Important news from last night and this morning (December 17-December 18)

Bitcoin Lightning Network capacity hits all-time high

According to Cointelegraph, the Lightning Network, Bitcoin's Layer 2 network, has reached a record high capacity as it is widely adopted by major cryptocurrency exchanges and its functionality continues to improve. Data from Bitcoin Visuals shows that on Monday, the Lightning Network capacity reached 5,606 bitcoins, breaking the record set in March 2023. Analytics platform Amboss also reported that the Lightning Network capacity peaked on Tuesday at 5,637 bitcoins, worth approximately $490 million. Data shows that after a year of declining capacity, the Lightning Network saw a surge in capacity in November and December, as more bitcoins were added to the network, making transactions faster and cheaper. Currently, the number of Lightning Network nodes is 14,940, down from the peak of 20,700 in March 2022; while the number of channels between nodes is 48,678, also down from the 2022 peak. The data indicates that while the amount of bitcoins added to the Lightning Network is increasing, usage, measured by the number of nodes and channels, may not be growing accordingly.

An address associated with a block builder deposited 4,900 ETH, worth $13.72 million, into Coinbase.

According to on-chain analyst @ai_9684xtpa, the address 0xfd2…77Bb4, associated with a block builder, deposited 4,900 ETH, worth $13.72 million, to Coinbase 6 hours ago. This address also transferred 4,933 ETH (approximately $15.32 million) to an exchange a week ago, and has frequent interactions with block builders such as Titan Builder and Beaver Build.

A whale transferred $3.64 million worth of SHIB to OKX. This whale had previously purchased 17.4% of the total SHIB supply with 37.8 ETH.

According to on-chain analyst Ember, the "top whale" who bought 103 trillion SHIBOR (17.4% of the total supply) with only 37.8 ETH (US$13,700) in 2020 transferred 469 billion SHIBOR (US$3.64 million) to OKX just 9 hours ago. At its peak in 2021, those 103 trillion SHIBOR were worth US$9.1 billion. He hasn't sold the vast majority of these coins and still holds a staggering 96.684 trillion SHIBOR (16.4% of the total supply), worth US$726 million.

The U.S. Securities and Exchange Commission (SEC) issued a statement regarding broker-dealers holding crypto-asset securities.

The U.S. Securities and Exchange Commission's (SEC) Division of Trading and Markets issued a statement regarding broker-dealers holding crypto-asset securities. This statement clarifies the applicability of Rule 15c3-3(b)(1) of the Securities Exchange Act to crypto-asset securities (i.e., "crypto-asset securities"), applicable to broker-dealers holding such assets on behalf of clients. The statement indicates that the SEC will not object to a broker-dealer's determination that it has physical possession or control of crypto-asset securities in a client's account if the broker-dealer takes the following actions. Controls: 1. Access and Transfer Capabilities: Direct access to crypto asset securities and the ability to transfer such assets on the relevant distributed ledger; 2. Technical Risk Assessment: Establish and implement well-designed written policies and procedures to assess the characteristics and risks of the distributed ledger technology and related networks that record asset ownership; 3. Risk Mitigation: If it is known that there are significant security or operational problems or weaknesses in the relevant distributed ledger technology, or that holding such assets would pose other significant risks to its business, it shall not assume ownership of such assets; 4. Private Key Protection: Establish policies, procedures, and internal controls that conform to industry best practices to prevent the theft, loss, or unauthorized use of private keys required for accessing and transferring assets, and ensure that no one other than the broker-dealer (including clients or third parties) can access private keys or transfer assets; 5. Contingency Plan: Develop well-designed written policies, procedures, and arrangements to ensure that crypto asset securities are securely preserved and transferable in the event of blockchain failures, 51% attacks, hard forks, or in the event of liquidation or bankruptcy of the broker-dealer.

The U.S. SEC commissioner is seeking comments on issues related to the trading of crypto assets on national securities exchanges and alternative trading systems.

