The passage of the GENIUS Act marks a new stage in U.S. crypto legislation. The controversy between the Senate and the House over the CLARITY Act also reveals two regulatory philosophies: one focuses on functional definition and universality, while the other focuses on financial embedding and the stablecoin system itself.
Faced with the impact of stablecoins, the banking system has begun to respond, from restructuring distribution paths, introducing on-chain credit collateral, to outsourcing interest rate generation to tokenized assets, and is evolving towards modularization and interfacing to adapt to the era in which on-chain assets participate in liquidity generation.
PayPal chose to bypass banks and directly build a unified interface between digital assets and capital flows. In the future, it may package clearing, exchange, user access and merchant network through PYUSD and PayPal World, trying to build a crypto-native payment stack without bank intermediaries.
In the high-speed flow of capital, value is shifting from intermediary fees and scarcity to flow speed, combination capabilities and network effects. The new financial order is being reorganized between interfaces.
Market Overview and Growth Highlights
The total market value of stablecoins reached $265.217 billion (about $265.2 billion), a weekly increase of $4.502 billion (about $4.5 billion). In terms of market structure, USDT continued to maintain its dominant position, accounting for 61.8%; USDC ranked second, with a market value of $64.807 billion (about $64.8 billion), accounting for 24.44%.
Blockchain network distribution
The top three stablecoin networks by market capitalization are:
Ethereum: $132.37b ($132.4 billion)
Tron: $81.992b ($82 billion)
Solana: $11.592b ($11.6 billion)
Top 3 fastest growing networks per week:
TON: +7.85% (USDT accounts for 79.49%)
Hedera: +6.96% (USDC accounts for 99.86%)
Polygon: +5.60% (USDT accounts for 43.29%)
From distribution to credit creation to financial engineering: Stablecoins are penetrating the banking system
With the implementation of the GENIUS Act, stablecoins have begun to continuously penetrate the core architecture of the traditional banking system.
The cooperation between PNC and Coinbase marks that stablecoins have been officially endorsed by traditional financial institutions as a "distribution channel", and customers can buy, sell and custody crypto assets directly on the bank interface. The tokenized money market fund launched by Goldman Sachs and New York Mellon has atomized and migrated the traditional financial core asset pair of "US dollar + Treasury bonds" to the chain. The role of banks is shifting from passive custodians to active native on-chain asset issuers. Stablecoins are rewriting the technical structure of the bank's front end and redefining the entry standard of the "programmable dollar".
More structurally significant is that JPMorgan Chase plans to include Bitcoin and Ethereum in its collateral list to issue US dollar loans. This move essentially incorporates on-chain assets into the M2 generation path, allowing crypto assets to participate in the bank's credit creation system. When on-chain assets become the collateral basis for the US dollar, stablecoins are no longer a "digital shadow" of traditional finance, but part of the money creation system.
Anchorage's USDtb model demonstrates a sophisticated financial engineering design. The USDtb issued by Anchorage does not directly assume the income commitment, but outsources the interest generation to BlackRock's tokenized money market fund product BUIDL, and then transmits the income to the holders through custody logic. This architecture cleverly redefines "interest" as the natural attribute of the underlying assets rather than the legal obligation of the stablecoin itself, thereby circumventing the SEC's regulatory definition of "income tokens". In this model, stablecoins essentially become a "income encapsulation interface" that reconstructs functional relationships in institutional gaps.
This series of evolutions shows us a trend, that is, if banks want to embrace stablecoins, they must accept functional decoupling and layered design. The traditional integrated financial system is being disassembled into reconfigurable on-chain modules such as compliance, interest-bearing, custody and trading.
Stablecoins are forcing the banking system to evolve into a modular, programmable financial infrastructure. A set of financial Lego blocks that can be reassembled at will is the possible state of future banks.
