Italy’s Comprehensive Review of Cryptocurrency Risks
On December 4, 2025, Italy’s Economy Ministry initiated an extensive evaluation of the current safeguards surrounding cryptocurrency investments, with a particular focus on retail investors. This proactive measure arises from escalating concerns about the integration of crypto-assets into the broader financial system and the fragmented nature of international regulations. The Committee for Macroprudential Policies, comprising senior officials from the Bank of Italy, the financial markets authority (Consob), insurance and pension watchdogs, and the Treasury, convened to address these issues. While acknowledging the generally favorable economic and financial environment in Italy, the committee underscored the necessity for vigilance amid global uncertainties. This initiative reflects Italy’s commitment to maintaining financial stability in the rapidly evolving crypto landscape.
U.S. CFTC’s Integration of Spot Crypto Products
In a significant move on December 4, 2025, the U.S. Commodity Futures Trading Commission (CFTC) announced that spot crypto asset contracts would commence trading on CFTC-registered futures exchanges. This development is part of the Trump administration’s broader strategy to incorporate digital assets into the mainstream financial system. Acting Chairman Caroline Pham emphasized the importance of safe, regulated U.S. markets, especially in light of recent challenges faced by offshore crypto exchanges. Additionally, the CFTC has been actively seeking public input on the use of tokenized collateral, such as stablecoins, in derivatives markets. Under President Trump’s administration, the digital asset sector has witnessed policy advancements, including legislative efforts like the GENIUS Act and the CLARITY Act, aimed at establishing tailored regulatory frameworks. This pro-crypto stance signifies a notable shift from the more stringent regulatory approach of previous administrations.
Turkmenistan’s New Legislation on Digital Assets
Turkmenistan has taken a decisive step in regulating digital assets by enacting a new law that governs cryptocurrency mining and exchange operations. Signed by President Serdar Berdymukhamedov, the legislation is set to take effect on January 1, 2026. This law establishes a comprehensive legal and economic framework for the creation, storage, usage, and circulation of virtual assets within the country. The government’s objective is to attract investment and promote digitalization as part of a broader strategy to diversify its economy, which has been heavily reliant on natural gas exports, primarily to China. This move aligns Turkmenistan with regional trends, following Kyrgyzstan’s example of embracing digital assets through initiatives like launching a national stablecoin in partnership with Binance.
China’s Intensified Crackdown on Virtual Currencies
On November 29, 2025, the People’s Bank of China (PBOC) reaffirmed its stringent stance against virtual currencies, emphasizing a crackdown on illegal activities, particularly those involving stablecoins. During a recent regulatory meeting, the PBOC expressed concerns over a resurgence in cryptocurrency speculation, which poses new risks to financial stability. The central bank reiterated that virtual currencies are not legal tender and classified associated business activities as illegal. The PBOC highlighted the regulatory risks of stablecoins, citing inadequate measures for customer identification and anti-money laundering enforcement. It warned that stablecoins could facilitate illicit activities such as money laundering, fraud, and unauthorized cross-border fund transfers. The central bank committed to intensified regulatory efforts to maintain economic and financial stability. Despite the ban on cryptocurrency trading in mainland China since 2021, mining activities appear to be resurging in energy-abundant regions. Meanwhile, Hong Kong has established a stablecoin regulatory framework but has yet to issue licenses to any entities.
Impact on Hong Kong’s Crypto Market
Following the PBOC’s renewed crackdown, Hong Kong-listed stocks with ties to cryptocurrency experienced significant declines. On December 1, 2025, shares of Yunfeng Financial Group dropped over 10%, marking its worst trading day in two months. Bright Smart Securities and Commodities Group fell about 7%, and the digital-asset platform OSL Group declined by more than 5%. This sell-off follows a surge in interest earlier in the year when Hong Kong passed a regulatory framework for stablecoins, aiming to develop itself into a digital asset hub. However, the renewed crackdown has led major Chinese tech firms, including Ant Group and JD.com, to halt their stablecoin plans in Hong Kong. The broader impact underscores growing regulatory pressure from Beijing, pushing back against crypto developments, even those emerging across the border in Hong Kong.
U.S. Department of Justice’s Shift in Crypto Enforcement
In April 2025, the U.S. Department of Justice (DOJ) disbanded its National Cryptocurrency Enforcement Team, signaling a strategic shift in its approach to digital assets. The DOJ is now focusing on prosecuting individuals and groups who use digital assets for criminal activities such as terrorism, narcotics, human trafficking, gang and cartel operations, and hacking. Deputy Attorney General Todd Blanche criticized the previous administration’s approach to regulating digital assets through prosecution. Going forward, cases not aligned with this revised strategy will be closed. This directive aligns with an executive order from President Donald Trump encouraging access to open blockchain networks. The DOJ will no longer target exchanges, mixers, or wallets for end-user actions or technical regulatory violations unless willful misconduct is evident. This policy marks a broader push under Trump to ease regulations in the crypto sector, where his family has personal financial interests. Blanche, formerly Trump’s criminal defense attorney, was recently confirmed as Deputy Attorney General.
Establishment of the U.S. Government Bitcoin Reserve
On March 6, 2025, President Donald Trump signed an executive order establishing a U.S. government bitcoin reserve. This move signifies a major step toward mainstream acceptance of cryptocurrency. Under the new directive, the government will retain around 200,000 bitcoin previously seized in criminal and civil cases, treating it as a long-term store of value akin to a digital Fort Knox. Trump’s “crypto czar” David Sacks announced that the bitcoin would not be sold and revealed that previous government sales of seized bitcoin—totaling 195,000 BTC for $366 million—would now be worth about $17 billion. The order also mandates a full audit of the government’s crypto holdings and permits the Treasury and Commerce Departments to develop plans for acquiring more bitcoin without increasing the federal budget. Trump’s order reflects a notable shift in his stance on cryptocurrency, from skepticism to full support. He has embraced his role as the “crypto president,” supported by wealthy crypto industry figures who backed his election campaign. In tandem, the SEC has begun dropping enforcement actions against major crypto firms. Additionally, the executive order establishes a “U.S. Digital Asset Stockpile” to include other seized cryptocurrencies like XRP, Solana, and Cardano. A Crypto Summit at the White House is scheduled to follow the announcement.
Conclusion
The global regulatory landscape for cryptocurrencies is undergoing significant transformations, with countries adopting diverse approaches to integrate, regulate, or restrict digital assets. Italy’s proactive review, the U.S. CFTC’s integration of spot crypto products, Turkmenistan’s new legislation, China’s intensified crackdown, and the U.S. DOJ’s strategic shift all highlight the dynamic and evolving nature of crypto regulation. These developments underscore the importance for investors, businesses, and policymakers to stay informed and adaptable in the face of rapid changes in the digital asset space.
