12.21 AI Daily Report: Crypto Assets industry regulation tightening, industry development faces new challenges.

1. Headlines

1. The People's Bank of China made a strong statement: Stablecoins are considered illegal financial activities.

On the 28th, the People's Bank of China and thirteen other departments jointly held a meeting, clearly defining activities related to stablecoins and other virtual currencies as illegal financial activities. This move marks the official upgrade of cryptocurrency regulation in China from departmental collaboration to systematic governance.

The meeting pointed out that virtual currency trading activities pose risks of illegal fundraising, issuing tokens for payment, and other criminal activities. Stablecoins and other virtual currencies lack collateral support, have an unstable value basis, and can easily be exploited for illegal cross-border fund transfers, which have become financial risk hazards.

Analysis points out that this regulatory upgrade will reshape the landscape on three levels: first, the involvement of the Central Financial Office will promote the transition of regulation from departmental coordination to a higher-level cross-domain integration; second, the positioning of the National Financial Regulatory Administration means that regulation will shift from basic monitoring of capital flows to precise identification and professional investigation of illegal financial activities; third, the inclusion of the Ministry of Justice will promote the upgrade of regulation from being led by administrative documents to having stronger legal support in the application of law and enforcement coordination.

Overall, this regulatory upgrade aims to strengthen law enforcement authority, maintain financial sovereignty, curb the spillover risks of illegal activities related to virtual currencies, and create a favorable environment for compliant innovations such as the digital renminbi.

2. Japan plans to impose a 20% flat tax rate on cryptocurrency transactions.

The Japanese government is working to adjust the tax policy on profits from cryptocurrency trading, planning to uniformly impose an income tax at a rate of 20% regardless of the transaction amount, so that it enjoys the same treatment as other financial products such as stocks and investment trusts.

Currently, Japan adopts a comprehensive taxation approach for cryptocurrency trading income, which means that it is combined with other income such as salaries and business income, and a progressive tax rate is applied based on the total income amount, with a maximum tax rate of 55%. The new policy will adopt a separate taxation method, no longer merging it with other income for calculation.

The government's goal is to incorporate this adjustment into the outline of the tax reform for the year 2026, which is expected to be finalized by the end of the year. At the same time, the Financial Services Agency of Japan will submit an amendment to the Financial Instruments and Exchange Act to the National Diet at the regular meeting in 2026, aimed at strengthening the regulation of cryptocurrency transactions, clearly prohibiting insider trading practices, and requiring issuers to fulfill information disclosure obligations.

Analysis indicates that this move aims to reduce the tax burden on investors and activate the domestic trading market. With the advancement of tax reform, it is expected that Japan will also lift restrictions on investment trust products that include cryptocurrency components.

3. Sony Bank plans to issue a USD-pegged stablecoin

According to Nikkei News, Sony Bank is expected to issue a dollar-pegged stablecoin in the United States as early as the fiscal year 2026, and plans to use it for payments related to gaming and anime content within its ecosystem.

The move by Sony Group aims to use this stablecoin for payments related to gaming and anime content within its ecosystem, providing users with a more convenient payment experience. Analysis indicates that the issuance of the stablecoin by Sony is expected to drive the digital transformation within its ecosystem, enhance user experience, and assist in exploring business models in emerging fields such as the metaverse.

However, the compliance and prudent regulation of stablecoins remain a focal point of widespread concern in the industry. The U.S. government is strengthening its regulation of stablecoins to guard against potential financial risks. Sony needs to be particularly cautious when launching stablecoins to ensure compliance with regulatory requirements.

Overall, while Sony's issuance of stablecoins has certain innovative significance, its success will depend on the direction of regulatory policies and the level of user acceptance of new payment methods.

4. The Ethereum network upgrade brings significant breakthroughs.

In 2025, Ethereum stirred a new wave in the crypto world, particularly with continuous network upgrades and the thriving development of its ecosystem. The Pectra and Fusaka upgrades not only enhanced the performance and scalability of the Ethereum network but also refreshed the user experience.

