Biden plans to strengthen export controls on AI chips; a16z executives and others compete for CFTC chairmanship

Headline

▌Biden plans to strengthen export controls on AI chips before leaving office

According to foreign media reports, the Biden administration of the United States plans to impose a new round of restrictions on the export of artificial intelligence chips from companies such as Nvidia (NVDA.O) before leaving office. According to people familiar with the matter, the United States hopes to restrict the sale of artificial intelligence chips used in data centers at the national and corporate levels, with the goal of concentrating artificial intelligence development in friendly countries and prompting global companies to align with US standards. At a time when demand for AI technology is surging, this move will expand semiconductor restrictions to most parts of the world. People familiar with the matter said that the new regulations will set three layers of restrictions on chip transactions and may be released as early as Friday. Affected by this news, Nvidia, AMD (AMD.O) and others fell in after-hours trading in the US stock market.

▌Kraken and a16z executives and other crypto-friendly people are competing for the position of chairman of the US CFTC

According to Cryptoslate, citing Fox Business News reporter Eleanor Terrett, the transition team of US President-elect Donald Trump is looking for cryptocurrency-friendly candidates to serve as the next chairman of the Commodity Futures Trading Commission (CFTC). Competing for this position include current CFTC Commissioner Summer Mersinger, a16z crypto policy director and former CFTC Commissioner Brian Quintenz, and Kraken's chief legal officer Marco Santori.  

According to people familiar with the matter, they call Quintenz and Mersinger the "hot candidates" for the position, and both of these alleged hot candidates have extensive experience and crypto policy qualifications. Mersinger is considered a thought leader in the intersection of crypto innovation and consumer protection. She often speaks at industry events and has been advocating for balanced regulation to promote the growth of the industry. Meanwhile, Mersinger has been a vocal advocate for a regulatory environment that accommodates crypto innovation, a position he honed during his time as a CFTC commissioner and in his current role at a16z. If elected, either candidate could steer the agency toward policies that prioritize clarity and innovation for the U.S. crypto industry. While Quintenz and Mersinger are leading the pack, several others remain on the shortlist, including Republican CFTC Commissioner Caroline Pham, who has a strong regulatory background, Neal Kumar, who has held senior positions at the CFTC and is considered a regulatory expert, and Josh Sterling. The Trump transition team has reportedly reviewed at least six candidates for the position, reflecting the administration's focus on finding a leader who aligns with its vision for the crypto industry.

Market

As of press time, according to Coingecko data:

BTC's latest transaction price is $94,861.69, with a daily increase or decrease of -2.2%;

ETH's latest transaction price is $3,323.69, with a daily increase or decrease of -2.3%;

BNB's latest transaction price is $695.47, with a daily increase or decrease of -1.0%;

SOL's latest transaction price is $196.98, with a daily increase or decrease of -2.9%;

DOGE's latest transaction price is 0.3422 yuan, with a daily increase or decrease of -2.6%;

XPR's latest transaction price is 2.37 US dollars, with a daily increase or decrease of +3.1%.

Policy

▌Oklahoma lawmakers submit "Bitcoin Freedom Act" to allow employees in the state to receive wages in Bitcoin

US Senator Dusty Deevers of Oklahoma has submitted the "Bitcoin Freedom Act" numbered SB325, which will allow Oklahoma employees to choose to receive wages in Bitcoin and allow suppliers to accept Bitcoin payments. The SB325 bill ensures that participation is completely voluntary, respects free market principles, and gives employees, employers and businesses the right to choose the payment method that best suits them. The SB325 bill is eligible for consideration in the 60th legislative session that begins on February 3.

▌U.S. CFTC Chairman Focuses on Cryptocurrency in Pre-Departure Speech and Emphasizes the Need for the CFTC as Its Regulator

Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), will resign as Chairman on January 20 to make way for a future appointee of President-elect Donald Trump. In his last public speech at the Brookings Institution this week, he spent a lot of time talking about cryptocurrencies and the need to promote the CFTC as its regulator.  

Rostin Behnam said that cryptocurrencies "dominated every period of my tenure." He said: "Due to the lack of federal legislation, people's concerns about customer protection, the increase in fraud and market abuse, broader market resilience and even financial stability are increasing. We have seen this situation in history. We have placed a large number of financial businesses outside of supervision and responsibility, and we have seen again and again that the final outcome is bad." He also urged protection for investors who are "eager to include digital asset products in their portfolios."

Blockchain Applications

▌Avalanche Foundation provides grant to VIA Labs for the development of cross-chain protocol Proto-USD

The Avalanche Foundation announced that VIA Labs has received a grant through the InfraBUIDL () program. VIA Labs is using the funds to develop the Avalanche ecosystem cross-chain protocol Proto-USD.  

According to reports, Proto-USD simplifies cross-chain liquidity and enables USDC to be easily transferred between Avalanche L1 and other networks, aiming to improve the accessibility, scalability and overall connectivity of the Avalanche ecosystem.

