Layer 2 networks built on Ethereum allow users to process transactions faster and at significantly lower cost while still relying on the main chain for security. By bridging assets from Layer 1 to networks such as Arbitrum, Optimism, or zkSync, users can trade, stake, and handle NFTs with reduced congestion and fees. This approach helps make DeFi platforms and NFT marketplaces more scalable and accessible for everyday crypto activity.

Session executives Chris McCabe and Alex Linton told Cointelegraph that AI-integrated devices could circumvent app-level encryption on phones and computers, jeopardizing private messaging. They highlighted limited user awareness and cited OpenAI's disclosure last month of a third-party analytics breach, while noting intensifying regulatory pressure on encrypted tools.

On December 31 2025, the Reserve Bank of India used its Financial Stability Report to warn that risks from stablecoins to macrofinancial stability exceed their benefits and to strongly advocate for central bank digital currencies instead. India has been piloting its own digital rupee since December 2022, while maintaining strict tax rules on crypto and refusing to recognize private coins as legal tender. The report also outlined expectations for lower gross bad loans in banks by March 2027 and highlighted rising stress among non-banking financial companies under various stress-test scenarios.

Trump Media and Technology Group said it will distribute a new digital token to DJT shareholders through Crypto.com, with one token per whole share at a future record date. The firm emphasized the asset is not equity or a security and may be non-transferable, with utility across Truth Social, Truth+ and Truth Predict.

South Korean prosecutors said on December 30 that 13 members of a Poipet, Cambodia-based organization were charged over a SpaceX-themed romance scam. The group allegedly took 1.93 billion won (about $1.3 million) between December 2024 and October 2025 using a counterfeit app, with 11 arrested and two indicted without detention.

On 31 December 2025, the Senate Banking Committee signaled plans to hold a mid-January markup on the CLARITY Act, reviving formal debate after prior talks stalled. The bill's earlier delays stemmed from disputes over token treatment, stablecoin limits, and anti-illicit finance safeguards. A bipartisan committee vote will be pivotal for advancing the measure to the Senate floor.

Bank of China stated it will begin paying interest on digital renminbi (e‑CNY) wallet balances from January 1, 2026, at rates aligned with current deposit policies. The move fits within the digital currency framework overseen by the People's Bank of China, and similar steps have been taken by other state‑owned banks.

Polymarket raised $2 billion in October 2025, while Kalshi closed $300 million in October and another $1 billion in December. PitchBook measured $55.94 billion in fintech funding for 2025, even as deal count fell 19% to 3,712. Bloomberg also reported Polymarket is pursuing an additional raise at a $12–$15 billion valuation.