PA Daily | Bank of America Recommends Clients Allocate 1%-4% to Crypto Assets; UK Officially Brings Cryptocurrency under Legal Protection

Today’s Key News Highlights:

The UK officially incorporates cryptocurrencies and other digital assets under legal protection, defining them as a new form of personal property.

Trump strongly hints at Hassett as the next Federal Reserve Chair.

Probability of a 25 basis point Fed rate cut in December is 89.2%.

CME launches Bitcoin Volatility Index, similar to VIX in the stock market.

Binance co-founder He Yi appointed as co-CEO, platform users near 300 million.

Jupiter launches DTF platform; inaugural project HumidiFi (WET) token sale starts tonight.

Bank of America recommends wealth management clients allocate 1%–4% to crypto assets.

Macro

Reuters: Strategy in talks with MSCI over potential index exclusion

According to Reuters, global largest corporate Bitcoin holder Strategy (Nasdaq: MSTR) is in discussions with index provider MSCI about a possible decision to remove it from the MSCI USA and MSCI World indices. MSCI is expected to decide by January 15, 2026. If removal takes effect, up to $8.8 billion in capital outflows may occur, especially from passive investment vehicles like ETFs. Strategy’s Executive Chairman Michael Saylor said the company is engaged in the process but is unsure about the capital outflow scale projected by JP Morgan.

21shares launches Ethena and Morpho ETPs, expanding high-growth DeFi infrastructure investment channels

Leading global crypto ETP issuer 21shares announced two new ETP products—21shares Ethena ETP (Ticker: EENA) and 21shares Morpho ETP (Ticker: MORPH). Both products are listed on SIX Swiss Exchange, Euronext Amsterdam, and Paris, supporting trading in USD and EUR. Mandy Chiu, Global Head of Product Development at 21shares, said Ethena and Morpho represent significant advances in on-chain financial infrastructure, offering investors transparent and convenient investment channels.

UK officially incorporates cryptocurrencies and other digital assets under legal protection, defining them as a new form of personal property

The UK has officially classified crypto assets (such as cryptocurrencies and stablecoins) as property under legal protection. On Tuesday, House of Lords Speaker John McFall announced the “Property (Digital Assets, etc.) Act” received Royal Assent from King Charles and is now law. Based on 2024 recommendations from the Law Commission of England and Wales, the act clearly classifies crypto assets as a new form of personal property. This move gives digital assets a clearer legal foundation, especially in proof of ownership, asset recovery, and bankruptcy or inheritance handling. CryptoUK noted the act confirms “things” in digital or electronic form can be objects of personal property rights, even if not traditional “tangible property” or “claims property.” Industry insiders say the change provides greater clarity and protection for consumers and investors, and lays the foundation for supporting new financial products, tokenized physical assets, and a safer digital marketplace. The UK also plans to introduce a crypto regulatory framework to bring crypto businesses under the same rules as other financial firms, aiming to become a global crypto hub.

Probability of a 25 basis point Fed rate cut in December is 89.2%

According to CME “FedWatch”: Probability of a 25 basis point Fed rate cut in December is 89.2%, with a 10.8% probability of holding rates steady. Probability of a cumulative 25 basis point cut by January next year is 66.6%, 7.7% for no change, and 25.7% for a cumulative 50 basis point cut.

YZi Labs announces EASY Residency Season 2 teams, covering Web3, AI, and biotech

During Binance Blockchain Week, YZi Labs announced the full list of founders and companies for EASY Residency Season 2, whose teams will showcase innovative projects at Demo Day. This season focuses on the intersection of Web3, AI, and biotechnology, demonstrating the potential for technology convergence over the next decade. Selected projects include 42.space, 4D Labs, AllScale, Advent, AgriDynamics, and more, covering prediction markets, 3D data, cross-border payments, gene therapy, agricultural robotics, and other areas.

Trump strongly hints at Hassett as the next Federal Reserve Chair

At a White House meeting, President Trump introduced Hassett, saying the potential Fed Chair is right here. Earlier, Trump said he may announce his pick for Fed Chair early next year, adding that Treasury Secretary Besant does not want the job.

