The passage of the GENIUS Act marks a new stage in US crypto legislation. The controversy between the Senate and the House over the CLARITY Act also reveals two regulatory philosophies: one focuses on functional definition and universality, while the other focuses on financial embedding and the stablecoin system itself.
Faced with the impact of stablecoins, the banking system has begun to respond, from reconstructing distribution paths, introducing on-chain credit collateral, to outsourcing interest rate generation to tokenized assets, and evolving towards modularization and interface to adapt to the era of on-chain assets participating in liquidity generation.
PayPal chose to bypass banks and directly build a unified interface between digital assets and capital flows. In the future, it may be through PYUSD and PayPal World, packaging clearing, exchange, user portals and merchant networks, trying to establish a crypto-native payment stack without bank intermediaries.
In the high-speed flow of capital, value is shifting from intermediary fees and scarcity to flow rate, combination capabilities and network effects. The new financial order is being reorganized between interfaces.
The total market value of stablecoins reached $265.217 (about $265.2 billion), a weekly increase of $4.502 billion (about $4.5 billion). In terms of market structure, USDT continues to maintain its dominant position, accounting for 61.8%; USDC ranks second, with a market value of $64.807b (about $64.8 billion), accounting for 24.44%.
Blockchain network distribution
The top three stablecoin networks by market value:
Ethereum: $132.37b (US$132.4 billion)
Tron: $81.992b (US$82 billion)
Solana: $11.592b (US$11.6 billion)
TOP3 networks with the fastest weekly growth:
TON: +7.85% (USDT accounts for 79.49%)
Hedera: +6.96% (USDC accounts for 99.86%)
Polygon: +5.60% (USDT accounts for 43.29%)
From distribution to credit creation to financial engineering: stablecoins are penetrating the banking system
With the implementation of the GENIUS Act, stablecoins have begun to continuously penetrate the core architecture of the traditional banking system.
The cooperation between PNC and Coinbase marks that stablecoins have been officially endorsed by traditional financial institutions as a "distribution channel", and customers can buy, sell and custody crypto assets directly on the bank interface. The tokenized money market fund launched by Goldman Sachs and New York Mellon has atomized and migrated the traditional financial core asset pair of "US dollar + Treasury bonds" to the chain. The role of banks is shifting from passive custodians to active native on-chain asset issuers. Stablecoins are rewriting the technical structure of the bank's front end and redefining the entry standard of "programmable dollars".
More structurally significant is that JPMorgan Chase plans to include Bitcoin and Ethereum in the collateral list to issue US dollar loans. This move essentially incorporates on-chain assets into the M2 generation path, allowing crypto assets to participate in the bank's credit creation system. When on-chain assets become the collateral basis for the US dollar, stablecoins are no longer the "digital shadow" of traditional finance, but part of the money creation system.
Anchorage's USDtb model demonstrates sophisticated financial engineering design. USDtb issued by Anchorage does not directly undertake the income commitment, but outsources the interest generation to BlackRock's tokenized money market fund product BUIDL, and then transmits the income to the holders through the custody logic. This architecture cleverly redefines "interest" as the natural attribute of the underlying assets rather than the legal obligation of the stablecoin itself, thereby circumventing the SEC's regulatory definition of "income tokens". In this model, stablecoins essentially become a "income encapsulation interface" that reconstructs functional relationships in institutional gaps.
This series of evolutions shows us a trend that if banks want to embrace stablecoins, they must accept functional decoupling and layered design. The traditional integrated financial system is being disassembled into reconfigurable on-chain modules such as compliance, interest generation, custody and trading.
Stablecoins are forcing the banking system to evolve into a modular and programmable financial infrastructure. A set of financial Lego blocks that can be arbitrarily reorganized is the possible state of future banks.