U.S. Securities and Exchange Commissioner Hester Peirce issued a statement, in conjunction with a newly released set of Frequently Asked Questions (FAQs) from the Department of Trading and Markets, to solicit opinions from the market on matters related to the trading of crypto assets on National Stock Exchanges (NSEs) and Alternative Trading Systems (ATSs). The statement focuses on the trading and clearing arrangements for crypto asset securities and "security-non-security crypto asset" trading pairs. Peirce stated that SEC staff are prepared to work with market participants to facilitate compliant trading pairs on regulated platforms. Peirce pointed out that the current market urgently needs clearer market structure rules to protect investors and maintain market order while avoiding imposing unnecessary regulatory burdens on innovation. She specifically addressed whether Regulation ATS (introduced in 1998) and Regulation NMS are outdated in the context of crypto assets and blockchain technology. The core issues raised in the consultation include: how to lower the entry barriers for crypto asset securities and trading pairs platforms and encourage innovation; whether the current Reg NMS and Reg ATS impose disproportionate compliance costs on crypto trading; whether a dedicated Form ATS should be established for "crypto ATS" or the existing disclosure system should be adjusted; whether crypto ATS information disclosure should remain non-public or whether an SEC review or public disclosure mechanism should be introduced; whether it is necessary to retain the quarterly reporting requirement of Form ATS-R in the context of blockchain and on-chain data traceability; whether it is necessary to clarify the compliance method for converting non-dollar assets to US dollars; how to handle requirements such as transaction information confidentiality, system risk control (Rule 15c3-5), and system compliance (Reg SCI); and how to avoid hindering individuals from developing software and using automated or decentralized trading methods in the regulatory process. Peirce emphasized that these issues will serve as important references for the SEC's Crypto Working Group in subsequent policy development, and the regulator is willing to hear broader suggestions to improve the overall NSE and ATS regulatory framework.

A major whale's long position in HYPE is facing a floating loss of $19.6 million, and it has deposited 2 million USDC to avoid being liquidated.

According to OnchainLens monitoring, as the price of HYPE fell below $25, a whale holding a long position in HYPE (5x leverage) is currently facing a floating loss of over $19.6 million. This whale has deposited 2 million USDC to avoid liquidation; its current liquidation price is $20.65.

The total unrealized loss of the "1011 Insider Whale" has widened to $73.18 million.

According to on-chain analyst Yu Jin's monitoring, the "$230 million long whale" (i.e., the "1011 insider whale") has not added to its long positions in the past two days, still holding nearly $700 million in long positions. However, with the market continuing to fall, its long positions are currently showing a floating loss of $73.18 million. Specifically, it holds 191,000 ETH ($540 million) long positions at an opening price of $3,167, resulting in a floating loss of $64.28 million, with a liquidation price of $2,083; 1,000 BTC ($86.15 million) long positions at an opening price of $91,506, resulting in a floating loss of $5.35 million; and 250,000 SOL ($30.83 million) long positions at an opening price of $137.5, resulting in a floating loss of $3.55 million.

Three whale wallets deposited a total of 37.1 million USDC today to increase their holdings of HYPE tokens.

According to OnchainLens monitoring, whales are accumulating HYPE on Hyperliquid, with three wallets depositing a total of 37.1 million USDC today to increase their HYPE holdings. A newly created wallet, "0x23A," deposited 7.1 million USDC and bought 277,420 HYPE at a price of $25.59. Whale "0xE86" deposited 10 million USDC (accumulating 15 million in two days), increasing its holdings by 414,997 HYPE (worth $10.19 million). This whale still holds 5.7 million USDC available for further purchases and has 501,494 HYPE (worth $12.3 million) staked. Whale "0x5Ae" deposited 20 million USDC and placed an order to buy HYPE at a price of $15.

Polygon Foundation: The Polygon PoS issue has been resolved; block explorers may still show delays.

The Polygon Foundation announced on the X platform that Polygon PoS experienced a malfunction today, affecting some RPC nodes. However, the network remained online throughout the event and continued to generate blocks without any on-chain interruptions. The team quickly located the fault and pushed patches to node operators to restore full node service. Currently, validators are synchronizing data and reaching a quorum. During this period, some RPC nodes remained fully operational, with transactions flowing in and being processed normally. Block explorers may still show delays until nodes complete synchronization. Furthermore, according to the latest updates on the Polygon status page, the issue has now been resolved, and all Polygon PoS functionality has been restored. Block explorers may still show delays until nodes complete synchronization.

The WLFI community has launched a vote on a proposal to "use a portion of the unlocked treasury funds to promote the adoption of USD1".

