Headlines
▌US Congress releases draft for discussion of cryptocurrency market structure
According to Eleanor Terrett, cryptocurrency journalist, Tim Scott, Chairman of the US Senate Banking Committee, Senator Cynthia Lummis, Senator Bill Hagerty and Senator Bernie Moreno jointly released the long-awaited draft for discussion of crypto market structure. The draft was originally scheduled to be released last week, but was postponed due to internal disputes in the House of Representatives. Based on the passed House CLARITY Act and the Lummis-Gillibrand Act, the draft proposes new regulations in the fields of token classification, regulatory decentralization, banking, information disclosure, illegal finance, etc.
▌US SEC approves conversion of Bitwise 10 Crypto Index Fund into ETF
The U.S. Securities and Exchange Commission (SEC) approved the conversion of the Bitwise 10 Crypto Index Fund into an ETF, covering assets including BTC, ETH, XRP, SOL, ADA, SUI, LINK, AVAX, LTC, and DOT.
Market
As of press time, according to CoinGecko data:
BTC price is $120,120, up or down +2.2% in 24 hours;
ETH price is $3,743.54, up or down -0.7% in 24 hours;
BNB price is $784.42, up or down +2.5% in 24 hours;
Policy
▌Powell did not comment on the economic or monetary policy outlook in his speech
Federal Reserve Chairman Powell said that the Federal Reserve is a dynamic institution that is willing to listen to new ideas and feedback on how to improve the capital framework of large banks. Powell did not comment on the economic or monetary policy outlook in his speech.
▌Trump: The U.S. Department of Justice should investigate former President Obama
According to CCTV News, U.S. President Trump said on the 22nd that after the intelligence department disclosed that the Obama administration had forged Trump's "Russian collusion" materials, the Department of Justice should directly target former President Obama. When Trump was asked about the Epstein case at the White House that day, he quickly turned to topics such as Obama, Democrat Hillary Clinton, and the investigation into whether Russia interfered in the 2016 U.S. election.
Blockchain Applications
▌UK OFSI: Domestic crypto companies may have underreported sanctions violations and face North Korean hacker attacks
The UK Office of Financial Sanctions Implementation (OFSI) issued a report stating that since 2022, UK crypto asset companies are likely to have underreported violations of financial sanctions, and most of the violations occurred unintentionally, involving direct or indirect transactions with sanctioned individuals or entities. From August 2022, suspected sanctions violations must be reported to OFSI. The report shows that since 2022, more than 7% of suspected violations reported to OFSI involve crypto asset companies. The report also warns that UK crypto companies face a high risk of attacks from North Korean hackers, who often act on behalf of sanctioned parties. Since the outbreak of the Russia-Ukraine conflict in 2022, the UK and many other countries have clearly extended the scope of sanctions to the cryptocurrency field. Currently, there are 55 crypto companies registered with the Financial Conduct Authority in the UK, but the specific number of companies that violated the rules has not been disclosed.
▌Polymarket is reportedly considering issuing its own stablecoin to control the platform's USDC reserve income
According to people familiar with the matter, the crypto prediction market platform Polymarket is evaluating the possibility of launching its own stablecoin in order to control the income from the high reserve funds supported by Circle's USDC. At present, the platform has not made a final decision and is also weighing the option of reaching a revenue-sharing agreement with Circle. Since the Polymarket ecosystem is closed, it only needs to realize the exchange between USDC and its customized stablecoin, without having to face the compliance difficulties of "deposit and withdrawal", making the issuance of stablecoins more feasible in terms of technology and regulation. With the recent passage of stablecoin-related legislation in the United States, the issuance of stablecoins has become a new profit point in the eyes of crypto companies and traditional financial institutions. During the US election last year, the Polymarket platform bet as much as $8 billion, and the number of visits in May reached 15.9 million times. The company is currently returning to the U.S. market by acquiring the U.S. exchange QCEX. Previously, Polymarket was subject to civil and criminal investigations for allowing U.S. users to place bets, and the case has now been closed.
▌The U.S. FBI ends its investigation into the founder of Kraken and returns the seized equipment
According to market news, the U.S. Federal Bureau of Investigation (FBI) has ended its investigation into the founder of Kraken and returned the seized equipment to him.
▌Consensys plans to lay off 49 employees, accounting for about 7% of the total number of employees
According to Bloomberg, Consensys, a software company founded by Ethereum co-founder Joseph Rubin, currently plans to lay off 49 employees, accounting for about 7% of the total number of employees. A company spokesperson said the reorganization was intended to drive overall profitability. Consensys recently acquired a startup with about 30 employees, who will remain with the company. At the same time, the company still plans to continue hiring for other positions. Consensys' largest office is in Brooklyn.