PayPal launches PayPal World, a global payment interconnection platform, and incorporates stablecoins and AI agent shopping into its strategic map
PayPal announced the launch of PayPal World, a global payment interconnection platform, with the aim of reshaping the cross-border payment network structure and the global business interaction paradigm. As a "payment network aggregator", PayPal World first connected to Mercado Pago, India's UPI, Tenpay Global, the international version of WeChat Pay, as well as its own PayPal and Venmo, covering nearly 2 billion consumers and merchants worldwide. Through unified integration to connect multiple "walled gardens", merchants can access once and reach the world, significantly reducing the technical threshold for payment compatibility; users can also complete cross-border transactions in local payment tools without switching apps.
The key to this product integration is that PayPal has integrated Venmo, which is mainly P2P, with the B2C commercial payment network for the first time, connecting personal and merchant scenarios to form a collaborative closed loop. Through PayPal World, this integration has been further extended to the world, making cross-border remittances as smooth as sending messages, and merchants can also receive funds from any payment ecosystem in real time, realizing the account-to-account (A2A) clearing path.
This evolution relies on the modernization of payment infrastructure driven by cloud computing and API standardization. By deconstructing the high-cost intermediaries (correspondent banks, card organizations, SWIFT, etc.) in the traditional payment chain, PayPal is moving from mesh interoperability to a lower-friction, more programmable A2A architecture. Looking forward, the next stage may be to migrate to the chain to build a more automated, all-weather, low-cost clearing and settlement channel to serve new settlement entities such as AI agents.
From a long-term historical perspective, the value logic of finance is migrating: from an arbitrage mechanism that relies on geographical barriers and physical friction to an efficiency paradigm centered on compressing "funds in transit time". PayPal World is a structural response to this trend. In this new paradigm, stablecoins will become infrastructure. If A2A is the starting point, then stablecoins are the extension of the path, and the ultimate goal is a high-frequency, low-latency, and composable capital network.
PayPal has clearly promoted the stablecoin strategy and AI Agent payment layout, and even actively sacrificed the traditional legal currency float income to encourage users to convert their balances into PYUSD to enhance ecological stickiness and capital liquidity. Its growth model is also evolving from fee-driven and stock income to high-frequency circulation and network dominance.
The significance of PayPal World can be understood as an experiment in "post-frictional capitalism". At this stage, value no longer comes from the possession of scarce resources or intermediary fees, but from the speed of capital flow, combination capabilities and network effects. The traditional payment package (clearing, settlement, exchange, fees) is being deconstructed (Unbundle) and rebuilt (Re-bundle) around digital assets (such as PYUSD) and unified interfaces (such as PayPal World).
US crypto regulation is heading for a fork in the road, with divergent regulatory philosophies behind the CLARITY Clarity Act
With the GENIUS Act establishing a regulatory framework for stablecoins, US crypto legislation is entering the next stage. The Digital Asset Market Clarity Act (CLARITY Act), recently passed by the House of Representatives, attempts to further clarify regulatory boundaries and establish a set of division criteria centered on "control": strong regulation of platforms that hold user assets and have an intermediary nature, requiring them to accept compliance constraints such as KYC, AML, and fund segregation; while truly decentralized protocols where users interact directly with smart contracts are exempted, reflecting a structural response to FTX-style risks.
The Senate draft presents another regulatory philosophy. This version proposes the concept of "ancillary asset", which refers to tokens that are issued through investment contracts but do not themselves contain equity or income rights. The issuer can self-certify to the SEC that it is not a security. If the SEC does not object within 60 days, it can be treated as a commodity asset. Compared with the House of Representatives' emphasis on control and platform roles, the Senate is more concerned about whether the token itself has financial rights attributes, and the overall orientation is more inclined to provide an operational compliance path for the issuer.
The disagreement between the two houses on the definition standards is essentially a different judgment on "what should be regulated": whether it is the concentration of regulatory power or the regulation of financial attributes. This disagreement not only involves concepts, but also directly affects the distribution of dominance of regulatory agencies-the House version is dominated by the CFTC, while the Senate still retains the SEC's preliminary screening authority. Future supervision may not be covered by a single framework, but may present a multi-level system based on rights structure, governance methods and asset attributes.