WLFI, the Trump family's crypto project, announced on the X platform that a new proposal suggests "using a portion of the unlocked WLFI treasury funds as incentives to promote the adoption of USD1," and community voting is now open. In the past three weeks, WLFI has used USD1 to buy back approximately $10 million worth of WLFI tokens, listed major spot trading pairs on Binance, promoted the use of USD1 in CeFi and DeFi scenarios, and is working to finalize the WLFI token unlocking timeline. This proposal will help it continue to advance its new growth plans.

Brazilian stock exchange B3 will launch its own tokenization platform and stablecoin.

According to CoinDesk, Brazil's main stock exchange, B3, plans to launch a tokenization platform and issue its own stablecoin next year to deepen its involvement in the cryptocurrency space. The tokenization platform will allow assets to be tokenized and traded on the exchange, sharing the same liquidity pool as traditional markets. To support settlement, B3 also plans to issue a stablecoin. This stablecoin will act as a payment and clearing tool in the tokenized environment, reducing reliance on existing cash processes. The stablecoin is expected to be pegged to the Brazilian real. B3 is also expanding its cryptocurrency-related derivatives business. Products under development include weekly options on Bitcoin, Ethereum, and Solana, as well as event-driven contracts pegged to cryptocurrency prices. These instruments are currently under review by Brazil's securities regulator, the Brazilian Securities and Exchange Commission (CVM).

Caroline Pham, acting chair of the U.S. CFTC, will join MoonPay as chief legal and administrative officer.

According to The Block, Caroline Pham, acting chair of the U.S. Commodity Futures Trading Commission (CFTC), will join crypto finance company MoonPay after her term at the CFTC ends. Pham had previously stated that she planned to leave the CFTC once the new chair was confirmed. MoonPay CEO Ivan Soto-Wright posted on the X platform, "Pham's leadership at the CFTC shaped numerous policies that expanded financial freedom and fueled crypto innovation. Now, we will translate those advancements into tangible results for our users and partners worldwide." MoonPay stated in a post that Pham will join MoonPay as Chief Legal Officer and Chief Administrative Officer after stepping down as acting CFTC chair. Mike Selig, the agency's latest nominee, is expected to have his confirmation hearing this week. A MoonPay spokesperson stated that Pham's specific start date is yet to be determined, as Selig has not yet been confirmed as CFTC chair.

The Federal Reserve withdrew its 2023 guidance restricting uninsured banks' involvement in crypto business.

According to crypto journalist Eleanor Terrett, the Federal Reserve has decided to rescind a 2023 guidance that effectively prevented uninsured banks from becoming Fed members and engaging in cryptocurrency-related business. This guidance was the very basis for the Fed's rejection of Custodia Bank's master account application.

Coinbase advances its "all-in-one exchange" strategy, expanding its business to include stocks, prediction markets, Solana DEX, and other areas.

According to The Block, Coinbase is aggressively expanding its business beyond cryptocurrency trading, launching a series of new products with the ambition of becoming an "all-in-one exchange" that integrates multiple asset classes onto a single platform. These new products encompass stock trading, prediction markets, decentralized trading of Solana tokens, derivatives, custom-branded stablecoins, and payment infrastructure, representing one of its most aggressive product expansion initiatives in its 13-year history. Coinbase is launching stock trading functionality to US users through Coinbase Capital Markets, with thousands more stocks to be added in the coming months. Furthermore, Coinbase is preparing for stock-linked perpetual futures, allowing users outside the US to access US stocks continuously and efficiently, with plans to expand access to stock perpetual futures early next year. While tokenized stocks are not yet available, the institutional platform Coinbase Tokenize is planned, with more details expected in 2026. Coinbase has partnered with prediction market Kalshi to launch event-based contract trading, with plans to add more partner platforms in the future. Coinbase is expanding its in-app DEX trading to include Solana-based tokens, directly integrating Jupiter, Solana's largest DEX aggregator, into the Coinbase interface. Coinbase announced that millions of assets on Solana and its own Base network are now accessible by default, and plans to expand DEX integration to more networks in the future. Coinbase launched a custom stablecoin, allowing companies to issue branded stablecoins backed by flexible collateral (including USDC), which will be backed by USDC and other dollar stablecoins at a flexible 1:1 ratio, rather than fiat currency. Coinbase has also applied for a National Trust Company license from the Office of the Comptroller of the Currency, and the application is currently under review. Coinbase has also expanded its developer platform with APIs covering custody, payments, trading, and stablecoins. Meanwhile, Coinbase emphasizes the open payment standard x402 and is working with partners such as Cloudflare to develop the x402 Foundation to further advance the standard. In derivatives, Coinbase launched a simplified futures and perpetual futures trading experience within its main app, expanding access to derivatives. Coinbase also launched Coinbase Advisor, an AI financial assistant directly embedded in the app, allowing users to ask questions, build portfolios, and receive personalized recommendations; early users are gradually gaining access to the beta version. In addition, Coinbase announced that its on-chain "all-in-one" application, Base, has launched in over 140 countries. Coinbase is also expanding its business-facing financial services, with Coinbase Business now fully available to eligible businesses in the US and Singapore, providing a crypto-native alternative to traditional corporate banking and payment infrastructure. This product allows startups and small businesses to send and receive funds globally, manage crypto assets, earn USDC balance rewards, and automate financial workflows. Coinbase stated that businesses will soon have access to the same extended trading functionality available on its retail platform.