CME launches Bitcoin Volatility Index, similar to VIX in the stock market

The Chicago Mercantile Exchange (CME Group) announced the launch of the Bitcoin Volatility Index and other new crypto benchmarks to quantify market uncertainty. The index references implied volatility from Bitcoin and Micro Bitcoin options, similar to the VIX in equities, aiming to optimize options pricing and risk management. The Bitcoin volatility benchmarks, developed with CF Benchmarks, include the real-time BVX index and the settlement index BVXS. Both are the first benchmarks to directly measure 30-day forward implied volatility, sourced from CME Bitcoin and Micro Bitcoin options order books, using variance swap pricing to isolate volatility exposure. BVX is published every second during trading hours, and BVXS at 16:00 London time.

AI

Amazon launches Trainium 3 AI chip; crypto mining firms pivot to “GPU gold rush”

According to CoinDesk, Amazon has launched the next-generation AI chip Trainium 3, delivering four times the training speed of its predecessor, targeting Nvidia’s market share. The chip will be offered via AWS, enabling large-scale model training. Meanwhile, Bitcoin mining companies like Core Scientific and IREN are transforming their data centers into AI infrastructure, signing multi-billion-dollar deals with Microsoft, Google, and others. Despite the AI infrastructure investment boom, analysts warn that a slowdown in demand could leave related firms with a funding gap as large as $800 billion.

Sources: Anthropic starts IPO preparations, could go public as early as 2026

According to the Financial Times, AI startup Anthropic has hired law firm Wilson Sonsini to begin preparations for one of the largest IPOs ever, as early as 2026. Sources say the company is negotiating a private funding round at a valuation exceeding $300 billion and has discussed potential IPO plans with several major investment banks. However, discussions remain early and informal, and no underwriter has been selected yet. An Anthropic spokesperson said: “For a company of our scale and revenue, operating as efficiently as a public company is fairly standard practice. We have not made any decisions about when or even whether to go public, and have nothing to share at this time.”

Opinions

Strategy CEO: Lending Bitcoin not ruled out to enhance financial flexibility

According to Bloomberg, Strategy Inc (formerly MicroStrategy) has set aside about $1.4 billion in cash reserves to cover dividends and interest during market volatility, enough for about 21 months, or up to two years without touching about $5.9 billion in Bitcoin holdings. CEO Phong Le also said lending out Bitcoin is not ruled out to enhance financial flexibility.

Project Updates

Solana x402 Hackathon announces partner track awards, multiple AI and micropayment projects win

According to Solana Developers, the x402 Hackathon partner tracks selected several innovative projects covering AI agents, micropayments, Web3 data, and prediction markets. Winners include Sentinel Agent (on-chain AI payment platform), Galaksio (USDC for compute and storage), Learn Earn (self-learning module), ParallaxPay (AI agent marketplace), Agentx402 (premium AI models without subscription), x402 Triton Gateway (micropayment gateway for querying Solana historical data), scanna-x402 (x402 payment based on web3 consumer data), InsightAI (whale signal TG Bot), Marketputer (meme marketing assistant), Polycaster (AI-driven prediction market analysis), and x402Resolve (oracle-verified payment escrow). Multiple projects showcase new on-chain AI interaction scenarios based on the x402 protocol.

Clanker to start first round presale on Thursday, lasting 7 days

Clanker announced its first round presale will begin this Thursday at 9:30 am (Pacific Time, December 4), lasting 7 days, with all participants enjoying the same terms. Trading of Clanker will launch 24 hours after presale ends. The team will showcase the project and team across multiple channels and plans to improve the presale mechanism. Previously, Binance announced CLANKERUSDT and BEATUSDT perpetual contracts will go live.

Binance to delist FIS, REI, and VOXEL on December 17

According to Binance, the platform will delist FIS, REI, and VOXEL tokens on December 17, 2025. Their current market caps are FIS $6 million, REI $16 million, VOXEL $7 million.

Binance co-founder He Yi appointed as co-CEO, platform users near 300 million

At Binance Blockchain Week, Binance announced its co-founder He Yi has officially been appointed co-CEO. Binance co-CEO Richard Teng said: “Since Binance was founded, He Yi has always been a key member of our core management team. Her innovative thinking and user-centric philosophy have played a vital role in driving and shaping the company’s vision, culture, and bottom-up business strategy. This appointment is a natural progression, and she will continue to drive the company’s growth.”

Binance Alpha to launch Power Protocol (POWER)

Binance Alpha will launch Power Protocol (POWER) on December 5. Eligible users can claim an airdrop using Binance Alpha Points on the Alpha event page after trading opens. Further details will be announced separately.

