PA Daily | Coinbase expands its business to become an "all-in-one exchange"; Ethereum is expected to raise the Gas limit to 80 million by 2026

Today’s Top News Highlights:

ETHGas completes $12 million seed round financing, led by Polychain Capital

Glassnode: Bitcoin oscillates between support at 81,000 and sell pressure at 93,000; breaking below 81,000 may trigger further selling

Coinbase advances “All-in-One Exchange” strategy, expanding into stocks, prediction markets, Solana DEX, and more

Ethereum is expected to raise the Gas cap to 80 million in January 2026

Bitcoin spot ETF saw a total net inflow of $457 million yesterday, with Fidelity FBTC leading at $391 million

Data: Ethereum exchange supply drops to the lowest level since 2016, reducing short-term selling pressure

Macro

Bitcoin Lightning Network capacity hits record high

According to Cointelegraph, as major crypto exchanges widely adopt and continuously optimize Lightning Network, the Bitcoin Layer 2 network’s capacity has reached a new all-time high. Data from Bitcoin Visuals shows that on Monday, Lightning Network capacity reached 5,606 BTC, breaking the record set in March 2023. The platform Amboss also reports that on Tuesday, capacity peaked at 5,637 BTC, worth about $49 million. Data indicates that after a year of capacity decline, capacity surged in November and December due to more Bitcoin being added, enabling faster transactions at lower costs. Currently, there are 14,940 Lightning nodes, below the peak of 20,700 on March 20, 2022; the number of channels between nodes is 48,678, also below the 2022 peak. The data shows that while the amount of Bitcoin added to the Lightning Network is increasing, usage measured by nodes and channels has not necessarily grown proportionally.

US SEC issues “Statement on Broker-Dealer Custody of Crypto Asset Securities”

The US SEC Division of Trading and Markets issued a “Statement on Broker-Dealer Custody of Crypto Asset Securities.” The statement clarifies the applicability of Rule 15c3-3 of the Securities Exchange Act to crypto assets classified as securities (“crypto asset securities”) held by broker-dealers for clients. It states that if broker-dealers take the following measures, the division will not oppose their recognition of physical possession or control over crypto asset securities in client accounts: 1. Access and transfer capability: Ability to directly access and transfer crypto asset securities on relevant distributed ledger technology; 2. Technical risk assessment: Establish and implement written policies and procedures to evaluate the characteristics and risks of distributed ledger technology and networks recording asset ownership; 3. Risk mitigation: If aware of significant security or operational issues, weaknesses, or other risks to their business from custody of such assets, they cannot recognize possession; 4. Private key protection: Establish policies, procedures, and controls aligned with industry best practices to prevent theft, loss, or unauthorized use of private keys needed to access and transfer assets, ensuring no one other than the broker-dealer (including clients or third parties) can access private keys and transfer assets; 5. Emergency plans: Develop written policies, procedures, and arrangements to ensure the secure ongoing custody and transfer of crypto asset securities during blockchain failures, 51% attacks, hard forks, or other disruptions, or in cases of liquidation or bankruptcy.

US SEC Commissioner Seeks Public Comments on Crypto Asset Trading on National Securities Exchanges and Alternative Trading Systems

SEC Commissioner Hester Peirce issued a statement, along with a set of FAQs published by the Division of Trading and Markets, seeking broad market input on crypto asset trading on National Securities Exchanges (NSE) and Alternative Trading Systems (ATS). The focus is on trading and clearing arrangements for crypto asset securities and “security-non-security crypto asset” trading pairs. Peirce said SEC staff are ready to work with market participants to facilitate compliant trading on regulated platforms. She emphasized the need for clearer market structure rules to protect investors and maintain market order while avoiding unnecessary regulatory burdens on innovation. She expressed particular concern about whether Regulation ATS (established in 1998) and Regulation NMS are outdated in the context of crypto assets and blockchain technology. Key questions include: how to lower entry barriers for crypto asset securities and trading platforms, encourage innovation; whether current Reg NMS and Reg ATS impose disproportionate compliance costs on crypto trading; whether to establish a dedicated Form ATS or modify existing disclosure regimes for “crypto ATS”; whether crypto ATS information should remain non-public or be subject to SEC review or public disclosure; whether to retain quarterly reporting via Form ATS-R in a blockchain and on-chain data traceability environment; how to clarify the method for converting non-USD assets to USD for compliance; how to handle confidentiality of trading information, system risk controls (Rule 15c3-5), and system compliance (Reg SCI); and how to prevent regulation from hindering individual developers, automation, or decentralized trading. Peirce stressed these issues will serve as important references for SEC crypto policy development, and the agency is open to broader suggestions to improve NSE and ATS regulatory frameworks.

