8.1 AI Daily New Trends in Cryptocurrency Regulation: The United States, Europe and Asia Reshape the Industry Landscape I. Headline 1. The Ethereum Foundation released the "Lean Plan" to outline the vision for the next ten yearsThe Ethereum Foundation released the "Lean Plan" on the occasion of Ethereum's 10th anniversary, outlining the development blueprint for the next ten years. The initiative aims to improve network performance, decentralization, and security across the board, with core goals including quantum attack resistance, 100% network uptime guarantees, and transaction processing capabilities of 10K TPS and 1 million TPS through Layer 1 and Layer 2 solutions, respectively. The plan will promote the upgrade of Ethereum in three sub-layers: the consensus layer, the data layer, and the execution layer. The consensus layer will introduce a dual-track strategy of "Fortress Mode", which focuses on security and decentralization, and "Beast Mode", which pursues extreme performance. The data layer will explore new data sharding and encoding schemes to improve data availability. The execution layer will use next-generation cryptography and zero-knowledge proof technology to achieve a high level of security and privacy protection. Industry insiders believe that the "Lean Plan" demonstrates the Ethereum Foundation's foresight for the long-term development of the network. The program not only sets a grand vision for Ethereum, but also sets a new benchmark for performance and security across the cryptocurrency ecosystem. With the gradual implementation of the plan, Ethereum is expected to become the "cornerstone of the Internet of Value" in the true sense. 2. Hong Kong's Stablecoin Ordinance came into effect, ushering in a new era of regulationThe Hong Kong SAR government has taken a key step in the field of digital asset regulation, and the Stablecoin Ordinance came into effect on August 1. This marks a new stage in the development of stablecoins in Hong Kong. Under the new regulations, any institution wishing to issue stablecoins in Hong Kong must apply for a licence from the HKMA and comply with strict prudential regulatory requirements. This includes proper management of reserve assets, maintenance of sound stability mechanisms, compliance with anti-money laundering regulations, and annual audits. The HKMA will implement comprehensive supervision of stablecoin issuers in accordance with the risk-based principle. According to a source from the Hong Kong Monetary Authority, the new regulations aim to promote the orderly development of stablecoins in Hong Kong, while ensuring that investors are properly protected. Industry insiders generally believe that the Stablecoin Ordinance marks Hong Kong's official entry into the era of digital asset regulation, which will create a favorable environment for the development of stablecoins. However, there are also views that overly restrictive regulation may inhibit innovation and weaken Hong Kong's attractiveness as a fintech hub. Therefore, while implementing regulation, the government also needs to balance innovation and risk to create conditions for the healthy development of the industry. 3. Cryptocurrency exchange hacked, losing up to $42 million Cryptocurrency exchange GMX was hacked in July, resulting in the theft of about $42 million worth of crypto assets. This incident has once again sparked widespread concern and discussion in the industry about the security of exchanges. It is understood that hackers exploited a vulnerability to bypass GMX's risk control system and sell and short GMX tokens in a large amount of time in a very short period of time, causing the token price to plummet. In the process, the hackers made more than $42 million in profits. GMX has suspended trading and activated an emergency response, but the losses have already been done. Industry insiders pointed out that the attack highlighted the shortcomings of the decentralized finance (DeFi) protocol in terms of security. Due to the open-source and permissionless nature of the code, DeFi protocols are more vulnerable to hacking and manipulation. At the same time, exchanges, as central hubs for funds, are often targeted by hackers. Experts suggest that measures such as strengthening smart contract audits, optimizing risk control mechanisms, and improving transparency may fundamentally improve DeFi security. But in the long run, the industry as a whole still needs to find a balance between decentralization and security, which will be a long process. 