Stable mainnet to launch on December 8 at 21:00

Stable, a stablecoin public chain, announced its mainnet will officially launch at 21:00 Beijing time on December 8.

Binance to delist 15 spot trading pairs on December 5, including ACH/BTC, WAXP/BTC, etc.

According to Binance, the platform will delist 15 spot trading pairs at 11:00 on December 5, 2025 Beijing time, including ACH/BTC, DENT/ETH, EGLD/FDUSD, HAEDAL/BNB, INIT/FDUSD, PORTAL/BNB, PORTAL/BTC, PROVE/FDUSD, QTUM/BTC, RIF/BTC, SHELL/FDUSD, STRAX/BTC, TREE/FDUSD, WAXP/BTC, and W/BTC, involving BTC, BNB, ETH, FDUSD, and others.

Stable announces tokenomics: total supply 100 billion, genesis allocation 10%

Stable, the stablecoin public chain, announced its STABLE tokenomics: total fixed supply of 100 billion tokens. The token is mainly for network governance, consensus security, and ecosystem incentives, while all user interactions will still settle in USDT, with no need to use STABLE for gas. STABLE distribution: ecosystem and community (40%), team (25%), investors and advisors (25%), genesis allocation (10%). The network will adopt Delegated POS, with validators staking STABLE to participate in consensus and share USDT fees.

Bithumb to list BOB and TRAC KRW trading pairs

According to Bithumb, Bithumb will list BOB and OriginTrail (TRAC) KRW trading pairs.

Jupiter launches DTF platform; inaugural project HumidiFi (WET) token sale starts tonight

According to Jupiter, decentralized fundraising platform “DTF (Decentralized Token Formation)” is now online, with the first certified project being Solana ecosystem’s active liquidity DEX—HumidiFi (WET). WET token sale starts at 23:00 Beijing time on December 3, with whitelist spots oversubscribed and first come, first served. Users can connect wallets to check eligibility and participate.

MetaMask launches “Transaction Shield” service, offering up to $10,000 monthly compensation

According to MetaMask, the new “Transaction Shield” feature is now live, providing up to $10,000 in monthly compensation for up to 100 transactions passing its security verification. The service is currently for extension users, supports multi-chain interactions, costs $9.99/month or $99/year, and new users get a 14-day free trial. Mobile support is coming soon.

Coinbase to launch Dash perpetual contracts on December 4

According to Coinbase Markets, Dash (DASH) perpetual contracts will launch on December 4, 2025, with trading expected to start after 9:30 UTC, subject to liquidity. The contract is available to retail users in certain regions via Coinbase Advanced, and institutional users via Coinbase International Exchange.

Celestia-based Astria Network has terminated its shared sequencer network

According to The Block, Celestia-based Astria Network intentionally ceased operations at block 15,360,577 on December 2, marking the formal shutdown of its shared sequencer network. The project, launched in 2023, aimed to provide decentralized sequencer solutions for L2 networks and raised $18 million. Due to adoption limitations, component shutdowns, and halted development, it decided to fully exit without disclosing detailed reasons.

Coinbase adds five new tokens to listing roadmap including WET, ZKP, and PLUME

According to Coinbase Markets, Humidifi (WET), zkPass (ZKP), Plume (PLUME), Hyperlane (HYPER), and Jupiter (JUPITER) have been added to the Coinbase listing roadmap, covering Solana, Ethereum, and Base networks. Officially, trading will launch once market making and technical requirements are met, with specific times to be announced.

Key Data

Bitcoin spot ETF net inflow of $58.5 million yesterday

According to SoSoValue, on December 2 (Eastern Time), Bitcoin spot ETFs saw a total net inflow of $58.5 million, marking five consecutive days of net inflows. BlackRock’s IBIT led with a net inflow of $120 million, while ARKB saw a net outflow of $90.94 million. Currently, total Bitcoin spot ETF assets stand at $119.587 billion, accounting for 6.58% of Bitcoin’s total market cap.

USDC Treasury mints 500 million USDC on Solana

At 9:29 and 9:30 (UTC+8), USDC Treasury minted 250 million USDC each on Solana, totaling $500 million.