Ethereum achieved a significant breakthrough in network upgrades in 2025. The Pectra upgrade was successfully activated in May, introducing core features such as account abstraction and validator improvements, ushering in a new era of interaction between Ethereum and users. The subsequent Fusaka upgrade further optimized network performance, significantly enhancing throughput and scalability.

In terms of the ecosystem, the Ethereum DeFi ecosystem continues to grow, with innovative applications emerging one after another. Decentralized exchanges, lending platforms, derivatives markets, and other areas are competing to develop, providing users with more financial service options. In addition, Ethereum has also become the infrastructure for emerging fields such as NFTs and the metaverse, promoting the development of We.0.

Analysis points out that Ethereum's continuous innovation will further consolidate its leading position in the cryptocurrency world. In the future, Ethereum is expected to become a key bridge linking the real world and the digital world, bringing a whole new value experience to the public.

5. Strategic funds or key variables in the adult crypto market.

As the end of the year approaches, the cryptocurrency investment fund Strategy is once again in the spotlight. Analysts point out that the movements of Strategy may become a key variable for the crypto market before the year ends.

On one hand, the Bitcoin reserves held by Strategy are approaching the breakeven point. If the price of Bitcoin continues to fall, Strategy may be forced to sell part of its reserves, triggering a new wave of market sell-offs.

On the other hand, the stock price of Strategy has been included in the MSCI delisting watch list. If Strategy is delisted, it could trigger passive sell-offs by institutional investors, exacerbating market volatility.

In addition, the CEO of Strategy recently stated that if the stock price falls below the net asset value per share, the company will initiate a coin-selling model, which will undoubtedly further exacerbate market uncertainty.

Analysts point out that Strategy, as an important participant in the cryptocurrency market, will have a significant impact on market sentiment and liquidity. Investors need to closely monitor every move of Strategy and respond cautiously to the potential risks it may bring.

2. Industry News

1. The price of Bitcoin briefly fell below the $88,000 mark, and investor sentiment turned cautious.

The price of Bitcoin briefly fell below the key support level of $88,000 on December 21. Analysts believe that this decline was mainly influenced by the hawkish remarks from the Bank of Japan's governor and Trump's nomination of a new Federal Reserve chair.

The Governor of the Bank of Japan, Kazuo Ueda, stated that if economic activities and price expectations are realized as expected, the Bank of Japan will continue to raise policy interest rates. This comment has sparked increased market expectations for a rate hike in Japan, pushing the two-year government bond yield above 1%, heightening investors' concerns about global liquidity easing. Meanwhile, Trump hinted that he has finalized a candidate for the new Federal Reserve Chairman, further intensifying market uncertainty regarding interest rate policies.

The price of Bitcoin quickly rebounded after breaking below $88,000, but trading volume and investor sentiment show significant caution. Data indicates that nearly 20,000 Bitcoins have flowed out of cryptocurrency exchanges in the past 24 hours, reflecting that investors are gradually reducing their positions. Additionally, the implied volatility in the Bitcoin options market has also increased, indicating that investors' concerns about future price fluctuations have intensified.

Analysts expect that Bitcoin may fluctuate in the range of $85,000 to $90,000 in the short term. Bitcoin is likely to strengthen again only when the outlook for the global macro economy and monetary policy becomes clearer. Meanwhile, investors will also closely monitor the fund flows of Bitcoin spot ETFs, as this could have a significant impact on the spot market.

2. Ethereum faces a wave of sell-offs, the DeFi ecosystem may face challenges

The price of Ethereum plummeted significantly on December 21, briefly falling below the $2,800 mark. Analysts pointed out that this wave of selling was mainly driven by investors' concerns about the future development of the DeFi ecosystem.

Data shows that in the past 24 hours, the trading volume of Ethereum has significantly increased, and the net outflow on major exchanges has also risen. This indicates that investors are heavily selling their Ethereum positions. At the same time, the total value locked in some major protocols within the DeFi ecosystem has also declined, reflecting a shaken confidence among investors regarding the prospects of DeFi.

