Headline
▌US SEC Chairman: Entire US Financial Market May Migrate to Blockchain Within Two Years
US Securities and Exchange Commission (SEC) Chairman Paul Atkins stated that he expects the entire US financial market to migrate to the blockchain technology that underpins Bitcoin and cryptocurrencies within the next two years. In an interview with Fox Business, SEC Chairman Paul Atkins said, "This will not only be a trend for the next 10 years, but it could also become a reality in just two years. The next step will come with digital assets, market digitization, and tokenization, which will bring 'huge benefits' to transparency and risk management." Tokenization refers to representing stocks and assets with tradable blockchain-based tokens, a concept hailed as a potential revolution in financial markets.
Binance Responds to Alleged Employee Involvement in Early Token Issuance, Promises Zero-Tolerance Investigation Binance customer service has responded to the alleged employee involvement in early token issuance, stating, "We are aware of the feedback and are conducting an internal investigation. We maintain a zero-tolerance attitude towards any behavior involving token listings or other forms of corruption. Once the investigation is confirmed, we will inform the community of the progress as soon as possible." According to widely circulated information in the community, a suspected Binance employee or insider allegedly issued a Meme coin at 13:29:45 today, while the official Binance Twitter account only posted related promotional material at 13:30:00, with both having the same theme. Several users have provided on-chain addresses suspected of insider trading as evidence on social media. Currently, the community is still speculating about this incident, and the truth awaits the official investigation results from Binance. As of press time, according to CoinGecko data: BTC price is $89,981.98, a 24-hour change of +0.9%; ETH price is $3,048.86, a 24-hour change of +0.4%; BNB price is $892.33, a 24-hour change of +0.2%. SOL price is $131.32, a 24-hour change of -0.6%; DOGE price is $0.1381, a 24-hour change of -1.0%; XRP price is $2.04, a 24-hour change of +0.4%; TRX price is $0.2868, a 24-hour change of -0.3%. WLFI price is $0.1481, a 24-hour change of -1.9%; HYPE price is $29.38, a 24-hour change of -4.9%. Policy: South Korea plans to require cryptocurrency exchanges to assume "no-fault compensation obligations," with the Upbit hack incident serving as the trigger. The South Korean government is pushing forward legislation to introduce "no-fault compensation" rules similar to those in the banking industry for major cryptocurrency exchanges. It is reported that South Korea's Financial Services Commission (FSC) is assessing the possibility of requiring virtual asset service providers to bear liability for user losses caused by hacking attacks or system failures, even if they are not at fault. Currently, such mandatory compensation only applies to traditional financial institutions and electronic payment companies. This policy move stems from a security incident on the Upbit platform, in which approximately 44.5 billion won (about US$30.1 million) in assets were transferred to external wallets within 54 minutes, and regulators cannot force the platform to make compensation under current regulations. The South Korean financial regulator also pointed out that the cryptocurrency trading industry has experienced frequent system failures in recent years. Data shows that from 2023 to September of this year, the five major exchanges experienced a total of 20 system failures, affecting more than 900 users and resulting in a cumulative loss of approximately 5 billion won. Upbit accounted for 6 of these failures, with losses amounting to approximately 3 billion won. The draft also proposes to raise technical security requirements and increase the maximum penalty for hacking incidents to 3% of annual revenue, the same as traditional financial institutions, higher than the current fixed limit of 5 billion won. Furthermore, Upbit's incident has sparked controversy over "delayed reporting." The platform detected the anomaly at 5:00 AM but only reported it to regulators at 10:58 AM, leading some lawmakers to question whether it intentionally waited until the merger proceedings between its parent company, Dunamu, and Naver Financial were completed before disclosing the information. Regulators are investigating the matter, but under the current framework, it is unlikely that severe penalties will be imposed.
