11.14 AI Daily Encryption regulation restarts, new opportunities and challenges coexist

1. Headlines

1. The U.S. government shutdown has ended after 43 days, and the cryptocurrency regulatory agency has resumed operations.

The US government resumed operations on November 13 after the longest shutdown in history lasting 43 days. This has a significant impact on the cryptocurrency industry, as the US Securities and Exchange Commission ( SEC ) and the Commodity Futures Trading Commission ( CFTC ) will begin reviewing crypto-related applications again.

During the shutdown, the SEC and CFTC were forced to suspend most of their operations, including enforcement, market oversight, and regulatory rule-making. Now that the government has reopened, the two major regulatory agencies need some time to process the backlog of applications accumulated over the past 43 days, which includes IPO applications from cryptocurrency exchanges, cryptocurrency ETF applications, and more.

SEC Chair Atkins revealed that the SEC plans to “establish a token classification system” in the coming months, based on the “Howey test” to classify tokens. CFTC Acting Chair Pham stated that the committee has been pushing for approval of leveraged spot cryptocurrency trading as early as December. This will pave the way for institutional investors to participate in the crypto market.

Industry analysts believe that the renewed intervention of regulators will bring more certainty to the cryptocurrency market, which is beneficial for attracting institutional funds and promoting the long-term healthy development of the industry. However, it may also increase regulatory pressure, requiring project parties to enhance compliance. Overall, the arrival of regulation is an inevitable path for the industry's development.

2. Chainlink breaks through the privacy computing dilemma, opening the doors of encryption for Wall Street.

The blockchain oracle Chainlink has announced that its privacy computing solution, Chainlink Privacy-Preserving Oracle Networks, is now live, clearing a significant barrier for traditional financial institutions to enter the cryptocurrency space.

Privacy computing allows multiple parties to perform calculations and interactions without disclosing sensitive data. This is crucial for institutions such as banks and asset management companies, as they need to protect the privacy of client information and portfolio data.

Chainlink's privacy computing solution ensures that computations and settlements between multiple parties can occur without disclosing any confidential data. This means that banks can perform programmable settlements without publicly revealing risk exposures, and asset management companies can verify execution without disclosing client portfolios.

Analysts believe that privacy computing addresses a major pain point for traditional financial institutions entering the crypto space, which will drive more institutions to engage in areas such as crypto asset management and derivatives trading. This not only provides institutional investors with new investment channels but also brings more liquidity to the crypto market.

At the same time, the emergence of privacy computing may also attract the attention of regulatory authorities. How to meet compliance requirements such as anti-money laundering while ensuring privacy will be a topic that needs to be addressed in the future.

3. In the wave of AI infrastructure financing, cryptocurrency mining companies have become “the second landlord of electricity”.

Under the funding frenzy for artificial intelligence infrastructure construction, cryptocurrency mining companies have become the “electricity landlords” of AI companies, leveraging their advantages in power resources.

Large technology companies such as Microsoft, Google, and Meta are leveraging financial engineering to create substantial leverage and build AI infrastructure. However, due to the relatively outdated infrastructure of the American power grid, it takes 2-4 years to integrate new heavy loads, making available electricity resources a scarce commodity across the industry.

The demand for generative AI has surged, leading cryptocurrency mining companies, which were among the first to regard electricity as a production factor, to step into the spotlight. Taking Iris Energy as an example, the company’s stock price soared nearly 600% this year due to its substantial available electricity resources.

Analysts point out that the power resource advantages of crypto mining companies make them the “sublandlords” of AI companies, allowing them to rent or sell electricity. This not only brings new sources of income to mining companies but also alleviates the power shortage issues faced by AI companies.

But there are also risks. Once the AI boom subsides, the power resources of cryptocurrency mining companies may face idleness. In addition, the instability of power supply may also affect the training effectiveness of AI models.

Therefore, cryptocurrency mining companies need to carefully assess the duration of the AI boom and develop long-term development strategies to avoid over-reliance on a single source of income.

