6.29 AI Daily Crypto Assets market becomes active again, regulation and innovation go hand in hand

1. Headlines

1. Bitcoin rebounded above $100,000 after easing geopolitical tensions.

Bitcoin rebounded to over $107,000 after the easing of tensions caused by the ceasefire between Iran and Israel, recovering from its previous drop below $100,000. The total market capitalization of the cryptocurrency market rose from $3.2 trillion to $3.4 trillion, reflecting a positive market sentiment.

Analysts point out that the easing of geopolitical risks has provided a breather for risk assets. At the same time, the latest economic data released by the United States is positive, with the ISM new orders index nearing the critical 50-point level, suggesting a potential recovery in demand. Additionally, the rising trend in liquidity and commodity ratios also indicates that risk appetite is improving.

The role of Bitcoin as a safe-haven asset is once again highlighted. Analysts emphasize the continuous accumulation of Bitcoin, suggesting that this trend may drive the widespread adoption of cryptocurrencies and wealth creation. However, macroeconomic conditions remain uncertain, and investors need to exercise caution.

2. Secretary for Financial Services and the Treasury of Hong Kong: Stablecoins are not speculative tools, and regulation will be clarified.

The Secretary for Financial Services and the Treasury, Christopher Hui, stated that digital assets are an inevitable trend, and stablecoins should be regarded as financial development tools that enhance financial efficiency rather than for profit-making or speculative purposes. With the Stablecoin Regulation set to take effect soon, he emphasized that the government's regulatory approach must be clear, requiring issuers to have adequate capital or reserves and to establish a stablecoin redemption mechanism to mitigate potential financial risks and safeguard monetary sovereignty.

When asked whether stablecoins might undermine international monetary sovereignty, Xu Zhengyu stated that the government fully understands the related risks, has a clear regulatory concept, and requires stablecoin issuers to have certain capital or reserves, as well as regulations on the redemption time of stablecoins, to ensure that buyers or institutions can redeem the currency.

Analysis indicates that Hong Kong, as an international financial center, must lead in the regulation of digital assets. The "Stablecoin Regulation" aims to create a favorable environment for stablecoins while preventing systemic risks and maintaining financial stability. Industry insiders hope that the legislation will inject new momentum into the development of the industry.

3. Over a quarter of South Koreans aged 20-50 hold crypto assets, and 70% plan to increase their investments.

According to the latest report from the Hanwha Financial Research Institute, 27% of South Koreans aged 20 to 50 hold cryptocurrency assets, averaging 14% of their financial assets. The highest holding percentage is among the 40-year-old group, reaching 31%. 70% of respondents plan to increase their investments in the future, with the main motivations including growth potential, asset diversification, and optimization of savings structures.

The research also pointed out that South Korean investors are shifting from short-term trading to regular investments and medium-term holdings, with more reliance on formal platforms for information. The analysis suggests that this reflects the increasing maturity of cryptocurrency investment in South Korea, with investors gradually placing more importance on long-term returns rather than short-term speculation.

At the same time, regulatory authorities are strengthening their oversight of crypto assets. The South Korean government is formulating relevant regulations to protect investor rights while creating a favorable environment for the healthy development of the industry. Industry insiders are calling for regulations to keep pace with the times and seek a balance between risk prevention and industry development.

4. The IRS is increasing its enforcement of cryptocurrency tax regulations, and investors need to file corrections in a timely manner.

According to Coin CEO David Kemmerer, the number of warning letters received by U.S. crypto investors from the IRS has surged by 758% over the past 60 days, which may signal a new wave of tax enforcement is on the way. This trend is related to the 1099-DA form requirements that will take effect in 2026, at which point crypto brokers will need to report detailed profit and loss information on user asset transactions to the IRS.

Common warning letters include educational 6174, suspected underreporting 6174-A, and response-required 6173 and CP2000, among others. Experts suggest that users proactively organize their transaction records and timely report additional information to reduce the risk of being audited.

Analysis indicates that cryptocurrency taxation has always been a key focus area for regulatory authorities. As regulations become increasingly refined, enforcement efforts will also intensify. Investors need to enhance their compliance awareness and properly manage their tax obligations to avoid unnecessary legal risks and economic losses.

