Crypto policy creates friction for Hong Kong's one country, two systems principle. Credit: Jimmy Chan via Pexels. Key Takeaways The People’s Bank of China has said that it considers stablecoins illegal under China’s crypto ban. The latest crackdown serves as a blow to Hong Kong’s stablecoin ambitions. Hong Kong-listed crypto stocks tumbled on Monday morning. When Hong Kong launched its new stablecoin regime earlier this year, it was meant to usher in a new golden age of regulated crypto for greate ...

Core Insights - Bitcoin experienced a 5% decline in the past 24 hours, contributing to a 21% drop over the past month, with current trading around $86,800, down 31% from its all-time high [1] - Total crypto market liquidations surged to $637 million, with $568 million attributed to long positions [2] Market Dynamics - The recent sell-off was driven by a rapid, momentum-driven drop that led to significant long liquidations, amplifying selling across both spot and derivatives markets [3] - Comments from Strategy CEO Phong Le regarding the potential sale of Bitcoin to fund dividend payments have sparked fear among investors, altering perceived supply dynamics [4][5] Investor Sentiment - Despite concerns raised by Le's comments, traders on the prediction market Myriad assign only a 5% chance of Strategy selling any Bitcoin before year-end [6] - Tether's potential insolvency, particularly if Bitcoin and gold decline by 30%, has also contributed to market volatility, as concerns about liquidity premia and margin risk have increased [7]

Market Overview - The current market sentiment is positive despite some headwinds such as rising inflation and unemployment [1][2] - The Federal Reserve's actions on interest rates are anticipated to impact consumer behavior and market performance [2] AI Industry Insights - The AI sector, particularly companies like Nvidia, is expected to continue growing, although there are concerns about stock valuations and earnings performance [3][4] - Nvidia's recent earnings report led to a stock price decline, indicating potential weakness despite strong sales prospects [4] Investment Strategies - Investing in the "picks and shovels" of the AI industry, such as HVAC and data centers, is recommended as a more stable approach [5][8] - The HVAC ETF has shown a year-to-date increase of over 25%, outperforming sectors like crypto and data servers [7][8] Specific Company Performance - Comfort Systems and Amphenol are highlighted as top picks within the HVAC sector, with Comfort Systems up 120% and Amphenol up 100% this year [6] - The HVAC industry is characterized as a reliable sector driving growth for AI-related companies [8][15] Cryptocurrency Market - Bitcoin has experienced a 20% decline this month, but there is potential for recovery, suggesting it may be a buying opportunity [9][10] - The historical volatility of stocks like Amazon is referenced to illustrate the potential long-term value of holding onto investments like Bitcoin [10][12] Economic Indicators - Rising costs in essential areas such as food, housing, and education are impacting consumer affordability, despite lower gasoline prices [20][21] - The administration's focus on job creation and economic growth is seen as a potential driver for market opportunities, although challenges remain for consumers [22]

Core Insights - Tether's USDT stablecoin continues to function effectively despite market volatility, maintaining its peg to the U.S. dollar and demonstrating significant profitability, earning over $10 billion in the first nine months of 2025 [1] - Concerns regarding Tether's transparency and the stability of its reserves have led to a downgrade by S&P Global, reflecting traditional finance's skepticism towards the crypto sector [2][3] - Tether's CEO, Paolo Ardoino, defends the company's position, asserting that it is overcapitalized and challenges the credibility of traditional financial systems [4] Group 1: Company Performance - Tether has generated more than $10 billion in profit during the first nine months of 2025, comparable to major financial institutions like Goldman Sachs and Morgan Stanley [1] - The company has maintained its USDT stablecoin's peg to the U.S. dollar, allowing for redemption at any time, which highlights its operational stability [1] Group 2: Market Concerns - S&P Global downgraded Tether's USDT rating from 4 to 5, indicating increased concerns about the stability of the stablecoin amid a bear market [2] - The downgrade was influenced by the opacity of Tether's reporting and the fact that bitcoin now constitutes over 5% of the reserves backing USDT, raising fears of undercollateralization if bitcoin prices decline [3] Group 3: Leadership and Strategy - Tether's CEO, Paolo Ardoino, expressed confidence in the company's model, claiming it is the first overcapitalized company in the financial industry and criticizing traditional finance for its failures [4] - Angel investor Jason Calacanis suggested that Tether should sell its bitcoin holdings, invest solely in U.S. treasuries, and undergo multiple audits by American firms to enhance transparency [5]

