7.5 AI Daily The encryption industry is in constant turmoil: regulation, innovation, and challenges coexist.

1. Headlines

1. The U.S. government has released a new draft of the cryptocurrency regulatory framework.

The U.S. Department of the Treasury and the Securities and Exchange Commission have jointly released a new draft cryptocurrency regulatory framework aimed at strengthening oversight of crypto assets. The draft proposes to classify most cryptocurrencies as securities, requiring them to be regulated by the SEC. Additionally, the draft suggests implementing strict scrutiny and reserve requirements for stablecoin issuers. Furthermore, the draft includes measures to enhance anti-money laundering and counter-terrorism financing efforts.

Once this regulatory framework draft is approved, it will have a profound impact on the cryptocurrency industry. On one hand, a large number of crypto assets will be subject to scrutiny and regulation by the Securities Regulatory Commission, increasing compliance costs; on the other hand, strict regulation of stablecoins may also affect their application in payment and financial sectors. However, industry insiders believe that a clear regulatory framework will also bring greater compliance certainty to the cryptocurrency industry, which is beneficial for the long-term development of the industry.

2. OpenAI launched GPT-4, significantly improving performance and raising privacy concerns.

OpenAI officially released the GPT-4 large language model today, demonstrating impressive performance improvements in multiple benchmark tests. GPT-4 not only has made breakthrough advances in natural language understanding and generation but also for the first time possesses the ability to understand and generate images.

The powerful performance of GPT-4 will undoubtedly drive the application of artificial intelligence in various fields, but it has also raised concerns about privacy and security. Some experts warn that the powerful capabilities of GPT-4 could be misused to generate false information, infringe on privacy, and other illegal activities. In addition, the massive computing resources required for training GPT-4 have also raised questions about energy consumption and carbon emissions.

OpenAI stated that GPT-4 adopted various privacy protection measures during its training process and will continue to strengthen related efforts. However, industry insiders believe that comprehensive laws and regulations need to be formulated to regulate privacy and security issues in artificial intelligence.

3. Google releases a new AI chip tensor processing unit, performance skyrockets

Google today released its latest generation of artificial intelligence dedicated chips, the Tensor Processing Units ( TPU ), which offer more than a 5-fold performance improvement over the previous generation. The new generation of TPU has not only seen a significant increase in computing power but also notable improvements in energy efficiency.

The powerful performance of TPU will further enhance Google's technological advantage in the field of artificial intelligence. Analysts believe that the release of TPU will accelerate the application of artificial intelligence in Google's core business areas such as search and cloud computing, and lay a solid foundation for Google's layout in the emerging AI market.

However, the release of TPU has also raised concerns among upstream and downstream companies in the industry chain. On the one hand, the powerful performance of TPU may compress the market space for other chip manufacturers; on the other hand, the significant increase in computational power demand from TPU may also exacerbate the energy consumption issues across the entire industry.

4. Microsoft deepens cooperation with OpenAI to integrate GPT technology into the Office suite

Microsoft announced today that it will further deepen its collaboration with OpenAI to integrate large language model technologies like GPT into Microsoft's Office suite. Users will be able to use GPT to assist in writing, analyzing, and creating while using Office software such as Word, Excel, and PowerPoint.

This move is seen as another important layout by Microsoft in the field of artificial intelligence. Analysts believe that the integration of GPT technology will significantly enhance the productivity of Office software, bringing new competitive advantages for Microsoft in the office software market. At the same time, it will also promote the implementation of artificial intelligence in enterprise-level application scenarios.

However, some experts have raised concerns about the privacy and security of GPT technology in enterprise applications. Microsoft stated that it will implement various technical measures to protect the privacy and security of user data.

5. DeepMind releases Alpha, challenging human programmers' coding abilities.

DeepMind today launched an artificial intelligence programming system called Alpha, which has demonstrated coding abilities surpassing those of humans in multiple programming competitions. Alpha is not only capable of efficiently solving complex algorithm and data structure problems, but it can also generate code based on natural language descriptions.

The emergence of Alpha marks a breakthrough in artificial intelligence within the programming field, which could have a profound impact on the software development industry in the future. On one hand, Alpha can assist programmers in improving development efficiency; on the other hand, it may also replace some programmers' jobs.