US CFTC Acting Chair Caroline Pham to Join MoonPay as Chief Legal and Administrative Officer

According to The Block, after her term at the CFTC ends, Acting Chair Caroline Pham will join crypto finance firm MoonPay as Chief Legal and Administrative Officer. Previously, Pham stated she planned to resign once a new CFTC Chair was confirmed. MoonPay CEO Ivan Soto-Wright posted on X that “Pham’s leadership at the CFTC has shaped policies that expanded financial freedom and advanced crypto innovation. Now, we will turn these advances into tangible results for global users and partners.” MoonPay said that after stepping down as Acting Chair, Pham will serve as Chief Legal and Administrative Officer. The Biden administration’s nominated CFTC Chair Mike Selig is expected to have a confirmation hearing this week. MoonPay’s spokesperson said that since Selig has not yet been confirmed as CFTC Chair, Pham’s exact start date is not yet determined.

US Federal Reserve Withdraws 2023 Guidance on “Restricting Uninsured Banks from Participating in Crypto Business”

According to crypto journalist Eleanor Terrett, the Federal Reserve has decided to revoke a 2023 guidance that effectively prevented uninsured banks from becoming Fed members and engaging in crypto-related activities. This guidance was the basis for the Fed’s rejection of Custodia Bank’s main account application.

Standard Chartered Launches Blockchain-Based Tokenized Deposit Solution

According to Techinasia, Standard Chartered has launched a blockchain-based tokenized deposit solution for Ant International, supporting real-time transfers in HKD, offshore RMB, and USD. The bank partnered with global fintech company Ant International, deploying the technology on Ant’s Whale Explorer platform. This launch is part of the Hong Kong Monetary Authority’s “Digital Hong Kong Dollar” project (Project Ensemble), aiming to promote distributed ledger technology in the region. Ant International is the first client to adopt this new solution, enabling 24/7 fund management and liquidity transfer. Both Standard Chartered and Ant International are part of the EnsembleTX group.

( Viewpoints

Arca CIO: Many new investors mistakenly believe investing in Bitcoin alone captures blockchain growth opportunities

Arca CIO Jeff Dorman said there is still a significant disconnect between Bitcoin as an investment target and the overall growth of the blockchain ecosystem. Rapid growth in stablecoins, real-world asset tokenization (RWA), and DeFi is happening, but Wall Street and fintech discussions focus more on issuing and fee collection using stablecoins and RWA rather than investing itself. Meanwhile, most investors remain focused on Bitcoin, leading to limited research and discussion on token value on Wall Street. Although some institutions have begun token research, such as Cantor Fitzgerald’s reports on certain tokens, token investing has not yet become mainstream, and sales and promotion efforts are lackluster. Many new investors mistakenly think investing in Bitcoin alone will capture blockchain growth, but Bitcoin’s growth is not directly linked to DeFi, stablecoins, or RWA. Nonetheless, Bitcoin still dominates capital flows and price movements. It is unclear when this will change, but investors tend to buy during price dips, overlooking potential in other blockchain sectors.