Machi increased his long positions in BTC, ETH, and HYPE, resulting in a cumulative loss of over $23 million.

According to Onchain Lens monitoring, Machi deposited 149,904 USDC into HyperLiquid and opened new long positions in BTC (40x) and HYPE (10x), while also increasing its long position in ETH (25x). Its current cumulative losses have exceeded $23 million.

Willy Woo: Taproot type address usage has dropped from 42% to 20% since 2024, possibly due to quantum security concerns.

On-chain analyst Willy Woo, citing Glassnode data, points out that the proportion of Bitcoin transactions using the Taproot output type has significantly decreased from a high of 42% in 2024 to approximately 20% currently. Woo states that this is the first time he has seen the latest output format "lose adoption" among users, suspecting the main reason might be Taproot's higher exposure risk to quantum computing, while older formats like SegWit and Legacy are less susceptible to quantum attacks. Last month, Willy Woo stated that Bitcoin needs to protect itself from quantum computing threats and recommended migrating to SegWit addresses for safety.

AI startup Manus achieved over 100 million RMB in revenue within eight months of its launch, and has processed a total of 147 trillion tokens.

According to Manus' official announcement, since its launch in March, the company's annualized recurring revenue (ARR) has exceeded $100 million, and its total revenue run rate has surpassed $125 million, making it the fastest AI startup to achieve this milestone. During this period, it processed 147 trillion tokens and created over 80 million virtual computer instances, marking the rapid expansion of its general-purpose AI agent product in the fields of task automation and intelligent collaboration.

Canaan Technology announced an extension of its $30 million share buyback program, extending it to 12 months.

According to PR Newswire, the board of directors of Canaan Inc. (NASDAQ: CAN) has authorized a repurchase of up to $30 million worth of ADS or Class A ordinary shares over the next 12 months, funded by existing cash. The company stated that it will conduct the repurchase through open market, private placement, or block trades, in compliance with the Securities Exchange Act of 1934 and its insider trading policy. The pace of the repurchase will depend on price, trading volume, and market conditions. The previous six-month repurchase program, which began on May 27, has expired, with a cumulative repurchase of 6.5864 million ADSs, totaling approximately $4.9 million, including 1.5053 million ADSs, worth approximately $1.5 million, repurchased between November 19 and 27. The company may adjust the size and terms of the program as needed.

Harbor has raised $4.2 million in strategic funding, led by Susquehanna Crypto and Triton Capital.

AirSwap founder Michael Oved announced the official launch of Harbor, a next-generation decentralized exchange platform he co-founded with former THORChain core engineer Pluto. Harbor focuses on cross-chain trading of native assets, positioning itself as a high-performance, chain-neutral DeFi liquidity infrastructure, dedicated to providing professional-grade matching and scalability for wallets and applications. The project has completed a $4.2 million strategic funding round led by Susquehanna Crypto and Triton Capital, with supporters including market makers such as Auros, Kronos, and Selini.

The Bitcoin OG address, holding over $680 million in long positions, transferred 368,000 ETH to five new wallets.

According to Lookonchain monitoring, a major on-chain holder, "BitcoinOG (1011short)," recently transferred a total of 368,106 ETH (approximately $1.08 billion) to five new wallets. This address currently holds long positions in BTC, ETH, and SOL with a total value exceeding $680 million.

DTCC's collaboration with Canton Network to advance the tokenization of US Treasury bonds has received a "no objection" letter from the SEC.

