7.31 AI Daily Fed maintains Interest Rate unchanged, encryption regulation accelerates.

1. Headlines

1. The Federal Reserve keeps interest rates unchanged, Powell sends a mixed signal of hawkish and dovish.

The Federal Reserve decided to maintain the target range for the federal funds rate at 5.25%-5.5% during the July interest rate decision meeting. Powell stated at the press conference that inflationary pressures have eased but remain at excessively high levels, and future policy direction will depend on data. This dovish yet hawkish statement has led to market divisions over a rate cut in September, reflecting the difficult situation faced by the Federal Reserve in its decision-making.

Powell emphasized that despite the economic slowdown, the job market remains tight, and wage inflation pressures have not eased. At the same time, he believes there are some positive signs regarding inflation, but the rate of price increases is still well above the 2% target. Future interest rate hikes will be adjusted in a timely manner based on economic data, ensuring that they are neither too aggressive to cause a hard landing for the economy nor too loose to allow inflation to spiral out of control.

Analysts point out that the Federal Reserve is in a dilemma. On one hand, continuous interest rate hikes may push the economy into recession; on the other hand, if it turns to easing too early, inflation may rise again. Powell's speech reflects that the Fed is seeking a balance, aiming to curb inflation while avoiding a hard landing for the economy. However, this balance is difficult to grasp, and there remains significant uncertainty in future monetary policy.

2. The regulatory guidelines for stablecoins in Hong Kong have been released, and state-owned enterprises are rushing to apply for licenses.

The Hong Kong Monetary Authority has announced the implementation details of the "Stablecoin Regulation," providing a compliance pathway for stablecoin projects operating in Hong Kong. The new regulations impose strict requirements, focusing on core regulatory aspects such as high liquidity reserves, rapid redemption, local entities, and capital requirements. The Monetary Authority will issue temporary licenses, but companies must submit formal license applications within 90 days.

Sources revealed that over 50 companies or institutions have flocked to the Monetary Authority in recent times, including large institutions such as energy state-owned enterprises and Citic Group. They hurriedly traveled south to meet with the regulatory team to discuss the application for a stablecoin license. Industry insiders analyze that stablecoins are seen as a key infrastructure for cross-border payments and digital finance, attracting many institutions to enter the layout.

Hong Kong's regulatory framework aims to establish the city as a regulated cryptocurrency hub while safeguarding investor rights and financial stability. However, the stringent requirements of the new regulations may intensify industry reshuffling, allowing only well-capitalized institutions to successfully obtain licenses. For ordinary investors, the introduction of regulation is beneficial in reducing risks, but it may also compress profit margins.

3. The Ethereum ecosystem is陷信任危机, and Vitalik faces a tough test.

Ethereum is undergoing an unprecedented wave of skepticism. Since the launch of the ETF, it has been net sold, with capital outflows exceeding $1.2 billion. From Ethereum's core researchers, the EF, to the developer community organizations, and to Consensys-related business companies and external investors, a huge crisis of trust is emerging.

Vitalik needs to better guide different participants in terms of direction and goals, as Ethereum has already become a very large decentralized business entity in the entire crypto market and even in the traditional market. Never before has such a business entity existed in history, and the challenges for the entire Ethereum community and Vitalik will continue to grow increasingly severe, even reaching a point of no breaking no standing.

Analysts believe that the Ethereum ecosystem is facing unprecedented challenges. On one hand, Ethereum, as the cornerstone of cryptocurrency, has its development status directly related to the direction of the entire industry; on the other hand, Ethereum itself is also facing multiple dilemmas such as technical roadmap, governance structure, and business model, and needs to achieve sustainable development while maintaining decentralization.

Vitalik needs to make the right choice in this trust crisis, reshape the development vision of Ethereum, and rebuild the community's confidence. This not only concerns Ethereum itself but will also have a profound impact on the entire cryptocurrency ecosystem.

