Circle President: We will not compete with banks, Trump's tax reform bill is expected to pass

Golden Weekly is a weekly blockchain industry summary column launched by Golden Finance, covering the week's key news, mining information, project dynamics, technological progress and other industry dynamics. This article is the news weekly, taking you to a glance at the major events of the blockchain industry this week.

Headlines

▌Circle President: Will not compete with banks, listing is to show banks and technology companies that funds are open

Circle President and former CFTC Chairman Heath Tarbert said in a recent interview with Yahoo Finance that when Circle launched USDC in 2017-2018, it hoped to create a new basic currency layer for the Internet that can circulate at Internet speeds and make it last. As a US listed company, going public and accepting the highest standards of transparency and corporate governance requirements for Circle is an important part of itself, and it is also the next step that Circle believes is necessary. Compared with traditional financial institutions, Circle is a neutral platform that has both the compliance genes of traditional financial services and the concept of Web3. Banks are ideal partners for Circle and will not compete with banks. Going public also shows banks and technology companies that their funds are now open and they can do business with Circle in an important way with the approval of regulators.

▌Trump's tax reform bill is expected to pass the U.S. Senate, and no Republican lawmaker supports Musk

Republicans in the U.S. Congress chose to stand on Trump's side in the public dispute between Trump and Musk, which was seen as an optimistic signal that the tax reform bill will eventually pass smoothly. Most lawmakers followed Trump's instructions and firmly supported the $3 trillion bill. Musk previously threatened to help any congressional candidate who voted against the bill in the primary election, but lawmakers believed that maintaining a good relationship with the president was a safer choice for political survival. House Speaker Johnson said: "The tax reform bill is not in danger, we will definitely pass it... I tell you - don't doubt, don't question, and don't challenge President Donald Trump of the United States. He is the leader of the party and the most influential political figure of our time."

▌Trump: Will "review" Musk's government contracts

Trump said he would "review" Musk's government contracts.

▌Trump's crypto wallet dispute ends with WLFI buying Meme coins

Eric Trump, son of U.S. President Trump, said on Friday that tensions between competing factions within Trump's crypto empire have cooled, and his family's World Liberty Financial (WLFI) will purchase "large quantities" of Memecoin, which is at the center of the controversy. Eric said the company responsible for Trump Memecoin will not move forward with the issuance of digital wallets, which has led to a disagreement with World Liberty Financial, a crypto company partially owned by the Trump family.

▌Musk deletes tweets about "Trump appears in Epstein documents"

Musk has deleted the relevant breaking news tweets about "Trump appears in Epstein documents". Earlier, Musk posted, "It's time to drop the real big bomb: Trump appears in Epstein's documents. This is the real reason why these documents have not been made public. Have a good day, DJT!" Note: Epstein was indicted for sex trafficking and sexual assault on minors. He was accused of operating a sex trafficking network involving celebrities, wealthy people and politicians. He "committed suicide" in prison in 2019, and the cause of his death is still controversial, triggering a lot of conspiracy theories.

Policy

▌Europe is ready to regulate DeFi in 2026

EU crypto policy experts revealed that Europe plans to launch the development of a decentralized finance (DeFi) regulatory framework in 2026. Although the Markets in Crypto Assets Regulation (MiCA) came into effect on December 30, 2024, the regulation does not clearly define "decentralization", resulting in a regulatory vacuum for DeFi protocols. Vyara Savova, head of policy at the European Crypto Initiative, said that the current MiCA regulations theoretically exclude "fully decentralized" protocols from regulation, but the specific criteria for determination have not yet been clarified. The EU plans to begin legally defining the concept of decentralization in mid-2026, and is currently revising regulations for specific areas such as stablecoins. It is worth noting that Marina Markezic, executive director of the European Crypto Initiative, confirmed that the MiCA II framework previously advocated by European Central Bank President Lagarde has been determined not to advance. It was also disclosed that the EU's new anti-money laundering rules for privacy coins and anonymous accounts will take effect as planned in 2027.

▌Federal Reserve Vice Chairman of Supervision Bowman: Plans to Reform and Relax Banking Supervision

The Federal Reserve's new top regulatory official Bowman has set an ambitious agenda to review and relax a number of bank rules and regulatory policies, which she believes have become too onerous and unnecessary. Bowman said the Fed will reconsider the way it makes rules and how to regulate some of the largest and most complex banks in the United States. She pointed out that a large number of rules introduced since the 2008 financial crisis deserve reconsideration. In particular, Bowman said the Fed will consider revising its ratings of large banks, noting that two-thirds of large banks are still rated unsatisfactory by Fed regulators even if they meet all capital and liquidity requirements. She said the proposed reforms would address this strange mismatch by taking a more rational approach, reducing some of the subjective rating weights of banks that have shown resilience. She also said the Fed will reconsider its rating framework for small banks to ensure that it focuses primarily on significant risks rather than supervisory judgments. Bowman also said the Fed will strictly review so-called "horizontal reviews," in which regulators conduct in-depth reviews of multiple banks on a particular issue. She believes that this approach actually causes banks to compete with each other and ignores their respective uniqueness when identifying deficiencies.