Industry insiders believe that the release of Alpha will accelerate the application of artificial intelligence in the field of software development, but it is also necessary to pay close attention to the potential employment impacts that artificial intelligence systems may bring and to formulate corresponding policy responses.

2. Industry News

1. The price of Bitcoin has surpassed the $110,000 mark, but there are still doubts about the subsequent upward momentum.

The price of Bitcoin has broken through the important psychological barrier of 110,000 US dollars in the past 24 hours, reaching a high of 111,200 US dollars. This increase is mainly driven by positive macroeconomic data and a continuous influx of institutional investors. However, analysts remain cautious about whether Bitcoin can maintain its footing at this level.

The trading volume data shows that despite the price increase, there has not been a significant growth in trading volume, which may indicate a lack of sufficient buying support. Additionally, the volatility indicator for Bitcoin is also at a low level, suggesting that market sentiment is becoming cautious. Some analysts believe that Bitcoin may encounter significant resistance around $110,000, making it difficult to sustain the upward trend in the short term.

However, there are also viewpoints that believe after Bitcoin breaks the $110,000 mark, it may attract more funds, driving the price further up. After all, as the leader of cryptocurrencies, Bitcoin's price movements often lead the entire market. If Bitcoin can gain strong support at its current position, it is not impossible for it to break through $120,000 in the coming weeks.

Overall, the short-term trend of Bitcoin still carries considerable uncertainty. Investors need to closely monitor changes in indicators such as trading volume and volatility, as well as developments in the macroeconomic situation, to prudently seize investment opportunities.

2. Ethereum faces significant congestion, causing Gas fees to soar and raising community concerns.

The Ethereum network has experienced severe congestion in the past 24 hours, with Gas fees soaring to a high of 0.2 ETH per transaction. This situation has sparked widespread questioning and dissatisfaction within the community, with many users stating that the scalability issues of Ethereum need to be addressed urgently.

The main reason for this congestion is that a new game called "Crypto Raiders" launched on Ethereum, resulting in a massive influx of users that increased the network load. Analysts point out that Ethereum's current design often encounters bottleneck issues when facing large-scale concurrent transactions, which in turn leads to a surge in Gas fees.

The issue of Gas fees on Ethereum has always been a focal point of debate within the community. Supporters believe that the launch of Ethereum 2.0 will significantly enhance network throughput and fundamentally address the scalability problem. However, critics question that the progress of Ethereum 2.0 is too slow, making it difficult to fully resolve the high Gas fee issue in the short term.

High Gas fees not only affect the user experience of ordinary users, but may also hinder the further development of the Ethereum ecosystem. Some developers and project teams have begun to consider migrating to other more scalable public chains. If the Gas fee issue of Ethereum persists, it may accelerate the outflow of the ecosystem.

Currently, Ethereum's gas fees have fallen, but they are still far above normal levels. There are also differences within the community regarding the future path of Ethereum; whether to accelerate the advancement of Ethereum 2.0 or to seek other alternatives remains to be tested by time.

3. The Solana ecosystem continues to heat up, with SOL price breaking through 40 dollars.

The Solana ecosystem has continued to heat up over the past week, with the price of SOL tokens breaking through the $40 mark, setting a new historical high. Analysts believe that the continuous development of the Solana ecosystem and the influx of popular applications such as DeFi and NFTs are the main drivers behind the rise in SOL prices.

Data shows that there are currently over 400 projects deployed on the Solana network, covering multiple fields such as DeFi, NFT, and GameFi. Among them, DeFi protocols like Serum and NFT platforms like Solanart and DigitalEyes have attracted a large number of users and funds.

At the same time, the Solana ecosystem is also continuously expanding. The well-known cryptocurrency exchanges FTX and Coinbase have successively announced their support for Solana ecosystem projects, injecting new growth momentum into it. In addition, the Solana Foundation is also continuously investing in potential projects to promote ecosystem development.

However, some analysts are cautious about the development prospects of the Solana ecosystem. They believe that Solana has certain deficiencies in decentralization and security, and if significant issues arise, it could affect the entire ecosystem. In addition, the current growth of the Solana ecosystem also shows signs of a certain bubble tendency, and risks need to be monitored.

