Crypto News Round-Up — December 2025

This week’s crypto news highlights a mix of regulatory scrutiny and growing institutional involvement. In Europe, Italy’s government launched a deep review of crypto safeguards, while U.S. regulators moved to integrate spot crypto trading into formal markets. Meanwhile, ETF issuers faced tightened oversight and Bank of America expanded crypto investment options for its clients. The following roundup covers these key developments and their implications.

• Italy launches ‘in-depth’ review of cryptocurrency risks
• U.S. CFTC to allow trading of spot crypto asset contracts
• ProShares withdraws leveraged ETF proposals after SEC scrutiny
• Bank of America expands crypto access for wealth clients

Italy launches ‘in-depth’ review of cryptocurrency risks

On Dec. 4, Italy’s Economy Ministry launched a comprehensive review of the country’s cryptocurrency investment safeguards (www.reuters.com). The initiative focuses on protecting retail investors as digital assets become more integrated into the traditional financial system. Officials expressed concern over “rising risks” from this integration amid a patchwork of international regulations. The review was announced by the Committee for Macroprudential Policies, which includes senior officials from the Bank of Italy, the financial markets regulator (Consob), and other oversight agencies (Reuters).

Italy’s officials emphasized that while the economy remains largely stable, “caution is necessary due to global uncertainties” (www.reuters.com). The move underscores a proactive stance: by scrutinizing crypto risks now, Italy aims to safeguard financial stability as the digital-asset landscape evolves (Reuters).

• Regulatory caution: Italy is taking a proactive stance to anticipate crypto-related risks as digital assets intertwine with traditional finance.
• Retail focus: The review prioritizes protecting everyday investors amid rising crypto adoption.
• Coordinated oversight: Multiple Italian agencies are collaborating, showing a unified regulatory response.
• Global implications: Reflects a broader trend of governments scrutinizing crypto under economic uncertainty.

U.S. CFTC to allow trading of spot crypto asset contracts

U.S. regulators took a historic step on Dec. 4 when the Commodity Futures Trading Commission (CFTC) announced that spot crypto contracts may be traded on CFTC-registered exchanges for the first time (www.reuters.com). This change is part of the current administration’s push to integrate digital assets into mainstream finance (Reuters). CFTC Acting Chair Caroline Pham emphasized the goal of establishing “safe, regulated U.S. markets” for crypto following a series of problems on unregulated offshore platforms (www.reuters.com).

As context, the CFTC had recently sought feedback on using tokenized collateral (such as stablecoins) in derivatives markets (www.reuters.com). Allowing spot trading on regulated exchanges is expected to attract more institutional and retail participation by channeling volumes into safer, compliant venues.

• Mainstream access: This is the first time U.S. regulators are permitting regulated onshore trading of spot cryptocurrency (Reuters).
• Policy shift: The move reflects a pro-crypto stance by current policymakers, contrasting with prior stricter approaches.
• Market growth: Licensed exchanges could draw in new investors and higher trading volumes by offering a government-sanctioned option.
• Innovation boost: Ties into broader initiatives on tokenized assets, indicating a future convergence of crypto and traditional derivatives.

ProShares withdraws leveraged ETF proposals after SEC scrutiny

ProShares has pulled several proposed leveraged exchange-traded funds (ETFs) following a U.S. Securities and Exchange Commission (SEC) review halt (www.reuters.com). The SEC had sent warning letters to nine asset managers, including ProShares, Direxion, and GraniteShares, expressing concerns about funds that would amplify returns by 3× to 5× on their benchmarks. Some of the planned ETFs targeted major tech stocks and even cryptocurrency sectors (www.reuters.com). ProShares acknowledged that these “novel” leveraged ETFs may not meet existing legal standards (www.reuters.com).

• Regulatory caution: The SEC’s scrutiny highlights its wariness of complex, high-risk crypto-linked products (Reuters).
• Innovation vs. risk: Investors seeking high-leverage crypto ETFs may face delays or stricter rules.
• Market impact: The withdrawal signals that issuers may need to adjust or shelve aggressive ETF ideas under current regulations.
• Industry oversight: Other fund managers will be watching as regulators double-check the balance between innovation and investor protection.

Bank of America expands crypto access for wealth clients

Bank of America announced that, starting January 5, 2026, its wealth managers at Merrill, Merrill Edge, and Bank of America Private Bank will be allowed to recommend crypto exchange-traded products (ETPs) to clients (www.reuters.com). Previously, only the very wealthiest investors could readily buy Bitcoin ETFs through BofA channels. The bank cited growing investor interest and a push for thematic portfolio innovation (www.reuters.com).

Bank of America even suggested modest crypto allocations of 1%–4% for clients comfortable with volatility (www.reuters.com). However, it warned that crypto prices can swing sharply: for example, Bitcoin plunged by over $18,000 in November 2025, its largest dollar drop since 2021 (www.reuters.com). In short, while crypto is becoming mainstream, it remains a high-risk asset.

• Institutional adoption: Major banks are now integrating crypto products into client portfolios (Reuters).
• Democratizing access: Allowing regular advisors to recommend crypto ETPs extends crypto investments beyond ultra-high-net-worth individuals.
• Cautious guidance: A suggested 1%–4% allocation shows that institutions still view crypto as a small, high-volatility slice of a balanced portfolio.
• Volatility reminder: Bitcoin’s recent steep losses underscore the need for investors to tread carefully (Reuters).

Cryptocurrency markets remain highly volatile, and this roundup is for informational purposes only—not investment advice. Readers should always do their own research (DYOR) and consider their risk tolerance carefully before trading digital assets.

Bottom Line

This batch of news shows a crypto market in transition. Regulators in Italy and the U.S. are intensifying oversight even as major financial institutions open new channels for crypto investment. In practice, that means crypto is becoming more embedded in traditional finance, but under closer watch. The evolving landscape reinforces the need for investors to stay informed, diversify wisely, and be prepared for swings in this still-maturing market.