4. SEC Chairman: Will Develop Framework to Regulate Crypto Securities (SEC) (Gary Gensler) the SEC revealed in a speech that the SEC is developing a framework to regulate crypto assets that are considered securities. This move aims to create an orderly regulatory environment for crypto securities. According to Gensler, the SEC has instructed staff to draft guidelines to clarify which cryptoassets fall under the category of securities. At the same time, the SEC will also impose disclosure requirements and exemptions for crypto assets that are identified as securities. Gensler emphasized that the SEC's goal is to create a fair and efficient market environment for crypto securities while protecting investors. He said the SEC will work with companies seeking to issue tokenized securities to ensure they comply with the rules. This news sparked a heated discussion in the industry. Proponents argue that a clear regulatory framework will bring certainty to crypto securities and help attract institutional investors. But there are also concerns that over-regulation could stifle innovation and limit the growth space of the crypto securities market. In any case, Gensler's speech once again highlighted the SEC's determination on the issue of cryptoasset regulation. In the future, the development of the crypto securities market will be largely influenced by the policies of the SEC. 5. The liquidation of major crypto investors sparked panic in the market, and the short-term decline of bitcoin caused a large cryptocurrency address to sell about $180 million worth of XRP in 24 hours, triggering violent market volatility. Mainstream cryptocurrencies such as Bitcoin fell in response, and investor sentiment suddenly weakened. According to on-chain data, the large address sold about 60 million XRP in just a few hours, accounting for 0.4% of XRP circulating at the time. Such a large shipment undoubtedly had a shock to the market, and the price of XRP fell by nearly 10% at one point during the shipment. Bitcoin and other major cryptocurrencies have also been affected by the ripple effect. According to the data, Bitcoin fell nearly 5% during XRP shipments, briefly falling below the $11,500 mark. Analysts believe that this "killing" behavior has exacerbated investor panic and triggered a wave of self-fulfilling selling. However, there is also an opinion that this is just a normal fluctuation in the market. It is true that large shipments will have a short-term impact on prices, but as long as there is no fundamental change in fundamentals, the market is expected to resume its upward trend for some time. Overall, this incident once again confirms the high-risk nature of the cryptocurrency market. Investors need to remain cautious and remain highly vigilant against events that could trigger high volatility. At the same time, learn to distinguish between noise and material positives/negatives to avoid being confused by short-term fluctuations. 2. Industry News1. Bitcoin and Ethereum fell hard, liquidations surged, macro pressure and on-chain changes analysis On the first trading day of August, the cryptocurrency market suffered a large-scale sell-off, and the total market value plummeted by 6.6% to $3.8 trillion in a single day. Bitcoin fell below $116,000, Ethereum fell below $3,700, and mainstream altcoins fell about 5%. More than $629 million in positions were liquidated, and the panic and greed index plummeted. The main reasons for Bitcoin's decline include: sudden changes in Fed interest rate expectations, new tariff shocks, long-dormant wallet movements, and panic selling by short-term holders. Powell insisted that he would continue to dismiss President Trump's call for interest rate cuts, emphasizing his role in stabilizing inflation in the long term. Trump's announcement of changes to the "reciprocal tariff" rates in several countries has sparked market concerns. According to OnchainLens monitoring, 5 Satoshi wallet addresses collected 250 BTC worth $29.64 million to 2 new addresses, which immediately caused panic in the market. Analysts believe that bitcoin may retreat further to the $112,000-$113,000 range in the short term. However, if a triple bottom rebound is formed and the downtrend line is broken, a new round of bullish trading could begin. Investors need to pay close attention to core drivers such as Fed rhetoric and the progress of the crypto bill. 2. Hong Kong's Stablecoin Ordinance comes into effect, and bank brokers scramble to apply for licensesOn August 1, Hong Kong's Stablecoin Ordinance came into effect, detailing the HKMA's regulations on capital, custody, real-name authentication, reserves and governance. Major banks are expected to apply first, but only a small number of licenses will be issued. The application deadline is Sept. 30, and organizations that do not apply may face closure. The focus is on asset tokenization, cross-border payments, and cryptocurrency trading, with warnings about speculative risks. Relevant persons are required to comply with reserve asset management and redemption requirements, including proper segregation of client assets, maintenance of robust stability mechanisms, and the processing of redemption requests of stablecoin holders at par under reasonable conditions. Relevant persons are also required to comply with a series of AML/CFT, risk management, disclosure requirements, and audit and fit and proper requirements. Standard Chartered Bank's Hong Kong Chief Executive Officer, Ms Huen Wai-yee, said the group is exploring possible options and use cases, with the aim of submitting an application as soon as possible. The Group believes that digital assets will play an important role in the financial system in the future. Industry insiders remind that the stablecoin business model is still unclear, and investors need to be wary of conceptual speculation and risks. 