Overall, the continued heating of the Solana ecosystem has driven up the price of SOL, but investors must remain rational when investing, closely monitor the actual situation of ecosystem development, and carefully manage risks.

4. The altcoin market is once again in a frenzy, with investor sentiment becoming exuberant.

In the past week, the altcoin market has once again sparked a wave of frenzy. Well-known altcoins like Dogecoin and Shiba Inu have seen significant price increases, and investor sentiment has become increasingly exuberant.

Data shows that the price of Dogecoin has risen by nearly 30% in the past week, while Shiba Inu's increase has exceeded 50%. In addition to these two mainstream altcoins, there are also many lesser-known altcoins whose increases have surpassed 100%.

The main reason driving this round of altcoin frenzy is Tesla CEO Elon Musk's continued support for Dogecoin on social media. Musk has not only stated that he will continue to buy Dogecoin but also hinted that Tesla may accept Dogecoin as payment.

At the same time, some emerging altcoin projects are actively marketing themselves, attracting a large influx of speculative funds. For example, an altcoin project called "DogeMusk" has raised millions of dollars in just a few days.

However, some analysts have expressed concerns about the frenzy in the altcoin market. They believe that altcoins often lack practical use, and their price fluctuations are mainly driven by speculative sentiment, posing a high investment risk. If the speculative bubble bursts, it could lead to significant losses for investors.

Overall, the enthusiasm in the altcoin market has reignited investors' passion, but investors need to remain rational when participating, carefully assess risks, and avoid blindly following trends.

5. Cryptocurrency regulatory policies are becoming stricter, and the industry's development may be affected.

Recently, multiple countries and regions have introduced stricter cryptocurrency regulatory policies, which may affect the development of the cryptocurrency industry to some extent.

The latest draft of the cryptocurrency asset regulatory framework released by the UK government proposes to implement strict anti-money laundering and counter-terrorism financing regulations on institutions such as cryptocurrency exchanges and wallet providers. In addition, the UK will also ban the issuance of algorithmic stablecoins to prevent financial stability risks.

At the same time, the European Union is also advancing the legislative process of the regulatory framework for the crypto asset market, MiCA. According to the latest draft, MiCA will implement comprehensive regulations on entities such as crypto asset issuers and exchanges, and set strict entry thresholds for stablecoin issuers.

In addition to the UK and the EU, countries and regions such as the United States and Singapore are also increasing their regulatory efforts on the cryptocurrency industry, primarily to prevent financial risks and protect the interests of investors.

Industry insiders believe that the increasingly strict regulatory policies on cryptocurrencies will, to some extent, affect the speed of development in the industry. On one hand, the increase in compliance costs may hinder the emergence of new innovative projects; on the other hand, excessive regulation may also impact the decentralized nature of cryptocurrencies.

However, there are also views that reasonable regulation is beneficial for the long-term healthy development of the cryptocurrency industry. Through a sound regulatory system, financial risks can be effectively prevented, investor interests can be safeguarded, thereby creating a good environment for industry development.

Overall, the direction of cryptocurrency regulatory policies will directly affect the development prospects of the industry. All parties in the industry need to maintain a high level of attention, actively participate in policy formulation, and strive to seek a balance between compliance and innovation.

6. The DeFi ecosystem continues to heat up, with TVL reaching a new high.

With the continued rise of the DeFi craze, the total value locked in the DeFi ecosystem (TVL) has set a new record in the past week, surpassing the $100 billion mark. This data once again confirms the ongoing development trend of the DeFi ecosystem.

The main reason for the continuous increase in TVL is the rapid growth of TVL in some popular DeFi protocols. Taking Curve as an example, its TVL has increased by nearly 20% in the past week, surpassing $10 billion. The TVL of well-known protocols such as Aave and Compound has also seen varying degrees of growth.

At the same time, some emerging DeFi protocols are rapidly rising. For example, the Kyber protocol, which focuses on liquidity aggregation, has seen its TVL grow nearly five times in the past month. Analysts believe that the emergence of these new protocols contributes to the diversified development of the DeFi ecosystem.

