Gate Daily (December 15): SEC releases crypto custody guidelines; UK plans to implement crypto regulation rules by 2027

Bitcoin (BTC) started the week with a sharp decline, currently around $88,460 as of December 15. The UK Treasury plans to establish new crypto regulations to be implemented from 2027. The U.S. Securities and Exchange Commission (SEC) has issued guidelines on cryptocurrency custody, aimed at educating investors. Hong Kong Legislative Council member Wu Jiezhuang successfully re-elected, promising to continue promoting Web3 development.

Macro Events & Crypto Hotspots

1. According to The Guardian, the UK Treasury is drafting new regulations to include cryptocurrencies under the Financial Conduct Authority (FCA) oversight from 2027, aligning them with other financial products. Treasury Secretary Rachel Reeves stated that this move aims to enhance transparency, boost consumer confidence, and combat illegal activities. The UK government also plans to ban political donations via cryptocurrencies in response to concerns over unknown crypto fund sources.

2. The SEC released guidelines outlining best practices for investor-focused crypto custody and storage, including the pros and cons of cold storage versus online hot wallets, how to choose third-party custodians, and the importance of safeguarding private keys. Private keys are used to sign crypto transactions and verify identities on-chain. According to the SEC, investors choosing third-party custodians should always understand how custodians plan to manage entrusted assets, including whether assets will be lent out or mixed with other clients’ assets. The investor notice aims to promote best practices in crypto storage and custody, reflecting a comprehensive regulatory policy shift following the 2024 U.S. presidential election and the appointment of Paul Atkins as SEC Chair.

3. On December 14, Hong Kong Legislative Council member Wu Jiezhuang was re-elected to the eighth term. During the election, he stated he would continue to promote Hong Kong’s Web3 development and assist the Hong Kong SAR government in developing frontier industries such as embodied intelligence, quantum computing, and space technology. Wu also addressed recent questions about Hong Kong’s Web3 development, believing that the development of stablecoins in Hong Kong will remain stable and continue forward. Regarding RWA, Hong Kong has already promoted a regulatory sandbox; Wu believes different industries can boldly experiment with integrating Web3 technology, which could drive substantial real-world applications. He also plans to help build a talent ecosystem in the industry, attracting more developers and professionals to settle in Hong Kong.

News Highlights

1. UK Treasury plans to establish crypto regulations to be implemented from 2027

2. Phantom launches early access to its cash debit card, first available in the US

3. Robinhood achieves stock tokenization on Arbitrum, market cap surpasses $13 million

4. Citigroup: Upcoming non-farm payroll report may reveal more conflicting signals

5. The team behind YO Protocol, YO Labs, completes $10 million Series A funding, led by Foundation Capital

6. Analysis: The market is closely watching several macro data points this week; if BTC falls below $86,000, a larger correction may occur

7. Michael Saylor releases Bitcoin Tracker update again; this week may reveal increased holdings data

8. Data: Tokens like ZRO, ARB, STRK, etc., will undergo large unlocks next week, with ZRO unlock worth approximately $38.6 million

9. Glassnode co-founder analysis on the impact of Japan’s rate hike: Bitcoin will thrive under policy pressure

Market Trends

1. Latest Bitcoin news: $BTC started the week with a deep decline, currently around $88,460, with $960 million in liquidation over the past 24 hours, mainly long positions;

2. After the Federal Reserve (Fed) cut interest rates last week, some profit-taking selling pressure emerged, leading to a decline in U.S. stocks on December 12. The Dow Jones Industrial Average fell 245.96 points, or 0.50%, to close at 48,458.05. The S&P 500 dropped 73.59 points, or 1.07%, to close at 6,827.41. The Nasdaq, mainly tech stocks, declined 398.69 points, or 1.69%, to close at 23,195.17. The Philadelphia Semiconductor Index fell 377.918 points, or 5.10%, to close at 7,033.566.

(Source: Gate)

3. According to Gate’s BTC/USDT liquidation map, with the current price at $88,184.40, if it drops near $87,618, total long liquidations will exceed $121 million; if it rises to around $90,926, total short liquidations will exceed $706 million. Short positions are significantly more liquidated than longs, so it’s advisable to control leverage ratios reasonably to avoid large-scale liquidations during market fluctuations.

(Source: Coinglass)

4. In the past 24 hours, spot inflows totaled $880 million, outflows $1.12 billion, net outflow $240 million.

(Source: Coinglass)

5. In the past 24 hours, net outflows led by contracts of $XPL, $TRX, $NIGHT, $BEAT, $FHE , indicating trading opportunities.

KOL Selected Insights

Phyrex Ni (@Phyrex_Ni): “Every weekend I worry about some unexpected event. Although there’s no obvious negative news today, BTC still broke below $89,000. Not sure if it’s due to concerns about Japan’s rate hike starting next week. Besides Japan’s rate hike, upcoming U.S. non-farm payroll and inflation data could trigger market movements. But the key is to watch how U.S. stocks open tomorrow; after all, cryptocurrencies don’t have their own narrative and are still highly synchronized with tech stocks.

As long as weekend prices aren’t too exaggerated, I don’t pay much attention. Weekend liquidity is usually the lowest. Currently, the market focus has shifted back to data, especially non-farm payroll figures, which will be more important next week. Japan’s rate hike is already certain, and the market should have enough expectations.

Looking at Bitcoin data, although the price has declined, the turnover rate hasn’t increased; it’s slightly decreased compared to Saturday. This suggests it’s not panic selling or whale dumping, but rather low liquidity leading to insufficient buying power. We’ll see if it recovers after U.S. stocks open on Monday.

Since turnover isn’t high, the distribution of chips isn’t problematic, and there are no signs of panic or selling by investors. Sentiment remains normal, especially among high-position loss investors who are still very calm.”

Today’s Preview

1. China’s November industrial added value (year-over-year), previous value 4.90%

2. China’s November total retail sales of consumer goods (year-over-year), previous value 2.9%

3. Canada’s November core Consumer Price Index (CPI) (year-over-year), previous value 2.7%

4. Canada’s November CPI (year-over-year), previous value 2.2%

5. U.S. December NAHB Housing Market Index, previous value 38

6. China’s State Council holds a press conference on the national economic operation

7. Federal Reserve Board member Milam delivers a speech

8. New York Fed President Williams speaks on economic outlook