4. ChatGPT launches Study mode, injecting new momentum into the education sector.

OpenAI announced the launch of the ChatGPT Study mode, providing four methods for the education sector: interactive prompts, scaffolded responses, personalized education, and knowledge point checks. This mode can deeply interpret the problem-solving ideas and processes of each difficult question, rather than just providing the answer.

ChatGPT Study is equivalent to a 24/7 online tutor that can provide personalized guidance and feedback based on the student's learning progress and needs. It not only helps students understand complex concepts but also fosters critical thinking and independent learning skills. OpenAI also offers a Study learning mode in the free version of ChatGPT.

Analysts believe that the ChatGPT Study mode has injected new vitality into the education sector. On one hand, it addresses the shortcomings of uneven distribution of traditional educational resources, providing quality teaching resources for a wide range of students; on the other hand, the personalized learning model helps to improve teaching efficiency and stimulate students' interest in learning.

However, there are also views that excessive reliance on AI-assisted learning may affect the cultivation of students' independent thinking abilities. Education should be heuristic, rather than simply outputting answers. Therefore, ChatGPT Study is more of an auxiliary tool rather than a replacement for the role of teachers. In the future, how AI will combine with traditional education still requires joint exploration by educators and AI developers.

5. Founder: The flashier the slides, the weaker the product.

The founder expressed his views at the TOKEN2049 conference, stating that the flashier the slides, the weaker the product tends to be, and suggested spending time on the product itself. As an investor, everything he needs to see can be expressed through text bullet points and bar charts.

His remarks have sparked heated discussions in the industry. Some people believe that his views are straightforward and hit the crux of the current problems in the cryptocurrency industry. Too many project teams are overly focused on packaging and neglect the actual value of the product itself. Others believe that a good presentation format helps in spreading ideas and is not necessarily equivalent to the quality of the product.

Analysts point out that the statements reflect the basic requirements for project teams, which is to focus on the product itself rather than marketing packaging. As the world's largest cryptocurrency exchange, Gate's position has a significant impact on industry development. If more investors and exchanges follow Gate's approach, it may force project teams to return to the product itself in the future, truly creating value for users.

However, there are also viewpoints that believe overly simplistic presentation forms may affect the project's dissemination effect. In the information age, good packaging is equally crucial. The key lies in the balance between the product and the packaging, which should possess intrinsic value as well as good external form.

2. Industry News

1. Bitcoin faces short-term pressure, but the long-term bullish trend remains unchanged.

Bitcoin ( BTC ) faced short-term pressure and fell back on July 31, once dropping below the $116,000 mark. The main reason was that Federal Reserve Chairman Powell downplayed the expectations for a rate cut in September during his latest speech, raising market concerns about an extended rate hike cycle. However, Bitcoin quickly stabilized above $117,000, indicating that bullish buying support remains strong.

Analysts believe that although Powell's remarks have temporarily suppressed Bitcoin, the long-term bullish logic remains unaffected. On one hand, U.S. inflation data has shown signs of decline, and the pace of interest rate hikes may slow down; on the other hand, institutional investors continue to increase their holdings, laying the foundation for the long-term price increase of Bitcoin. On-chain data shows that in the past week, the net inflow of Bitcoin spot has increased significantly by 135%, and the long-short ratio has reached 0.77, with buyers dominating the market.

Trader Rekt Capital pointed out that Bitcoin is currently in a critical resistance zone. If it can break through the previous high of $120,000, the next target may look towards the range of $130,000 to $144,000. However, if it fails to hold the support at $117,000, it could further drop to around $112,000. Overall, Bitcoin faces some volatility pressure in the short term, but the long-term bullish trend will continue.

2. The pace of Ethereum's recovery is accelerating, and on-chain activity continues to rise.

Ethereum ( ETH ) performed well on July 31, briefly breaking through the $3,800 mark during the day. Analysts believe that the pace of Ethereum's recovery is accelerating, with increasing on-chain activity being the main driver.