However, some analysts are concerned about the continued heating of the DeFi ecosystem. They believe that there is a certain bubble tendency in the current DeFi ecosystem, and the rapid growth of TVL may not fully reflect the real demand. If the bubble bursts, it could lead to significant losses for investors.

In addition, the DeFi ecosystem also faces certain challenges in terms of security and regulatory compliance. Recent frequent hacking incidents and increasingly stringent regulatory policies may impact the development of the DeFi ecosystem.

Overall, the DeFi ecosystem is in a period of rapid development, but investors still need to be cautious when participating, closely monitor industry dynamics, and assess various risks. Only by finding a balance between compliance and innovation can the DeFi ecosystem achieve sustainable development.

3. Project Highlights

1. Sui blockchain launches native USDC stablecoin to accelerate ecosystem development.

The Sui blockchain is a new Layer 1 blockchain developed by Mysten Labs, aimed at providing high-performance, low-cost decentralized applications. Recently, Sui announced a partnership with Circle to launch a native USDC stablecoin on the Sui chain. This move will bring liquidity support to the Sui ecosystem and accelerate the development of applications such as DeFi and NFTs.

The Sui blockchain employs an innovative parallel execution engine and an asset-based programming model, enabling a processing capacity of up to millions of transactions per second. The launch of native USDC will inject liquidity into the Sui ecosystem, attracting more developers and users. Meanwhile, the addition of USDC also provides interoperability for Sui with mainstream public chains like Ethereum.

Industry insiders believe that Sui's technological advantages and USDC's liquidity support will give it a competitive edge in the public chain race. Some analysts expect Sui to become a popular track for the next generation of DeFi and NFT applications. However, there are also views that Sui is still in its early development stage, and its ecological construction and user expansion will take time.

Overall, the launch of native USDC by Sui is an important step in its ecosystem development, and it is worth keeping an eye on its subsequent developments.

2. Aptos launched upgradeable smart contract functionality, enhancing the flexibility of on-chain applications.

Aptos is an emerging Layer 1 blockchain founded by former Meta employees, which recently launched an upgradable smart contract feature. This innovation brings greater flexibility and scalability to applications on the Aptos chain, promising to drive ecological development.

Traditional smart contracts cannot be modified once deployed, which brings many inconveniences to the iteration and upgrade of applications. The upgradable smart contract feature of Aptos allows developers to upgrade and fix contracts without affecting existing applications. This not only improves development efficiency but also enhances the adaptability of applications.

The Aptos team stated that the upgradable smart contract feature will drive more innovative applications to land on the Aptos chain. Some DeFi projects have begun to explore using this feature to optimize existing protocols. Meanwhile, Aptos is also continuously improving its underlying technology to enhance on-chain performance and security.

Analysts believe that the upgradable smart contract feature is a major tool for Aptos to attract developers. However, some are concerned that this feature may bring new security risks. Overall, Aptos's technological innovations are worth paying attention to, and the development of its ecosystem will also determine the true value of this feature.

3. Arrum launches Arrum Or, expanding the Layer 2 scaling solution.

Arrum is one of the leading Layer 2 scaling solutions for Ethereum. Recently, Arrum launched a new Layer 2 scaling solution called Or, aimed at further enhancing Ethereum's scalability.

Or adopts a different technological route compared to Arrum's existing solutions, achieving high throughput through data sharding and parallel execution. According to official data, Or can achieve a processing capacity of 100,000 transactions per second in a testnet environment, significantly surpassing the performance level of the Ethereum mainnet.

The Arrum team stated that the launch of Or will bring more innovative applications to the Ethereum ecosystem. Some high-frequency trading DApps have already begun to migrate to Or for better performance experience. Meanwhile, Or is also exploring interoperability with Arrum's existing solutions.

Industry insiders have affirmed the performance of Or, believing it has the potential to become an important complement to Ethereum's scalability. However, some analysts have expressed concerns that Or may siphon off Arrum's existing ecosystem, affecting its development. Overall, the launch of Or adds a new option to the path of Ethereum's scalability.

4. Aave releases a new roadmap, focusing on DeFi innovation and cross-chain development.

Aave is a leading DeFi lending protocol in the Ethereum ecosystem. Recently, Aave released its latest roadmap, outlining key directions for its future development, including DeFi innovation and cross-chain expansion.

