8.19 AI Daily Report: New Regulations on US Stablecoins Lead to the Globalization of Digital Dollar

1. Headlines

1. U.S. Treasury Secretary Yellen: Stablecoins will expand the global use of the dollar and boost demand for U.S. Treasury bonds.

U.S. Treasury Secretary Basant stated that implementing the GENIUS Act is crucial for ensuring America’s leadership in the digital asset space. Stablecoins will expand the channels for the use of dollars globally by billions and lead to a surge in demand for U.S. Treasury bonds.

Since the passage of the GENIUS Act in July, the supply of yield-bearing stablecoins has surged. The Act provides regulatory certainty and compliance pathways for stablecoin issuers, which is conducive to attracting more institutional participation. Stablecoin issuers are required to hold high-quality bonds such as U.S. Treasuries as reserve assets, which will increase the demand for Treasuries.

Analysts point out that the development of stablecoins will further consolidate the global dominance of the US dollar. Stablecoins provide global users with an efficient and low-cost channel for using the dollar, helping to maintain the dollar's influence in the digital economy era. At the same time, the establishment of a regulatory framework for stablecoins will also promote fintech innovation in the United States, attracting more digital asset companies to develop in the US.

However, the rapid development of stablecoins has also attracted the attention of regulatory agencies. Some people are concerned that stablecoins may undermine the traditional banking system and affect the transmission of monetary policy. Therefore, finding a balance between promoting innovation and preventing risks will be a key focus of future regulation.

2. Bitcoin mining giant Strategy invests an additional $51.4 million to acquire 430 BTC

Bitcoin corporate whale strikes again. According to the latest disclosure, Strategy, led by Michael Saylor, spent $51.4 million to acquire 430 BTC on August 18, at an average price of approximately $119,666. This acquisition brings its total holdings to 629,376 BTC, accounting for nearly 3% of the total Bitcoin supply.

Strategy is the world's largest publicly listed holder of Bitcoin. The company adheres to a "buy and hold" strategy, continuously increasing its Bitcoin holdings as its main corporate asset. Analysts believe that this move reflects the company's firm confidence in the long-term value of Bitcoin.

The price of Bitcoin has experienced significant fluctuations this year. The continuous buying behavior of Strategy helps boost market confidence and attract more institutional funds. Meanwhile, some analysts believe that the large-scale purchases by Strategy may drive up the price of Bitcoin and intensify volatility.

Overall, Strategy's approach represents institutional investors' optimistic expectations for Bitcoin's long-term prospects. As regulations become increasingly clear, Bitcoin may gain broader institutional recognition and funding support. However, at the same time, its price volatility may also further intensify.

3. Ethereum Treasury Company Mine: The ETH short position is the purchasing power of the "future".

The Ethereum treasury company Mine tweeted that a large number of short positions on ETH represent "future" purchasing power. This statement has sparked widespread attention and discussion.

Recently, the price of Ethereum has been continuously rising, attracting a large amount of short funds to enter the market. Data shows that the short positions in the Ethereum futures and options market are at historical highs. Some investors are shorting Ethereum to seek short-term profits.

Mine believes that these short positions actually represent future purchasing power. When the shorts are forced to close their positions, it will drive the price of Ethereum further up. Meanwhile, as the Ethereum ecosystem continues to develop, its long-term value will continue to stand out, and the shorts will ultimately be proven wrong by the market.

However, some analysts remain cautious about this. They believe that excessive optimism may exacerbate irrational behavior among investors, leading to larger price fluctuations. At the same time, Ethereum still faces many challenges in terms of scalability and usability, and its long-term value remains to be tested by time.

Overall, the future direction of Ethereum short positions will depend on technological developments and market sentiment. Investors need to remain rational and carefully assess the market situation, rather than blindly following the trend.