Data shows that the total value locked (TVL) on the Ethereum chain has surpassed 22 billion USD, more than doubling from its low point at the beginning of the year, with ( TVL ). Among this, the DeFi ecosystem accounts for over 60% of the TVL, becoming the largest contributing force. In addition, the transaction volume and active addresses on the Ethereum network are also continuously rising, reflecting an increasing level of on-chain activity.

Analysts say that the rise of Ethereum is mainly due to its leading position in the DeFi and NFT sectors, as well as the anticipation surrounding the upcoming Shapella upgrade. Shapella will introduce a new EVM object format, which is expected to further enhance Ethereum's scalability and security.

However, some analysts remind that the competitive pressure facing Ethereum is increasing. Some emerging public chains like Aptos and Sui have shown impressive performance and innovation, which may divert some traffic and funds in the future. Overall, Ethereum still has room for growth in the short term, but its long-term development prospects need time to be tested.

3. The Solana ecosystem is active, with on-chain transaction volumes reaching new highs.

The Solana ecosystem was active on July 31, with on-chain transaction volume reaching a historical high. Data shows that the Solana ecosystem's 24-hour transaction volume exceeded $10 billion, more than twice that of Ethereum.

The main reason for the surge in Solana's trading volume is the significant increase in activity of the Solana decentralized exchanges Orca and Serum Markets. Among them, Orca's daily trading volume exceeds $6 billion, accounting for more than half of Solana's total trading volume.

Analysts indicate that the rise in Solana's ecosystem activity is mainly due to its high performance and low transaction fees. Compared to established public chains like Ethereum, Solana offers faster transaction speeds and lower costs, attracting a significant influx of capital. In addition, the emergence of a number of excellent DeFi, NFT, and GameFi projects within the Solana ecosystem is also an important factor driving trading activity.

However, some analysts have raised doubts about the reliability and security of Solana. This year, Solana has experienced several large-scale outages, affecting user experience. Whether Solana can continue to develop in the future still needs further verification.

4. XRP's momentum slows, the SEC case progress becomes a key variable.

XRP's upward momentum slowed on July 31, primarily affected by the progress of the SEC lawsuit. On that day, the SEC and Ripple postponed the vote again on whether to appeal the district court's ruling.

Analysts say that the outcome of the SEC case will directly determine the future development prospects of XRP. If Ripple wins, XRP will gain compliance recognition and is expected to gain wider acceptance among institutional investors; conversely, XRP will face the risk of being marginalized.

However, despite the uncertainties surrounding the case, XRP has maintained strong upward momentum. Data shows that XRP accumulated an increase of over 50% in July, and trading volume also saw a significant rebound. Analysts believe this is mainly due to the continuous development of XRP ecosystem projects such as XRPL Labs, as well as optimistic expectations for the application prospects of XRP in the field of cross-border payments.

In the future, the progress of the SEC case will continue to dominate the trend of XRP. If favorable developments occur for Ripple, XRP is expected to break through the existing high; conversely, it may face pressure and fall back. Investors need to closely monitor the dynamics of the case.

5. The DeFi sector is active, Ethena(ENA) leads the increase.

On July 31, the DeFi sector performed actively, with Ethena(ENA) leading the gains. Data shows that ENA surged over 8% at one point, reaching a high of $0.85.

The main reason for the increase in ENA is the continuous improvement of its on-chain indicators. Data shows that the total locked value of the Ethena platform is ( TVL ), which saw a significant increase of 50% in July, surpassing 8.4 billion USD. At the same time, the platform's revenue also doubled.

Analysts indicate that the active ecosystem of Ethena is primarily attributed to its innovations in synthetic asset issuance. Ethena allows users to issue any synthetic assets by using cryptocurrency as collateral, greatly expanding the application scenarios of DeFi. In addition, Ethena has also launched various new products such as futures and options, catering to the diversified investment needs of users.

However, some analysts have questioned the valuation level of Ethena. Currently, Ethena's market cap has exceeded $1 billion, which may have a certain premium compared to its ecosystem scale. Whether Ethena can continue to maintain high growth in the future remains to be further observed.

Overall, the DeFi ecosystem remains a significant highlight of the cryptocurrency market. With the launch of more innovative applications, DeFi is expected to further unlock its potential.