In terms of DeFi innovation, Aave plans to launch new types of collateral and lending models to meet the needs of different users. At the same time, it will strengthen integration with emerging fields such as NFTs and Real World assets to expand the application scenarios of DeFi.

Cross-chain development is also a key focus for Aave. Aave has deployed lending protocols on multiple heterogeneous chains and will further enhance cross-chain interoperability and asset liquidity in the future. In addition, Aave will explore Layer 2 scaling solutions to improve on-chain performance.

Aave's new roadmap has garnered widespread attention from industry insiders. Analysts believe that Aave's innovative plans are expected to further drive the development of the DeFi ecosystem. However, some individuals are concerned that Aave may lose its core competitiveness in the process of excessive expansion.

Overall, Aave's new roadmap reflects its determination to maintain its leading position in the industry. Its development trends will have a profound impact on the entire DeFi ecosystem and are worth ongoing attention.

5. Polygon zkEVM testnet is live, leading the Ethereum ecosystem in zero-knowledge scaling.

Polygon is a well-known second-layer scaling solution in the Ethereum ecosystem. Recently, Polygon launched the zkEVM testnet based on zero-knowledge proofs, marking a significant advancement in its zero-knowledge scaling solution.

zkEVM is an innovative solution that utilizes zero-knowledge proof technology to scale the Ethereum Virtual Machine. Compared to traditional Layer 2 scaling solutions, zkEVM can achieve higher scalability and privacy protection while ensuring full compatibility with the Ethereum mainnet.

The launch of the Polygon zkEVM testnet will provide developers with a secure and reliable testing environment, helping to accelerate the development and deployment of related applications. The Polygon team stated that the zkEVM mainnet is expected to launch later this year.

Industry insiders have welcomed Polygon's zero-knowledge scaling solution, believing it is expected to become an important complement to Ethereum's scalability. However, some analysts have raised concerns that the complexity of zero-knowledge proof technology may affect user experience.

Overall, the launch of the Polygon zkEVM testnet marks the practical phase of zero-knowledge scaling in the Ethereum ecosystem. Its development will have a significant impact on the future of the entire ecosystem and is worth ongoing attention.

6. Starknet released Alpha 2 testnet, advancing Ethereum's zero-knowledge scaling process.

Starknet is a decentralized application platform based on Ethereum, utilizing zero-knowledge proof technology from StarkWare for scalability. Recently, Starknet launched the Alpha 2 testnet, marking significant progress in its zero-knowledge scalability solution.

The Alpha 2 testnet has undergone various upgrades and optimizations compared to previous versions, including improved throughput, reduced transaction latency, and enhanced security. According to official data, the throughput of the Alpha 2 testnet can reach thousands of transactions per second, significantly surpassing the performance level of the Ethereum mainnet.

The Starknet team stated that the launch of the Alpha 2 testnet will provide developers with a more user-friendly development environment, helping to accelerate the deployment of applications like DeFi and NFTs on Starknet. Meanwhile, Starknet is also actively promoting interoperability with the Ethereum mainnet.

Insiders have high hopes for Starknet's zero-knowledge scaling solution, believing it could become one of the important options for Ethereum scaling. However, some analysts have raised concerns, fearing that the complexity of zero-knowledge proof technology may affect user experience.

Overall, the release of the Starknet Alpha 2 testnet marks a new stage for zero-knowledge scaling in the Ethereum ecosystem. Its development will have a significant impact on the future of the entire ecosystem and is worth ongoing attention.

7. Celestia launches Ceres testnet, exploring modular blockchain architecture

Celestia is an innovative project aimed at building a modular blockchain network. Recently, Celestia launched a public testnet called Ceres, marking the first practical implementation of its modular blockchain architecture.

The core concept of Celestia is to split the blockchain into multiple independent modules, each responsible for specific functions such as consensus layer, execution layer, data availability layer, etc. This modular design is expected to enhance the flexibility and scalability of the blockchain.

The launch of the Ceres testnet provides developers with an environment to test and experience the Celestia modular architecture. The Celestia team stated that the Ceres testnet will continue to be optimized and improved to prepare for the future launch of the mainnet.