Glassnode: Bitcoin oscillates between support at 81,000 and sell pressure at 93,000; breaking below 81,000 may trigger more selling

According to Glassnode, Bitcoin’s price remains in a fragile zone, constrained by high supply pressure at higher levels, increasing realized losses, and weakening demand. Recently, price faced resistance near $93,000 and gradually declined to $85,600, with market structure showing that the dense supply zone between $81,000 and $120,000 continues to suppress rebounds. It failed to break through the 0.75 quantile line (~$95,000) and the short-term holder cost basis (~$101,500), limiting upward momentum. Current demand near the real market value of $81,000 provides support, preventing further decline. On-chain data shows realized loss supply has risen to 6.7 million BTC, the highest in this cycle, with 23.7% of circulating supply in loss, including 10.2% long-term holders and 13.5% short-term holders. The time pressure of loss supply is intensifying, with some investors likely to sell at a loss due to waning confidence, adding to market sell pressure. Currently, about 360,000 BTC are held by loss sellers; if price breaks below $81,000, more loss sellers may emerge. Spot demand is brief and selective; Coinbase remains relatively stable, but Binance and other exchanges see fluctuating traffic, with no clear accumulation trend. Institutional Bitcoin inflows are sporadic, not indicating sustained demand. Futures market shows clear de-risking, with no leverage-driven downward pressure; funding rates are neutral, leverage has decreased but not supported price rises. Options markets remain range-bound, with short-term volatility further compressed post-FOMC, and long-term volatility stable. The 25-delta skew indicates downward risk is priced but stabilizing. Options volume shows traders tend to sell puts to collect premiums while maintaining some downside protection. Expiry of options on December 19 and 26 limits price movement, with market structure expected to readjust after large expiry events at year-end. Overall, Bitcoin oscillates between support at $81,000 and sell pressure at $93,000; breaking key cost bases (like the short-term holder basis at $101,500) could attract new liquidity and break the current range.

Analysis: If MSCI excludes crypto treasury companies, it may trigger $15 billion forced crypto sell-off

According to Cointelegraph, if MSCI proceeds with removing crypto treasury companies from its indices, these companies may be forced to sell up to $15 billion worth of cryptocurrencies. The group “BitcoinForCorporations,” citing a verified preliminary list of 39 companies, predicts that after adjusting for market cap, these companies’ total circulating market value would be $1.13 trillion, with an outflow of $10 to $15 billion. They also estimate, based on Morgan Stanley analysis, that if Strategy is removed from MSCI, the outflow could reach $2.8 billion. Strategy accounts for 74.5% of the adjusted total market cap of affected companies. Analysts estimate the total potential outflow from all affected companies could reach $11.6 billion. Such a large outflow would increase selling pressure in the crypto market, which has been trending downward for nearly three months. At press time, the petition from “BitcoinForCorporations” has gathered 1,268 signatures. Previously, MSCI announced plans to exclude companies with more than 50% digital assets from its main indices. The final decision on this proposal will be announced on January 15, 2026, and take effect after the review in February of the same year.

) Project Updates

Polygon Foundation: Polygon PoS issue resolved, but block explorer may still show delays

The Polygon Foundation posted on X that today Polygon PoS experienced a fault affecting some RPC nodes. However, the network remained online, continuously generated blocks, and no on-chain interruptions occurred. The team quickly identified the fault and pushed a patch to node operators to restore full service. Validators are syncing data and reaching quorum. During this period, some RPC nodes remain fully operational, and transactions are flowing normally. Before nodes complete sync, block explorer may still show delays. Additionally, according to the latest updates on the Polygon status page, the issue has been resolved, and all Polygon PoS functions are restored. The block explorer may still show delays until nodes finish syncing.

WLFI community launches voting on “Using partially unlocked treasury funds to promote USD1”

The Trump family crypto project WLFI posted on X that a new proposal has been launched to “use some of the unlocked WLFI treasury funds as incentives to promote USD1,” and community voting is now open. Over the past three weeks, WLFI has used USD1 to buy back about $10 million worth of WLFI tokens, listed major spot trading pairs on Binance, promoted USD1 usage in CeFi and DeFi scenarios, and advanced the finalization of the WLFI token unlock schedule. This proposal aims to support ongoing new growth initiatives.