According to CoinDesk, Wall Street settlement giant DTCC has announced a partnership with privacy-oriented blockchain Canton Network to advance the tokenization of U.S. Treasury assets held by DTCC. The project has received a no-objection letter from the SEC and plans to launch a minimum viable product (MVP) in the first half of 2026, scaling up based on customer demand. DTCC will co-chair the Canton Foundation with Euroclear, participating in the development of industry decentralized standards.

Moon Pursuit Capital launches $100 million market-neutral crypto fund, focusing on stable returns.

According to CoinDesk, crypto investment firm Moon Pursuit Capital has announced the launch of a $100 million market-neutral quantitative fund aimed at providing manageable returns across timeframes. The fund will employ an algorithm-driven strategy, supplemented by Bitcoin accumulation at lower levels and momentum trading in altcoins; its previous fund has returned nearly 170% since April 2024. The new fund will operate under a multi-jurisdictional framework to enhance global compliance and tax efficiency.

ETHGas completes $12 million seed funding round, led by Polychain Capital.

According to The Block, ETHGas has completed a $12 million seed funding round led by Polychain Capital and launched Ethereum's first block space futures market, attracting approximately $800 million in non-cash liquidity commitments from validators and block builders. The platform allows for the early trading of execution rights for up to 64 blocks, aiming to improve yields and stabilize gas costs. ETHGas charges a 5% fee on transactions and is gradually advancing Ethereum's "real-time execution" architecture.

CZ: A president of a country once requested that the project be listed on a cryptocurrency exchange, which I explicitly refused.

CZ issued a statement declaring that any intermediaries, consultants, or employees claiming to assist with project listings on Binance are engaging in fraudulent activities and should be reported immediately. Such individuals will be blacklisted or even publicly exposed. CZ cited an example of a country's president requesting a listing, which CZ explicitly refused. Binance also issued a statement reiterating its listing process and anti-fraud mechanisms.

Bloomberg: Binance may restructure its US market strategy after Changpeng Zhao regains influence following his pardon.

According to Bloomberg, Binance co-founder Changpeng Zhao (CZ), though holding no official position, has regained influence after receiving a pardon from Trump, supporting his crypto stance and stating his desire to "make America the crypto hub." Binance is considering relaunching its website, Binance.US, including reducing Zhao's stake to ease compliance hurdles; it is also in talks with US giants like BlackRock to deepen financial cooperation. Zhao previously pleaded guilty to anti-money laundering charges, but it remains unclear whether the pardon will lift the restrictions placed on him.

Tether launches PearPass, a decentralized password manager that eliminates cloud dependency.

Tether has released PearPass, an open-source password manager that uses end-to-end encryption and peer-to-peer device synchronization. Recovery is performed using user keys, and all credentials are stored locally, without passing through the cloud or servers. The company claims it has passed an independent security audit by Secfault Security and supports free use across platforms.

Messari: Stablecoin market capitalization on BNB Chain grows 32.3% to $13.9 billion

According to Messari's latest report, BNB Chain's market capitalization increased by 51.6% quarter-over-quarter to $140.4 billion in Q3 2025, ranking fifth in the crypto market capitalization. Total value locked (TVL) in DeFi increased by 30.7% to $7.8 billion, surpassing Tron to rise to third place. Stablecoin market capitalization increased by 32.3% to $13.9 billion, with USDT accounting for 57.4%, USDe surging more than tenfold quarter-over-quarter to $430 million, and USDF increasing to $360 million.

A whale transferred 10,169 ETH to Binance, making a profit of $11.36 million.

According to Onchain Lens monitoring, a whale recently transferred 10,169 ETH to Binance, equivalent to approximately $29.77 million at the time, accumulating a profit of approximately $11.36 million. This whale had previously withdrawn 19,505.5 ETH for staking and then deposited 20,269 ETH back in, earning 763.58 ETH in staking profits during this period.

Binance Alpha will launch on VOOI on December 18th.

Binance Alpha will be the first to support VOOI (VOOI) trading on December 18th. Eligible users can then claim airdrop rewards using their Binance Alpha points on the Alpha event page after trading begins. Further details will be announced later.

Binance Alpha will list AgentLISA (LISA) on December 18th.

Binance Alpha will become the first platform to list AgentLISA (LISA) on December 18th. Eligible users can claim the airdrop using Binance Alpha Points on the Alpha event page after trading opens on Alpha. Further details will be announced separately.