Mars Morning Report | SEC Expected to Issue “Innovation Exemption” for Crypto Industry in “About a Month”

SEC Chair: SEC Expected to Issue “Innovation Exemption” for Crypto Industry “Within About a Month”

SEC Chair Paul S. Atkins stated in a CNBC interview that the SEC expects to issue an “innovation exemption” for the crypto industry “within about a month.” He mentioned that the original timeline was delayed due to the government shutdown, but the SEC has now resumed normal operations and will continue to advance a regulatory framework that supports crypto innovation, aiming to reverse the resistance stance of previous years. Atkins also said the SEC plans to introduce new policies next year to improve the IPO market environment.

UK “Digital Assets and Other Property Bill” Officially Comes into Effect

UK House of Lords Speaker John McFall announced on Tuesday that the “Property (Digital Assets etc.) Bill” has received Royal Assent from King Charles III, meaning the bill has officially become law. The bill explicitly defines cryptocurrencies, stablecoins, and other digital assets as personal property protected by law, providing a legal basis for the identification of digital asset ownership, asset recovery, bankruptcy, and inheritance matters. It is described as a “significant milestone” for UK crypto regulation. Data from UK financial regulators shows that as of last year, about 12% of UK adults held crypto assets.

BlackRock CEO: Some Unnamed Sovereign Funds Are Buying Bitcoin to Establish Long-Term Positions

BlackRock CEO Larry Fink revealed that some unnamed sovereign funds are purchasing Bitcoin, and when the price of Bitcoin fell from its peak of $126,000, “they bought even more.” Larry Fink stated that these funds are buying “gradually” and increased their holdings when Bitcoin’s price dropped to the $80,000 range, aiming to establish long-term positions. In recent months, sovereign funds from Abu Dhabi and Luxembourg have disclosed purchases of BlackRock IBIT Bitcoin ETF shares.

Bank of America Recommends Wealth Management Clients Allocate 1%–4% to Crypto Assets for the First Time

Bank of America (BofA) has, for the first time, recommended its wealth management clients allocate 1%–4% to crypto assets. This advice applies to Merrill, Private Bank, and Merrill Edge clients, and will officially cover and provide research on four Bitcoin ETFs—BITB, FBTC, Grayscale Mini Trust, and IBIT—starting January 5, 2026. Previously, BofA advisors were not allowed to proactively recommend crypto products; now, approximately 15,000 wealth advisors can directly suggest allocations to clients, marking the official inclusion of crypto assets in the bank’s mainstream asset allocation system.

Strategy Announces $1.44 Billion USD Reserve for Dividend Payments

Strategy has announced the establishment of a $1.44 billion USD reserve to cover at least 12 months of preferred stock dividends and debt interest, with plans to expand this to 24 months. The reserve is funded by ATM equity offerings. The company currently holds 650,000 BTC, about 3.1% of the total supply. Previously, Strategy stated that selling Bitcoin would only be considered a “last resort” if mNAV (per-share net value of Bitcoin) dropped below 1 and further financing was impossible. CEO Phong Le emphasized the company has no plans to sell Bitcoin and remains committed to a long-term holding strategy, but if the premium disappears and fundraising is hindered, technical reductions may not be ruled out to protect shareholder returns.

Bitcoin Selling Pressure Nears End, Current Phase Bottom Forming

On December 7, CryptoOnchain published an analysis stating that Bitcoin’s SOPR ratio (LTH-SOPR / STH-SOPR) has dropped to 1.35, the lowest level since 2024, with prices pulling back to around $89,700. 1. Large-Scale Selling Ends When the SOPR ratio is high, it means long-term holders (LTH) are realizing profits more strongly compared to short-term holders (STH). Now, with the ratio down to 1.35, it indicates the large-scale distribution phase by old coins has significantly subsided, and the profit gap between old players and new funds is narrowing. 2. Market Sentiment Significantly Cools The SOPR ratio is often used as an oscillating indicator of market sentiment. This drop indicates the market has undergone a complete “reset,” clearing out speculative bubbles from the early cycle. Historical data shows that in macro bull markets, when the SOPR ratio drops to these low levels, selling pressure often nears its end. If this indicator stabilizes or rises again around 1.35, it may signal a phase bottom is forming, laying a healthier foundation for the next rally.

Ethereum Mainnet Successfully Completes Fusaka Upgrade and Finalization

The Ethereum mainnet has successfully completed the Fusaka upgrade and achieved finalization. Fusaka is an important step in Ethereum’s scaling roadmap: improving L1 performance, expanding blob capacity, enhancing rollup cost-efficiency, and bringing UX improvements. It also introduces the Blob Parameter Only (BPO) fork mechanism to safely increase blob capacity when rollup demand rises. According to reports, Consensys has stated that Ethereum now plans to shift from one upgrade per year to an “accelerated pace of two hard forks per year.”

Next Week Macro Outlook: Fed Rate Cut “A Foregone Conclusion,” Hawk-Dove Debate in Focus

According to Jin10, the final FOMC meeting of the year will take place next week, with the rate decision announced at 3:00 a.m. (UTC+8) on Thursday, followed by Fed Chair Powell’s monetary policy press conference at 3:30 a.m. (UTC+8). According to CME FedWatch, the probability of a 25-basis-point rate cut next week is 84%. The upcoming Fed meeting is expected to be one of the most contentious in recent years, with investors focusing on disagreements among policymakers over the outlook for rate cuts and signals from Chair Powell about the future policy direction. Of the 12 FOMC voting members, 5 oppose or are skeptical about further easing, while 3 board members support a rate cut. Since 2019, the FOMC has never seen three or more dissenting votes at any meeting, making the dissenters closely watched. Key macro data and events are as follows: Tuesday: Reserve Bank of Australia rate decision and RBA Governor Bullock’s monetary policy press conference; Wednesday: US Q3 Employment Cost Index (QoQ); Bank of Canada rate decision; Thursday: FOMC rate decision and Summary of Economic Projections, Fed Chair Powell’s press conference; US initial jobless claims for the week ending December 6; Friday: Fed releases US household financial health data from the Q3 2025 Flow of Funds report; 2026 FOMC voter, Philadelphia Fed President Harker, speaks on the economic outlook; 2026 FOMC voter, Cleveland Fed President Mester, delivers remarks; Chicago Fed President Goolsbee participates in a host discussion ahead of the Chicago Fed’s 39th Annual Economic Outlook Symposium. Market Closures: On Wednesday, NYSE closes early at 2:00 a.m. Beijing time; on Thursday, US, multiple European, Korean, and Australian equity markets are closed; CME’s gold, oil, FX, and index futures contracts and ICE’s Brent crude futures contracts are suspended for the entire day.