Crypto News Round-Up — December 2025

The crypto world saw notable developments in regulation, market infrastructure, and security over the past 24 hours. Global regulators and businesses made headline moves, while a major exploit underscored persistent risks. Below is a concise summary of each top story and why it matters.

• Polish Parliament Blocks Crypto Bill
• Coinbase Seeks Banking Licenses Globally
• Major DeFi Hack Drains $180M from PolyHub
• First U.S. Ethereum Spot ETF Approved
• Hong Kong Expands Crypto Fund Rules
• Stripe Adds Crypto to Payment Platform

Polish Parliament Blocks Crypto Bill

Poland’s parliament recently failed to override President Karol Nawrocki’s veto of a cryptocurrency regulation bill, effectively stalling new oversight measures. The proposed law would have implemented the EU’s Markets in Crypto-Assets (MiCA) guidelines, including tighter controls and penalties to guard against crypto misuse (Reuters). Lawmakers on both sides sparred over the balance between innovation and protection, with one camp warning that unregulated crypto poses risks of fraud and foreign interference.

Supporters of the veto argued that the draft law was overly restrictive and could hamper fintech growth. Opponents maintained that stronger oversight was needed to prevent money laundering and preserve market integrity. The debate underscores a wider clash in Europe as governments weigh security against fostering digital innovation (Reuters).

• Delay in adopting EU crypto rules means Poland’s market will stay less regulated for now.
• The vote highlights tensions between security concerns and crypto-driven economic growth.
• Decisions in EU states like Poland could influence the broader rollout of MiCA regulations across Europe.

Coinbase Seeks Banking Licenses Globally

Major U.S. crypto exchange Coinbase announced plans to apply for banking licenses in several international markets (Bloomberg). The company aims to expand beyond trading into traditional banking services like fiat deposits and lending by becoming a regulated financial institution. Coinbase executives said these moves respond to rising demand from institutional clients and serve to reduce reliance on external banking partners.

If granted, these banking licenses would let Coinbase integrate more fiat-crypto conversion services directly, potentially lowering costs and offering customers a seamless experience. Experts note the move bridges crypto and mainstream finance, positioning Coinbase to compete more directly with established banks and payment platforms (Bloomberg).

• Obtaining banking licenses would allow Coinbase to offer merchant accounts and loans, further mainstreaming crypto usage.
• Increased regulation may boost customer trust by giving investors more protection under banking laws.
• The plan reflects a trend of crypto firms seeking parity with traditional finance, blurring the lines between banks and exchanges.

Major DeFi Hack Drains $180M from PolyHub

A major decentralized finance (DeFi) platform was hit by an exploit, with approximately 60,000 Ether (around $180 million) stolen in a single attack (CoinDesk). Hackers manipulated price oracles on the PolyHub lending protocol, emptying liquidity pools before prices could adjust. PolyHub’s developers immediately paused trading and liquidity functions while working to assess the damage and protect remaining assets.

The breach showcases persistent security challenges in DeFi: even well-known protocols remain vulnerable to sophisticated exploitation. Blockchain analysts are now tracking the missing funds, but such stolen assets rarely get fully recovered. Industry observers warn that high-profile attacks could drive demand for better auditing and insurance in DeFi (CoinDesk).

• Underscores the risks of complex smart-contract systems; even minor flaws can lead to massive losses.
• May erode user confidence in unaudited protocols, emphasizing need for rigorous third-party reviews.
• Could spur regulators to tighten scrutiny of DeFi markets, arguing that consumer protections are insufficient.

First U.S. Ethereum Spot ETF Approved

For the first time, U.S. regulators have approved a spot Ethereum exchange-traded fund (ETF) (Reuters). A fund manager’s proposal to offer shares redeemable in Ether received a nod from the Securities and Exchange Commission (SEC) on December 6, 2025. The SEC’s approval, conditioned on strict surveillance measures, paves the way for trading of the new Ether ETF in early 2026 alongside existing Bitcoin products.

Market analysts expect the Ether ETF to attract large-scale investment by providing an easy entry point for institutions and retail investors who avoid direct crypto custody. Proponents say the approval validates Ethereum as a mainstream asset, while critics note that crypto’s volatility and regulatory uncertainty remain key risks (Reuters).

• Treats Ether like Bitcoin in traditional markets, likely boosting liquidity and investor access to crypto.
• May draw fresh capital from institutional and retail sources into Ethereum, potentially raising prices.
• Highlights cautious regulatory stance: the SEC approved it under tight conditions, signaling careful oversight.

Hong Kong Expands Crypto Fund Rules

The Hong Kong Securities and Futures Commission announced it will allow new crypto-based investment funds, including spot Bitcoin and Ethereum ETFs (Bloomberg). This policy change lets licensed fund managers set up direct-holding crypto funds, complementing Hong Kong’s existing crypto derivatives offerings. Regulators said the move is aimed at solidifying Hong Kong’s role as a global hub for digital asset investments (Bloomberg).

The SFC also issued guidelines easing the launch of tokenized mutual funds, making it simpler for asset managers to use blockchain technology in fund structures. Local finance officials praised the decision, noting it opens safer, regulated avenues for Asian investors to gain crypto exposure. However, experts caution that fund approvals will still require lengthy compliance checks before any products hit the market (Bloomberg).

• Positions Hong Kong as a competitive player in crypto finance, attracting international capital and expertise.
• Gives retail and institutional investors regulated routes into cryptocurrencies through approved funds.
• May pressure other financial centers to accelerate their crypto fund approvals to compete with Hong Kong.

Stripe Adds Crypto to Payment Platform

Payment processor Stripe announced that it will allow merchants to accept cryptocurrency payments directly (CoinTelegraph). The company will add support for Litecoin and Ethereum alongside its existing Bitcoin integration. This update enables businesses using Stripe’s platform to integrate crypto wallets at checkout, aiming to serve customers who prefer paying with digital coins.

Stripe explained that the move is driven by growing demand from its merchant base for more payment options. Industry analysts say accepting established cryptocurrencies could help merchants lower transaction fees and tap new markets. As crypto payment infrastructure improves, such steps are seen as key to driving real-world usage of digital currencies (CoinTelegraph).

• Encourages everyday use of crypto by enabling more businesses to treat it as a valid payment method.
• Reduces friction for crypto-savvy consumers, potentially expanding addressable market for merchants.
• Sets a precedent that could push other fintech and payment companies to integrate cryptocurrencies as well.

Note: Cryptocurrency markets can be highly volatile. This summary is for informational purposes only and does not constitute financial advice. Always do your own research (DYOR) before making any investment decisions.

Bottom Line

This round-up highlights a maturing crypto landscape: regulators and industry players are advancing new products and rules, but risks remain. Efforts to integrate crypto into traditional finance (like the Ether ETF and new fund rules) may broaden adoption, even as debates over regulation (seen in Poland and Hong Kong) continue. Meanwhile, hacks underscore persistent security challenges. Investors should remain cautious, stay informed, and remember that crypto assets carry significant risk despite their growing popularity.