5.20 AI Daily Report: The U.S. Senate passes a motion to proceed with the stablecoin bill, tightening encryption regulations.

1. Headline

1. The U.S. Senate passed the GENIUS Act, strengthening regulation on stablecoins.

The "GENIUS Act" was passed in the U.S. Senate on May 20, and will implement strict regulations on stablecoin projects. The act requires stablecoin issuers to hold 100% of reserve assets as backing, and strengthens anti-money laundering provisions. Previously, Democratic lawmakers were concerned that the act might benefit the Trump family and obstructed it, but it was ultimately passed after revisions.

This bill aims to strengthen the regulation of stablecoins and maintain the stability of the financial system. Supporters believe that the rapid development of stablecoins has brought potential risks and that clear regulatory rules need to be established. However, critics are concerned that excessive regulation could stifle innovation and harm the competitiveness of the United States in the field of digital assets.

Regardless, the passage of the "GENIUS Act" signifies that the U.S. government is paying attention to and taking action to address the new challenges posed by cryptocurrencies. In the future, stablecoin issuers will face stricter compliance requirements, and the industry landscape may be reshaped.

2. Microsoft brings Musk's Grok 3 and other AI models to the cloud

On May 20, Microsoft announced the addition of AI models such as Grok 3 and Grok 3 Mini developed by Musk's xAI company to the Azure AI Marketplace. This move aims to add new options to the AI tool selection on Microsoft's cloud platform and expand its AI capabilities.

Grok 3 is a large language model, claimed to be capable of complex reasoning and analytical tasks. Its integration with Azure means that enterprise users will be able to access and utilize this powerful AI tool in the cloud. Meanwhile, Microsoft has also included models from companies such as OpenAI, Meta, and DeepSeek in its AI marketplace.

Analysts believe this reflects that tech giants are accelerating their布局 in the AI field, competing for dominance in the future artificial intelligence market. By integrating AI models from different companies, cloud service providers can offer users more comprehensive AI capabilities to meet the growing demand. In the future, AI may become a key selling point of cloud computing services.

3. South Korean actress Hwang Jung-eum is accused of misappropriating company funds to invest in cryptocurrency.

According to reports, South Korean actress Hwang Jung-eum has admitted to embezzling $3.1 million (, approximately 4.34 billion won ), from her personal management company to invest in cryptocurrency, and has been prosecuted under the Act on the Aggravated Punishment of Specific Economic Crimes. Hwang Jung-eum has sold some of her crypto assets and plans to liquidate her properties to make up for the funds.

This case has attracted widespread attention. On one hand, the risks of entertainment industry figures venturing into cryptocurrency investment have been exposed again, making them susceptible to temptation and violating the law; on the other hand, the high-risk nature of cryptocurrency investments has also prompted reflection. Experts urge regulatory agencies to strengthen oversight of virtual assets to protect investors' rights.

At the same time, the case also reflects the level of popularity of cryptocurrencies in the Asian region. Despite the risks, the investment frenzy has not completely faded. The future prospects of cryptocurrency development in Asia are worth ongoing attention.

4. The Ethereum Foundation has launched a major security initiative to maintain network integrity.

The Ethereum Foundation recently announced a significant initiative to invest substantial funds aimed at enhancing the security of the Ethereum network. The plan will involve hiring top security experts and closely collaborating with industry partners to comprehensively review Ethereum's security defenses.

Cybersecurity issues have always been a significant challenge for Ethereum. As the ecosystem continues to expand, the attack surface is also growing. This initiative aims to enhance the overall defense capabilities of Ethereum by strengthening security infrastructure, ensuring its long-term development.

Analysts point out that this move highlights the Ethereum Foundation's commitment to network security. As one of the most important public blockchains in the cryptocurrency space, the security of Ethereum is directly related to the healthy development of the entire industry. In the future, Ethereum may become a benchmark in the field of security, setting an example for other public blockchains.

5. The price of Dogecoin is expected to break through $0.5, analysts are optimistic about the medium-term prospects.

Renowned cryptocurrency analyst Marco Polo recently made optimistic comments on the price prospects of Dogecoin. He believes that as long as Dogecoin can break through a key resistance level, a "classic upward trend" to $0.5 will unfold in the medium term.