4. India's largest crypto exchange receives court approval to resume trading

India's largest cryptocurrency exchange is on the verge of resuming trading, currently awaiting court approval after a restructuring plan has progressed smoothly. The restructuring plan received overwhelming support, with 95.7% of voting creditors casting their votes in favor, marking a crucial step in addressing the aftermath of the hacking incident in July 2024.

The hacker attack at that time resulted in the theft of $235 million, a significant portion of which flowed to North Korea. After the incident was exposed, it faced strict regulation from the Indian government and was ordered to cease all trading activities.

If the court ultimately approves the restructuring plan, normal operations can be restored. This will not only rescue the exchange and its users, but also inject a shot of adrenaline into the Indian cryptocurrency market.

Analysts point out that this incident highlights the importance of security construction in cryptocurrency exchanges. In the future, Indian regulatory authorities are expected to introduce stricter security compliance requirements to protect investors' interests. At the same time, cryptocurrency exchanges also need to increase investment to improve their risk resistance capabilities.

Overall, the event will accelerate the improvement of cryptocurrency regulation in India, which is beneficial for the long-term healthy development of the industry. However, this process may bring some growing pains to certain exchanges.

5. The U.S. SEC has once again postponed its decision on the approval of multiple cryptocurrency ETF products.

The U.S. Securities and Exchange Commission ( SEC ) has once again postponed its decision on the approval of multiple cryptocurrency ETF products, including the Bitcoin and Ethereum ETFs applied for by Truth Social, a social platform under Trump Media. According to the latest documents, the SEC has extended the approval deadline to late October.

The SEC stated that it needs more time to fully assess the proposal and related issues. This is not the first time the SEC has delayed the approval of a crypto ETF. Since 2021, the SEC has been cautious about crypto ETFs, primarily concerned about the volatility of crypto assets and the risk of manipulation.

The products that have been postponed include the Litecoin and Ripple ETFs under CoinShares, as well as the Ripple ETF from 21Shares. If approved, these products will become the first cryptocurrency ETFs listed in the United States.

Analysts believe that the SEC's cautious attitude reflects the regulatory body's uncertainty regarding crypto assets. On one hand, the listing of a crypto ETF would facilitate the entry of institutional funds and promote industry development; on the other hand, it may also exacerbate speculative trading, bringing new risk hazards.

Overall, the launch of cryptocurrency ETF products will still be a long process. Investors need to be patient until regulations are clarified. Meanwhile, the entire industry should strengthen self-discipline to lay the foundation for the trust of regulatory agencies.

2. Industry News

1. Bitcoin is under short-term pressure, with geopolitical tensions causing market fluctuations.

The price of Bitcoin has slightly fallen in the past 24 hours, reaching a low of $114,400. Analysts point out that this dip is mainly influenced by geopolitical situations. Russian President Putin and Ukrainian President Zelensky will hold talks this Friday, and the market is concerned about the outcomes of the negotiations.

Geopolitical risks have intensified, leading to a cautious shift in investor sentiment and a rise in demand for safe-haven assets. Bitcoin, as a risk asset, may face some pressure in the short term. However, analysts believe that if talks yield positive progress, it could alleviate geopolitical tensions, thereby boosting risk appetite and creating an opportunity for Bitcoin to rebound.

On the other hand, the Bitcoin futures market sentiment index has dropped below the neutral range of 36%, indicating a relatively balanced power between bulls and bears. Analysts state that when the index remains below 45-50%, a rebound may trigger sell-offs, and prices tend to fluctuate within a narrow range. Therefore, investors need to closely monitor the progress of significant events and carefully manage position risk.

2. Institutional funds flow out of Ethereum, ETH faces short-term pressure.

Ethereum has fallen over 2% in the past 24 hours, dropping below the $4300 mark. Data shows that nearly $200 million was net withdrawn from the US Ethereum spot ETF yesterday, becoming a major driver of ETH's decline.

