Stablecoin

Terraform Labs founder Do Kwon was sentenced to 15 years in a New York federal court on December 12, 2025. The case involves fraud linked to TerraUSD and Luna, whose 2022 collapse erased about $40 billion in market value. He pleaded guilty in August to wire fraud and conspiracy, and prosecutors sought additional financial penalties.

On a Tuesday in late 2025, Poland's government re-approved the same crypto-asset regulation bill that President Karol Nawrocki vetoed, intensifying an institutional clash over how to implement MiCA-style rules. Prime Minister Donald Tusk and key ministers argue the law is needed to counter security threats, while critics warn its strict licensing, KNF powers and penalties could damage a market serving around three million users and exceed EU requirements. The deadlock leaves Poland as the only EU state without national MiCA-aligned crypto rules ahead of the July 1, 2026 compliance date.

On December 11, 2025, World, Sam Altman's biometric identity project, unveiled an app update adding end-to-end encrypted chat and in-chat crypto payments. The announcement said World Wallet supports USDC, EURC, wrapped Bitcoin and Ethereum, plus 100+ tokens, and introduces virtual accounts for send, deposit and withdraw. Altman and CEO Alex Blania outlined privacy features at a San Francisco event.

YouTube has introduced an option for eligible U.S. creators to receive their earnings in PayPal's U.S. dollar–pegged stablecoin PYUSD, according to PayPal executive May Zabaneh. The feature relies on PayPal's existing payouts infrastructure, reflects Big Tech's gradual embrace of stablecoins, and follows broader moves by PayPal and other firms to expand real-world uses for blockchain-based payment assets.

Binance said on Thursday it added fee-free USD1 pairs with Ether, Solana and BNB, further integrating the Trump family–linked stablecoin. The exchange will convert remaining BUSD collateral to USD1 at a one-to-one rate within a week, while USD1’s market value stands at $2.7 billion and is issued on Ethereum and BNB Chain.

YouTube now allows US creators to receive payouts in PayPal's PYUSD stablecoin. The feature is live for US-based users, with PayPal converting earnings into PYUSD for those who opt in. Google confirmed support for PYUSD payouts, while PayPal handles the crypto settlement end-to-end.

YouTube has introduced PayPal USD (PYUSD) as a payout method for eligible US creators, allowing them to receive channel earnings directly in the stablecoin. The move, confirmed by PayPal executive May Zabaneh and a Google spokesperson, is aimed at speeding up payouts and broadening payment flexibility for creators.

On December 11, the U.S. Financial Stability Oversight Council removed digital assets from its list of financial vulnerabilities in the 2025 annual report. The report also highlights dollar‑backed stablecoins as supportive of the U.S. dollar's global role. Market effects remain unclear, and no direct price impact was verified in the document.

On December 12, Senator Tim Scott said he had made progress on a cryptocurrency bill after meeting with senior bank leaders, including Bank of America CEO Brian Moynihan. The initiative aims to clarify digital asset market rules, expand SEC and CFTC oversight, and curb stablecoin incentive distortions linked to loopholes in the GENIUS Act, according to Scott.

US lawmakers are pushing toward federal crypto rules, but negotiators say the treatment of stablecoin yield is the main sticking point. The debate escalated in mid-August after the Bank Policy Institute warned that permissive designs could shift up to $6.6 trillion of deposits into stablecoins. The House has advanced the Digital Asset Market Clarity Act as the Senate crafts a parallel package.