PayPal launches PayPal World, a global payment interconnection platform, and incorporates stablecoins and AI shopping agents into its strategic layout
PayPal announced the launch of PayPal World, a global payment interconnection platform, which aims to reshape the cross-border payment network structure and the global business interaction paradigm. As a "payment network aggregator", PayPal World first connected to Mercado Pago, India's UPI, WeChat Pay's international version Tenpay Global, as well as its own PayPal and Venmo, covering nearly 2 billion consumers and merchants worldwide. Through unified integration to connect multiple "walled gardens", merchants can access once and reach the world, significantly reducing the technical threshold for payment compatibility; users can also complete cross-border transactions in local payment tools without switching apps.
The key to this product integration is that PayPal has for the first time integrated Venmo, which is mainly based on P2P, with the B2C commercial payment network, opening up the scenarios of individuals and merchants to form a collaborative closed loop. Through PayPal World, this integration has been further expanded to the world, making personal cross-border remittances as smooth as sending messages, and merchants can also receive funds from any payment ecosystem in real time, realizing the account-to-account (A2A) clearing path.
This evolution relies on the modernization of payment infrastructure driven by cloud computing and API standardization. By deconstructing the high-cost intermediaries in the traditional payment chain (correspondent banks, card organizations, SWIFT, etc.), PayPal is moving from mesh interoperability to a lower-friction, more programmable A2A architecture. Looking forward, the next stage may be to migrate to the chain to build a more automated, all-weather, low-cost clearing and settlement channel to serve new settlement entities such as AI agents.
From a long-term historical perspective, the value logic of finance is shifting: from an arbitrage mechanism that relies on geographical barriers and physical friction to an efficiency paradigm centered on compressing "time in transit for funds." PayPal World is a structural response to this trend. In this new paradigm, stablecoins will become infrastructure. If A2A is the starting point, then stablecoins are an extension of the path, and the ultimate goal is a high-frequency, low-latency, and composable capital network.
PayPal has clearly promoted the stablecoin strategy and AI Agent payment layout, and even actively sacrificed the traditional legal currency float income to encourage users to convert their balances into PYUSD to enhance ecological stickiness and capital liquidity. Its growth model is also evolving from fee-driven and stock income to high-frequency circulation and network dominance.
The significance of PayPal World can be understood as an experiment in "post-frictional capitalism". At this stage, value no longer comes from the possession of scarce resources or intermediary fees, but from the speed of capital flow, combination capabilities and network effects. The traditional payment package (clearing, settlement, exchange, fees) is being deconstructed (Unbundle) and rebuilt (Re-bundle) around digital assets (such as PYUSD) and unified interfaces (such as PayPal World).
U.S. crypto regulation is heading for a fork in the road. The divergent regulatory philosophies behind the CLARITY Act
With the GENIUS Act establishing a regulatory framework for stablecoins, U.S. crypto legislation is entering the next stage. The CLARITY Act, recently passed by the House of Representatives, attempts to further clarify regulatory boundaries and establish a set of division criteria centered on "control": strong regulation of platforms that hold user assets and have an intermediary nature, requiring them to accept compliance constraints such as KYC, AML, and fund isolation; while truly decentralized protocols where users interact directly with smart contracts are exempted, reflecting a structural response to FTX-style risks.
The Senate draft presents another regulatory philosophy. This version proposes the concept of "ancillary asset", which refers to tokens that are issued through investment contracts but do not contain equity or income rights. The issuer can self-certify to the SEC that it is not a security. If the SEC does not object within 60 days, it can be treated as a commodity asset. Compared with the House of Representatives' emphasis on control and platform roles, the Senate is more concerned about whether the token itself has financial rights attributes, and the overall orientation is more inclined to provide an operational compliance path for the issuer.
The differences between the two houses on the definition standards are essentially different judgments on "what should be regulated": the concentration of regulatory power or the regulation of financial attributes. This difference not only involves concepts, but also directly affects the distribution of the dominant power of regulatory agencies - the House version is dominated by the CFTC, while the Senate still retains the SEC's preliminary screening authority. Future regulation may not be covered by a single framework, but may present a multi-level system based on power structure, governance methods and asset attributes.