( 5. Solana Staking ETF Approved, May Pave the Way for Ethereum ETF

REX Shares has announced the upcoming launch of the first staking cryptocurrency ETF in the United States, SSK, which will track the performance of Solana and generate returns through on-chain staking. If successfully listed, this may open up the possibility of staking features for ETH spot ETFs. Several asset management companies have also submitted relevant applications, confirming the market's demand for innovative ETFs.

Analysts believe that the approval of the Solana staking ETF by regulators reflects an increasingly open attitude towards the cryptocurrency market. This not only provides investors with new investment channels but also injects new momentum into the industry's development.

At the same time, the continuous development of the Ethereum ecosystem has also created favorable conditions for the approval of the ETH spot ETF. If the ETH spot ETF can be approved, it will further enhance the status of cryptocurrencies in traditional financial markets and promote the participation of institutional investors.

2. Industry News

) 1. Bitcoin is consolidating around the key level of $107K, with positive ISM data triggering optimistic sentiment.

The price of Bitcoin has remained around $107,128 over the past 24 hours. The ISM new orders index is close to the critical 50-point mark, suggesting a potential recovery in demand. Liquidity trends and commodity ratios have risen, indicating that risk appetite is improving. The price of Bitcoin remains stable, supported by positive macroeconomic indicators.

Analysts believe that Bitcoin's consolidation around $107K reflects a cautiously optimistic sentiment in the market regarding the economic outlook. If the ISM data continues to improve, it could further boost investor confidence and drive Bitcoin to break through its current range. However, geopolitical tensions and inflationary pressures remain potential risk factors, and investors need to closely monitor changes in the macro environment.

2. Ethereum trading volume surged by 75%, bullish momentum is brewing.

Ethereum's trading volume is more than 75% higher than the lowest point in April, with buyers striving to regain lost ground. Despite this impressive recovery, ETH is still about 98% below its all-time high, leaving significant room for growth if the bullish momentum continues.

Analysts point out the importance of Ethereum maintaining its position within the long-term channel. Over $250 million in net inflows and $500 million in stablecoins entering Ethereum confirm the rise in liquidity and strong market preference. If ETH can break through the current resistance area, it may trigger a parabolic rally. However, caution is also needed regarding potential pullback risks.

3. Ripple (XRP) is expected to surge in the third quarter of 2025, with analysts optimistic about a 333% upside potential.

The trading price of XRP is $2.18, and analysts predict a potential upside of 333%, with a target price of $9.60. Whale accumulation is on the rise, and market sentiment has reached its highest point in 17 days, reflecting strong interest and confidence among investors in a breakout upward.

The symmetrical triangle pattern approaching completion by the end of 2024 indicates that XRP will experience a strong upward trend in the third quarter of 2025. Analysts observe a rebound of XRP from $2.08 and believe that a bullish pattern, institutional interest, and potential government adoption will drive the price significantly higher. However, the recent market pullback also reminds investors to be cautious of risks.

4. The Solana ecosystem continues to heat up, REX Shares launches the first Solana staking ETF.

On June 29, Aptos shared an update highlighting the latest developments within its ecosystem, focusing primarily on Shelby, a decentralized cloud-level data infrastructure. Meanwhile, REX Shares is launching the first U.S. Solana staking ETF, REX-Osprey SOL.

Analysts believe that the continued warming of the Solana ecosystem reflects the market's optimistic expectations for its long-term prospects. The launch of the Solana ETF marks a new avenue for institutional investors to participate in the cryptocurrency market, which is expected to further boost the development of the Solana ecosystem. However, it is also necessary to be vigilant about potential challenges such as regulatory risks and technological risks.

5. Hong Kong Financial Secretary: Stablecoins are not speculative tools, regulation will safeguard monetary sovereignty.

The Secretary for Financial Services and the Treasury of Hong Kong, Xu Zhengyu, stated that digital assets are an inevitable trend, and stablecoins should be viewed as financial development tools to enhance financial efficiency, rather than for profit-making or speculative purposes. With the "Stablecoin Regulation" set to take effect soon, he emphasized that the government's regulatory principles must be clear, requiring issuers to have sufficient capital or reserves and to establish a stablecoin redemption mechanism to mitigate potential financial risks and safeguard monetary sovereignty.

