[Bank of Canada Plans to Approve Only High-Quality Stablecoins Pegged to Central Bank Currency Under New Rules in 2026] The Bank of Canada stated that under new regulations expected to be introduced in 2026, only high-quality stablecoins pegged to central bank currency will be approved to ensure they serve as "premium money." Governor Tiff Macklem emphasized the hope that stablecoins could become a form of premium money, similar to cash or demand deposits. He proposed that stablecoins must maintain a 1:1 peg with central bank currency and that reserves should consist of highly liquid, high-quality assets such as short-term government bonds. This statement follows the release of the 2025 annual budget report in early November, which requires issuers to hold sufficient reserves and establish redemption and risk control frameworks.

[UK Launches Political Financing Review Following Reform Party Bribery Case, Will Investigate Role of Cryptocurrency] The UK has launched a comprehensive review of political financing laws and will investigate the role of cryptocurrency, prompted by a bribery case involving a politician from the UK Reform Party. UK Communities Secretary Steve Reed stated in the House of Commons on Tuesday that the review will examine the influence of foreign funds on UK politics. The review report is set to be submitted by the end of March, with the findings to be incorporated into election and democracy-related legislation planned by the government for next year. Former Welsh leader of the UK Reform Party, Nathan Gill, admitted last month to accepting bribes during his tenure as a Member of the European Parliament in exchange for making pro-Russian statements. He was sentenced to 10 and a half years in prison.

[K33 Research Director Indicates Bitcoin's Q4 Underperformance Against U.S. Stocks May Trigger Year-End Rebalancing Inflows] K33 Research Director Vetle Lunde pointed out that Bitcoin's performance in the fourth quarter lagged behind the S&P 500 Index by as much as 26%. Rebalancing by asset managers to maintain predetermined allocation ratios could benefit Bitcoin at year-end. Lunde expects portfolio adjustments by fund managers may lead to significant inflows during the last trading days of this year and early January next year. Currently, CME derivatives trading activity is near its annual low, with Bitcoin futures open interest at approximately 124,000 contracts. Spot trading volume dropped 12% last week, confirming lower trader participation as the year-end approaches.

[Today's Crypto Fear and Greed Index Rises to 16, Still in 'Extreme Fear' State] On December 17, Alternative data shows that today's Crypto Fear and Greed Index is 16 (yesterday it was 11), and the market remains in an 'Extreme Fear' state.

Exodus announced a partnership with MoonPay to launch a fully backed digital dollar stablecoin using M0 infrastructure. （Cointelegraph）