Japan's Financial Services Agency will require licensed cryptocurrency exchanges to maintain dedicated liability reserves starting in 2026. The reserves will enable platforms to compensate users immediately following security breaches, fraud, or operational failures. Reserve amounts will be calculated based on trading volume and incident history.

Binance faces a federal lawsuit filed Monday in North Dakota accusing the exchange of knowingly enabling Hamas to transfer funds before the militant group's October 7, 2023 attack on Israel. The complaint, brought by more than 300 victims and family members, names Binance, co-founder Changpeng Zhao, and senior executive Guangying Chen as defendants. Plaintiffs allege the exchange facilitated illicit transfers for Hamas and other U.S.-designated terrorist organizations over an extended period.

Families of victims from the October 2023 Hamas attack have filed a federal lawsuit against Binance and its founder Changpeng Zhao, alleging the exchange facilitated over $1 billion in cryptocurrency transactions to Hamas and other terror groups. The complaint, filed in North Dakota federal court on Monday, accuses the platform of deliberately evading U.S. sanctions and regulatory oversight through weak identity controls and pooled wallet systems. The lawsuit involves 306 American plaintiffs representing families affected by the attack that resulted in approximately 1,200 deaths and over 250 hostages.

Cryptocurrency markets have not fully priced the potential pace of Federal Reserve rate cuts under a Trump-aligned chair taking office in 2026, macro trader Alex Krüger said. Futures curves imply approximately 48 basis points of easing between late April and early December 2026. Krüger argues this falls short of the faster, larger cuts favored by Trump administration-aligned policymakers.

Galaxy Digital is negotiating agreements to provide liquidity on prediction market platforms Polymarket and Kalshi. The crypto infrastructure firm would function as a market maker, posting continuous buy and sell orders to deepen trading activity. CEO Mike Novogratz said the company is conducting small-scale market-making experiments, with broader liquidity provision expected in the future, according to Bloomberg.

Bitcoin traded around $87,000 as Asian stock markets opened higher on Tuesday, extending Wall Street's gains from the previous session. Regional equities advanced amid growing confidence that the Federal Reserve will cut interest rates at its December meeting. Fed Governor Christopher Waller signaled support for a rate reduction next month, while money markets now price in roughly a 90% probability of a December cut.

Japan's Financial Services Agency is developing legislation that would mandate cryptocurrency exchanges to maintain emergency reserves for potential liabilities. The bill is scheduled for parliamentary submission in 2026. While exchanges currently must store user deposits in cold wallets, no dedicated compensation reserves are required for incidents such as hacks or exploits.

Analysts have identified XRP, Bitcoin, and Dogecoin as assets of interest following Bitcoin's pullback from its recent peak. Market observers point to XRP's role in cross-border payment infrastructure, Bitcoin's institutional positioning, and Dogecoin's persistent community backing as factors driving attention at current price levels.