3. Project News

1. Movement has become a highly anticipated new star in the Move ecosystem.

Movement is the only project in the Move ecosystem that has not yet issued tokens, attracting widespread attention. As an emerging public chain built on the Move language, Movement aims to provide high-performance and scalable blockchain infrastructure.

The Movement project was born in 2022, initiated by an experienced development team, dedicated to creating a secure and efficient blockchain network. The project employs an innovative consensus mechanism and sharding technology, with the potential to achieve processing capabilities of tens of thousands of transactions per second. Meanwhile, Movement also integrates privacy protection technologies such as zero-knowledge proofs to provide users with higher data privacy.

With the continuous development of the Move ecosystem, Movement is seen as a highly promising new star project. Industry insiders believe that Movement is expected to become an important force within the Move ecosystem, injecting new vitality into the ecosystem. Some analysts predict that the token issuance of Movement will trigger a reallocation of funds within the Move ecosystem, further promoting the prosperity of the ecosystem.

However, there are also opinions that Movement faces a fierce competitive environment. As a latecomer, it needs to demonstrate unique advantages in performance, security, and ecosystem development in order to secure a place in the Move ecosystem. Overall, the development of Movement is receiving significant attention from the industry, and its future performance is worth continuous monitoring.

2. The market value of the AI token BNKR on the Sui chain has exceeded 85 million USD, reaching a historic high.

On July 31, according to GMGN data, the AI token BankrCoin( (BNKR) on the Sui chain has a market capitalization exceeding 85 million USD, setting a new historical high. Within 24 hours, BNKR surged by 41.3%, demonstrating extremely high popularity and investment enthusiasm.

BNKR is the first token in the Sui ecosystem aimed at AI applications, issued by the AI project Bankr within the Sui ecosystem. Bankr is committed to organically combining artificial intelligence technology with blockchain to provide users with intelligent DeFi services. The BNKR token, as the core token of the Bankr ecosystem, can be used to pay transaction fees, participate in governance, and more.

The surge of BNKR tokens is mainly due to the rapid development of the Bankr project recently. The Bankr team has launched a new AI-based intelligent portfolio management tool, which has garnered widespread attention in the market. At the same time, Bankr has also partnered with multiple institutions to apply AI technology in more scenarios.

Analysts believe that the surge in the price of the BNKR token reflects the market's optimistic expectations for the prospects of AI + blockchain applications. As artificial intelligence technology continues to permeate the cryptocurrency space, AI tokens are expected to become the next investment hotspot. However, there are also opinions that the rapid increase in the price of BNKR is too swift, and investors should approach it with caution.

Overall, the performance of the BNKR token reflects the development potential of the Sui ecosystem in the AI track. In the future, more innovative AI applications may emerge within the Sui ecosystem, leading the new trends in industry development.

) 3. Ozak AI Token Pre-sale is Booming, the Integration of Artificial Intelligence and Blockchain is Attracting Industry Attention

Recently, the presale event of the Ozak AI token has attracted widespread attention in the industry. As an innovative project that combines artificial intelligence with blockchain technology, Ozak AI drew a large number of investors to participate in the first phase of the presale.

The Ozak AI project aims to build a decentralized application ecosystem based on artificial intelligence. This ecosystem will utilize AI technology to provide users with intelligent DeFi services, predictive analytics, and other functions to enhance user experience. At the same time, Ozak AI will also launch an AI-assisted smart trading tool to help users optimize their trading strategies.

Ozak AI token, as the core token of the ecosystem, can not only be used to pay transaction fees but also participate in ecological governance. The project team has carefully designed the token issuance and distribution mechanism to ensure the long-term value of the token.

Industry insiders believe that the popularity of the Ozak AI token pre-sale reflects the market's eager expectation for the prospects of AI + blockchain applications. Artificial intelligence technology is expected to bring a whole new experience to areas such as cryptocurrency trading and investment analysis. At the same time, blockchain technology can also provide decentralized and highly trustworthy infrastructure for AI applications.