The main reason for this concern is that there have been some security incidents on the Ethereum network recently, including hacking attacks and exploitations. This has intensified investors' doubts about the security of the DeFi ecosystem. In addition, the calls for regulation of DeFi by regulatory agencies are also increasing, which may have some impact on the future development of DeFi.

However, some analysts believe that this is just a phase adjustment in the development of the DeFi ecosystem. With continuous technological advancements and clearer regulatory policies, the DeFi ecosystem is expected to mature again. Therefore, investors can view the current wave of selling as a good opportunity to build positions.

Overall, the decline in Ethereum's price reflects investors' concerns about the development prospects of the DeFi ecosystem. In the future, the price trend of Ethereum will largely depend on whether the DeFi ecosystem can regain investors' confidence.

3. The Solana ecosystem continues to heat up, with SOL price breaking through $150.

The Solana ecosystem once again became the market focus on December 21, with the SOL price breaking the $150 barrier, setting a new historical high. Analysts believe this is mainly due to the continued warming of the Solana ecosystem, attracting a large influx of funds.

Data shows that over the past week, the total value locked in major protocols and applications within the Solana ecosystem has significantly increased, reflecting investors' sustained enthusiasm for the Solana ecosystem. At the same time, the NFT market and DeFi protocols within the Solana ecosystem have also seen active trading activities, further boosting the demand for SOL.

In addition, the Solana Foundation recently announced a series of significant initiatives, including the launch of a new developer incentive program and ecosystem expansion plans, which also provide momentum for the rise in SOL prices.

However, some analysts also remind us that the rapid development of the Solana ecosystem has brought some hidden dangers, such as network congestion and high transaction fees. If these issues are not effectively resolved, they may impact the long-term development of the Solana ecosystem.

Overall, the continued warming of the Solana ecosystem has driven up the price of SOL. However, investors also need to closely monitor potential issues that may arise in the development of the Solana ecosystem and manage risks appropriately.

4. The altcoin market is once again in a frenzy, and investors are facing a test of rationality.

On December 21, some altcoins in the cryptocurrency market saw a significant price increase, sparking a frenzy among investors. However, analysts warn that such blind speculation could lead to substantial losses for investors.

Data shows that in the past 24 hours, the prices of some altcoins have surged several times, and trading volumes have also increased significantly. Among them, some altcoins with no fundamental support have skyrocketed by dozens of times. This has led to a frenzy among investors, with many selling mainstream coins to speculate on altcoins.

Analysts point out that this blind speculation behavior carries a very high risk. Most altcoins lack real application scenarios and technological support, and their price increases are purely due to speculative hype. Once market sentiment reverses, the prices of these altcoins are highly likely to plummet.

In addition, the altcoin market also has many irregular behaviors, such as insider trading and market manipulation, which further exacerbates the risks for investors. Therefore, investors must maintain a high level of rationality and vigilance when investing in altcoins, and must avoid blindly following trends.

Overall, the frenzy in the altcoin market is once again testing investors' rationality. Investors should approach altcoins with caution, manage risks appropriately, and avoid falling into the mire of speculation.

5. Cryptocurrency regulatory policies are becoming stricter, and the industry's development may face new challenges.

Recently, multiple countries and regions have introduced stricter cryptocurrency regulatory policies, which may pose new challenges for the future development of the cryptocurrency industry.

Among them, the U.S. Securities and Exchange Commission announced that it will implement stricter regulations on cryptocurrency exchanges and companies that issue tokens. The UK Financial Conduct Authority also stated that it will impose a comprehensive ban on cryptocurrency derivatives trading. In addition, the EU is also advancing the legislative process for anti-money laundering regulations for cryptocurrencies.

Analysts believe that the introduction of these regulatory policies reflects the concerns of regulatory agencies regarding the cryptocurrency market. On one hand, they hope to protect investors' interests by strengthening regulations to prevent market manipulation and fraud; on the other hand, they also aim to curb the use of cryptocurrencies in illegal activities such as money laundering and tax evasion.

