Good Morning,

Here's a quick preview of today’s content: Bitcoin mixer tied to illicit funds taken down by Euro authorities, China intensifies crackdown on crypto, Sony Bank to issue US stablecoin for games and anime, Crypto czar David Sacks rejects conflict of interest claims, and so much more

Happy Tuesday - Let’s dive in.

Market Snapshot

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• Crypto markets sink as December opens with volatility and leveraged washouts

  • Bitcoin drops to $84K and Ether slides over -6% as the “Yearn incident” rattles sentiment

  • Liquidations top $646M, erasing last week’s gains and wiping out $144B in crypto market cap

  • Crypto ETPs rebound with $1B in inflows after a four-week slide, even as spot BTC ETFs shed $3.5B in November

  • XRP posts its strongest week amid broad ETF inflows

• CME ETH futures overtake BTC in trading volume, signaling shifting institutional positioning

Prediction Markets

• Bettors on Polymarket are predicting who will Trump nominate as Fed Chair?

• Track and trade live odds on any event, only on Polymarket

Headline Roundup
^{_{The major headlines driving crypto markets}}

• Coinbase C-Suite sued for billions over insider trading scheme (DC)

• Crypto retail hit hard as Strategy ETFs plunge 80% (BBG)

• Elon Musk calls Bitcoin a ‘physics-based currency’ - see the clip here 

• Strategy establishes $1.44B cash reserve (CD)

• Tom Lee's BitMine acquires 97K ETH (CD)

• Kalshi and Polymarket post strongest months with $10B volume (TB)

• Crypto czar David Sacks rejects conflict of interest claims (TB)

• Strategy purchases another 130 BTC for $11.7M (TB)

• Bitcoin’s BOJ stumble shows dovish Fed isn’t enough for crypto (BBG)

• Crypto exchange volume drops to $1.6T (TB)

• GTA dev warns AI could harm games (DC)

• HashKey leads Hong Kong’s crypto market (CD)

• $25B crypto lending market led by ‘transparent’ players (CT)

• Largest Solana treasury recruits ParaFi Capital exec (TB)

• Ripple gets nod to expand payment activities in Singapore (CT)

• Mining profitability falls for fourth consecutive month (CD)

• Former Gryphon exec to lead Trump Media (CT)

• Villarreal CF and Playbet renew sponsorship deal (CD)

• SushiSwap’s Jared Grey steps down as Head Chef (TD)

M&A Announcements

• Goldman Sachs agrees to acquire Innovator Capital Management, an issuer of a Bitcoin fund, for $2B (CT)

• Gleec acquires the full Komodo Platform ecosystem for $23.5M, including its tech stack, brand, token infrastructure and team (CD)

Launches

• Vanguard opens Bitcoin and crypto ETFs (BM)

• Sony Bank to issue US stablecoin for games and anime (CD)

• Grayscale launches first spot Chainlink ETF (CT)

• Trump Media’s Cronos inches closer to public debut (DC)

• Kalshi launches tokenized prediction market shares (BL)

• Bitnomial debuts first regulated spot crypto market (CD)

• Ripple expands payment activities to Singapore (DC)

• YZiLabs launches boardroom coup at BNC (TB)

Regulation

• China intensifies crackdown on crypto and stablecoins (CD)

• FDIC says GENIUS regulations heading for proposal this month (CD)

• Japan cuts crypto tax to 20% uniform rate (CD)

• Republicans urge action on market structure bill over debanking claims (CT)

• House lawmakers detail grievances over 'Choke Point 2.0' (CD)

• Israel’s central bank signals stablecoin oversight (CD)

• South Korea pushes for draft stablecoin bill (CT)

• Canada eyes stablecoin rules as Scotiabank flags market impact (CD)

• Most of Coinbase’s enforcement requests come from outside US (CT)

• Kalshi appeals Nevada loss (DC)

Cybersecurity

• Bitcoin mixer tied to $1.5B illicit funds taken down by Euro authorities (FM)

• Yearn Finance suffers $9M exploit (TD)

• Spear phishing is North Korean hackers’ top tactic (CT)

Extra Reads

• Buterin warns that quantum computers could threaten Ethereum’s cryptography sooner than expected and outlines how the network can prepare safely - Here’s why Vitalik says quantum computing could break ETH’s cryptography

• The GENIUS Act promises safer, fully reserved dollar stablecoins and faster payments, but by steering issuers toward T-bills and cash, it may also hardwire a new demand engine for US debt - Does GENIUS turn stablecoin issuers into buyers of US debt?

Chart of the Day

Bitcoin supply on exchanges falls to a new low

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*DISCLAIMER: Investment advice provided by Autopilot advisers LLC, an SEC registered investment advisor. Past performance does not guarantee future results. Investing carries risks including the risk of the loss of principal. Performance doesn’t include fees. See more here.