Hey Crypto fam,
The year is coming to an end, and as many can attest, the year wasn’t so much about hype, but more about positioning. Crypto matured significantly and experienced several pivotal phases. This week’s event saw the U.S. Federal Reserve soften its stance on bank-crypto engagement, stablecoin competition intensify, ETF vulnerabilities come into focus, and global regulators move closer to full-scale frameworks. The market may look quiet, but the groundwork for 2026 is being laid right now.
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Now, let’s break down the week’s biggest moves.
Federal Reserve Lifts Restrictions on Banks’ Crypto Activities
The U.S. Federal Reserve has withdrawn its 2023 guidance that discouraged banks from engaging in crypto-related activities, marking a major shift in regulatory posture. Announced on December 17, 2025, the decision allows banks to offer services such as crypto custody and trading, provided they maintain strong risk management frameworks. The Fed stressed that institutions must still comply with existing capital, liquidity, and safety standards, even as the specific crypto-focused warning is removed.
The move aligns with similar rollbacks by the OCC and FDIC earlier in 2025, signalling a coordinated effort to integrate digital assets into traditional finance. By removing what industry groups called “unnecessary barriers,” the decision opens the door for broader bank participation in crypto while keeping oversight intact.
Other News Making Waves
- Analysts warn that dozens of newly launched spot crypto ETFs could face liquidation as thin liquidity and low trading volumes leave them vulnerable to sharp market swings, with a 10–15% price drop potentially triggering forced sell-offs. (More)
- World Liberty Financial has proposed a $5 billion allocation from the U.S. Treasury to scale its USD1 stablecoin, aiming to challenge the dominance of Tether and Circle in the $250 billion stablecoin market. (More)
- CFTC Acting Director Caroline Pham plans to join crypto payments firm MoonPay after Mike Selig is confirmed as the agency’s permanent chief, highlighting the growing movement of regulatory talent into the private crypto sector. (More)
- Vitalik Buterin has called on the Ethereum community to simplify the protocol, warning that growing technical complexity undermines true trustlessness by concentrating understanding among a small group of experts. (More)
- The SEC has issued new guidance clarifying how broker-dealers can meet custody requirements for crypto asset securities under Rule 15c3-3, focusing on private key protection and operational risk management. (More)
- Aave has unveiled its 2026 roadmap after the SEC closed its investigation into the protocol without enforcement action, removing a major regulatory overhang. (More)
- The Marshall Islands launched the world’s first blockchain-enabled universal basic income program, offering citizens quarterly payments of about $200 in cryptocurrency or traditional formats. (More)
- Colosseum introduced STAMP, a token-centric investment agreement designed to replace complex equity-plus-token fundraising structures for crypto startups. (More)
- The U.S. Federal Reserve cut interest rates by 25 basis points at its final 2025 meeting, but crypto markets showed little reaction as traders remained cautious. (More)
- Solana successfully absorbed a record 6 terabits-per-second DDoS attack without network disruption, maintaining 100% validator uptime and normal block processing. (More)
- Grayscale forecasted a bullish 2026 for crypto markets, citing institutional adoption, regulatory clarity, and expanding use cases like stablecoins, DeFi, and asset tokenization. (More)
- Startale Group and SBI Holdings signed an agreement to develop a fully regulated yen-denominated stablecoin for cross-border and enterprise payments. Structured under Japan’s compliant payment framework, the digital yen aims to bridge traditional finance and on-chain settlements. (More)
- Barclays announced strict limits on crypto payments, banning credit card purchases and capping debit card and bank transfers to exchanges amid fraud and volatility concerns. (More)
Around the World: Bold Moves and Regulations
- The UK Treasury has finalized the Cryptoassets Regulations 2025, establishing authorization, disclosure, and market abuse rules ahead of a full rollout in 2027. (More)
- Canada has introduced the Stablecoin Act, appointing the Bank of Canada as the primary regulator for most fiat-referenced stablecoins and enforcing strict reserve and 1:1 redemption rules. (More)
- Russian lawmakers have reaffirmed that Bitcoin and Ethereum will remain banned for everyday payments, limiting cryptocurrencies to investment and settlement use only. (More)
- The UK government plans to regulate crypto firms under existing financial services laws, placing them under full FCA supervision by 2027. (More)
Market Trends: Winners and Losers
Top 5 Gainers 📈
According to data from CoinGecko, these are the five biggest gainers of the week:
- SentismAI +137.79%, from $0.182639 to $0.434296
- GIVEBACK +154.54%, from $0.00907394 to $0.02309650
- Luxxcoin +72.54%, from $0.00031923 to $0.00055079
- Fasttoken +127.59%, from $0.575607 to $1.31
- SMARDEX +107.69%, from $0.00237865 to $0.00494022
Top 5 Losers 📉
According to data from CoinGecko, the five biggest losers of the week are:
- FOLKS −65.42%, from $14.75 to $5.10
- Legacy Token −61.48%, from $0.335318 to $0.129180
- Sad Coin −10.94%, from $0.111771 to $0.099543
- River −51.38%, from $6.89 to $3.35
- Talus Network −31.48%, from $0.01752737 to $0.01200962
Project Spotlight
Circle Launches Arc Builders Fund to Accelerate Real-World Finance on Arc Layer-1
Circle Ventures has launched the Arc Builders Fund, a new initiative designed to support early-stage crypto teams building on Arc, a Layer-1 blockchain positioned as an “Economic OS for the internet.” The program targets builders developing practical financial infrastructure, including stablecoin markets, on-chain foreign exchange, credit protocols, agent-driven commerce, derivatives, and real-world asset (RWA) platforms.
Selected teams will receive early-stage funding, hands-on technical support, and access to a curated investor network to help translate Arc’s core features, such as stablecoin-based gas fees, sub-second finality, and configurable privacy, into enterprise-ready products. Backed by Circle’s ecosystem and partnerships with leading venture firms, the initiative aims to move crypto innovation beyond speculative use cases and into scalable, real-world applications.
Why It Matters:
The Arc Builders Fund signals Circle’s push to make blockchain infrastructure viable for real financial activity at internet scale. By backing builders early and pairing capital with technical and investor support, Circle is positioning Arc as a foundation for stablecoin-powered markets, programmable settlement, and on-chain finance that can compete with legacy systems.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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