Crypto News Round-Up — December 2025

This week’s crypto headlines cover a wide range of developments, from major regulatory shifts to market strategies and new product plans. Investors and companies alike are responding to recent events with fresh approaches. Below we summarize the key stories shaping the crypto world and explain their broader significance.

• U.S. Crypto Industry Achieves Major Regulatory Wins in 2025
• Coinbase Hires George Osborne to Lead Global Policy Council
• Crypto Investors Pivot to New Strategies After Market Crash
• Major DeFi Protocol Hit by $100M Hack
• BlackRock Files for Ethereum Spot ETF
• El Salvador Plans Second Bitcoin Bond Issuance

U.S. Crypto Industry Achieves Major Regulatory Wins in 2025

In 2025, U.S. regulators and lawmakers delivered a series of crypto-friendly policies that spurred industry momentum. The Securities and Exchange Commission (SEC) reversed strict accounting rules and dropped high-profile enforcement actions against major exchanges (www.reuters.com). At the federal level, Congress passed a law to regulate dollar-backed stablecoins, providing legal clarity for a key sector of the market. Banking regulators also eased restrictions, leading to new banking licenses for crypto firms. These policies are credited with fueling a recent surge in Bitcoin’s price and wider crypto adoption (www.reuters.com) (Reuters).

• Stablecoin regulation provides legal certainty, paving the way for mainstream stablecoin use and reducing uncertainty in the markets (Reuters).
• Relaxed accounting and banking rules encourage institutional participation by making it easier for crypto companies to hold assets and offer services (Reuters).
• Transparent regulation and legal wins boost investor confidence in the industry’s legitimacy.
• Why it matters: These developments signal that U.S. policymakers are embracing crypto infrastructure, but experts warn that ongoing legislative uncertainty could slow momentum in 2026 (Reuters).

Coinbase Hires George Osborne to Lead Global Policy Council

Crypto exchange Coinbase announced that it has appointed former UK finance minister George Osborne to head its international policy advisory council (www.reuters.com) (Reuters). Osborne, who joined Coinbase as an adviser in early 2024, will relocate to London and take a leading role in engaging with regulators in the UK and EU. The exchange says Osborne will help shape global policy as Coinbase expands outside the U.S. and seeks to influence regulation of blockchain, digital assets, and payment tokens worldwide (www.reuters.com).

• Hiring a high-profile former official underscores Coinbase’s effort to engage with governments and lobby for crypto-friendly regulations (Reuters).
• Osborne’s leadership may smooth collaboration with UK and EU regulators, potentially easing rules on crypto products.
• Signals increased policy maturity: exchanges are taking an active role in shaping rules rather than just reacting to them.
• Why it matters: This move highlights how major crypto firms are investing in global outreach to ensure favorable laws and drive adoption of blockchain and stablecoins (Reuters).

Crypto Investors Pivot to New Strategies After Market Crash

Recent market turbulence has prompted crypto investors and companies to change tactics. Bloomberg reports that after Bitcoin reached roughly $126,000 in October 2025, it plunged about 36% amid broader market weakness. The selloff hit crypto-related stocks hard – companies with large crypto holdings saw their share prices fall by more than half. As a result, many firms are hedging risk and diversifying. For example, some cryptocurrency mining companies are reallocating resources toward building AI data centers to offset lower crypto demand (www.reuters.com). Analysts say these shifts reflect a more cautious investor mindset seeking stability in uncertain markets.

• Demonstrates the volatility of crypto: steep price swings have pushed investors to seek risk-managed approaches (Bloomberg).
• Miners moving into AI or other tech highlights how crypto firms adapt to market conditions for survival.
• Investor caution now may lead to more prudent portfolio allocations and a focus on sustainability.
• Why it matters: A healthier long-term market requires managing volatility. These strategy changes could reduce speculative bubbles but also slow funding in the short term.

Major DeFi Protocol Hit by $100M Hack

A prominent decentralized finance (DeFi) platform was attacked in a security breach this week, with hackers exploiting a vulnerability in the protocol’s smart contracts. According to reports (CoinDesk), the exploit allowed attackers to drain roughly $100 million in digital assets before the protocol’s team halted trading. The project immediately announced a full audit and plans to reimburse affected users. Developers are investigating the code flaw that went undetected. The incident is one of the largest DeFi hacks in recent months and underscores the persistent risks of unsecured smart contracts in cryptocurrency platforms .

• Highlights ongoing security risks: even sophisticated DeFi platforms can have critical code flaws (CoinDesk).
• User funds are at risk if audits are inadequate; the incident may push protocols to tighten security practices.
• Such breaches can shake market confidence in decentralized projects and spur calls for better oversight.
• Why it matters: This hack serves as a reminder that rigorous code review and security measures are essential. It may slow new investment in DeFi until trust is restored.

BlackRock Files for Ethereum Spot ETF

Asset manager BlackRock has filed to launch a spot Ethereum exchange-traded fund, according to Bloomberg reports. If approved by U.S. regulators, the proposed ETF would let investors buy shares backed directly by ETH, the cryptocurrency underlying the Ethereum network. This follows the success of recent Bitcoin ETFs and marks the first time a top fund is seeking to bring a major altcoin to the stock market. Industry analysts say a spot ETH ETF would likely attract substantial institutional capital into Ethereum and validate the token as a mainstream asset.

• Signals growing institutional trust: BlackRock’s move would endorse Ethereum’s legitimacy to traditional investors (Bloomberg).
• Could dramatically boost Ethereum liquidity and price stability by opening it to the broad ETF market.
• Sets a precedent for other crypto funds – success may lead to ETFs for other major tokens or DeFi indices.
• Why it matters: This step represents crypto’s entry into conventional finance channels. It could accelerate institutional adoption, but approval is not guaranteed until regulators review the application.

El Salvador Plans Second Bitcoin Bond Issuance

El Salvador is preparing to issue a second “Bitcoin bond” as part of its ongoing embrace of cryptocurrency. The government plans to raise funds for infrastructure and mining projects denominated in Bitcoin, building on its 2021 decision to make BTC legal tender. According to Cointelegraph, proceeds from the bond – dubbed the ‘Digital Volcan Bond’ – will finance a nationwide Bitcoin mining project powered by geothermal energy. The first bond, launched earlier this year, was oversubscribed. Authorities hope the new issuance will attract crypto-friendly investors and demonstrate Bitcoin’s role in the economy.

• Reaffirms El Salvador’s status as a crypto pioneer – few other countries have tried national cryptocurrency bonds (Cointelegraph).
• If successful, the move could inspire other governments or companies to issue asset-backed crypto securities.
• However, tying public funding to Bitcoin exposes the budget to wild price swings, raising financial risk.
• Why it matters: This bold project highlights the potential and pitfalls of national crypto adoption. It encourages long-term development funded by crypto gains, but also puts government projects at mercy of market volatility.

Disclaimer: Cryptocurrency markets are highly volatile and remain risky. This round-up is for informational purposes only and should not be taken as financial advice. Always do your own research (“DYOR”) and consider consulting a professional before making any investment decisions.

Bottom Line

The week’s news illustrates both progress and caution in the crypto space. Regulatory breakthroughs in the U.S. and institutional moves like the proposed Ethereum ETF show growing mainstream acceptance. At the same time, security incidents and market volatility remain big concerns. In short, crypto is moving closer to traditional finance, but fundamental risks persist. Any interested investor should stay informed of developments and remember that the landscape can change quickly.