Brazilian stock exchange B3 to launch proprietary tokenization platform and stablecoin

According to CoinDesk, Brazil’s main stock exchange B3 plans to launch a tokenization platform next year and issue its own stablecoin to deepen its involvement in crypto. The platform will enable assets to be tokenized and traded on the exchange, sharing liquidity pools with traditional markets. To support settlement, B3 also plans to issue a stablecoin, which will serve as a payment and clearing tool in the tokenized environment, reducing reliance on existing cash processes. The stablecoin is expected to be pegged to the Brazilian real. B3 is also expanding into crypto derivatives, developing products including Bitcoin, Ethereum, and Solana options, as well as event-based contracts linked to crypto prices. These tools are currently under review by Brazil’s securities regulator, the CVM.

Coinbase advances “All-in-One Exchange” strategy, expanding into stocks, prediction markets, Solana DEX, and more

According to The Block, Coinbase is aggressively expanding beyond crypto trading into a range of new products, aiming to become an “all-in-one exchange” integrating multiple asset classes on a single platform. The new offerings include stock trading, prediction markets, Solana token DEX, derivatives, custom branded stablecoins, and payment infrastructure, representing one of its most ambitious product expansions in 13 years. Coinbase is launching stock trading via Coinbase Capital Markets for US users, with plans to add thousands of other stocks in the coming months. It is also preparing for stock perpetual futures, enabling non-US users to access US stocks efficiently, with plans to expand access early next year. Although tokenized stocks are not yet live, Coinbase plans to launch an institutional platform called Coinbase Tokenize, with more details expected in 2026. The company is collaborating with prediction platform Kalshi to launch event-based contracts and plans to add more partners. Coinbase is expanding in-app DEX trading to include Solana-based tokens, integrating Jupiter, the largest Solana DEX aggregator, into the Coinbase interface. It states that millions of assets on Solana and its own Base network are now accessible by default, with plans to expand DEX integration to more networks. Coinbase has launched a branded stablecoin allowing companies to issue tokens backed by flexible collateral (including USDC), supported at a 1:1 ratio by USDC and other USD stablecoins, not legal tender. It has also applied for a national trust company license with the OCC, still under review. Coinbase is extending its developer platform with APIs covering custody, payments, trading, and stablecoins. It emphasizes open payment standards x402, collaborating with partners like Cloudflare to develop the x402 Foundation. In derivatives, Coinbase has introduced simplified futures and perpetual futures trading within its main app, expanding access. It also launched Coinbase Advisor, an AI financial assistant integrated into apps, allowing users to ask questions, build portfolios, and receive personalized recommendations, with early access to beta testers. Additionally, Coinbase announced its “All-in-One” on-chain app, Base, is now available in over 140 countries. It is also expanding enterprise financial services with Coinbase Business, now fully available to eligible US and Singaporean companies, providing crypto-native alternatives to traditional banking and payment infrastructure. The product enables startups and small businesses to send and receive funds globally, manage crypto assets, earn USDC rewards, and automate financial workflows. Coinbase states that soon, companies will access the same expanded trading features available on its retail platform.

Ethereum is expected to raise the Gas limit to 80 million in January 2026

According to Cointelegraph, Ethereum network throughput will increase again next month, with developers planning to raise the gas limit from 60 million to 80 million in January. Christine Kim, Vice President at Galaxy Digital, summarized the Monday core developer meeting, noting Nethermind representatives said developers should prepare to push the gas limit higher after the next BPO hard fork on January 7. However, Ethereum Foundation engineer Barnabas Busa pointed out that before increasing the block gas limit again, two client-side optimizations are needed: execution layer Blob response improvements and consensus layer maximum Blob flag settings. Participants will meet again on January 5 to confirm when to raise the gas limit after the second BPO hard fork. The first BPO hard fork on December 9 increased blob capacity by 66%; the second scheduled for January 7 will increase it by another 66%. Ethereum developers and researchers have agreed on a goal to raise the network’s gas limit to 180 million by the end of 2026.

ChainOpera AI accused of copying open-source project Nofx’s old code

Open-source project NoFx developer @Web3Tinkle posted on X accusing ChainOpera AI of unauthorized use of its open-source code. @Web3Tinkle states that ChainOpera AI deployed an old version of its Nofx AI trading OS on testnet a month ago, which still bears the Nofx branding, with nearly identical homepage copy, and has modified the UI and replaced logos. The developer said their team previously tried to contact the other party via private messages but received no reply. They emphasize support for open-source principles in crypto but stress that use, deployment, and improvement should follow transparency, attribution, and respect, not direct copying. Previously, in December 2024, ChainOpera AI completed a $17 million seed round led by IDG Capital.