( 4. Renowned hedge fund manager Michael Burry warns that the tech bubble is approaching.

Famous investor and big short Michael Burry ) Michael Burry ### has recently attracted significant attention in the market due to a series of actions. This hedge fund manager, who accurately predicted the 2008 financial crisis, seems to be preparing for a new crisis.

On November 10, Barry quietly deregistered his hedge fund Scion Asset Management from the U.S. Securities and Exchange Commission. He then issued a sharp warning about the tech bubble on social media and announced that he would reveal “heavyweight news” on November 25.

Burry has previously warned multiple times about the bubbles in the artificial intelligence (AI) and cryptocurrency sectors, believing that their valuations have seriously deviated from reality. His latest moves, amid the AI frenzy and high interest rates, undoubtedly exacerbate market concerns.

Analysts point out that Barry's “big short” identity gives his statements a high level of influence. If he really is bearish on tech stocks, it could trigger a sell-off.

On the other hand, some analyses suggest that Berli may simply be making adjustments to his investment portfolio, and his actions are being overinterpreted. After all, the long-term prospects of emerging technologies such as AI and cryptocurrencies are still worth looking forward to.

Regardless, Burry's “bombshell news” will become the focus of market attention. Investors need to remain cautious and closely monitor the developments.

( 5. Cryptocurrency social sentiment analysis tool Social Insight launched

MinionLab has launched a cryptocurrency social sentiment analysis tool called Social Insight, aimed at helping investors better grasp the pulse of the market.

Social Insight can aggregate discussion information about cryptocurrencies from mainstream social platforms such as Twitter, Reddit, Telegram, and Discord, including airdrop rumors, market sentiment, project credibility, and public opinion trends, and transform it into clear and understandable user insights.

This tool is supported by a decentralized user-driven network from MinionLab, which enables more accurate and stable data access compared to traditional centralized data scraping methods.

Analysts say that Social Insight can help investors identify market trends in a timely manner and seize investment opportunities. At the same time, by analyzing the sentiment on social media, it also helps to uncover the true situation of projects and mitigate investment risks.

At the same time, the emergence of Social Insight reflects that cryptocurrency investment is developing towards digitalization and intelligence. In the future, more investment analysis tools based on big data and artificial intelligence are expected to be introduced.

However, analysts also remind that any tool has its limitations, and investors should not overly rely on a single tool, but rather should use a combination of various analytical methods and maintain the ability to think independently.

2. Industry News

) 1. Bitcoin has fallen below the $100,000 mark, and market sentiment has plunged into “extreme fear”.

The price of Bitcoin fell below the key level of $100,000 on November 14, hitting a low of $98,000, a drop of over 20% from the high of $125,000, re-entering the technical bear market range. Data shows that long-term Bitcoin holders sold 8 BTC in the past 30 days, marking a new high since January 2024.

Analysts point out that this round of adjustment is mainly triggered by factors such as “cooling expectations for the Federal Reserve's interest rate cuts + technology stock sell-offs + weak ETF inflows,” shaking the core support for Bitcoin and worsening market sentiment. In the derivatives market, the trading volume of protective put options in the range of $90,000 to $95,000 has surged, indicating that institutions are positioning for deeper pullback risks.

Data shows that the cryptocurrency fear and greed index has dropped to 16 points, indicating an “extreme fear” stage with low investor confidence. Analysts believe that this pullback, accompanied by rapid deleveraging, institutional exits, and a cooling narrative, represents a structural repricing rather than a simple technical correction. If the $93,000 support line is confirmed to hold, the market may enter a bottoming phase; otherwise, caution is needed for the risk of falling into deeper liquidity zones.

2. The important support level for Ethereum is $3150, analysts are optimistic about the buying opportunity.

The price of Ethereum dropped to around $3200 on November 14, a decline of over 10% from the October high. On-chain analysts observed that 2.53 million ETH were traded at the $3150 level, which has become a key support area.