Eventually, the two houses will reach a compromise text before Congress resumes in September. Even if the final legislation fails to pass quickly, this round of game has revealed the stratified trend of digital asset regulation in the United States. After stablecoins, core areas such as DeFi, ICO, and platform intermediaries will gradually enter the institutional track, and the path chosen will determine the direction and voice of the United States in the global crypto-financial order.
Market adoption
Polygon USDC transfer volume surged 141%, with growth mainly coming from South America
Quick Facts
Small USDC transfers (less than $1,000) on the Polygon network have surged 141% this year, surpassing Solana in such transfers and becoming the main blockchain for processing small USDC payments;
Aishwary Gupta, global head of payments and real assets at Polygon Labs, said that the significant increase in Tron network transaction fees (from $3.3 a year ago to more than $7 now) has prompted users to look for alternatives, and USDC transfers on Polygon only cost a fraction of a cent;
The growth mainly comes from South America, especially users in Argentina and Brazil. Nearly 50% of stablecoin transfers in Argentina use USDC.
Why it matters
As the stablecoin market expands 27% this year to an all-time high of $262 billion, Polygon is repositioning itself as a payment and physical asset tokenization platform. While Tron still accounts for 60% of stablecoin trading volume, with more than $81 billion in stablecoins, compared to Polygon's $2.8 billion, high Tron transaction fees create market opportunities for Polygon, especially in the field of daily small payments in developing countries. With Standard & Poor's predicting that the stablecoin market will reach $2 trillion in 2028 and Bernstein predicting that it could grow to about $4 trillion in the next decade, Polygon's payment strategy could put it in a favorable position as Wall Street and traditional financial institutions enter the stablecoin field.
PNC, the seventh largest bank in the United States, has reached a strategic cooperation with Coinbase
Quick Facts
PNC Bank, with $557 billion in assets, and crypto exchage giant Coinbase announced a strategic partnership to expand digital asset solutions and enhance banking services for PNC clients, including institutional investors.
PNC customers will soon be able to buy, hold and sell cryptocurrencies directly through the PNC banking interface, powered by Coinbase’s institutional-grade Crypto as a Service (CaaS) platform, ensuring secure transactions and custody.
As a mutually beneficial collaboration, PNC will provide Coinbase with its first-class banking services, while Coinbase will contribute its professional crypto trading and custody tools to PNC. Both parties will complement each other's strengths to enhance customer experience.
Why it matters
This cooperation marks an important milestone in the integration trend of traditional finance and the crypto industry. The seventh largest bank in the United States joining the crypto service will greatly enhance the accessibility and legitimacy of digital assets in the mainstream financial system. Following the exploration of crypto asset services by large banks such as JPMorgan Chase, PNC's move further confirms that the US banking industry is accelerating its embrace of digital assets, providing ordinary customers and institutional investors with convenient access to cryptocurrencies, which will significantly expand the potential user base of cryptocurrencies.
Global remittance giant Western Union explores launching stablecoin services in digital wallets
Quick Facts
Western Union, the global remittance giant, is looking to integrate stablecoins into its digital wallet infrastructure. In an interview with Bloomberg, the company’s CEO Devin McGranahan said that it is exploring partnerships that provide stablecoin deposit and withdrawal services.
McGranahan said Western Union sees stablecoins as an opportunity rather than a threat, and the company is evaluating how to offer stablecoin products to customers in its global digital wallets;
Western Union sees three key opportunities for stablecoin services: enabling faster cross-border transfers, facilitating conversions between stablecoins and fiat currencies, and providing a store of value for customers in volatile economies.
Why it matters
After President Trump signed the GENIUS Act, stablecoins have gained mainstream recognition. Western Union, as a leader in the traditional remittance industry, has entered the field of stablecoins, showing the acceleration of the financial services industry's transformation to digital assets. The GENIUS Act establishes a federal regulatory framework for stablecoins, requiring stablecoins to be fully backed by US dollars or other highly liquid assets, and establishing annual audit requirements for issuers with a market value of more than US$50 billion. Western Union's 175-year-old traditional financial giant embraces stablecoins, which will bring significant changes to the cross-border payment market, especially providing customers in volatile economies with more stable and faster financial service options.