▌Analysis: US SEC May Assess Regulatory Weight Given to Crypto Privacy Projects in Rule-Making Process
The US Securities and Exchange Commission (SEC) will hold a roundtable discussion on cryptocurrencies, financial surveillance, and privacy on December 15th. Zooko Wilcox, founder of the crypto privacy project Zcash, and others will participate. Liam Wright, editor-in-chief of CryptoSlate, wrote an analysis stating that the SEC may assess at this meeting how much regulatory weight it can give to crypto privacy projects in its rule-making process. If a consensus is reached that zero-knowledge proofs can meet compliance obligations, then this flexibility can be incorporated into the rules for digital asset brokerages, alternative trading systems, and custody. If the meeting splits into two camps, "privacy is a right" and "privacy fuels crime," the existing surveillance-oriented framework may be continued, pushing privacy advocates to court.
Blockchain Applications
▌ZKsync Announces It Will Cease Support for ZKsync Lite in 2026
According to Jinse Finance, ZKsync has announced plans to cease support for ZKsyncLite (i.e., ZKsync 1.0)—ZKsync's first ZK-rollup on Ethereum—in 2026. Currently, everything is normal, and no immediate action is required; ZKsyncLite will continue to operate normally. Funds remain safe, and withdrawals to L1 will continue to be supported throughout the discontinuation process. ZKsync will release a detailed discontinuation plan within the next year and will soon release specific details, timelines, and migration guidelines.
Jinse Finance reports that, according to official sources, ZKsync has announced plans to cease support for ZKsyncLite (i.e., ZKsync 1.0)—ZKsync's first ZK-rollup launched on Ethereum—in 2026. Currently, everything is normal, and no immediate action is required; ZKsyncLite will continue to operate normally. Funds remain safe, and withdrawals to L1 will continue to be supported throughout the discontinuation process. ZKsync will release a detailed discontinuation plan within the next year and will soon release specific details, timelines, and migration guidelines.
▌Prediction Market DeFi Layer Protocol Gondor Raises $2.5 Million in Pre-Seed Funding
Prediction market DeFi layer protocol Gondor has raised $2.5 million in pre-seed funding, with participation from Prelude, Castle Island Ventures, and Maven 11. Gondor will reportedly launch a protocol next week allowing users to borrow money using their Polymarket holdings as collateral and trade with 2x leverage.
▌Bank of America to Open Advisory "Recommendation" Channel for Crypto Assets
According to Reuters, Bank of America announced that starting January 5, 2026, wealth advisors at its Private Bank, Merrill, and Merrill Edge branches will be able to recommend crypto asset-related ETPs/ETFs to clients without any account asset threshold. Previously, only clients with sufficient assets could access Bitcoin ETFs since early 2024; this upgrade from "executing client instructions" to "providing allocation advice" represents a significant step forward.
▌Strategy CEO: Company's Current Dollar Reserves Can Support At Least 21 Months Without Selling Bitcoin
Strategy CEO Phong Le recently gave an interview to CNBC's "Power Lunch," explaining in detail the correlation between $MSTR stock and Bitcoin prices, how the company's dollar reserves address market FUD (fear, uncertainty, and doubt), key drivers of market volatility, and why Bitcoin's long-term prospects remain strong. Le clarified that the company's current dollar reserves can support at least 21 months without selling Bitcoin, which received a positive response from investors who appreciated its transparent communication and long-term strategic planning.
▌cbBTC Market Cap Surpasses $6.8 Billion, Circulating Supply Reaches 73,951 Coins
According to Dune data, Coinbase's Wrapped BTC (cbBTC) has reached a circulating supply of 73,951 coins. cbBTC's current market capitalization has surpassed $6.8 billion, ranking second in the Wrapped BTC market share with 24.8%, second only to wBTC.
▌Current Bitcoin Holdings in El Salvador are 7493.37 Coins
Data shows that El Salvador currently holds 7493.37 BTC, equivalent to approximately $672 million.