However, some analysts have pointed out that AI + blockchain is still in the early stages of development, and projects like Ozak AI face technical challenges and regulatory uncertainties. Investors need to pay attention to the actual implementation of the projects. Overall, the Ozak AI token presale has brought new development opportunities to the industry and is worth continued tracking.

4. Arrum Timeboost system generated nearly 3 million dollars in costs within three months.

Arrum is a highly regarded Layer 2 scaling solution in the Ethereum ecosystem. The latest data shows that Arrum's Timeboost system has generated nearly $3 million in fee revenue since its launch, significantly enhancing the revenue level of Arrum DAO.

The Timeboost system allows users to gain priority access to transaction processing by paying an additional fee. This mechanism aims to address the maximum extractable value ### MEV ( issue during blockchain network congestion, while also bringing substantial profits to Arrum DAO.

Analysts believe that the successful operation of the Timeboost system proves Arrum's innovative capabilities in improving network throughput and addressing MEV issues. As one of the leading Layer 2 scaling solutions in the Ethereum ecosystem, Arrum is making significant contributions to the development of the entire ecosystem.

At the same time, there are views pointing out that the Timeboost system has certain fairness issues. Users who pay higher fees can gain priority, which somewhat contradicts the original intention of blockchain decentralization. In the future, Arrum needs to seek a balance between improving efficiency and ensuring fairness.

Overall, the performance of the Arrum Timeboost system has garnered widespread attention in the industry. As an important part of the Ethereum ecosystem development, Arrum's innovative practices will provide valuable references for the development of the entire industry.

) 5. The Hong Kong Monetary Authority has issued regulatory guidelines for stablecoins, requiring issuers to strengthen VPN risk management.

On July 31, the Hong Kong Monetary Authority released the "Regulatory Guidelines for Licensed Stablecoin Issuers", which clearly stipulates the compliance requirements for stablecoin issuers. Among them, the guidelines particularly emphasize that issuers need to strengthen risk management related to the use of VPNs.

According to the guidelines, licensed stablecoin issuers should implement effective measures to prevent customers from disguising their real location through Virtual Private Network ###VPN( during identity verification and daily operations. Specific measures include reviewing network protocols, device configurations, and comparing the server addresses of VPN service providers, among others, to enhance the detection and management of VPN usage.

Industry insiders believe that this move aims to strengthen anti-money laundering and counter-terrorism financing regulations for stablecoin issuers, maintaining the reputation and robustness of Hong Kong as a financial center. As the application of stablecoins continues to expand globally, enhancing regulation to ensure compliance has become a top priority.

However, some viewpoints indicate that excessively strict regulations may affect the innovation capabilities of stablecoin issuers. Finding a balance between risk prevention and innovative development will be an issue that regulatory agencies need to weigh.

Overall, the Hong Kong Monetary Authority's regulatory guidelines set clear compliance standards for stablecoin issuers, which helps maintain the robust operation of Hong Kong as a financial center. In the future, as regulatory policies continue to improve, the development prospects of stablecoins in Hong Kong are worth looking forward to.

IV. Economic Dynamics

) 1. The Federal Reserve stays put, Powell releases mixed signals of hawkish and dovish.

On July 31, signs of a slowdown in the U.S. economy have become increasingly evident, yet the inflation rate remains above the target. Against this backdrop, the Federal Reserve has kept interest rates unchanged as expected, maintaining the target range for the benchmark rate at 4.25% - 4.5%.

Important Event: The Federal Reserve's decision from this meeting has attracted market attention. The decision shows that despite a slowdown in economic growth, inflationary pressures persist, and the job market remains robust. Two board members cast dissenting votes, arguing that the current policy is too tight. Chairman Powell stated at the press conference that inflation is further from the target than employment, implying a need to maintain patience. However, he also emphasized that future policy will depend on data, and no decision has yet been made regarding the September meeting.

