Italian authorities have set December 30, 2025 as the final deadline for virtual asset service providers to submit authorization applications under the Markets in Crypto-Assets Regulation framework. Operators that fail to file by this date must cease operations and terminate client relationships. Law Decree 95/2025 extended the original June 30 cutoff by six months to allow firms additional preparation time.

Italy's financial regulator Consob has mandated that Virtual Asset Service Providers obtain Crypto-Asset Service Provider authorization under the EU's Markets in Crypto-Assets Regulation or cease operations by December 30, 2025. Operators that fail to secure certification by the deadline will be prohibited from serving Italian customers and must return user assets. Providers submitting applications before December 30 may continue services during review, with full compliance required by June 30, 2026.

The European Commission has proposed granting the European Securities and Markets Authority direct oversight of all crypto asset service providers in the bloc. The proposal would replace the current passporting system with centralized licensing, similar to the U.S. Securities and Exchange Commission's model. Officials say the shift addresses regulatory fragmentation and inconsistent standards across member states.

The International Monetary Fund published a 56-page departmental paper on December 2, 2025, warning that foreign-currency stablecoins can accelerate currency substitution in economies with weak institutions. Approximately 97% of the $300+ billion stablecoin market references the U.S. dollar, with concentration in USDT and USDC issuance. The fund recommends harmonized legal definitions, strict reserve standards, and cross-border supervisory coordination to prevent jurisdictional arbitrage.

Italy's securities regulator Consob has set a December 30, 2025 deadline for crypto providers to secure authorization under the EU's Markets in Crypto-Assets regulation or cease operations. Firms currently registered as Virtual Asset Service Providers must transition to MiCAR-compliant Crypto-Asset Service Providers by the deadline or wind down their Italian business. Providers that submit authorization applications by December 30 may continue serving customers while awaiting regulatory decisions, with provisional operations ending no later than June 30, 2026.

JPMorgan analysts project the U.S. stablecoin market will grow to approximately $700 billion in the coming years, significantly below the White House's $2-4 trillion target for 2028-2030. Teresa Ho, Head of U.S. short-duration strategy at JPMorgan, expressed doubt about rapid multi-trillion dollar expansion despite positive momentum following the GENIUS Act. The sector surpassed $300 billion in total market supply after the legislation passed in July.

The International Monetary Fund published a comprehensive stablecoin assessment on December 5, 2025, warning that inconsistent national regulations are creating structural obstacles for oversight and cross-border payments. The fund called for harmonized definitions, uniform reserve requirements, and coordinated supervision as the market exceeds $300 billion. Divergent national frameworks allow issuers to operate from jurisdictions with lighter oversight while serving users in stricter markets, undermining authorities' capacity to monitor reserves and compliance.

Financial executives from Citadel Securities, Coinbase, Galaxy, and BlackRock revealed sharp disagreements over tokenization regulation during a Thursday SEC Investor Advisory Committee meeting. The session followed a Wednesday letter from Citadel Securities recommending stricter SEC oversight of DeFi protocols handling tokenized securities. Crypto advocates pushed back, arguing such rules are impractical for decentralized systems.