Industry insiders have expressed concern over Celestia's modular architecture design, believing it may bring new development possibilities to blockchain. However, some analysts have raised doubts, fearing that excessive modularization could increase the system's complexity and attack surface.

Overall, the launch of the Celestia Ceres testnet marks the first practical step in modular blockchain architecture. Its development will have a certain impact on the future of the entire industry and is worth continuous attention.

4. Economic Dynamics

1. The US employment data for May is strong, inflation pressure persists.

The U.S. Department of Labor data shows that non-farm payrolls increased by 390,000 in May, far exceeding expectations, while the unemployment rate remained stable at a low of 3.6%. This strong employment data reflects that the U.S. economy continues to maintain a robust growth momentum, but it also exacerbates inflationary pressures.

Economic Background: The U.S. economy grew by 1.3% in the first quarter of 2022, a slowdown compared to the same period last year. However, the job market remains strong, and inflation continues to hover at high levels. In May, the Consumer Price Index (CPI) rose by 8.6% year-on-year, reaching a record high in over 40 years.

Important event: To curb rising inflation, the Federal Reserve raised interest rates by 50 basis points in May and hinted at continuing significant rate hikes in the upcoming meetings. This decision aims to relieve pressure on the labor market but may also increase the risk of an economic recession.

Market reaction: Investors are cautiously optimistic about the Federal Reserve's determination. U.S. stocks dipped slightly after the employment data was released, reflecting concerns about economic slowdown. Bond yields rose, indicating worries about inflation expectations.

Expert Opinion: Goldman Sachs Chief Economist Jan Hatzius stated that the continued tightening of the labor market will force the Federal Reserve to take more aggressive actions to control inflation. However, he also warned that overly aggressive rate hikes could lead to a hard landing for the economy. JPMorgan economist Michael Feroli believes that the strong performance of the job market provides the Federal Reserve with greater policy space to combat inflation.

2. The EU agrees to impose a partial ban on Russian oil.

EU leaders reached an agreement after lengthy negotiations to ban 90% of Russian oil imports within six months. This move aims to further strike at the Russian economy and punish its invasion of Ukraine.

Economic Background: Russia is the third largest oil producer and the second largest oil exporter in the world. About 40% of the European Union's natural gas and 27% of its oil imports come from Russia. Disruption of energy imports would severely impact the European economy.

Important Event: The EU originally planned to completely ban imports of Russian oil by the end of 2023. However, under opposition from countries like Hungary, it ultimately agreed to temporarily exempt oil imported via pipelines. This concession allowed certain embargoes to pass.

Market reaction: International oil prices rose slightly after the agreement was reached. Brent crude futures briefly rose nearly 1% to $116 per barrel. Investors are concerned that supply disruptions will further drive up energy prices.

Expert Opinion: Jim Reid, Head of Macro Strategy at Deutsche Bank, stated that this agreement will put greater pressure on Europe's energy supply. He expects oil prices to continue rising in the second half of this year. Warren Patterson, a commodity strategist at ING, believes that Russian oil exports will be reallocated to the Asian market.

3. China's manufacturing sector faced the impact of the pandemic in May.

According to data from the National Bureau of Statistics of China, the official manufacturing Purchasing Managers' Index (PMI) for May ( was 49.6, lower than April's 47.4 and below market expectations. This reflects that China's manufacturing sector faced a severe impact from pandemic control measures in May.

Economic Background: China is striving to achieve its economic growth target of 5.5% this year. However, strict lockdown measures in places like Shanghai have disrupted supply chains, severely impacting manufacturing and consumer activities. Economic data from China in April was generally below expectations.

Important event: In late May, Shanghai and other places gradually lifted lockdown measures, and the manufacturing industry began to recover. However, the uncertainty of epidemic prevention and control policies remains a major risk to the economy.

Market reaction: After the release of the manufacturing PMI data, the RMB exchange rate against the US dollar fell slightly. Investors are concerned about the ongoing drag of the pandemic on the economy.

Expert Opinion: Zhao Wei, Chief Economist of CICC, believes that the economic data for May reflects the severe impact of the pandemic on the economy. He expects that the year-on-year GDP growth in the second quarter will be below 4.8%. Chen Xi, Head of Asian Economic Research at Nomura Securities, stated that with the relaxation of pandemic prevention policies, the economy is expected to stabilize and rebound in June.