( Important Data

A major whale transferred $3.64 million worth of SHIB to OKX, having previously bought 17.4% of total 37.8 ETH used to acquire SHIB

On-chain analyst Yu Yan monitored that, in 2020, a “top whale” used only 37.8 ETH (~$13,700) to buy 103 trillion SHIB (~17.4% of total supply). Nine hours ago, it transferred 469 billion SHIB (~$364,000) into OKX. At its peak in 2021, this whale’s 103 trillion SHIB was worth $9.1 billion. Most of these tokens remain unsold; it still holds 96.684 trillion SHIB (~16.4%), valued at $72.6 million.

The “1011 Insider Whale” has an unrealized loss of $73.18 million

On-chain analyst Yu Yan reports that the “$230 million long whale” (the “1011 Insider Whale”) has not added to its position in the past two days and still holds nearly $700 million long. However, as the market declines, its unrealized loss has reached $73.18 million. It holds 191,000 ETH (~$540 million) with an entry price of $3,167, now at a floating loss of $64.28 million, with a liquidation price of $2,083. It also holds 1,000 BTC (~$8.615 million) with an entry price of $91,506, at a floating loss of $535,000. Additionally, it holds 250,000 SOL (~$3.083 million) with an entry price of $137.5, at a floating loss of $3.55 million.

Three whale wallets today deposited a total of 37.1 million USDC to increase HYPE tokens

OnchainLens reports that whales are accumulating HYPE on Hyperliquid, with three wallets depositing a total of 37.1 million USDC today to buy HYPE tokens. A newly created wallet “0x23A” deposited 7.1 million USDC at a price of $25.59 to buy 277,420 HYPE. Whale “0xE86” deposited 10 million USDC (total 15 million USDC in two days), acquiring 414,997 HYPE (~$10.19 million). This whale still has 5.7 million USDC available for further purchases and has 501,494 HYPE (~$12.3 million) staked. Whale “0x5Ae” deposited 20 million USDC and placed an order to buy HYPE at $15.

Bitcoin spot ETF saw a total net inflow of $457 million yesterday, with Fidelity FBTC leading at $391 million

According to SoSoValue data, yesterday (December 17, US Eastern time), Bitcoin spot ETFs had a total net inflow of $457 million. The ETF with the largest single-day inflow was Fidelity’s FBTC, with $391 million, bringing its total net inflow to $12.363 billion. The second was BlackRock’s IBIT, with $111 million in one day, and a total net inflow of $62.632 billion. The ETF with the largest single-day outflow was Ark Invest and 21Shares’ ARKB, with $36.9629 million outflow, and a total net inflow of $1.651 billion. As of press time, the total net asset value of Bitcoin spot ETFs is $112.574 billion, with an ETF asset ratio (market cap relative to total Bitcoin market cap) of 6.57%, and total net inflows reaching $57.727 billion.

A major whale multi-signature wallet lost $23.7 million due to private key leak

According to Pidun, a whale’s multi-signature wallet was hacked due to private key leakage, resulting in a loss of about $27.3 million. The hacker laundered $12.6 million (~4,100 ETH) through Tornado Cash and holds about $2 million in liquid assets. The attacker also controls the victim’s multi-signature wallet, which on Aave holds a leveraged long position: collateralized with $25 million worth of ETH, and borrowed 12.3 million DAI.

Data: Ethereum exchange supply drops to lowest since 2016, reducing short-term sell pressure

Cointelegraph reports that CryptoQuant data shows Ethereum exchange supply has fallen to the lowest level since 2016, indicating increased trader caution and reduced short-term sell pressure.