Marco Polo's judgment is mainly based on technical analysis. The current price of Dogecoin is above $0.22, with an increase in both trading volume and retail activity, while large holders are continuously accumulating positions. These signs indicate that Dogecoin's upward momentum is building.

However, analysts also warn that the range of $0.28-$0.3 may be an important resistance level. Whether Dogecoin can successfully break through will determine its subsequent performance. Overall, despite the uncertainties, the medium-term prospects for Dogecoin's rise remain promising.

2. Industry News

1. Bitcoin briefly broke above $107,000 before retreating, leading to increased market divergence.

The price of Bitcoin briefly surpassed the $107,000 mark on May 20, before experiencing a pullback. Analysts point out that this volatility reflects a divergence in the market's outlook on Bitcoin's future trajectory. On one hand, the uncertainty of the macroeconomic outlook and factors such as the downgrade of the U.S. debt rating have made investors cautious about risk assets, and coupled with significant technical selling pressure at $107,000, this has led to the price being pressured downwards.

On the other hand, the fundamentals of Bitcoin remain strong, with network activity continuing to rise and institutional investor enthusiasm high. According to crypto analytics firm Glassnode, the number of active Bitcoin addresses and transaction fee revenue have both reached all-time highs. In addition, institutional investors like MicroStrategy continue to increase their Bitcoin positions, indicating confidence in Bitcoin's long-term value.

Trader Cheds believes that Bitcoin may oscillate between $103,000 and $107,000 in the short term, with attention on whether it can effectively break through the $107,000 level. If it can sustain the breakthrough, Bitcoin is expected to further test the resistance area of $110,000 to $115,000. However, if it loses the support level of $103,000, it may trigger further corrections. Overall, the medium-term trend of Bitcoin still carries uncertainty, and investors need to closely monitor changes in fundamentals and market sentiment.

2. Ethereum leads the rebound of altcoins, Pectra upgrade boosts positive sentiment.

After Bitcoin briefly broke through $107,000, major altcoins such as Ethereum also saw a significant rebound. Ethereum rose more than 4% during the day, reclaiming the $2,500 round number. Analysts believe that the anticipation of the Ethereum Pectra upgrade is the main driver of this rebound.

The Pectra upgrade will bring higher scalability and security to Ethereum, expected to further enhance network performance and attract more applications and users into the ecosystem. In addition, the Pectra upgrade will also promote Ethereum's transition to the PoS consensus mechanism, which is beneficial for improving the network's environmental friendliness and sustainability.

In addition to favorable fundamentals, the continued development of popular applications such as DeFi and NFTs in the Ethereum ecosystem has also provided support for token prices. Data shows that the total locked value in the Ethereum DeFi ecosystem has exceeded $80 billion, dominating the industry.

However, some analysts are cautious about the sustainability of Ethereum's rebound. Crypto analyst Lark Cloud stated that Ethereum still faces certain technical selling pressure around $2600, and if it cannot effectively break through, the rebound momentum may weaken. Investors need to closely monitor the developments in the Ethereum network and changes in market sentiment.

3. Solana ecosystem tokens collectively rebound, Meme coins perform outstandingly.

Driven by the rebound in the cryptocurrency market, tokens within the Solana ecosystem have also seen a collective rise. Among them, Meme coins have shown the most significant performance, with an increase generally exceeding 10%. Analysts believe that after Bitcoin broke through $107,000, funds began to flow into higher-risk altcoins, especially in the category of Meme coins.

The Meme coin project Pump.fun within the Solana ecosystem has performed impressively in this round of market conditions. The project's token surged over 30% within 24 hours, attracting widespread market attention. However, some analysts have pointed out that Pump.fun has a significant suspicion of market manipulation by bots, with 60% to 80% of its trading volume potentially being false liquidity.

In addition to meme coins, other popular tokens within the Solana ecosystem have also experienced varying degrees of rebound. For example, the token SLND of the centralized lending protocol Solend in the Solana ecosystem has risen by nearly 20%. Analysts believe that the rebound of tokens in the Solana ecosystem is mainly driven by the influx of funds after Bitcoin broke the $107,000 mark.