3. SEC Chairman: Project Crypto Program Will Promote Full On-Chain U.S. Financial MarketsU.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins said in a document that we are at the beginning of a new era in market history, and the SEC's Project Crypto program will enable U.S. financial markets to be on-chain, and the project will become the North Star of the U.S. Securities and Exchange Commission, helping President Trump make the United States the "cryptocurrency capital of the world". Maintain U.S. dominance in the cryptoasset market. The SEC's priority is to establish a regulatory framework for the distribution of cryptoassets in the U.S. as soon as possible, rather than being tied down with red tape and one-size-fits-all rules. Atkins said it has instructed committee staff to develop guidelines to determine when cryptoassets are securities. Staff has been asked to propose disclosure requirements and exemptions for cryptoassets identified as securities, and staff has been asked to work with companies seeking to issue tokenized securities. The initiative aims to modernize regulation and establish the United States as a cryptocurrency hub. Tim Draper supports the project, envisioning a Bitcoin-centric financial system that leverages blockchain accounting and smart contracts to foster innovation and competition in digital assets. 4. DeFi TVL returned to the pre-collapse highs of UST, and the IMF officially included crypto assets in national accounts, focusing on three core developments: DeFi total value locked (TVL) rebounded strongly to $138 billion, hitting the pre-Terra crash level, led by AAVE and Lido; The IMF has historically revised the National Accounts System, and crypto assets such as Bitcoin have been classified as "non-productive non-financial assets", and El Salvador has become a direct beneficiary; Visa accelerates the deployment of the stablecoin ecosystem, adding multi-chain support such as PYUSD and EURC, and traditional financial giants compete for $256 billion in stablecoin market opportunities. The return of DeFi TVL to a high level reflects the recovery of market confidence in the DeFi ecosystem. The IMF's revision of the System of National Accounts to include crypto assets in the category of "non-production non-financial assets" contributes to the statistics and regulation of cryptocurrencies on a global scale. Visa's multi-chain expansion of stablecoin territory, and the acceleration of the layout of traditional financial giants in the field of digital currency, heralds the further integration of cryptocurrencies and the traditional financial system. Analysts point out that despite the rebound in DeFi TVL, there is still a need to be vigilant against regulatory risks. Although the IMF's revision is a historic development, the specific accounting treatment of crypto assets still needs to be clarified. The intensification of competition in the stablecoin ecosystem may bring new regulatory challenges. Overall, the crypto market is moving towards a more regulated and transparent direction, but it will take time. 5. Altcoin bullish signals? Six on-chain indicators show momentum in the altcoin market, and on-chain analysis firm CryptoQuant pointed out that six key indicators show that the momentum in the altcoin market is increasing, including Ethereum's strong lead, Bitcoin's dominance declining, altcoin futures trading volume surging to a five-month high (83%), most mainstream altcoin futures pairs rising, and the 30-day change in Bitcoin retail demand turning positive - the latter is seen as a signal before the big market for Bitcoin and altcoins. Driven by the continuous development of hot tracks such as DeFi and NFT, Ethereum's price performance is strong, driving the activity of the entire altcoin market to increase. Bitcoin's declining dominance means that money may flow to the altcoin market. Altcoin futures trading volume and opening rates both moved higher, reflecting institutional and retail optimism about altcoins. However, analysts also warn of the risk of high volatility in the altcoin market. Altcoins have had a mixed performance over the past few months, and investors need to be cautious about timing. Overall, altcoin market momentum is indeed accumulating, but it remains to be seen whether it can be translated into a sustained bull market. III. Project News1. ChainOpera AI and EigenLayer officially cooperate to jointly build an on-chain trusted AI agent networkChainOpera AI is a blockchain-based AI agent platform that aims to provide users with trustworthy AI services. Launched in 2023, the platform ensures the verifiability and transparency of AI Agents through smart contracts and a distributed architecture. The latest development is that ChainOpera AI has