Analysts point out that the outflow of institutional funds reflects investors' concerns about the short-term prospects of ETH. Although the Ethereum ecosystem continues to develop, there has been a lack of positive catalysts recently, coupled with increased uncertainty in the macro environment, leading institutional investors to adopt a wait-and-see approach.

However, in the long run, Ethereum still has broad development prospects. With the continuous advancement of Ethereum 2.0 and the ongoing innovation of applications such as DeFi and NFTs, ETH is expected to regain upward momentum. Analysts suggest that investors pay attention to the key support level of ETH at $4180; if it breaks below this level, there is a risk of further pullback.

3. The Solana ecosystem continues to heat up, with SOL short-term trends diverging.

The Solana ecosystem continues to heat up, but the short-term trend of the native token SOL has shown divergence. Data shows that the native token LIGHT of the Solana ecosystem token Heaven has a market capitalization exceeding $200 million, reaching a historic high. Meanwhile, SOL itself has seen a slight decline, briefly falling below the $180 mark.

Analysts believe that the activity of Solana's ecosystem tokens reflects investors' enthusiasm and expectations for the ecosystem. As the Solana ecosystem continues to expand, attracting more innovative projects, the ecosystem tokens naturally gain favor with funding.

However, the performance of SOL itself has been somewhat suppressed. Analysts point out that as a public chain token, the price trend of SOL is more affected by the macro environment. In the current uncertain market environment, investors remain cautious towards risk assets, making it difficult for SOL to make significant moves in the short term. However, in the long run, with the continuous development of the Solana ecosystem, SOL is expected to gain more premium.

4. The altcoin market is diversifying, with PUMP dominating.

The altcoin market has shown a divergent trend. Data shows that the market share of PUMP has once again exceeded 80%, with a market capitalization of approximately $3.1 billion. Meanwhile, other popular altcoins such as BONK and PEPE have experienced varying degrees of correction.

Analysts indicate that the reason PUMP coin is able to dominate is primarily due to its strong community marketing capabilities. The PUMP team has effectively maintained community engagement by continuously launching new activities and application scenarios, thereby attracting more capital inflow.

At the same time, other altcoins are facing challenges in their lifecycle. Some altcoins that were once highly sought after are experiencing a decline in interest, leading to capital withdrawal and a drop in prices. Analysts remind investors that the altcoin market is highly speculative and requires careful risk management.

5. Regulatory agencies delay approval of crypto ETFs, raising market attention.

The U.S. Securities and Exchange Commission ( SEC ) has delayed its decision on the approval of multiple cryptocurrency ETF applications, involving mainstream cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and XRP. This decision has attracted widespread attention from the market.

Analysts believe that the SEC's decision to delay approval reflects the regulatory body's cautious attitude towards the crypto market. Despite the growing recognition of cryptocurrencies, regulators are still weighing the risks and benefits to protect investors' interests.

However, analysts also point out that the launch of cryptocurrency ETFs is expected to further drive institutional funds into the market, thereby bringing new growth momentum to the cryptocurrency market. Therefore, investors need to closely monitor regulatory developments and seize potential investment opportunities.

Overall, the cryptocurrency market has experienced some fluctuations in the past 24 hours, with varying performances among mainstream coins. Investors need to carefully assess risks, pay attention to the impact of significant events, and remain patient while waiting for further clarity on market trends.

3. Project News

1. Sui Network: The new star of the Move ecosystem accelerates its rise.

Sui Network is a brand new blockchain project created by engineers who have previously worked on the development of Ethereum and Diem. This project is built on the Move programming language and aims to provide high-performance, low-cost distributed applications.

Latest news: Sui Network has recently officially launched its mainnet and introduced its first batch of DApp products. These include the decentralized exchange Cetus, NFT marketplace, decentralized lending protocol Navi, and more. These applications showcase Sui's advantages in scalability, security, and developer friendliness. At the same time, Sui has also partnered with Grayscale Trust to launch stablecoins such as USDC on its platform.