In the end, the two houses will reach a compromise text before Congress resumes in September. Even if the final legislation fails to pass quickly, this round of game has revealed the tiered trend of digital asset regulation in the United States - after stablecoins, core areas such as DeFi, ICO, and platform intermediaries will gradually enter the institutional track, and the path they choose will determine the direction and voice of the United States in the global crypto-financial order.
Polygon USDC transfer volume surged 141%, with growth mainly coming from South America
Quick Overview
Small USDC transfers (less than $1,000) on the Polygon network have surged 141% so far this year, surpassing Solana in such transfers and becoming the main blockchain for processing small USDC payments;
Aishwary Gupta, global head of payments and real assets at Polygon Labs, said that the significant increase in Tron network transaction fees (from $3.3 a year ago to more than $7 now) has prompted users to look for alternatives, and USDC transfers on Polygon only cost a fraction of a cent;
Growth is coming primarily from South America, particularly from users in Argentina and Brazil, with nearly 50% of stablecoin transfers in Argentina using USDC.
Why it matters
Polygon is repositioning itself as a payments and real asset tokenization platform as the stablecoin market expands 27% this year to an all-time high of $262 billion. While Tron still accounts for 60% of stablecoin volume, with more than $81 billion in stablecoins compared to Polygon’s $2.8 billion, high Tron transaction fees create market opportunities for Polygon, particularly in the area of daily micropayments in developing countries. With Standard & Poor’s predicting the stablecoin market will reach $2 trillion by 2028 and Bernstein predicting it could grow to around $4 trillion over the next decade, Polygon’s payment strategy could position it well as Wall Street and traditional financial institutions enter the stablecoin space.
PNC, the seventh largest bank in the United States, and Coinbase have reached a strategic cooperation
Quick summary
PNC Bank, with $557 billion in assets, and crypto exchange giant Coinbase announced a strategic partnership to expand digital asset solutions and enhance banking services for PNC customers (including institutional investors);
PNC customers will soon be able to buy, hold and sell cryptocurrencies directly through the PNC banking interface. The service is supported by Coinbase's institutional-grade "crypto as a service" (CaaS) platform to ensure secure transactions and custody;
As a mutually beneficial cooperation, PNC will provide Coinbase with its first-class banking services, while Coinbase will provide PNC with Contributing its professional crypto trading and custody tools, the two sides complement each other's strengths to enhance customer experience.
Why it's important
This cooperation marks an important milestone in the trend of integration between traditional finance and the crypto industry. The seventh largest bank in the United States joining the crypto service will greatly enhance the accessibility and legitimacy of digital assets in the mainstream financial system. Following the exploration of crypto asset services by large banks such as JPMorgan Chase, PNC's move further confirms that the US banking industry is accelerating its embrace of digital assets, providing ordinary customers and institutional investors with convenient access to cryptocurrencies, which will significantly expand the potential user base of cryptocurrencies.
Global remittance giant Western Union explores launching stablecoin services in digital wallets
Quick overview of key points
Global remittance giant Western Union is seeking to integrate stablecoins into its digital wallet infrastructure. In an interview with Bloomberg, the company's CEO Devin McGranahan said that it is exploring partnerships to provide stablecoin deposit and withdrawal services;
McGranahan said Western Union sees stablecoins as an opportunity rather than a threat, and the company is evaluating how to provide stablecoin products to customers in its global digital wallets;
Western Union sees three key opportunities for stablecoin services: enabling faster cross-border transfers, facilitating conversions between stablecoins and fiat currencies, and providing value storage for customers in volatile economies.