entered into a partnership with EigenLayer to jointly promote the construction of "Verifiable Runtime Agents". The two parties will use the on-chain audit mechanism to verify the whole process of AI agent inference and execution, and promote the evolution of AI services from "black box" to "trusted collaboration". The collaboration is expected to address the lack of transparency and explainability of AI systems. By recording the AI decision-making process through blockchain technology, users can trace and audit the behavior of AI, improving trust in the AI system. At the same time, the on-chain verification mechanism also provides a guarantee for the fairness and impartiality of the AI system. Analysts believe that the cooperation between ChainOpera AI and EigenLayer is an important step in the integration of AI and blockchain, which is expected to promote the application of AI in finance, medical and other fields. However, it also pointed out that on-chain AI systems still face challenges in terms of performance and privacy protection, and require continuous innovation and optimization. 2. Puffer Announces UniFi AVS Upgrade with Execution Speeds of Sub-10 MillisecondsPuffer is an Ethereum infrastructure protocol designed to improve Ethereum's scalability and performance. Launched in 2022, the protocol uses Rollup technology to enable off-chain computation and on-chain data verification, significantly increasing transaction throughput. In the latest development, Puffer announced an upgrade to its UniFi AVS system, built on EigenLayer and secured by over $13 billion in re-staking ETH. The upgraded UniFi AVS brings sub-second execution speed and economic consistency to Rollups with validator-supported gateways and real-time pre-confirmation. The upgrade is expected to solve the problem of congestion and high fees on the Ethereum network. Sub-second execution speeds mean users get near-instant transaction confirmations, greatly improving the user experience. At the same time, the economic consistency mechanism ensures that the interests of Rollup owners and Ethereum proposers are aligned, promoting the healthy development of the ecosystem. Industry analysts believe that Puffer's upgrade marks significant progress in Ethereum's scaling scheme. With the launch of more rollup protocols, Ethereum is expected to break through the current performance bottleneck and support the deployment of more innovative applications. However, it also pointed out that the security and decentralization of Rollup technology still need to be further verified. 3. The Ethereum Foundation released its vision for the development of "lean Ethereum" in the next decadeEthereum is the world's largest smart contract platform, supporting the operation of a large number of decentralized applications. To chart the long-term direction of Ethereum, Ethereum Foundation researcher Justin Drake has released a vision document for "lean Ethereum". The document lays out Ethereum's development goals for the next decade, including achieving Layer 1 throughput of 10,000 transactions per second, and processing capacity of 1 million transactions per second at Layer 2. At the same time, the document also emphasizes the importance of countering quantum threats through hash-based cryptography. To achieve these goals, Ethereum needs to innovate and optimize in several areas, including improving scalability, enhancing privacy, and reducing energy consumption. The document notes that Ethereum will need to scale aggressively and combine it with a variety of layer-2 scaling options to meet the needs of future large-scale adoption. Industry insiders welcomed this, arguing that the Ethereum Foundation outlines a clear vision for the development of the ecosystem. But there are also analysts who have raised doubts, pointing out that there are significant technical challenges to achieving such a massive scale that requires continuous innovation breakthroughs. In addition, Ethereum also needs to solve problems such as high fees in order to attract more users and developers to join. Overall, the Ethereum Foundation's vision of "lean Ethereum" points the way forward for the ecosystem, but achieving this vision will still require the joint efforts of developers around the world. Economic dynamics1. The U.S. core PCE returned to a high of 2.8% y/y in June, and inflationary pressures returned to the economic background: The U.S. economic recovery slowed, with Q2 GDP growing at an annualized rate of 2.4% q-o-q, lower than expected. However, the job market remained relatively solid, with the unemployment rate remaining low at 3.6% in June. Inflationary pressures eased in the first half of the year, but have shown signs of picking up recently. Important events: The core PCE price index in the United States returned to an annual high of 2.8% in June, higher than expectations and the previous revised value, and the fastest inflation growth since February. Headline PCE and consumer spending data climbed in tandem, highlighting the resurgence of inflationary