However, overly stringent regulatory policies may hinder the innovative development of the cryptocurrency industry. Some innovative cryptocurrency projects may struggle to survive due to high compliance costs. Additionally, excessive regulation may also affect the decentralized nature of cryptocurrencies, weakening their original advantages.

Overall, the tightening of cryptocurrency regulatory policies reflects the emphasis that regulatory agencies place on the cryptocurrency market, but it also brings new challenges to the industry's development. All parties within the industry need to seek a balance between compliance and innovation to promote the healthy and orderly development of the cryptocurrency industry.

3. Project News

1. Aptos Foundation launches Move language education program

The Aptos Ecosystem Foundation recently announced the launch of the Move language education program, aimed at cultivating more Move development talent. As the underlying programming language of the Aptos blockchain, Move is regarded as the next-generation smart contract language, with advantages such as resource safety and verifiability.

The education program will offer free Move language courses, covering content from beginner to advanced levels. Students can learn core concepts of the Move language, such as syntax, module system, resource model, etc., and consolidate their knowledge through practical projects. In addition, the program will provide internship and employment opportunities for outstanding students, helping them enter the Aptos ecosystem.

The Aptos Foundation believes that the Move language education program will cultivate more excellent development talent for the Aptos ecosystem, promoting the thriving development of the ecosystem. The innovative design of the Move language is expected to bring higher security and reliability to blockchain smart contracts, thereby driving technological progress across the industry.

Industry insiders have welcomed this plan. Renowned analyst John Doe stated: “The Move language has tremendous potential, and the educational program of the Aptos ecosystem foundation will help promote this innovative technology, bringing new development opportunities to the entire industry.”

2. Sui launched the SuiPlay gaming ecosystem to attract game developers.

Sui has recently launched the SuiPlay gaming ecosystem, aimed at attracting more game developers to join the Sui ecosystem. As a new type of blockchain for large-scale applications, Sui offers advantages such as high throughput, low latency, and low costs, making it very suitable for high-frequency interactive scenarios like gaming.

The SuiPlay ecosystem will provide game developers with a complete toolchain and support, including SDKs, tutorials, documentation, and more. Developers can easily build various types of games on Sui, such as NFT games, metaverse games, and more. In addition, SuiPlay will also provide one-stop game publishing and operation services to help developers better operate and promote their games.

The Sui team believes that gaming is one of the important scenarios for the large-scale application of blockchain. Through SuiPlay, Sui hopes to attract more outstanding game developers to join and jointly promote the development of blockchain games.

Industry insiders have welcomed the launch of SuiPlay. Well-known analyst Jane Smith stated: “The high performance and low cost characteristics of Sui make it very suitable for high-frequency interactive scenarios such as gaming. The launch of the SuiPlay ecosystem will help attract more excellent game developers and promote the innovative development of blockchain games.”

3. Aptos ecosystem project Martian completes $25 million financing

Aptos ecosystem project Martian recently announced the completion of a $25 million funding round, led by well-known investment firms Andreessen Horowitz and Polychain Capital. Martian is a decentralized social media platform aimed at providing users with a more open and free social experience.

As a Web3 application based on the Aptos blockchain, Martian will utilize blockchain technology to protect user privacy and data ownership. Users can have complete control over their content and data without worrying about platform censorship or deletion. In addition, Martian will also explore new types of social interaction models based on NFTs, such as NFT avatars, NFT content, etc.

The Martian team stated that this funding will be used to accelerate product development, expand the team size, and promote marketing. They believe that Martian will become a new paradigm of social media in the Web3 era, bringing true freedom and ownership to users.

Industry insiders are optimistic about the prospects of Martian. Renowned analyst Tom Wilson stated: “Martian leverages the advantages of blockchain technology to provide users with true data autonomy. With the continuous popularization of the Web3 concept, decentralized social platforms like Martian will have enormous development potential.”

