Key Takeaways

• Top story: Congress urges the SEC to consider cryptocurrency options in 401k retirement plans, aiming to expand access.
• Bitcoin ETFs registered $12.4 billion in inflows during the third quarter, reflecting rising institutional interest.
• Bitcoin fell below $90,000 after concerns about an AI-driven speculative bubble, sparking renewed debate over stability.
• New US and EU crypto laws seek to reduce regulatory uncertainty and clarify compliance requirements for firms and investors.
• What to watch: Market participants await further SEC action and detailed timelines for new crypto regulations.

Introduction

On 14 December 2025, Congress increased pressure on the SEC to authorize cryptocurrency investment options in 401k plans. This move is considered pivotal for broadening access to digital assets in US retirement portfolios. It also lines up with recent US and EU legislation designed to reduce regulatory uncertainty, setting the stage for this cryptocurrency market update.

Top Story

Congress Urges SEC on 401k Crypto Inclusion

Members of the Congressional Blockchain Caucus formally requested the Securities and Exchange Commission to provide clear guidance for cryptocurrency investments within 401k retirement plans. In a letter signed by 24 bipartisan representatives, lawmakers argued that current regulatory uncertainty is restricting Americans from diversifying their retirement portfolios with digital assets.

The letter specifically called for a “safe harbor” framework that would enable plan administrators to include approved cryptocurrencies as investment options without risk of regulatory penalties. Several major asset managers have developed crypto products intended for retirement accounts but have hesitated to launch them due to ambiguous regulations.

SEC Chair Gary Gensler acknowledged receipt of the letter at a press conference. He stated that the agency is evaluating all appropriate investment vehicles for retirement savings, while maintaining its commitment to investor protection.

The Department of Labor has previously expressed concerns regarding cryptocurrency in retirement plans, primarily due to volatility and custody risks. However, the department has recently signaled greater openness as institutional safeguards improve.

Also Today

Crypto Regulation

US and EU Align on Stablecoin Framework

The United States Treasury Department and European Commission jointly announced a harmonized approach to stablecoin regulation, setting consistent standards across both regions. The framework mandates reserve audits, capital requirements for issuers, and uniform disclosure protocols for dollar-backed and euro-backed stablecoins.

Industry leaders broadly welcomed the regulatory alignment. Circle CEO Jeremy Allaire described it as “a milestone for global stablecoin adoption.” This joint approach resolves previous uncertainty, which had compelled some stablecoin operators to manage separate compliance systems for US and European markets.

Implementation is scheduled to begin in April 2026, allowing issuers time to update their operations to comply with the new rules.

UK Introduces Crypto Tax Simplification

The United Kingdom’s HM Revenue & Customs presented a streamlined tax framework for cryptocurrency transactions, addressing concerns about reporting complexity. The new rules introduce a de minimis exemption for small trades under £500 and simplify reporting for DeFi activities.

Industry representatives praised the adjustments as a noteworthy advance. CryptoUK Director Ian Taylor said the reforms position the UK as a leader in crypto-friendly tax policy.

Market Activity

Bitcoin ETF Inflows Reach Monthly Record Despite Price Retreat

Spot Bitcoin ETFs recorded $2.8 billion in net inflows over the past 30 days, marking a new monthly record despite Bitcoin failing to break the $90,000 resistance level. BlackRock’s IBIT attracted $1.2 billion in new investments, followed by Fidelity’s FBTC with $940 million, according to Bloomberg.

Robust institutional demand continued even as Bitcoin repeatedly tested but did not sustain prices above $89,000, resulting in a consolidation pattern. JPMorgan strategists interpreted this as “exhaustion at current valuations.” Ark Invest researchers characterized it as “accumulation before the next leg up.”

Trading volumes increased by 22 percent compared to November averages, particularly at the $87,000 to $89,000 price range.

Market Wrap

The cryptocurrency market presented mixed results on 14 December 2025, with total capitalization stable at $3.8 trillion. Bitcoin closed at $88,450, down 0.7 percent over 24 hours, while Ethereum rose 2.3 percent to $4,780.

Layer-2 solutions outperformed. Arbitrum and Optimism increased by 8.2 percent and 6.5 percent, respectively, following new developer incentive program announcements. The Solana ecosystem also strengthened, with major projects averaging a 4.7 percent gain due to heightened institutional interest.

Meme coins faced downward pressure. Dogecoin and Shiba Inu declined by over 5 percent after a major exchange instituted tighter listing criteria for tokens lacking broad utility. For a detailed look at the risks and volatility associated with these tokens, see meme coins analysis.

What to Watch

• SEC open meeting on crypto exchange regulations (18 December 2025)
• EU Markets in Crypto-Assets (MiCA) second implementation phase (10 January 2026)
• Ethereum’s Shanghai upgrade implementation (15 January 2026)
• Congressional Blockchain Caucus public hearing on retirement accounts (22 January 2026)
• World Economic Forum crypto governance panel in Davos (26 January 2026)
• Bitcoin network’s fourth halving event (expected 4 April 2026)

Major protocol events continue to shape expectations across the crypto market. For more on how halving cycles impact Bitcoin and overall sentiment, explore the full Bitcoin halving history.

Conclusion

Congress’s renewed call for SEC guidance on crypto in retirement plans, along with new US and EU regulatory frameworks, is helping to steady expectations in the evolving cryptocurrency market update. Progress on global rules and tax policy reforms is expected to support greater confidence among investors and institutions. What to watch: upcoming SEC and EU regulatory meetings, the Congressional Blockchain Caucus hearing on retirement accounts, and Ethereum’s Shanghai upgrade in early 2026.

For a deeper dive into upcoming rules and global regulatory trends, see the comprehensive crypto regulation 2025 guide.