U.S. Senator Elizabeth Warren raised national security concerns over decentralized exchanges, specifically PancakeSwap, according to a December 17 Decrypt report. Warren cited PancakeSwap’s alleged role in trading the Trump-linked stablecoin USD1 and in processing funds tied to North Korean cyberattacks. In a letter sent this week to Treasury Secretary Scott Bessent and Attorney General Pam Bondi, she requested responses by January 12 on regulatory gaps in DEX oversight and safeguards against crypto-related conflicts of interest. Blockchain analyses from Allium and TRM Labs were cited as linking PancakeSwap to laundering funds from the February $1.4 billion Bybit hack.

On December 17, the Bank of Canada said it will approve only high-quality stablecoins with a strict 1:1 peg backed by central bank money, according to BlockBeats. Governor Tiff Macklem stated that approved stablecoins must be fully collateralized with high-quality liquid assets, including treasury bills and government bonds. The policy aims to protect financial stability and consumers, with new regulatory frameworks expected to be finalized by 2026.

The U.S. Securities and Exchange Commission closed its investigation into the Aave protocol on Dec. 17 after four years, BlockBeats reports. Aave founder and CEO Stani.eth said in a social media post the process required significant effort and resources to protect Aave, its ecosystem and the broader DeFi sector. He said DeFi has faced unfair regulatory pressure in recent years and expressed optimism about a new era for developers.

President Trump is scheduled to interview Federal Reserve Governor Christopher Waller for the position of Federal Reserve chair on Wednesday, according to the Wall Street Journal as cited by Cointelegraph. Waller has previously called for balanced oversight of stablecoin regulation and custody in public remarks. The Federal Reserve chair leads the U.S. central bank and oversees the direction of monetary policy.

The U.S. Federal Deposit Insurance Corporation (FDIC) has proposed a stablecoin application framework rule as part of its implementation of the GENIUS Act, according to CoinDesk. The proposal would establish a formal process for banks to apply to engage in stablecoin-related activities, marking the first U.S. stablecoin regulation to arise from this legislation, CoinDesk reported.

Wall Street Journal reporter Nick Timiraos, often described as a "Fed whisperer", said on Dec. 16 that the latest U.S. labor data show the unemployment rate rose to 4.564% in November, up 12 basis points from 4.440% in September. He noted that Fed Chair Jerome Powell said last week the central bank expects its policy stance to keep unemployment broadly stable or "only rise another one or two tenths of a percentage point", and that the new jobs report supports the rate cuts already implemented but on its own is not enough to trigger panic leading to a January cut. After today's U.S. employment and retail sales data, U.S. interest-rate futures are still pricing in two cuts in 2026, while the implied probability of a 25-basis-point Fed rate cut in January next year rose slightly from 24.4% to 31%, BlockBeats reports.

Hong Kong's Securities and Futures Commission on Dec. 16 added "Hong Kong Stablecoin Exchange" to its alert list of suspicious virtual asset trading platforms. The entity is suspected of operating without a license and engaging in virtual asset-related fraud, the SFC said. The platform falsely claimed joint establishment by Hong Kong Exchanges and Clearing, the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange, but has no connection to any of the three venues.

The UK Financial Conduct Authority opened a consultation on proposed cryptocurrency regulation rules on Dec. 16, with a comment deadline of Feb. 12, 2026, BlockBeats reports. The proposal covers authorization and disclosure requirements for firms operating in crypto markets, safeguards against market manipulation, requirements for cryptoasset trading platforms, obligations for intermediaries, policies for staking and lending arrangements, parameters for DeFi services, and prudential regulation for participants. David Geale, head of payments and digital finance at the FCA, said the goal is to put in place mechanisms that protect consumers, support innovation and foster trust, noting the regulator has made significant progress toward its crypto regulation plan and is helping companies meet standards and complete registration while awaiting further legislation.