Mainland Chinese companies seeking to develop real-world asset (RWA) token businesses in Hong Kong have seen activity stall after seven financial industry associations jointly issued a risk alert on Dec. 11 explicitly barring domestic participation in virtual currency and RWA token issuance and trading, Yicai reports via BlockBeats. Industry insiders said inquiries from mainland firms about Hong Kong RWA projects have plunged by more than 90%, with many previously discussed deals now on hold. Related concept stocks fell in response, with Langxin Group and GCL Energy Technology dropping roughly 50% from recent highs, while some companies have begun exploring real data asset (RDA) projects as an alternative.

Paxos has applied to the U.S. SEC for clearing agency status, co-founder and CEO Chad Cascarilla said at the Solana Breakpoint conference on Dec. 11, BlockBeats reports. The designation would enable Paxos to directly custody and natively issue on-chain stocks and bonds, allowing users to hold real underlying assets rather than derivatives. Cascarilla said Paxos aims to move traditional assets on-chain and continue expanding in stablecoins and asset tokenization, including USDG growth and gold tokenization products, adding that public blockchains could become a unified global venue for asset trading and significantly improve market accessibility and liquidity.

On Tuesday, December 11, Australia's securities regulator, ASIC, announced a pivotal series of exemptions designed to significantly simplify the distribution of stablecoins and wrapped tokens for businesses. This move eliminates the need for intermediaries to hold separate, often costly, licenses and permits the use of pooled accounts, provided robust record-keeping is maintained. The regulatory update broadens previous relief, specifically removing the requirement for an Australian Financial Services (AFS) license for intermediaries dealing with these digital assets. This strategic decision by ASIC explicitly aims to foster innovation and stimulate growth within Australia's burgeoning digital asset and payments landscape, signaling a more accommodating regulatory environment for the sector.

The Office of the Comptroller of the Currency said on Dec. 11 that some of nine large U.S. banks restrict or deny services based on lawful activity such as crypto, rather than financial risk. The review covered JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One Financial, PNC Bank, TD Bank and Bank of Montreal, with at least some imposing special limits or heightened scrutiny. The agency said the Dec. 11 release is only a first phase, with thousands of complaints still under review, and Comptroller Jonathan V. Gould said it aims to end the "weaponization of finance" while planning to hold banks accountable. Last month the OCC confirmed major banks may hold crypto on balance sheets to pay blockchain fees for other permitted activities, and on Dec. 10 it said banks can process "riskless principal transactions" tied to crypto assets.

On December 11, cryptocurrency exchange Gemini announced it had secured approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate as a Designated Contract Market (DCM). This significant regulatory milestone allows Gemini to launch its new prediction market platform, Gemini Titan.Gemini Titan will initially offer classic binary event contracts, structured as straightforward 'yes/no' propositions on future events. The exchange has confirmed its strategic intent to expand the platform's offerings into other CFTC-regulated derivatives markets, including crypto futures, options, and perpetual contracts, marking a crucial step in its broader derivatives strategy.Further details reveal that Gemini originally applied for a DCM license on March 10, 2020. Notably, that initial application did not explicitly outline Gemini's intention to introduce a prediction market platform. A Designated Contract Market (DCM) is a regulatory classification for trading platforms registered and overseen by the CFTC, ensuring adherence to specific operational and compliance standards.

The U.S. Senate is in a high-stakes sprint to pass a comprehensive cryptocurrency market structure bill before its impending holiday recess. With only days remaining, lawmakers face intense pressure to bridge critical partisan divides on the proposed legislation, which aims to establish clear regulatory frameworks for the digital asset industry. Senator Cynthia Lummis (R-Wyoming) is spearheading efforts to release an updated draft this week, pushing for its consideration next week despite ongoing amendments sought by Democratic colleagues. The outcome of this legislative push is pivotal; failure to advance the bill could prolong regulatory uncertainty, while its passage would mark a significant step towards mainstreaming crypto within a defined legal structure, potentially impacting market sentiment and investment.

The Federal Reserve's December 11 dot plot shows a median projection of 25 basis points in cumulative rate cuts for 2026, BlockBeats reports. Among 19 officials, seven projected no cuts, four saw 25 basis points, four saw 50 basis points, two saw 75 basis points, one saw 100 basis points, and one anticipated 150 basis points.

Japan's Financial Services Agency outlined a plan to move crypto asset regulation from the Payment Services Act to the Financial Instruments and Exchange Act, which governs investment and securities markets, according to a Financial System Council working group report released on Dec. 10. Key changes include stricter disclosure requirements for IEOs such as project core team details, third-party code audits and self-regulatory organization input, as well as mandatory issuer identification and token distribution disclosures regardless of decentralization level. The framework would expand enforcement against unregistered platforms including overseas and DEX-like operators, explicitly prohibit insider trading in line with EU's MiCA and South Korean rules, while Japan's government separately considers a unified 20% tax rate on crypto trading profits and the FSA voiced cautious views on derivatives tied to overseas crypto ETFs, describing the underlying assets as "not ideal."