**Bitcoin Hovers Around $86K as Year-End Volatility Grows**

Bitcoin is currently trading near $86,000, but analysts are warning that the market is in a delicate state. As the year comes to a close, low trading activity, cautious investors, and more bets against the price are making Bitcoin’s future uncertain. The clash between hopes for a friendlier Federal Reserve and a risk-averse market keeps crypto on edge.

**Coinbase Wants to Be the “Everything Exchange”**

Coinbase is stepping up its game by expanding far beyond just crypto trading. The platform is introducing new services to become a one-stop shop for all things finance.

– **Stock & ETF Trading:** Coinbase will soon let U.S. users trade stocks and ETFs with no commission fees and extended trading hours. They’re also preparing to launch stock-related futures and even tokenized versions of stocks in the future.

– **Prediction Markets & Solana DEX:** Coinbase is partnering with Kalshi to offer prediction markets and integrating with Jupiter to allow trading on Solana decentralized exchanges (DEX) directly from the app.

– **Custom Stablecoins & Payments:** Coinbase is introducing its own branded stablecoins and expanding its payment tools. This move aims to compete with other blockchain payment providers.

– **Derivatives Trading:** More users will have access to simple futures and perpetual futures contracts, all available within the main Coinbase app.

– **AI Tools & Business Banking:** The company is launching Coinbase Advisor (an AI tool) and Coinbase Business (banking for crypto firms). They’re also continuing to push their Base App, previously known as Coinbase Wallet, to support deeper onchain activity.

**SEC Sets Rules on Crypto Custody for Broker-Dealers**

The SEC has issued new guidance for broker-dealers working with crypto. To meet investor protection rules, firms must have full control over the private keys that secure digital assets like tokenized stocks or bonds.

– Broker-dealers need written procedures to prevent theft or loss of these keys.
– If a firm has serious security risks, it can’t claim it has custody of client assets.
– The SEC also expects plans for handling blockchain disruptions, legal freezes, or changes in governance.

**Federal Reserve Loosens Crypto Rules for State Banks**

The Fed has dropped a 2023 policy that heavily restricted state banks from offering crypto services unless they followed national bank rules. Now, these banks can apply for permission on a case-by-case basis.

– This marks a more flexible stance by the Fed on digital assets.
– It could benefit crypto-friendly banks like Custodia Bank in Wyoming, which previously struggled under the old rules.
– The shift aligns with broader regulatory easing in the U.S.

**Coinbase Expands in India with CoinDCX Investment**

Coinbase has received approval from India’s competition regulator to invest in CoinDCX, a major Indian crypto platform.

– The exact size of the investment wasn’t disclosed, but CoinDCX was previously valued at $2.45 billion.
– Coinbase is rebuilding its presence in India after relaunching its app and reopening user signups this month.
– India remains a top crypto market, ranking #1 globally in adoption three years in a row.

**SoFi Launches SoFiUSD Stablecoin for Faster Payments**

SoFi has introduced SoFiUSD, a fully-backed U.S. dollar stablecoin aimed at helping banks and fintech companies move money quickly and cheaply.

– SoFiUSD operates on public blockchains starting with Ethereum.
– Businesses can use it directly or create their own white-labeled stablecoins using SoFi’s tech.
– This launch follows SoFi’s move to allow users to trade nearly 30 cryptocurrencies through its app.

**What’s Coming Up Next?**

– Key U.S. economic data (PCE report) will be released at 8:30 a.m. ET on Friday.
– At the same time, Federal Reserve official John Williams will give a speech.

Stay tuned for more updates as crypto markets head into an uncertain but potentially transformative end to the year.