Macro Trends
Latin America’s Quiet Financial Revolution: Cryptocurrency Offers Freedom to the Unbanked
Quick Facts
Chainalysis' 2024 report shows that strict capital controls and inflation rates exceeding 100% in countries such as Argentina and Venezuela are driving cryptocurrency adoption, and people are increasingly relying on digital wallets and stablecoins to obtain US dollars;
The undeveloped bank account rate in Latin America is alarming, exceeding 50% in Mexico and 43% in Peru. Cryptocurrency provides these groups with financial service channels that bypass the traditional banking system.
Lack of financial knowledge and regulatory uncertainty are major obstacles. Community-based education and a clear policy framework are crucial. Brazil and Colombia have established a digital asset service provider (VASP) licensing system.
Why it matters
Cryptocurrency adoption in Latin America is fundamentally changing the financial landscape, providing financial freedom to low-income, rural, and minority groups that have long been excluded from the traditional banking system. As governments in countries such as Mexico and Brazil work with crypto companies to develop regulatory frameworks, and as regions such as Costa Rica develop "crypto tourism," digital assets are expected to reduce cross-border payment costs (currently remittance costs in the United States are as high as 6.4%) and increase financial inclusion. This trend has a significant impact on economic independence and reducing the gap between the rich and the poor in Latin America, but whether a truly inclusive infrastructure can be built remains a key challenge.
BofA predicts GENIUS Act will boost stablecoin market by $75 billion
Quick Facts
Bank of America reported that with President Trump signing the GENIUS Act, U.S. stablecoin regulation has reached a turning point, and the supply of stablecoins will increase by $25 billion to $75 billion in the short term;
The bank is ready to issue its own stablecoin, preferring a consortium model, with BofA CEO Brian Moynihan saying the bank is ready to enter the stablecoin market at the right time;
Analysts expect consolidation in the stablecoin industry in the next 2-3 years, which will drive wider adoption of stablecoins and other tokenized assets after the passage of the CLARITY Act.
Why it matters
The GENIUS Act is driving the transformation of the U.S. financial system, and the entry of banking giants will reshape the stablecoin market. The growth of stablecoin reserves may affect the demand for U.S. Treasury bonds, prompting the Treasury to adjust its short-term Treasury bond issuance strategy. Despite the gradual rise of cross-border applications, most bank executives believe that stablecoins will not subvert the domestic payment system in the short term. The current total stablecoin market value is about US$270 billion, and the growth predicted by BofA is equivalent to an increase of 9-28%, reflecting the optimistic expectations of financial institutions for the market outlook after regulatory clarification.
New Product Express
Circle’s USYC becomes Binance’s OTC yield collateral for institutional clients
Quick Facts
Circle announced a partnership with Binance. Its yield-based US Treasury bond token USYC can now be used as collateral for over-the-counter derivatives transactions for Binance institutional clients, mimicking traditional financial market practices.
USYC will be held through Binance Banking Triparty or its institutional custody partner Ceffu, and will be issued natively on BNB Chain, allowing users to explore the on-chain world more seamlessly;
USYC provides near-instant interchangeability with USDC, enhances capital efficiency, and allows users to convert between tokenized cash and Treasury bonds in near real time, meeting the market trend of doubling demand for U.S. Treasury tokenization since 2025.
Why it matters
This collaboration represents an important step for the institutional crypto market to move closer to traditional financial practices. The integration of Circle’s Treasury Token USYC with Binance, the world’s largest exchange, provides institutional investors with a new way to optimize collateral management and earn returns, while promoting the expansion of the physical asset tokenization ecosystem. This trend demonstrates the accelerated integration of crypto finance with traditional financial infrastructure, especially in the innovation of capital market tools.
Square begins rolling out Bitcoin payment system, aims to make it universal by 2026
Quick Facts
Square, founded by Jack Dorsey, has begun rolling out Bitcoin payment capabilities for its merchant network, with the first batch of merchants now able to accept BTC payments based on the Lightning Network;
Payments are settled in near real time through the Lightning Network, a second-layer solution for Bitcoin. Square is responsible for processing the exchange of BTC to legal currency, lowering the threshold for merchants to use it.