Why it matters
After President Trump signed the GENIUS Act, stablecoins gained mainstream recognition, and Western Union, as a leader in the traditional remittance industry, entered the stablecoin field, showing the acceleration of the financial services industry's transformation to digital assets. The GENIUS Act established a federal regulatory framework for stablecoins, requiring stablecoins to be fully backed by US dollars or other highly liquid assets, and establishing annual audit requirements for issuers with a market value of more than US$50 billion. Western Union's 175-year-old traditional financial giant embraces stablecoins, which will bring significant changes to the cross-border payment market, especially providing customers in volatile economies with more stable and faster financial service options.
Latin America's Quiet Financial Revolution, Cryptocurrency Provides Freedom for Unbanked People
Quick Overview of Key Points
Chainalysis' 2024 report shows that strict capital controls and inflation rates of over 100% in countries such as Argentina and Venezuela are driving the adoption of cryptocurrencies, and people are increasingly relying on digital wallets and stablecoins to obtain US dollars;
The rate of unbanked accounts in Latin America is astonishing, with more than 50% in Mexico and 43% in Peru. Cryptocurrency provides these groups with a financial service channel that bypasses the traditional banking system;
Why it matters
Latin American cryptocurrency adoption is fundamentally changing the financial landscape, providing financial freedom for low-income, rural and minority groups that have long been excluded from the traditional banking system. As governments such as Mexico and Brazil work with crypto companies to develop regulatory frameworks, and as regions such as Costa Rica develop "crypto tourism", digital assets are expected to reduce cross-border payment costs (currently the cost of remittances to the United States is as high as 6.4%) and increase financial inclusion. This trend has a significant impact on economic independence and reducing the gap between rich and poor in Latin America, but whether a truly inclusive infrastructure can be built remains a key challenge.
BofA predicts GENIUS Act will boost stablecoin market growth by $75 billion
Quick overview of key points
Bank of America reports that with President Trump signing the GENIUS Act, U.S. stablecoin regulation has reached a turning point, and the supply of stablecoins will increase by $25 billion to $75 billion in the short term;
Banks are ready to issue their own stablecoins and prefer a consortium model. BofA CEO Brian Moynihan said the bank is ready to enter the stablecoin market at the right time;
Analysts expect consolidation in the stablecoin industry in the next 2-3 years, which will drive wider adoption of stablecoins and other tokenized assets after the passage of the CLARITY Act.
Why it matters
The GENIUS Act is driving the transformation of the US financial system, and the entry of banking giants will reshape the stablecoin market. The growth of stablecoin reserves may affect the demand for US Treasury bonds, prompting the Treasury to adjust its short-term Treasury bond issuance strategy. Despite the gradual rise of cross-border applications, most bank executives believe that stablecoins will not subvert the domestic payment system in the short term. The current total stablecoin market value is about US$270 billion, and the growth predicted by BofA is equivalent to an increase of 9-28%, reflecting the optimistic expectations of financial institutions for the market outlook after regulatory clarification.
Circle's USYC becomes Binance's institutional client's OTC yield-based collateral
Quick Points
Circle announced a partnership with Binance. Its yield-based U.S. Treasury token USYC can now be used as collateral for Binance's institutional clients' OTC derivatives transactions, mimicking traditional financial market practices
USYC will be held through Binance Banking Triparty or its institutional custody partner Ceffu, and will be natively issued on BNB Chain, allowing users to explore the on-chain world more seamlessly;
USYC provides the same benefits as USDC Near-instant interchangeability enhances capital efficiency, allowing users to convert between tokenized cash and Treasury bonds in near real time, meeting the market trend of doubling the demand for U.S. Treasury tokenization since 2025.
Why it matters
This collaboration represents an important step for the institutional crypto market to move closer to traditional financial practices. The integration of Circle's Treasury token USYC with Binance, the world's largest exchange, provides institutional investors with a new way to optimize collateral management and earn returns, while promoting the expansion of the real asset tokenization ecosystem. This trend demonstrates the accelerated integration of crypto finance with traditional financial infrastructure, especially in the innovation of capital market tools.