Overall, the global economy is facing severe challenges such as high inflation, supply chain disruptions, and geopolitical conflicts. Governments and central banks are striving to find a balance, aiming to curb inflation while avoiding a hard landing for the economy. Concerns among investors regarding the economic outlook are intensifying, and market volatility may persist.

5. Regulation & Policy

) 1. Hong Kong promotes digital asset tokenization to build a global innovation center.

The Hong Kong Special Administrative Region government is vigorously promoting the development of the digital asset sector. The Secretary for Financial Services and the Treasury, Christopher Hui, stated that Hong Kong will promote the tokenization of assets and financial instruments to foster innovation in digital assets.

The government has issued the "Hong Kong Digital Asset Development Policy Declaration 2.0", aiming to establish Hong Kong as a global innovation center for digital assets. Hong Kong has built a regulatory framework that balances risk management, investor protection, and industry development, including the implementation of the "Stablecoin Regulation" and a licensing system for digital asset trading platforms.

The government plans to regularize the issuance of tokenized government bonds and promote the tokenization of assets such as precious metals, non-ferrous metals, and renewable energy to enhance the liquidity and efficiency of the financial market. The Hong Kong Stock Exchange has launched the first digital asset indices in Hong Kong, providing investors with transparent and reliable benchmarks for Bitcoin and Ethereum prices.

The chairman of the Hong Kong Financial Technology Association, Chen Shouxin, believes that Hong Kong's regulatory framework provides a good environment for the development of digital assets. Tokenization helps to increase asset liquidity, reduce transaction costs, and bring more opportunities for investors. He anticipates that more assets and financial instruments will be tokenized in the future.

2. The U.S. SEC Consults with the Industry on Cryptocurrency Regulatory Framework

The U.S. Securities and Exchange Commission ### SEC ( recently held a meeting with the Securities Industry and Financial Markets Association ) SIFMA ( to discuss the regulatory framework for cryptocurrencies. Key points included expanding existing securities regulations, clarifying the distinction between securities and digital commodities, limiting retail investors' access to risky products, ensuring transparent competition, and preparing for the integration of traditional finance and decentralized finance ) DeFi (.

Valerie Szczepanik, head of the SEC's cryptocurrency task force, stated that regulators need to work closely with the industry to develop a practical regulatory framework. She emphasized that the goal of regulation is to protect investors' interests while allowing space for innovation.

SIFMA Executive Vice President Lindsey Keljo believes that regulations should clearly define the classification standards for digital assets and establish corresponding rules for different types. She calls for the SEC to maintain open communication with the industry to ensure the rationality of regulatory measures.

Mathew McDermott, head of digital assets at Goldman Sachs, pointed out that the regulatory framework needs to consider the global nature of cryptocurrencies to avoid regulatory arbitrage. He suggested that the SEC strengthen cooperation with regulatory agencies in other countries to achieve regulatory consistency.

) 3. The EU launches the world's first regulatory framework for crypto assets, MiCA.

The Council of the European Union and the European Parliament have recently reached an agreement on the regulatory framework for crypto asset markets MiCA###Markets in Crypto-Assets(, which is the world's first comprehensive regulatory framework for crypto assets.

MiCA stipulates that all crypto asset issuers and service providers operating in the EU must obtain authorization from regulatory authorities and comply with strict operational, capital, and investor protection rules. Stablecoin issuers are required to hold 30% cash and 70% high-rated sovereign bonds as reserve assets.

This framework aims to create a fair competitive environment for the cryptocurrency market, enhance transparency, and protect investors' rights. At the same time, it also allows room for innovation, permitting certain cryptocurrencies to be exempt from specific rules.

Valdis Dombrovskis, Vice-President of the European Commission, stated that MiCA will make the EU a pioneer in global cryptocurrency asset regulation. It will provide appropriate protection for investors while supporting innovation and fair competition.

However, some industry insiders are concerned that excessive regulation could stifle innovation. Sandra Roelofs, head of digital assets at Deutsche Bank, believes that some provisions of MiCA are too strict and may hinder the development of the crypto asset industry in Europe.