Square plans to make the service available to all merchants using its point-of-sale terminals by 2026, and the system was piloted at the Bitcoin 2025 conference in Las Vegas in May.
Why it matters
Square uses the Lightning Network as the core technology to accelerate the popularization of Bitcoin payments, which solves the main obstacle of the slow speed of Bitcoin payments in history. The Lightning Network creates micropayment channels and allows transactions to be processed outside the main chain, which greatly increases transaction speed and reduces fees. As a payment giant, Square's move will significantly promote the practical application of Bitcoin as a daily payment tool, provide encrypted payment options for millions of merchants, and lower the technical threshold for merchants to accept cryptocurrencies. It is expected to become an important milestone in the mainstreaming of Bitcoin payments.
Circle Launches Circle Gateway, a New Infrastructure for Unifying USDC Balances Across Chains
Quick Facts
Circle launched the Gateway service, which allows users to instantly access a unified USDC balance on Avalanche, Base, and Ethereum testnets without the need for traditional cross-chain bridges or pre-deployment of funds;
The service provides fast cross-chain access of <500 milliseconds while maintaining non-custodial features. Users retain full control over USDC, and funds can only be moved through user signatures.
Circle plans to launch this service on the mainnet soon and has developed a comprehensive chain expansion roadmap to support more blockchain networks in the future.
Why it matters
As a new cross-chain infrastructure, Circle Gateway solves the main pain points of current DeFi cross-chain operations. Through a single integration, liquidity can be provided on multiple chains, which greatly reduces the demand for operating capital and improves capital efficiency. This service represents a major advancement in stablecoin infrastructure, which will significantly improve user experience and reduce cross-chain operation risks. Due to USDC's dominance in the field of crypto payments, this innovation may become a key driving force for promoting Web3 cross-chain interoperability standards.
Goldman Sachs and BNY Mellon Launch Tokenized Money Market Fund, BlackRock and Fidelity Sign Up
Quick Facts
Bank of New York Mellon launched a tokenized money market fund through the LiquidityDirect platform. Ownership records and transactions will be conducted on the Goldman Sachs Digital Asset Platform blockchain. BlackRock and Fidelity have signed on to join;
As the world’s largest custodian bank (managing $53 trillion in assets), BNY will serve as the fund’s shareholder service provider, custodian and tokenization manager, responsible for token minting and destruction;
The size of the tokenized U.S. Treasury market has reached $7 billion this year, a threefold increase year-on-year, but it only accounts for a small part of the total size of the $7 trillion money market fund. Considering that tokenization can achieve seamless and efficient transactions and reduce friction in traditional markets, this track has huge growth potential.
Why it matters
This cooperation is a sign that traditional financial institutions are rapidly embracing blockchain technology applications. Tokenized money market funds and stablecoin issuers are competing in the same race, competing for the market of "digitizing traditional US dollar funds and investing in government bonds to earn returns." Banks are both issuers of tokenized products (tokenized MMFs, tokenized deposits) and key infrastructure providers for the flow of funds between crypto and traditional finance. Their strategic choices will have a profound impact on the entire market landscape. This trend will improve the efficiency of institutional liquidity management, while bringing strong growth momentum and credibility endorsement to the tokenized traditional asset market.
JPMorgan Chase will launch crypto asset mortgage service as early as 2025, and lending rates may face downward pressure
Quick Facts
JPMorgan Chase plans to launch a U.S. dollar loan service that accepts cryptocurrencies such as Bitcoin and Ethereum as collateral as early as 2025. Previously, the bank has allowed customers to obtain loans with Bitcoin ETFs as collateral;
The current crypto loan market size is $36.5 billion (down from $64.4 billion at the peak of the 2021 bull market), Tether, Galaxy Digital and Ledn account for 90% of the non-DeFi loan market, and DeFi platforms provide $19.1 billion in loans;
Industry experts predict that with traditional financial giants such as JPMorgan Chase joining in, crypto mortgage rates will drop significantly from the current level of over 12.5%, and may eventually be comparable to home equity loans or personal lines of credit.