Market reaction: Powell's wording has cooled market expectations for a rate cut in September. The dollar index rose slightly, while gold prices fell. Investors generally believe that the Federal Reserve remains inclined to maintain a hawkish stance until inflation further slows. However, some analysts argue that Powell's cautious remarks leave open the possibility of a rate cut in September.

Expert analysis: Goldman Sachs analysts stated that the Federal Reserve's decision met expectations, but Powell's wording showed internal divisions. They expect that if the job market continues to weaken, the Federal Reserve will initiate a modest rate cut cycle in September. Citigroup, on the other hand, believes that Powell's remarks were more hawkish than expected, and the Federal Reserve may need more time to assess the economic outlook.

2. The White House releases a report on digital assets, calling for the U.S. to lead cryptocurrency regulation.

On July 31, the White House released the long-awaited digital asset report, outlining a national strategy aimed at positioning the United States as a global leader in the fields of blockchain, cryptocurrency markets, and tokenized finance.

Important event: This 166-page report stems from President Trump's executive order signed in January. The report covers a wide range of digital asset policy areas, including taxation, banking, stablecoins, and decentralized finance. It states that U.S. taxpayers are required to report any overseas crypto assets exceeding $10,000.

Market Reaction: The cryptocurrency market has responded lukewarmly to this report. Bitcoin and other major cryptocurrencies did not show significant fluctuations after the report was released. Investors generally believe that the report lacks specific regulatory details and timelines.

Expert Analysis: Goldman Sachs analysts indicate that this report aims to lay the groundwork for the United States to dominate the digital asset space. However, they point out that most of the content in the report reflects known regulatory directions and lacks substantive new information. A professor from the University of Texas believes that the report demonstrates the U.S. government's determination to regulate cryptocurrencies, but the specific implementation details remain to be clarified.

3. The Chinese and American heads of state had a conversation, calling for strengthened economic and trade consultations.

On July 31, the leaders of China and the United States had an in-depth exchange of views on China-U.S. economic and trade issues via telephone. Both sides expressed their commitment to implementing the important consensus reached by the two heads of state, strengthening dialogue and consultation, managing differences, and injecting more positive energy into the bilateral relationship.

Economic Background: The trade friction between China and the United States continues to escalate, with both sides having imposed tariffs on hundreds of billions of dollars' worth of imported goods. This has intensified the downward pressure on the global economy and has also brought adverse effects to the economic development of both countries. China's GDP growth rate has reached a 27-year low, and the US manufacturing PMI has been in the contraction zone for nine consecutive months.

Important Event: The recent phone call between the Chinese and U.S. leaders is seen as a positive signal to ease tensions. Both sides agreed to maintain communication and called for strengthening the role of economic and trade consultation mechanisms to enhance consensus and reduce differences.

Market reaction: The call between the Chinese and American heads of state boosted market confidence. The three major U.S. stock indices rose slightly, and the RMB against the U.S. dollar increased slightly. However, investors remain cautious about whether the two sides can reach a substantive agreement on key differences.

Expert analysis: The Chongyang Institute for Financial Studies at Renmin University of China believes that substantial progress in China-U.S. economic and trade consultations is key to alleviating global economic downturn pressure. They call on both sides to make concessions on major concerns based on the principles of mutual respect and equality and mutual benefit. The Peterson Institute for International Economics warns that an escalation of the trade war will exacerbate the global economic slowdown, harming both countries' businesses and consumers.

5. Regulation & Policy

1. The White House has released a comprehensive report on cryptocurrency policy, promoting regulatory modernization.

The White House in the United States released a 166-page cryptocurrency policy report on July 31, aimed at establishing the U.S. as a global leader in blockchain, cryptocurrency markets, and tokenized finance. The report was drafted by an interagency working group established by President Trump in January, incorporating views from the Department of the Treasury, the Department of Commerce, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.