Cryptocurrency
▌Ethereum staking flows accelerate, with exit and entry funds rising to highs of about $2 billion and $1.3 billion, respectively
Affected by Ethereum's rise of more than 160% since April, ETH stakers have seen a large-scale cashing-out wave, with the number of validators exiting the queue climbing to 519,000 ETH, worth about $1.92 billion, and the queue time exceeding 9 days, the highest level since January 2024. At the same time, the high enthusiasm of institutional staking has driven the number of ETH entry queues to climb to 357,000, worth about $1.3 billion, and the queue time exceeding 6 days, the longest since April 2024. Since companies such as Sharplink Gaming switched to the ETH vault strategy in May, the demand for staking has increased significantly. Analysis shows that exits are mainly driven by early stakers taking profits; while entry is boosted by the regulatory benefits after the SEC clarified on May 29 that "staking does not violate securities laws." As of now, the number of active validators on Ethereum has exceeded 1.09 million, an increase of more than 54,000 since the end of May. Andy Cronk, co-founder of Figment, said that institutional staking commissions have increased by more than 100%, and the queue time for validators has increased by more than 360%, which is consistent with the rise in ETH prices.
▌"Cathie Wood" invests in Ethereum asset management company BitMine
Ark Investment Management, managed by "Cathie Wood" Cathie Wood, subscribed to approximately 4.77 million shares of Bitcoin mining company BitMine, worth $182 million, and will be allocated to three funds. According to a statement from BitMine, the proceeds from the sale will be used to purchase Ethereum. BitMine has recently turned to asset management strategies related to Ethereum. 21Shares submits S-1 application for ONDO ETF According to market news, 21Shares submitted S-1 application for ONDO ETF to the US SEC. Important economic dynamics Trump talks about Powell: He will be out soon anyway U.S. President Trump said that he will be out soon anyway. Interest rates are too high, which is affecting the housing market. This year, Trump has repeatedly criticized Powell and threatened to remove him from his position as chairman of the Federal Reserve to pressure the Fed to cut interest rates. Recently, the Trump administration has frequently mentioned that the Federal Reserve spent $2.5 billion to renovate the office building and the "cost overruns", "forcing the palace" on Powell.
▌U.S. Treasury Secretary: The Fed should cut interest rates now
U.S. Treasury Secretary Benson: The Fed should cut interest rates now. The Fed has seen a major "mission expansion", resulting in high government spending.
▌Federal Reserve Board Member Bowman: The Fed's independence in monetary policy is very important
Federal Reserve Board Member Bowman said on Tuesday that the Fed's ability to formulate monetary policy without political interference is "very important." "It's very important for us to be independent in monetary policy, but as part of that independence, we also have an obligation to be transparent and accountable," Bowman told CNBC. "In my opinion, we have an obligation to listen to a variety of voices and understand how others view the economy and how that affects our decisions in monetary policy."
▌SpaceX warns investors: Musk may return to U.S. politics
The media reported, citing SpaceX documents and people familiar with the matter, that Musk, who previously served as a senior adviser to Trump, may return to U.S. politics. The documents show that Musk may hold a similar position to his previous one and will devote a lot of time and energy. The company included wording listing such "risk factors" in documents sent to investors to discuss the acquisition offer. Some of them said that this is believed to be the first time such wording has appeared in these acquisition offers.
Golden Encyclopedia
▌What role do gold, oil, and BTC play in US reserves?
The US government has long relied on gold and oil as reserve assets, but with the growing popularity of Bitcoin among institutions, its potential role as a strategic reserve has been greatly enhanced. While gold has historically been the backstop of the monetary system and oil remains an important economic and security asset, Bitcoin represents a new type of digital reserve that challenges the traditional financial paradigm. The United States has large gold and oil reserves, but its Bitcoin holdings are relatively small, mainly acquired through asset seizures. Gold, oil, and Bitcoin each exhibit unique liquidity and market dynamics, with gold being the most stable, oil driven by geopolitical factors, and Bitcoin characterized by high volatility and 24/7 accessibility. Gold, oil, and Bitcoin all play strategic roles in the global economy, with gold being a hedging tool and oil affecting geopolitical stability. All of these assets have strategic and macroeconomic significance over time. Their narratives related to the broader capital markets may be just what is needed to attract investor interest. As institutional adoption grows, Bitcoin’s strategic value as a hedge against inflation and government debt is increasingly recognized. Policy initiatives suggest that building strategic Bitcoin reserves could allow it to take on traditional assets such as gold and oil in the future.
Alex
Joy
Davin
Brian
Weiliang
Miyuki