Value (NAV) while issuing equity to fund acquisitions. Currently, Strategy's premium to NAV (mNAV) is approximately 1.15, and BitMine's is around 1.17, indicating the diminishing advantage of issuing stock at inflated valuations to buy assets below their intrinsic values. This "infinite money glitch" is faltering, highlighting vulnerabilities within the corporate-crypto landscape. Strategy's latest acquisition increases its Bitcoin holdings to 660,624 BTC, over 3% of the total Bitcoin supply, valued at about $60 billion with $10 billion in unrealized gains. However, the funding model supporting this growth is under threat, as it relies heavily on issuing common stock. This approach is only beneficial when the company trades above its underlying asset value. For years, Strategy leveraged a cycle of issuing shares at a premium, buying Bitcoin at market prices, and increasing value per share, all driven by momentum. However, this reflexive cycle is now breaking down, as Bitcoin has fallen from its October high of $126,000 to a range of $90,000-$95,000. NYDIG data shows a correlation between DAT premiums and the asset's trend strength. When momentum fades, the market's appetite to pay a premium for corporate exposure diminishes, affecting Strategy and similar firms. Strategy faces a mechanical risk: if its multiple falls below 1.0, stock issuance becomes dilutive. Management has acknowledged this risk, indicating that if mNAV drops below parity, they might consider selling Bitcoin. Such a move could trigger a feedback loop where equity weakness forces asset sales, reducing Bitcoin prices and further impacting Strategy's valuation. To address concerns about debt servicing in a low-premium environment, Strategy raised $1.44 billion to enhance liquidity. CEO Phong Le emphasized this as necessary to counter "FUD" and sustain operations through 2026. Despite these defensive measures, Executive Chairman Michael Saylor portrays the recent Bitcoin purchases as a demonstration of strength, a sentiment echoed by former White House official Anthony Scaramucci, who described the equity sales as smart for the balance sheet and the broader Bitcoin market. Nonetheless, the strategy's economic model faces narrowing margins with each new stock issuance. While Strategy focuses on a store-of-value approach, BitMine is shifting towards a yield-bearing model akin to a sovereign wealth fund. The firm accelerated Ethereum acquisitions after an October market disruption, now holding 3.86 million ETH, aiming for a 5% market share. BitMine plans to generate network-native income through staking, with a validator rollout slated for 2026, projecting an annual yield of over 100,000 ETH at current rates. This approach differentiates BitMine's solvency model from Strategy's, which depends on asset appreciation and a persistent premium. In contrast, BitMine is building a model based on anticipated cash flows. Chairman Tom Lee connects this strategy to institutional adoption trends, citing Wall Street's interest in tokenizing financial products, which he estimates could reach a market size nearing a quadrillion dollars. Lee views stablecoins as a transformative moment for Ethereum, catalyzing institutional recognition of tokenized assets. However, this pivot comes with execution risks, as validator income won't materialize until 2026, and Ethereum has historically lagged behind Bitcoin during market downturns. Despite this, BitMine's aggressive buying is based on the belief that the industry's move towards tokenization and programmable money will sustain ETH demand despite current volatility. The company hopes that Ethereum's "Fusaka" upgrade and institutional interest will stabilize the market, contrasting with current equity market skepticism. Both companies face a shared structural challenge: the commoditization of crypto access. The launch of spot ETFs in early 2024 temporarily boosted the DAT model's relevance, but capital flows have since reversed. Coinperps data shows US spot Bitcoin ETFs' assets under management fell from over $165 billion in October to as low as $118 billion before rebounding to $122 billion. Despite this, interest in such financial vehicles remains, as evidenced by Vanguard, a major brokerage platform, reversing its anti-crypto stance to allow third-party crypto ETFs. This has flattened the market structure and eliminated the distribution gap that previously justified DAT equity premiums. Capriole data indicates no new DAT formations in the past month and signs of treasury unwinds among smaller entities. This suggests the exit of "tourist class" corporate entrants, leaving only scaled incumbents with the liquidity to manage large treasury operations. As crypto access becomes commoditized, Strategy and BitMine must differentiate themselves through financial engineering rather than access. Investors can now buy Bitcoin and Ethereum at NAV via ETFs without paying a premium, expecting DATs to outperform through leverage, yield, or timing. The narrative of buying stock for crypto exposure is outdated. These firms' buying activities reflect conviction but also highlight their structural challenges. Strategy, led by Michael Saylor, is upholding its issuance model mechanics, while BitMine focuses on its future yield timeline. Both firms operate in an environment where their expansion's essential fuel—premium—is shrinking each quarter. Their future hinges on three factors: a resurgence in crypto demand by 2026, the stabilization of NAV premiums above parity, and the realization of enterprise flows from tokenization.
Bitcoin catches a bid, but data shows pro traders skeptical of rally above $92K
Bitcoin recently experienced a $2,650 drop after failing to surpass $92,250 on Monday. This decline coincided with a downturn in the US stock market, driven by uncertainties in the job market and concerns over high valuations in artificial intelligence investments. Traders are now focused on the upcoming US Federal Reserve monetary policy decision, though the potential for Bitcoin to quickly reach $100,000 hinges on changing risk perceptions. The monthly futures premium for Bitcoin related to spot prices has been under 5% for the last two weeks, reflecting the cryptocurrency's 28% decrease since its peak in October. Global economic growth concerns have also impacted market sentiment. The delay in official US employment and inflation data, due to a 43-day funding shutdown that concluded in November, has further clouded economic visibility. Consequently, anticipation of a 0.25% interest rate reduction in December hasn't spurred optimism, particularly after a private report highlighted 71,321 layoffs in November. Additional strain on the market comes from the US real estate sector. Data from Redfin showed that 15% of home purchase agreements were canceled in October, attributing this to high housing costs and increased economic uncertainty. CNBC reported a 38% increase in delistings from October 2024, with November's median list price dropping 0.4% compared to the previous year. Bitcoin's decline to $90,000 was exacerbated by the significant liquidation of $92 million in bullish leveraged BTC futures. Despite this, the S&P 500 index remains close to its all-time high, just 1.2% below it. Deribit data indicates that whales and market makers are requesting a 13% premium to sell Bitcoin put options, a sign typical of bearish markets. However, the rejection at $92,000 didn't alter traders' positions, reinforcing the $90,000 support level. In China, stablecoins have been trading below parity with the local currency, as traders retreat from the cryptocurrency market. This risk-off trend suggests a short-term bearish outlook for Bitcoin, although it doesn’t necessarily indicate an expectation for prices to drop below $85,000. Under normal conditions, Tether (USDT) should trade at a slight premium against the official USD rate to account for cross-border and regulatory challenges. A discount points to a strong desire to exit cryptocurrency markets, a common pattern during bearish periods. The absence of significant inflows into US spot Bitcoin exchange-traded funds (ETFs) recently has also dampened demand for bullish leverage. Bitcoin's likelihood of reaching $100,000 soon is largely dependent on clearer insights into the US job and real estate markets, which might take longer to clarify than a single Fed decision.
Tether Invests in Italian Robotics Startup Generative Bionics Amid Humanoid Hype
Tether has recently participated in a €70 million funding round for the Italian humanoid robotics startup, Generative Bionics. This investment comes as the company gears up for industrial testing and the establishment of a production facility, with plans for deployment by 2026. Tether's involvement aligns it with a broader trend of increasing investments in humanoid robotics by technology, industrial, and financial firms. On Monday, Tether announced its investment in Generative Bionics as part of a funding round that also included major players like Tesla and Nvidia. The funds from Tether are intended to assist the startup in completing industrial testing and initiating the construction of its first production plant. Generative Bionics is pioneering "Physical AI" systems, which aim to integrate humanoid robotics with artificial intelligence. In a statement, Tether CEO Paolo Ardoino emphasized the company's commitment to investing in technologies that bolster global digital and physical infrastructure while enhancing human potential. He described humanoid robotics and Physical AI as significant advancements in how intelligence and capability are applied in the real world. This investment reflects Tether's ongoing strategy of funding hardware and infrastructure projects beyond the cryptocurrency sector, including ventures in artificial intelligence, media, agriculture, and brain-computer interface technology. Other investors in the Generative Bionics funding round included CDP Venture Capital's Artificial Intelligence Fund, AMD Ventures, Duferco, Eni Next, and RoboIT. Generative Bionics was established in 2024 as a spin-off from the Italian Institute of Technology, where more than 60 humanoid prototypes were developed over two decades. The company now benefits from the expertise of 70 engineers from the institute, who are working to transform their research into commercial robots for use in manufacturing, logistics, healthcare, and retail, under the "Made in Italy" brand. Generative Bionics has announced plans to showcase its first fully functional humanoid robot at CES 2026 in Las Vegas. CEO and Co-Founder Daniele Pucci stated that the company's mission is to create a future where intelligent humanoid robots work alongside humans, enhancing both cognitive and physical capabilities. He highlighted that their Physical AI allows the design and production of human-like robots that add real value across various applications. Investment in humanoid robotics surged in 2025, with Figure AI raising $675 million at a valuation of $2.6 billion in February. Later, in July, Bedrock Robotics secured $80 million. In April, Roundhill Investments applied to launch a humanoid robotics ETF, indicating growing confidence in the potential for humanoid systems to address labor shortages and support industrial operations. Morgan Stanley has projected that the market could grow to $5 trillion by 2050, driven by demand in logistics and manufacturing sectors.
CFTC to Pilot Tokenized Collateral in Derivatives Markets Starting With Bitcoin, Ethereum and USDC
The Commodity Futures Trading Commission (CFTC) has launched a pilot program permitting tokenized digital assets to serve as margin collateral in U.S. derivatives markets. This move represents a pivotal regulatory update for cryptocurrencies following the enactment of the GENIUS Act earlier this year. Designed to integrate digital asset activities into regulated U.S. markets and reduce dependency on offshore platforms, the initiative will initially accept Bitcoin, Ethereum, and USDC as collateral for the first three months. The program sets up specific requirements for Futures Commission Merchants (FCMs) opting to accept digital assets as collateral. These requirements include mandatory weekly reports and immediate alerts in case of operational issues. Additionally, the CFTC has released new guidelines detailing the use of tokenized real-world assets like Treasury securities and money-market funds under its current regulatory structure. This guidance covers critical areas such as asset segregation, custody arrangements, valuation standards, and operational risks, while emphasizing the technology-neutral stance of the existing rules. In preparation for this new framework, the Market Participants Division has rescinded Staff Advisory 20-34, a 2020 document that previously restricted FCMs from accepting digital assets as collateral. The agency noted that this advisory had become obsolete due to advancements in tokenization and the legal changes brought about by the GENIUS Act. This pilot program follows closely on the heels of another significant development, as the CFTC has recently allowed spot crypto trading on CFTC-registered exchanges. This unprecedented move, as described by Acting Chairman Caroline Pham, will see Bitnomial, a Chicago-based platform with a history of regulation as a derivatives venue, introduce leveraged spot trading alongside its current futures and options offerings.
Crypto, TradFi sentiment improves: Will Bitcoin traders clear shorts above $93K?
In the last couple of weeks, Bitcoin has frequently revisited the $90,000 range, spurred by improved sentiment among retail investors and renewed bullish expectations from fund managers anticipating a year-end rally. Additionally, Strategy recently announced a significant Bitcoin purchase, further bolstering market confidence. Matthew Sigel, VanEck's head of digital asset research, refers to Bernstein's analysis which suggests that Bitcoin's cycle has deviated from its traditional four-year pattern, entering a prolonged bull phase. This shift is attributed to sustained institutional buying, which mitigates the impact of retail panic selling. Bernstein’s insights align with remarks from BlackRock's chair and CEO, Larry Fink, who noted an increase in Bitcoin acquisitions by sovereign wealth funds as prices have declined from their $126,000 peak. Fink highlighted, "They bought more when prices were in the 80s, aiming for long-term holding rather than short-term trading, understanding the market's volatility due to high leverage." Reflecting these sentiments, Strategy announced a substantial acquisition of 10,624 Bitcoins, valued at approximately $962.7 million, with an average price of $90,615 per coin. According to Andre Dragosch, Bitwise’s European head of research, this purchase marks Strategy's largest since July 2025. Despite Bitcoin’s rebound from its November 21 low of $80,612, prices remain constrained within the $90,000 to $93,000 bracket. Chartered market technician Aksel Kibar observed, "Bitcoin is experiencing choppy price movements, possibly searching for a bottom. Significant technical support lies between $73.7K and $76.5K, echoing the pattern seen earlier this year when a double bottom formed." Cumulative volume data from Hyblock reveals increased participation from investors trading between 0 to 100 BTC, often classified as retail traders. In contrast, larger cohorts dealing in sizes from 1,000 to 100,000 and 100,000 to 1 million BTC appear to be selling during rallies within the $90,000 to $93,000 range. Order book analysis for BTC/USDT on Binance indicates a considerable number of sell orders beginning at $90,000, intensifying between $94,000 and $95,000. Meanwhile, liquidation heatmap data suggests a concentration of short positions between $94,000 and $95,300. This scenario could potentially provide the momentum bulls need to push Bitcoin towards the $100,000 mark, should a favorable market catalyst emerge to stimulate increased spot or futures buying. As always, this article does not provide investment advice. Trading and investment decisions should be made based on individual research and risk assessment.
Saylor pitches Bitcoin-backed banking system to nation-states
Michael Saylor, the CEO of a company with the largest Bitcoin holdings, is advocating for nation-states to establish Bitcoin-backed digital banking systems. These systems would provide high-yield, low-volatility accounts, potentially attracting trillions in deposits. At the Bitcoin MENA event in Abu Dhabi, Saylor proposed that countries could leverage overcollateralized Bitcoin reserves and tokenized credit instruments to create regulated digital bank accounts offering higher yields than conventional bank deposits. He pointed out that bank deposits in regions like Japan, Europe, and Switzerland yield minimal returns, with euro money-market funds paying around 150 basis points and US money-market rates near 400 basis points. This situation, he argued, pushes investors towards the corporate bond market, which thrives due to dissatisfaction with traditional bank accounts. Saylor suggested a model where digital credit instruments make up about 80% of a fund, combined with 20% fiat currency and a 10% reserve buffer to mitigate volatility. If a regulated bank provided such a product, depositors could potentially transfer billions into these institutions for better returns. The accounts would be secured by digital credit with a 5:1 overcollateralization managed by a treasury entity. Saylor believes that a country offering these accounts could attract capital flows of "up to $50 trillion," positioning itself as the "digital banking capital of the world." These comments came shortly after Saylor announced on social media that his company acquired 10,624 BTC for approximately $962.7 million, bringing its total holdings to 660,624 BTC, purchased for around $49.35 billion at an average price of $74,696 per Bitcoin. Saylor's vision for high-yield, low-volatility digital bank products is reminiscent of Strategy's own offerings. In July, the company launched STRC, a money-market-style preferred share with a variable dividend rate of about 10%, designed to maintain its price near par and supported by Strategy’s Bitcoin-linked treasury operations. Despite reaching a market cap of around $2.9 billion, the product has faced skepticism from some quarters. Bitcoin's inherent volatility raises concerns about Saylor's push for Bitcoin-backed credit instruments. Although Bitcoin has shown strong long-term returns, its short-term price movements can be unpredictable. Currently valued at around $90,700, Bitcoin is about 28% below its all-time high of $126,080 from October 6 and roughly 9% down over the past year, according to CoinGecko. However, over five years, BTC has risen by 1,155% from $7,193 on January 1, 2020. Critics like Josh Man, a former Salomon Brothers bond and derivatives trader, have labeled Saylor’s strategy as misguided, suggesting that STRC might face a liquidity crisis. Man argued that the fiat banking system has long mastered the art of safeguarding demand deposits, whereas raising rates on STRC to uphold a peg or price level would fail if depositors demanded their funds back.
The future of secure messaging: Why decentralization matters more than ever
Encrypted messaging platforms are experiencing a resurgence, with apps like WhatsApp, iMessage, and Signal now commonly offering end-to-end encryption (E2EE). However, many still rely on centralized servers, phone numbers, and metadata, such as contact details, timing, and device information. Vitalik Buterin recently highlighted the need for secure messaging to evolve towards permissionless account setups without phone numbers or Know Your Customer (KYC) requirements, and better metadata privacy. He praised Session and SimpleX for their efforts and donated 128 Ether (ETH) to each to support their work. Session exemplifies this approach by combining E2E encryption with decentralization, bypassing the need for a central server. Messages are routed through onion paths, and user IDs are based on keys rather than phone numbers. Notably, 43% of public WiFi users have reported data breaches, often due to man-in-the-middle attacks and packet sniffing on unencrypted data. Session uses public key identities, generating a keypair locally upon sign-up, with no phone number or email needed. Messages travel through a service node network using onion routing, obscuring sender and recipient details. For offline message delivery, messages are stored in encrypted "swarms" until the recipient fetches them. These messages have a default two-week lifespan on the network, leaving only device-stored copies afterward. The app maintains a local database of chats and attachments, increasing in size with media and chat history, although users can manage this by deleting chats or using disappearing messages. The app's notification system offers two modes: Slow Mode, which uses background polling for privacy but may delay notifications, and Fast Mode, which uses push notifications for timely alerts. Fast Mode exposes the device's IP address and push token to Apple-operated servers and shares the Session Account ID and push token with a Session-run server, although message contents remain encrypted. Session's governance shifted from the Australian nonprofit Oxen Privacy Tech Foundation (OPTF) to the Swiss Session Technology Foundation (STF) in late 2024. STF handles transparency reports, which detail law enforcement requests and responses. Session's decentralized E2EE setup means they can't access user messages or keys, although they might provide logs from infrastructure they manage, in compliance with Swiss and international laws. However, they cannot supply decrypted messages or user chat keys. As quantum computing poses potential future risks, Session is redesigning its protocol to incorporate post-quantum key exchanges and perfect forward secrecy. Currently, the platform relies on classical cryptography, but a post-quantum upgrade is on the horizon. Voice and video calls are available but are still in beta, requiring user opt-in. These calls use WebRTC, revealing IP addresses, but future updates aim to enhance privacy through onion routing. Decentralized messaging platforms like Session offer advantages, such as account creation without personal identifiers and reduced metadata exposure through onion routing. The project's move to Switzerland and commitment to transparency and open-source development might bolster public confidence. However, decentralization doesn't eliminate all privacy concerns. Local device storage remains vulnerable, and Fast Mode notifications and WebRTC calls leak some metadata. Until Protocol v2 is fully implemented, post-quantum security is not guaranteed. For users considering Session, prioritizing Slow Mode can enhance metadata privacy, despite notification delays. Regularly pruning old messages and media is advisable to minimize local data risks. While decentralization, metadata reduction, and post-quantum advancements are integral to future secure messaging, Session's approach highlights ongoing challenges and the necessary trade-offs in achieving comprehensive privacy.
Ethereum’s first ZK-rollup, ZKsync Lite, to be retired in 2026
ZKsync Lite, recognized as the pioneering zero-knowledge (ZK) rollup network on Ethereum, is set to be phased out in 2026. The team behind it has announced this decision, noting that the network has successfully completed its intended purpose. In a recent update on X, ZKsync stated, "In 2026, we plan to deprecate ZKsync Lite (aka ZKsync 1.0), the original ZK-rollup we launched on Ethereum. This is a planned, orderly sunset for a system that has served its purpose and does not affect any other ZKsync systems." They further explained that ZKsync Lite was a revolutionary proof-of-concept that validated key ideas for building operational ZK systems. "It did its job: prove what’s possible and pave the way for the next generation," the team elaborated. Created by Matter Labs in 2020, ZKsync Lite was designed to facilitate quick transfers and the minting of non-fungible tokens (NFTs), although it lacked support for smart contracts, which restricted its broader application. The network was notable for being the first to utilize validity proofs, which immediately confirmed the validity of transactions before they were aggregated and sent to the Ethereum mainnet for final validation. Development on ZKsync Lite ceased in early 2023, following the launch of the zero-knowledge Ethereum Virtual Machine (zkEVM) called ZKsync Era, which includes smart contract support. The ZKsync team has assured users that no immediate actions are necessary, and that the network continues to function normally. They emphasized that "Funds remain safe, and withdrawals to L1 will keep working through the process." Additionally, they promised to provide "concrete details, dates, and migration guidance soon" regarding ZKsync Lite. While just under $50 million is currently bridged to ZKsync Lite, data from L2BEAT indicates that the network has only processed slightly over 330 user operations in the last 24 hours. In contrast, ZKsync Era boasts a total value locked of $36.4 million and has recorded over 22,000 user operations within the same period. This transition comes amidst potential shifts within the blockchain landscape. Last month, Alex Gluchowski, co-creator of ZKsync, proposed significant changes to the ZKsync governance token. The proposal aims to enhance the token's "economic utility," linking it more closely to the network's fee structure.
Bitcoin bulls must defend key level to avoid $76K, say analysts
Bitcoin is currently at a crucial technical level that needs protection to avoid significant losses, as highlighted by crypto analyst “Daan Crypto Trades.” He pointed to the 0.382 Fibonacci retracement level, which is a vital support and resistance point in market cycles. “This is a critical area for the bulls to maintain,” he mentioned, warning that a drop below this level could pull Bitcoin (BTC) down to its April lows around $76,000. “It essentially forms the last major support before revisiting the April lows, which would disrupt the long-term market structure.” Late Sunday, Bitcoin experienced a sharp leveraged position wipeout, with liquidations occurring across both long and short positions. The cryptocurrency briefly dipped below $88,000 but swiftly rebounded to over $91,500. “This is yet another instance of market manipulation during low-liquidity weekends, aimed at eliminating leveraged positions on both sides,” noted “Bull Theory.” BTC is currently trading within a crucial support/resistance zone, according to Daan Crypto Trades. All eyes are on the upcoming Federal Reserve meeting this week. The Federal Open Market Committee will wrap up its monetary policy meeting on Tuesday and Wednesday, with a 0.25% rate cut widely anticipated. Since the October rate cut, crypto markets have seen diminished momentum, as Fed Chair Jerome Powell indicated a data-dependent, non-linear easing approach rather than a straightforward rate-cutting cycle, explained Markus Thielen, head of 10x Research, in a note shared with Cointelegraph. He further noted that the market is anticipating a 25-basis-point cut on December 10, followed by a cautious stance, “mirroring October’s somewhat hawkish approach and maintaining moderate pressure towards the year-end.” “With trading volumes already low and ETF flows negative, the potential for upward movement is limited while Bitcoin remains within the $70,000–$100,000 range, and implied volatility continues to decrease, making downside risk more significant than upside potential.” The Fed’s outlook statement will be crucial. Henrik Andersson of Apollo Capital echoed this view, stating to Cointelegraph that while a Fed rate cut this week is already expected, the market's direction will depend on the outlook statement. He remains cautiously optimistic for the next year. “With the Fed chairman set to be replaced in May next year, we might see more interest rate cuts in 2026, which would likely benefit risk assets, including cryptocurrencies.” Nick Ruck, director of LVRG Research, concurred, telling Cointelegraph that beyond the Fed meeting, upcoming jobs and inflation data releases “could trigger renewed liquidity inflows and drive a broader market recovery if they align with expectations for continued monetary easing.”
Philippines’ fastest growing digital bank rolls out crypto services
GoTyme, a leading digital bank in the Philippines with a customer base of 6.5 million, has introduced cryptocurrency services through a collaboration with the US-based fintech company Alpaca. The new service allows users to purchase and store 11 different cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and Polkadot (DOT), via an automatic conversion from the Philippine peso to USD within its banking app. While it remains uncertain if GoTyme will expand its offerings to include more complex trading options, the current emphasis is on providing a straightforward and accessible user experience. According to GoTyme CEO Nate Clarke, the platform is tailored for users who prefer a hassle-free approach to buying cryptocurrencies, without the need for intricate technical knowledge or managing multiple applications. Since its inception in October 2022, GoTyme has rapidly grown, as reported by Nikkei Asia in September, amassing over 6.5 million customers in the Philippines. The bank emerged from a partnership between the Singapore-based Tyme Group and the Filipino Gokongwei Group. The GoTyme app is designed to streamline the process of setting up a bank account and debit card, which can be completed in as little as five minutes, thus facilitating easy access to cryptocurrency services. Looking ahead, GoTyme aims to expand its footprint in Southeast Asia, with plans to enter the markets of Vietnam and Indonesia. This strategy aligns with the bank's ambition to capitalize on the burgeoning digital banking scene in the region. In a statement to the Digital Banker, Clarke emphasized the bank's focus on rapid expansion over immediate profitability, targeting a sustainable customer base. The Philippines has a strong track record in cryptocurrency adoption, ranking ninth in Chainalysis’ 2025 Global Crypto Adoption Index. The government is also considering a legislative proposal to establish a strategic reserve comprising 10,000 BTC.