▌Net outflow of 1991.53 ETH from CEXs in the past 24 hours
According to Coinglass data, a total of 1991.53 ETH were net outflowed from CEXs in the past 24 hours, of which 1972.45 ETH flowed out from Binance.
▌Analysis: Ethereum's $1800 price range is one of the best accumulation areas
According to analyst @ali_charts' analysis using Ethereum cost base heatmaps, the $1800 price range for Ethereum appears to be one of the best accumulation areas before the bull market pushes towards $10,000.
Analysis: Ethereum Exchange Holdings Drop to Lowest Level Since 2015, Potentially Triggering Supply Tightening. Ethereum holdings on centralized exchanges have fallen to 8.7%, a record low since the network launched in 2015. Since July of this year, ETH balances on exchanges have decreased by 43%, primarily flowing to staking, restaking, Layer-2 networks, the Digital Asset Treasury (DAT), and long-term custody. Analysts point out that this unprecedented supply tightening environment could lead to price increases.
▌“1011 Insider Whale” is continuously adding to its Ethereum long positions, while placing a limit buy order for 11,450 ETH
According to AI Aunt's monitoring, “1011 Insider Whale” continues to go long on Ethereum, with its total holdings increasing to 22,827.14 ETH, worth $69.16 million, with an average opening price of $2,989.51 and a floating profit of $1.19 million. Ten minutes ago, it deposited another $10 million in margin and placed a limit buy order for 11,450 ETH ($34.39 million). If the order is filled, its holdings will exceed $100 million.
▌“Maji” cuts losses and closes out his ETH long positions before going long again with 2100 ETH
According to on-chain analyst Ai Yi's monitoring, ETH fell to $2900, and “Maji” cut his losses and closed out his ETH long positions, incurring a loss of $738,000; however, he went long again with 2100 ETH ($6.18 million). His account balance once rebounded to $3 million, but now only has $227,000 left.
Important Economic Developments
▌US Treasury Secretary Bessenter: US GDP growth will reach 3% this year
On December 8, US Treasury Secretary Bessenter stated that the US GDP growth rate this year will reach 3%.
According to CME's "FedWatch," the probability of the Federal Reserve cutting interest rates by 25 basis points in December is 86.2%, while the probability of keeping rates unchanged is 13.8%. The probability of the Fed cutting rates by a cumulative 25 basis points by January next year is 65.4%, the probability of keeping rates unchanged is 9.8%, and the probability of a cumulative 50 basis point cut is 24.8%. The US labor market is clearly cooling. The US unemployment rate has climbed to around 4%, reaching its highest level in recent years. Data from the U.S. Bureau of Labor Statistics (BLS) and the Federal Reserve Economic Data (FRED) series shows that monthly nonfarm payroll growth has slowed from post-pandemic levels to a more modest six-digit increase. Job openings and departures have also declined from their 2021-2022 peaks. Changes in the labor market affect risk appetite and liquidity conditions, and these changes are often reflected in the price movements of Bitcoin and cryptocurrencies more broadly. If labor market data remains stable while inflation remains high, investors infer that interest rates may remain high for an extended period. If unemployment rises and nonfarm payroll growth slows, the case for interest rate cuts strengthens. Cryptocurrencies are now also traded within the same ecosystem. When strategists discuss the pressures of the labor market on Bitcoin and cryptocurrencies, they typically describe two overlapping channels. The first is the growth channel. Rising unemployment, slowing hiring, and sluggish wage growth make markets more cautious about future earnings and default risks. In this environment, investors typically reduce the riskiest portions of their portfolios, such as small-cap stocks, volatile assets like Bitcoin, and altcoins. The second is the liquidity and interest rate channel. Similarly weak economic data could trigger investor panic and prompt central banks to adopt looser monetary policies. For Bitcoin and cryptocurrencies, the key is that a weak labor market means lower prices, and labor market data helps predict macroeconomic conditions. This data influences growth expectations, interest rate trends, and liquidity, which in turn affect the level of risk investors are willing to take.
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