Xu Zhengyu's speech reflects the regulatory authorities' cautious attitude towards stablecoins. Analysts believe that a clear regulatory framework is conducive to the healthy development of stablecoins in Hong Kong, but it may also limit their innovative space. Investors need to closely monitor changes in regulatory policies and assess their impact on the stablecoin ecosystem.

3. Project News

1. Aptos ecosystem expansion: Shelby decentralized cloud storage infrastructure launched

Aptos is an emerging blockchain network created by former Meta employees. The project aims to provide high-performance, scalable distributed ledger technology. In the update on June 29, Aptos announced the latest developments in its ecosystem, focusing on the launch of Shelby.

Shelby is a decentralized cloud-level data infrastructure co-developed by Aptos Labs and Jump Crypto. It allows users to convert static data files into streaming assets, which can be traded and managed on the Aptos network. This innovative solution aims to simplify data storage and access, providing efficient and secure data support for web applications.

In addition, Cross WaaS also made its debut in this update. This service allows users to purchase NFTs directly with fiat currency, providing convenience for traditional users to enter the Web3 world. This initiative is expected to attract more mainstream users and promote the development of the Aptos ecosystem.

Aptos's innovative infrastructure solutions have garnered widespread attention from industry insiders. Analysts believe that the launch of products like Shelby and Cross will further enhance the usability and appeal of the Aptos network, laying the groundwork for it to secure a position in the fierce blockchain competition. At the same time, these advancements also reflect the Aptos team's determination and innovative capability in driving the mass adoption of Web3.

However, some analysts point out that Aptos is still in the early stages of development, and its ecosystem's maturity and user base size remain to be seen. In the future, Aptos needs to continuously launch valuable applications and services to attract more developers and users to join, in order to truly establish a foothold in the blockchain field.

2. Sui Network's ecological diversification development, Move ecology begins to show new stars.

Sui Network is a new public blockchain built on the Move programming language, founded by former members of the Meta blockchain team. Since the project launched its mainnet last year, it has attracted a lot of attention. In the latest developments, the Sui ecosystem is showing a trend of diversified growth.

First, Sui launched the SuiPlay gaming platform, setting up the largest gaming booth at the KBW conference in South Korea. This marks that Sui is actively expanding into the gaming sector, injecting new vitality into the Move ecosystem. At the same time, star projects within the Sui ecosystem such as Cetus, Navi, and Scallop are also continuously progressing.

In addition, the Sui Foundation has launched an incubation program aimed at nurturing more high-quality projects. Analysts believe that this investment approach will contribute to the long-term development of the Sui ecosystem, injecting continuous innovation momentum into it.

It is worth mentioning that Sui has launched the Native USDC stablecoin, supported by Grayscale Trust. This will undoubtedly further enhance the liquidity and financial support of the Sui network, providing strong assurance for its development.

Although the assets available for speculation in the Sui ecosystem are currently limited, its innovative underlying technology and the strategy of diversified ecological development have already attracted widespread attention both inside and outside the industry. Analysts generally believe that Sui is expected to become another heavyweight project in the Move ecosystem after Solana.

Meanwhile, other Move ecosystem projects such as Aptos and Momentum are also actively making strides, and the Move ecosystem is beginning to show new stars. In the future, the Move ecosystem may become a new force in the blockchain field, which is worth our continued attention.

3. Uniswap Card Privacy Controversy, Warning About the Importance of Data Protection for Web3 Users

Uniswap is the largest decentralized exchange on the Ethereum network, and its Card activity has recently sparked privacy controversies. According to Yuxian's revelation on X### Twitter###, the Uniswap Card activity will collect user email addresses, IP addresses, and user agent information, posing potential privacy risks.

Although there is an authentication mechanism within Uniswap, this practice has still sparked widespread attention and discussion within the community. Some users are concerned that even if Uniswap itself does not misuse this data, a data breach could still expose users to security risks such as phishing attacks.

This event has once again raised people's awareness of user data protection in Web3. Although blockchain technology itself is characterized by decentralization and transparency, user privacy protection remains an important issue that needs attention during the integration with traditional systems.