pressures. Weak labor markets and stagnant real incomes add to the risk of an economic slowdown. Market reaction: Friday's jobs report is expected to further confirm the decline in hiring momentum, adding uncertainty about the policy path. The probability that the Fed will keep interest rates unchanged in September is 58.7%, and the probability of a cumulative 25 basis point rate cut has dropped to 41.3%. U.S. stocks closed lower on Monday amid heightened investor concerns about the economic outlook. Expert view: Goldman Sachs analysts said that the higher-than-expected inflation data could push the Federal Reserve to raise interest rates by 25 basis points in September to prevent inflation from regaining momentum. However, former Fed Governor Bullard believes that if the job market does not deteriorate, the Fed may not cut interest rates in September. Overall, the inflation situation is complex, and there is great uncertainty about the policy path. 2. Trump's new tariff policy has sparked market concerns and the clouds of trade war have resurfacedEconomic background: The pace of global economic recovery has slowed, and the GDP growth rate of major economies has slowed. The trade dispute between China and the United States has eased, but geopolitical tensions have intensified and the international trade environment continues to be volatile. U.S. inflation is high, and the Fed's interest rate hike cycle may be extended. Important Event: U.S. President Donald Trump signed an executive order to adjust reciprocal tariffs in dozens of countries and increase tariffs on Canada from 25% to 35%. The move has sparked fears of a renewed escalation of the trade war. Market reaction: U.S. stocks closed lower on Monday following the announcement of Trump's new tariff policy. Analysts noted that despite the lackluster market reaction, it could mean that investors have prepared their portfolios for trade tensions. Global investors' confidence in the economic outlook has suffered further losses. Expert Opinion: Former Deputy U.S. Trade Representative Wendy Cutler warned that the new tariffs may be just the beginning, with continued uncertainty for trading partners. Goldman Sachs analysts said that if trade tensions continue to escalate, it will further drag on global economic growth. Overall, the resurgence of trade disputes has cast a shadow over the fragile global economic recovery. 3. Hong Kong's stablecoin regulation has been implemented, and the digital asset ecosystem has once again gained significant benefitsEconomic background: Hong Kong's fintech is developing rapidly, and the digital asset ecosystem is becoming more and more mature. The HKSAR Government attaches great importance to the regulation of digital assets to create a conducive environment for the development of the industry. The global digital asset regulatory landscape is taking shape. Important events: Hong Kong's Stablecoin Ordinance came into effect on August 1, marking a new stage of implementation of stablecoins in Hong Kong. The HKMA has opened applications for stablecoin issuance licences. Market reaction: Citibank expects the Hong Kong stablecoin market to reach US$16 billion, which will increase the demand for high-quality liquid assets and promote the development of the local fixed income market. A number of banks and brokers are interested in applying for licenses to seize opportunities in Hong Kong's digital asset market. Expert view: The chief executive of Standard Chartered Bank Hong Kong said that the group is studying the relevant documents and aims to submit the application as soon as possible. The CEO of JPMorgan Chase believes that stablecoins will become the trend of the future, but the regulatory rules need to be clarified. The Hong Kong Monetary Authority (HKMA) emphasises that the new framework is risk-based and aims to strike a balance between innovation and risk management. Industry insiders are generally optimistic about the development prospects of Hong Kong's stablecoins. V. Regulation & Policy 1. SEC Chairman Paul Atkins Announces the Launch of the "Crypto Program" to Modernize Securities RegulationsThe Chairman of the Securities and Exchange Commission (SEC) Paul Atkins officially announced the launch of the "Crypto Program" on July 31, aiming to respond to President Trump's vision of making the United States the global cryptocurrency capital. The committee-wide initiative will modernize securities rules and accelerate the on-chain migration of U.S. financial markets. Policy Background: As the U.S. securities regulator, the SEC's policy direction has a significant impact on the regulatory landscape of crypto assets. The launch of the "Crypto Project" aims to respond to the rapid development of cryptocurrencies and blockchain technology, laying the foundation for its legalization and standardization in the United States. Policy content: The plan includes the development of a clear and simplified regulatory framework for the issuance, custody and trading of cryptoassets. The SEC has directed committee