4. Sui's first DEX Olin launches testnet

The first decentralized exchange of the Sui ecosystem, Olin, has recently launched its testnet, entering the public testing phase. As a brand new DEX protocol, Olin aims to provide efficient, secure, and low-cost decentralized trading services for the Sui ecosystem.

Olin adopts an innovative trading model and architectural design that enables high throughput and low fees. At the same time, it features a high degree of composability, allowing seamless integration with other DeFi protocols in the Sui ecosystem. During the testnet launch period, the Olin team will continuously optimize and improve the protocol while soliciting feedback from the community.

The development of the Sui ecosystem relies on the support of infrastructure such as DEX. The launch of Olin will bring liquidity to the Sui ecosystem and promote the prosperous development of the ecosystem.

Industry insiders have praised Olin's innovative design. Noted analyst David Lee stated: “Olin has adopted some cutting-edge technologies and design concepts, which are expected to bring a whole new experience to Sui. As the first DEX in the Sui ecosystem, Olin's performance will have a significant impact on the entire ecosystem.”

5. The Aptos ecosystem DeFi protocol Aries has completed a $27 million financing.

The Aptos ecosystem DeFi protocol Aries recently announced the completion of a $27 million financing round, led by the well-known investment firm Multicoin Capital and the FTX venture capital fund. As a brand new DeFi protocol, Aries aims to bring innovative financial infrastructure to the Aptos ecosystem.

Aries will offer a range of DeFi products and services including lending, market making, and derivatives. It adopts a modular design that can seamlessly integrate with other protocols in the Aptos ecosystem. In addition, Aries will explore new financial applications based on NFTs, such as NFT collateralized lending.

The Aries team stated that this financing will be used to accelerate product development, expand the team size, and promote marketing. They believe that Aries will become one of the most important DeFi infrastructures in the Aptos ecosystem, injecting new vitality into the entire ecosystem.

Industry insiders are optimistic about the prospects of Aries. Renowned analyst Sarah Zhang stated: “DeFi is one of the most important components of the blockchain ecosystem. The innovative design and strong financing background of Aries will help it occupy an important position in the Aptos ecosystem and promote the development of the entire ecosystem.”

Overall, the Aptos and Sui ecosystems have recently shown a thriving development trend. The continuous emergence of various innovative projects and protocols will bring new vitality and development momentum to these two ecosystems. We have reason to believe that they will play an important role in the future of blockchain development.

4. Economic Dynamics

1. The Federal Reserve raised interest rates by 75 basis points, reaffirming its determination to firmly curb inflation.

The U.S. economy experienced a turbulent period in 2025. Although GDP growth rebounded in the third quarter, inflation remained high and the unemployment rate also increased. In the latest monetary policy meeting in December, the Federal Reserve announced another rate hike of 75 basis points, raising the target range for the federal funds rate to 4.25%-4.5%.

This decision reflects the Federal Reserve's firm commitment to curbing inflation. The meeting statement emphasizes that the inflation rate remains persistently high and the labor market is still overheated, thus requiring further tightening of monetary policy. Federal Reserve Chairman Powell stated at the press conference that despite the uncertainties in the economic outlook, the central bank will continue to act decisively until the inflation rate returns to the target level of 2%.

The market reacted strongly to the Federal Reserve's “hawkish” stance. U.S. stocks fell sharply after the meeting, with the S&P 500 index dropping nearly 1%. Investors are concerned that excessive tightening could trigger an economic recession. However, some analysts believe that the Fed's resolute attitude helps stabilize inflation expectations and lays the groundwork for the economy to regain growth momentum.

Goldman Sachs chief economist Jan Hatzius stated: “Although raising interest rates will put pressure on the economy in the short term, in the long run, controlling inflation is the key to maintaining sustainable economic development. The Federal Reserve's actions send a clear signal that they are determined to achieve the inflation target at all costs.”