Robinhood Eyes Indonesia Market as Local Crypto Adoption Soars
Robinhood is set to make a significant move into Indonesia by acquiring a licensed brokerage and a cryptocurrency trading platform in the country, with the completion of these deals anticipated in early 2026. The company is venturing into Indonesia, a market experiencing considerable growth in digital asset adoption, as the nation enhances its regulatory framework for cryptocurrencies. Robinhood Markets Inc. announced its plans to purchase PT Buana Capital Sekuritas, a brokerage firm, and PT Pedagang Aset Kripto, a licensed crypto trading platform. This expansion into Indonesia, one of Asia's rapidly growing retail markets, underscores Robinhood's commitment to democratizing finance globally. Although the company has not yet shared specific integration plans, it has confirmed the transactions are expected to conclude in the first half of 2026. The appeal of the Indonesian market, described by Patrick Chan, Robinhood's head of Asia, as a vibrant environment for trading, aligns with the company's mission to broaden access to financial services. Decrypt has sought comments from key Indonesian financial institutions, including Bursa Efek Indonesia, the Otoritas Jasa Keuangan, and Bappebti, to gain further insights into the regulatory landscape Robinhood will navigate. Indonesia's digital economy is flourishing, driven by a surge in mobile payments and investment activities. According to Google's e-Conomy SEA 2025 report, the digital economy in Indonesia is expected to reach approximately $99 billion by 2025, with digital payments projected to grow from $340 billion in 2023 to $538 billion in 2025. The country is witnessing a broad adoption of digital financial services, with the World Bank's Global Findex 2025 report highlighting a significant rise in financial account ownership. From 2011 to 2024, account ownership among adults in Indonesia increased from about 20% to nearly 60%. However, a substantial portion of the population remains without financial accounts, a situation Robinhood's entry could potentially improve by offering accessible trading and investment opportunities. The impact of Robinhood's expansion will hinge on how quickly Indonesians embrace its services and the regulatory environment's adaptability. In July, Indonesia implemented new regulations increasing taxes on cryptocurrency transactions and placing digital assets under financial oversight. Offshore crypto trades now incur a 1% tax, while domestic trades are subject to a 0.21% levy. Additionally, regulators have eliminated the value-added tax on crypto sales and reclassified digital assets as financial instruments under the supervision of the Otoritas Jasa Keuangan. Indonesia continues to rank among the leading markets globally for cryptocurrency adoption, as noted in Chainalysis's 2025 Global Crypto Adoption Index. The Asia-Pacific region remains at the forefront of crypto adoption worldwide, highlighting the strategic significance of Robinhood's move into the Indonesian market.
Coinbase Reopens India Access, Sets 2026 Target for Cash-to-Crypto Purchases
Coinbase has resumed user registrations in India after a two-year break, allowing users to engage in crypto-to-crypto trading once again. This move signifies a significant effort by the company to re-establish its presence in one of the largest digital asset markets globally. According to John O’Loghlen, Coinbase's Asia-Pacific director, the platform aims to introduce a fiat on-ramp by 2026, enabling users to deposit rupees into the app to directly purchase cryptocurrencies. This feature was withdrawn shortly after its 2022 launch when India's Unified Payments Interface pulled away from Coinbase, leading to the company's exit and the offboarding of millions of users by 2023. Coinbase's return to India involved starting afresh with domestic regulators, including engagement with India’s Financial Intelligence Unit, which supervises compliance and anti-fraud measures. After securing registration earlier this year, Coinbase discreetly began a limited onboarding process in October as part of an early-access program, eventually expanding access more broadly this month. The company’s re-entry coincides with the challenges posed by India’s strict tax policies on digital assets, which include a 30% income tax without loss offsets and a 1% tax deducted at source on every trade. These regulations have significantly impacted local trading volumes and complicated exchange operations. Since the tax's introduction in 2022–23, the Indian government has collected approximately $818 million (₹700 crore), with $323 million (₹269.09 crore) in the initial year and $525 million (₹437.43 crore) in 2023–24. Despite these hurdles, Coinbase is advancing its strategy in India. In mid-October, the company announced an increased investment in CoinDCX, India's largest crypto exchange, valuing the firm at $2.45 billion. This partnership is seen as a more effective way for Coinbase to penetrate the market than attempting to rebuild its own payment systems. Additionally, Coinbase plans to expand its workforce in India, which already numbers over 500 employees, viewing the region as a strategic gateway to South Asia and the Middle East.
‘Grow up... We debank Democrats, we debank Republicans:’ JPMorgan CEO
JPMorgan's CEO Jamie Dimon has refuted claims that the bank debanks clients based on their religious or political beliefs, emphasizing his long-standing efforts to reform debanking regulations. In a conversation on Fox News' "Sunday Morning Futures," Dimon explained that JPMorgan has discontinued services for a wide range of clients, but political affiliations were never a consideration. Devin Nunes, chair of the President's intelligence advisory board and CEO of Trump Media, has accused JPMorgan of debanking the company and mentioned that it was among over 400 Trump-associated individuals and entities whose banking records were subpoenaed by special counsel Jack Smith for an investigation. Similarly, Jack Mallers, CEO of the Bitcoin Lightning Network payments company Strike, claimed that JPMorgan closed his personal accounts without explanation, raising concerns about a potential Operation Chokepoint 2.0. Houston Morgan from ShapeShift, a non-custodial crypto trading platform, shared a similar experience in November. Dimon insists that the bank does not debank individuals based on political affiliations. He stated, "People have to grow up here, OK, and stop making up things and stuff like that. I can’t talk about an individual account. We do not debank people for religious or political affiliations. We do debank them. They have religious or political affiliations. We debank people who are Democrats. We debank people who are Republicans. We have debanked different religious folks. Never was that for that reason." He advocates for changing debanking rules, especially considering the challenges faced by crypto firms in maintaining banking services. Dimon expressed support for efforts by the Trump administration to address debanking issues, highlighting his own 15-year campaign to modify these rules. He criticized the current debanking practices, describing them as "really customer unfriendly," often driven by suspicion or negative media coverage. In August, President Donald Trump signed an executive order urging banking regulators to examine debanking claims from the crypto industry and conservative groups. Dimon mentioned that while banks must comply with subpoenas, JPMorgan has suggested measures to reduce unnecessary reporting and debanking occurrences. He remarked, "We don’t give information to the government just because they ask. We’re subpoenaed. We are required by court to give it to the government." Dimon acknowledged the frustration banks face with government actions and called for a more constructive approach to addressing these issues. Dimon also noted that both political parties have pressured banks, stating, "Democratic and Republican governments have come after us both; let’s not act like this is just one side doing this. This has been going on for a long time. And we should stop militarizing the government that kind of way."
Bitcoin Edges Back Above $91,000 as Traders Brace for Fed Decision and Jobs Data
Bitcoin experienced a boost over the weekend, reaching approximately $91,950 on Sunday, as it continues its recovery from the month's low of $85,000. Despite the price increase, traders are still exercising caution following the massive $19 billion leverage wipeout in October, which has left market makers hesitant to re-engage fully, according to sources from Decrypt. With the Federal Reserve poised to make its final interest-rate decision of the year and the latest jobs data due this week, expectations are mounting for a potential rate cut. This anticipation is fueled by a rise in jobless-claim forecasts and the conclusion of the Fed's quantitative tightening phase. On Sunday, Bitcoin managed to climb back above the $90,000 mark, gaining 1.8% on the day to reach $91,950, as reported by CoinGecko. The cryptocurrency has bounced back from its early December dip near $85,000 and has increased by 5.3% for the month. Since October's leverage crisis, Bitcoin has traded within a tight range, with persistent inflation fears threatening to derail the Fed's plans for future rate cuts. While services inflation has cooled from last year's highs, it remains more robust than goods prices, with housing costs exceeding the Fed's target. This uneven inflationary landscape has complicated the Fed's disinflation strategy, leaving investors cautious about the timing and extent of rate reductions, including the central bank's upcoming decision. In this context, traditional assets like gold and silver have surged, while Bitcoin remains vulnerable to macroeconomic fluctuations, more so than U.S. equities. Ryan McMillin, the Chief Investment Officer at Merkle Tree Capital, noted that "low liquidity is still an issue for the market." He explained that since the October 10 event, order books have been depleted, and market makers are hesitant to make significant commitments. Economists are predicting an increase in initial jobless claims to 30,000 on Thursday, up from the previously reported 191,000, as per MarketWatch data. This increase could support the Fed's rationale for a rate cut, especially with economic data releases resuming their regular schedule following the longest government shutdown in U.S. history. A reduction in the Fed’s funds rate is often seen as favorable for risk assets, paving the way for a potential rally in cryptocurrencies, among other assets. With the release of economic data back on track, McMillin suggested that "a cut is not just about certain," emphasizing that the end of the Fed's quantitative tightening on December 1 sets the stage for market growth. He added that "the rate cut might be the catalyst for that to start."
Robinhood set to enter Indonesia, targeting 17M crypto traders
Robinhood, the renowned platform for crypto and stock trading, is preparing to enter Indonesia's dynamic cryptocurrency market by acquiring two local fintech firms. The company announced on Sunday its plans to purchase Buana Capital, an Indonesian brokerage, and PT Pedagang Aset Kripto, a licensed digital financial asset trader in Indonesia. This move is designed to establish Robinhood's presence in one of Southeast Asia's rapidly expanding markets. Indonesia boasts over 19 million capital market investors and 17 million involved in cryptocurrency, positioning the country as an attractive target for equity and crypto trading ventures. By acquiring an existing brokerage, Robinhood can smoothly navigate regulatory requirements and benefit from an already established market presence. Additionally, securing a licensed digital asset platform will expedite its capability to provide crypto offerings. Patrick Chan, Robinhood's head of Asia, emphasized the potential of Indonesia as a growing market for trading, aligning with Robinhood’s broader mission to democratize financial access. The company intends to continue servicing Buana Capital's clients with local financial products and, over time, hopes to introduce Robinhood's brokerage and crypto trading services. This expansion aims to link Indonesian users to U.S. equities, cryptocurrencies, and more on a large scale. The specific financial terms of the acquisitions remain undisclosed, but the deals are projected to be finalized by the first half of 2026. Indonesia, according to Chainalysis, is ranked seventh globally for cryptocurrency adoption in 2025 and leads in Southeast Asia. This is supported by a surge in crypto transactions, which tripled in 2024 to exceed 650 trillion Indonesian rupiah ($39.7 billion), as reported by Reuters. Robinhood, headquartered in California, has been proactive in expanding internationally, having entered the European and British markets in 2024. Recently, it has also ventured into the prediction markets sector, acquiring a company linked to FTX in November. Prediction markets have swiftly become one of Robinhood's most rapidly growing revenue streams.
Trump’s national security strategy is silent on crypto, blockchain
In the recently released national security strategy by the Trump administration, there was a notable absence of any mention of cryptocurrency or blockchain. This is surprising given the increasing integration of these technologies into the financial system and President Donald Trump's previous statements regarding global competition in this area. Instead, the strategy document emphasizes "core, vital national interests" focused on artificial intelligence and quantum computing, detailing the administration's ambition for U.S. technology and standards in AI, biotech, and quantum computing to lead globally. Despite Trump's previous remarks on CBS’ 60 Minutes about not wanting China to dominate the crypto space, and his expressed desire for all Bitcoin (BTC) mining to occur domestically, these sectors were not addressed in the strategy. Earlier this year, CIA Deputy Director Michael Ellis highlighted the importance of maintaining a competitive edge against China in the realm of cryptocurrency. The document does make a broad statement about the importance of preserving and enhancing America’s financial sector dominance, hinting at digital finance and innovation to maintain market liquidity and security, which can be interpreted as an indirect nod to cryptocurrency. Despite this omission, the Trump administration has been active in advancing policies related to cryptocurrency throughout the year. Initiatives include supporting the stablecoin-regulating GENIUS Act, issuing executive orders to establish a crypto task force, banning central bank digital currencies, and reducing enforcement actions against crypto-related activities. Additionally, the administration has created a Bitcoin reserve and a stockpile of crypto assets, which includes assets forfeited to the government, while exploring methods to acquire more without affecting the budget. The recent document release, which also called for increased defense spending from NATO allies, has caused market reactions. These demands for higher defense budgets are expected to elevate government borrowing, potentially leading to increased inflation and complicating interest rate cuts by central banks. The cryptocurrency market is closely watching the Federal Reserve's upcoming interest rate decision, with many investors anticipating a rate cut. This expectation has been reflected in market movements, as CME’s FedWatch indicates an 88.5% probability of a 25 basis point reduction when the Fed convenes.
Why Tokenized Assets Can't Flourish Without Liquidity: Securitize CEO
Tokenization has the potential to open up various asset classes to a wider audience, but liquidity remains a crucial element for its success, according to Carlos Domingo, co-founder and CEO of Securitize. While tokenization might allow someone from another country to own part of a Manhattan property, the ease of selling such an asset is often underestimated. When digital representations of real-world assets were first explored, it became evident that technology alone doesn't guarantee quick sales at stable prices, Domingo explained in a conversation with Decrypt. He emphasized that liquidity is as vital as accessibility for any asset class. Many assumed tokenization would transform illiquid assets into liquid ones, but this has not materialized because an asset's illiquidity persists regardless of its digital form. Domingo pointed out that digital assets, whether they represent shares in real estate or tokenized collectibles like Pokémon cards, still suffer from the same illiquidity issues as their physical versions. This means these assets could be challenging to sell swiftly without a value loss. While this scenario might change as tokenization technology evolves, the current focus is on assets with existing liquidity, such as cash and U.S. Treasuries. Domingo noted that the most successful tokenized asset is arguably the dollar, as evidenced by the significant growth of stablecoins. These digital currencies, often underpinned by cash and government securities, have carved out a $300 billion niche in the crypto sector. Tokenized U.S. Treasuries have also seen substantial growth, far surpassing tokenized stocks, with valuations of about $9 billion compared to $681 million, respectively. Securitize is actively bringing tokenization to Wall Street, having played a role in issuing BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). This money market fund, which operates across multiple blockchains, has reached $2 billion in value since its launch last March. In an article for The Economist, BlackRock's CEO Larry Fink and COO Rob Goldstein discussed tokenization's capacity to vastly increase the scope of investable assets, especially in emerging markets. Although asset classes like real estate are currently dominated by large institutions, BlackRock's executives suggested that smaller, more accessible investment units could democratize access to these markets.
Crypto’s other halving: Bittensor’s first 4-year cycle seen as ‘maturation’ milestone
As Bitcoin embarks on its fourth halving cycle, other decentralized projects are following suit, with Bittensor nearing its first halving since its 2021 launch. Bittensor, a decentralized, open-source network that facilitates AI service marketplaces through specialized “subnets,” is set for its inaugural halving around December 14. This event will see the daily issuance of its native token, TAO, decrease from 7,200 to 3,600. According to Grayscale Research analyst William Ogden Moore, this halving represents a crucial stage in Bittensor's development, aligning with its eventual goal of a 21 million token supply cap, akin to Bitcoin’s fixed limit. Investors and network participants in the digital asset space often perceive a capped supply as a potential booster of value. In scenarios where adoption increases and demand for tokens rises, a finite issuance model can be more attractive compared to pre-mined tokens or fiat currencies with limitless supply. Cointelegraph highlighted Bittensor in May during a discussion with Chris Miglino from DNA Fund, whose AI compute fund plays a significant role in the Bittensor ecosystem. Miglino noted the fund’s deep involvement in the TAO ecosystem, emphasizing the importance of their AI compute initiatives. Bittensor’s subnets are likened to a "Y Combinator for decentralized AI networks" by Grayscale, functioning like startups that develop specialized products or services. CoinGecko lists over 100 Bittensor subnets with a market cap surpassing $850 million, while Taostats, offering a more detailed ecosystem view, reports 129 subnets with a combined market cap close to $3 billion. This growth highlights the increasing demand for decentralized AI infrastructure, as developers aim to create and scale innovative AI products and applications. Miglino suggested that decentralized AI could become blockchain's most significant application since Bitcoin, largely due to this burgeoning demand. Venture capital interest in Bittensor subnets is also on the rise, with Inference Labs securing $6.3 million to back Subnet 2, a marketplace within Bittensor for inference verification.
Bitcoin wallets interacting with this specific protocol are now flagged for “high-risk” seizures by compliance algorithms
This autumn, a coordinated crackdown by European police on crypto mixers may have seemed like just another headline to many, but each seizure and server shutdown can significantly impact Bitcoin transactions. Crypto mixers, which obscure transaction trails on public ledgers, exist in the murky intersection between privacy and financial regulations. With the EU's new legal framework, this grey area is now heavily scrutinized by Europol, Eurojust, and national cybercrime units, all authorized to target services they classify as money-laundering facilitators. This transformation is gradually reshaping Bitcoin liquidity in Europe. Mixers are simple in concept yet controversial. They pool inputs from various users, providing outputs that obscure the original sender. Centralized mixers operate on controlled servers, while decentralized versions, like JoinMarket or Whirlpool, use collaborative methods without custody. EU regulators view centralized mixers as unlicensed money-laundering tools, while decentralized ones are monitored as risky entities. The EU’s AML legislative package, which includes the Anti-Money Laundering Regulation (AMLR) and the Anti-Money Laundering Authority (AMLA), places mixers under the jurisdiction of Europol and national financial intelligence units when suspected of handling illicit funds. Europol's bulletins have labeled mixers as "criminal facilitation services" when linked to ransomware or darknet markets. Eurojust plays a role when operators are international, as seen in Operation "Cookie Monster," which targeted Hydra-linked services and highlighted mixer infrastructure in money laundering. Member states execute on-the-ground seizures; for instance, Germany's BKA and the Netherlands' FIOD have conducted raids on mixer servers. The US has also set precedents, such as sanctioning Tornado Cash in August 2022, which criminalized its use involving US persons. Centralized mixers like Bestmixer.io have been shut down in Europe, with the Dutch leading an action supported by Europol in 2019. The pattern involves tracing illicit flows, locating hardware, seizing it, and prosecuting operators. Enforcement involves precise operations, such as officers in a data center in Berlin or Rotterdam isolating racks, imaging disks, and pulling network logs to trace transactions. Europol describes this forensic process meticulously, involving server seizures, domain takedowns, and asset freezes, sometimes accompanied by arrests. For example, when Bestmixer was dismantled, servers in Luxembourg and the Netherlands were confiscated, preserving logs of over 27,000 BTC for analysis. Decentralized protocols evade seizure but face compliance pressures. EU-licensed exchanges like Kraken, Bitstamp, Binance Europe, and Coinbase Europe must treat mixer-linked transactions as high-risk under AMLR. This involves automated systems flagging deposits with high KYT (Know-Your-Transaction) scores. Flagged deposits may trigger freezes, proof-of-source requests, or forced withdrawals. This impacts DeFi and crypto usage as users relying on mixers for privacy or security may shift to alternative methods. Chain-hopping, involving moving from BTC to XMR and back via non-EU avenues, is increasingly common. TRM Labs and Chainalysis have documented these displacement effects post-Tornado Cash sanctions and recent European actions. Liquidity doesn't disappear but relocates to jurisdictions with lighter compliance. For ordinary users, the issue isn't prosecution but friction. False positives can affect coinjoin participants, as risk engines mistake their collaborative structure for suspicious activity. Lightning channel users can face similar scrutiny, with some exchanges treating LN closures as unverifiable. EU states vary in enforcement capacity; Germany and the Netherlands, for instance, have dedicated blockchain forensics teams, while smaller states rely on Europol intelligence and AMLA coordination. By 2026, AMLA will supervise high-risk cross-border crypto activities, creating a more unified compliance framework across Europe. This will likely make BTC privacy liquidity more challenging within the region. Bitcoin aims for global liquidity, but EU regulations can localize it. Guidance for EU exchanges to block seizure-linked flows prompts users to seek alternatives, thinning liquidity pools and widening spreads. Past takedowns saw volumes shift from sanctioned hubs to offshore exchanges and privacy-focused networks. Europe's coordinated approach achieves similar outcomes but with more data sharing and internal consistency. Exchanges prioritize compliance with EU AML standards to maintain licenses, leading to stricter policies and automated filters treating mixer-associated UTXOs as compliance risks. This may degrade the user experience, with demands for transaction provenance and avoidance of UTXO cross-contamination. Ultimately, privacy practices are not banned but constrained. Europe's stringent environment may drive privacy flows to more accommodating regions like Asia, LATAM, or the US. Bitcoin's structure remains intact, but privacy-sensitive liquidity becomes more global, less local, and more reliant on arbitrage paths. Privacy tech will continue evolving, with coinjoins, Lightning liquidity, and PayJoin gaining traction, while the regulatory framework builds around perceived risks. The EU's strategy is not to outright ban mixers but to replace uncertainty with predictability and control through joint actions, FATF-aligned rules, and standardized KYT systems, with AMLA soon directly supervising crypto. The impact will be felt in liquidity patterns, trading desks, and in users' interactions with compliance systems, rather than courtrooms. Mixers persist in evolving forms, but Europe's enforcement model is set to reshape Bitcoin's transactional landscape.
WisdomTree brings options income strategy onchain with new tokenized fund
Global asset manager WisdomTree has unveiled a novel digital asset fund that integrates a traditional options strategy into the blockchain, highlighting the increasing overlap between conventional asset management and blockchain-based financial systems. The WisdomTree Equity Premium Income Digital Fund, known by the token ticker EPXC and the fund ticker WTPIX, aims to mirror the price and yield performance of the Volos US Large Cap Target 2.5% PutWrite Index. This benchmark employs a systematic "put-writing" strategy, where the index sells cash-secured put options to generate income. Instead of writing options directly on the S&P 500, it uses contracts tied to the SPDR S&P 500 ETF Trust (SPY), effectively earning premiums by acting as the option seller. For those wary of market volatility or potential downturns, put-writing offers a reliable stream of premium income and provides a modest cushion in stable or slightly declining markets. EPXC is accessible to both institutional and retail investors. Thanks to its tokenized nature, it is also available to crypto-native users, who can take advantage of blockchain's faster settlement processes and flexible transferability compared to traditional fund structures. Will Peck, WisdomTree’s head of digital assets, stated that the launch aims to provide investors with more options for executing their investment strategies on the blockchain, marking another step in the firm's ongoing expansion into tokenized assets. WisdomTree has been a pioneer in the tokenization space as the wealth management industry gradually catches up. Currently, it operates 15 tokenized funds across various blockchains, including Ethereum, Avalanche, and Base. Its Government Money Market Digital Fund, a tokenized variant of a traditional government money market fund investing in short-term US government securities, stands as the company's most active tokenized product, boasting over $730 million in assets, according to industry data. Previously, WisdomTree introduced a tokenized private credit fund in September, offering investors blockchain-based access to privately originated credit, which quickly attracted significant inflows following its launch. The financial and wealth management sectors have been slow to adapt, with major institutions like Goldman Sachs and BNY Mellon only recently introducing tokenized money market products. Some industry observers view this trend as a possible reaction to the swift rise of stablecoins, which have become de facto cash instruments across significant portions of the digital asset landscape.