Square begins to launch Bitcoin payment system, aiming to make it fully popular by 2026
Quick overview of key points
Square, founded by Jack Dorsey, has begun to launch Bitcoin payment functions for its merchant network. The first batch of merchants can now accept BTC payments based on the Lightning Network;
Payments are settled in near real time through the Bitcoin second-layer solution Lightning Network. Square is responsible for handling the exchange of BTC to legal currency, lowering the threshold for merchants to use it;
Square plans to cover all merchants using its sales terminals with this service by 2026. The system was piloted at the Bitcoin 2025 Las Vegas conference in May this year.
Why it's important
Square uses the Lightning Network as a core technology to accelerate the popularity of Bitcoin payments, which solves the main obstacle of slow Bitcoin payments in history. The Lightning Network creates micropayment channels and allows transactions to be processed outside the main chain, greatly increasing transaction speed and reducing fees. As a payment giant, Square's move will significantly promote the practical application of Bitcoin as a daily payment tool, provide encrypted payment options for millions of merchants, and lower the technical threshold for merchants to accept cryptocurrencies. It is expected to become an important milestone in the mainstreaming of Bitcoin payments.
Circle launches Circle Gateway, a new infrastructure for unified USDC cross-chain balances
Quick Overview
Circle launched the Gateway service, allowing users to instantly access unified USDC balances on Avalanche, Base and Ethereum test networks without the need for traditional cross-chain bridging or pre-deployment of funds;
The service provides fast cross-chain access of <500 milliseconds while maintaining non-custodial features. Users retain full control over USDC and funds can only be moved through user signatures;
Circle plans to launch this service on the mainnet soon, and has developed a comprehensive chain expansion roadmap to support more blockchain networks in the future.
Why it matters
As a new type of cross-chain infrastructure, Circle Gateway solves the main pain points of current DeFi cross-chain operations. It can provide liquidity on multiple chains through a single integration, greatly reducing operating capital requirements and improving capital efficiency. This service represents a major advancement in stablecoin infrastructure, which will significantly improve user experience and reduce cross-chain operation risks. Due to USDC's dominance in the field of crypto payments, this innovation may become a key driving force in promoting Web3 cross-chain interoperability standards.
Goldman Sachs and Bank of New York Mellon launch tokenized money market fund, BlackRock and Fidelity have signed up to join
Quick overview of key points
Bank of New York Mellon launches tokenized money market fund through LiquidityDirect platform, ownership records and transactions will be conducted on Goldman Sachs digital asset platform blockchain, BlackRock and Fidelity have signed up to join;
BNY, as the world's largest custodian bank (managing US$53 trillion in assets), will serve as the fund's shareholder service provider, custodian and tokenization manager, responsible for token minting and destruction;
The tokenized U.S. Treasury market has reached US$7 billion this year, a threefold increase year-on-year, but only accounts for 7% of the total The partnership is a small part of the total trillion-dollar money market fund market, which has great growth potential considering that tokenization can achieve seamless and efficient transactions and reduce friction in traditional markets.
Why it matters
This collaboration is a sign that traditional financial institutions are rapidly embracing blockchain technology applications. Tokenized money market funds and stablecoin issuers are competing in the same market, competing for the market of "digitizing traditional US dollar funds and investing in government bonds to earn returns." Banks are both issuers of tokenized products (tokenized MMFs, tokenized deposits) and key infrastructure providers for the flow of funds between crypto and traditional finance. Their strategic choices will have a profound impact on the entire market landscape. This trend will improve the efficiency of institutional liquidity management, while bringing strong growth momentum and credibility endorsement to the tokenized traditional asset market.