Analysts point out that the support level of $3150 and the resistance level of $3650 will be key for the bulls and bears. If the $3650 supply zone (which has over 1.5 million ETH) is effectively broken, a mid-term rebound is expected. Analysts believe that $3000 to $3300 is the best opportunity to buy the dip for ETH and recommend increasing spot holdings during the pullback.

Data shows that the daily selling pressure from long-term Ethereum holders continues to increase, but on-chain bullish sentiment prevails. Analysts warn that after the U.S. government ends a 43-day shutdown, the delayed release of economic data, combined with the approaching Federal Reserve's interest rate decision in December, significantly exacerbates market volatility risks.

3. Solana spot ETF raises $350 million, but the prediction market shows strong bearish sentiment.

Since the Solana spot ETF was launched on October 28, it has attracted a total inflow of $350 million, reflecting strong institutional demand. However, the SOL price is still forming a double bottom pattern in the key demand zone at $155, down 35% from the October high of $240.

Predictions from the market data indicate that the probability of Solana reaching a new all-time high before 2026 has plummeted to 7%, a stark contrast to the 60% optimistic sentiment when the ETF was approved in September. Technical analysis shows that SOL needs to achieve a 92% increase within six weeks to break the historical high of $295, with the liquidation wave following an overheated derivatives market becoming a major obstacle.

The prediction market gives SOL only a 10.4% chance of hitting a new high before the end of the year, reflecting extremely polarized market sentiment. Analysts believe that despite strong institutional demand, the likelihood of SOL breaking its historical high in the short term is low.

4. Musk announces that X Money will be launched soon, cryptocurrency concept stocks fall sharply.

On November 14, Musk stated that X has just launched a whole new set of communication features, including encrypted messaging, audio and video calls, and file transfers, with X Money set to launch soon. Previously, Musk has repeatedly supported Dogecoin, and his every move has become a key factor influencing the cryptocurrency market.

After the announcement, cryptocurrency stocks in the U.S. stock market generally fell, with a drop of 7.34%, a drop of 7.13%, BTBT down 6.69%, MINE down 6.29%, and BTCS down 5.7%. Analysts point out that Musk's influence on Dogecoin through Twitter and the analysis of Dogecoin price fluctuations show that the celebrity effect in the cryptocurrency market cannot be ignored.

At the same time, Coinbase announced that it will suspend trading of the AI16Z perpetual contract on November 15. US stock cryptocurrency mining concept stocks such as Farms, IREN Ltd, and Applied Digital all fell by more than 10%. Overall, cryptocurrency-related concept stocks are under significant pressure due to the dual impact of Musk's news and the decline in the market.

5. Notable Investors: The top of the 4-year crypto cycle is emerging, and the AI bubble in the US stock market may dominate the rise and fall.

The co-founder of Alliance DAO stated in a social media post that despite macro factors such as the Federal Reserve's quantitative easing indicators pointing to a market uptrend, intuitively “it feels like everything is over.” He described crypto as a “self-fulfilling asset class,” emphasizing the inevitability of the four-year cycle prediction, which has left the market at a frustrating crossroads.

As a long-term optimist, the co-founder has been feeling uneasy about the crypto market since mid-September, noting that most smart traders and long-term investors have turned bearish. He believes that AI is the only key factor dominating the cycle, with an influence far greater than liquidity indicators and technical signals. He warns that if the AI bubble bursts, the entire market will crash; conversely, if AI-related stocks continue to rise, the bears will be entirely wrong.

The co-founder compared Nvidia to Bitcoin in the crypto space, pointing out that when AI stocks rise, funds will flow out of other assets like crypto, leading to a decline in crypto, and vice versa, creating a binary pattern of “AI stocks against everything.” This view has sparked widespread discussion in the industry.

3. Project News

1. Aztec launches token public sale, implementing enterprise-level privacy computing with a four-layer architecture.

Aztec is a privacy public chain project aimed at solving the challenges of privacy computing on Ethereum. The project was launched in 2021, incubated by Consensys, and has received investments from institutions including Polychain Capital and Coinbase Ventures.