A sudden $13.5 billion Fed liquidity injection exposes a crack in the dollar that Bitcoin was built for
At first glance, the $13.5 billion in overnight repos on December 1 might not seem significant, but for those who monitor the Federal Reserve's financial maneuvers, this was a notable increase. These operations rarely make headlines, yet they significantly influence liquidity flows, impacting everything from bond spreads to stock market enthusiasm, and even Bitcoin's behavior during calm periods. A sudden rise in overnight repos indicates how easily dollars are circulating within the financial system, and Bitcoin, now deeply intertwined with global risk dynamics, quickly reacts to these shifts. A sharp rise in repos is not typically indicative of a new stimulus cycle or a covert pivot by the Fed. Instead, it highlights how stress and relief navigate through the short-term funding market. Repo usage, especially on an overnight basis, is a swift indicator of how tight or loose the financial system feels. While it's a staple on trading floors, many in the crypto markets still view it as obscure noise. The $13.5 billion figure provides an opportunity to explore why these movements matter, how they influence traditional markets, and why Bitcoin now trades within the same framework. A repurchase agreement, or repo, is an overnight exchange of cash for collateral. One party hands over a Treasury bond to the Fed in exchange for dollars, and the transaction reverses the next day. This process is a short, precise, and low-risk method for borrowing or lending cash, utilizing Treasuries as the safest collateral available. A spike in overnight repo usage by the Fed suggests an increased demand for short-term dollars, with motivations falling into two broad categories. Sometimes, it reflects caution, where banks, dealers, and leveraged players turn to the Fed as the safest counterparty, leading to slight funding tightening as private lenders retreat. Other times, it's simply for routine financial transactions, such as settlement calendars, auctions, or month-end adjustments, creating temporary dollar needs unrelated to stress. The Fed provides a straightforward, predictable tool to smooth these fluctuations, making spikes in repo usage context-dependent. Recent weeks have presented mixed signals—SOFR has drifted higher, occasional scrambles for collateral have occurred, and the Standing Repo Facility's usage has been elevated. It's not outright panic, but neither is it entirely calm. Traditional markets closely monitor these dynamics because small shifts in short-term dollar availability can ripple throughout the system. If borrowing cash overnight becomes slightly more challenging or costly, leverage becomes more fragile, hedges costlier, and investors withdraw from riskier ventures first. Why is this relevant for Bitcoin? While Bitcoin is often pitched as a dollar system alternative, its price behavior reveals a strong connection to the same forces influencing equities, credit, and tech multiples. When liquidity improves, making dollars easier to borrow and funding markets more relaxed, risk-taking becomes cheaper and more appealing. Traders extend their exposure, volatility seems less intimidating, and Bitcoin behaves like a high-beta asset absorbing this renewed appetite. Conversely, when funding markets tighten—indicated by repo spikes signaling caution, SOFR increases, and more conservative balance sheets—Bitcoin becomes susceptible, even if its fundamentals remain unchanged. Liquidity-sensitive assets sell off not due to internal weaknesses but because traders reduce positions that add volatility during stressful times. This is the real link between repo spikes and Bitcoin. While such moves don't directly cause Bitcoin's price to rise or fall, they influence the sentiment regarding high-risk exposure. A system operating smoothly tends to push Bitcoin higher, while a system under strain pulls it lower. This week's $13.5 billion injection sits in the middle of this spectrum. It's not extreme but significant enough to show that more institutions sought cash than usual heading into the weekend. It doesn't scream panic but hints at tension that the Fed needed to alleviate. For Bitcoin, such moments—where dollar liquidity is added rather than withdrawn—often create room for risk markets to stabilize. Bitcoin now operates within this framework because its influential participants (funds, market-makers, ETF desks, and systematic traders) function within the same funding universe as traditional financial markets. When dollars are plentiful, spreads tighten, liquidity deepens, and demand for volatility exposure rises. When dollars are scarce, the reverse happens. This is why subtle repo signals matter, even if they don't immediately affect the price. They provide early indications of whether the system is comfortably balanced or slightly strained, and Bitcoin responds to this balance indirectly but consistently. The broader and more structural point is that Bitcoin has evolved beyond the notion of being independent of traditional finance. The growth of spot ETFs, derivatives volumes, structured products, and institutional desks has woven Bitcoin directly into the same liquidity cycles controlling macro assets. QT runoff, Treasury supply, money-market flows, and the Fed's balance-sheet mechanisms, including repos, define the incentives and constraints for firms handling significant volumes. Thus, a repo spike is one of the subtle signals explaining why Bitcoin sometimes rallies on seemingly uneventful days and why it sometimes declines even when specific crypto news remains positive. If the December 1 spike diminishes and repo usage drops, it suggests the system needed dollars for mechanical reasons. If such operations persist, with SOFR remaining elevated, or if the Standing Repo Facility becomes more active, it signals tightening. Bitcoin reacts differently across these scenarios: one fosters relaxed risk-taking, while the other constrains it. Currently, the market is delicately balanced. ETF flows have cooled, yields have stabilized, and liquidity remains uneven approaching year-end. A $13.5 billion repo doesn't alter this picture dramatically but fits neatly within it, indicating a system not strained enough to cause concern yet not loose enough to ignore. This is where Bitcoin comes into play. When dollars flow smoothly, Bitcoin tends to benefit—not because repo cash is buying Bitcoin, but because the entire financial system's comfort level rises just enough to support riskier assets at the margin. And it's at this margin where Bitcoin moves.
VC Roundup: Big money, few deals as crypto venture funding dries up
In November, venture capital funding within the cryptocurrency industry remained subdued, maintaining a trend of slowdown that has been evident since late 2025. The limited deal activity was predominantly centered around a few significant financing rounds by well-established firms. As previously highlighted by Cointelegraph, the third quarter displayed a similar trend: total funding reached $4.65 billion, as per Galaxy Digital's data, yet the number of deals fell behind as capital mainly targeted larger, more mature companies. Compared to previous bullish periods, both crypto venture capital funding and deal activity continue to lag significantly. According to Galaxy Digital, this pattern persisted into November, as evidenced by data from RootData, which recorded only 57 disclosed crypto funding rounds for the month. This figure represents one of the year's lowest, notwithstanding high-profile rounds like Revolut's $1 billion and Kraken's $800 million, the latter of which comes ahead of its expected public offering. RootData's analysis further reveals that most of the deals in November were within centralized finance, decentralized finance, and NFT-GameFi sectors. While broader market conditions contribute to the slowdown in deal volume, this trend poses long-term risks, according to Sarah Austin, co-founder of the real-world-asset gaming platform Titled. She expressed concern that "investing in tough times is when the best deals are made," implying that the current conditions could negatively impact the industry’s future. The latest VC Roundup edition highlights just three funding deals across the decentralized perpetuals, onchain-yield, and Web3-AI sectors. Ostium, a decentralized perpetuals platform founded by former Harvard classmates, has secured $24 million to expand its onchain perpetuals protocol into non-crypto markets, including stocks, commodities, indexes, and currencies. The funding is aimed at positioning Ostium as a leading perpetuals protocol for real-world assets and will be used to enhance its smart contracts, pricing infrastructure, and liquidity engines for higher trading volumes. The company is supported by investors such as General Catalyst, Jump Crypto, and Susquehanna International Group, along with angel investors from Bridgewater, Two Sigma, and Brevan Howard. Meanwhile, Axis has raised $5 million in a private round led by Galaxy Ventures to develop an onchain yield protocol offering exposure to Bitcoin, gold, and the US dollar. This capital will aid in creating a transparent onchain yield infrastructure for digital assets. The funding round included participation from investors like OKX Ventures, Maven 11 Capital, CMS Holdings, and FalconX. Axis has already deployed $100 million in private capital through its beta platform to rigorously test the protocol. In another development, PoobahAI, a startup based in Texas, closed a $2 million seed round to advance its no-code development platform. This platform allows users to create tokenized Web3 networks and AI agents without needing to write code, providing tools for creators, developers, and businesses to launch onchain ecosystems and deploy AI agents with ease. The integration of AI and decentralized infrastructure in this emerging ecosystem is seen as a pathway to more autonomous and user-controlled digital systems. The funding round was led by FourTwoAlpha, a venture firm noted for its early investments in Ethereum and Cosmos.
Buy the Bitcoin Dip? Why Ric Edelman Still Thinks Portfolios Should Hold Up to 40% Crypto
In a notable move back in June, Ric Edelman made waves in the investment community by advocating for a substantial allocation of 10% to 40% in cryptocurrencies within portfolios. As the founder of the Digital Assets Council of Financial Professionals, Edelman perceives the current market scenario as a prime opportunity to invest in these assets. He suggests that Bitcoin's response to macroeconomic uncertainties, alongside traditional assets, indicates its growing maturity. Despite Bitcoin's current price being far from its historical peaks, Edelman remains steadfast in his progressive investment strategy. He sees the present downturn, with Bitcoin dipping below $90,000, as a chance to purchase before it rebounds. Edelman emphasized, "If you liked Bitcoin at $100,000 or $125,000, you have to love it at $85,000." He draws parallels with stock market declines, which are often seen as buying opportunities for long-term investors. Edelman's June white paper suggested a 10% cryptocurrency allocation for conservative investors and as much as 40% for those with a more aggressive approach. This recommendation has stirred the financial advisory sector, which has been slow to adapt to digital assets. Previously advocating for minimal crypto investments, Edelman has shifted his stance due to better regulatory clarity and increased institutional interest. Bloomberg Senior ETF Analyst Eric Balchunas praised Edelman's statements as a significant endorsement of cryptocurrencies from the traditional finance sector, likening it to the impact of Larry Fink's previous remarks. At the paper's release, Bitcoin was experiencing a substantial rise, driven by favorable digital asset policies and the proliferation of exchange-traded funds. However, Bitcoin has recently struggled to maintain momentum, dipping as low as $81,000 due to macroeconomic challenges affecting risk assets. Edelman remains optimistic, highlighting the ongoing enthusiasm of institutional investors and the growing adoption of blockchain technology. He cited Harvard University's recent $116 million investment in the BlackRock iShares Bitcoin Trust as evidence of institutional interest. Edelman believes this widespread engagement will bolster prices over the coming years. He views current price fluctuations as routine, similar to those seen in other asset classes. Edelman agrees with analysts who attribute Bitcoin's decline to profit-taking by early investors. In his white paper, he predicted Bitcoin could reach a market capitalization of $19 trillion, a significant increase from its current valuation, emphasizing the importance of basing investment decisions on risk tolerance rather than age. Edelman considers Bitcoin's challenges as indicative of its maturation, asserting that its alignment with other asset classes signifies its acceptance as a mainstream asset. He notes that institutional investors now treat Bitcoin comparably to other traditional investments, highlighting the stability and growth of crypto adoption within the institutional market.
Bitcoin price dips below 88K as analysis blames FOMC nerves
Bitcoin (BTC) slipped under the $88,000 mark as the week drew to a close on Sunday, with traders bracing themselves for a significant US macroeconomic event. Key points of this development include Bitcoin experiencing sudden volatility, nearly touching $87,000. Many traders are anticipating weaker BTC price movements ahead of the Federal Reserve's interest-rate decision. Analysts suggest that it is crucial for bulls to maintain the $86,000 level. Data from Cointelegraph Markets Pro and TradingView highlighted a resurgence in BTC price fluctuations, as BTC/USD shed $2,000 in just two hourly candles. The weekend ended quietly, potentially paving the way for a new "gap" to form in CME Group's Bitcoin futures markets. According to previous reports by Cointelegraph, such gaps are typically "filled" quickly once the new macro trading week kicks off. Trader Killa pointed out that in the past six months, every single CME gap has been filled. Killa also noted in another post that Mondays often set the tone for the rest of the week’s price movement, with weekend trading playing a crucial role. He explained that if there is no price surge over the weekend, the likelihood of a pivot low forming on Monday increases. Conversely, a weekend pump makes a Monday pivot high more probable. Meanwhile, market participants are closely monitoring the US Federal Reserve's decision on interest-rate changes, the main macroeconomic focus of the week. Data from CME Group’s FedWatch Tool indicates that markets are largely expecting a 0.25% rate cut following Wednesday's Federal Open Market Committee (FOMC) meeting. Private investment manager Peter Tarr emphasized the significance of the rate decision, noting its impact on liquidity, risk appetite, and market positioning. He added that alongside the rate call, a delayed JOLTS report is also worth attention, with most market players anticipating a 25 basis point cut. Historically, Bitcoin tends to face downward pressure as FOMC announcements approach, often triggering substantial volatility as markets interpret Fed officials’ language for clues on future policy directions. Crypto trader and analyst Michaël van de Poppe suggested that anxiety surrounding the FOMC could push Bitcoin down to $87,000. He predicted that once this period of uncertainty passes, Bitcoin could quickly bounce back, resuming its uptrend. He anticipates a break past $92,000, potentially setting the stage for a rally towards $100,000 in the next one to two weeks as the Federal Reserve eases quantitative tightening, implements rate cuts, and increases the money supply to stimulate the business cycle. Van de Poppe identified $86,000 as the critical support level for bulls. This article serves only for informational purposes and does not offer investment advice or recommendations. Every investment and trading decision carries risk, and readers are encouraged to perform their own research.
South Korean police launch formal probe into $30 million Upbit hack amid ‘delay’ allegations
South Korean authorities are delving into the recent cyberattack on the Upbit cryptocurrency exchange, where a staggering $30.2 million was stolen in less than an hour on November 27. Criticism has mounted as Upbit reportedly informed financial regulators over six hours after the breach, as noted by the South Korean newspaper Chosun Ilbo. Some media outlets speculate that this delay was intended to avoid overshadowing a significant merger announcement by Upbit's operator, Dunamu, with tech giant Naver. According to a report from the Financial Supervisory Service (FSS), Upbit officials detected the breach at 5 am and held an emergency meeting within 18 minutes. Subsequently, they suspended cryptoasset transactions on the Solana network 27 minutes later and halted all deposits and withdrawals by 8:55 am. However, the first report to the FSS was not made until 10:58 am, raising concerns about the timeliness of their response. The exact details of the November 27 events remain murky, and while some criticize the delayed response, they doubt that serious repercussions for Upbit will follow, even if irregularities are uncovered. The FSS report, requested by lawmaker Kang Min-guk, revealed that in just 54 minutes, the hackers moved 104.0647 billion coins to unidentified external wallets. These coins, all part of the Solana ecosystem, represent losses of about 32 million coins, equating to $9,296 per second. An Upbit spokesperson assured that the platform is taking measures to prevent further customer losses, stating, "After the hack, we focused on preventing further withdrawals and then reported the incident to the authorities immediately after we confirmed we had suffered a security breach." The data indicated that the majority of the financial loss came from Solana (SOL) coins, with a $12.9 million loss in these tokens. However, in terms of volume, 91% of the stolen assets were Bonk, a Solana-based meme coin, alongside smaller quantities of Pudgy Penguin and Official Trump coins. The FSS is conducting an on-site inspection at Upbit, with some officials in Seoul expressing concerns about the FSS's limited capacity to enforce stringent disciplinary actions. EBN, another South Korean publication, reported that the National Police Agency’s Cyber Terrorism Investigation Unit has launched a formal inquiry following an inspection at Dunamu’s headquarters. While some government entities have speculated about North Korean involvement, citing previous hacks on South Korean exchanges, the police official noted that the investigation is still in its preliminary stages, with no suspects identified yet.
Bitcoin Cash gains nearly 40% to become ‘best performing’ L1 of the year
Bitcoin Cash (BCH) has emerged as the top-performing Layer-1 asset this year, with a substantial rise of nearly 40%, surpassing the performance of all major blockchain networks. Analyst Crypto Koryo's recent data reveals that Bitcoin Cash has outperformed other notable blockchains such as BNB (BNB), Hyperliquid (HYPE), Tron (TRX), and XRP (XRP), which have experienced only minor gains. In contrast, other Layer-1 networks, including Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Cardano (ADA), and Polkadot (DOT), have encountered significant setbacks, with many suffering declines exceeding 50% this year. Koryo pointed out that Bitcoin Cash's exceptional performance is noteworthy considering the project does not have an official presence on X (formerly Twitter). The analyst attributes this success to a beneficial combination of supply-side factors and emerging demand drivers. On the supply front, Bitcoin Cash benefits from having no token unlocks, no foundation treasury, and no venture capital overhang, which collectively reduce selling pressure. Koryo emphasized, "The entire supply is circulating. No unlocks. No foundation, no VCs dumping." In a separate analysis, trader Michaël van de Poppe anticipates Bitcoin may experience a temporary dip before continuing its upward trajectory toward six-digit figures. In a post on X, he outlined a positive scenario where Bitcoin might drop to around $87,000 before the upcoming Federal Reserve meeting, potentially setting the stage for a quick recovery. Van de Poppe forecasts that Bitcoin's uptrend will resume once it finds support and surpasses the crucial $92,000 level, potentially paving the way for a surge to $100,000 within one to two weeks. He links this outlook to a supportive macroeconomic environment, including reduced quantitative tightening, impending rate cuts, and an expanding money supply. However, he warns of potential declines if Bitcoin falls below $86,000 or fails to maintain above $92,000. Technical analyst TXMC has also noted positive signs for Bitcoin. According to TXMC, Bitcoin's "liveliness" indicator, which tracks on-chain coin spending versus holding, is on the rise again, a trend historically associated with bull market phases. Despite muted price movements, the increasing liveliness suggests stronger underlying demand for Bitcoin. This metric tends to rise when older coins start moving and falls when long-term holders accumulate.
BitMine buys $199M in Ether as smart money traders bet on ETH decline
BitMine Immersion Technologies, recognized as the largest corporate holder of Ether, is continuing its strategy of purchasing Ether during market downturns. This move comes even as some of the most successful traders in the industry are speculating on a decline in Ethereum's price. Over the past two days, BitMine has acquired Ether worth $199 million, with purchases amounting to $68 million on Saturday and $130.7 million on Friday, as revealed by data from blockchain analytics platform Lookonchain. These recent acquisitions have brought BitMine's total Ether holdings to $11.3 billion, representing 3.08% of the entire Ether supply. The company is working towards a target of accumulating 5% of Ether’s total supply, according to figures from the StrategicEthReserve. This persistent accumulation by BitMine underscores their strong belief in the potential for long-term growth of Ether. Furthermore, the company still has an additional $882 million in cash reserves, which could be allocated for further investment in Ether. Currently, BitMine stands as one of the largest corporate holders of Ether, as reported by Strategicethreserve.xyz. Their investment strategy is noteworthy, especially considering the recent decrease in digital asset treasury (DAT) activity. Corporate acquisitions of Ether have dropped by 81% over the last three months, from 1.97 million Ether in August to a net acquisition of 370,000 Ether in November. Despite this overall decline, BitMine has managed to accumulate a substantial portion, acquiring 679,000 Ether valued at $2.13 billion over the past month. In contrast to BitMine's bullish approach, the crypto sector’s highest-performing traders, identified as "smart money" on Nansen’s blockchain intelligence platform, are betting on a short-term decline in Ether's price. These traders have increased their short positions by $2.8 million in the last 24 hours, holding a net short position amounting to $21 million, according to Nansen data. Meanwhile, Ethereum exchange-traded funds (ETFs), which are crucial for providing liquidity to Ether, continue to see low demand. Farside Investors reported that spot Ether ETFs experienced net positive outflows of $75.2 million for two consecutive days, following substantial monthly outflows of $1.4 billion in November.
Corporate Bitcoin portfolios are hiding a massive liability crisis that triggered an average 27% crash last month
For several years, corporate Bitcoin holdings have signaled investor confidence: a company purchases BTC, and its stock often trades with a Bitcoin premium. However, the underlying financial statements are far from simple. A recent dataset from CoinTab reveals that many of these companies not only hold Bitcoin but also manage substantial liabilities. In numerous cases, their debts surpass their Bitcoin assets. The data is revealing: 73% of companies with Bitcoin on their balance sheets are in debt, and 39% owe more than their Bitcoin is currently worth. Approximately 10% appear to have taken on debt specifically to purchase Bitcoin, effectively turning their treasury strategies into leveraged trades. This reframes the narrative around corporate Bitcoin adoption, especially highlighted by the market events on October 10. As Bitcoin's price dropped from $122,000 to $107,000, companies previously seen as stable Bitcoin holders or adjacent entities began behaving more like leveraged investments. In the aftermath, 84% of these companies experienced share price drops, averaging a 27% decline. This market movement was a structural reaction to the divergent forces of treasury assets and debt loads. The complexities of corporate Bitcoin holdings are often overlooked. While many companies have taken on debt for various purposes such as expansion or refinancing, Bitcoin was sometimes added to their treasuries as a secondary consideration. Investors tend to lump these firms together as "firms with BTC," despite their diverse liability profiles. These companies operate as regular businesses where the Bitcoin on their balance sheets interacts with their debt in nuanced ways. To grasp the implications, consider the financial mechanics: a company with $100 million in debt and $50 million in Bitcoin isn't exactly a "Bitcoin play"; it's more of a leveraged business with a volatile asset. Conversely, if the ratio is flipped, with $50 million in debt and $100 million in Bitcoin, the Bitcoin holding significantly influences how investors value the stock. This ratio is volatile, relying heavily on Bitcoin's current price to determine the balance. CoinTab's analysis, integrating BitcoinTreasuries data with manually acquired debt figures, sheds light on the disparities. Some companies' Bitcoin reserves barely affect their liabilities, while others hover near parity, where a slight downturn could transform their Bitcoin holdings from assets to liabilities. A fraction of firms, however, have such a strong Bitcoin position that even a 50% price drop wouldn't leave them in financial distress. Interestingly, about 10% of companies in the dataset have used debt to buy Bitcoin directly. While this strategy can appear astute during price surges, it becomes problematic when the market declines. The October downturn led several companies into financial difficulties, with some having to sell Bitcoin to rebalance their financial ratios. This situation isn't a critique of mining firms, software companies, or any leveraged entity, but a reminder that "corporate Bitcoin" isn't a monolithic category. These companies represent a blend of business models, debt structures, and industry pressures, with Bitcoin as just one component. Investors who treat these stocks as straightforward Bitcoin proxies inadvertently take on unseen risks. The dataset underscores that market structure often outweighs market narratives. The corporate-holder strategy is most effective in calm, liquid markets where Bitcoin holdings can enhance equity. But when volatility spikes, companies with modest Bitcoin exposure can trade like highly leveraged funds, blurring the lines between strategic allocation and financial risk. The October 10 shock demonstrated that even companies with strong fundamentals saw stock declines because they were perceived as Bitcoin-linked risks. The average 27% drop wasn't due to fundamental changes but to a market structure that compounded leverage with volatility and sentiment. When analyzing corporate Bitcoin stories, it's crucial to look beyond the captivating figures and strategic narratives. While charismatic leaders and bold balance-sheet moves attract attention, data reveals that most companies aren't making massive bets on Bitcoin. They're engaging in typical corporate finance with Bitcoin as a secondary asset, often marginal once debt is considered. This doesn't render the Bitcoin thesis irrelevant but clarifies the investor's perspective. For pure Bitcoin exposure, one should directly invest in Bitcoin. For those seeking leverage with a Bitcoin halo, targeting companies where the Bitcoin-to-debt ratio is significant makes sense. To avoid volatility tied to credit, it's wise to steer clear of firms where Bitcoin is just a minor line item compared to liabilities. The dataset highlights that understanding corporate Bitcoin requires a comprehensive view of how these assets interact with debt, cost structures, sector cycles, and macroeconomic factors. It demonstrates that assumptions based on Bitcoin holdings alone are insufficient. A company with a large Bitcoin reserve isn't automatically safe, nor is a highly leveraged company necessarily doomed. The key lies in the mix of ratios, timing, and management's understanding of the risks and opportunities involved. As corporate adoption of Bitcoin continues, these distinctions will become even more critical. More companies will acquire Bitcoin through operations; more will incur debt for unrelated reasons; and more will become part of the Bitcoin narrative, willingly or not. The lesson from the dataset is clear: if Bitcoin is part of a company's balance sheet, it deserves as much scrutiny as the Bitcoin itself.