Core Insights - The crypto industry's IPO window may be closing, prompting Grayscale Investments to act strategically by pursuing a public listing now [1][3] - Grayscale's revenue has decreased by 20%, with net income for the first nine months of 2023 reported at $203.3 million on revenue of $318.7 million, down from $223.7 million and $397.9 million respectively in the same period last year [2][5] Group 1: Financial Performance - Grayscale reported a net income of $203.3 million and revenue of $318.7 million for the nine months ending September 30, 2023, reflecting a decline from the previous year's figures of $223.7 million in net income and $397.9 million in revenue [2] - The company's revenue has declined by 20% compared to the same period last year [1] Group 2: Strategic Considerations - The timing of Grayscale's IPO filing is seen as a strategic move to navigate potential political uncertainties ahead of the 2026 midterm elections [3] - Analysts expect a revival in the IPO market following the end of the longest government shutdown in U.S. history, creating a narrow window for companies like Grayscale to go public [3] Group 3: Market Position and Regulatory Environment - Grayscale manages approximately $35 billion in assets and has established itself as a significant player in the crypto industry [5] - The company achieved a landmark court victory against the SEC in 2023, which facilitated the approval of spot bitcoin ETFs, marking a regulatory milestone for the industry [5] - Grayscale is among several crypto companies, including Circle and Gemini, that have taken advantage of the regulatory environment shaped under the Trump administration to go public [4]

VC activity has remained muted, but some crypto companies have bagged big cheques | Source: CCN / Hameem Sarwar Key Takeaways VC activity is rising in crypto companies but remains far below bull-market levels. Seven companies landed mega-rounds. |A more favourable U.S. regulatory environment and rising valuations are boosting confidence. Crypto venture capital (VC) investment has remained subdued in the closing months of 2025, extending a two-year slump despite rising digital asset prices and impr ...

Market Overview - U.S. stock futures showed slight gains, with the Dow Futures at 47,542, up 52 points or 0.11%, and S&P 500 Futures at 6,835, up 0.10% [1] - November was a challenging month for equities, with major indexes experiencing a pullback, particularly in megacap tech stocks, leading to a 2% drop in the Nasdaq [1] Federal Reserve Expectations - Market sentiment improved as traders increased expectations for a Federal Reserve rate cut in December, with futures pricing indicating over an 80% probability of a quarter-point cut [2] AI and Tech Stocks - Renewed optimism in AI stocks contributed positively to market sentiment, although trading momentum was paused due to the Thanksgiving break [3] - Tech stocks exhibited mixed performance, with notable movements in companies like NVIDIA, Cleanspark, and SanDisk, reflecting ongoing interest in the semiconductor and storage sectors [8] Trading Disruptions - A cooling system failure at CME Group's CyrusOne data centers caused a significant disruption, halting futures and options trading for several hours, impacting liquidity across multiple markets [3][5] Commodity Markets - Gold futures increased, hovering near $4,160 an ounce, benefiting from lower borrowing-cost expectations and a favorable outlook for a December rate cut [9] - Oil prices continued to decline, with Brent crude trading above $63 per barrel, marking the longest losing streak since May 2023, as traders remain cautious ahead of the OPEC+ meeting [10] Future Market Projections - Wall Street banks have begun releasing forecasts for the S&P 500 in 2026, with Deutsche Bank projecting a target of 8,000, while HSBC and JPMorgan expect a more moderate target of around 7,500 [12]

Core Viewpoint - Major U.S. exchanges express concern over the SEC's consideration of exemptions that could accelerate the introduction of tokenized stocks into mainstream markets, fearing it may distort market structure and favor lightly regulated crypto firms [1][2]. Group 1: Concerns from Major Exchanges - The World Federation of Exchanges (WFE) submitted a letter to the SEC, highlighting alarm over platforms offering tokenized U.S. equities without the protections of traditional securities [2][5]. - Tokenized instruments are marketed as equivalents to listed shares but lack legal ownership rights, voting power, and clear channels for investor redress [2][3]. - The WFE warns that broad exemptions could lead to unregulated crypto platforms diverting trading activity from traditional markets, undermining price discovery and creating discrepancies between tokenized and underlying share prices [5][6]. Group 2: SEC's Consideration and Framework - SEC Chairman Paul Atkins is developing an "innovation exemption" framework to allow crypto firms to launch blockchain-based products under conditional relief while the SEC finalizes long-term digital-asset regulations [2][3]. - The SEC is reviewing proposals for tokenized stocks, bonds, and partnership interests, with major financial institutions seeking approval for these products [3][4]. - Tokenized stocks aim to represent traditional shares on a blockchain ledger, facilitating global trading, faster settlement, and fractional access [3][4]. Group 3: Market Structure and Systemic Risk - Some tokenized structures replicate a stock's economic performance without granting actual ownership, while others attempt to place registered equity directly on-chain [4]. - The WFE cautions that tokenized equities could disrupt clearinghouse systems designed to manage netting and collateral, potentially increasing systemic risk [6].

'A rainy island with a hostile tax system is a hard sell': Crypto industry reacts to UK Chancellor's budget statement https://t.co/guL39ACcJW ...

The UK’s latest budget, combined with ongoing regulatory reforms, indicates a clear shift toward more stringent oversight of the digital-asset sector, according to Azariah Nukajam, head of UK Compliance at crypto exchange Gemini. Nukajam said that recent developments—including the Draft Statutory Instrument (SI), the introduction of the Cryptoassets Order in May 2025, and the upcoming CARF tax-transparency regime—show that the UK is pushing ahead with a more “traditional finance”-style regulatory environm ...