Market Impact: As a rising star project in the Move ecosystem, the emergence of Sui will inject new vitality into the entire ecosystem. Its high performance and low-cost features are expected to attract more developers and users, promoting the vigorous development of the Move ecosystem. In addition, Sui's collaboration with Grayscale Trust will also bring liquidity support, which is beneficial for ecological construction.

Industry feedback: Cryptocurrency analyst Liam Samus stated: "The emergence of Sui has brought new options to the Move ecosystem, and its technological advantages and ecological layout are worth paying attention to. If Sui can continue to launch high-quality applications, it is expected to become a leader in the Move ecosystem."

2. Aptos: The previous metaverse project transitions to the Move ecosystem

Aptos is an emerging blockchain project created by former employees of Meta(Facebook). The project is built on the Move programming language, aiming to provide high-performance, secure, and easy-to-use blockchain infrastructure.

Latest Updates: Aptos has officially launched its mainnet recently and introduced its first batch of DApp products. These include the decentralized exchange AptosSwap and the NFT marketplace Topaz. These applications showcase Aptos's advantages in transaction speed, scalability, and developer friendliness. Meanwhile, the Aptos Foundation has also announced that it will invest a significant amount of funds to support ecosystem development.

Market Impact: As an emerging force in the Move ecosystem, Aptos's entry will further promote the development of this ecosystem. Its outstanding performance and financial support are expected to attract more developers and users to join. In addition, the background experience of the Aptos team members will inject new vitality into the project.

Industry feedback: Crypto analyst Tascha stated: "The Aptos team has rich experience from large companies and possesses unique insights into building high-performance blockchain systems. If Aptos can fully leverage its advantages, it is expected to secure a place in the Move ecosystem."

3. Movement: Move the first public chain project of the ecosystem has launched

Movement is a brand new blockchain project aimed at providing public chain-level infrastructure for the Move ecosystem. The project is led by the founder of the Move language, possessing originality and authority.

Latest Updates: Movement recently announced the launch of its token issuance plan, which will issue a total of 1 billion MOVE tokens in phases. Of this, 70% will be allocated to the ICO camp, and 30% will be allocated to the airdrop camp. Movement has also set a total deposit cap of $100 million, and the progress has now reached halfway.

Market Impact: As the first public chain project in the Move ecosystem, the launch of Movement will bring new development opportunities to the entire ecosystem. Its public chain architecture is expected to solve liquidity and interoperability issues within the Move ecosystem, providing support for more applications. In addition, Movement's token issuance plan will also inject new funding dynamics into the ecosystem.

Industry Feedback: The crypto analyst CryptoRank stated: "Movement, as the original project of the Move language, has undeniable credibility and technical strength. If Movement can successfully advance the construction of the public chain, it is expected to become an indispensable infrastructure within the Move ecosystem."

4. Economic Dynamics

1. The Federal Reserve faces pressure to cut interest rates as inflation and employment data diverge.

Economic Background: The US economy showed weakness in the first half of 2025, with the annualized GDP growth rate in the second quarter at only 1.2%, far below expectations. Although the inflation rate has eased, it remains above the Federal Reserve's target level of 2%. The labor market has shown signs of differentiation, with the unemployment rate rising slightly to 4.3%, but wage growth remains strong.

Important Event: The Federal Reserve will deliver an important speech at the Jackson Hole Annual Economic Policy Symposium on August 25. The market widely expects Fed Chairman Powell to hint at a 25 basis point interest rate cut in September. This will be the first rate cut since 2023, aimed at alleviating the pressures of economic slowdown.

Market reaction: Investors have divergent expectations regarding Powell's speech. Some believe Powell will maintain a hawkish stance and continue to raise interest rates to curb inflation. Others expect Powell to shift to a dovish position and initiate a rate-cutting cycle to stimulate economic growth. This divergence has led to increased volatility in the financial markets.