Citadel pushes SEC to classify open-source developers as unregistered stockbrokers – Uniswap fires back
On December 2nd, Citadel Securities submitted a 13-page letter to the SEC, arguing that decentralized protocols facilitating tokenized US equity trading already satisfy the legal definitions of exchanges and broker-dealers. Citadel urged regulators to treat these protocols accordingly. This submission coincided with a crucial moment when tokenized equities transitioned from theoretical concepts to actionable realities. Citadel is open to the idea of tokenization but insists that to realize its full potential, it must adhere to the foundational principles and investor protections that ensure the fairness, efficiency, and resilience of US equity markets. Essentially, Citadel suggests that companies looking to trade tokenized Apple shares should comply with established rules, including transparent fees, consolidated tape reporting, market surveillance, fair access, and registration as exchanges or broker-dealers. The firm cautions that granting broad exemptions to DeFi platforms could lead to a fragmented US equity market, where liquidity dissipates, retail investors lose protections under the Exchange Act, and incumbents face regulatory challenges from unregistered rivals. Uniswap's founder, Hayden Adams, quickly responded on social media, criticizing Citadel's stance as an attempt to equate decentralized protocol developers with centralized intermediaries. He highlighted the 2021 ConstitutionDAO event, where a collective effort raised $47 million in Ethereum to bid on a first-edition Constitution at Sotheby’s, only to lose out to Citadel's founder, Kenneth Griffin, who bid $43.2 million. Adams also questioned Citadel’s argument on fair access, calling it ironic given Citadel's dominance in retail order flow. Citadel's letter navigates through the definitions within the Exchange Act to build its case. An exchange is defined as any entity that provides a marketplace or facilities for bringing together buyers and sellers of securities. Rule 3b-16 clarifies that a system functions as an exchange if it consolidates orders through established, non-discretionary methods and facilitates agreement to trade between buyers and sellers. Citadel contends that many DeFi protocols meet these criteria: they have a "group of persons" behind them (such as founding designers, governance bodies, and foundations), they connect buyers and sellers through non-discretionary code (like automated market makers and on-chain order books), and users agree to trade upon submitting transactions. This reasoning extends to broker-dealer status, with Citadel listing DeFi trading apps, wallet providers, AMMs, liquidity providers, searchers, validators, protocol developers, and smart contract developers, all of which potentially collect transaction-based fees, governance-token rewards, or order-routing payments. The implication is that protocols generating revenue linked to securities trading, even through code, must register as broker-dealers. The fair access requirement emerged as a controversial point. Exchanges and ATSs must apply objective criteria to all users, removing any discriminatory practices in trading and fee structures. Citadel's letter highlights that unregistered DeFi systems lack equivalent requirements, thus enabling arbitrary access limitations or favoritism. Adams shared a screenshot of this paragraph, arguing that Citadel cannot credibly claim DeFi lacks fair access when it dominates retail order flow from brokers like Robinhood. Armani Ferrante, founder of Backpack, added that the term "DeFi" is not well-defined, leading to comparisons that are apples to oranges, encompassing CEXs, unregulated CEXs, DEXs, and unregulated CEXs masquerading as DEXs. During the SEC Investor Advisory Committee meeting on December 4th, tokenized equities were addressed within the framework of a mainstream market structure rather than as a crypto novelty. The panel, moderated by Andrew Park and John Gulliver, included representatives from Coinbase, BlackRock, Robinhood, Nasdaq, Citadel Securities, and Galaxy Digital. The discussion focused on how issuance, trading, clearing, settlement, and investor protections could function under current regulations, examining native issuance versus wrapper models, Regulation NMS applicability, interoperability across chains, and settlement and short-selling mechanics. Commissioner Crenshaw expressed skepticism, noting that many tokenized equity products marketed as wrapped exposure are not identical to the underlying shares, with unclear or disconnected ownership rights and entitlements. She questioned whether easing requirements simply because a product is on a blockchain invites regulatory arbitrage. This aligns with the agenda's emphasis on differentiating true equity-like rights from similar tokens. Chairman Paul Atkins countered, promoting tokenization as a modernization initiative for US capital markets and suggesting that the Commission should support on-chain market movements while maintaining US leadership in global finance. Outside the meeting, resistance from incumbents intensified. The World Federation of Exchanges cautioned the SEC against allowing crypto firms to sell tokenized stocks without adhering to traditional regulatory boundaries. SIFMA echoed a technology-neutral stance, advocating for innovation but insisting that tokenized securities remain subject to core investor-protection and market-integrity rules, with any exemptions being narrowly defined. Nasdaq's previous proposal to treat qualifying tokenized shares as interchangeable with traditional shares on the same order book, with the same CUSIP and material rights, aligns with the direction favored by Atkins. The core debate centers on theories of control. Citadel's perspective is that a security remains a security, regardless of its ledger. If you facilitate trades of tokenized Apple shares using automated code and collect fees, you are performing exchange or broker-dealer functions and should adhere to those obligations. This view treats code as infrastructure rather than ideology and assumes that investor protection stems from intermediary accountability rather than technical design. Conversely, Adams argues that open-source code should be distinguished from intermediaries. A smart contract does not have customers, custody, or discretionary power, and does not fit the mid-20th-century model of the Exchange Act. Treating protocol developers as brokers conflates software development with business operations and grants incumbents veto power over emerging technologies. This perspective assumes protection arises from transparency and permissionlessness, allowing anyone to audit, fork, or build competing infrastructure. Commissioner Hester Peirce, leading the SEC's Crypto Task Force, aligns more closely with Adams. In a February statement, she argued that ordinary DeFi front-end builders and open-source developers should not automatically be held to exchange and broker standards just for publishing code or operating a non-custodial UI. However, Citadel's letter specifically names "DeFi protocol developers" and "smart contract developers" as potential intermediaries who design, deploy, and maintain infrastructure while collecting fees for executing trades, exercising governance rights, and prioritizing network traffic. If deploying a smart contract that allows users to trade tokenized stocks subjects someone to broker-dealer regulations, including net-capital rules, custody requirements, and know-your-customer obligations, then open-source protocol development becomes legally untenable. Looking ahead, the SEC is considering whether tokenized equities can operate within the same investor-rights and market-integrity framework that governs current equities. Atkins has proposed an innovation exemption, a supervised sandbox that would permit some tokenized equity platforms to operate without full registration while the agency evaluates the risks. The December 4th panel framed this exemption as a compliance stress test rather than a broad waiver. The key unresolved issue is whether innovation pathways will remain closely aligned with Regulation NMS and existing intermediary responsibilities, or if the SEC will entertain wider experimental exemptions that traditional finance groups fear could fragment liquidity and weaken protections. If the SEC sides with Citadel, DeFi protocols handling tokenized equities will face compliance burdens designed for established firms like Fidelity and Morgan Stanley, potentially pushing activity offshore or into gray-market wrappers. If it sides with Adams, traditional participants may argue that the agency has created regulatory arbitrage, potentially leading to litigation from SIFMA and the World Federation of Exchanges. The outcome will determine whether tokenized US equities can be traded on public blockchains under the permissionless ethos that built DeFi, or if incorporating on-chain settlement into the stock market necessitates closing DeFi's open architecture in the US. Griffin has made his wager, and now the SEC must decide who will shape the future architecture.
‘European SEC’ proposal sparks licensing concerns, institutional ambitions
The European Commission's recent proposal to enhance the authority of the European Securities and Markets Authority (ESMA) has sparked concerns over the potential centralization of the EU's licensing regime. Despite these concerns, the initiative hints at broader ambitions to reshape the bloc’s capital markets structure. On Thursday, the Commission introduced a package that suggests granting ESMA "direct supervisory competences" over crucial market infrastructures, such as crypto-asset service providers (CASPs), trading platforms, and central counterparties, as reported by Cointelegraph. A key aspect of this proposal is the expansion of ESMA's jurisdiction, which would encompass both the supervision and licensing of all European crypto and fintech firms. This could result in slower licensing processes and impede startup growth, noted Faustine Fleuret, head of public affairs at the decentralized lending protocol Morpho. Fleuret expressed particular concern over ESMA's potential dual role in both authorizing and supervising CASPs, not just overseeing them. This proposal requires approval from the European Parliament and the Council, with negotiations currently underway. Should it be adopted, ESMA's oversight of EU capital markets would align more closely with the centralized approach of the US Securities and Exchange Commission, a model first advocated by European Central Bank President Christine Lagarde in 2023. The suggestion to centralize oversight within a single regulatory entity is intended to harmonize national supervisory practices and standardize licensing regimes, yet it risks stalling the crypto industry's progress. Elisenda Fabrega, general counsel at the Brickken asset tokenization platform, emphasized that without sufficient resources, ESMA's new mandate might become overwhelming, leading to delays or overly cautious evaluations that could disproportionately affect smaller or innovative enterprises. She highlighted that the success of this reform hinges more on its institutional implementation than its legal framework, particularly ESMA's operational capacity and its collaborative efforts with member states. The broader legislative package aims to enhance wealth creation for EU citizens by making the bloc's capital markets more competitive with the US. Currently, the US stock market holds a value of approximately $62 trillion, accounting for 48% of the global equity market. In contrast, the cumulative value of the EU stock market is around $11 trillion, representing just 9% of the global share, according to Visual Capitalist data.
Bitcoin profit metric eyes 2-year lows in 'complete reset:' BTC analysis
Bitcoin (BTC) has experienced a significant reduction in selling pressure following its decline below $90,000, according to new analysis. The behavior of long-term Bitcoin holders has shifted as BTC prices dip below this threshold. A variant of the renowned SOPR metric is now at its lowest point since the beginning of 2024. Recent price fluctuations have prompted some reactionary trading behaviors from short-term holders. A recent "Quicktake" blog by the on-chain analytics platform CryptoQuant highlighted two-year lows in a crucial Bitcoin holding metric. It shows that long-term Bitcoin holders (LTHs) have largely ceased selling after BTC/USD plunged to its lowest since April. The analysis points to a significant change in the profitability of unspent transaction outputs (UTXOs) created by LTHs compared to those by short-term holders (STHs). In this context, "LTH" and "STH" denote wallets holding a certain amount of BTC for more or less than 155 days, respectively. Utilizing a version of the Spent Output Profit Ratio (SOPR) metric, which assesses the share of UTXOs in profit versus loss, CryptoQuant has confirmed that STHs are now responsible for most profitable transactions. "The Bitcoin SOPR Ratio (LTH-SOPR / STH-SOPR) has descended to 1.35, hitting its lowest mark since early 2024. This drop aligns with Bitcoin’s price adjustment to the $89.7K range," summarized CryptoOnchain, a contributor. From this SOPR data, CryptoOnchain inferred two main outcomes: the cessation of significant distribution by LTHs and the onset of a "market cool-down." "The decline indicates a substantial 'reset' in the market," the post elaborated. "The speculative excess that previously elevated the ratio has been purged." Bitcoin speculators have shown unpredictable reactions to recent price movements, as reflected in their overall market behavior. The 30-day net position change of the STH group saw a notable increase on November 24, according to CryptoQuant. However, this rolling 30-day measure turned negative on December 1, coinciding with another price drop for BTC/USD around the start of December. This article does not offer investment advice or recommendations. All investment and trading activities carry risks, and it is advised that readers perform their own research before making any decisions.
BTC poised for December recovery on ‘macro tailwinds,' Fed rate cut: Coinbase
Bitcoin's potential rally in December could be fueled by macroeconomic factors, such as the Federal Reserve's upcoming interest rate decision. However, any hawkish comments from central bank officials could dampen investor sentiment. According to a report by Coinbase Institutional, improved liquidity conditions and the increasing likelihood of a Federal Reserve interest rate cut may trigger a recovery in the crypto market as the year ends. Coinbase noted, "We believe crypto is set for a December recovery as liquidity conditions improve, the probability of a Fed rate cut rises to 92% by December 4, and macroeconomic tailwinds strengthen." In October, Coinbase had forecasted a period of "weakness" in the crypto market before a predicted "December reversal," based on their proprietary global M2 money supply index, which tracks the total supply of fiat currency. Nonetheless, market sentiment continues to be overshadowed by fear, with both institutional and retail investors hesitant to engage, leaving the market in a state of uncertainty pending a recovery in exchange-traded fund (ETF) inflows, as per Coinbase's insights. Analysts have also pointed to the possibility of a "Santa rally" following the Federal Reserve's rate cut—a market trend where assets experience short-term gains around Christmas. Bitcoin's (BTC) performance in the early months of 2026 might be significantly influenced by statements from Federal Reserve Chair Jerome Powell, according to Nic Puckrin, a crypto analyst and co-founder of the Coin Bureau educational platform. He mentioned to Cointelegraph, "If the Fed cuts rates on December 10th and ends quantitative tightening, there’s little preventing a Santa rally for Bitcoin, unless a major geopolitical crisis occurs." However, Puckrin emphasized that investors will carefully analyze Jerome Powell's comments during the press conference to anticipate the monetary policy outlook for 2026, and any hawkish tone could stall the rally. Other analysts have linked Bitcoin's price pressure in November to Powell's earlier hawkish remarks but anticipate a recovery in December. Chris Kim, co-founder and CEO of Axis, an onchain quantitative trading fund managing $100 million, expressed optimism about a recovery, stating, "The primary driver currently is macroeconomic conditions." Kim further explained that from a technical standpoint, the market has already revisited the ~$80k level and the 100-week average, and there have been positive developments such as Vanguard allowing ETF trading. Additionally, speculation about National Economic Council Director Kevin Hassett possibly becoming the next Federal Reserve Chair in early 2026 is seen as another factor that could positively impact crypto assets, as his appointment is expected to bring a "notably more dovish" policy approach.
Wall Street will be dragged to blockchain ‘kicking and screaming,’ Fidelity CEO says
Fidelity's CEO, Abigail Johnson, has expressed her concerns about the outdated nature of traditional finance systems, describing them as reliant on "primitive technology." She believes that despite resistance, blockchain technology will eventually supplant these systems due to competitive pressures and regulatory requirements. Johnson, who oversees a $15 trillion financial services firm, likened the current financial infrastructure to a convoluted network of reconciliation processes, which she deemed "really kind of scary." At an A16Z crypto event on December 4, Johnson emphasized that the transition to blockchain won't happen overnight. She predicted an evolutionary shift, driven by a combination of market competition and regulatory mandates. Her critique underscores a broader recognition among financial leaders of systemic flaws, rooted in the industry's dependence on outdated technology and its inertia towards change. Smaller financial entities, in particular, struggle to evolve, hampering overall progress. Johnson has been a proponent of blockchain since 2013, but she cautioned that enthusiasm alone won't drive adoption. Instead, market dynamics will force the shift. Companies that fail to upgrade risk losing market share to those that offer faster, blockchain-enabled services. This competitive edge is evident when banks offering instant settlements attract more customers than those relying on legacy systems. Similarly, brokerages providing cryptocurrency custody will gain an advantage over those that don't. Fidelity has witnessed these dynamics firsthand, contending with resistance from traditional finance leaders who were vocally anti-crypto. Johnson persisted, confident that this opposition would eventually dissipate. Indeed, the landscape has begun to change, with major banks exploring cryptocurrencies and substantial investments flowing into digital assets. Regulatory changes also play a crucial role in this transition. Governments are increasingly mandating improvements in transparency, settlement speed, and interoperability—areas where blockchain excels. The U.S. has implemented the Genius Act, with the Clarity Act pending Senate approval by 2026. Meanwhile, Europe's MiCA regulations have been active since 2024. The challenge for financial institutions is not a lack of desire to upgrade but the constraints preventing them from doing so. Johnson highlighted that while some large players are eager to modernize, the industry's structure, with many smaller players, complicates efforts. The interconnected nature of the system means that its capabilities are limited by the weakest links still using outdated technology. Fidelity's commitment to blockchain dates back to 2013, when it began offering Bitcoin custody services and launched mining operations. These ventures have yielded significant returns, with Fidelity's Bitcoin mining business delivering the firm's highest ROI, according to Johnson. Fidelity's Bitcoin ETF, FBTC, manages about $20 billion, second only to BlackRock. The firm recently introduced a tokenized money market fund designed to work with stablecoins, providing clients with flexible investment options. Additionally, Fidelity launched a new Solana ETF in mid-November. Despite these advancements, Johnson acknowledged underestimating the pace of change within the traditional financial sector. She noted the numerous forces that maintain the status quo, keeping institutions aligned with outdated practices.
Who is Kevin Hassett? Why the Trump insider is set to shake up the Fed
Kevin Hassett, a seasoned economist and a trusted ally of former President Donald Trump, is emerging as a significant figure in the realm of global finance. Currently serving as the chief of the National Economic Council, Hassett is widely anticipated to succeed Jerome Powell as the chair of the US Federal Reserve. This follows President Trump’s indication that he has already selected his preferred candidate and plans to reveal the choice early next year. According to The New York Times, Trump referred to Hassett as a "potential Fed chair" and noted that the list of candidates has narrowed to one. Mark Spindel, chief investment officer at Potomac River Capital, commented on Hassett's ability to communicate complex economic concepts in a manner that aligns with Trump's style. Trump's recent statements from Air Force One suggest he has firmly decided on his nominee. Kalshi, a prediction market, currently assigns a 74% likelihood of Hassett securing the position, with Kevin Warsh trailing at 14%. If Hassett succeeds, he will lead a Federal Reserve perceived as more politically allied with the president than any in recent memory. When questioned by Fox Business about potentially serving as Fed chair, Hassett affirmed, "Yes, I serve the president. That’s what I do." Hassett's quick ascent is noteworthy due to his fervent advocacy for more aggressive and rapid interest rate cuts, a stance that aligns with Trump’s longstanding demands. His leadership could come at a crucial time when cryptocurrencies and other high-risk assets are closely tied to liquidity. Traditionally, Fed chairs operate independently of political influence, balancing the goals of maximizing employment and maintaining price stability. However, a dovish Fed under Hassett might inject additional funds into the financial ecosystem, potentially boosting the value of risk assets by discouraging bond investments. Critics, however, warn that this could jeopardize price stability and fuel inflation. Jerome Powell's term, marked by frequent disagreements with Trump over interest rate policies, is set to conclude in May 2026. Hassett, known for his deep involvement in Trump’s administration, has managed the National Economic Council from the West Wing, acting as a strategic advisor on trade, tariffs, and monetary policy. The Council’s role is to coordinate both domestic and international economic policies among top officials. During Trump’s initial presidency, Hassett led the Council of Economic Advisers and played a crucial role during the pandemic as a crisis consultant, later returning to refine policy strategies. Spindel notes Hassett’s unique ability to translate complex economic ideas into language that resonates with Trump’s communication style, and vice versa. Beyond his association with Trump, Hassett boasts a distinguished background, having spent two decades at the American Enterprise Institute, advising numerous Republican presidential campaigns, and working at Columbia Business School and the Fed’s research division in his early career. Treasury Secretary Scott Bessent has concluded the interview process and is expected to soon present his formal recommendation. Trump plans to announce his decision in early 2026.
Why CFTC-approved spot Bitcoin, Ethereum trading is a 'massively huge deal'
On Thursday, the US Commodity Futures Trading Commission (CFTC) revealed that spot trading for Bitcoin (BTC) and Ether (ETH) would commence on its registered futures exchanges for the first time. This development is significant for both cryptocurrencies as they approach 2026, and here's why: **Key Insights:** - **CFTC Oversight Enhances Legitimacy:** The CFTC's endorsement provides Bitcoin and Ethereum with a legitimacy akin to that of gold, potentially unlocking greater institutional investment. - **Regulated US Trading Elevates Market Conditions:** The initiation of regulated trading within the US is expected to enhance liquidity, decrease volatility, and redirect crypto activities back to the domestic market. **Bitcoin and Ethereum's Path to Scalability Like Gold:** An insightful parallel to the CFTC's recent decision can be drawn from the history of the gold market. In the 1970s, when gold began trading on regulated US futures exchanges, it transitioned from a scattered, over-the-counter commodity into a globally acknowledged investment asset. This shift concentrated liquidity on COMEX, invited institutional participation, and established a transparent price discovery process, fostering sustained capital flows. Since gold's introduction to COMEX, spot prices have surged by 4,000%, illustrating how regulatory clarity can significantly influence an asset's market evolution. By placing Bitcoin and Ethereum within a similar commodity framework, the CFTC has bypassed the issuer-focused requirements of the US Securities and Exchange Commission (SEC). This move addresses a long-standing void where US traders, despite having access to platforms like Coinbase and Kraken, lacked the benefits of regulated spot leverage, comprehensive liquidity tools, and exchange-level protections. The absence of these elements pushed liquidity offshore. Recent data from 2025 indicated that Binance accounted for about 41.1% of global spot activity, surpassing US-based platforms. With the advent of regulated spot markets domestically, Bitcoin and Ethereum are now poised to follow gold's trajectory from a niche hedge to a mature, globally traded asset. **Enhanced Institutional Exposure for BTC and ETH:** Pension funds, banks, and hedge funds that previously refrained now have the opportunity to engage with Bitcoin and Ethereum under standardized rules, surveillance, and custody requirements, akin to other CFTC-recognized commodities. A January survey by Coinbase and EY-Parthenon indicated that 86% of institutional investors have or plan to include crypto in their portfolios, with many increasing their allocations in 2024 in response to evolving US regulations. The majority also favor accessing cryptocurrencies via regulated investment channels like commodity exchanges or ETFs, rather than offshore platforms. With the CFTC's decision, institutions can now access Bitcoin and Ethereum through regulated exchanges, audited custody, and supervised pricing mechanisms, paving the way for stronger mainstream adoption. **Potential for Improved Liquidity Growth:** Historically, commodities have seen rapid expansion after being introduced on regulated trading platforms. For instance, when WTI oil futures launched in 1983, trading volume skyrocketed from 3,000 contracts in the first month to over 100,000 per month within a year, eventually surpassing 2 million contracts per month by the late 1980s. Today, WTI often achieves daily volumes exceeding a million contracts, showcasing the profound market growth regulation can promote. Bitcoin and Ethereum could experience similar liquidity enhancements, with CFTC-approved spot trading expected to attract a larger number of US traders and market participants, thereby deepening order books and narrowing spreads. Increased liquidity and trading volume within the US are also likely to mitigate volatility over time, as larger buy or sell orders can be more effectively absorbed. This article serves informational purposes only and does not offer investment advice or recommendations. Investments and trading involve risks, and readers should perform their own research when making decisions.
Professor Coin: When Bitcoin Sneezes—How Crypto and Equities Caught the Same Cold
Academic research increasingly indicates a strong connection between cryptocurrencies and equities, particularly during stressful periods. Recent studies highlight that cryptocurrencies are beginning to emulate the behavior of high-beta tech sectors. A consensus is emerging among academics that cryptocurrencies have become an integral part of the global risk ecosystem. Professor Andrew Urquhart, a finance and fintech expert at Birmingham Business School, shares insights into this evolving relationship in his Professor Coin column. Initially, Bitcoin was hailed as a unique diversifier, an asset unaffected by equity market fluctuations. Early studies supported this view; for example, Liu and Tsyvinski (2021) found that major cryptocurrencies had limited exposure to typical stock, bond, and FX risk factors, with returns driven by crypto-specific factors like momentum and investor attention. However, recent years have shown a different picture, with a growing body of literature suggesting that cryptocurrencies are now closely linked with equities, especially during periods of market stress. A survey by Adelopo et al. (2025) highlights the time-varying and non-linear relationships between cryptocurrencies and stock markets, noting strong connections during significant macroeconomic and geopolitical events, such as the COVID-19 pandemic and the Russia-Ukraine conflict. Specific studies focusing on technology and blockchain-linked stocks corroborate these findings. Umar et al. (2021) identified a strong connection between cryptocurrency markets and the tech sector, while Frankovic (2022) observed significant return spillovers from crypto prices to Australian cryptocurrency-linked stocks, particularly those deeply involved in blockchain activities. This suggests that listed equities now serve as a transmission channel for crypto risk. Recent papers further elucidate the crypto-equity link. Vuković (2025) used a Bayesian Global VAR to demonstrate that negative shocks from the cryptocurrency market can depress stock markets, bond indices, exchange rates, and volatility indices globally. Ghorbel and colleagues (2024) examined the connectedness of major cryptocurrencies with G7 stock indices and gold, finding that cryptocurrencies have become key transmitters and receivers of shocks, with stronger ties to equities, especially during turbulent times. Lamine et al. (2024) explored the spillovers between U.S. and Chinese stocks, cryptocurrencies, and gold, finding significant dynamic risk spillovers, particularly in high-volatility episodes. Sajeev et al. (2022) documented Bitcoin's contagion effect on major stock exchanges like NSE India, Shanghai, London, and Dow Jones from 2017-2021. International organizations, such as the IMF, echo these findings. An IMF paper on "Spillovers Between Crypto and Equity Markets" reported that Bitcoin shocks account for a considerable share of global equity volatility variation, with influence growing as institutional and derivative markets mature. The overarching conclusion is clear: cryptocurrencies are now entrenched in the global risk ecosystem. The reasons behind the close movement of tech stocks and cryptocurrencies include their sensitivity to duration and interest rates. Both sectors are essentially claims on uncertain future cash flows or network value, making them vulnerable to rising real rates. Additionally, both sectors share a similar investor base and leverage, with heavy use of retail trading, momentum strategies, and derivatives. Institutional portfolio strategies have also intertwined crypto with traditional assets, causing them to move together during risk-off periods. For portfolio management, the implications are significant. While cryptocurrencies can offer diversification during calm periods, stress scenarios see correlations and spillovers spike, aligning Bitcoin and major altcoins more with global risk sentiment than with "digital gold." This doesn't render crypto investments useless but challenges the notion that a 5-10% crypto allocation provides uncorrelated upside. The future remains uncertain, with questions about whether spot ETFs and broader institutional adoption will further tighten these linkages or whether new use cases might reintroduce unique drivers. For now, when global markets falter, cryptocurrencies no longer stand apart—they react alongside other assets.