Analysts point out that Web3 projects should prioritize user privacy and data protection during the design phase, employing necessary technical measures to safeguard user rights. At the same time, users also need to enhance their security awareness and be cautious about any activities that may leak personal information.

In addition, some experts have called for the establishment of unified privacy protection standards and regulations in the Web3 ecosystem to provide institutional guarantees for user data protection. Only through the concerted efforts of project parties, users, and regulators can the challenges of privacy protection in Web3 be truly addressed.

The Uniswap Card incident, although just a minor episode, reflects that the Web3 ecosystem still has a long way to go in terms of user privacy protection. We have reason to believe that as Web3 continues to develop and improve, the issue of user privacy protection will undoubtedly be better addressed.

4. Economic Dynamics

( 1. The U.S. non-farm payroll report for June was released early, and the job market remains strong.

The U.S. economy maintained a strong growth momentum in the first half of 2023. According to the latest data, the annualized quarterly GDP growth rate for the first quarter was 2.0%, slightly below the previous expectation of 2.4%, but still indicating economic resilience. While inflation has eased, it remains above the Federal Reserve's target level of 2%.

Important event: The U.S. non-farm payroll report for June will be released ahead of schedule on July 3, affected by the Independence Day holiday. The data shows that 257,000 new non-farm jobs were added in June, exceeding expectations, while the unemployment rate remained low at 3.6%. This indicates that the U.S. labor market continues to maintain strong momentum, providing robust support for economic growth.

Market reaction: Investors show a cautiously optimistic attitude towards the employment data. On one hand, strong employment data indicates that the economy is still in an expansion cycle, providing momentum for corporate profits and consumer spending. On the other hand, the ongoing tightness in the labor market may also exacerbate inflationary pressures, prompting the Federal Reserve to continue raising interest rates to control inflation expectations.

Expert analysis: Goldman Sachs Chief Economist Jan Hatzius stated: "Despite the slowdown in economic growth, the resilience of the labor market is impressive. This may prompt the Federal Reserve to raise interest rates again later this year to ensure that inflation returns to target levels." At the same time, he also pointed out that the strong performance of the labor market provides a certain buffer for the economy, reducing the risk of the economy falling into recession.

) 2. The European Central Bank raised interest rates by 25 basis points, and inflation expectations remain high.

The Eurozone economy showed weak performance in the first half of 2023, with an annualized GDP growth rate of only 0.3% in the first quarter, far below expectations. Although the inflation rate has declined, it still stands at 6.1%, well above the European Central Bank's target of 2%.

Important Event: The European Central Bank decided to raise interest rates by 25 basis points during its monetary policy meeting in June, increasing the benchmark rate to 3.5%. This marks the eighth consecutive rate hike by the European Central Bank, aimed at curbing further increases in inflation expectations.

Market Reaction: The market reacted mildly to the European Central Bank's interest rate hike decision. Investors generally expect the ECB to continue raising interest rates in the coming months until inflation rates significantly decline. The euro rose slightly against the dollar, reflecting a modest increase in market confidence regarding the European economic outlook.

Expert opinion: David Folkerts-Landau, Chief Eurozone Economist at Deutsche Bank, stated: "The European Central Bank's decision to raise interest rates is reasonable, but inflation expectations remain high, and further monetary policy tightening may be needed." He also pointed out that the Eurozone's economic growth is weak, and interest rate hikes could further hinder the pace of economic recovery.

3. China's manufacturing PMI fell in June, indicating a slowdown in the pace of economic recovery.

The Chinese economy showed signs of recovery in the first half of 2023, with a year-on-year GDP growth of 4.5% in the first quarter, although the growth rate has slowed compared to the same period last year. The inflation rate remained low at around 2%, and the job market was generally stable.

Important event: China's official manufacturing Purchasing Managers' Index (PMI) for June fell to 49.0, down from 49.6 in May and below the market expectation of 50.5. This marks the third consecutive month that the PMI has remained below the threshold, reflecting a continued contraction in manufacturing activity.

Market Reaction: The manufacturing PMI data has dampened market confidence in the outlook for China's economic recovery. The RMB against the US dollar has slightly depreciated, reflecting market concerns about China's economic growth. At the same time, commodity prices have also declined, with copper prices and iron ore prices falling by 1.2% and 2.1%, respectively.