JP Morgan will launch crypto asset mortgage services as early as 2025, and lending rates may face downward pressure
Quick Overview
JP Morgan plans to launch a US dollar loan service that accepts cryptocurrencies such as Bitcoin and Ethereum as collateral as early as 2025. The bank has previously allowed customers to obtain loans with Bitcoin ETFs as collateral;
The current size of the crypto loan market is US$36.5 billion (down from US$64.4 billion at the peak of the bull market in 2021). Tether, Galaxy Digital and Ledn account for 90% of the non-DeFi loan market, and DeFi platforms provide US$19.1 billion in loans;
Why it matters
The entry of JPMorgan Chase, the world's largest bank, into the field of crypto loans marks the industry's accelerated transition to mainstream finance. CEO Jamie Dimon once called Bitcoin a "fraud", but now gradually embraces crypto assets, reflecting the improvement of the regulatory environment and the growth of institutional demand. Bitcoin's characteristics as a global unified collateral will make such loan products competitive globally, not just in developed countries, providing more equal financial service opportunities for global crypto holders. This move may trigger other large banks to follow suit, accelerating the integration of crypto assets with the traditional financial system.
Figma plans to raise $1.03 billion through auction-style IPO, and the S-1 document first monetizes stock authorization terms
Quick overview of key points
After the $20 billion acquisition deal with Adobe was stranded due to regulation, Figma turned to an independent listing and planned to issue 12.47 million new shares and 24.46 million old shares for resale, with a price range of $25-28 and a valuation of up to $13.6 billion;
The company chose an "auction-style IPO" instead of a traditional roadshow inquiry, requiring investors to submit limit orders to specify the subscription price and quantity, in order to obtain more realistic market feedback and maximize the company's financing capabilities;
Why it is important
The return of auction-style IPOs marks that the pricing mechanism of the primary market is iterating in a more efficient and fair direction, avoiding the problem of systematic underestimation of the issue price in traditional IPOs. More importantly, Figma's reserved tokenized equity space shows that technology companies are exploring new paths for the digitalization of capital structure, which may bring liquidity characteristics similar to the public market to non-listed equity, and broaden the investor base through on-chain settlement, global access and fragmented transactions. As one of the largest technology IPOs this year, Figma's financing innovation has exemplary significance for the next round of technology companies' financing paradigm shift.
Anchorage to Issue the First GENIUS Act Compliant USDtb Stablecoin
Quick Highlights
Anchorage Digital, the first federally chartered crypto bank in the United States, announced that it will issue Ethena Labs' USDtb stablecoin in the United States, the first stablecoin designed specifically to comply with the new GENIUS Act;
USDtb is a yield-based US dollar token, mainly supported by BlackRock's BUIDL and crypto assets as collateral to maintain a $1 anchor, rather than a traditional reserve model. It has locked up a value of $1.45 billion since its overseas issuance in December last year;
Why it is important
The issuance of USDtb within the country is an important milestone in the US stablecoin market. It not only verifies the effectiveness of the GENIUS Act, but also indicates that "interest-bearing, compliant" digital dollar products will become the core trend of future financial innovation. Anchorage's actions put it on the same competitive track as existing US dollar stablecoin issuers such as Circle and PayPal, as well as traditional banks such as JPMorgan Chase and Citi that are exploring tokenized deposits. This competition will revolve around who can better provide compliant, efficient, interest-bearing and trusted digital dollars.
Crypto tax rules remain unchanged after the GENIUS Act, and are still taxed as property
Quick Overview of Key Points
Despite the new regulatory framework introduced by the GENIUS Act and the CLARITY Act passed by the House of Representatives, the IRS still taxes cryptocurrencies as "intangible property", maintaining the tax position established in 2014;
Crypto assets are not subject to the wash sale rules of securities, nor do they enjoy the 1256 section benefits of commodity transactions. The only exception is Bitcoin futures contracts, which can enjoy a 60/40 capital gains split and year-end market valuation;
The GENIUS Act focuses on the reserves, audits, and disclosure requirements of stablecoin issuers, while the CLARITY Act clarifies the SEC and CFTC’s regulatory scope, but neither has changed the tax classification of crypto assets.