staff to develop guidelines for determining when cryptoassets are securities; proposed disclosure requirements and exemptions for cryptoassets identified as securities; Partnering with companies seeking to issue tokenized securities. This signals that the SEC will reverse the hard-line enforcement policies of the former Chairman Gensler era and attract the return of offshore crypto businesses. Market reaction: The move is seen as a major shift in U.S. crypto regulatory policy and is expected to bring greater certainty to the industry. The cryptocurrency market reacted positively to the news, with mainstream currencies such as Bitcoin rising in the short term. However, some analysts said that the SEC still needs to give clear guidance on the specific implementation details, otherwise it may still bring new regulatory risks. Expert Opinion: Crypto analyst Nic Carter said the "Crypto Initiative" is a major move by the SEC to address crypto regulatory challenges and will bring greater certainty to the industry. But he also noted that the SEC needs to work closely with other regulators to develop a comprehensive regulatory framework. 2. The Hong Kong Monetary Authority issued a regulatory framework for stablecoins, paving the way for a licensing regimeOn August 1, the Hong Kong Monetary Authority officially issued four documents, including the "Regulatory Guidelines for Licensed Stablecoin Issuers", to establish a regulatory framework for stablecoins. This marks the official implementation of Hong Kong's stablecoin issuer licensing regime and lays the foundation for Hong Kong to become a global stablecoin hub. Policy Background: The Hong Kong SAR Government attaches great importance to the development of digital assets and regards stablecoins as a key development area. The introduction of the regulatory framework aims to set uniform standards for stablecoin issuers, regulate market order, and maintain financial stability. Policy content: The Regulatory Guidelines for Licensed Stablecoin Issuers stipulate requirements for capital, reserve management, redemption mechanism, etc. The Anti-Money Laundering and Counter-Terrorist Financing Guideline brings non-custodial wallets under the scope of regulation. The Summary Explanation of the Stablecoin Issuer Licensing Regime clarifies the eligibility and procedures for application. The HKMA will adopt an invitation-only approach to the issuance of licences, with the first batch of approved institutions expected to be announced early next year. Market reaction: Hong Kong's financial sector welcomed the policy. Chinese banks, sandbox testing companies, large state-owned enterprises and internet giants are all interested in applying for licenses. Industry insiders believe that Hong Kong's stablecoin regulatory framework balances innovation and prudence, and will promote Hong Kong to become a global stablecoin hub. Expert's view: Hong Kong financial law experts pointed out that the regulatory framework reflects Hong Kong's regulatory philosophy of "doing and not doing", which not only encourages innovation, but also pays attention to risk management. They believe that Hong Kong's stablecoin regulation will serve as a reference for the rest of the world. 3. Indonesia's cryptocurrency tax policy has been adjusted, the user scale exceeds the stock market, and the Indonesian government has recently updated its cryptocurrency regulatory policy, raising the tax rate for overseas platforms to 1% and the tax rate for domestic platforms to 0.21%, while canceling the buyer's value-added tax, and reclassifying crypto assets as financial assets and bringing them under the supervision of the Financial Services Authority. Policy background: Indonesia is one of the world's largest users of cryptocurrencies, with more than 20 million users. In order to regulate the market order and safeguard the rights and interests of taxation, the Indonesian government has repeatedly issued relevant policies. The adjustment is aimed at encouraging domestic transactions and curbing capital outflows. Policy content: The new policy increases the tax rate for overseas cryptocurrency trading platforms to 1%, while the tax rate for domestic platforms is only 0.21%. At the same time, VAT will be abolished for crypto buyers and crypto assets will be reclassified from commodities to financial assets, which will be regulated by the Financial Services Authority. Market reaction: Industry insiders believe that this move will promote the localization of Indonesia's cryptocurrency ecosystem. However, some analysts have pointed out that the excessively high tax rate of overseas platforms may cause some users to turn to illegal channels for trading. Expert Opinion: Indonesian Ministry of Finance officials say that volatility in the price of crypto assets will still affect future tax performance. They will pay close attention to market changes and adjust policies in a timely manner. Regulators, on the other hand, stressed that the new policy would be conducive to maintaining financial stability.