The report proposes several recommendations, including promoting regulatory clarity, correcting the "cutting off banking services" policy, opposing excessive regulation, and pushing for tax reforms. Among them, the report calls on Congress and regulatory agencies to formulate a technology-neutral regulatory framework for digital assets with clear delineation of powers, supporting legitimate innovation; criticizes the Biden administration's "Operation Choke Point 2.0" for suppressing legitimate crypto businesses, advocating for fair banking services for legitimate digital asset enterprises; encourages a financial innovation environment, ending the model of "enforcement replacing regulation"; and suggests that the Treasury and Congress update digital asset tax guidelines and legislation concerning staking, mining, token lending, asset classification, and other aspects.

The report argues that if the above policies are implemented, the United States will establish a leadership position in global digital asset innovation and the reshaping of the financial system. The report has garnered support from the cryptocurrency industry and some lawmakers, but it has also sparked controversies over conflicts of interest and investor protection.

2. The Hong Kong Monetary Authority has released regulatory guidelines for stablecoins, which will officially take effect on August 1.

With the "Stablecoin Regulation" set to officially take effect on August 1, 2025, the Hong Kong Monetary Authority simultaneously released a series of supporting regulatory documents on July 29, including the "Guidelines for Regulating Licensed Stablecoin Issuers" and the "Guidelines for Combating Money Laundering and Terrorist Financing", establishing a comprehensive framework covering asset compliance, risk management, and consumer protection.

This set of guidelines not only provides a clear application pathway and compliance standards for the stablecoin market but also demonstrates Hong Kong's commitment to leaving room for policy development for stablecoin innovation while strengthening risk prevention. Among them, the "Regulatory Guidelines for Licensed Stablecoin Issuers" require issuers to "ensure that they do not issue or offer stablecoins in jurisdictions where trading such stablecoins is prohibited" and to "implement control measures to mitigate the risks of location masking during remote customer identity verification procedures, as well as during normal operations, such as using virtual private networks, i.e., VPN###."

The Deputy Secretary for Justice of Hong Kong, Zhang Guojun, stated that the regulation is based on three main pillars: "licensing system," "asset savings management," and "technology and conduct supervision," aiming to enable the orderly and healthy development of the Hong Kong stablecoin market with a clear and transparent legal mechanism, thereby maintaining confidence in Hong Kong as a leading global financial center.

( 3. South Korea's financial regulatory agency has established a regulatory working group for cryptocurrency lending.

On July 31, the Financial Commission and the Financial Supervisory Service of South Korea, together with the Digital Asset Exchange Association and five major cryptocurrency exchanges, jointly established a "Virtual Asset Lending Service" working group and held its first meeting, planning to formulate relevant regulatory guidelines.

This guide will reference overseas and local regulatory experiences and is expected to cover topics such as leverage ratios, target clients, the range of borrowable assets, user education, and risk warnings, while also examining the internal control standards of trading platforms and high-risk services. The relevant guidelines are expected to be published next month and will be included in the second phase of the virtual asset legislative process.

Financial regulatory authorities also require exchanges to reassess high-risk services. The working group will integrate overseas regulations, stock market regulations, and characteristics of the Korean market to establish a basic regulatory system aimed at strengthening the supervision of crypto lending activities.

) 4. Simplified Application Process for Cryptocurrency ETF Listing on U.S. Stock Exchanges

The Chicago Board Options Exchange ### CBOE ### and NYSE Arca ( submitted a rule change application to the U.S. Securities and Exchange Commission on July 31, proposing to allow cryptocurrency fund issuers to list products under a unified framework without the need to apply for approval for each new cryptocurrency ETF individually.

Currently, exchanges are required to submit forms for each new crypto ETF and undergo a lengthy review process. If the new regulations are approved, it will further accelerate the launch of crypto ETF products. Analysts indicate that there are currently about a dozen eligible crypto assets, which aligns with the mainstream cryptocurrencies that have a probability of being approved exceeding 85%. Regarding the specific approval timeline, analysts expect it could be in September or October of this year.

This move marks that the U.S. Securities and Exchange Commission is pushing for the inclusion of crypto assets into the mainstream financial system, providing institutional investors with more investment channels. Industry professionals believe that this initiative will further promote the maturation and standardization of the crypto market.