However, some investors remain cautious about the sustainability of Solana ecosystem tokens. Crypto analyst Luke pointed out that many tokens within the Solana ecosystem are currently overvalued, and if Bitcoin experiences a pullback, the gains of these tokens may quickly vanish. Investors need to maintain a prudent attitude towards the tokens in the Solana ecosystem.

4. Regulatory agencies are becoming stricter on stablecoin legislation, and FRAX may benefit from favorable regulations.

With the U.S. Senate passing the procedural motion, the GENIUS Act has officially entered the review stage, and regulatory agencies are becoming stricter in their oversight of stablecoins. Analysts believe that against this backdrop, the algorithmic stablecoin FRAX may gain regulatory advantages and become the biggest winner.

FRAX is a partially algorithmic stablecoin composed of two tokens: FRAX and FXS. FRAX is a stablecoin pegged to the US dollar, while FXS is a governance token. The founder of FRAX participated in the drafting of the "GENIUS Act," which is expected to bring regulatory advantages to FRAX.

At the same time, FRAX is actively laying out its ecological construction. The project plans to enhance market competitiveness by adjusting its token structure and to build a complete DeFi ecosystem. Analysts believe that the dual benefits of regulation and ecological construction for FRAX will help it gain a larger share in the stablecoin market.

However, some analysts are cautious about the prospects of FRAX. They point out that while FRAX may benefit from regulatory developments, its nature as an algorithmic stablecoin still carries certain risks. In extreme situations, FRAX's peg mechanism may fail, causing it to lose its link to the US dollar. Therefore, investors should remain cautious when investing in FRAX.

5. Cryptocurrency veterans discuss the new market landscape: retail investors absent, institutions in charge.

In this round of cryptocurrency market rebound, some seasoned investors have discovered that changes are occurring in the market, with retail investors' influence diminishing and institutional investors' power continuously increasing. This new market landscape presents both challenges and opportunities for veteran cryptocurrency investors.

Crypto analyst Teuchos stated that in the absence of retail investors, it is necessary for investors to better identify market trends, understand cyclical patterns, share information, and manage risks effectively. At the same time, caution is needed regarding the behaviors of institutional investors, looking for emerging narrative opportunities to achieve substantial returns.

Another analyst, Toly, believes that compared to blindly going against the trend, maintaining a long-term perspective and calmly responding is the advantage that veterans have in the cryptocurrency market. He suggests that investors should not overreact to price surges and drops, but rather learn to patiently wait for good opportunities.

Overall, the cryptocurrency market is entering a new phase, and veterans need to adapt to the consensus and act early. The absence of retail investors means there are new challenges and opportunities, with advantages in trend recognition, understanding market cycles, sharing information, and risk management. Only by doing so can one remain undefeated in the new market landscape.

3. Project News

1. Sahara AI officially launches the public test network SIWA, marking the beginning of a new era of AI-driven blockchain.

Artificial intelligence is developing rapidly, but the issue of ownership of intelligent assets remains unresolved. Sahara AI proposes the AI X WEB 3 solution, achieving asset confirmation through the SIWA test network. Sahara is committed to establishing a new order of intelligent assets and realizing AI collaboration standards.

SIWA is the first public test network launched by Sahara AI, aimed at exploring the application of AI assets on the blockchain. The network is built on the Substrate framework and employs the Nominated Proof of Stake consensus mechanism. SIWA will put AI-generated digital assets on-chain and determine their ownership through an on-chain governance mechanism.

Sahara AI believes that with the continuous evolution of AI technology, the digital assets generated by AI will experience exponential growth. However, there is currently a lack of effective rights confirmation mechanisms, leading to frequent disputes over the ownership of AI assets. The SIWA network aims to solve this problem by providing rights confirmation protection for AI assets.

In addition to the rights confirmation function, SIWA will also support AI collaboration. In the future, AI can collaborate, interact, and trade based on on-chain protocols, achieving resource sharing and value transfer. Sahara AI hopes to establish standards and norms for AI collaboration through the SIWA network.

Industry insiders believe that SIWA is a beneficial attempt to combine AI with blockchain technology. If the issue of AI asset ownership can be resolved, it will undoubtedly inject new momentum into the development of the AI industry. However, SIWA is still in the public testing phase, and its feasibility and security remain to be tested over time.

2. Olfaction Protocol partners with Strant AI: AI + DeFi synergy breaking boundaries, a new era of intelligent finance is about to begin.