▌South Korean President Lee Jae-myung and US President Trump agreed to quickly resolve tariff negotiations

South Korean President Lee Jae-myung and US President Trump agreed to quickly resolve tariff negotiations. (Yonhap News Agency)

▌Acting Chair of the U.S. CFTC: The 24/7 derivatives trading proposal is limited to crypto assets

According to crypto journalist Eleanor Terrett, Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC) Caroline Pham said that all the public comment proposals received by the agency on 24/7 derivatives and perpetual contract trading only involve crypto asset products, not traditional commodities. In a speech this week, Pham pointed out that the CFTC believes that 24/7 trading has potential benefits, including the ability to respond to emergencies in real time on weekends, which is of great significance to risk managers. She cited the recent launch of Coinbase Derivatives' 24/7 Bitcoin futures as an example, saying that its weekend trading volume is already comparable to active weekdays. It is worth noting that the CFTC is also considering using tokenized assets and stablecoins as collateral to address credit risk issues in the 24/7 market. Regarding perpetual contracts, the CFTC confirmed that they are already trading in the U.S. market, and Bitnomial launched Bitcoin perpetual futures in April. Some commentators hope that more crypto perpetual contracts can operate under U.S. regulation, citing greater efficiency and lower costs, but others warn that these contracts may not be suitable for physical commodities due to a lack of convergence and additional risks.

▌Japan's Senate passed an amendment to the Funds Settlement Act to establish a new system for the crypto asset intermediary industry

The Japanese Senate passed an amendment to the Funds Settlement Act on June 6, establishing a new system for the "crypto asset intermediary industry", allowing companies to engage in matchmaking services without registering as crypto asset exchange operators, aiming to lower market entry barriers and promote crypto financial innovation. The amendment also adds a "domestic retention order" clause, giving the government the power to order platforms to keep some user assets in Japan when necessary to prevent the risk of asset outflows caused by similar FTX bankruptcy events. The new law is expected to be officially implemented within one year of the date of publication.

Blockchain Applications

▌Market News: Magic Eden and TRUMP Meme Officially Cooperate to Develop TRUMP Wallet

According to market news, information on the official website of TRUMP Wallet shows that Magic Eden and TRUMP Meme have officially cooperated to jointly develop the TRUMP encrypted wallet.

▌Beijing North: The company has deep reserves in the underlying blockchain and smart contract basic technologies of stablecoins

Beijing North stated on the interactive platform that the company has deep reserves in the underlying blockchain and smart contract basic technologies of stablecoins, and is deeply involved in the IT infrastructure construction and application scenario pilots of digital currencies in China and Hong Kong and Macao, and closely follows the technical practices of regulators and financial institutions. (Jinshi)

▌CME CEO: The "ultimate use" of cryptocurrency has not yet been discovered

The CEO of the Chicago Mercantile Exchange (CME) said that the "ultimate use" of cryptocurrency has not yet been discovered, and stablecoins pegged to the US dollar can eliminate friction between fiat currencies. Banks with systemic importance should have the ability to issue stablecoins.

▌Sky has introduced stablecoin incentives for SKY staking

According to the official website page, Sky (formerly Maker) has begun to provide stablecoin incentives for SKY token staking, and the incentives are issued in the form of USDS. The current APY for SKY staking is 17.48%. Earlier news, two whales withdrew $5.4 million worth of MKR from Binance and pledged it.

▌Tether announces strategic investment in Orionx

Tether announced an investment in Orionx. Orionx is one of Chile's leading digital asset trading platforms and a financial infrastructure company focused on cross-border payments.

Cryptocurrency

▌Polymarket becomes X's official prediction market partner

X announced that it will work with Polymarket to become its official prediction market partner.