) Investment/Funding/Acquisitions

Harbor completes $4.2 million strategic round, led by Susquehanna Crypto and Triton Capital

AirSwap founder Michael Oved announced the launch of Harbor, a next-generation decentralized trading platform, in partnership with former THORChain core engineer Pluto. Harbor focuses on native asset cross-chain trading, positioning as high-performance, chain-agnostic DeFi liquidity infrastructure, aiming to provide professional-level matching and scalability for wallets and applications. The project completed a $4.2 million strategic round led by Susquehanna Crypto and Triton Capital, with supporters including Auros, Kronos, and Selini market makers.

Moon Pursuit Capital launches $100 million market-neutral crypto fund, focusing on stable returns

According to CoinDesk, crypto investment firm Moon Pursuit Capital announced a $100 million market-neutral quantitative fund designed to deliver risk-controlled returns across cycles. The fund employs algorithm-driven strategies, including Bitcoin accumulation at lows and momentum trading in altcoins; its previous fund returned nearly 170% since April 2024. The new fund will operate under multi-jurisdictional structures to enhance global compliance and tax efficiency.

ETHGas completes $12 million seed round, led by Polychain Capital

According to The Block, ETHGas completed a $12 million seed round led by Polychain Capital and launched Ethereum’s first block space futures market, attracting about $800 million in non-cash liquidity commitments from validators and block builders. The platform allows trading execution rights for up to 64 blocks in advance, aiming to improve yields, stabilize Gas costs, and charge a 5% fee on transactions, gradually advancing Ethereum’s “real-time execution” architecture.

US publicly listed VivoPower plans to acquire Ripple Labs equity for $300 million

According to CoinDesk, Nasdaq-listed VivoPower (stock code: VVPR) is expanding its Ripple-related strategy through a new joint venture, aiming to acquire hundreds of millions of dollars in Ripple Labs equity, providing investors with indirect exposure to nearly $1 billion in underlying XRP assets. The company announced on Tuesday that its digital assets division, Vivo Federation, was entrusted by South Korean asset manager Lean Ventures to initially purchase $300 million worth of Ripple Labs equity. Based on current XRP prices, VivoPower estimates this stake represents about 450 million XRP tokens, worth roughly $900 million. The structure does not directly buy XRP; instead, Lean Ventures plans to establish a dedicated investment vehicle holding the Ripple Labs equity purchased by Vivo Federation, targeting Korean institutional and accredited investors. VivoPower states it has received Ripple’s approval to buy preferred shares and is negotiating further acquisitions with existing institutional shareholders. Under this arrangement, VivoPower will not use its own balance sheet funds but will earn through management fees and performance shares. If the initial $300 million entrusted amount is reached, the company aims for a net economic return of $75 million within three years.

Institutional Holdings

Canaan Inc. announces extension of $30 million buyback plan to 12 months

PR Newswire reports that Canaan Inc. (NASDAQ: CAN) has authorized its board to repurchase up to $30 million of ADS or Class A common stock over the next 12 months using existing cash. The company will execute the buyback via open market, private placement, or block trades, complying with the Securities Exchange Act of 1934 and internal trading policies, with timing depending on market conditions. The previous six-month buyback plan, initiated on May 27, has expired, with a total of 6.5864 million ADS repurchased for about $4.9 million, including 1.5053 million ADS (~$1.5 million) from November 19-27. The company may adjust the plan’s scope and terms as needed.

Japanese listed company TORICO plans to raise approximately $30.17 million to purchase Ethereum

According to CoinDesk, Tokyo Stock Exchange Growth Market-listed company TORICO, which operates platforms like “Manga Zenkai Dot Com,” announced on December 17 that it signed a capital business cooperation agreement with Mint Town to expand its Web3 gaming platform business. Under the agreement, TORICO will raise about 4.7 billion yen (~$30.17 million) through funds managed by Mint Town and plans to use the proceeds entirely to purchase Ethereum. Through this cooperation, the investment fund operated by Mint Town will become TORICO’s largest shareholder, holding approximately 23.36% voting rights.

SpaceX’s Bitcoin holdings shrink by over $300 million from all-time high

According to Arkham, since SpaceX’s Bitcoin holdings peaked at $1.03 billion on October 7, the company’s assets have shrunk by over $300 million due to Bitcoin price declines. Currently, SpaceX holds just over 8,000 BTC, valued at about $692 million.