The U.S. Securities and Exchange Commission will introduce a crypto 'innovation exemption' in January, SEC Chair Paul Atkins said on Dec. 2. Atkins said the commission plans to modify rules to reduce litigation and support initial public offerings. The announcement signals a potential shift in the SEC's regulatory approach toward digital assets under the new leadership.

Federal Reserve policymakers show the widest divergence in long-term interest rate projections since the central bank began publishing such estimates in 2012, Bloomberg reports. The split has emerged after rate cuts exceeding one percentage point, with officials now publicly debating whether to cut rates again next week and the path forward.

The Organisation for Economic Co-operation and Development projects the Federal Reserve will gradually reduce its key interest rate to 3.25%-3.5% by the end of 2026, according to a Dec. 2 report. The OECD raised its U.S. growth forecast to 2% for 2025 (from 1.8%) and to 1.7% for 2026 (from 1.5%). The organization warned that potential U.S. tariff increases could slow global growth in 2026 and described the nation's fiscal policy trajectory as unsustainable, while noting upside potential if AI investment expands further.

Russia's Central Bank is prepared to relax regulatory definitions that currently restrict cryptocurrency trading to highly qualified investors, Deputy Finance Minister Ivan Chebeskov said on Dec. 2. The central bank and Finance Ministry are discussing loosening crypto trading restrictions within the sanctioned nation. The policy shift comes as Russian financial authorities face pressure from international sanctions.

Federal Reserve Governor Michelle Bowman told House lawmakers on Dec. 2 she will work to establish new rules for banks and stablecoin issuers to ensure healthy competition among Wall Street institutions, fintech firms, and crypto companies, Bloomberg reports. In prepared testimony for the House Financial Services Committee hearing, Bowman said her regulatory responsibility includes encouraging responsible innovation while enhancing supervisory capabilities to address safety and soundness risks from technological advances. She indicated she will collaborate with other agencies to develop capital and diversification requirements for stablecoin issuers under the GENIUS Act, which mandates formal registration and equivalent dollar reserves for such entities.

The probability of a 25-basis-point rate increase by the Bank of Japan in December surged to 85% from 50%, while odds of holding rates steady fell to 14%, PolyBeats data show as of Dec. 2. The shift followed remarks by BOJ Governor Kazuo Ueda in Nagoya on Dec. 1, where he said the central bank would "weigh the pros and cons of raising the policy rate" at its Dec. 18-19 meeting. Ueda noted yen weakness "may push up inflation more than in the past," pivoting from his October focus on external uncertainties including U.S. trade policy risks.

Bank of Japan Governor Kazuo Ueda signaled a possible rate increase later this month, driving Japan's 10-year government bond yield to 1.879% on Dec. 2—the highest close since June 2008, BlockBeats reports. The announcement pushed U.S. 10-year Treasury yields to 4.095% from below 4% mid-last week, as Japan holds approximately $1.2 trillion in U.S. Treasuries as of September. Wall Street analysts warn that rising Japanese bond yields could trigger capital outflows from U.S. assets, potentially disrupting the declining trend in Treasury yields that has supported lower mortgage rates and equity market gains this year.

China's central bank has classified stablecoins as virtual currency rather than criminal contraband, targeting operational, intermediary, and settlement activities, according to Zhao Binghao, Director of the Financial Technology Law Research Institute at China University of Political Science and Law, cited by 21st Century Business Herald on December 2. The classification aims to block currency substitution and cross-border arbitrage channels at the source. Domestic stablecoin operations face multidimensional regulatory pressure, with industry consensus pointing to continued contraction of development space.

Japan's government has endorsed a proposal to replace the current progressive crypto profit tax—which can reach as high as 55%—with a flat 20% rate, aligning it with taxation on stocks and other financial instruments, Nikkei Asia reports. The Financial Services Agency plans to submit the tax reform proposal to parliament in early 2026. The Japan Blockchain Association has advocated for the change for nearly three years, citing the existing high tax burden as a barrier to domestic crypto market growth. The new tax framework is set to be implemented alongside stricter investor protection measures, including a ban on trading based on non-public information and enhanced disclosure requirements.