Why it matters
The entry of JPMorgan Chase, the world's largest bank, into the field of crypto loans marks the industry's accelerated transformation to mainstream finance. CEO Jamie Dimon once called Bitcoin a "fraud", but now gradually embraces crypto assets, reflecting the improvement of the regulatory environment and the growth of institutional demand. Bitcoin's characteristics as a global unified collateral will make such loan products competitive globally, not just in developed countries, providing more equal financial service opportunities for global crypto holders. This move may trigger other large banks to follow suit and accelerate the integration of crypto assets with the traditional financial system.
Capital layout
Figma plans to raise $1.03 billion in an auction-style IPO, and its S-1 filing first monetizes stock authorization terms
Quick Facts
Figma turned to independent listing after its $20 billion acquisition deal with Adobe was stranded due to regulation. It plans to issue 12.47 million new shares and resell 24.46 million old shares, with a price range of $25-28, and a valuation of up to $13.6 billion.
The company chose an "auction-style IPO" instead of a traditional roadshow, requiring investors to submit limit orders to specify the subscription price and quantity, in order to obtain more realistic market feedback and maximize the company's financing capabilities;
Figma disclosed in the S-1 filing submitted to the SEC that it has "pre-authorized the ability to issue blockchain common stock," leaving room for the introduction of tokenized equity in the future. Although there is no clear plan in the short term, it shows its forward-looking layout in equity structure and capital instruments.
Why it matters
The return of auction-style IPOs indicates that the pricing mechanism of the primary market is iterating towards a more efficient and fair direction, avoiding the problem of systematic underestimation of the issue price in traditional IPOs. More importantly, Figma's reserved tokenized equity space shows that technology companies are exploring new paths for the digitalization of capital structure, which may bring liquidity characteristics similar to those of the public market to non-listed equity, and broaden the investor base through on-chain settlement, global access and fragmented transactions. As one of the largest technology IPOs this year, Figma's financing innovation has exemplary significance for the next round of paradigm shifts in technology company financing.
Regulatory Compliance
Anchorage to Issue First GENIUS Act Compliant USDtb Stablecoin
Quick Facts
Anchorage Digital, the first federally chartered crypto bank in the United States, announced that it will issue Ethena Labs’ USDtb stablecoin in the United States, the first stablecoin designed specifically to comply with the new GENIUS Act;
USDtb is a yield-based USD token, which is mainly pegged to $1 by BlackRock's BUIDL and crypto assets as collateral, rather than the traditional reserve model. Since its overseas issuance in December last year, it has locked up a value of $1.45 billion;
Through this collaboration, USDtb will enter the federal regulatory framework for the first time, and Anchorage will provide it with a full set of infrastructure for minting, redemption, and compliant distribution, making it a "fully regulated digital dollar."
Why it matters
The issuance of USDtb in China is an important milestone in the US stablecoin market. It not only verifies the effectiveness of the GENIUS Act, but also indicates that "interest-bearing, compliant" digital dollar products will become the core trend of future financial innovation. Anchorage's actions put it on the same competitive track with existing US dollar stablecoin issuers such as Circle and PayPal, as well as traditional banks such as JPMorgan Chase and Citigroup that are exploring tokenized deposits. This competition will revolve around who can better provide compliant, efficient, interest-bearing and trusted digital dollars.
Crypto tax rules remain unchanged after GENIUS Act, still taxed as property
Quick Facts
Despite the new regulatory framework introduced by the GENIUS Act and the House-passed CLARITY Act, the IRS still taxes cryptocurrencies as “intangible property,” maintaining the tax position established in 2014;
Crypto assets are not subject to the wash sale rules for securities, nor do they enjoy the Section 1256 benefits for commodity transactions, with the only exception being Bitcoin futures contracts, which are eligible for a 60/40 capital gains split and year-end mark-to-market.