▌a16z Crypto: Stablecoins provide an opportunity for 1 billion people to participate in cryptocurrency

a16z Crypto published an article titled "Stablecoins: A 1+ billion-user onboarding opportunity", which pointed out that in the past 12 months, the transaction volume of stablecoins has reached 33 trillion US dollars, continuing to set new historical highs, close to 20 times the transaction volume of PayPal and close to 3 times the transaction volume of Visa. Stablecoins have been integrated into these huge global payment networks that have existed for decades. The booming development of stablecoins has brought about the result that $128 billion of US Treasury bonds are held by stablecoins. This makes them among the top 20 holders of US Treasury bonds, even surpassing countries such as Saudi Arabia, South Korea, the United Arab Emirates and Germany. Citibank recently predicted that stablecoin holdings in U.S. Treasuries will reach $3.7 trillion by 2030, making it the largest holder on this list. Stablecoins have long been criticized for being used only to settle speculative cryptocurrency transactions, but data suggests otherwise. ether.fi: Discord platform issues have been controlled and are being actively monitored ether.fi released an update on the Discord hacking incident on the X platform, disclosing that the relevant issues have been controlled and the Discord channel is being actively monitored. Users can mark any suspicious behavior in time, and more details will be released once the problem is confirmed.

▌Cetus announced that it will restart at 9:00 today, and the liquidity pool recovery rate is between 85% and 99%

On June 8, the Sui ecological liquidity platform Cetus officially announced that it will restart at 9:00 UTC+8 today. Users will be able to access all the functions of Cetus, including trading, managing liquidity positions, adding/removing liquidity, and claiming fees and rewards. The liquidity recovery rate of the affected pool is between 85% and 99%. Cetus will allocate 15% of the token supply to compensate the contract, of which 5% will be available immediately upon restart, and 10% will be unlocked linearly within 12 months from June 10, 2025. The Cetus team said it has invested all available cash reserves of approximately US$7 million and obtained a loan of 30 million USDC from the Sui Foundation to support the recovery. At the same time, the team is taking legal action in multiple jurisdictions to recover the remaining stolen funds.

▌The whale who bought 500 BTC at $27,400 two years ago increased his holdings by 250 BTC

According to the monitoring of the on-chain analyst Ember, the whale who hoarded 500 BTC at $27,400 two years ago continued to increase his holdings by 250 BTC (US$26.37 million) today. He withdrew 500 BTC from Gemini two years ago (2023/5/17), when the BTC price was US$27,400, and has not moved since then. Then until today, he increased his holdings by 250 BTC through Gemini again. Now, he holds a total of 750 BTC. The comprehensive cost average price is US$53,426, and the floating profit is US$39.14 million.

Important Economic Dynamics

▌"Federal Reserve Megaphone": Zooming in, the U.S. unemployment rate is actually rising

"Federal Reserve Megaphone" Nick Timiraos wrote that, based on unrounded data, the unemployment rate in May rose from 4.187% in April to 4.244%. Last year, the highest unemployment rate was 4.231% in November 2024. It can be said that the U.S. unemployment rate in May was the highest level (unrounded) since October 2021 (when it was 4.500%).

▌Institution: The Fed is expected to restart the rate cut mode in July

Jamie Cox, managing partner of Harris Financial Group, said that although the U.S. labor market remains strong, it is gradually cooling down. Given the significant revision of the previous value of this non-farm report, I expect the Fed to restart the rate cut mode in July. The current salary level is still stable, but it is likely to change in the coming months. The biggest variable in the job market is real estate - the property market has shown early risk signals, and the cooling of the labor market will exacerbate this trend.

▌The S&P 500 index has broken through 6,000 points for the first time since February

The market shows that the S&P 500 index has broken through 6,000 points for the first time since February.

▌The U.S. Treasury Department imposes a new round of sanctions on Iran

The U.S. Treasury Department website announced that the United States has imposed a new round of sanctions on Iran, targeting 10 individuals and 27 entities. As the U.S. President Trump's administration strives to reach a new nuclear agreement with Iran, these sanctions also target some entities in the UAE and Asia. (Jinshi)

▌Macro Outlook for Next Week: US May CPI Data to be Released on Wednesday

Important macro data release nodes for next week are as follows: Monday 22:00, US April wholesale sales monthly rate; Monday 23:00, US May New York Fed 1-year inflation expectations; Wednesday 20:30, US May CPI data; Wednesday 22:30, US EIA crude oil inventory, Cushing crude oil inventory, strategic oil reserve inventory for the week ending June 6; Thursday 20:30, US initial jobless claims for the week ending June 7, US May PPI; Friday 22:00, US June one-year inflation rate expectations, US June University of Michigan Consumer Confidence Index initial value. The US May CPI report to be released next Wednesday will test the market's optimism about interest rate cuts, as it may show that the recent downward trend in inflation has stagnated. According to the Cleveland Fed's Nowcast model forecast, the overall CPI is expected to grow by 2.4% year-on-year in May, higher than last month's 2.3%; the core CPI is expected to grow by 2.8% year-on-year, the same as last month. Analysts expect the three-month annualized inflation rate of core commodities to peak (4%-5%) in early autumn, which is slightly lower and delayed than the forecast before the suspension of the "reciprocal tariff" on May 8.