Pump.fun transfers another $75 million USDC to Kraken 2 hours ago, cumulative transfers reach $555 million

According to Ember monitoring, pump.fun transferred another 75 million USDC to Kraken 2 hours ago, bringing its total USDC transfers from ICO sales to the exchange since November 15 to about $555 million.

Funding / M&A

Kraken to acquire tokenized asset platform Backed Finance

According to Bloomberg, crypto exchange Kraken announced it will acquire tokenized asset platform Backed Finance. Kraken co-CEO Arjun Sethi said in an interview that Kraken already offers stocks and ETF products issued by Backed, and after the deal, plans to more tightly integrate these products into its platform. Sethi said: “While everyone is talking about tokenized stocks, we’re already doing it. We focus on long-term investment, not hype.” Kraken did not disclose deal terms. According to rwa.xyz, Backed Finance is currently the second largest platform for tokenized listed stocks, with a market share of about 23%. Backed’s xStocks products provide exposure to over 60 tokenized stocks and ETFs, all backed 1:1 by underlying assets.

Sonnet BioTherapeutics receives shareholder approval for business combination with Hyperliquid Strategies, Inc.

According to market sources, Nasdaq-listed biotech company Sonnet BioTherapeutics has received shareholder approval for a business combination with Hyperliquid Strategies, Inc. Previously, Sonnet planned to rename as Hyperliquid Strategies via the merger, expected to hold 12.6 million HYPE tokens and $300 million in cash.

Circle establishes Circle Foundation to advance global financial inclusion

According to its official blog, Circle announced the launch of the Circle Foundation, a new philanthropic initiative dedicated to advancing financial resilience and inclusion in the US and globally. Seed funding comes from Circle’s “Pledge 1%” equity commitment, aiming to support organizations strengthening the financial system, including those working with US community small businesses and international organizations modernizing humanitarian aid infrastructure. The foundation will first focus on strengthening financial resilience of US small businesses by supporting Community Development Financial Institutions (CDFIs). Globally, it will work with international organizations to modernize humanitarian financial infrastructure.

Institutional Holdings

BitMine new wallet receives over 30,000 ETH from Kraken, worth about $91.75 million

According to Onchain Lens, a newly created BitMine wallet received 30,278 ETH from Kraken, worth about $91.75 million at current prices.

US-listed Token Cat Limited board approves $1 billion crypto asset investment policy

According to PRNewswire, Token Cat Limited (Nasdaq: TC) announced its board has formally approved a crypto asset investment policy, authorizing the company to allocate part of its cash reserves to selected crypto assets under a strict risk management framework. The board approved a total allocation cap of up to $1 billion. Deployments will be phased based on market conditions, risk assessment, and capital management needs. The initial focus will be on emerging crypto tokens with strong growth prospects, including those tied to AI, on-chain raw data initiatives, and token-equity hybrid models. Expanding to other asset classes will require re-evaluation and approval by the board’s risk committee. The company will not self-custody crypto assets. A crypto asset risk committee led by the CFO will oversee allocation, manage risk control, and regularly report to the board.

Bank of America recommends wealth management clients allocate 1%–4% to crypto assets

According to Yahoo Finance, Bank of America (BAC) says its wealth management clients should start considering allocating a certain percentage of their portfolios to cryptocurrencies. The bank recommends Merrill, Bank of America Private Bank, and Merrill Edge clients allocate 1%–4% to digital assets. From January 2026, its strategists will focus on four Bitcoin ETFs (BITB, FBTC, Grayscale Mini Trust, IBIT). Chris Hyzy, chief investment officer for Bank of America Private Bank, said: “For investors interested in thematic innovation and comfortable with high volatility, a 1%–4% allocation to digital assets may be appropriate. Our recommendation emphasizes choosing regulated investment vehicles, thoughtful asset allocation, and a clear understanding of the opportunities and risks. For more conservative investors, the lower end is more suitable; for those with higher risk tolerance, the upper end is appropriate.”

Wall Street investment bank Cantor Fitzgerald discloses holding $1.28 million in Solana ETF

According to Cryptopolitan, Wall Street investment bank Cantor Fitzgerald disclosed holding $1.28 million worth of Volatility Shares Solana ETF shares, marking its first known holding of a regulated Solana product. The filing, submitted to the SEC in mid-November, lists 58,000 shares of Volatility Shares Solana ETF (Nasdaq: SOLZ). At the time of filing, the position was valued at $1,282,960.