Strategy raised $1.44B to dispel ‘FUD’ amid a Bitcoin down cycle: CEO
Phong Le, the CEO of Strategy, explained that the decision to establish a $1.44 billion reserve was aimed at easing investor worries about the company's stability during a downturn in Bitcoin prices. During an appearance on CNBC’s Power Lunch, Le emphasized the company's integral role in the crypto and Bitcoin ecosystems, which motivated their recent efforts to raise capital and bolster their balance sheet with US dollars to combat fear, uncertainty, and doubt (FUD). On Monday, Strategy revealed the creation of this reserve, which was funded through a stock sale. The reserve is designed to ensure the company can cover at least 12 months of dividend payments, with plans to eventually extend this to a 24-month coverage period. This move came in response to concerns about the company's ability to meet its debt and dividend commitments if its stock price were to drop significantly. Le stated that the company was not in danger of defaulting on dividend payments or being forced to liquidate their Bitcoin holdings, despite the circulating FUD suggesting otherwise. He noted that within just eight and a half days, Strategy successfully raised $1.44 billion, equivalent to 21 months' worth of dividend obligations. This achievement was not only intended to dispel the FUD but also to demonstrate that the company can secure funding even during a Bitcoin downcycle. Additionally, Le mentioned that Strategy would contemplate selling Bitcoin only if the stock value fell below its net asset value and new capital became inaccessible. The company has also introduced a "BTC Credit" dashboard, indicating that they have sufficient assets to cover dividend payments for over 70 years.
Illuminating progress: Is a $140K income ‘poor’?
In 1906, Upton Sinclair's investigation into Chicago's meatpacking plants revealed the harsh realities of poverty in his book, "The Jungle," where families lived in cramped conditions, children endured dangerous factory work, and workers were left injured without support. Fast forward to 2025, a new form of investigative work comes from Michael W. Green, an asset manager who sparked widespread debate with his assertion that American families earning less than $140,000 annually are impoverished. This claim raises eyebrows at the thought of families struggling on a six-figure income. By Green's estimation, a significant portion of Americans would qualify for food assistance. However, unlike Sinclair, Green's analysis appears to lack firsthand engagement with the families he discusses, suggesting a disconnect from practical realities. Economists have largely dismissed Green’s conclusions. Scott Winship criticizes it as "the worst poverty analysis" he's encountered, while Tyler Cowen and others find both Green’s methodology and conclusions fundamentally flawed. Jeremy Horpedahl labels the use of $140,000 as a poverty threshold absurd, and Noah Smith claims that Green's numbers and conclusions are "very silly." Green's argument, though more complex than it seems, cites the MIT "cost of thriving" index. This index shows a stark contrast in living standards, indicating that in 1985, 30 weeks of median male earnings sufficed for a good life, whereas now, it requires 63 weeks. Despite not being an economist, the general perception is that life has become economically easier compared to 1985, even if pop culture back then held its appeal. Today, consumer goods like cars, appliances, and video games are not only better in quality but more affordable when adjusted for these improvements. Cowen points out that although housing costs have risen, Americans enjoy more living space and fewer cohabitants on average. He further explains that healthcare costs, contrary to some beliefs, have generally declined over time, making modern healthcare preferable to past decades. This notion, that current statistics overlook significant advancements in purchasing power, echoes William Nordhaus's insights. By examining the historical cost of lighting through various technologies, Nordhaus illustrated how failing to account for quality improvements leads to underestimations of economic progress. The shift from candlelight to modern bulbs, for instance, reflects a dramatic improvement in affordability and quality. Such insights highlight the flaw in Green's approach, which overlooks the enhanced value of modern goods and services. Cowen argues that high prices reflect high demand, arising from more Americans being able to afford these goods. A $140,000 income offers substantial purchasing power. Analyzing broader economic trends, the U.S. middle class has been shrinking not due to poverty, but because of the expansion of the upper class. In 1967, only a small percentage of families earned over $150,000 (adjusted for inflation), compared to a much larger percentage now. More people have moved into the middle class, with a significant increase in those earning more than 200% of the federal poverty line since 1975. Data from the Economic Strategy Group show a decline in poverty rates, both in income and consumption-based measures, revealing greater improvement than official statistics suggest. Americans are consuming more calories and have better healthcare access than in previous decades. Historically, even simple lighting was a luxury, but advancements have drastically reduced the cost of living over time. Nordhaus's work made economic progress more relatable by showing how the "time-price" of light has decreased drastically, illustrating the broader improvements in living standards. As we consider these perspectives, it's clear that the narrative of poverty at a $140,000 income level doesn't align with the tangible progress observed in economic conditions.
Yield Basis activates fee switch after investors deposit $130m Bitcoin
Yield Basis, a protocol launched just three months ago, initiated its fee switch on Thursday. This move comes amid mounting demands for crypto protocols to share their revenue with investors. Founder Michael Egorov emphasized the importance of "closed-loop economics," warning that tokens could underperform without them. Developed by Egorov, who also founded Curve Finance, Yield Basis has now begun channeling revenue to its tokenholders. Users have a four-week window to claim over 17 Bitcoin, amassed since the protocol's September debut, valued at nearly $1.6 million as of Friday. This decision to activate the fee switch was unanimously approved by Yield Basis tokenholders on Wednesday. Crypto protocols often issue tokens to reward investors and shift management responsibilities to users. However, there's been a notable lack of engagement, as many decentralized autonomous organizations (DAOs) struggle to reach voting quorums. As a result, protocols are increasingly pressured to ensure their tokens offer more than just voting rights. While some have shared revenue with users for years—Curve did so in 2020—this practice has gained momentum recently. Major DAOs such as Uniswap, Ethena, Aave, and Jito have adopted token buybacks or fee switches to enhance token value, aiming to appease discontented holders. Egorov noted that it's become safer for US-based projects to follow suit recently. As of Friday, Yield Basis has seen Bitcoin deposits exceeding $130 million. The protocol aims to tackle the issue of impermanent loss, a longstanding challenge for decentralized exchanges. Platforms like Curve enable users to trade crypto assets within pools, offering liquidity providers a small share of each transaction. While potentially profitable, providing liquidity can result in opportunity costs during bullish market phases. Impermanent loss refers to the potential gains liquidity providers forgo by not holding their tokens directly. Yield Basis employs a leveraged trading strategy to mitigate impermanent loss within Curve’s Bitcoin-crvUSD pool. Investors in Yield Basis can lock their YB tokens to receive a share of the protocol's revenue. Egorov stated that investors have benefited from trading fees without incurring impermanent loss on their Bitcoin, and the protocol plans to expand to other cryptocurrencies, beginning with Ethereum. Despite the growing popularity of strategies to boost token valuations, such approaches have faced scrutiny. In October, crypto market maker Keyrock highlighted flaws in many buyback programs, which often overspend when prices rise and underspend during downturns, diverting resources from marketing and growth. A March report by Messari found these programs have minimal impact on token prices. In June, Morpho founder Paul Frambot expressed his reluctance to implement a fee switch, questioning the wisdom of distributing revenue at the expense of reinvestment. Egorov, however, countered these criticisms, asserting that reinvesting in growth frequently involves token incentives, which are ineffective if tokens lack value beyond governance. "You will inevitably have the token performing very badly if you don’t have closed-loop economics," he stated. "To close the loop, you must do some form of fee distribution if you want to use token incentives at all."
Bitcoin treasury stocks are becoming “distressed assets” as a $107,000 cost basis traps late entrants underwater
The once-profitable strategy of corporate Bitcoin holdings, often referred to as the "infinite money glitch," has hit a snag. Previously, companies holding Bitcoin enjoyed a significant premium on their stock prices compared to their Net Asset Value (NAV). This allowed these firms to issue overpriced shares to acquire Bitcoin at a lower cost, effectively increasing their Bitcoin reserves per share through financial engineering. The success of this approach hinged on maintaining a consistent equity premium. However, recent Bitcoin price declines have eradicated this premium, according to data from Glassnode. Since mid-November, the price of Bitcoin has fallen below the 0.75 quantile, resulting in over a quarter of its supply sitting at an unrealized loss. The Bitcoin Digital Asset Treasury (DAT) sector, with a market cap of about $68.3 billion, has decreased by 27% in the past month and about 41% over the last three months, as reported by Artemis data. Meanwhile, Bitcoin's price dropped roughly 13% and 16% in the same periods. The "high beta" nature of these equities has manifested primarily on the downside, breaking the mechanism that once supported aggressive share issuance by companies like MicroStrategy and Metaplanet. As these firms now trade near or below 1.0x "mNAV" (market value adjusted for debt), issuing shares to buy Bitcoin is no longer beneficial. For this sector to transition back to being a premium asset class, significant improvements in price, liquidity, and governance are necessary. A significant obstacle lies in the high cost basis of late entrants to the market. A simple rebound in Bitcoin's price won't suffice to revive the issuance engines, as companies' average Bitcoin cost bases are significantly high. According to Artemis data, newer treasury companies are finding themselves in a precarious financial position, with average cost bases exceeding $107,000. Current spot prices, lingering in the low $90,000s, are causing substantial mark-to-market losses. This situation shifts the narrative from being regarded as visionaries managing capital to being seen as distressed holding companies. The leverage, identified by Galaxy as price, issuance, and financial leverage, exacerbates these challenges. For instance, Nakamoto has seen its value plummet by over 38% in a month and more than 83% in three months, behaving more like a struggling small-cap rather than a structural proxy. To restore premiums, Bitcoin must not only recover but maintain levels significantly above these high-water marks, enabling balance sheet repairs to convince investors of the value in "Bitcoin-per-share." Another crucial factor is changing market perceptions of leverage. The collapse in DAT valuations indicates that equity investors are currently wary of "unsecured leverage." Galaxy's analysis portrays the DAT sector as a means for high-beta exposure without engaging in derivatives. However, in the current risk-averse environment, this approach is proving counterproductive. With soft spot ETF flows and low futures open interest, there's limited enthusiasm for additional leverage through equities. CryptoQuant data reveals a drop in average weekly spot and futures volumes, reaching cycle-low liquidity levels. Consequently, market activity has slowed, and investors are taking defensive positions. In this context, institutional investors may prefer holding spot ETFs like BlackRock's IBIT if a DAT trades at 0.9x NAV, due to the ETF's 1.0x exposure, lower fees, and reduced execution risk. For the DAT premium to return, the market needs to shift to a "risk-on" stance, attracting investors to volatility arbitrage opportunities presented by companies like MicroStrategy. Artemis data highlights the current "levered spot" penalty, with MicroStrategy's shares dropping about 30% over the past month, reflecting the market's skepticism about the model's reliability. The era of indiscriminate stock issuance to acquire Bitcoin is over. To rebuild investor confidence, corporate boards must prioritize balance sheet defense over aggressive accumulation. Where the market once rewarded unrestrained acquisition, it now values financial resilience. MicroStrategy's recent move to secure approximately $1.44 billion in cash reserves underscores this shift, aimed at covering financial commitments and strengthening its balance sheet against a prolonged bear market. Finally, the DAT sector must address its concentration risk, with MicroStrategy controlling over 80% of the Bitcoin held by these companies and representing about 72% of the sector's market cap. The sector's fate is closely tied to MicroStrategy's liquidity and its status in market indices. The MSCI's pending decision on whether to exclude "digital asset treasury companies" from major indices is a looming threat. If MicroStrategy remains indexed, passive funds could mechanically boost its premium, lifting the sector. Exclusion, however, could reduce the sector to closed-end funds trading at a discount.
3 Binance Bitcoin charts point to the direction of BTC’s next big move
Bitcoin's short-term trajectory appears closely tied to recent developments in Binance’s order flow and on-chain activities. Key metrics associated with Binance have highlighted increased sell-side pressure, altering liquidity patterns, and a market bracing for potential volatility. Such factors could dictate whether Bitcoin maintains its support level or faces a deeper market correction. One of the primary indicators is the rise in Bitcoin whale deposits to exchanges, which suggests an increased risk of profit-taking. BTC inflows to Binance have reached highs comparable to those in 2025, which historically have preceded extended pullbacks. Additionally, USDT deposits on Binance have soared to yearly peaks, hinting that traders are repositioning in anticipation of possible market fluctuations. The Exchange Whale Ratio has seen a sharp increase, now at 0.47 across all exchanges, signifying that large holders are moving more Bitcoin to trading platforms. This trend is particularly noteworthy on Binance, where the 14-day exponential moving average of the ratio has climbed to 0.427, its highest since April. This pattern typically precedes distribution phases, as large entities often utilize Binance's liquidity to offload substantial amounts. With Bitcoin struggling to break past $93,000, this shift suggests mounting resistance above. Should this trend continue, prices may consolidate or retest support before another breakout attempt. On-chain data reveals that the 30-day simple moving average of Bitcoin inflows to Binance reached 8,915 on November 28, closely aligning with the previous peak of 9,031 observed on March 3. Historically, such inflow peaks, like the one in March, have been followed by significant downward movements. This surge indicates that holders are potentially preparing to reduce risk or cycle out of Bitcoin post-rally. As the market endeavors to maintain a position above the $96,000 resistance, the increasing inventory on Binance presents an immediate challenge. Until this surplus is absorbed, upward momentum may face constraints. The influx of USDT deposits also paints a picture of potential market movements. Binance recorded 946,000 USDT deposit transactions over seven days, surpassing OKX and Bybit. Rising stablecoin inflows typically signal that traders are readying to act, either by aggressively purchasing dips or repositioning during swift market shifts. Given the current context of whale selling and elevated BTC inflows, this uptick likely indicates traders are gearing up for reactive trading rather than passive accumulation. During uncertain times, stablecoin inflows often lead to increased volatility and short-term market adjustments. Should Bitcoin fall below $90,000, this liquidity could hasten a further decline. Conversely, if support remains robust, it might trigger a sharp counter-trend rally. This article provides a market analysis and does not offer investment advice. All investment and trading activities involve risk, and readers should perform their own research before making any financial decisions.
Trouble mounts for Bitcoin treasuries as unrealised losses near $1 billion
Metaplanet's fortunes have dramatically shifted from $600 million in unrealized profits to $530 million in losses. Its strategy, once enjoying a 79% premium, now sees shares trading at a 15.5% discount to Bitcoin's net asset value (NAV). Three major treasury firms now find themselves holding Bitcoin purchased at prices exceeding $100,000, as the cryptocurrency's value hovers around $89,000. These Bitcoin treasury companies are facing significant challenges, with Metaplanet, a key player following Strategy, transitioning from substantial profits in early October to substantial losses by December 1, as reported by Galaxy Research. This downturn is a direct result of Bitcoin's 25% price decline since its peak in October. As Bitcoin continues to trade near $89,000, companies that aggressively acquired the digital asset near its peak are now facing substantial financial difficulties. The once-promising model of digital asset treasury management is showing cracks, as firms that raised capital to invest in Bitcoin at over $100,000 are now grappling with significant unrealized losses, exacerbated by the erosion of their equity premiums. The value of these companies' shares has also taken a hit, with many seeing declines even before Bitcoin's price drop. Metaplanet, which transitioned from a hotel operator to a Bitcoin treasury, faces an average cost of $108,000 per Bitcoin. With Bitcoin currently at $89,000, the company is underwater by nearly $17,000 per coin across its 30,823 Bitcoin holdings. Nakamoto has been particularly affected, holding 5,398 Bitcoin at an average cost of $118,000, translating into unrealized losses exceeding $180 million, alongside a more than 95% plunge in its share price. Meanwhile, Semler Scientific, which holds 5,048 Bitcoin at an average cost of $95,000, is dealing with over $50 million in unrealized losses. Only Strategy remains in a profitable position, with 650,000 Bitcoin at an average cost of $74,436, though its unrealized gains have plummeted from $28.4 billion in July to $6.9 billion. The situation is compounded by collapsing equity premiums. In July, when Bitcoin was near $118,000, treasury companies enjoyed significant premiums over their Bitcoin NAV. Metaplanet traded at 237% of its Bitcoin market-to-net-asset value, and Strategy at a 79% premium. Today, those premiums have either vanished or turned negative. Strategy now trades at a 15.5% discount to its Bitcoin NAV for the first time since its transformation from a software company into a treasury entity. Metaplanet's premium has shrunk to 6% from 237%, while Scientific trades at a 29% discount, and Nakamoto at more than 50%. This compression signals a deep loss of confidence in the treasury model. When Bitcoin was climbing, investors paid premiums with the expectation of continued accumulation and appreciation. Now, with Bitcoin's decline and companies struggling, investors are pricing in financial distress. Moreover, treasuries have curtailed their Bitcoin purchases. November marked the lowest level of Bitcoin acquisitions by these companies this year, according to BitcoinTreasuries.net.
New 'Postal' Game Canceled One Day After Reveal, Following Generative AI Allegations
Fans of the Postal series reacted strongly to the Bullet Paradise trailer, alleging it contained AI-generated artwork, which led to its prompt cancellation. Discord exchanges and a satirical post on X amplified the backlash surrounding this externally developed spinoff. Running With Scissors, the publisher, announced a shift in focus to other projects slated for 2026 after reassessing the situation. This week, Running With Scissors canceled the newly announced game, Postal: Bullet Paradise, just a day after its reveal. The cancellation followed fan backlash over the perceived use of AI-generated artwork in the trailer. Developed by Goonswarm Games, the first-person shooter spinoff faced criticism shortly after Running With Scissors had publicly criticized the use of generative AI in gaming. The publisher expressed that the decision to cancel stemmed from a loss of trust in the development team and emphasized their commitment to transparency with their community, with several projects still underway. "We've been overwhelmed with negative responses from our concerned Postal community," the company stated on X. "The consensus among them is that parts of the game are likely AI-generated, which has severely damaged our brand and reputation." They apologized to those offended during the controversy but clarified that this did not extend to those who issued death threats. The uproar intensified as fans scrutinized the December 3 trailer, pinpointing elements they believed were AI-generated. Last month, Running With Scissors had declared on X that consumers should be informed if a game involved AI in its creation, advocating for games crafted with genuine creativity and talent. The situation escalated when company representatives defended the trailer on X and Discord while using offensive language against critics. As screenshots of these exchanges circulated, Running With Scissors issued another apology for any insults during the heated discussions while maintaining a firm stance against threats. The Postal franchise, known for its dark humor and graphic content, originated in 1997. Its controversial nature has led to bans in several countries due to its violent themes. Following the incident, Running With Scissors announced a focus on upcoming 2026 projects and reiterated that any threats against staff would be taken seriously. The future of Postal: Bullet Paradise remains uncertain, as the situation has sparked renewed debate about the disclosure of AI use in game development. Running With Scissors reaffirmed their dedication to their fans: "Since forming in 1996, we've always considered our fans part of the team. Our priority is to do right by those who support the Postal franchise," they wrote. "We are grateful for the opportunity to make the games we want to play, and will continue to focus on our new projects and updates coming in 2026 and beyond." In response to the backlash, Goonswarm Games announced its closure, stating, "Our project, and everything we built over the past six years, was canceled in just a few days." They refuted the AI allegations and condemned the threats and insults received. The studio's closure reflects the broader industry trend of increased AI adoption by major publishers like Ubisoft, CD Projekt Red, Square Enix, and Activision for various development processes. However, this shift has been met with resistance from players concerned about the impact of AI on artistic consistency and job opportunities for human artists. In 2025, over 3,500 jobs have been cut in the gaming industry, compounding fears that automation will further diminish prospects for artists and early-career developers. Nearly 15,000 jobs were lost in 2024. Goonswarm expressed regret for the artists affected by the ordeal, stating, "We’re truly sorry for the artists who invested their heart into this and supported our studio, only to face false AI accusations."
Tether solvency fears are ‘misplaced’ as company sits on large surplus: CoinShares
This week, renewed concerns emerged regarding the financial stability of Tether, a major stablecoin issuer, following a warning from BitMEX founder Arthur Hayes. Hayes suggested that Tether could encounter significant challenges if the value of its reserve assets were to decline. However, James Butterfill, CoinShares’ head of research, countered these concerns. In a market update on December 5, he stated that worries about Tether’s solvency seem “misplaced.” He highlighted Tether’s latest attestation, which reveals $181 billion in reserves against liabilities of approximately $174.45 billion, resulting in a surplus of nearly $6.8 billion. Butterfill emphasized that while stablecoin risks should not be entirely overlooked, the current data does not point to any systemic vulnerability. Tether remains one of the most lucrative companies in the sector, having generated $10 billion in profits over the first three quarters of the year, a notably high amount on a per-employee basis. Speculation about Tether's financial health is not new, as media scrutiny over its reserves and asset backing has persisted for years. The latest wave of solvency concerns seems to have been triggered by Arthur Hayes, who claimed that Tether is in the early stages of executing a large interest-rate trade. He argued that a 30% decrease in Tether's Bitcoin (BTC) and gold reserves could eliminate its equity and render its USDt (USDT) stablecoin technically “insolvent.” Tether has indeed increased its gold exposure in recent years, making both Bitcoin and gold significant components of its reserves. More criticism has been directed towards Tether beyond Hayes' remarks. CEO Paolo Ardoino recently dismissed S&P Global’s downgrade of USDt’s ability to maintain its US dollar peg, labeling it as “Tether FUD,” which stands for fear, uncertainty, and doubt. Ardoino defended the company by referencing its third-quarter attestation report. S&P Global downgraded the stablecoin due to concerns over stability, pointing to its exposure to “higher-risk” assets like gold, loans, and Bitcoin. Despite these criticisms, Tether’s USDt remains the most prominent stablecoin in the cryptocurrency market, boasting a circulation of $185.5 billion and capturing nearly 59% of the market share, according to CoinMarketCap.
Bitcoin’s end-of-year run to $100K heavily depends on Fed pivot outcomes
The Federal Reserve's shift away from quantitative tightening and the possibility of rate cuts are pivotal in creating liquidity, which diminishes the allure of fixed-income assets. As tech credit risks climb, evidenced by rising costs for Oracle's debt protection, investors are turning toward alternative, scarcer assets such as Bitcoin. Bitcoin (BTC) experienced a 4% drop on Friday, hitting a low of $88,140, and extending its decline to 19% since November. Meanwhile, the S&P 500 is nearing its all-time high, being less than 1% away. This notable divergence could soon narrow with a potential Bitcoin upswing, driven by significant changes in central bank policies and escalating credit stress. Such conditions could push Bitcoin to the crucial $100,000 threshold by the end of the year. The diminishing appeal of fixed-income assets and the tech sector's credit scare are key factors that might boost a Bitcoin rally. Central to this is the Federal Reserve's pivot from quantitative tightening, which involves reducing liquidity by letting Treasury and mortgage-backed securities mature without reinvestment. This program officially ended on December 1. Over the last six months, the Fed's balance sheet shrank by $136 billion, significantly reducing cash flow. The market is eagerly anticipating the next phase, which includes lower interest rates. Data from the CME FedWatch Tool indicates an 87% chance of a rate cut at the December 10 Fed meeting, with three cuts expected by September 2026. Falling interest rates and rising systemic liquidity diminish the attractiveness of fixed-income assets. As the Fed reduces rates, the returns on new bond issuances also decrease, making them less appealing to institutional investors. Currently, US money-market funds have reached a record-high $8 trillion, according to Bloomberg. The structural risks in the equity markets, particularly within the tech sector, further incentivize potential capital rotation. The cost for Oracle's debt protection using Credit Default Swaps has surged to its highest level since 2009, with Oracle holding $105 billion in debt, including leases, as of the end of August. Moreover, Oracle's reliance on significant revenue from OpenAI and its status as the largest non-banking debt issuer in the Bloomberg US Corporate Bond Index highlight growing investor concerns about future supply. The Bank of America reports that steady Fed rates could increase the likelihood of an economic slowdown. Investor apprehension is also heightened by the US Donald Trump administration’s Genesis Mission, which aims to double US scientific productivity through AI and nuclear energy, leading to increased demand for debt protection and significant market unease about debt-fueled spending potentially not yielding sufficient returns. Bank of America strategist Michael Hartnett suggests that if the Fed maintains steady interest rates, the probability of a broader economic slowdown rises. This uncertainty, coupled with a desire for growth less reliant on stimulus, enhances Bitcoin's appeal due to its scarcity, as institutional capital seeks to mitigate risks in traditional tech sectors. The Fed's cessation of its liquidity drain program and the market's anticipation of interest rate cuts present a significant tailwind. With tech credit risks escalating due to substantial AI-related debt, capital is structurally poised to shift toward scarce assets. This convergence provides a clear pathway for Bitcoin to potentially surpass the $100,000 mark in the upcoming months.