Expert Opinion: Goldman Sachs Chief Economist Jan Hatzius stated that the Federal Reserve faces a difficult choice. If they cut interest rates too early, it may lead to inflation spiraling out of control; but if they continue to raise rates, it could exacerbate the risk of economic recession. He expects the Fed to cut rates by 25 basis points in September and another 50 basis points by the end of the year.

2. The pace of China's economic recovery is accelerating, and the policy力度 is continuously increasing.

Economic Background: The Chinese economy is gradually recovering in the first half of 2025, with GDP growing 4.5% year-on-year in the second quarter, exceeding market expectations. Industrial production and consumption data also show positive signals. However, the real estate industry still faces significant pressure, with investment growth remaining sluggish.

Important events: The Chinese government has recently introduced multiple policy measures aimed at further promoting economic recovery. These include increasing infrastructure investment, supporting the development of the manufacturing industry, and expanding domestic demand. Meanwhile, the People's Bank continues to implement a prudent monetary policy to maintain reasonable liquidity.

Market Reaction: The market holds a cautiously optimistic attitude towards the prospects of China's economic recovery. On one hand, the combination of policy measures is expected to boost investment and consumption demand; on the other hand, geopolitical tensions and pressures from the global economic slowdown still exist. The A-share market has rebounded under the support of favorable policies, and the RMB exchange rate remains basically stable.

Expert Opinion: Zhang Yan Sheng, a researcher at the Institute of World Economy and Politics of the Chinese Academy of Social Sciences, believes that the Chinese economy is currently in a phase of recovery growth, but the foundation is not solid. He suggests continuing to implement proactive fiscal policies and prudent monetary policies, while accelerating the advancement of supply-side structural reform to improve the quality and efficiency of economic development.

3. Eurozone inflation continues to rise, and the ECB may raise interest rates again.

Economic Background: The Eurozone economy experienced sluggish growth in the first half of 2025, with a GDP increase of only 0.1% quarter-on-quarter in the second quarter. However, inflation continued to rise, reaching a high of 8.9% in July, far exceeding the European Central Bank's target of 2%. The labor market remained robust, with the unemployment rate staying at a low of 6.6%.

Important event: After raising interest rates by 25 basis points in July, the European Central Bank will hold its next monetary policy meeting on September 14. Most analysts expect the ECB to raise interest rates again by 50 basis points to curb further increases in inflation expectations.

Market reaction: The Eurozone financial market has differing expectations regarding the ECB's interest rate hike path. Some investors believe that inflationary pressures have started to weaken, and the ECB should slow down the pace of rate hikes. However, other investors are concerned that persistently high inflation will erode the Eurozone's economic recovery momentum. The euro exchange rate has experienced increased volatility due to these differing expectations.

Expert Opinion: David Folkerts-Landau, Chief Eurozone Economist at Deutsche Bank, stated that the challenge for the European Central Bank is to curb inflation while avoiding triggering an economic recession. He expects the ECB to raise interest rates by 50 basis points in September and an additional 25 basis points before the end of the year, aiming to bring the inflation rate down to the 2% target by 2026.

5. Regulation & Policy

1. The U.S. Treasury Department has launched a consultation on the regulation of stablecoins under the "GENIUS Act".

The U.S. Department of the Treasury issued a notice on August 18, soliciting public comments on how to utilize innovative technologies to combat illegal activities related to digital assets, as required by the "Guidance and Establishment of the U.S. Stablecoin National Innovation Act" (GENIUS Act).

The "GENIUS Act" was signed into law by U.S. President Trump in July and is considered one of the first cryptocurrency-related legislations passed by a Republican-controlled Congress. The act requires stablecoins to be fully backed by U.S. dollars or equivalent liquid assets, mandates annual audits for issuers with a market capitalization exceeding $50 billion, and regulates foreign issuance.

