Public companies holding cryptocurrency in their treasuries posted a median 43% stock decline year-to-date, underperforming Bitcoin's 7% drop and major equity indexes. More than 100 firms borrowed billions through convertible bonds to buy digital assets, creating mismatches between interest-bearing debt and non-yielding holdings. The financing structure has raised concerns about sustainability as volatility persists across the sector.

Federal prosecutors have requested a 12-year prison sentence for Terraform Labs co-founder Do Kwon following his guilty plea to orchestrating the TerraUSD collapse that wiped out $40 billion in market value. Kwon admitted to defrauding investors and concealing Jump Trading's role in supporting the stablecoin. His defense team is seeking a reduced five-year term, citing nearly three years already spent in detention in Montenegro. Sentencing is scheduled for December 11.

South Korea's Financial Services Commission is reviewing regulations to impose no-fault compensation requirements on cryptocurrency exchanges following a November hack at Upbit that involved $30 million in Solana-based tokens. The proposed framework would align virtual asset providers with traditional financial institutions in terms of liability and operational standards. More than 900 users were impacted by the breach, which saw over 104 billion tokens transferred to external wallets within one hour.

The Commodity Futures Trading Commission has authorized spot cryptocurrency products to trade on federally regulated U.S. futures exchanges for the first time. Acting Chairman Caroline Pham said the decision aims to provide American investors with secure, regulated domestic trading options rather than relying on offshore platforms. The authorization follows Congressional reforms enacted fifteen years ago to strengthen U.S. markets after the financial crisis.

Taiwan's Financial Supervisory Commission announced plans to introduce a locally pegged stablecoin by the second half of 2026, contingent on legislative approval of the Virtual Assets Service Act. Initial issuance rights will be restricted to regulated financial institutions under a framework inspired by EU MiCA regulations. The initiative positions Taiwan to modernize payment infrastructure and strengthen its role in the digital asset economy.

The U.S. Securities and Exchange Commission has halted applications from multiple ETF providers seeking to launch cryptocurrency funds with 3–5x leverage, exceeding the 200% regulatory cap. Warning letters cited provisions of the Investment Company Act of 1940, which limits fund exposure to 200% of value-at-risk. Analysts warn that such products amplify both gains and losses in volatile markets.

Strategy, the business intelligence firm co-founded by Michael Saylor, announced on December 1, 2025, the creation of a $1.44 billion cash reserve alongside an expansion of its Bitcoin holdings to 650,000 BTC. The cash reserve, funded through at-the-market stock sales, is designated to cover preferred stock dividends and interest obligations for 21 months. The company also revised its FY2025 earnings guidance in response to Bitcoin price volatility.

North Korean operatives could be working at up to 20% of cryptocurrency companies, according to Pablo Sabbatella, founder of Web3 audit firm Opsek and Security Alliance member. Between 30% and 40% of job applications at crypto firms may come from such operatives, who use stolen identities and freelance platforms to gain employment. The threat extends beyond financial theft to unauthorized access to critical infrastructure supporting major platforms.

U.S. authorities investigated Bitmain-manufactured Bitcoin mining hardware over potential remote manipulation and power grid vulnerabilities. The Department of Homeland Security-led inquiry resulted in detention and inspection of Antminer S21 and T21 units at multiple ports. Bitmain denied the allegations, stating it cannot remotely operate its machines and has no government connections.