Daily Crypto Briefing – December 19, 2025

The crypto market showed mixed signals today as regulatory developments dominated headlines while Bitcoin struggled to maintain momentum above $88,000. Key developments include major lawsuits, regulatory confirmations, and bullish long-term price predictions.

Top Stories

Terraform Labs Liquidator Sues Jump Trading for $4 Billion The liquidator overseeing Terraform Labs' collapse has filed a massive lawsuit against Jump Trading, alleging the firm secretly propped up TerraUSD while misleading markets and profiting from the eventual collapse. Jump Trading denies the allegations, calling it a "desperate attempt" to shift blame.

Michael Selig Confirmed as CFTC Chair The Senate confirmed pro-crypto lawyer Michael Selig to lead the CFTC, ending a prolonged leadership vacuum and signaling renewed momentum for crypto-friendly regulation. Selig's appointment puts crypto market structure at a regulatory turning point.

Bitcoin Price Targets Reach $1.4 Million by 2035 New analysis suggests Bitcoin could rise to $1.4 million per coin by 2035 as a base case scenario, with even higher bull case projections. Meanwhile, Citigroup issued a more conservative but still bullish target of $143,000 for Bitcoin.

Regulation

Policy Developments

• Crypto Clarity Act Markup Confirmed for January: David Sacks confirmed the long-awaited crypto market structure bill will see committee markup in January
• Fed Advances "Skinny" Master Account Plan: The Federal Reserve is seeking public input on streamlined banking access for crypto firms
• Rick Rieder Fed Chair Interview: BlackRock's Bitcoin-friendly Rick Rieder is being interviewed for Fed chair at Mar-a-Lago

Legal Actions

• Coinbase Sues Three States: The exchange filed lawsuits against Connecticut, Michigan, and Illinois over prediction market regulation attempts
• SEC Seeks Bans for FTX Executives: The SEC is pursuing multi-year officer and director bans for Caroline Ellison, Gary Wang, and Nishad Singh

Markets

Price Action

• Bitcoin: Trading around $88,000, up 1.4% as Bank of Japan rate hikes failed to trigger risk-off sentiment
• Ethereum: Rose 4.1% to $2,953, with traders using historic leverage levels
• Market Sentiment: CryptoQuant warns of demand exhaustion signaling potential bear market transition

Institutional Activity

• ETF Flows: Bitcoin ETF IBIT ranks sixth in 2025 fund flows despite negative returns
• Corporate Treasury: BitMine accumulated $229M in ETH this week alone

Technology

Blockchain Developments

• Ethereum Hegota Upgrade: Developers revealed the next upgrade following Glamsterdam, merging execution and consensus improvements
• Quantum Resistance: Aptos proposed quantum-resistant signatures while Solana also moves to harden against quantum threats
• Cross-Chain Integration: TRON integrated with Base network enabling cross-chain TRX access

DeFi Updates

• Hyperliquid Competition: Weekly outflows topped $430M as competitors tighten race
• Synthetix Launch: The protocol unveiled a perpetual DEX on Ethereum mainnet

Companies

Exchange Developments

• Coinbase Expansion: Launched stocks and prediction markets in "everything exchange" push
• DraftKings Entry: Sports betting giant entered prediction markets with CFTC-approved app
• Bybit UK Launch: The exchange officially launched in the UK after regulatory reset

Corporate Activity

• Klarna Partnership: The fintech firm partnered with Coinbase to raise USDC-denominated institutional funding
• Metaplanet ADRs: Japanese Bitcoin treasury company opened to US investors via sponsored ADRs

Quick Hits

• Arthur Hayes argues Fed's new RMP tool [masks renewed money printing](https://cointelegraph.com/news/arthur-hayes-