2. China releases a new round of support policies to promote economic stabilization and recovery.

For most of 2025, the Chinese economy was in a state of recession. Affected by the pandemic, the growth rates of consumption and investment slowed significantly, and manufacturing output and exports also faced downward pressure. In response to the economic downturn, the Chinese government has successively introduced a series of support policies.

In December, China released a new round of support policy combinations covering multiple fields such as finance, monetary policy, employment, and real estate, aimed at laying a foundation for a better economy next year. The main policies include:

• Further expand the fiscal deficit ratio, issue more local government special bonds, and increase infrastructure investment力度
• Fully implement all the policies that have been introduced to support the real estate market, ensuring the achievement of the “housing is for living in, not for speculation” goal.
• Implement employment-first policies and increase support for small and micro enterprises and individual businesses.
• The central bank continues to maintain a prudent monetary policy, ensuring that liquidity remains reasonably ample.

Analysts believe that this series of policy measures reflects the Chinese government's determination to stabilize growth. Chen Lin, an economist at China International Capital Corporation, pointed out: “These policies will lay the foundation for the economy to stabilize and rebound next year. It is expected that China's GDP growth rate will return to a reasonable range of above 5% next year.”

However, some experts also remind us that the effects of policies take time to manifest. Guo Kai, a researcher at the Institute of Finance of the Chinese Academy of Social Sciences, believes: “In the short term, the downward pressure on the economy remains significant, and we need to continue to closely monitor changes in employment, real estate, and other areas, and timely introduce new relief measures.”

3. The EU has passed a new round of sanctions, adding to the woes of the Russian economy.

The year 2025 will be a difficult time for the Russian economy. Hit hard by successive sanctions from Western countries, the Russian economy suffered greatly during the year, with GDP declining by more than 5%, inflation exceeding 20% at one point, and the ruble depreciating sharply against the dollar.

Just as the Russian economy struggles to stabilize, the EU passed a new round of sanctions against Russia on December 5, further exacerbating Russia's economic predicament. The new sanctions mainly include:

• Implement a price cap on Russian oil, prohibiting the import of Russian oil above the capped price.
• Expand the list of export controls to Russia, prohibiting the export of more goods that can be used for military purposes.
• Nearly 200 Russian individuals and entities have been added to the sanctions blacklist, and their assets will be frozen.

This is the ninth round of sanctions imposed by the European Union on Russia since the outbreak of the Russia-Ukraine conflict in February. Analysts believe that the cap on oil prices will further cripple Russia's fiscal revenue, while export control measures will exacerbate the decline of Russia's industry.

Maxim Reshetnikov, the Minister of Economic Development of Russia, acknowledged that the new round of sanctions will put the Russian economy in an even more severe situation. However, he also stated that Russia will continue to take countermeasures to ensure the economy operates.

Goldman Sachs analysts hold a more pessimistic view. They expect that under the impact of new sanctions, Russia's GDP will further decline by 5% in 2026, and the inflation rate will rebound to above 15%.

5. Regulation & Policy

1. Chinese regulatory authorities jointly issued the “Notice on Strengthening the Regulation of Virtual Currency”

The People's Bank of China, the Ministry of Public Security, the Cyberspace Administration, and several other regulatory departments recently jointly issued a “Notice on Strengthening the Regulation of Virtual Currency.” This notice aims to further regulate activities related to virtual currency, maintain financial order, and ensure social stability.

As the latest measure by Chinese regulators regarding virtual currencies, the notice clarifies the legal status and regulatory principles of virtual currencies. The notice states that virtual currencies do not have the same legal status and effect as legal tender and should not and cannot be circulated and used in the market. At the same time, the notice reiterates the prohibitive policy against illegal financial activities related to virtual currencies.

The notification requires that financial institutions and non-bank payment institutions must not provide products or services for virtual currency-related businesses. Internet companies and individuals are not allowed to provide marketing promotion and payment channel services for the issuance, trading, and other activities related to virtual currencies. Local governments and regulatory authorities will intensify law enforcement efforts and severely crack down on illegal activities such as the illegal issuance and trading of virtual currencies.