Treasury Secretary Scott Bessent stated that stablecoins will expand the global use of the dollar, leading to a surge in demand for U.S. Treasuries that support stablecoins, which is beneficial for stablecoin users, issuers, and the Treasury. The public can submit opinions on how to use technologies such as API, artificial intelligence, digital identity verification, and blockchain monitoring to prevent illegal activities involving digital assets before October 17.

Industry insiders believe that this move aims to leverage emerging compliance technologies to lay the groundwork for the compliant issuance and regulation of stablecoins. Circle CEO Jeremy Allaire stated that this is a key step in ensuring the United States' leadership position in the digital asset space.

2. Illinois has introduced two cryptocurrency regulatory bills.

Governor JB Pritzker of Illinois recently signed the "Digital Asset and Consumer Protection Act" (SB 1797) and the "Digital Asset Self-Service Terminal Act" (SB 2319), implementing regulation on cryptocurrency exchanges and cryptocurrency ATMs.

The former authorizes state financial and professional regulatory agencies to supervise digital asset exchanges and related enterprises, requiring them to maintain adequate financial resources and implement cybersecurity measures; the latter regulates cryptocurrency ATMs, stipulating that operators must register, provide full refunds to fraud victims, ensure transaction fees do not exceed 18%, and limit new users' daily trading cap to $2,500.

Pritzker criticized the Trump administration for allowing the "crypto bros" to influence federal policy during the signing ceremony, stating that these new laws are aimed at protecting the rights of investors and consumers. Industry insiders believe that this move reflects the state government's increased regulatory efforts in the crypto space.

Coinbase's Public Policy Director Kathy Kraninger stated that Illinois' approach serves as a reference for other states and helps establish a unified regulatory framework. However, there are concerns that excessive regulation may stifle innovation.

3. Establishment of the American Innovation Project Organization to Promote Education on Cryptocurrency Policies

The non-profit organization "American Innovation Project" (AIP), supported by companies such as Coinbase and Uniswap Labs, officially launched on August 19, aiming to educate American policymakers about emerging technologies such as cryptocurrency and artificial intelligence.

The AIP initiative connects policymakers with industry experts through activities such as roundtable discussions and seminars, transforming complex technological trends into actionable understandings. The project has received support from several organizations, including Coinbase, the National Cryptocurrency Association, Paradigm, the Solana Policy Institute, and the Digital Currency Group (DCG).

AIP President Kristin Smith stated that the organization will promote the establishment of a regulatory framework that adapts to the rapidly changing technological environment. Coinbase's Head of Public Policy, Kathy Kraninger, believes that AIP will help policymakers develop informed cryptocurrency regulatory policies.

Analysts point out that the establishment of AIP comes at a time when U.S. regulatory policies are accelerating. Over the past year, the U.S. Congress has passed stablecoin regulatory legislation and cryptocurrency industry regulatory legislation, and the U.S. Securities and Exchange Commission has also launched a "crypto project" to update relevant rules.

4. The Financial Services Commission of South Korea has suspended cryptocurrency lending services.

The South Korean Financial Services Commission has requested cryptocurrency exchanges to suspend lending services to prioritize investor protection, while also committing to provide rapid regulatory guidance for the fast-growing digital asset industry.

The Chairman of the Financial Services Commission, Lee Chang-yong, stated that to prevent risks such as money laundering, only large enterprises that have customer identification systems and meet certain scales are allowed to issue stablecoins. If large non-bank enterprises are permitted to issue them, the existing bank-centered financial industry structure may undergo unknown changes, thus requiring cautious consideration.

Previously, exchanges such as Up and humb had launched lending products for USDT, BTC, XRP, and others. The Financial Services Commission will allow the extension of existing lending contracts and repayments, and will conduct on-site inspections of violating exchanges.

Industry insiders believe that this move by South Korean regulators aims to mitigate the financial risks posed by cryptocurrencies, but it may also hinder innovation in the industry. Up Exchange stated that it will actively cooperate with the regulators and looks forward to the issuance of regulatory guidelines.