In an era where AI technology and DeFi are continuously merging, true disruptive collaboration is often not a single breakthrough, but a mutual endeavor of complementary models, collaborative architectures, and shared visions. The strong partnership between Olfaction Protocol and Strant AI is a high-value strategic alignment.

Olfaction Protocol is an AI-based DeFi prediction market protocol designed to leverage AI technology to enhance the efficiency and accuracy of prediction markets. Strant AI, on the other hand, is an innovative company focused on the integration of AI and blockchain, dedicated to building an AI+DeFi ecosystem.

The cooperation between the two parties will be carried out on multiple levels:

1. Model Fusion: Strant AI's AI model will be deeply integrated with Olfaction's prediction market model to enhance prediction accuracy.
2. Ecological Synergy: Olfaction will integrate with Strant AI's AI+DeFi ecosystem to provide prediction market services.
3. Joint Innovation: Both parties will jointly explore more integration scenarios of AI and DeFi, promoting the development of smart finance.

This collaboration not only enhances the competitiveness of both parties' products but also brings new innovative momentum to the entire AI+DeFi sector. Industry insiders believe that this cross-border integration is the trend of the DeFi era and will undoubtedly become a key driving force for future development.

3. V2 has reached a fork licensing agreement with multiple EVM chains, rewarding BOLD depositors and liquidity providers.

V2 is a well-known decentralized lending protocol in the Ethereum ecosystem. Its latest version V2 is about to fork with nearly 20 EVM-compatible chains, and will reward some BOLD tokens to stable pool depositors and liquidity providers.

V2 has added features such as support for multi-asset collateral and higher capital efficiency based on the original lending functionality. To expand the user base, the team has decided to deploy the V2 version on multiple EVM chains.

Currently, V2 has reached forking license agreements with well-known projects such as Felix Protocol, QuillFi, and OrkiFi. According to the agreements, these projects must reward a portion of the issued tokens to BOLD depositors and liquidity providers in the ecosystem while forking the V2 code.

Founder Robert Lauko stated that this practice aims to encourage more users to join the ecosystem and reward those participants who contribute to it. At the same time, cross-chain deployment will also enhance the protocol's usability and level of decentralization.

Analysts believe that the cross-chain strategy of V2 is a wise move. By collaborating with other projects, it can quickly expand its user base and enhance the protocol's influence. The token reward mechanism will further stimulate user engagement.

However, some people have questioned the innovation of V2. They believe that the improvements in the V2 version are limited and do not offer significant advantages compared to existing lending protocols. It remains to be seen whether the team can win the market with cross-chain deployment.

4. Fractal BRC-20 protocol service upgrade, Wallet temporarily suspends related services

According to the official announcement, Wallet is undergoing an upgrade of the Fractal BRC-20 protocol services. During the upgrade, related services of Fractal BRC-20 will be temporarily unavailable, and the affected services are expected to resume normal operation on May 30, 2025.

Fractal is a BRC-20 compatible public chain in the ecosystem, focusing on high performance and low fees. This upgrade aims to enhance the security and usability of Fractal, preparing for future development.

During the upgrade period, users will temporarily be unable to deposit, withdraw, or transfer Fractal BRC-20 tokens in the Wallet. However, the safety of users' assets is not affected, and they can use them normally once the upgrade is completed.

Wallet stated that this upgrade is aimed at optimizing the underlying architecture of Fractal, enhancing its processing capability and scalability. At the same time, multiple modules such as the consensus mechanism and transaction model will also be upgraded.

Industry analysts believe that as an important part of the ecosystem, the upgrade of Fractal is crucial for the development of the entire ecosystem. By enhancing performance and security, Fractal will provide better infrastructure support for more DApp projects.

However, some users have expressed dissatisfaction with the service interruption during the upgrade. They hope to be well prepared to minimize the impact on users during the upgrade process.

Overall, the upgrade of the Fractal BRC-20 protocol is an important step in strengthening infrastructure development and will inject new momentum into ecological development.

5. Aave TVL surged to $30 billion, an increase of 50% from this year's low.

According to reports, Aave's total locked value ( TVL ) surged to approximately 30 billion USD, a 50% increase from this year's low of 20 billion USD. At the same time, Aave's daily average fees exceeded 1 million USD, with outstanding debt reaching 10 billion USD, and the debt-to-TVL ratio standing at 33%, indicating a healthy utilization level.