Aztec has recently announced the launch of the public sale of the AZTEC token, with a total supply of 10.35 billion tokens. This sale adopts the continuous clearing auction protocol ###CCA###, jointly designed by Uniswap and Aztec, supporting transparent auctions and fair price discovery, preventing market manipulation. Aztec is the first project to use this protocol, and the public sale will take place in December, potentially setting a new benchmark for DeFi issuance.

Aztec adopts a four-layer architecture to achieve enterprise-level privacy computing, which is seen as the future development direction of blockchain technology. The first layer is the Ethereum mainnet, the second layer is the Rollup scaling solution, the third layer is zero-knowledge proof, and the fourth layer is privacy DApps. This architecture supports privacy protection, high throughput, and scalability, and is expected to support over 10,000 commercial applications by 2026.

Several institutions are optimistic about the development prospects of Aztec. Polychain Capital believes that privacy computing is a key infrastructure for blockchain, and Aztec is expected to become a leader in this field. Coinbase Ventures stated that Aztec's innovative architecture can address the two major pain points of privacy and scalability, which will help promote the large-scale application of blockchain.

( 2. Pieverse has partnered with Moonbirds, and holders of the co-branded SBT will receive airdrop rewards.

Pieverse is an on-chain payment protocol that allows users to make global payments using a stablecoin pegged to the US dollar at a 1:1 ratio, suitable for high-frequency, small-value transactions. The project was launched in 2023 and was founded by a former Visa engineer, having received investments from institutions such as Polychain Capital and y Capital.

Pieverse has recently announced a partnership with the NFT project Moonbirds, marking Moonbirds' first entry into the BNB Chain ecosystem. According to the announcement, users holding the Pieverse x Moonbirds soul-bound token )SBT### will be eligible for Pieverse's airdrop rewards.

The collaboration aims to promote the integration of NFTs and utility tokens, providing NFT holders with more practical uses. Pieverse stated that in the future, it will cooperate with more well-known NFT projects, allowing NFTs to not only have collectible value but also play a role in payment and other scenarios.

Multiple institutions are optimistic about this collaboration. Polychain Capital believes that the combination of NFTs and utility tokens is the future development trend, and Pieverse is leading this innovation. y Capital has stated that Pieverse provides a new value representation for NFT holders, which helps promote the development of the NFT market.

( 3. The first distribution of incentives from the Orama Ecosystem Fund, Kingnet AI received a token reward of $1 million.

Orama is an ecological fund aimed at We innovation projects, initiated by the Orama Protocol, designed to support innovative projects in cutting-edge fields such as DeSci, AI, and DEPIN. The fund was launched in 2023 and has received investments from institutions including Polychain Capital and y Capital.

The Orama Eco Fund has recently released the first batch of Grants incentives, among which Kingnet AI received a reward of $1 million in $PYTHIA tokens, and the spatial intelligence project ZENO received $200,000 in $PYTHIA incentives.

Kingnet AI is an AI-driven game creation engine that significantly reduces game development costs through natural language technology. This reward will deepen the cooperation between both parties in terms of technology and ecology. The ZENO project is promoting “spatial intelligence” from theory to practice, gaining support from Orama.

Orama stated that the fund will continue to screen projects with innovative technologies and clear business models, providing funding, resources, and full-chain support, with a focus on cutting-edge fields such as DeSci, AI, and DEPIN.

Multiple institutions have expressed optimism about the Orama ecosystem fund. Polychain Capital believes that the fund provides valuable support for innovative projects and helps promote We technology innovation. y Capital stated that the investment layout of the Orama ecosystem fund is highly forward-looking and is expected to uncover potential projects.

4. Economic Dynamics

) 1. Federal Reserve officials collectively adopt a hawkish stance, further room for interest rate cuts may be limited.

The current economic environment presents a complex situation. The annualized GDP growth rate for the third quarter was 2.6%, a decline from the previous quarter. Although the inflation rate has cooled somewhat, it remains above the Federal Reserve's target level of 2%. The labor market remains robust, with the unemployment rate holding steady at a low 3.5%.