The GENIUS Act focuses on the reserve, audit, and disclosure requirements for stablecoin issuers, while the CLARITY Act clarifies the regulatory scope of the SEC and CFTC, but neither changes the tax classification of crypto assets.
Why it matters
The unchanged tax rules have mixed benefits and disadvantages for traders. Crypto investors can continue to use the no-wash sale rules for more flexible loss harvesting, but they cannot choose Section 475 mark-to-market valuation or enjoy the 20% QBI exemption. Bitcoin ETF investors (such as Nasdaq IBIT and CBOE's FBTC) are still considered to hold property directly for tax purposes. This shows that even with the increasingly improved regulatory framework, crypto tax rules still need to be adjusted by special legislation, and traders need to formulate tax strategies accordingly.
Prediction market Polymarket acquires CFTC license to return to the United States and may issue its own stablecoin
Quick Facts
Polymarket acquired QCEX, a Florida CFTC-licensed exchange, and its clearing agency QC Clearing for $112 million, providing a legal channel for returning to the U.S. market and will serve U.S. users as a "licensed platform";
The liquidity and trading volume of Polymarket's political prediction market have exceeded those of many traditional derivatives platforms, and it was particularly active before the US election, indicating a strong demand from users for compliant and efficient prediction platforms.
Polymarket is considering issuing its own stablecoin as the second growth engine for the platform's value chain integration, internalizing the interest income from "float" generated by user trading funds, enhancing the profit model and improving capital retention and user stickiness.
Why it matters
Against the backdrop of the Trump administration's return to expectations and the CFTC's regulatory openness, the prediction market is transforming from a marginal tool to a mainstream financial infrastructure. Polymarket's compliance strategy proves that in the era of high-frequency trading and information gaming, only platforms with trading depth, compliance channels, and capital control can continue to occupy the minds of users. The "prediction market + own stablecoin" model will create a stronger ecosystem within the regulatory framework and build a more lasting competitive advantage for the next round of market cycles.
Gauntlet proposes to build a sustainable on-chain regulatory framework to balance DeFi regulation and innovation
Quick Facts
The US crypto regulation has made breakthrough progress: the first cryptocurrency bill was signed into law, the GENIUS Act was passed by both houses, and the SEC chairman considered providing "innovation exemptions" for DeFi intermediaries and issuers;
The Gauntlet team proposed a regulatory framework based on its experience in managing $1.3 billion in assets: 1) Recognize the fundamental differences between DeFi’s self-custodial, permissionless architecture and traditional finance; 2) Establish clear standards including disclosure requirements and safe harbor clauses;
Supervision needs to focus on three key areas: disclosure and transparency (clear risk notification), responsibility and accountability (allocation of responsibilities based on direct control), and compliance of self-hosted systems (developing monitoring standards suitable for a non-intermediary environment).
Why it matters
The current financial regulatory framework is designed based on the traditional intermediary model and cannot adapt to the new paradigm of DeFi's permissionless, self-custodial and autonomous transactions. As DeFi continues to reshape the financial landscape, it is critical to develop regulatory rules that balance consumer protection and innovation. Reasonable regulation will enhance ecosystem sustainability, security, and broader institutional adoption while maintaining DeFi's core advantages of reducing costs, eliminating friction, and providing universal financial access. The traditional American ideals of free commerce, personal autonomy, and respect for property rights are highly consistent with the vision of DeFi, which provides a unique opportunity to establish a forward-looking regulatory framework.
Tether CEO confirms that the US market layout has made significant progress and plans to launch an institutional-grade stablecoin
Quick Facts
Tether CEO Paolo Ardoino said in an interview with Bloomberg that the company’s plan to enter the U.S. market is “progressing smoothly” and that it expects to announce specific plans for the institutional market in the coming months;
The news comes after President Trump signed the GENIUS Act last week, which establishes a federal framework for stablecoin regulation in the United States and requires large stablecoin issuers to undergo annual audits;
Tether revealed in April that it plans to launch a U.S.-based stablecoin designed specifically for institutional clients, focusing on providing faster settlement services, which will be distinguished from its current world's largest USDT (market value of $162 billion).