As the largest lending protocol in the Ethereum ecosystem, Aave has maintained strong growth momentum. The significant increase in its TVL is mainly attributed to the recovery of the DeFi market and Aave's own product innovations.

Recently, Aave launched a variety of new features, including advanced data solutions to improve lending efficiency and support for new assets. In addition, Aave has also partnered with several institutions to provide customized lending services for institutional users.

Analysts say that the growth of Aave's TVL reflects its leading position in the DeFi lending space. As an industry pioneer, Aave is at the forefront in terms of user experience, security, and innovation.

However, some individuals are concerned about Aave's high debt ratio. They believe that if extreme market conditions occur, it could trigger a wave of liquidations, impacting the Aave ecosystem. Therefore, Aave needs to closely monitor the risk situation and develop contingency plans.

Overall, the growth of Aave's TVL is a reflection of the recovery in the DeFi market. In the future, whether Aave can maintain its leading position will depend on its performance in innovation, security, and risk control.

4. Economic Dynamics

1. Moody's downgrades the US sovereign credit rating, causing turbulence in global financial markets.

On May 16, 2025, the international rating agency Moody's downgraded the United States' long-term sovereign credit rating from the highest level AAA to Aa1, causing turbulence in global financial markets. The main reason is the continuous rise of the U.S. fiscal deficit and debt levels, along with a lack of effective consensus on fiscal policy.

Economic Background: The US economy has maintained moderate growth over the past few years, but inflationary pressures have increased. The annualized GDP growth rate for the first quarter of 2025 was 2.4%, slightly below expectations. The inflation rate in April was 5.1%, above the Federal Reserve's target level of 2%. The unemployment rate remained low at 3.5%.

Important Event: Moody's has downgraded the U.S. rating, reflecting concerns about the U.S. fiscal situation. The federal government debt has exceeded $31 trillion, about 120% of GDP. There are serious differences between the two parties on the issue of debt reduction, making it difficult to reach an effective fiscal consolidation plan.

Market reaction: After the downgrade news was announced, U.S. stocks and bonds closed sharply lower. The S&P 500 index fell by 1.6%, and the Nasdaq index dropped by 2.3%. The yield on the 10-year U.S. Treasury rose to 3.8%. The U.S. dollar index edged higher. Investors are concerned about rising borrowing costs for consumers and businesses, which could impact economic growth.

Expert Opinion: Goldman Sachs Chief Economist Jan Hatzius stated that the downgrade itself has limited impact but reflects the uncertainty of U.S. fiscal policy. He expects the Federal Reserve to continue raising interest rates to control inflation expectations. Morgan Stanley Chief Economist Gita Gopinath believes that the U.S. needs to take fiscal reform measures to restore investor confidence and maintain the attractiveness of government bonds.

2. The U.S. Senate passed a procedural motion, and the GENIUS Act has entered the formal review stage.

The U.S. Senate passed the procedural motion for the "GENIUS Act" with a vote of 66 in favor and 28 against, which will now enter the formal review stage. This bipartisan-supported bill aims to regulate the issuance and operation of stablecoins, bringing federal oversight to the cryptocurrency market.

Economic Background: The cryptocurrency market has experienced rapid growth in recent years, but the regulatory vacuum has led to insufficient investor protection. Stablecoins, as crypto assets linked to fiat currency, play an important role in payment and settlement functions, but they also carry potential risks.

Important event: The "GENIUS Act" requires stablecoin issuers to undergo an audit every two years and maintain sufficient reserve assets. The Act also grants the U.S. Securities and Exchange Commission and banking regulators oversight authority over stablecoin issuers.

Market Reaction: The cryptocurrency market has welcomed the bill. Bitcoin and Ethereum prices have risen slightly. Major stablecoin issuers like Circle and Paxos support the bill, believing it will enhance market confidence. However, there are also concerns that excessive regulation could stifle innovation.

Expert opinion: Jeremy Siegel, an economics professor at Harvard University, believes that the bill is a good start but still needs further improvement. He suggests strengthening regulation of algorithmic stablecoins and clarifying the capital requirements for stablecoin issuers. Goldman Sachs analysts, on the other hand, believe that the bill will drive institutional investors into the crypto market.

3. Federal Reserve Chairman Powell again calls for fiscal policy reform

In the latest congressional hearing, Federal Reserve Chairman Jerome Powell once again called on the U.S. government to undertake fiscal policy reforms to address the rising federal deficit and debt levels. He warned that failure to take action would have adverse effects on the economy.

Economic Background: The US economy is facing the dual pressures of high inflation and slowing growth. The annualized GDP growth rate for the first quarter of 2025 is 2.4%, below expectations. The inflation rate in April is 5.1%, well above the Federal Reserve's target level of 2%. The unemployment rate remains low at 3.5%.

Important event: Powell reiterated in the congressional hearing that the U.S. federal government's fiscal deficit and debt levels have reached an unsustainable level. He urged Congress to take action and develop a feasible fiscal consolidation plan to ensure the long-term healthy development of the economy.

Market Reaction: Powell's speech has raised concerns in the market about the U.S. fiscal outlook. U.S. stocks fell that day, with the S&P 500 index dropping 0.7%. Treasury yields rose slightly. Investors are worried that an increasing fiscal deficit will lead to higher interest rates and taxes, thereby suppressing economic growth.

Expert Opinion: Jeffrey Sachs, a professor of economics at Columbia University, stated that Powell's call is correct, but implementation will face significant political resistance. He suggested that the U.S. government should simultaneously control spending and raise taxes to achieve fiscal sustainability. Goldman Sachs analysts believe that fiscal policy reform will help reduce inflationary pressures and create greater policy space for the Federal Reserve.

4. Progress has been made in the China-U.S. trade negotiations, which is expected to ease economic tensions.

The governments of China and the United States have made significant progress in the latest round of trade negotiations, reaching a preliminary consensus on six key issues. This progress is expected to ease trade tensions between the two countries and inject a boost into the global economy.

Economic Background: The US-China trade war has lasted for many years, exacerbating global economic uncertainty. In the first quarter of 2025, the annualized GDP growth rate of the United States was 2.4%, while China's GDP grew by 6.1% year-on-year, both below expectations. Global trade and investment activities have been suppressed.

Important event: The governments of China and the United States reached a preliminary consensus on six key issues including trade imbalance, non-tariff barriers, economic security, digital trade, rules of origin for products, and commercial factors during the second round of trade negotiations held in Washington, and will sign a "package" trade agreement in early July.

Market Reaction: News of progress in trade negotiations has boosted global financial markets. U.S. stocks and Asia-Pacific stock markets generally rose. The S&P 500 Index increased by 1.2%, and China's Shanghai Composite Index rose by 1.8%. The U.S. Dollar Index fell slightly. Investors expect that easing trade tensions will be beneficial for global economic growth.

Expert Opinion: Jeffrey Sachs, a professor of economics at Columbia University, stated that the trade tensions between China and the United States are one of the biggest risks facing the global economy today, and reaching an agreement would inject confidence into the global economy. Jan Hatzius, Chief Economist at Goldman Sachs, believes that a trade agreement would reduce the risk of economic recession, but attention must still be paid to other challenges such as inflationary pressures and supply chain disruptions.

5. The European Central Bank raised interest rates by 75 basis points to tackle high inflation.

To address the persistently high inflation, the European Central Bank decided to raise interest rates by 75 basis points at its latest monetary policy meeting, increasing the main rate to 3.75%. This marks the fifth consecutive rate hike by the European Central Bank, aimed at controlling inflation expectations and maintaining price stability.

Economic Background: The Eurozone economy slowed down in the first quarter of 2025, with a year-on-year GDP growth of only 0.6%. However, inflationary pressures continue to mount, with the inflation rate reaching 7.5% in April, far above the European Central Bank's target level of 2%. The labor market remains robust, with an unemployment rate of 6.8%.

Important Event: The European Central Bank decided at the monetary policy meeting on May 18 to raise the main refinancing rate by 75 basis points to 3.75%, further increasing the pace of rate hikes. At the same time, the deposit rate was raised to 3.25%, and the loan rate was raised to 4.25%.

Market reaction: European stock markets and the euro exchange rate experienced a brief decline after the European Central Bank raised interest rates. The euro to US dollar exchange rate temporarily fell to around 1.0750. However, the market reaction then calmed, as investors believed the rate hike was in line with expectations and would help curb inflation expectations.

Expert Opinion: David Folkerts-Landau, Chief Eurozone Economist at Deutsche Bank, stated that the European Central Bank's decision is correct, as inflationary pressures have exceeded expectations and decisive action is needed. He anticipates that the European Central Bank will continue to raise interest rates in the coming months. Goldman Sachs analysts believe that the rate hikes will increase the risk of an economic slowdown, but controlling inflation is the current top priority.

5. Regulation & Policy

1. The new chair of the SEC, Gary Gensler, announced a new direction for cryptocurrency regulation.

Background: Paul Atkins, the new chairman of the U.S. Securities and Exchange Commission (SEC), announced in a speech on May 19 that the cryptocurrency industry is entering a "new era." He pointed out that for many years, the crypto market has been in a gray area of SEC regulation. Under his leadership, the SEC will shift from a "law enforcement first" approach to a "rules first" regulatory strategy aimed at promoting innovation rather than stifling it.

Policy Content: Atkins has instructed the SEC's policy divisions to begin drafting rule proposals related to cryptocurrencies. He proposed three main regulatory pillars: token issuance, asset custody, and trading infrastructure, and emphasized the need for a clear regulatory framework to foster innovation. In addition, the SEC will continue to "clear obstacles" through staff-level statements.

Market Reaction: Atkins' reform vision aligns with the Trump administration's policies, providing a positive outlook for the development of the cryptocurrency industry. The market has reacted positively, with cryptocurrency prices experiencing a short-term increase. However, industry insiders also point out that crypto companies still face compliance challenges.

Expert Opinion: Cryptocurrency legal expert Jake Chervinsky stated that Atkins' remarks signify a significant shift in the SEC's attitude. He believes that the SEC has finally realized that cryptocurrency is not just an investment tool, but also an innovative technology. Regulatory agencies should create a favorable environment for its development.

2. The U.S. Senate passes a procedural motion, and the GENIUS Act enters the formal review stage.

Background: The "GENIUS Act" aims to create a federal regulatory framework for stablecoins to enhance consumer protection and positively impact the cryptocurrency market. The bill was jointly introduced by Senators Kirsten Gillibrand and Kenton Cotton, receiving bipartisan support.

Policy Content: On May 20, the U.S. Senate passed the procedural motion for the "GENIUS Act" with a vote of 66 in favor and 28 against. This means that the bill will enter the formal review stage, during which senators can propose amendments.

Market Reaction: The cryptocurrency industry has reacted positively to this. David Sacks, the White House's cryptocurrency and artificial intelligence director, commented that the passage of the bill through procedural motion is "a major victory for the cryptocurrency sector." However, some are concerned that there are loopholes in the bill that could be abused.

Expert Opinion: Cryptocurrency law expert Patrick Berarducci stated that the bill lays the foundation for stablecoin regulation but still has room for improvement. He suggested further clarifying the definition of stablecoins and enhancing the regulation of algorithmic stablecoins.

3. South Korean presidential candidate Lee Jae-myung promises to promote the listing of cryptocurrency ETFs.

Background: Lee Jae-myung, the leader of the Democratic Party of Korea and presidential candidate, has proposed a series of crypto-friendly policies. This marks his first time introducing cryptocurrency-related policies during his campaign, aimed at creating a safer investment environment for young people in South Korea.

Policy Content: Lee Jae-myung promised that if elected president, he would promote the listing of spot cryptocurrency ETFs and introduce more investor-friendly cryptocurrency policies. He also advocated for the development of the stablecoin market, allowing institutional investments in crypto assets, such as national pension funds.

Market Response: Korean cryptocurrency investors have welcomed this policy. Industry insiders believe that the listing of cryptocurrency ETFs will provide institutional investors with more convenient investment channels, which will help promote the mainstream adoption of cryptocurrency.

Expert Opinion: Financial technology expert Park Si-young stated that the listing of cryptocurrency ETFs will provide investors with a more diversified range of investment options. However, he also reminded that regulatory authorities need to establish corresponding investor protection measures to guard against potential risks.