Why it matters
The unchanged tax rules have mixed benefits and disadvantages for traders. Crypto investors can continue to use the no-wash sale rules for more flexible loss harvesting, but they cannot choose Section 475 mark-to-market valuation or enjoy the 20% QBI exemption. Bitcoin ETF investors (such as Nasdaq IBIT and CBOE’s FBTC) are still treated as directly holding property for tax purposes. This shows that even with the increasingly improved regulatory framework, crypto tax rules are still subject to special legislation, and traders need to develop tax strategies accordingly.
Prediction market Polymarket acquires CFTC license to return to the United States, may issue its own stablecoin
Quick overview of key points
Polymarket acquired QCEX, a CFTC-licensed exchange in Florida, and its clearing agency QC Clearing for US$112 million, providing a legal channel for returning to the US market, and will serve US users as a "licensed platform";
Polymarket's political prediction market has exceeded the liquidity and trading volume of many traditional derivatives platforms, especially before the US election, which means that users have a strong demand for compliant and efficient prediction platforms;
Polymarket Consider issuing its own stablecoin as the second growth engine for the integration of the platform value chain, internalize the interest income of "float" generated by user trading funds, enhance the profit model and improve fund retention and user stickiness.
Why it is important
Against the expectations of the Trump administration's return and the opening of CFTC supervision, the prediction market is transforming from a marginal tool to a mainstream financial infrastructure. Polymarket's compliance strategy proves that in the era of high-frequency trading and information game integration, only platforms with trading depth, compliance channels and capital control can continue to occupy the minds of users. The "prediction market + own stablecoin" model will create a stronger ecosystem within the regulatory framework and build a more lasting competitive advantage for the next round of market cycles.
Gauntlet proposes to build a sustainable on-chain regulatory framework to balance DeFi regulation and innovation
Quick Overview of Key Points
Breakthrough progress has been made in US crypto regulation: the first cryptocurrency bill was signed and took effect, the GENIUS Act was passed by both houses, and the SEC Chairman considered providing "innovation exemptions" for DeFi intermediaries and issuers;
Based on the experience of managing $1.3 billion in assets, the Gauntlet team proposed a regulatory framework: 1) Recognize the fundamental differences between DeFi's self-custody, permissionless architecture and traditional finance; 2) Establish clear standards including disclosure requirements and safe harbor clauses;
Why it matters
The current financial regulatory framework is designed based on the traditional intermediary model and cannot adapt to the new paradigm of DeFi's permissionless, self-custodial and autonomous trading. As DeFi continues to reshape the financial landscape, it is critical to develop regulatory rules that balance consumer protection and innovation. Reasonable regulation will enhance ecosystem sustainability, security, and broader institutional adoption while maintaining DeFi's core advantages of reducing costs, eliminating friction, and providing universal financial access. The traditional American ideals of free commerce, personal autonomy, and respect for property rights are highly consistent with the vision of DeFi, which provides a unique opportunity to establish a forward-looking regulatory framework.
Tether CEO confirms that the layout of the US market has made significant progress and plans to launch an institutional-grade stablecoin
Quick overview of key points
Tether CEO Paolo Ardoino said in an interview with Bloomberg that the company's plan to enter the US market is "progressing smoothly" and is expected to announce specific plans for the institutional market in the next few months;
The news was released just after President Trump signed the GENIUS Act last week, which established a federal framework for US stablecoin regulation and required large stablecoin issuers to conduct annual audits;
Tether revealed in April that it plans to launch a US-based stablecoin designed specifically for institutional clients, focusing on providing faster settlement services, which will be distinguished from its current world's largest USDT (market value of US$162 billion).