▌Solana urges validators to test early versions of the "Firedancer" upgrade

Solana is stepping up testing of Firedancer, a software upgrade that is expected to significantly increase the processing speed of the blockchain. According to messages in the Solana technical Discord server, the Solana core development team hopes that by the end of this week, the "vast majority" of processing power in the on-chain low-stakes test network will be able to run Frankendancer, an early version of Firedancer. The call to action for Solana validators marks the biggest test Firedancer has faced to date. The upgrade has been in the works since the chain experienced frequent failures in 2022 and is seen as enhancing Solana's stability and speed. On Tuesday, the Solana Foundation used this subsidy reward and punishment mechanism for the first time to directly promote the adoption of Frankendancer. Validators have only a few days to switch their testnet systems to the new client or lose their delegated interests.

▌Vitalik: Polymarket is unique because it is suitable for solving real social problems

Vitalik Buterin said in a post on X: "Polymarket is unique because its growth period coincides with real social problems and is suitable for helping to solve the problem (in 2024, all parties have a huge distrust of partisan media in the United States and elsewhere). What specific large-scale social problems is encryption technology suitable for helping to solve now or in the near future? (In fact, we hope to find situations involving the collapse of centralized institutions, distrust or being widely regarded as harmful, and there is a large demand to bypass them)."

Cryptocurrency

▌Fidelity Digital Assets Analysts: BTC included in strategic reserves of multiple countries may significantly boost crypto market in 2025

Fidelity Digital Assets analysts predict that BTC included in strategic reserves of multiple countries may significantly boost crypto market in 2025. They believe that inspired by the success of El Salvador and Bhutan, governments may secretly begin to accumulate digital assets to hedge against inflation and currency depreciation.

▌CryptoQuant Research Director: Bitcoin pullback caused traders' unrealized profits to shrink significantly, but market adjustment is healthy

CryptoQuant Research Director Julio Moreno wrote on the X platform that the current Bitcoin price pullback has led to a sharp drop in the unrealized profit margins of on-chain traders. Bitcoin had previously exceeded $100,000. Analysis shows that such a pullback is normal after a sharp rise and contributes to the healthy development of the market. Currently, the realized price of traders (usually forming price support in a bull market) is about $88,000, while the current price of Bitcoin is about $93,000.

▌Billionaire Mark Cuba: If the economy collapses, I would rather hold Bitcoin than gold

Billionaire Mark Cuba said that if there is a problem with the economy, he would rather own Bitcoin than gold. Mark Cuba said, "I think Bitcoin is more valuable."

▌Blast to launch mobile platform and token economics update later this month

Ethereum Layer2 network Blast announced on X platform: "Blast's mobile platform will be launched later this month along with a token economics update. All Blast Dapps should ensure that points and coins are distributed to users before these changes. There will be no gold coin distribution in January. All users should also ensure that they log in to the Blast website with their own wallets. The official launch date will be announced soon."

▌Galaxy and Agora complete the first OTC transaction involving stablecoin AUSD

According to the official announcement, asset management company Galaxy and stablecoin issuer Agora completed the first OTC transaction involving Agora's stablecoin AUSD. "This transaction marks the transition of AUSD from proof-of-concept to real-world application," said Nick van Eck, CEO of Agora, in a statement. 

Agora said AUSD is a "builder-centric" stablecoin designed to attract traders and developers through "gas-optimized" smart contracts. The company also said that the stablecoin is fully backed, with collateral held by one of the world's largest asset managers and subject to regular reserve audits.

Important Economic Dynamics

▌Federal Reserve Messenger: Minutes show that officials are generally reluctant to cut interest rates this month

"Federal Reserve Messenger" Nick Timiraos pointed out that the Federal Reserve's minutes further showed that officials were generally willing to keep interest rates unchanged at the upcoming meeting at the end of this month. The minutes said: "Participants indicated that the committee was at or near the appropriate level to slow the pace of policy easing." Officials believe that based on their current outlook for economic activity, the Federal Reserve may continue to cut interest rates at a slower pace than in recent months.

▌Fed Minutes: Unemployment is expected to rise slightly

The minutes of the Fed's December meeting noted that staff members forecast that economic conditions in the United States will remain solid. Real GDP growth is expected to slow slightly from the previous baseline forecast, and the unemployment rate is expected to rise slightly, but will remain close to the staff's estimate of the natural rate of unemployment. In the staff's baseline forecast, the inflation forecast for 2024 is slightly higher than the forecast made at the previous meeting, reflecting the unexpected upward situation brought by some recent data, and the inflation rate is expected to fall to 2% by 2027, which is consistent with the forecast of the November meeting.

▌Former Bank of Japan Board Member: The possibility of a rate hike in March has increased

Makoto Sakurai, a former member of the Bank of Japan's policy board, said that given the growing uncertainty brought about by US President-elect Trump, the possibility that the Bank of Japan will delay another rate hike until March is increasing. "There seems to be too much uncertainty as Trump comments on various things. There may not be enough reason to support a rate hike in January." Makoto Sakurai's speech came as Bank of Japan watchers were looking for hints about a rate hike this month or later. Makoto Sakurai believes that the probability of a rate hike in March is as high as 70%, as the Bank of Japan may prefer to wait until the situation is clearer in the first few months of Trump's new administration before taking action.

Golden Encyclopedia

▌What is Compressed NFT?

CNFT is a newer non-fungible token that uses state compression technology to store data more efficiently on Solana. Unlike traditional NFTs that store all token metadata directly on the chain or through external links such as IPFS, cNFT uses Merkle trees to optimize data storage.

Disclaimer: As a blockchain information platform, Golden Finance publishes articles for information reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness.