Crypto News Round-Up — December 2025

Cryptocurrency markets and regulation continue to evolve rapidly this week, with major developments on several fronts. From regulatory changes in Europe and the US to high-profile legal cases and security incidents, the sector has been buzzing with activity. Below is a concise overview of the key news stories affecting crypto.

• US regulators greenlight banks as crypto intermediaries
• CFTC to allow spot crypto trading on regulated exchanges
• Italy launches in-depth review of crypto risks
• Poland upholds veto on crypto regulatory changes
• Terraform Labs co-founder Do Kwon to be sentenced
• Major crypto protocol suffers a cyber breach

US regulators greenlight banks as crypto intermediaries

The Office of the Comptroller of the Currency (OCC) announced that American banks are now officially permitted to act as intermediaries for cryptocurrency transactions (Reuters). This move, reported on December 9, allows banks to hold, transfer and process crypto on behalf of customers, effectively integrating traditional banking with digital currency usage. Officials noted this as a step toward modernizing financial services under the current administration.

This change means banks can offer crypto-related custody and trading support to clients, which was previously restricted. Industry leaders say it lowers entry barriers for mainstream adoption, as users can now manage digital assets through familiar banking channels (Reuters). Financial institutions have already begun preparing compliance frameworks and risk assessments to support the new crypto functions.

• Signals official banking acceptance of crypto services
• Potentially boosts institutional investment in digital assets
• Highlights need for updated oversight of crypto-banking activities

CFTC to allow spot crypto trading on regulated exchanges

In a landmark decision, the U.S. Commodity Futures Trading Commission (CFTC) announced that spot cryptocurrency contracts will be allowed to trade on CFTC-registered futures exchanges (Reuters). This was first reported on December 9 and represents a significant step in integrating crypto asset trading with existing regulated markets. The change is part of broader efforts to bring more transparency and liquidity to the crypto sector.

Under the new rules, exchanges that were previously limited to futures and derivatives will be able to offer spot trading of digital assets under CFTC oversight. Proponents say this increases market stability by leveraging established exchange infrastructure (Reuters). It also meets evolving demand, as more investors seek regulated environments for buying and selling major cryptocurrencies without using unregulated venues.

• Bridges traditional exchanges and crypto markets
• May attract new institutional investors seeking regulated platforms
• Could lead to improved price discovery and reduced volatility

Italy launches in-depth review of crypto risks

Italian financial authorities announced an “in-depth” review of cryptocurrency risks affecting their economy and financial system (Reuters). The move, reported on December 4, comes amid growing concern over how crypto assets are entwined with mainstream finance and retail investing. Italian officials cited rising crypto adoption in the country and fragmented international rules as factors prompting the review.

The review will examine risks to consumers and the financial system, including potential threats from unregulated stablecoins and speculative trading. Officials are particularly focused on retail exposure, as surveys indicate more Italian citizens are investing in digital currency (Reuters). Depending on the findings, new recommendations or regulations could be proposed in the coming months.

• Reflects cautious stance by EU regulators on emerging crypto threats
• May result in tighter consumer protections or oversight
• Highlights need for harmonized international crypto rules

Poland upholds veto on crypto regulatory changes

The Polish parliament recently failed to override the president’s veto of a proposed cryptocurrency regulation bill (Reuters). The veto, upheld on December 5, prevents Prime Minister Donald Tusk’s government from increasing oversight over the crypto market. The original bill aimed to strengthen anti-money laundering measures for virtual assets.

The president had argued that the bill’s approach was too stringent and could drive crypto businesses away. By sustaining the veto, Poland maintains its current regulatory stance, which critics say leaves a gap in financial safeguards (Reuters). Lawmakers have indicated they will continue discussing crypto oversight, but any new proposal will need broader consensus.

• Demonstrates political divisions over crypto regulation in Europe
• Leaves current crypto rules largely unchanged for Polish users
• Shows challenges of creating unified EU crypto policies

Terraform Labs co-founder Do Kwon to be sentenced

South Korean entrepreneur Do Kwon, co-founder of Terraform Labs, is set to be sentenced in New York after pleading guilty to fraud related to the collapse of the TerraUSD stablecoin (AP News). Kwon admitted he misled investors prior to the April 2022 crash that wiped out about $40 billion in value. Prosecutors have recommended a 12-year term, reflecting the scale of the losses, while his defense highlighted time already served (AP News).

Kwon’s sentencing, reported on December 10, marks one of the highest-profile crypto fraud cases to date. He expressed regret and took responsibility in a letter to the court, amid victims’ accounts of ruinous losses (AP News). Observers say the outcome will be closely watched as a test of accountability in the crypto space and may influence how harshly fraud is punished in future cases.

• Signals global authorities’ determination to prosecute crypto fraud
• May restore some investor confidence by showing legal consequences
• Highlights the risks of unregulated stablecoins and speculative projects

Major crypto protocol suffers a cyber breach

A leading blockchain protocol announced this week that an unknown hacker exploited a vulnerability in its system, draining digital assets worth tens of millions of dollars (Reuters). The December security breach affected a decentralized finance (DeFi) platform, leading to temporary suspension of trading on its app. The team is working with cybersecurity experts to trace the stolen funds and patch the exploit.

The incident underscores persistent security challenges in the crypto industry. Although smart contract audits are routine, complex code can still harbor hidden flaws. Experts say users should be cautious, as even well-known projects can be targeted (Reuters). Regulators have previously warned that such breaches could prompt new rules on platform security.

• Highlights ongoing cyber risk in decentralized finance
• Cautionary reminder for investors about smart contract vulnerabilities
• Could spur calls for stricter security standards or insurance in crypto

Bear in mind: Cryptocurrency markets are notoriously volatile. Any information about prices or technology should not be considered financial advice. Always conduct your own research (DYOR) before making investment decisions.

Bottom Line

Policy and market leaders are increasingly focused on integrating crypto into the traditional financial system while managing its risks. In the US, regulators continue to open doors for institutional adoption, whereas in Europe regulators are balancing innovation with caution. High-profile fraud and security incidents highlight the need for vigilance. As these stories develop, investors and businesses will be watching for the next regulatory moves and security updates. Stay informed and careful in this rapidly evolving space.