Recently, Federal Reserve officials have made a series of hawkish statements, suggesting that further rate cut potential may be limited. Minneapolis Fed President Kashkari stated that he does not support the Fed's decision to cut rates in October, but he remains cautious about the best course of action for the December meeting. The fundamental resilience of the U.S. economy is stronger than expected, and the Fed should pause rate cuts at the October meeting.

Federal Reserve's Hamak said that monetary policy still needs to remain tight to curb inflation and bring it back to target levels. Given the challenges facing the Federal Reserve's dual mandate of inflation and employment, this is a difficult time for monetary policy. Hamak also pointed out that the weakness of the dollar is not a cause for concern, as this year's weakness has merely brought the dollar closer to its theoretical fair value.

Moussalem's attitude is relatively moderate, but he still indicated that there is limited room for further easing of monetary policy. He stated: “Looking ahead, we need to act cautiously. I believe we need to continue to exert pressure on inflation that is above the target while providing some support for the labor market.”

Investors reacted differently to the hawkish comments from Federal Reserve officials. Some analysts believe that, given the still weak economic data, the Federal Reserve may continue to slightly cut interest rates in December. However, there are also viewpoints suggesting that the statements from hawkish officials may signal a pause in the rate-cutting cycle. Overall, the market has divergent expectations for the Federal Reserve's policy meeting in December.

Goldman Sachs chief economist Jan Hatzius stated: “The challenge facing the Federal Reserve is to seek a balance between inflation and employment. While inflation has cooled somewhat, it remains far above target levels. Meanwhile, the labor market remains strong. This makes the Fed's decision-making even more difficult.”

2. The lack of economic data after the U.S. government restart may affect the Federal Reserve's policy decisions.

The U.S. government has recently reopened after a 43-day shutdown, but the missing economic data during this period may affect the Federal Reserve's policy decisions.

During the shutdown, agencies such as the U.S. Bureau of Labor Statistics and the Department of Commerce were unable to release key economic data, including inflation, employment, retail sales, and manufacturing data. This data is crucial for the Federal Reserve to assess economic conditions and formulate appropriate monetary policy.

Bob Savage of Bank of New York Mellon stated: “The Federal Reserve and the market are both 'acting blindly'.” He pointed out that in the absence of key economic data, the Fed's “dot plot” may attract more attention than the interest rate decision itself.

“Rate strategists at Société Générale pointed out in a report that as the U.S. government ends its shutdown, interest rate volatility may rise again, with U.S. Treasury yields leading the fluctuations. They stated: 'As the economic mechanism restarts, the U.S. dollar interest rates are expected to show the greatest volatility.'”

Investors have varied reactions to the absence of economic data. Some believe that this may delay the Federal Reserve's interest rate cut plans due to a lack of sufficient information to assess the economic situation. However, there is also a view that the Federal Reserve may choose to remain inactive for the time being, waiting for more data to be released.

Goldman Sachs economist Spence believes: “Although the lack of data will pose certain difficulties for the Federal Reserve's decision-making, we expect they will adopt a cautious approach and temporarily keep interest rates unchanged. Once more information is obtained, the Federal Reserve will make corresponding adjustments based on the actual situation.”

Overall, the lack of economic data undoubtedly increases the uncertainty of the Federal Reserve's policy meeting in December. The market will closely monitor the release of future data to better predict the Fed's next move.

3. Asset management giants warn: Economic slowdown may prompt the Federal Reserve to cut interest rates in December.

Despite recent hawkish remarks from Federal Reserve officials, some asset management companies believe that signs of an economic slowdown may prompt the Fed to continue lowering interest rates in December.

Annie Walsh, Chief Investment Officer of Guggenheim Investments with assets under management of $357 billion, stated that there is increasing evidence that parts of the economy are slowing down. She noted that the company is closely monitoring a “divided economy”—low-income consumers and small businesses seem to be struggling, while the wealthy and large corporations are thriving.