Why it matters
Tether's entry into the US market marks the response and adaptation of the world's largest stablecoin issuer to the new regulatory framework. With the signing of the GENIUS Act, the US stablecoin market will usher in a more standardized development environment and will also face strong competition from traditional financial institutions jointly owned by JPMorgan Chase, Bank of America, Citi and Wells Fargo. Although Ardoino admitted that he might be at a disadvantage in the short term, he emphasized that Tether has better technology and market understanding. At the same time, Tether's new CFO is leading the company's efforts to achieve a full audit, which will enhance its compliance and credibility in the US market. Unlike its competitor Circle, Tether has made it clear that it has no intention of going public, showing its unique strategic positioning.
The Hong Kong Monetary Authority will release a summary of the rules for stablecoin issuers next week. The Chief Executive of the Hong Kong Monetary Authority warns against excessive speculation in stablecoins
Quick Overview of Key Points
The Hong Kong Monetary Authority will release a summary of the rules for stablecoin issuers next week. At the same time, the Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, warned that the market is overly excited;
The mere announcement of the intention of several listed companies to develop stablecoin business has triggered a surge in share prices and trading volumes, but the HKMA will only grant a few stablecoin licenses in the initial stage;
The HKMA emphasized that even if a license is obtained, based on steady development considerations and initial resource investment needs, there is uncertainty about the contribution of stablecoin business to the company's short-term profits.
Why it is important
Hong Kong's stablecoin regulatory framework is about to be implemented, but the HKMA has issued a clear warning against the market "hype" phenomenon, indicating that the regulator will adopt a cautious and conservative attitude. Investors need to calmly evaluate the valuation of related companies and avoid blindly following the trend. This also implies that Hong Kong will adhere to the principle of prudence in developing the virtual asset ecosystem, and the issuance of licenses will be extremely strict, providing important decision-making references for market participants.
American Bankers Association opposes Circle, Fidelity and Ripple's trust bank charters
Quick Overview of Key Points
Five banking associations, including the American Bankers Association, wrote to the OCC to oppose Circle, Fidelity Digital Assets, Protego Trust and Ripple's applications for national trust bank charters;
The banking association criticized these crypto and stablecoin companies for not disclosing enough information for public comment, saying that 90% of the application documents of Circle and Ripple were edited and deleted;
The association believes that these applications are essentially a "backdoor" approach aimed at becoming a national bank, and asks the OCC to postpone approval until the applicants disclose more details of their business plans.
Why it matters
The tension between the banking and crypto industries has once again been highlighted, with traditional financial institutions trying to prevent crypto companies from entering the regulated financial system through trust bank licenses. The OCC's decision will directly affect the compliance path and business expansion capabilities of major stablecoin issuers such as Circle, while reflecting the challenges faced by regulators in balancing innovation and financial stability. If crypto companies successfully obtain licenses, it will substantially enhance their legal status and competitiveness in the U.S. financial system.
Tether Assists the United States in Freezing $1.6 Million in USDT Related to Terrorist Financing
Quick Highlights
Tether announced that it assisted the U.S. authorities in freezing and reissuing approximately $1.6 million in USDT, which was related to the BuyCash financial network in the Gaza region, which was accused of being related to terrorist financing activities;
This action is part of a larger civil forfeiture case by the U.S. Department of Justice involving approximately $2 million in digital assets used to support designated terrorist organizations;
Tether has assisted law enforcement agencies around the world in freezing more than $2.9 billion in USDT related to illegal activities, supporting more than 275 law enforcement agencies in 59 jurisdictions, and freezing more than 2,800 in cooperation with U.S. agencies alone. wallets.
Why it matters
Tether's close cooperation with law enforcement agencies demonstrates the advantages of blockchain transparency in combating financial crime. Unlike traditional financial systems, USDT transactions can be tracked, frozen and recovered, providing new tools to combat terrorist financing. As the largest stablecoin issuer, Tether has demonstrated its compliance determination by actively cooperating with supervision, which helps improve its regulatory image and enhance the legitimate status of stablecoins in the global financial system.
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