Why it matters
Tether's entry into the U.S. market marks the response and adaptation of the world's largest stablecoin issuer to the new regulatory framework. With the signing of the GENIUS Act, the U.S. stablecoin market will usher in a more standardized development environment and will also face strong competition from traditional financial institutions jointly owned by JPMorgan Chase, Bank of America, Citigroup and Wells Fargo. Although Ardoino admitted that he might be at a disadvantage in the short term, he emphasized that Tether has better technology and market understanding. At the same time, Tether's new CFO is leading the company's efforts to achieve a complete audit, which will enhance its compliance and credibility in the U.S. market. Unlike its competitor Circle, Tether has made it clear that it has no intention of going public, showing its unique strategic positioning.
The Hong Kong Monetary Authority will release stablecoin rules next week, and the Chief Executive of the Hong Kong Monetary Authority warns against excessive speculation in stablecoins
Quick Facts
The Hong Kong Monetary Authority will release a summary of the rules for stablecoin issuers next week, while Hong Kong Monetary Authority Chief Executive Eddie Yue warned of excessive market euphoria;
The mere announcement of the intention to develop stablecoin business by many listed companies has triggered a surge in share prices and trading volume, but the HKMA will only grant a few stablecoin licenses in the initial stage;
The HKMA stressed that even if a license is obtained, there is uncertainty about the contribution of the stablecoin business to the company's short-term profits due to considerations of steady development and initial resource investment needs.
Why it matters
Hong Kong's stablecoin regulatory framework is about to be implemented, but the HKMA has issued a clear warning about the market "hype", indicating that the regulator will adopt a cautious and conservative attitude. Investors need to calmly evaluate the valuation of related companies and avoid blindly following the trend. This also implies that Hong Kong will adhere to the principle of prudence in developing the virtual asset ecosystem, and the issuance of licenses will be extremely strict, providing important decision-making references for market participants.
The American Bankers Association opposes Circle, Fidelity and Ripple obtaining trust bank licenses
Quick Facts
Five banking associations, including the American Bankers Association, wrote to the OCC to oppose Circle, Fidelity Digital Assets, Protego Trust, and Ripple’s applications for national trust bank charters;
The banking association criticized these crypto and stablecoin companies for not disclosing enough information for public comment, saying that 90% of the content of Circle and Ripple's application documents was edited and deleted;
The association believes that these applications are essentially a "backdoor" path to becoming a national bank and asked the OCC to delay approval until the applicants disclose more details of their business plans.
Why it matters
The tension between the banking and crypto industries has once again been highlighted, with traditional financial institutions attempting to prevent crypto companies from entering the regulated financial system through trust bank licenses. The OCC's decision will directly affect the compliance path and business expansion capabilities of major stablecoin issuers such as Circle, while reflecting the challenges faced by regulators in balancing innovation and financial stability. If crypto companies successfully obtain licenses, it will substantially enhance their legal status and competitiveness in the U.S. financial system.
Tether helps the US freeze $1.6 million in USDT related to terrorist financing
Quick Facts
Tether announced that it assisted the US authorities in freezing and reissuing approximately $1.6 million in USDT. These funds were related to the BuyCash financial network in the Gaza region, which was accused of being related to terrorist financing activities;
This action is part of a larger civil forfeiture case by the U.S. Department of Justice involving approximately $2 million in digital assets used to support designated terrorist organizations;
Tether has assisted law enforcement agencies around the world in freezing more than $2.9 billion in USDT associated with illegal activities, supported more than 275 law enforcement agencies in 59 jurisdictions, and frozen more than 2,800 wallets in cooperation with US agencies alone.
Why it matters
Tether's close cooperation with law enforcement agencies demonstrates the advantages of blockchain transparency in combating financial crime. Unlike traditional financial systems, USDT transactions can be tracked, frozen, and recovered, providing a new tool to combat terrorist financing. As the largest stablecoin issuer, Tether has demonstrated its compliance determination by actively cooperating with supervision, which helps improve its regulatory image and enhance the legal status of stablecoins in the global financial system.
