⚠️ Fitch Ratings Warns U.S. Banks on Crypto Exposure Fitch Ratings has issued a warning that it may negatively reassess the credit ratings of U.S. banks with significant exposure to cryptocurrencies.
While acknowledging that integrating digital assets—like stablecoin issuance and deposit tokenization—can boost fees, yields, and efficiency, Fitch emphasized the introduction of substantial risks. These include risks related to reputation, liquidity, operations, and compliance.
Fitch is concerned that banks involved in digital assets face challenges managing the high volatility of crypto values, the pseudonymity of owners, and the threat of loss or theft.
Although regulatory efforts are improving industry safety, the agency may reconsider the business models or risk profiles of heavily involved institutions, including major players like JPMorgan Chase and Bank of America.
Fitch also highlighted the potential for systemic risk posed by the rapid growth of the stablecoin market, especially if it expands enough to impact the broader financial system or the Treasury market. A rating downgrade by Fitch, one of the "Big Three" agencies, could increase banks' borrowing costs and undermine investor confidence. #USGovernment
🏦 U.S. Bank CEOs to Discuss Crypto Legislation with Senators The CEOs of major U.S. banks—including Bank of America's Brian Moynihan, Citigroup's Jane Fraser, and Wells Fargo's Charlie Scharf—are scheduled to meet with a bipartisan group of Senators on Thursday.
Organized by the Financial Services Forum, the meeting will focus on upcoming cryptocurrency market structure legislation.
Key discussion points will include:
Opposition to Stablecoin Interest: Bankers are expected to lobby against provisions that would allow for interest payments on stablecoins, which they view as a direct competitive threat to traditional bank deposits.
Bank Competitiveness: The role of banks in the digital asset sector.
Illicit Finance: Measures to prevent the use of cryptocurrencies for illegal activities, a topic previously discussed in Senate hearings.
Senators involved in crafting new crypto regulatory frameworks have been invited, reflecting the banks' push to shape the final legislation. #USGovernment
📉 Bitcoin Firm Twenty One Plunges on NYSE Debut The Bitcoin $BTC investment company Twenty One, supported by industry heavyweights like Cantor Fitzgerald and Jack Mallers, saw a significant loss on its first day of trading on the New York Stock Exchange (NYSE).
The firm's stock price dropped by 26.42%, settling at $10.5 upon its market debut.
In related news, the Twenty One Capital team had previously announced a plan to move over 43,500 $BTC BTC from a custodial account into their own custody. This transfer is part of the listing settlement process, and the company intends to update its proof of reserves once the transfer is finalized. #BTC
📉 $BTC Bitcoin Investment Firm Twenty One Sees Sharp Decline on NYSE Debut Bitcoin investment company Twenty One, which is backed by major names including Cantor Fitzgerald and Jack Mallers, experienced a significant drop on its first day of trading on the New York Stock Exchange (NYSE).
The company's stock price declined by 26.42% upon its debut, trading at $10.5. $BTC Prior to the listing, the Twenty One Capital team had disclosed plans related to their Bitcoin holdings. As part of the listing settlement process, they intended to transfer over 43,500 BTC from a custodial account back into their own custody account. The firm committed to updating the corresponding proof of reserves immediately after the completion of this transfer. #BTC
Global publicly listed companies (excluding miners) aggressively accumulated$BTC Bitcoin last week, resulting in $968.89 million in net purchases. The bulk of this inflow came from Strategy (formerly MicroStrategy), which invested $962.7 million to acquire 10,624 BTC at ∼$90,615 per coin, bringing its massive total holdings to 660,624 BTC.$BTC Other notable corporate buyers included Japanese fashion brand ANAP, which added 54.5 BTC for $5.56 million, and Hong Kong-based health company Prenetics, which bought 7 BTC for $630,000. Overall, corporate Bitcoin reserves now stand at 904,570 BTC, valued at ∼$82.94 billion, representing 4.53% of the total circulating supply. #BTC
Market sources indicate that traders anticipate limited monetary easing from the Federal Reserve, projecting that cumulative interest rate cuts will total less than 75 basis points (bps) by the end of 2026. This expectation suggests that, while the Fed may continue to reduce rates in the coming year, they are not priced for a rapid or aggressive cutting cycle. A total cut of less than 75 bps implies just two or possibly three 25-bps cuts across the entire period, reflecting a belief that the Fed will remain cautious, balancing a cooling labor market against concerns over persistent inflation risks. This conservative outlook may temper expectations for a significant influx of liquidity into risk assets. #Binance
Bitfinex reports that $BTC Bitcoin is facing structural fatigue and weak spot demand, contrasting sharply with the S&P 500 nearing all-time highs and suggesting a decoupling from traditional risk assets. Despite rebounding from lows,$BTC BTC is confined to a narrow ∼$84,000 to ∼$91,000 range. On-chain data reveals that over 7 million BTC are held at an unrealized loss, echoing the mid-cycle weakness seen in early 2022. $BTC Critically, spot demand is deteriorating: US Bitcoin ETFs are recording consistent outflows, and traders are selling into rallies rather than accumulating. This widespread lack of fresh buying interest, despite modest capital inflows, suggests a fragile market far from a healthy recovery. #BTC
The UK's Financial Conduct Authority (FCA) announced plans to reform several regulations to streamline market investments for UK citizens. The core change involves scrapping the requirement for firms to provide complex Key Information Documents (KIDs) for retail investment products. Instead, investment firms will offer a new, less prescriptive "product summary." This shift aims to move away from confusing, jargon-heavy templates to provide clearer, more engaging information tailored to consumers. The goal is to boost the UK's investment culture by empowering more consumers to invest with greater confidence and better understanding of costs, risks, and potential returns. The final rules are scheduled to take full effect by June 2027. #UK
On December 8, a major $ETH Ethereum holder identified as the '1011 Insider Whale' reduced their ETH long exposure amidst market fluctuations. According to monitoring by Lookonchain, the whale sold 4,513 ETH, taking profits from their substantial position. Despite this reduction, the address still retains a very large holding of 50,001 ETH$ETH . This remaining stake maintains a significant unrealized profit of $3.4 million. The move is viewed as strategic profit-taking by a sophisticated trader, potentially signaling caution or rebalancing in response to the recent price volatility in the Ethereum market. #ETH