Crypto Biz: Mining weakness tests Bitcoin’s market cycle
Bitcoin miners are currently realizing that the "number go up" mantra doesn't always equate to profitability. Despite Bitcoin's prices being high by historical measures, mining profit margins have significantly narrowed. Some experts are labeling this period as the toughest margin environment ever faced by miners. This situation is prompting balance sheets to contract, leverage to be minimized, and initiatives like CleanSpark's move to settle its Bitcoin-backed loans. The pressure is also evident in public markets, with Bitcoin miners and other related trades facing severe downturns, exemplified by the sharp drop in American Bitcoin's stock. Not all sectors within the crypto market are retreating, though. Investment is being funneled into platforms linked to cryptocurrency, as demonstrated by Kalshi's recent success in raising $1 billion, coming on the heels of a tenfold boost in trading volumes since 2024, surpassing Polymarket. Meanwhile, Ether is gaining momentum in derivatives markets, evidenced by CME Group's report that Ether futures have overtaken Bitcoin in volume, signaling increased options volatility and growing trader interest. This week’s Crypto Biz delves into the escalating challenges for Bitcoin miners, the burgeoning Ethereum derivatives market, and Kalshi’s impressive funding achievement. The renewed volatility in the Bitcoin market has ushered miners into what TheMinerMag describes as the "harshest margin environment of all time." This is attributed to persistently low mining revenues due to declining hash prices, escalating operational expenses, and equipment payback periods now exceeding 1,000 days. In response, companies are scaling back financially, with CleanSpark opting to pay off its Bitcoin-backed credit line with Coinbase as a means to mitigate financial exposure. Bitcoin mining stocks continue to be volatile in 2025 as they adapt to the revenue shock from the previous year’s Bitcoin halving, which halved mining rewards. Concurrently, many miners are shifting towards AI and high-performance computing tasks to secure more stable and predictable income streams beyond Bitcoin mining. Shares of American Bitcoin, linked to Eric Trump, plummeted over 50% in a single session recently, highlighting the ongoing volatility impacting crypto-related stocks. The stock's value halved shortly after markets opened on Tuesday, extending a broader sell-off among Bitcoin mining equities and other crypto-related trades, which has intensified since Bitcoin's decline from its October peak. American Bitcoin shares have fallen over 75% from their post-listing peak of $9.31, achieved shortly after going public via a reverse merger with Gryphon Mining. This dramatic drop highlights increasing investor skepticism towards speculative crypto equities amid declining Bitcoin prices and challenging mining economics. Kalshi has secured $1 billion at an $11-billion valuation, indicating a renewed investor interest in event-based trading. The Series E funding round, following Kalshi's record month for trading activity, was led by the crypto-focused venture firm Paradigm, with contributions from Andreessen Horowitz, Sequoia Capital, and ARK Invest. Kalshi's trading volume hit $4.54 billion in November, surpassing its previous peak, with industry data showing its trading activity has grown tenfold since 2024, overtaking competitors like Polymarket to become the leading prediction market by volume. The CME Group has noted a significant increase in Ether futures trading, with volumes surpassing those for Bitcoin options, potentially signaling a catch-up trade or the onset of a broader Ether "super-cycle." CME executive Priyanka Jain mentioned that ETH options currently exhibit higher volatility than Bitcoin options, attracting more speculative and hedging activities. “This heightened volatility has served as a powerful magnet for traders, directly accelerating participation in CME Group’s Ether futures,” Jain remarked. “Is this Ether’s long-awaited super-cycle, or merely a catch-up trade driven by short-term volatility?” Earlier this week, the CME Group introduced a new Bitcoin Volatility Index along with additional cryptocurrency benchmarks, offering traders standardized pricing and volatility reference data.
Meta shares climb on report of possible 30% metaverse budget cut
Meta Platforms is reportedly considering a significant reduction in its metaverse budget, potentially cutting up to 30% of its spending in this area. The company is contemplating reallocating these funds towards the development of virtual reality glasses and advancements in artificial intelligence. While no definitive decisions have been reached, the possibility of budget cuts and layoffs looms over Meta’s Reality Labs division, particularly targeting its virtual reality segment, which currently consumes a large portion of the metaverse budget. According to reports from Bloomberg and The New York Times, these cuts could be implemented as soon as January, with a focus on shifting resources to a Reality Labs team that is working on augmented reality glasses. The market responded favorably to this news, as Meta's stock (META) initially surged by over 5% upon market opening on Thursday. The shares eventually stabilized at around $661, marking a 3.4% increase for the day. This response reflects investor optimism about the strategic redirection. Meta, which rebranded from Facebook in 2021 with a vision to create a metaverse, has invested heavily in virtual reality research and development. However, interest in this technology has waned as the tech industry shifts its focus towards artificial intelligence. The competition in the metaverse arena has cooled, prompting Meta to reconsider its virtual reality investments as part of its budget planning for 2026. Initial expectations of a competitive surge in this technology have not materialized as anticipated. In 2021, companies like Apple and Google were aggressively developing virtual reality devices but have since decelerated their efforts, leading Meta executives to feel less urgency to advance rapidly. Despite this shift, other companies continue to explore the metaverse. For instance, the AI startup Infinite Reality acquired Napster in March, with intentions to integrate a music-oriented metaverse. Additionally, DTTM Operations, owned by Donald Trump, applied for trademarks in February related to a metaverse and NFT marketplace centered on the former president's brand. Although Meta seems to be stepping back from its metaverse ambitions, CEO Mark Zuckerberg announced via his Threads platform that the company is establishing a new creative studio within Reality Labs. This studio will concentrate on "design, fashion, and technology," particularly in the realm of AI glasses and related devices. "We’re entering a new era where AI glasses and other devices will change how we connect with technology and each other," Zuckerberg stated, emphasizing the importance of creating experiences that are intuitive and centered around users. The potential of these technologies is vast, and Meta aims to ensure that interactions are purposeful and user-focused through its new studio initiative.
Bitcoin is quietly becoming the ultimate expert witness, forcing judges to accept a new standard of truth
In the year 2075, the courtroom landscape has transformed dramatically. Instead of traditional deeds, judges now request transaction IDs to resolve property disputes. This scenario captures a shift in how monetary networks are perceived—not just as financial instruments but as a definitive record of ownership across time. Currently, legal systems rely on established tools like registries and testimonies to trace ownership. These systems, however, are vulnerable to events like fires, wars, and corruption, which can create significant gaps and disputes. With billions lacking formal proof of land rights, as noted by the World Bank, and public records often tainted by corruption, according to Transparency International, legal systems are burdened with inefficiencies. Enter Bitcoin, which offers an alternative by creating a decentralized, immutable history of transactions. Every ten minutes, Bitcoin miners validate a block of transactions through proof-of-work, linking one block to the next, creating a robust and tamper-resistant chain of records. This timechain acts as a public ledger that is difficult to alter without considerable effort, providing a reliable chronological account of events. Within this ledger, the UTXO (Unspent Transaction Output) model defines ownership of Bitcoin, tracking the movement of coins and potentially representing other assets through mechanisms like colored coins or inscriptions. However, Bitcoin's ledger only confirms that transactions were valid at the time they were recorded, without insight into the circumstances surrounding them, such as coercion or loss of keys. Thus, while Bitcoin entries can serve as evidence, they do not automatically prove rightful ownership; they must be contextualized with other evidence. Despite this limitation, Bitcoin is increasingly being used in legal disputes, with courts in the U.S. and other jurisdictions accepting blockchain records as credible evidence. Cases involving Silk Road, ransomware, and exchange failures have utilized blockchain analysis to trace and verify transactions, with judges relying on expert testimony to interpret these digital records. Several jurisdictions have begun to recognize blockchain records in various capacities. For example, Vermont and Arizona have laws granting blockchain records a presumption of authenticity, while China allows blockchain entries as evidence under certain conditions in its internet courts. These developments illustrate a gradual acceptance of blockchain technology within legal frameworks. The potential for Bitcoin to serve as a default record is driven by its convenience and reliability compared to traditional methods, especially in cross-border scenarios where local registries may be inconsistent or unreliable. For example, real estate portfolios spanning multiple countries could use Bitcoin to anchor ownership records, providing a verifiable and persistent evidence trail. This principle already applies to documents, with services like OpenTimestamps allowing users to embed file hashes in Bitcoin transactions, creating an indelible record of their existence. Transitioning from using Bitcoin as a timestamp mechanism to a title registry involves more complexity. Property law requires public notice and state enforcement, meaning that even if deeds were mirrored on Bitcoin, legal frameworks would need to reconcile differences between blockchain records and traditional registries. Nonetheless, in regions where official records are unreliable or compromised, Bitcoin's ledger could become the preferred reference, particularly if international courts start accepting it as a credible source of historical ownership. Corporations already use blockchain to enhance transparency and security in their internal processes. For instance, anchoring logs to Bitcoin can deter fraud by making it difficult to alter historical records without detection. As regulators grow more accustomed to blockchain anchors, they may begin treating them as standard evidence in enforcement actions. A global evidence ledger would offer advantages and challenges. While it provides resilience against censorship and data loss, it also raises privacy concerns, as it creates a permanent, publicly accessible record of transactions. Legal systems will need to adapt by developing remedies that operate within this unchangeable framework, such as ordering specific outputs to be treated as invalid or granting damages instead of altering the ledger. Bitcoin's immutability is a combination of code and community consensus, as demonstrated by past instances where the network corrected errors or resolved splits. Future forks could present challenges for legal systems in determining which chain is authoritative. Legal frameworks may need to establish criteria for recognizing evidence from blockchains, considering factors like hash rate or node count. As Bitcoin becomes more integrated into legal systems, courts are likely to treat it as just another piece of evidence, one that must be corroborated by additional proof. The turning point will come when legal professionals routinely check blockchain records as part of their due diligence, recognizing its reliability and permanence as a factual substrate. Ultimately, Bitcoin’s role as an "expert witness" will be solidified not through groundbreaking legal rulings but through its gradual acceptance as a dependable, institutional record in an increasingly digital world.
Stablecoin Adoption Could Stifle Central Bank Control, IMF Warns
The International Monetary Fund (IMF) has raised concerns that stablecoins might undermine the effectiveness of monetary policy in some countries. The organization highlighted the potential of stablecoins to "penetrate an economy" quickly. Most stablecoins currently are pegged to the U.S. dollar. In a comprehensive report, the IMF discussed how stablecoins could expand access to financial services, posing a challenge to central banks. The report detailed "currency substitution" as a risk, indicating that stablecoins might gradually weaken the financial independence of nations. Traditionally, to access U.S. dollars, one would need physical cash or a specific bank account. However, stablecoins can rapidly enter an economy through digital means like the internet and smartphones. The IMF warned that stablecoins denominated in foreign currencies, especially in cross-border transactions, could lead to currency substitution and threaten monetary sovereignty, particularly with the use of unhosted wallets. A substantial shift of economic activity away from a country's currency could limit a central bank's control over liquidity and interest rates. If stablecoins tied to foreign currencies become ingrained in payment systems, locally developed options like central bank digital currencies (CBDCs) might struggle to compete. Unlike stablecoins, CBDCs are digital forms of sovereign currency issued and regulated by central banks. The IMF observed that stablecoin holdings are increasing in regions such as Africa, the Middle East, Latin America, and the Caribbean, affecting foreign exchange deposits that central banks use to steer monetary policy. However, it acknowledged that currency substitution often stems from a need for stability in countries with high inflation. Currently, stablecoins in U.S. dollars make up 97% of the $311 billion market, according to CoinGecko, while those in euros and Japanese yen are significantly less. To protect monetary sovereignty, the IMF suggests countries establish frameworks to prevent digital assets from being recognized as official currencies or legal tender, thereby preventing their mandatory acceptance for payments. In a related development, the European Central Bank (ECB) in November warned of the risks associated with dollar-denominated stablecoins, including their potential to deplete key banking resources. The ECB noted that significant growth in stablecoins could lead to a reduction in retail deposits, an essential funding source for banks, resulting in more volatile funding. Despite these concerns, U.S. Treasury Secretary Scott Bessent emphasized the benefits of increased demand for government debt, following the passage of stablecoin legislation in the United States earlier this year. He remarked that this demand could reduce government borrowing costs and help manage the national debt. Additionally, it could introduce millions globally to the dollar-based digital asset economy.
Thursday links: Prediction markets, agent hackers, quantum risks
The concept of betting on everything can be traced back to 1985 when Caesars Palace placed 20-1 odds on William "Refrigerator" Perry scoring a touchdown in the Super Bowl. Remarkably, Perry did score, and Caesars faced a loss of at least $250,000—a significant amount, considering bets had to be placed via a phone call to Las Vegas at the time. This marked the inception of the "proposition" bet, a type of wager on events other than the game's score or outcome, effectively laying the groundwork for today's expansive prediction markets. Despite the financial hit, Caesars' president regarded it as their best bet due to the enormous publicity it generated. Bookmakers like Jimmy Vaccaro noted the immediate interest from all over, as phone lines buzzed with inquiries following Perry's touchdown. Today, sportsbooks handle more bets on propositions—ranging from the outcome of a coin toss to potential wardrobe malfunctions—than on the games themselves. Previously, Super Bowl bets were limited to basic outcomes, but now, there are hundreds of options. Although Perry's career saw only three touchdowns, his influence on the betting landscape was profound, paving the way for modern betting on nearly any conceivable event through prediction markets, which still predominantly focus on sports. In the realm of political prediction markets, Andy Hall, a political science professor at Stanford, highlights their evolution and impact. He observes that these markets often react to events before they appear on television, demonstrating their predictive capabilities. Hall believes that prediction markets could offer a clearer understanding of complex political environments but warns about the feedback loops they create. For instance, unverified social media claims in a Virginia Attorney General race influenced prediction markets, which then fed back into social media as breaking news, further impacting the markets. The implications of prediction markets extend to redefining what it means to "win" an election. Hall questions the potential outcomes if platforms like Kalshi make predictions on closely contested elections, underscoring the complexity involved. The influence of prediction markets on reality is further illustrated by how bettors' activities affect geopolitical maps, such as those of the Ukrainian frontline. AI agents have shown remarkable proficiency in exploiting smart contracts, as demonstrated by researchers at Anthropic. Their AI agents managed to identify vulnerabilities in 56% of known problematic smart contracts and discovered two new zero-day exploits in previously unexamined contracts. Alarmingly, the agents' efficiency is improving rapidly, with their exploit revenue doubling roughly every 1.3 months. These tests, conducted on blockchain simulators, highlight the potential for AI to autonomously discover vulnerabilities in any code, not just smart contracts. The cost of scanning contracts for vulnerabilities is minimal, suggesting that more AI agents could be deployed as costs decrease, posing a significant cybersecurity challenge. Quantum computers are anticipated to pose unique threats to cryptocurrencies, a concern often overshadowed by broader technological risks. Stefano Gogioso from Epicenter explains that while classical cryptography has prepared for quantum advancements, the decentralized nature of cryptocurrencies and their unique cryptographic applications render them particularly vulnerable. Even with potential solutions, the decentralized structure of the crypto ecosystem complicates any infrastructural changes. Gogioso warns that quantum computers could decrypt entire blockchain transaction histories, compromising privacy-focused chains like Monero. He anticipates governments will utilize quantum technology to identify tax evasion in cryptocurrency transactions. Additionally, Gogioso envisions scenarios where quantum technology could facilitate a form of digital currency that addresses crypto's double-spend problem without relying on its distributed consensus model. Despite the risks associated with quantum computing, the response from the crypto sector has been inadequate. John Lilic argues that with the crypto market's $3 trillion valuation, a substantial investment is necessary to develop quantum-resistant solutions. However, current efforts fall short of this need.
Chainlink’s $64M Grayscale ETF debut hides private banking loophole threatening to sever link between usage and price
Grayscale's transition from its legacy Chainlink trust to the GLNK exchange-traded product on December 2nd marked more than just a new listing on the NYSE Arca. With about $13 million in initial trading volume, $41 million in immediate inflows, and assets escalating to around $64 million within the first two days, GLNK made its market debut distinct from the speculative alt-coin offerings seen in prior cycles. Unlike those, GLNK emerged as the first U.S. financial product offering direct exposure to the Oracle infrastructure layer, which serves as essential digital plumbing for making blockchain networks applicable to real-world finance. However, beneath these promising figures lies a complex financial strategy. By transforming a utility token into a regulated equity product, Grayscale poses a challenging question to institutional investors: Will the growth of tokenized finance necessarily lead to an increase in the LINK token's value? Structured under NYSE Arca Rule 8.201-E as a physically backed commodity product, GLNK holds LINK as its sole asset. It launched with a temporary 0% fee, a common initial strategy for ETFs launched this year, transitioning to a 0.35% fee by early March or upon reaching $1 billion in assets. This aggressive pricing, much lower than the traditional trusts that often charge over 2%, is designed to attract allocators who view blockchain as more of a technological upgrade for global markets than a speculative venture. The GLNK's introduction coincides with the growing priority of tokenization in corporate strategies. A recent column by BlackRock’s Larry Fink and Rob Goldstein in The Economist heralded tokenized settlement as the next market infrastructure evolution. This sentiment aligns with projections from BCG and ADDX, estimating the tokenized private asset market to reach nearly $16 trillion by 2030, and Citi's revised forecast of up to $1.9 trillion in stablecoin circulation by that time. In this macroeconomic setting, GLNK presents itself as a strategic play on the integration of financial data into public networks, rather than a simple cryptocurrency gamble. Zach Pandl, Grayscale’s head of research, commented, “I believe Chainlink will make the tokenization vision a reality.” Chainlink's network, reportedly securing over $100 billion in total value and holding a dominant 70% market share in decentralized finance (DeFi), stands to benefit theoretically from this migration. Financial institutions are currently employing Oracle blockchain’s Cross-Chain Interoperability Protocol (CCIP) to transfer value between private bank ledgers and public blockchains. Yet, a disconnect remains between the technology's adoption and the token’s economic value, as sophisticated investors remain cautious of the "velocity problem." While banks might utilize Chainlink’s infrastructure for data certification or proof-of-reserves, they may not necessarily hold LINK on their balance sheets. If transaction fees are paid in fiat or if the token is immediately burned for service, the rapid token movement might suppress price growth even as usage expands. Moreover, private innovation poses a significant challenge. For instance, JPMorgan’s Onyx and other proprietary bank chains might develop internal Oracle solutions, bypassing public middleware entirely. Thus, GLNK's market flows represent not just enthusiasm for crypto but also a metric of investor confidence that public, decentralized middleware could become the standard over private, exclusive solutions. For Registered Investment Advisors (RIAs) and multi-asset managers, engaging with this infrastructure thesis has historically been operationally challenging. These firms have typically avoided on-chain crypto interactions and private key management due to the complexities of the emerging industry. GLNK addresses this access issue. With Coinbase Custody offering segregated, auditable cold storage and NYSE Arca ensuring daily liquidity, the product facilitates an on-chain thesis into a broker-dealer-compatible entity. However, this ease comes with a "cost of carry" that defines the product's risk profile. Unlike Ethereum or Solana, where the native asset yields returns through staking, GLNK does not currently pass staking rewards to investors. In the crypto market, LINK holders can stake their tokens to secure the network and earn a return, providing a hedge against inflation. Within the ETF framework, that yield is omitted. In a macroeconomic environment where the risk-free rate remains significant, holding a non-yielding asset that incurs a management fee (eventually 0.35%) imposes a performance drag. Investors essentially pay a premium for regulatory security. This dynamic is akin to the early days of gold ETFs, where investors accepted storage costs for accessibility, but it places a greater burden on the asset's capital appreciation. For GLNK to be a viable portfolio component, the LINK token's appreciation must surpass not only the management fee but also the opportunity cost of holding yielding treasuries or staking-enabled crypto assets. The regulatory framework supporting GLNK might be its most enduring attribute. Utilizing NYSE Arca Rule 8.201-E, typically reserved for physically backed commodity ETPs, provides a consistency that market makers prefer. It simplifies the creation and redemption process, allowing authorized participants to hedge their books efficiently and maintain narrow spreads. This structure also clarifies the competitive landscape. Other oracle networks, like the Solana-based Pyth, might offer similar technological utility but lack the regulated access Chainlink now possesses. By overcoming regulatory hurdles first, Grayscale has established a competitive edge. For institutional allocators, the difference between "technologically superior" and "regulatorily accessible" often dictates investment decisions. Despite these structural challenges, the early market response indicates a desire for thematic diversification. Industry stakeholders described the initial trading volume as robust for a single-asset launch, noting that on a market-cap-adjusted basis, GLNK outperformed several other 2025 alt-coin listings. This contrasts with the muted debut of the Dogecoin ETP, highlighting an emerging institutional preference: capital is moving toward infrastructure associated with tangible economic integrations rather than tokens driven by retail sentiment or meme dynamics. Considering this, CryptoSlate's analysis, based on comparable thematic ETF launches, anticipates a base-case scenario where GLNK's assets under management (AUM) reach between $150 million and $300 million by mid-2026. This projection assumes a "spillover rate" where a small portion of capital allocated to Bitcoin and Ethereum products shifts into high-conviction infrastructure investments during quarterly rebalancing cycles. A bull case, potentially reaching $400 million to $600 million, depends on a successful narrative transformation. This would require significant announcements from major financial institutions moving from CCIP pilots to full commercial production using the LINK token. Conversely, a bear scenario of $75 million to $125 million remains plausible if the "private chain" thesis gains traction or if diversified multi-asset crypto indices begin absorbing demand for oracle exposure, diminishing the appeal of single-asset products.
Ripple CEO Brad Garlinghouse Expects Bitcoin to Hit $180K Next Year
Ripple's CEO, Brad Garlinghouse, has made a bold forecast, projecting that Bitcoin will reach $180,000 by the end of 2026. Speaking at Binance Blockchain Week during a panel focused on the future of cryptocurrency, Garlinghouse highlighted the importance of regulatory advancements, particularly in the U.S., as a key driver for the crypto market's growth. He pointed to the CLARITY Act, a proposed market structure bill, as a potential catalyst for positive change, though he acknowledged its passage is unlikely this year. However, he remains optimistic that legislative progress could occur in the first half of the next year, providing a boost to the industry. Despite his confident outlook, the chances of the Senate Banking Committee approving this bill by 2026 are considered slim, with Myriad—a prediction market by Decrypt’s parent company, Dastan—assigning only a 25% probability of its passage within the timeframe mentioned. On the same panel, Solana Foundation President Lily Liu and Binance CEO Richard Teng shared more conservative views, with Liu predicting Bitcoin's price to exceed $100,000 by the end of next year, and Teng simply anticipating a stronger market. Garlinghouse's prediction comes amid a backdrop of other notable forecasts. Tom Lee of BitMine Immersion Technologies had previously estimated Bitcoin's price could reach between $150,000 and $200,000 by year-end but has recently tempered his expectations to "maybe" $150,000. Meanwhile, Michael Saylor of Strategy Executive remains steadfast in his $150,000 year-end prediction, even after the market saw an unprecedented $19 billion liquidation in early October. Saylor's long-term vision includes Bitcoin reaching $1 million within the next four to eight years and $20 million in the next two decades. Similarly, tech investor Cathie Wood has adjusted her 2030 forecast from $1.5 million to $1.2 million per Bitcoin, citing the rapid expansion of stablecoins. Bitcoin's price has shown resilience, rising about 1% over the past week to trade at $92,417. Myriad's predictors have turned more bullish, now predominantly expecting a surge to $100,000 before any potential drop to $69,000. Currently, Bitcoin remains 27% below its all-time high, needing a 95% increase to surpass its previous peak of over $126,000 and reach Garlinghouse's anticipated level.
