💼 BOA & Vanguard Embrace Crypto, Ethereum's Quantum Risks

Good afternoon,

Crypto markets are rebounding, with Bitcoin reclaiming $92K and investor sentiment starting to stabilize. Institutional shifts are accelerating as well: Bank of America now endorses 1%–4% crypto portfolio allocations and is lifting restrictions on financial advisers, while Vanguard has opened its platform to crypto ETFs. Immutable’s co-founder says the CLARITY Act could draw major gaming companies into the crypto space, and Ethereum founder Vitalik Buterin is sounding the alarm on emerging quantum risks.

Let’s unpack this and more! 👇

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News Roundup

Artificial Intelligence

• Grand Theft Auto Dev Warns Generative AI Could Harm Games (Decrypt)

• China’s Z-Image Turbo Overtakes Flux With Breakthrough AI Art Performance (Decrypt)

• Frontier AI Models Now Match Human Hackers in Smart Contract Exploits (Anthropic)

Decentralized, Centralized, & Traditional Finance

• Yearn Recovers Part of $9M Exploit Loss (The Block)

• Kalshi Launches Tokenized Event Markets on Solana (CoinDesk)

• Goldfinch User Hit by $330K Exploit as Attacker Drains Funds (PeckShield)

• Bank of Russia Considers Easing Crypto Rules Beyond Elite Investors (Cryptopolitan)

• Bank of America Endorses 1%–4% Crypto Allocations and Lifts Adviser Restrictions (The Block)

• Aave Proposes Refocusing V3 Multichain Strategy (Aave)

• Circle Launches Foundation Backed by 1% of Its Equity to Support Financial Access (Circle)

• Ripple’s RLUSD Stablecoin Surpasses $1B, Mostly on Ethereum (The Defiant)

• European Banks Form Qivalis to Launch Euro Stablecoin in 2026 (Reuters)

Exchanges

• Coinbase to List Plasma (XPL) for Spot Trading on Dec. 2 (Coinbase)

• Coinbase 50 Index Adds Six New Tokens in Q4 Rebalance (Coinbase)

• Gate CEO Denies Layoff Rumors Amid Push for New Product Releases (Dr. Han)

• Kraken Acquires Backed Finance to Deepen Its Tokenized Assets Strategy (Bloomberg)

• Upbit Profit Surges After $36M Hack as ‘Fence Pumping’ Sparks Volatile Price Spikes (DL News)

Exchange-Traded Funds

• Vanguard Opens Platform to Crypto ETFs (Bloomberg)

• Cantor Fitzgerald Discloses Solana ETF Holdings in Latest Filings (Decrypt)

• U.S. Bitcoin spot ETFs logged $8.48 million in net inflows on Dec. 1.

• U.S. Ethereum spot ETFs saw $79.06 million in net outflows on Dec. 1.

• On Dec. 1, U.S. XRP spot ETFs recorded $89.65 million in net inflows.

• On Dec. 1, U.S. Solana spot ETFs posted $13.55 million in net outflows.

Gaming

• Immutable Co-Founder Says CLARITY Act Will Draw Major Gaming Companies Into Crypto (Cointelegraph)

• Illuvium CEO Says Crypto Games Must Stand Alone—Not Lean on Market Liquidity (Cointelegraph)

• Ronin Network Aims to Attract Everyday Users Beyond Its Gaming Base (Cointelegraph)

Infrastructure

• Ethereum Faces Accelerating Quantum Threat as Buterin Urges Early Defense Measures (Cointelegraph)

• Eclipse Brings Solana-Style Parallel Execution to Ethereum Rollups (Cointelegraph)

• Ethereum Devs Advance ZK ‘Secret Santa’ Protocol for Private On-Chain Matching (CoinDesk)

• Trust Wallet Integrates Myriad to Offer First Native In-Wallet Prediction Markets (Decrypt)

Markets

• Privacy Coins Slide as Safe-Haven Narrative Breaks With Broader Market Pullback (Decrypt)

• Crypto Markets Rebound as Bitcoin Reclaims $90K and Sentiment Stabilizes (The Defiant)

• Crypto Market Reclaims $3T as ETF Access Widens and Fed Cut Odds Surge (The Block)

• Leveraged XRP and Solana ETFs Debut as Both Tokens Rebound (Decrypt)

Mining

• Bitcoin Miners Enter Most Brutal Profit Squeeze on Record (TheMinerMag)

• Cango’s Q3 Revenue Jumps 60% as Bitcoin Mining Surges and AI Strategy Expands (The Block)

Politics & Regulation

• Kalshi Seeks Shield From Nevada Regulators as Appeal Moves Forward (Decrypt)

• FDIC Signals Imminent Rollout of First GENIUS Act Proposed Regulations (CoinDesk)

• South Korea’s Ruling Party Pressures Regulators to Deliver Stablecoin Bill by Dec. 10 (The Block)

• Japan Moves to Slash Crypto Taxes to a Flat 20% Rate (CoinDesk)

Treasuries

• Tidal Investments Reports $60M Position in Strategy Shares (BitcionTreasuries)

• Sonnet Shareholders Approve Merger to Form Hyperliquid Strategies With $1B HYPE Treasury Potential (The Block)

Venture Capital

• Crypto VC Deals Fell in November as Total Funding Spiked on Dunamu Buyout (Wu Blockchain)

Other News

• Coinbase Execs Sued for Alleged $4.2B Insider Trading Scheme (Decyrpt)

• SushiSwap Head Chef Jared Grey Resigns After Three-Year Tenure (The Defiant)

• Huione Pay Halts Operations After U.S. Sanctions Trigger Bank Run (CC-Times)

• UK Employee Jailed After Stealing $650K and Converting It to Crypto for Gambling (Decrypt)

• November Saw Robust Crypto Hiring Across Exchanges, Infra, Payments, and Venture (The Block)

Check This Out!

New estimates show that only 40–70 million people actively use crypto despite 716 million global holders, highlighting significant upside potential as most holders still aren’t transacting on-chain.

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