Stablecoin

Reports indicate that U.S. Representatives Max Miller and Steven Horsford are allegedly working on a Digital Asset PARITY Act that would adjust cryptocurrency tax rules, including stablecoin transaction relief and deferred taxation of blockchain rewards. However, the bill and its provisions remain unconfirmed, and observers note similarities with earlier proposals from Senator Cynthia Lummis as questions persist about the measure’s authenticity and potential impact.

Euro-denominated stablecoins have exceeded $1 billion in combined value this year, with Circle's EURC leading and holders above 150,000. USDC's footprint widened as XDC supply crossed $200 million after a December jump, and quarterly CCTP transfers hit an all-time high in Q4 2025, pushing total volumes past $30 billion.

World Liberty Financial has put forward a proposal to allocate up to 5% of WLFI token reserves to support the USD1 stablecoin partnership, targeting strategic collaborations and liquidity incentives. The plan has sparked disagreement among token holders over potential effects on WLFI's price and the interests of investors, particularly with about 80% of tokens reported as locked. As of December 20, 2025, WLFI is priced at $0.13 with a market cap near $3.59 billion and a 45.58% drop over the previous 90 days, while trading volume has fallen sharply in the last 24 hours.

On 20 December 2025, a crypto user mistakenly transferred nearly $50 million in USDT to a scam-controlled wallet by copying a spoofed address from their transaction history. Investigators describe this as an address poisoning attack, where the malicious address closely mimicked a legitimate one, leading the victim to send a successful test payment before moving the full amount. Analysts note that the incident is part of a wider rise in onchain losses and highlights how behavioral exploits can bypass technical safeguards.

Updated December 20, 2025, Coinbase's 2026 Crypto Market Outlook adopts a restrained stance, comparing conditions to the mid‑1990s internet build‑out. It anticipates deeper institutional participation under frameworks such as the GENIUS and CLARITY Acts and projects stablecoin market cap could reach $1.2 trillion by 2028, while noting Bitcoin's open interest has declined.

Cardano's Midnight (NIGHT) saw trading activity surge over the last 24 hours, with volume up more than 68% to $3.53 billion, according to CoinMarketCap. The token rose 3.15% to $0.06866, ranging between $0.06389 and $0.07, while sentiment gauges showed the Fear and Greed Index at 27 and RSI at 63.68.

A crypto user mistakenly sent 49,999,950 USDT to a look‑alike address, an incident attributed to address poisoning, according to SlowMist. The funds were rapidly moved into ETH, split across wallets, and partly routed via Tornado Cash; on December 20, 2025, Cos shared the involved addresses. The wallet had been active about two years with frequent USDT transfers.

On 20 December 2025, Klarna entered a partnership with Coinbase enabling institutional investors to fund its lending operations using stablecoins. The arrangement routes capital on-chain into short-term, interest-free consumer loans, with blockchain settlement cited for faster cycles and transparency. The move reflects stablecoins’ shift toward financial infrastructure.

Gemini, joined by more than 125 organizations, has asked the U.S. Congress to retain the Genius Act's original language to preserve stablecoin reward programs. The coalition argues that curbing rewards would weaken competition and user incentives across platforms such as Gemini, Kraken, and Coinbase. The Genius Act was passed in June 2025.

Led by the Blockchain Association, 125 crypto and fintech organizations sent a letter on December 18, 2025 to Senate Banking leaders Tim Scott and Elizabeth Warren opposing efforts to widen the GENIUS Act's stablecoin yield ban beyond issuer payments. The coalition argued the move would suppress consumer rewards and shield traditional banks, and disputed Treasury's $6.6 trillion deposit-flight projection.