Myriad Moves: Bitcoin and Ethereum Recovery Odds Rise as Traders Flip Bullish
The sentiment among market predictors has turned optimistic again for Bitcoin and Ethereum, with a notable lean towards Bitcoin reaching $100,000 rather than experiencing a significant decline. Similarly, Ethereum is expected to climb to $4,000 before potentially dropping to $2,500. Additionally, predictors consider a massive liquidation event of $2 billion or more unlikely before the year concludes. Bitcoin and Ethereum have both posted slight gains over the past week, regaining pivotal levels at $90,000 and $3,000, respectively. These movements have been sufficient to encourage a bullish outlook for their future trajectories, despite the improbability of new all-time highs within the current year. However, die-hard optimists might still hold a different view. We will explore the prospects for BTC and ETH's next potential moves and the chances of a major liquidation event occurring. Bitcoin's recent performance has reignited optimism among Myriad market predictors. The cryptocurrency has experienced a 1.1% increase over the past week and a 6.9% rise in the past two weeks, reclaiming the $92,000 mark, with current trading at $92,522. This recovery, exceeding 10% from late November lows, has shifted the odds to a 75% chance of Bitcoin reaching $100,000 before it potentially falls to $69,000. This represents a 27% increase in confidence since the beginning of the week when the sentiment favored a drop to $69,000. Despite the recent uptick, Bitcoin remains 8% lower over the month, distancing itself from previous all-time highs and optimistic year-end predictions of $150,000. Analysts suggest that a December rate cut is highly likely, offering a short-term catalyst that could propel BTC back to the $100,000 level. Savvy investors could achieve around a 25% gain on their predictions if they anticipate this outcome, compared to holding Bitcoin spot, which could yield approximately 8%. Ethereum, meanwhile, has outpaced Bitcoin over the past week, rising by 3.6% compared to Bitcoin's 1% increase. This performance has led to a shift in Myriad’s market sentiment, leaning slightly bullish towards Ethereum's potential rise rather than a decline to $2,500. Despite technical analyses painting a bearish picture, Ethereum is currently trading at $3,140, about 27% shy of the $4,000 mark. The odds of Ethereum reaching $4,000 have nearly doubled from 26.7% to 50.8% since Monday. Recent developments could provide momentum for Ethereum, following its Fusaka upgrade, which enhances network speed and scalability. Furthermore, significant Ethereum holders, or whales, have been active, with one particular wallet adding approximately $55 million worth of Ethereum. Additionally, BitMine Immersion Technologies, the largest publicly traded holder of Ethereum, continues to increase its holdings, acquiring over $265 million last week as part of its strategy to secure 5% of the circulating supply. The potential rate cuts next week could further boost Ethereum and other risk assets. As for the possibility of a $2 billion crypto liquidation day before the end of December, a new market on Myriad suggests it is unlikely, with a 69% probability of "no" based on limited trading volumes. This means a "no" trader could gain around 31% if such a significant liquidation does not occur. Historically, only 14 days have witnessed liquidations surpassing the $2 billion threshold, with 12 of those days occurring in 2021. Liquidations can affect both sides of the market, impacting bets on both rising and falling asset prices. For instance, as of today, 53% of the $346 million in liquidations are attributed to long positions, or those betting on price increases. Two of the largest liquidation events occurred this year, including the record-breaking one on October 10. The question remains whether another major event will transpire before the year concludes. Such events typically follow significant price volatility in either direction.
Hua Xia state-linked Chinese bank tokenizes $600M in yuan bonds
Hua Xia Bank, a publicly traded financial institution affiliated with the Chinese government, has issued tokenized bonds worth 4.5 billion yuan, equivalent to $600 million. This move, announced on Wednesday, seeks to streamline the bond auction process by reducing reliance on intermediaries. According to Sina, the bonds were issued by Hua Xia Financial Leasing, a subsidiary of Hua Xia Bank, which is a state-controlled commercial bank in China. These bonds are set to offer a fixed three-year yield of 1.84%. The $600 million bond tranche was made available exclusively to holders of China’s digital renminbi, also known as the digital yuan. Tokenized bonds have the potential to minimize the number of intermediaries necessary for transaction clearing, thereby reducing settlement times and transaction costs. China's stance on digital finance has been dynamic, particularly concerning stablecoins and cryptocurrencies. In 2025, the country opted to focus on developing a central bank digital currency (CBDC) and utilizing permissioned blockchain technology rather than engaging with stablecoins and cryptocurrencies, which have become significant on a global scale. Earlier this year, China's approach to cryptocurrencies and stablecoins has been inconsistent. The government has alternated between implementing bans and easing regulations to allow private sector participation in the digital asset space. In early August, authorities clamped down on local brokers and financial firms that were organizing seminars on stablecoins. These entities were directed to cancel their events and cease publishing any related research, with regulators expressing concerns that stablecoins might facilitate fraudulent activities. However, just a couple of weeks later, there were indications that China might legalize privately-issued yuan stablecoins to enhance the currency's role in international markets. Chinese tech giants like Alibaba, Ant Group, and JD.com viewed this as an opportunity to develop yuan-pegged tokens. Nonetheless, an official warning from Beijing in October regarding private stablecoins caused these plans to be shelved. In September, the People’s Bank of China established a dedicated operations center for the digital yuan in Shanghai, aimed at overseeing cross-border settlements and fostering other blockchain initiatives.
Former Binance.US CEO launches stablecoin platform ahead of L1 network
1Money, a company co-founded by the former head of Binance.US, has unveiled a stablecoin management platform as part of its ambitions to establish a layer-1 blockchain aimed at facilitating payments. Announced on Thursday, the 1Money platform will operate without platform fees, instead implementing a model based on usage fees for transactions involving both stablecoins and traditional currencies. The company stated that this approach will extend to 1Money’s planned layer-1 network for stablecoin transactions, which promises no gas fees. "For too long, outdated stablecoin service providers have hampered the ecosystem with excessively high monthly fees and inflated charges. 1Money is putting an end to that," said Brian Shroder, co-founder and CEO of 1Money and former CEO of Binance.US. Shroder served as the CEO of Binance.US—an independent entity from the global crypto exchange—from 2021 to 2023. He went on to launch 1Money in 2024, announcing a seed funding round of $20 million in January 2025. This announcement follows 1Money’s recent acquisition of 34 money transmitter licenses across the United States, reported three months ago. As part of its offerings, the orchestration platform will deliver "regulated custody" for stablecoins alongside necessary infrastructure. The adoption of stablecoins is gaining momentum, coinciding with regulatory advancements in the US and European Union. Shroder's announcement comes as numerous fintech firms have declared their intentions in the stablecoin market. Earlier this week, payments provider Unlimit revealed a new non-custodial platform for stablecoins. Additionally, Visa and Mastercard, two leading payments companies for fiat currencies, introduced support for stablecoins in October and November, respectively. In a related development, Ripple Labs announced in August that it would begin offering stablecoin payment services following its $200 million acquisition of Rail. The company launched its RLUSD stablecoin in 2024.
Solana and Ethereum Network Base Are Now Connected Thanks to Coinbase and Chainlink
Cryptocurrency enthusiasts now have the ability to effortlessly transfer assets between the Coinbase layer-2 network, Base, and Solana, thanks to a newly established bridge. This connection is fortified by Chainlink's Cross-Chain Interoperability Protocol in conjunction with Coinbase, and it is currently active on the Base mainnet. The integration has been implemented through prominent applications such as Zora and Aerodrome. The Base network, which operates on Ethereum's layer-2, is now equipped to handle SOL and other assets originating from Solana, courtesy of this newly formed bridge. By utilizing Chainlink’s CCIP and Coinbase's infrastructure, users can now efficiently transfer their assets between the Base and Solana platforms. According to a blog post from the team behind the Coinbase-initiated network, their objective has always been to foster a globally interconnected economy, emphasizing the importance of being a bridge rather than an isolated entity. The blog post further elaborates on the necessity of simplifying asset transfers, enabling people to discover new applications regardless of the blockchain they are developed on, and unlocking value wherever it may be found. The bridge facilitates asset migration and trading from both ecosystems and is already operational in key Base services like Zora, a token launchpad, and Aerodrome, the network's most extensive decentralized exchange. Aerodrome has announced that any Solana token can now be deployed and traded seamlessly on their platform. Users can bridge SPL tokens, deploy liquidity, and integrate into the Base ecosystem in a matter of seconds, broadening the reach of Solana assets to the Base network. Moreover, the open-source bridge can be adopted by other applications, enabling users to trade assets irrespective of whether they are on Solana or Base. The Base team describes this development as a significant milestone towards their vision of establishing Base as a central hub for a comprehensive economy, accommodating every asset across all networks, with Solana being just the start. Launched in 2023, Base has rapidly ascended to become the fifth-largest blockchain by bridged total value locked (TVL), a metric assessing the cumulative value of tokens on a blockchain. Recent data from DefiLlama indicates that Base has experienced a nearly 5% increase in TVL over the past week, reaching $14.89 billion, while Solana's TVL stands at $29.4 billion. In September, Jesse Pollak, a Coinbase executive and head of Base, addressed long-standing speculation regarding the potential launch of a Base token. Although there are no definitive plans, Pollak confirmed that the company is indeed considering the possibility of introducing such a token in the future.
Binance names co-founder Yi He co-CEO alongside Richard Teng
Binance has announced the elevation of co-founder Yi He to the position of co-CEO, placing her alongside Richard Teng in a formal leadership capacity. This development was shared during Binance Blockchain Week, where Teng emphasized Yi He's significant contributions to the company since its inception. He described her new role as a "natural progression," acknowledging her vital role in the executive leadership team. Prior to her co-CEO appointment, Yi He served as Binance's chief marketing officer, where she was pivotal in expanding the platform's community and spearheading product innovations. Yi He expressed that sharing the CEO responsibilities with Teng would leverage their diverse experiences. Teng, with his background in regulated financial markets, complements Yi He, a crypto native who played a foundational role in creating Binance and Okcoin, now known as OKX. Richard Teng took on the CEO role at Binance in late November 2023, following the resignation of co-founder Changpeng "CZ" Zhao, who stepped down amid legal issues with the US Department of Justice. Before his current role, Teng was responsible for overseeing Binance's regional markets outside the United States.
Crypto treasuries lead stock recovery after shaky start to December
Digital asset treasuries (DATs) are at the forefront of a crypto stock resurgence as markets recover from a significant leverage flush that marked the beginning of the month. Notably, Ether DATs experienced a robust recovery on Tuesday, with EthZilla (ETHZ), listed on Nasdaq, climbing 12.35% to reach $10.80 in after-hours trading, as per Google Finance. BitMine, which holds the largest Ether (ETH) treasury globally and has reportedly been purchasing during the dip this week, witnessed a substantial 10.26% increase in stock value on Tuesday. BitMine's shares soared to $32.40 in after-hours trading, marking an impressive rise of over 650% since the company announced its Ether strategy in late June. The standout performer in the crypto stock arena was Thumzup Media Corp (TZUP), a mining and crypto investment firm, which saw a 13.25% rise on the Nasdaq. On Tuesday, Crypto DAT stocks showed strong performance. In contrast, Bitcoin (BTC) DAT stocks were slower to recover, with several listed altcoin treasury companies outperforming them as the crypto markets rebounded. GD Culture Group (GDC), a virtual content production company and TRUMP memecoin treasury, experienced an 11.4% increase in its stock. Meanwhile, Solana (SOL) treasury (HSDT) recorded a 9.36% gain, and Sui Group Holdings (SUIG) rose by 7.7%. The largest crypto treasury globally, managed by Michael Saylor’s Strategy (MSTR), saw a moderate 5.78% gain, with share prices peaking at $188 during Tuesday's trading. Strategy stock has declined by 37.4% since the start of the year, largely due to losses incurred following the crypto market reversal in mid-October. BitMine has reportedly continued to buy Ether during the dip this week, acquiring an additional 7,080 ETH valued at $19.8 million on Monday and 18,345 ETH worth approximately $55 million on Tuesday, according to Lookonchain and Arkham Intelligence. However, these transactions have not been officially verified by the company. On Wednesday morning, Ether prices rebounded, reaching a five-day peak of $3,060 in early trading.
Gunmen Steal $85,800 in Trinidad Crypto Ambush as Attacks on Holders Rise
In a recent incident in Trinidad, a man was ambushed by two armed individuals and robbed of $85,800 in cash during a face-to-face cryptocurrency transaction on November 29. The assailants made off with the money and both men's mobile phones, using a getaway vehicle to escape, according to a local news source. An expert informed Decrypt that "wrench attacks" and similar violent incidents are now happening about once a week globally. The robbery took place in a parking lot on Trincity Central Road, where the targeted individual, a resident of Arouca, was waiting in his car. He was preparing to buy cryptocurrency with the cash he passed to his associate of two years from Belmont. Almost immediately after the handover, two masked individuals wielding firearms appeared at the car windows, demanding the cash and other valuables. After seizing the money and phones, they fled the scene. The local police are currently investigating the crime, and Decrypt has reached out to the Trinidad and Tobago Police Service for additional information. Jameson Lopp, a co-founder and chief security officer at the self-custody platform Casa, has compiled data on such incidents, noting over 60 wrench attacks this year alone. In a recent San Francisco case, a person disguised as a delivery driver restrained a homeowner with duct tape at gunpoint, forcing him to relinquish access to a crypto wallet, his phone, and his laptop, resulting in an $11 million loss. Last month, an especially tragic incident occurred when Russian crypto entrepreneur Roman Novak and his wife were murdered in the UAE after being coerced by supposed investors to unlock their digital wallets. Cybercrime consultant David Sehyeon Baek emphasized that what often starts as digital threats is increasingly turning into physical violence. He stated that wrench attacks now happen globally at a rate of nearly one per week. Baek explained that perpetrators are using blockchain analytics and AI-driven methods to track victims' movements and cash-out patterns in real time. He warned that these are not random acts but are deliberate, data-driven assaults. Baek urged the community to take online threats seriously, as the line between digital and physical danger is becoming alarmingly thin.
BlackRock’s top brass says tokenization will bridge crypto and finance
Once skeptical of cryptocurrencies, BlackRock's CEO Larry Fink, alongside COO Rob Goldstein, now advocate for tokenization as a crucial link between the crypto industry and traditional finance. In a joint piece for The Economist, they emphasized that while tokenization won't immediately overhaul current financial systems, it holds the potential to unify these two sectors. They described this process metaphorically as constructing a bridge from opposite riverbanks, with traditional financial entities on one side and digital pioneers, including stablecoin issuers and fintech companies, on the other. The goal is not competition, but rather integration. In this envisioned future, various assets, including stocks, bonds, and cryptocurrencies, might be managed through a single digital wallet. BlackRock, the world's leading asset manager with over $13.4 trillion under its care, has seen its CEO Fink shift from skepticism to support of crypto. Initially, tokenization seemed tangled in speculative crypto trends, but now its potential to expand investable assets beyond traditional stocks and bonds is evident. BlackRock itself has ventured into this space with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the largest tokenized cash market fund, valued at $2.8 billion since its launch in March 2024. Fink and Goldstein also stressed the importance of safe tokenization through updated regulations, urging policymakers to enable collaboration between traditional finance and tokenized markets. Drawing parallels to bond exchange-traded funds (ETFs), which linked dealer markets with public exchanges, they highlighted the recent inclusion of spot Bitcoin ETFs on traditional platforms as another bridge-building innovation. They argued for regulatory consistency, suggesting that asset risk should be assessed by its nature rather than its form, pointing out that a blockchain-based bond remains a bond.
Anthropic Starts Early IPO Prep Ahead of Possible 2026 Debut: Report
Anthropic has reportedly begun the initial steps for a potential Initial Public Offering (IPO), collaborating with its long-time adviser, Wilson Sonsini. The company is said to be engaging in informal discussions with major banks while preparing for a possible listing, which might occur as early as next year. This move is part of Anthropic's strategy to assess the readiness of public markets for an AI lab still in the throes of significant capital expenditure. According to a Financial Times report, sources suggest varying timelines, with some indicating that Anthropic might be ready by 2026, although others express skepticism about this timeline. An Anthropic representative stated that no definitive decision has been made regarding going public. Anthropic is also pursuing a private funding round, aiming to raise its valuation above $300 billion, backed by early commitments totaling at least $15 billion from investors like Microsoft and Nvidia. As of September, the company's post-money valuation stood at $183 billion. Wilson Sonsini, advising Anthropic since 2022, has a history of supporting major tech IPOs, including those of Apple and Google. This potential IPO positions Anthropic alongside other key AI labs, such as OpenAI, in exploring public market opportunities. However, both companies face the challenge of rapidly increasing training costs that outpace revenue growth, despite growing investor interest in AI ventures. Ram Kumar, a core contributor at OpenLedger, commented that if Anthropic goes public by 2026, it could intensify competition among AI labs. This move might also lead capital markets to assign public valuations to AI developments, potentially triggering a wave of IPOs and exits in the sector. For investors and businesses, this could transform AI from a research expense into an investable asset class with measurable growth targets and public accountability. Nonetheless, Kumar highlighted concerns about potential valuation distortions, where public market expectations might prioritize rapid growth over essential aspects like data quality, safety, and transparency, which are crucial for a trustworthy AI ecosystem. He warned that public market pressure might hasten consolidation, reducing model diversity and entrenching a few dominant players. Ultimately, while an IPO could provide capital, Kumar stressed that it wouldn't ensure fair value distribution, traceability, or the ecosystem's long-term health by itself. He emphasized the need for equitable growth that acknowledges contributors and fosters a shared infrastructure for intelligence, rather than consolidating power among a select few.
UK takes ‘massive step forward,’ passing property laws for crypto
The United Kingdom has enacted a new law that officially recognizes digital assets, including cryptocurrencies and stablecoins, as property. Proponents believe this move will enhance protection for crypto users. On Tuesday, Lord Speaker John McFall announced in the House of Lords that the Property (Digital Assets etc) Bill had received royal assent, indicating King Charles' approval to transform the bill into an Act of Parliament. Freddie New, the policy chief at Bitcoin Policy UK, expressed on X that this legislative development represents a significant advancement for Bitcoin and its users in the UK. Previously, UK common law, reliant on judicial decisions, recognized digital assets as property. However, this bill formalizes a 2024 recommendation from the Law Commission of England and Wales, suggesting that crypto should be classified as a new category of personal property for better clarity. According to the advocacy group CryptoUK, while UK courts treated digital assets as property through individual judgments, the new law establishes this principle formally. This provides digital assets with a more defined legal status, particularly concerning ownership proof, asset recovery in theft cases, and management in insolvency or estate matters. The bill affirms that digital or electronic entities can be classified as personal property. Under UK law, personal property is divided into "things in possession," which are tangible, like a car, and "things in action," which are intangible, such as contractual rights. The bill clarifies that a digital entity is not excluded from personal property rights merely because it does not fit these traditional categories. The Law Commission's 2024 report argued that digital assets could embody both attributes, and their ambiguous status could complicate legal disputes. CryptoUK further highlighted that the law provides increased clarity and protection for consumers and investors, offering crypto holders the same confidence they have with other property types. Digital assets can now be clearly owned, recovered if stolen or involved in fraud, and included in insolvency and estate processes. The UK now possesses a well-defined legal framework for the ownership and transfer of crypto, positioning it to foster the growth of innovative financial products, tokenized real-world assets, and more secure digital markets. A report from the country's finance authority last year indicated that approximately 12% of UK adults own cryptocurrency, reflecting an increase from a previous 10%. Additionally, in April, the UK unveiled plans for a crypto regulatory framework intended to align crypto businesses with the regulations governing other financial entities. This initiative aims to establish the UK as a global leader in the crypto sector while ensuring consumer protection.
Ethereum Whale Buying Steps Up as Market Rebounds From Heavy Liquidations
A notable Ethereum whale has been active in the market, making significant purchases as the cryptocurrency landscape shows signs of recovery from substantial liquidations earlier in the month. On Tuesday, a major wallet acquired Ethereum worth $55 million from BitGo, followed by an additional $13 million purchase on Wednesday from Binance. This buying trend aligns with an 8% increase in Ethereum's value, alongside broader market gains seen in Bitcoin and Solana following the losses in early December. The derivatives market is also signaling a renewed interest in leveraged long positions. Data indicates an increase in taker buy volume and a rise in perpetual CVD alongside open interest. This suggests a growing appetite for aggressive market buying. Ethereum’s largest stakeholders have become more active as the market begins to recover from the over $600 million in long liquidations that occurred on Monday. According to Arkham Intelligence, one large holder purchased 18,345 ETH, approximately valued at $55 million, from BitGo. Another significant transaction involved the purchase of 4,597 ETH, worth about $13 million, from Binance on Wednesday morning. Additionally, a separate large acquisition of 30,278 ETH, valued at $91.16 million, was made from Kraken just three hours ago. These transactions have coincided with a market rebound that has elevated the values of Bitcoin, Solana, and other digital assets. Ethereum has risen by more than 8% in the past 24 hours, trading at $3,015 according to CoinGecko data. Bitcoin has seen a 7% increase, while Solana's value has surged by over 10%. Further optimism for continued price increases is fueled by a spike in taker buy volume, representing $148.7 million in buy orders filled by takers in perpetual swaps across all exchanges on Tuesday. This demand is considered a strong indication of aggressive market buying, as noted by Maarten Regterschot, a verified analyst at CryptoQuant. In addition, Velo data reveals an uptick in futures cumulative volume delta compared to spot cumulative volume delta. When perpetual CVD and open interest trend upwards, it typically indicates investors are opening new long positions. Stephen Gregory, founder of the crypto trading platform Vtrader, commented on the situation, suggesting that if more DATs trade below their mNAV, institutional investors may acquire Ethereum at discounted rates. He expressed confidence in the market's recovery, stating, “I think the correction has run its course, and the macro tailwinds will push Ethereum back up.”
Bitcoin surges to $93K after Sunday flush, as analysts eye $100K
Bitcoin is witnessing a wave of renewed confidence in its potential for recovery, as market analysts set their sights on the cryptocurrency reaching six figures. After experiencing a dip to $84,500, Bitcoin has surged past $92,000. "This is the kind of movement you'd expect," remarked MN Fund founder and analyst Michaël van de Poppe on Tuesday. He emphasized the importance of Bitcoin breaking the $92,000 barrier, stating, "If that level is surpassed, we might soon witness a new all-time high and a test at $100,000." Van de Poppe drew parallels between Bitcoin's current price dynamics and its past cycles, pondering if the recent decline signaled the final shakeout. "All indicators have stretched to the downside during Bitcoin's latest crash, suggesting this downturn was more severe than those triggered by Luna, FTX, or even COVID," he noted. On Wednesday, Bitcoin reached a 24-hour high of $93,040 on Coinbase, according to TradingView data. It has managed to recover all losses from the previous two days, which were caused by a leverage flush late on Sunday that slashed $8,000 from its value. Nick Ruck, director at LVRG Research, shared with Cointelegraph his belief that Bitcoin will soon hit six figures again. "Bitcoin's resilience, amid changing regulatory environments and increasing institutional adoption expected by late 2025, presents a strong case for it to reclaim the $100,000 mark in the upcoming months," he said. Ruck further mentioned that this upward trend would be fueled by macroeconomic factors, such as potential Fed rate cuts and renewed ETF inflows. Before the rebound, analysts pointed to the $86,000 to $88,000 range as a critical support zone that needed to hold. Analyst "Crazzyblockk" explained, "This level has withstood sixty tests in recent months without breaking, making any breaches particularly noteworthy." Trading above this zone indicates diminished selling pressure, as active traders maintain profitable positions. The upcoming week is pivotal; maintaining this level supports market structure, while falling below it could trigger a shift from accumulation to distribution. At the time of writing, Bitcoin was trading at just over $92,700, marking a 7% increase over the past 24 hours.
