United States
CFTC Enables Leveraged Spot Cryptocurrency Trading on Regulated Exchanges: On December 4, the CFTC announced that leveraged spot cryptocurrency trading will launch on CFTC-regulated platforms, with Bitnomial Exchange set to begin trading on December 8 as the first DCM to offer the products. More here.
CFTC Issues No-Action Letters to Prediction Market Platforms on Data Requirements: On December 12, the CFTC Division of Market Oversight (DMO) and Division of Clearing and Risk (DCR) issued no-action letters to Polymarket US, LedgerX, PredictIt, and Gemini Titan, exempting them from swap data reporting (SDR) and certain record-keeping regulations under specific conditions. The letter outlines that the platforms must fully collateralize all contracts by ensuring complete coverage with reserved assets and publish time and sales data for event contract transactions on their websites following execution to avoid enforcement action. The exemptions apply to prediction market platforms that enable traders to position on event outcomes, including sports and political topics. More here.
Bitnomial Receives Approval to Launch Prediction Markets in the US: On December 12, Bitnomial Clearinghouse LLC received approval from the CFTC to clear fully collateralized swaps, enabling its parent company Bitnomial to launch prediction markets covering cryptocurrency and economic events while offering clearing services to other platforms. Bitnomial President Michael Dunn stated the approval allows the company to serve both its own exchange and external partners, building a clearing network for the prediction market ecosystem through infrastructure-only clearing services providing margin and settlement systems with U.S. dollar and cryptocurrency collateral conversion. More here.
SEC Issues Investor Bulletin on Crypto Asset Custody for Retail Investors: On December 12, the Securities Exchange Commission’s (SEC) Office of Investor Education and Assistance issued an Investor Bulletin outlining how retail investors can hold crypto assets, explaining custody concepts, crypto wallets, private and public keys, and the differences between hot and cold wallets, as well as self-custody versus third-party custody. The bulletin highlights key risks and considerations, including loss of private keys or seed phrases, cybersecurity threats, custodian failure, fees, rehypothecation practices, and privacy protections, and provides practical questions and tips to help investors evaluate custody options and safeguard crypto assets. More here.
FDIC Proposes First Stablecoin Regulation Under GENIUS Act: On December 16, the Federal Deposit Insurance Corporation’s (FDIC) board unanimously approved a proposal establishing application procedures for depository institutions seeking to issue stablecoins through subsidiaries, opening a sixty-day public comment period for the first official rule stemming from the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. FDIC Acting Chairman Travis Hill stated the proposal adopts a tailored application process enabling evaluation of applicant safety and soundness based on statutory factors while minimizing regulatory burden, with a 120-day approval window and appeal process for rejected applications. More here.
Senator Lummis (R-WY) Announces Retirement After Current Term: On December 19, Senator Cynthia Lummis (R-WY) announced she will not seek reelection when her first term ends in January 2027. Senator Lummis has served as the inaugural Chair of the Senate Banking Committee’s Subcommittee on Digital Assets, founded the Financial Innovation Caucus, and has been a leader on negotiations around digital assets market structure legislation. She has also introduced several bills, including the Lummis-Gillibrand Responsible Financial Innovation Act, to create a comprehensive regulatory framework for digital assets, define roles for the SEC and CFTC, establish stablecoin rules, and clarify digital asset taxation. Senator Lummis’ full statement is available here.
Bipartisan Representatives Propose Tax Bill with Stablecoin and Staking Relief: On December 20, Representatives Max Miller (R-OH) and Steven Horsford (D-NV) introduced the Digital Asset Protection, Accountability, Regulation, Innovation, Taxation, and Yields (PARITY) Act, proposing tax exemptions for regulated stablecoins, optional tax deferral on staking and mining rewards, and alignment of digital assets with traditional securities and commodities. While most provisions would take effect upon enactment, the stablecoin exemption would begin in tax years starting after Dec. 31, 2025. More here.
International Bodies
Japanese Government Supports Twenty Percent Flat Tax Rate on Cryptocurrency Profits: On November 30, the Japanese government and ruling coalition backed the Financial Services Agency (FSA) plans to introduce a flat twenty percent tax rate on cryptocurrency profits, aligning with taxation for equities and investment funds. The FSA will submit legislation during the 2026 regular Diet session as part of amendments to the Financial Instruments and Exchange Act (FIEA), including provisions for stricter investment disclosures and a prohibition on insider trading. More here.
Poland’s President Vetoes MiCA Implementation Bill Citing Overregulation Concerns: On December 2, Polish President Karol Nawrocki vetoed the Crypto-Asset Market Act, which is Poland’s legislation to align with the EU’s Markets in Crypto-Assets regulation (MiCA). President Nawrocki stated how the provisions “pose a real threat to the freedom of Poles, their property, and the stability of the state.” More here.
U.K. Passes Law Formally Recognizing Cryptocurrency as Property: On December 3, the Property (Digital Assets etc) Act received Royal Assent, establishing cryptocurrency and non-fungible tokens (NFTs) as a third category of property alongside things in possession and things in action under U.K. law. The legislation modernizes property law to account for digital assets, providing legal clarity for ownership rights, recovery processes in cases of theft or fraud, and inclusion in insolvency and estate proceedings. More here.
International Monetary Fund Releases Guidelines for Addressing Stablecoin Market Risks: On December 4, the International Monetary Fund (IMF) released a comprehensive report analyzing global regulatory approaches to stablecoins, concluding that while emerging regulations could mitigate macro financial stability risks, the regulatory landscape remains “fragmented” regarding both policymaker approaches and stablecoin issuance methods. The IMF stated that “strong macro-policies and robust institutions” should serve as the first line of defense against stablecoin risks. More here.
EU Proposes Centralizing Crypto Supervision Under the European Securities and Markets Authority: On December 4, the European Commission proposed transferring oversight of cryptocurrency firms from national regulators to the European Securities and Markets Authority (ESMA) to reduce fragmentation and improve consistency under the EU’s MiCA framework. The proposal, which would require approval from the European Parliament and Council, aims to strengthen cross-border supervision and more fully integrate EU financial markets. More here.
Argentina’s Central Bank Weighs New Framework for Bank-Provided Crypto Services: On December 8, Argentina’s Central Bank indicated it is drafting new regulations that would allow banks to offer customers digital asset-related services, potentially lifting the current prohibition as early as April 2026. The proposed framework reflects a broader policy shift toward incorporating crypto activity into the formal financial system, following changes in national economic strategy and growing use of digital assets as a hedge against inflation. More here.
U.K. Financial Conduct Authority Designates Pound Stablecoin Payments as 2026 Priority: On December 11, the U.K. Financial Conduct Authority (FCA) announced pound-denominated stablecoin payments as a top 2026 priority, launching a dedicated regulatory sandbox for prospective issuers with an application deadline of January 18, 2026. FCA Chief Executive Nikhil Rathi stated in a letter to Prime Minister Sir Keir Starmer that the initiative is part of nearly fifty reforms aimed at strengthening the U.K.’s position as a global financial hub, allowing companies to test stablecoin solutions in a controlled environment before full regulatory requirements take effect. More here. Full letter here.
Japan Plans to Transfer Cryptocurrency Regulation from Payments to Securities Law: On December 10, Japan’s FSA released a report from the Financial System Council’s Working Group outlining plans to shift crypto regulation from the Payment Services Act (PSA) to the FIEA, which governs securities markets, issuance, trading, and disclosures. The framework strengthens data disclosure requirements for initial exchange offerings, mandating pre-sale disclosures including detailed information about offering entities, independent third-party code audits, and consideration of self-regulatory organization feedback, while requiring issuers to disclose identities and token distribution methods regardless of project decentralization. More here.
U.K. Plans to Implement Cryptocurrency Regulation Framework in 2027: On December 15, the U.K. Treasury announced plans to extend existing financial regulation to cryptocurrency companies beginning in 2027, following draft legislation published in April outlining proposed rules for crypto exchanges and stablecoin issuance. The approach differs from MiCA regulations by adapting existing financial services rules to digital assets rather than creating industry-specific legislation. More here.
