Philadelphia Fed President Patrick Harker said on Dec. 21 that November's positive inflation reading may have been distorted by data collection issues tied to the government shutdown in October and early November, potentially understating 12-month price growth, BlockBeats reports citing Jin10. While the Bureau of Labor Statistics reported November CPI rose 2.7% year-on-year, estimates adjusted for measurement challenges place inflation closer to the widely expected 2.9% to 3.0% range. Harker added his main concern about cutting rates stems from his view that the neutral interest rate is higher than generally assumed and that the economy already shows momentum to sustain solid growth next year, though the neutral rate cannot be directly observed and must be inferred from economic performance.

Federal Reserve official Beth Hammack said on Dec. 21 there is no need to adjust interest rates in the coming months after three consecutive cuts, BlockBeats reports citing The Wall Street Journal's Take On the Week podcast. Hammack opposed recent rate cuts, stating she is more concerned about persistently high inflation than potential labor market weakness. Her baseline expectation is to keep rates at their current level at least until spring, until clearer evidence shows inflation moving back toward the target or more substantial job market softening. While not a voting member on the rate-setting committee this year, she will be one next year.

U.S. Senator Cynthia Lummis said she will not seek re-election in 2026, according to a report by The Block. Lummis, who has been a prominent advocate for cryptocurrency-related legislation in the Senate, was first elected in 2020.

Strategy (MSTR.O), which holds significant Bitcoin reserves, faces potential removal from MSCI benchmarks and other major stock indices, a move that could reduce equity demand by up to $9 billion, Reuters reports. MSCI proposed in October to exclude companies whose digital asset holdings exceed 50% of total assets from its global benchmark indices, arguing such firms resemble investment funds, while affected companies contend they are operating businesses building innovative products and call the proposal discriminatory against the crypto sector. MSCI is conducting a public consultation and will announce its final decision on January 15, with analysts noting other index providers may follow if digital asset treasury companies are excluded.

A Brooklyn court filed charges against Ronald Spektor on Dec. 20 over an alleged Coinbase impersonation scam totaling about $16 million, BlockBeats reports. Spektor allegedly posed as Coinbase support to defraud about 100 users and now faces 31 counts. Police seized about $105,000 in cash and $400,000 in crypto.

The Federal Reserve on December 19 requested public comment on a proposal to offer limited "payment accounts" to certain financial institutions, BlockBeats reports. The accounts would allow eligible institutions to use the Fed's payment services for clearing and settlement while excluding broader benefits available to banks, such as interest earnings and credit facilities. Fed Governor Christopher Waller said the accounts could "support innovation" while maintaining payment system safety. Under the proposal, the payment accounts would be distinct from master accounts, would not earn interest or provide Fed credit facilities, and would be subject to balance caps; Waller first suggested the concept in October last year.