Crypto lobby slams ABC’s ‘sensational’ Bitcoin article in complaint
The Australian Bitcoin Industry Body (ABIB), representing the cryptocurrency sector, has officially lodged a complaint against the Australian Broadcasting Corporation (ABC) over a recent article that, according to the group, contained numerous inaccuracies and misrepresentations regarding Bitcoin. ABIB argues that the report unfairly depicted Bitcoin as volatile, associated it with criminal activities, and overlooked its potential advantages for energy management and humanitarian efforts. In the complaint, ABIB accused the article of misrepresenting Bitcoin's purpose by linking it to illegal activities, omitting readily available information, and prioritizing sensationalism over factual reporting. ABIB further criticized the piece for ignoring well-documented global and local applications of Bitcoin, reducing its narrative to outdated stereotypes concerning price volatility and U.S. political implications. ABIB expressed on platform X that the "one-sided framing" of the article violated ABC’s editorial standards and code of conduct. The complaint specifies which aspects of the article require correction and which editorial guidelines were breached. According to ABC's code of practice, the broadcaster has a 60-day window to address the complaint. ABC, funded by the Australian government and overseen by a government-appointed board, boasts a monthly readership of over 12 million, as per data from Ipsos Iris in October. ABC informed Cointelegraph that it was not yet aware of the complaint. Should ABC fail to respond or if ABIB finds the resolution unsatisfactory, the issue may be escalated to the Australian Communications and Media Authority (ACMA). ACMA could potentially investigate and, if a breach is confirmed, impose enforcement measures such as warnings, infringement notices, or licensing decisions. Despite the ABC article's portrayal of Bitcoin as a tool for criminals, statistics reveal a different story. A Chainalysis report from January indicated that merely 0.14% of total onchain transaction volume in 2024 was linked to possible criminal activity. In contrast, the United Nations Office on Drugs and Crime estimates that illicit transactions account for about 3.6% of the global GDP. The ABC article also claimed that Bitcoin has failed to achieve its objectives and lacks practical use, asserting it is seldom used for legitimate transactions and is no longer seen as a reliable store of value. However, the narrative of institutional adoption contradicts this, as investment in Bitcoin and cryptocurrencies has surged over the past two years through exchange-traded funds and digital asset treasuries. BitBo estimates indicate that public and private companies, ETFs, and even countries hold over 3.7 million Bitcoin, valued at over $341 billion. Additionally, financial entities and investment managers, even those previously skeptical, are gradually entering the crypto space. Recently, Vanguard, one of the world’s largest asset managers, reversed its stance by allowing clients to trade crypto ETFs on its platform. The challenge of misinformation in mainstream media (MSM) is a concern for the crypto lobby. A report by Perception, a market intelligence firm, found that out of the articles published by 18 outlets in Q2, 31% were positive, 41% neutral, and 28% negative. ABIB stated that it frequently receives public inquiries regarding the misrepresentation of Bitcoin in Australian media, especially from publicly funded organizations. The industry body insists that Bitcoin deserves coverage that is informed and responsible, rather than being dismissed by outdated narratives.
Trump hint sends Kevin Hassett Fed chair odds soaring in markets
Prediction markets saw a significant rise in the odds of Kevin Hassett becoming the next chair of the US Federal Reserve following a hint from President Donald Trump at a White House event. During a speech on Tuesday, Trump introduced Hassett as a "potential Fed chair," sparking speculation about Hassett's candidacy. Trump remarked, "It’s a great group, and I guess a potential Fed chair is here too," before adding, "I don’t know, are we allowed to say that, potential? He’s a respected person, that I can tell you. Thank you, Kevin." Earlier the same day, Trump mentioned in a cabinet meeting that the selection process had narrowed down significantly. "I think we probably looked at 10 and we have it down to one," he shared. This statement led to a surge in Hassett’s odds on the blockchain-based prediction market Kalshi, jumping from about 66% to approximately 85% after Trump's comments. Similarly, odds on Polymarket mirrored this trend. Kevin Hassett, who has been serving as the director of the National Economic Council since January 2025 after being appointed by Trump, is viewed as a crypto-friendly figure. With a $1 million investment in Coinbase and experience with the digital asset working group, Hassett is among several candidates considered for the Fed chair position as Jerome Powell’s term is set to conclude in May 2026. Trump's relationship with Powell has been strained, highlighted by a comment at the US-Saudi Investment Forum in late November, where Trump expressed frustration, saying, "I’d love to fire his ass ... grossly incompetent.” In related developments, Treasury Secretary Scott Bessent has been tasked with leading the search for the new Fed chair. Last month, Bessent emphasized that the government seeks a leader who can guide the Fed quietly and effectively behind the scenes, returning to a more traditional and subdued role. "I think it’s time for the Fed just to move back into the background, like it used to do, calm things down and work for the American people," Bessent stated. While the Fed does not directly regulate cryptocurrency, its policies significantly affect market sentiment through monetary policy and interest rate decisions. Lower interest rates tend to benefit the crypto market, and Hassett has criticized the Fed's rate policy for being too high. Additionally, the Fed's role in overseeing banking regulations could impact crypto firms' interactions with the banking sector if rules are adjusted.
Grayscale Launches First US Chainlink ETF on NYSE Arca
Grayscale has successfully converted its private Chainlink Trust into the Grayscale Chainlink Trust ETF (GLNK), launching it on NYSE Arca as the first U.S. spot Chainlink ETF. This transition, which was aided by SEC guidelines during a governmental shutdown, allows GLNK to hold Chainlink's native cryptocurrency, LINK, as its sole asset. On its debut, the ETF saw an impressive trading volume of over 1.17 million shares, surpassing typical levels for such a product. The choice to focus on Chainlink for this ETF was influenced by Grayscale's longstanding support of the Chainlink oracle network, which has functioned as a private fund since 2021. By offering this ETF, Grayscale becomes the pioneer in providing investors with access to blockchain oracles via an ETF, facilitating direct engagement with crucial blockchain infrastructure. Chainlink's oracle network is designed to connect smart contracts across any blockchain with real-world data, events, and off-chain computations. This infrastructure helps synchronize information between on-chain and off-chain environments, as noted in GLNK’s prospectus. The conversion to an ETF follows a similar path to Grayscale's recent DOGE and XRP ETF launches, which also transitioned after meeting procedural requirements. These cash-only models mean authorized participants bear more responsibility for buying and selling, leading to potentially wider price points during initial trading. The SEC's updated listing standards, approved in September, were crucial in enabling Grayscale's launch of the GLNK product. The company leveraged the SEC's guidance during the government shutdown to file for GLNK, resulting in a 20-day period after which the product became effective automatically. Reflecting on the initial trading, a Grayscale representative expressed optimism about the trading volume, which was notably robust. By the close of its first trading day, GLNK's price had risen 5.8% to $11.89, with after-hours trading pushing it to approximately $12. The high trading volume suggests strong investor interest and active price discovery as the ETF transitioned from over-the-counter markets to NYSE Arca. Grayscale reports enthusiasm across a broad range of investors, in line with the active secondary market activity observed.
Stablecoins were built to replace banks but on course to becoming one
Fifteen years since Bitcoin's inception, the cryptocurrency market has grown into a nearly $4 trillion entity. Yet, the original vision for Bitcoin as a tool for everyday transactions remains largely unrealized. The focus has shifted to stablecoins as a potential solution for peer-to-peer payments. However, instead of replacing banks, stablecoins are at risk of evolving into bank-like entities. In the U.S. and Europe, regulations are driving them toward centralized systems rather than maintaining their promise of open financial access. In the United States, the introduction of the GENIUS Act has created a federal framework for stablecoins, outlining who can issue them, how they should be backed, and the nature of their regulation. Meanwhile, Europe has implemented MiCA regulation, effective from 2024, which imposes stringent requirements on stablecoins, categorizing them as "e-money tokens" and "asset-referenced tokens." These regulatory measures aim to ensure safety and legitimacy but simultaneously push stablecoin issuers toward a banking model. Requirements such as reserves, audits, Know Your Customer (KYC) protocols, and redemption processes transform stablecoins into centralized financial gateways rather than tools for direct peer-to-peer exchanges. Currently, more than 60% of corporate stablecoin usage is concentrated in cross-border settlements rather than consumer payments, indicating a shift towards institutional applications rather than individual usage. The risk here is that stablecoins might develop into the next SWIFT—a centralized, efficient, yet opaque system vital for institutions but not necessarily democratizing financial access. SWIFT revolutionized global banking by facilitating communication between banks, but it didn't expand access to banking services for the unbanked. If stablecoins follow a similar path, they will enhance existing financial infrastructure rather than empower individuals. The essence of cryptocurrency is programmable money—funds that operate with logic, autonomy, and user control. Yet, when transactions require issuer permissions, comply with tagging, and monitored addresses, the nature of the network shifts. It becomes compliant infrastructure rather than true money, which could steer stablecoins from their disruptive potential to becoming more reactionary and less revolutionary. The challenge lies not in regulation itself, but in how stablecoins are designed. To preserve the promise of stablecoins while meeting regulatory demands, developers and policymakers should integrate compliance into the protocol layer, maintain composability across different jurisdictions, and ensure non-custodial access. Real-world initiatives like the Blockchain Payments Consortium illustrate that standardizing cross-chain payments without sacrificing openness is feasible. Stablecoins must cater to individuals, not just corporations. If they only benefit large players and regulated transactions, they will conform to existing systems rather than disrupt them. The design should enable genuine peer-to-peer transfers, offer selective privacy, and support interoperability. Otherwise, the infrastructure will merely reinforce existing hierarchies, albeit more efficiently. Stablecoins still have the potential to revolutionize money. Yet, if they become institutionalized frameworks designed for banks rather than individuals, we risk replacing one centralized system with another. The debate is not about whether to regulate stablecoins—they will be regulated—but whether they will be designed for inclusion and autonomy, or if they will entrench old systems with a digital veneer. The future of money hinges on the path we decide to take.
December Fed cuts unlikely, but Bitcoin will be fine: Kevin O’Leary
Kevin O’Leary, the well-known American entrepreneur and investor, has dismissed the idea that the US Federal Reserve will reduce interest rates in December—a move that often bodes well for cryptocurrencies. Despite this, O’Leary is confident that a Fed rate decision, whether a hold or otherwise, will not adversely affect Bitcoin (BTC). "I don’t actually think the Fed's gonna cut in December," O’Leary, popularly known as “Mr. Wonderful,” shared in an interview with Cointelegraph, adding that it wouldn’t significantly impact Bitcoin. O’Leary does not foresee Bitcoin experiencing more than a 5% fluctuation. "I’m not investing with the expectation that the Fed will cut rates. I just don’t see it happening. There are numerous reasons why they might refrain," he explained. He pointed out that inflation remains a concern, with the annual rate having climbed to 3% in September—the highest since January. "It's a dual mandate: full employment and inflation. Tariffs are starting to take hold, along with input costs," O’Leary noted. Despite these issues, the CME’s FedWatch Tool indicates that market participants assign an 89.2% probability to a rate cut in December. Crypto enthusiasts typically view Fed rate cuts as positive for riskier assets like cryptocurrency, as these cuts make bonds and term deposits less appealing. However, some fear that an unexpected Fed decision could negatively impact Bitcoin and the wider crypto markets. O’Leary, however, is not concerned about this outcome. He believes Bitcoin has stabilized for the time being and does not anticipate significant downward movement. "I think it’s going to stay within 5% of its current value, either way, but I don’t see many catalysts for significant upside," O’Leary commented. Over the past month, Bitcoin's value has decreased by 17.35%, according to CoinMarketCap, with its current trading price at $91,440. As the Federal Reserve's December decision approaches, volatility surrounding rate expectations remains high. Just weeks ago, the probability of a December rate cut was much lower. On November 19, the likelihood of a rate cut at the December meeting had dropped to 33%, following an earlier assessment of 67% in early November. However, by November 21, the odds almost doubled to 69.40%, spurred by New York Fed President John Williams' dovish remarks suggesting the Fed could cut rates "in the near term" without compromising its inflation objectives. Bloomberg analyst Joe Weisenthal attributed this significant increase to Williams' comments. After the first rate cut of 2025 in September and another in November, there was a widespread expectation that the Federal Reserve would continue its policy of easing through the year's end.
How XRP became the top crypto ETF trade despite price slides toward $2
XRP spot ETFs have demonstrated a remarkable ability to attract capital, recording approximately $756 million in inflows over eleven consecutive trading days since their debut on November 13. This surge in ETF demand starkly contrasts with XRP's declining price, which has dropped about 20% during the same timeframe, now hovering around $2.03. This discrepancy has sparked curiosity about the evolving ownership structure of XRP. The strong inflow into ETFs amid declining prices suggests a market balancing between consistent institutional investment and a broader reduction in risk exposure. Essentially, this scenario signifies a complex interplay where new, regulated demand is entering the market while current holders reassess their positions. XRP's ETF inflows are particularly noteworthy against a backdrop of net outflows in other cryptocurrencies. Bitcoin ETFs experienced over $2 billion in redemptions, and Ethereum products saw nearly $1 billion in withdrawals. Meanwhile, even high-performing assets like Solana managed to garner only about $200 million in cumulative inflows, with other altcoin ETFs such as Dogecoin, Litecoin, and Hedera attracting between $2 million and $10 million each. XRP, however, stands out with its consistent accumulation, and the four ETFs now account for approximately 0.6% of XRP's total market capitalization. Market participants attribute this demand to the operational efficiency of XRP ETFs, which provide institutional investors with a compliant, low-friction avenue into the asset, avoiding the complexities of direct token custody and exchange risks. However, the lack of upward price momentum despite these inflows indicates that other market sectors may be reducing their exposure or managing risks in light of macroeconomic and crypto-specific uncertainties. This phenomenon, while not new in the crypto world, is significant in scale. The selling pressure likely stems from early adopters cashing out after enduring years of volatility and possible treasury adjustments. The ETF boom has effectively created a liquidity bridge, enabling large entities to offload positions without causing immediate market disruption. Beneath the surface, ownership data suggests a shift towards centralization, as evidenced by a 20.6% drop in the number of "whale" and "shark" wallets holding at least 100 million XRP over the past eight weeks, according to blockchain analysis firm Santiment. This pattern of fewer large wallets holding more combined assets can be seen as "consolidation," with supply moving into "stronger hands." However, from a risk-adjusted perspective, it indicates an increasing centralization risk. With nearly half of the available supply concentrated in a diminishing group of entities, the market's liquidity profile is becoming more precarious. Should this group decide to distribute, the resulting liquidity shock could be substantial. Concurrently, spot exchange balances are depleting as tokens transition into the regulated custody solutions mandated by ETF issuers. Although this theoretically reduces the "float" available for retail trading, it hasn't caused a supply shock yet. Instead, the transfer from exchanges to custodians appears to be a one-way flow, absorbing the circulating supply released by the declining whale cohort. The ongoing inflow streak has sparked discussions about which asset might become the benchmark altcoin for institutional portfolios. Traditionally, regulated crypto exposure has focused almost exclusively on Bitcoin and Ethereum, with other cryptocurrencies receiving minimal attention. XRP’s recent inflow activity, surpassing the cumulative inflows of other altcoin ETFs, has temporarily altered this dynamic. Part of the interest is driven by developments at Ripple, including its licensing expansion in Singapore and the adoption of its dollar-backed stablecoin, RLUSD, which provide institutions with a broader ecosystem to consider. Ripple’s acquisitions in custody, brokerage, and treasury management have established a vertically integrated framework reminiscent of traditional financial infrastructure, offering a foundation for regulated participation. Despite this, analysts caution that a short inflow streak does not establish a new long-term benchmark. XRP will need to maintain demand across various market conditions to uphold its position relative to competitors like Solana, which has gained attention for its increasing tokenization activity, and other assets that might attract larger inflows once new ETFs are introduced. For now, XRP's performance within the ETF sphere indicates early momentum rather than structural dominance. The inflows reflect genuine institutional interest, but the asset's price behavior underscores the broader challenges faced by large-cap cryptocurrencies amidst macroeconomic uncertainties.
Kraken to Acquire Tokenization Platform Backed Finance as Crypto Exchange Extends Buying Spree
Kraken, a prominent U.S. cryptocurrency exchange, has announced its acquisition of Backed Finance AG, a platform that specializes in tokenized assets, as part of its strategy to expand its presence in the tokenization sector. Based in Cheyenne, Wyoming, Kraken stated that this acquisition would enhance the global adoption of xStocks—securities that are already traded on traditional markets but now made accessible on blockchain networks. This move is part of Kraken's ongoing collaboration with Backed to provide tokenized stocks and ETFs to its users via platforms like Ethereum and Solana. The process of tokenization involves taking tangible assets and representing them digitally on blockchain networks. Arjun Sethi, co-CEO of Kraken, emphasized the significance of integrating Backed into Kraken's operations. He highlighted that this integration would bolster the essential architecture for open and programmable capital markets. By unifying issuance, trading, and settlement within a single framework, Kraken aims to ensure that the infrastructure for tokenized assets remains transparent, dependable, and accessible worldwide. This development is seen as a foundational step towards the future evolution of market structures. While Kraken did not disclose the financial details of the acquisition, this buyout is part of a series of acquisitions the company has made throughout the year in preparation for going public. In September, Kraken acquired Breakout, a proprietary trading platform, for an undisclosed sum and earlier in the year, it purchased the futures trading platform NinjaTrader for $1.5 billion. Sethi has previously criticized the outdated nature of traditional financial systems, which he described as operating on mid-20th-century technology. Kraken's ambition is to transform into an institutional-grade trading platform where various assets can be traded at any time. He further explained that this recent acquisition is not just about offering exposure to U.S. equities but is aimed at redefining asset ownership in the digital age. The interest in tokenization from traditional finance firms has been growing. Notably, Larry Fink from BlackRock has often discussed its potential to revolutionize capital markets, and BlackRock now offers a tokenized money-market fund. Additionally, Franklin Templeton, a major Wall Street firm, has been involved in the tokenization of assets across several blockchains for some time.
Crypto Winter Is Not Coming, Myriad Users Say
Digital assets experienced a resurgence on Tuesday following a significant decline the day before. Recently, 30% of users on the Myriad platform anticipated a crypto winter, but this outlook has improved. Bitcoin has seen a decline of approximately 27% since reaching its peak of over $126,000 in early October. Despite Winter Storm Chan approaching New York, traders on Myriad, a prediction market owned by Decrypt's parent company Dastan, are now assigning only a 9% probability of the market entering a crypto winter. This marks a decrease from the 30% likelihood since the market's launch last Friday, following a week where Bitcoin lingered around $85,000, close to its six-month low. The improved outlook coincided with a recovery in crypto prices on Tuesday, following a market downturn that lasted over six weeks. Bitcoin was trading above $91,500, reflecting a 6% increase over the last 24 hours, although it remains about 27% below its all-time high set in early October, as reported by CoinGecko. Ethereum also saw gains, trading at $2,990 at the time of writing, marking a 7.3% increase since Monday. The Ethereum developer community is preparing for the rollout of the Fusaka upgrade on Wednesday, which is expected to significantly alter how the mainnet processes data from layer-2 networks. Despite this, Ethereum is still down over 20% in the past month. For Myriad's prediction market to deem it a crypto winter, three out of four conditions must be met: Bitcoin must fall to $35,000; Ethereum must drop to $1,000; MicroStrategy's stock, MSTR, must decline to $50; or the total crypto market capitalization on TradingView must decrease to $350 billion. Generally, a crypto winter describes a prolonged market downturn characterized by falling prices, reduced trading activity, and waning investor interest, sometimes lasting for months or even years. The latest crypto winter spanned from late 2021 through most of 2023, triggered by the collapse of the bull market from the pandemic era, exacerbated by the Terra/Luna collapse in 2022, leading to the downfall of Three Arrows Capital and crypto exchange FTX. During this time, Bitcoin plummeted from an all-time high near $69,000 in November 2021 to around $16,000 after FTX's collapse—a drop of about 75%. This period also saw significant declines in venture funding and trading volumes. Despite the current market conditions suggesting a crypto winter is not imminent, Bitcoin and Ethereum have recently faced price pressures. Analysts at QCP Capital, a crypto trading firm based in Singapore, attributed Monday's dip to the hawkish stance of Bank of Japan Governor Kazuo Ueda, which implies a 76% chance of a rate hike at the December 19 BOJ meeting. Additionally, traders are closely monitoring the U.S. Federal Open Markets Committee as it approaches its final meeting of the year. Decrypt analysts have indicated that the U.S. central bank's upcoming interest rate decision will play a crucial role in determining Bitcoin's year-end performance.
ETH briefly touches $3K but traders remain skeptical: Here’s why
Key insights reveal that even with an 8% rebound in Ethereum's price, traders remain cautious as indicated by the ETH futures premium and put options skew. Despite this price uptick, Ethereum faced a 49% decline in weekly fees due to decreased decentralized exchange (DEX) activity, contrasting with a 9% increase in fees for Tron and Solana. On Tuesday, Ether (ETH) saw an 8% gain but halted near $3,000 as derivatives markets expressed skepticism about further growth. This movement aligned with a broader rally in the cryptocurrency market, driven by expectations of new economic stimulus following stress in Japan's government-bond market. Sentiment improved with investors anticipating a shift towards less restrictive U.S. monetary policy, especially after the Federal Reserve (Fed) ended its balance-sheet reduction on December 1. Traders are also anticipating an interest-rate cut on December 10. Additionally, U.S. financial institutions have significantly boosted their use of repurchase agreements, adding liquidity to short-term funding markets. The tech-heavy Nasdaq index has nearly recovered its losses from November, now trading about 3% below its all-time high. However, ETH derivatives suggest limited confidence among bullish traders. On Tuesday, the annualized premium on ETH monthly futures compared to spot markets remained at 3%, similar to the previous week, signaling weak demand for leveraged long positions, a likely result of Ether's 22% drop over the past month. Ether's slower performance compared to the U.S. stock market is concerning as global economic policies become more expansionist. The Fed injected $13.5 billion through overnight funding on December 1, marking the second-highest level in over five years. This facility had previously held over $2.5 trillion in 2022 after stimulus measures and low-interest rates but was later reduced as participants sought higher returns elsewhere. Other factors affecting crypto demand include concerns over excessive investment in artificial intelligence infrastructure and increased regulatory pressure on stablecoins. Additionally, China's central bank has vowed to intensify its crackdown on money laundering and unauthorized cross-border transfers involving digital assets. Professional Ether traders remain wary of potential downside risks, a sentiment reflected in the persistent stress observed in options markets. ETH put options were trading at a 6% premium over call options, typically indicative of bearish conditions, a shift from a neutral 4% skew observed on Friday. This change suggests lingering restraint among traders, even as the rally in U.S. equities points to an improved risk appetite. Ethereum network fees have dropped to their lowest in over three years, reducing to $2.6 million over a week, down from $5.1 million four weeks earlier. This decline partly results from reduced activity on decentralized exchanges, where volumes fell to $13.4 billion from a peak of $36.2 billion in August. Meanwhile, rival blockchains Tron and Solana recorded a 9% increase in seven-day fees. Concerns grew further with the movement of a dormant Ether whale on Sunday, which transferred 40,000 ETH to a new address, leading to speculation about a potential sale. The upcoming Fusaka upgrade on December 3 aims to enhance scalability and improve wallet management for Ethereum. Despite these developments, the demand for decentralized applications has decreased, leading to lower fees, and there is currently limited evidence that ETH is set to outperform the broader cryptocurrency market. This article is intended for general informational purposes only and should not be considered as legal or investment advice. The opinions expressed are solely those of the author and do not necessarily reflect the views of Cointelegraph.
Taurus adds staking backbone to its custody system via Everstake integration
Taurus has formed a strategic alliance with Everstake to integrate enterprise staking into its custody framework for institutional clients, facilitating access to yield generation across various proof-of-stake networks. Announced on Tuesday, the partnership will see Taurus, a Swiss FINMA-regulated digital asset infrastructure provider, incorporate Everstake’s non-custodial staking services into its custody solutions. This integration allows banks and institutional clients using Taurus to delegate assets such as Solana (SOL), Near Protocol (NEAR), Cardano (ADA), and Tezos (XTZ) to Everstake’s validators, all while maintaining their private keys and operational control within their current custody systems. Everstake, which supports more than 80 proof-of-stake networks and manages around $7 billion in staked assets, will supply the necessary validator infrastructure. Established in 2018 and based in Switzerland, Taurus offers digital asset infrastructure services to banks and institutions, covering a wide range of activities including custody, issuance, trading, and tokenization. In May, Taurus expanded its presence in Latin America by partnering with Parfin, an institutional blockchain provider, to offer tokenization services to financial institutions. Staking, which involves locking tokens to secure a proof-of-stake network in exchange for rewards in native assets, is increasingly attracting institutional interest as it moves beyond decentralized finance (DeFi) into regulated infrastructures. In February, Lido, the largest liquid staking protocol, launched Lido v3, featuring new stVaults that enable institutional Ether (ETH) stakers to customize their setups for compliance and operational control. Coinbase took a similar approach in October by extending its integration with Figment, allowing institutional clients to stake a broader range of PoS assets directly through its custody services. Anchorage Digital expanded its Hyperliquid offering by introducing HYPE staking through its U.S. bank and its licensed entity in Singapore. This staking capability, supported by Figment’s validator infrastructure, will also be available via Anchorage’s self-custody wallet. Previously, the bank enhanced its services by adding custody and staking for Starknet’s STRK token in September, further broadening institutional access to this asset and its yield-generating opportunities.