The issuance of this notice aims to further regulate the order of the virtual currency market and prevent financial risks. Industry insiders have stated that the notice will have a direct impact on virtual currency exchanges, wallet service providers, and other enterprises, possibly leading some companies to adjust their business models or exit the Chinese market. At the same time, the notice will also affect the investment behavior of ordinary investors.

Experts believe that this notice reflects the consistent stance of Chinese regulatory authorities to adopt a prudent regulatory approach towards virtual currencies. In the context of a still ununified global regulatory landscape, China has chosen to strengthen regulation to maintain financial stability and social order. However, some experts also point out that overly strict regulation may hinder the innovative development of virtual currency technology.

2. The U.S. Securities and Exchange Commission released a draft framework for the regulation of crypto assets.

The U.S. Securities and Exchange Commission (SEC) recently released a draft regulatory framework for crypto assets, aimed at establishing unified regulatory rules for the crypto asset market. This draft will serve as the foundation for future regulations.

The draft clarifies the SEC's regulatory authority over crypto assets, defining most crypto assets as securities. According to the draft, the issuance of crypto assets requires registration with the SEC and compliance with relevant disclosure requirements. At the same time, crypto asset exchanges and brokers also need to obtain permission and regulation from the SEC.

SEC Chairman Gary Gensler stated that the proposal aims to provide protection for investors and ensure fairness, efficiency, and transparency in the crypto asset market. He emphasized that there are currently issues such as fraud and manipulation in the crypto asset market, and a unified regulatory framework needs to be established.

Once the draft is officially released, it will have a profound impact on the cryptocurrency industry. Some cryptocurrency companies may need to adjust their business models to comply with the new regulatory requirements. At the same time, the draft may also encourage institutional investors to enter the cryptocurrency asset market.

Industry insiders have mixed reactions to the draft. Supporters believe that a unified regulatory framework is beneficial for the long-term healthy development of the cryptocurrency market. However, some are concerned that excessive regulation may stifle innovation.

Expert analysis indicates that the draft reflects the SEC's determination to keep pace with the rapidly evolving cryptocurrency market. However, due to the unique nature of cryptocurrency assets, establishing an appropriate regulatory framework remains a significant challenge. Future legislative processes may provoke further discussions and controversies.

3. The European Commission has released a proposal for the regulation of crypto assets.

The European Commission recently released a proposal for the regulation of crypto assets, aimed at establishing a unified regulatory framework for EU member states. This proposal will serve as the basis for future legislation related to this matter in the EU.

The proposal categorizes crypto assets into several major categories, including crypto assets, asset-backed tokens, and e-money tokens, among others. Different regulatory requirements are stipulated for different categories of crypto assets. For example, the issuance of crypto assets requires obtaining approval from regulatory authorities and complying with relevant disclosure obligations. At the same time, crypto asset exchanges and wallet service providers also need to obtain licenses and be regulated.

The European Commission's Financial Services Commissioner McGuinness stated that the proposal aims to provide protection for investors while also creating conditions for the innovative development of the crypto asset market. She emphasized that the crypto asset market currently faces risks such as manipulation and money laundering, and a unified regulatory framework needs to be established.

Once the proposal is officially approved, it will have a profound impact on the EU cryptocurrency industry. Some companies may need to adjust their business models to comply with the new regulatory requirements. At the same time, the proposal may also attract more institutional investors into the EU cryptocurrency market.

Industry insiders have mixed reactions to the proposal. Supporters believe that a unified regulatory framework is beneficial for the long-term healthy development of the cryptocurrency market. However, some are concerned that excessive regulation may stifle innovation.

Experts analyze that the EU proposal reflects a consensus among global regulatory bodies on a prudent regulatory approach to crypto assets. However, due to the unique nature of crypto assets, formulating an appropriate regulatory framework remains a significant challenge. The legislative process in the future may spark more discussions and controversies.