“This has formed a dual-speed economy, and the beige book truly reflects the overall state of the economy, which has indeed become increasingly weak,” Walsh said.

Another asset management giant, BlackRock's senior strategist Rick Rieder, shares a similar view. He stated that although the job market remains strong, the data from the manufacturing and housing markets is concerning. “We are starting to see signs of a slowdown in certain areas of the economy.”

Investor concerns about the economic slowdown mainly stem from some recent economic data. In October, the manufacturing PMI fell to 46.6, the lowest since May 2020, indicating that the manufacturing sector is contracting. At the same time, October housing starts and building permit data also fell short of expectations.

However, some analysts are skeptical about the claims of an economic slowdown. Goldman Sachs economist Hertz believes that while the economy may slow down in the coming quarters, there are currently no signs of a recession. “We need more evidence to confirm whether the economy is really slowing down.”

Overall, the market has divergent expectations regarding the Federal Reserve's December meeting. Some institutions believe that an economic slowdown may prompt the Federal Reserve to continue cutting interest rates, while others think that inflationary pressures remain significant, and the Federal Reserve might pause its rate-cutting cycle. This divergence reflects the complexity of the current economic situation, and the Federal Reserve needs to seek a balance between employment and inflation.

4. Experts: The Federal Reserve faces a difficult choice, the probability of cutting interest rates and maintaining the status quo is about the same.

Due to the recent government shutdown leading to the absence of official data, the Federal Reserve faces a difficult challenge at its December policy meeting. FPMarkets Chief Market Analyst Aaron Hill stated in a report that there are divisions within the Federal Reserve and a cautious stance is being maintained. Although some officials support a rate cut, “meaningful hawkish repricing has already occurred.”

LSEG data shows that the probability of interest rate cuts and maintaining the current rate in the currency market is roughly equal. Hill believes that the inflation rate is too high, reaching 3%. He added, “I think we need to continue to apply pressure on inflation above the target while providing some support for the labor market.”

On the other hand, Goldman Sachs economist Jan Hatzius believes that the Federal Reserve may slightly lower interest rates by 25 basis points in December. He stated: “Although inflation has cooled somewhat, it is still far above the target level. At the same time, the labor market remains strong. The Federal Reserve needs to seek a balance between the two.”

Investors have differing expectations regarding the Federal Reserve's December meeting, primarily stemming from varying assessments of the economic outlook. Some believe that signs of an economic slowdown are becoming increasingly evident, and the Federal Reserve needs to further cut interest rates to stimulate the economy. However, there are also views suggesting that inflationary pressures remain significant, and the Federal Reserve should pause the rate-cutting cycle.

In addition, the data gaps during the government shutdown have increased uncertainty. Bob Savage from BNY Mellon stated that both the Federal Reserve and the market are “acting blindly,” and the dot plot may receive more attention than interest rate decisions.

Overall, the Federal Reserve faces a difficult choice at its December meeting. It needs to weigh the balance between inflation and employment while considering signs of an economic slowdown. Given internal divisions and missing data, the Federal Reserve may take a cautious approach, with possibilities for both a rate cut and holding steady. The market will closely monitor the release of future data.

5. Regulation & Policy

1. The SEC plans to establish a token classification system to clarify the attributes of crypto assets.

The chairman of the SEC, Atkins, recently revealed that the SEC plans to “establish a token taxonomy” in the coming months, anchored by the Howey test, to clarify the attributes of crypto assets.

The SEC has long relied on the Howey Test to determine whether a certain token constitutes a security. However, the diversity of cryptocurrency assets and their varying attributes has resulted in gray areas in regulation. To eliminate regulatory vacuums, the SEC has decided to establish a token classification system and formulate differentiated regulatory policies for different types of cryptocurrency assets.

This initiative aims to provide greater regulatory certainty for investors. Once the token classification system is established, investors will have a clearer understanding of the categories their crypto assets belong to and the regulatory constraints they are subject to. At the same time, this will also create a clearer compliance environment for crypto businesses.