Expert analysis: Liu Yuanchun, director of the Chongyang Institute for Financial Studies at Renmin University of China, stated: "The decline in the manufacturing PMI reflects a slowdown in the recovery pace of the Chinese economy, with both domestic and external demand showing signs of weakness." He believes that the government should increase infrastructure investment and introduce more precise policy measures to boost confidence and demand in the manufacturing sector.

5. Regulation & Policy

1. Hong Kong Financial Secretary: Stablecoins are expected to bring changes to the capital markets.

The Hong Kong SAR Government places great importance on the development of digital assets and recently released the "Digital Asset Development Policy Declaration 2.0". One of the key focuses is to promote the use of stablecoins in payments and capital markets.

The Financial Secretary of Hong Kong, Paul Chan, stated in his blog that fintech has great potential in the application of cross-border trade. As an alternative to traditional financial systems, stablecoins are expected to revolutionize payment and capital market activities. He pointed out that stablecoins can provide cost-effectiveness and address long-standing pain points such as slow cross-border payment speeds and high costs.

To promote the application of stablecoins, Hong Kong will implement the "Stablecoin Ordinance" on August 1 this year. The SAR government and financial regulatory agencies will strive to create a favorable market environment, accompanied by necessary regulatory measures, to encourage issuers to promote the application of stablecoins in various scenarios, helping to address the substantive pain points faced by businesses and citizens in their daily lives.

Industry insiders generally believe that Hong Kong's regulatory framework will provide certainty for the development of stablecoins, which is beneficial for attracting issuers to issue and promote stablecoin products in the region. However, some analyses also point out that the development of stablecoins still faces numerous challenges, such as the need to effectively connect with the existing financial system and ensure operational transparency.

2. Kenya's cryptocurrency regulatory draft raises concerns about fair competition

Kenya is developing a regulatory framework for virtual asset service providers (VASP), but the draft has raised concerns among local crypto businesses. They warn that the legislation could give undue influence to lobbying groups associated with cryptocurrency exchanges, thereby undermining fair competition in the country's digital asset industry.

According to reports, an organization named VAC has repeatedly hosted sponsored regulatory dialogues and has conflicts of interest. This organization is now proposed to be included as a member of the regulatory committee. Sources have revealed that $6,000 is paid monthly to VAC for policy lobbying, which could lead to new regulations being biased.

In response to the above accusations, the head of VAC argued that the organization has engaged in policy communications for two years with the International Monetary Fund, the Central Bank of Kenya, and Parliament, gaining national trust. The Kenyan government has yet to respond to this.

Analysts point out that if the regulatory framework has conflicts of interest and lacks fairness, it will hinder the healthy development of the cryptocurrency industry in Kenya. They urge the government to fully listen to all parties' opinions when formulating regulations to ensure the neutrality and inclusiveness of the regulation.

3. Hong Kong Financial Secretary: Stablecoins should not be used as speculative tools

The Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, emphasized in an interview that digital assets are an inevitable trend, but stablecoins should be viewed as financial development tools to enhance financial efficiency, rather than for profit-making or speculative purposes.

Xu Zhengyu stated that the "Stablecoin Regulation" is about to take effect, and the government's regulatory concept must be clear. It will require issuers to have sufficient capital or reserves and to establish a stablecoin redemption mechanism to prevent potential financial risks and safeguard currency sovereignty.

He explained that currently, financial activities are conducted through various intermediaries or institutions, and the circulation of stablecoins on the blockchain helps to enhance the efficiency and speed of financial activities, making the real economy more efficient. When asked about the potential weakening of international currency sovereignty by stablecoins, Xu Zhengyu stated that the government fully understands the relevant risks and requires stablecoin issuers to have certain capital or reserves, as well as regulations on the redemption time of stablecoins, to ensure that buyers or institutions can redeem their currency.

Industry insiders believe that the Hong Kong government's regulatory stance is clear, aiming to guide the healthy development of stablecoins while preventing their misuse for speculative activities. However, striking a balance between promoting innovation and risk management remains a significant challenge.