Spain’s Securities Regulator Issues MiCA Implementation Guidelines for Crypto Platforms: On December 16, the Comisión Nacional del Mercado (CNMV) de Valores, published a Q&A document outlining the implementation of MiCA, addressing authorizations, notifications, conduct requirements, and transitional regime expectations for crypto-asset service providers. The CNMV guidelines include criteria on MiCA application to funds, venture capital vehicles, and markets in financial institutions directive (MiFID II) entities, as well as updated guidance on when investment-related influencers engage in client acquisition. More here.
Financial Conduct Authority Launches Consultation on Crypto Framework: On December 16, the U.K. FCA announced a consultation seeking feedback on proposed cryptocurrency rules covering token listings, exchange standards, market abuse, broker and intermediary requirements, lending and borrowing, decentralized finance, and staking under a new regulatory framework. The proposals outline a “similar approach” to regulating crypto as traditional finance. More here.
Poland’s Lower House Reapproves Crypto Regulation Bill After Presidential Veto: On December 19, Poland’s lower house of parliament, the Sejm, passed the Crypto-Asset Market Act with 241 votes, reviving legislation previously vetoed by President Karol Nawrocki and sending the unchanged bill to the Senate for debate. The legislation, designed to align Polish law with the EU’s MiCA regulation, has drawn criticism from President Nawrocki and industry members for granting the Polish Financial Supervision Authority broad enforcement powers. More here.
Ghana Legalizes Crypto Trading Through New Regulatory Framework: On December 21, Ghana’s parliament passed the Virtual Asset Service Providers Bill into law, with Bank of Ghana (BoG) Governor Johnson Asiama announcing on Friday that cryptocurrency trading is now legal under a regulatory framework designed to manage associated risks. The legislation designates the BoG as the primary regulator for cryptocurrency activity with powers to license and supervise crypto asset service providers, aiming to protect consumers from fraud, money laundering, and systemic risks while supporting innovation and financial inclusion. More here.
Indonesia Publishes Whitelist of 29 Licensed Cryptocurrency Platforms: On December 22, Indonesia’s Financial Services Authority (OJK) published a whitelist of 29 licensed cryptocurrency platforms, officially designating which exchanges may legally operate in the country and urging the public to transact only with listed entities. The clarification follows OJK Regulation No. 23/2025, which tightens oversight of digital financial assets by barring exchanges from facilitating trades in unregistered assets, introducing a framework for digital asset derivatives that requires prior OJK approval, and mandating margin mechanisms through segregated funds alongside consumer knowledge tests before access to derivatives. More here.
Russia’s Central Bank Proposes Cryptocurrency Trading Framework for 2026 Implementation: On December 23, Russia’s central bank released a proposed framework to legalize and regulate cryptocurrency trading for individuals and institutions, recognizing digital currencies and stablecoins as monetary assets that can be bought and sold but not used for domestic payments. The framework grants legal status to cryptocurrency services offered by Russia’s existing licensed financial firms, including exchanges, brokers, and asset managers, while permitting residents to purchase cryptocurrency abroad using foreign accounts and transfer holdings to domestic platforms with mandatory tax reporting. More here.
EU Crypto Tax Reporting Rules Take Effect January 1 with Compliance Deadline: On December 24, the EU finalized the rollout of its DAC8 tax-reporting directive, which takes effect January 1 and requires crypto-asset service providers to report detailed user and transaction data to national tax authorities. Operating alongside MiCA, the rules expand cross-border tax data sharing across the bloc and give exchanges and brokers until July 1 to comply, with penalties, including potential asset seizure, possible for non-compliance. More here.
China Plans Interest-Bearing Digital Yuan Wallets Under New Framework: On December 29, the People’s Bank of China (PBOC) announced a new framework that will allow commercial banks to pay interest on digital yuan (e-CNY) wallet balances beginning January 1, 2026. The change enables banks to treat the e-CNY as part of their asset-liability management, shifting the digital currency from a cash-like payment tool toward a deposit-style instrument. Chinese officials said the policy is intended to accelerate adoption, expand supporting financial infrastructure, and enhance cross-border settlement capabilities as part of a broader national strategy for the digital yuan. More here.