Market participants generally welcome the SEC's plan. Fenton, the Chief Policy Officer of cryptocurrency exchange Coinbase, stated that the token classification system will bring much-needed regulatory clarity to the industry. However, she also emphasized that the SEC needs to maintain sufficient communication with the industry when formulating specific policies to avoid implementing overly stringent regulatory measures.

2. CFTC pushes for approval of leveraged spot cryptocurrency trading

The acting chairman Pham of the Commodity Futures Trading Commission ### CFTC ( stated that the commission has been pushing for the approval of leveraged spot cryptocurrency trading as early as December.

The CFTC previously stated that it would study whether to allow cryptocurrency spot exchanges to offer leveraged trading services. If approved, this would mean that investors could engage in margin trading in the cryptocurrency spot market, potentially further increasing liquidity in the crypto market.

Pham stated that the CFTC is accelerating the approval process and is expected to make a final decision in December. She explained that leveraged trading is crucial for the development of the cryptocurrency market, as it can attract more institutional investors and drive the market towards maturity.

However, this move has also sparked some controversy. FTX founder Bankman-Fried expressed concerns, believing that leveraged trading could increase market risks and lead to substantial losses for investors. He urged the CFTC to establish strict risk control measures before approving leveraged trading.

Veteran analyst Novogratz holds a relatively optimistic view. He believes that the cryptocurrency market has matured significantly, and investors' risk awareness is continuously increasing. Moderate leveraged trading is beneficial for enhancing market activity, and as long as regulation is in place, risks are manageable.

) 3. The Monetary Authority of Singapore advances the Ensemble project to support the trading of tokenized assets.

The Monetary Authority of Singapore ( MAS ) is advancing a project called “Ensemble” aimed at establishing a regulatory framework for the trading of tokenized assets. The project is led by the Monetary Authority of Singapore and involves participation from major financial institutions such as DBS Bank, OCBC Bank, and UOB.

Tokenized assets refer to the practice of converting physical assets or rights certificates into digital tokens, which can significantly improve the efficiency of asset circulation. However, due to the involvement of multiple regulatory areas, the trading of tokenized assets is still in a legal gray area.

The Monetary Authority of Singapore aims to establish a comprehensive regulatory framework through the Ensemble project, clarifying the compliance requirements for the issuance, trading, and settlement of tokenized assets, creating a favorable development environment for relevant institutions.

The project will first pilot tokenized securities and tokenized goods. The Monetary Authority is drafting relevant regulations, which are expected to be announced in the first half of 2024. At that time, Singapore will become the first country in the world to provide a complete regulatory framework for the trading of tokenized assets.

Industry insiders welcome this. Ravi, the head of Deutsche Bank's Singapore branch, believes that tokenized assets have the potential to completely change the traditional financial business model, improving efficiency and reducing costs. Once the regulatory framework is in place, the development of tokenized assets will usher in new opportunities.

However, some individuals have expressed concern over the strictness of regulations. Lim, the compliance officer of a cryptocurrency exchange, stated that overly stringent regulations could stifle innovation and hopes that the Monetary Authority of Singapore will maintain an open and inclusive attitude when formulating specific rules.

4. The UK calls for regulation of the pound stablecoin to avoid falling behind the US and Europe.

The CEO of British fintech company ClearBank, Fairless, recently called for the UK to regulate GBP stablecoins in order to maintain its global competitiveness in the financial sector.

Stablecoins are cryptocurrencies that are pegged to sovereign currencies, featuring advantages such as value stability and efficient settlement, and are regarded as important tools for future payments and settlements. Currently, both the United States and the European Union have initiated relevant regulatory processes.

Fairless stated that if the UK does not promptly introduce regulatory policies for a pound stablecoin, it may fall behind the US and the EU in the field of financial innovation. He emphasized that stablecoins are crucial for real-time international payments, and the UK, as a financial center, should lead the development in this area.

The Bank of England's Digital Currency Director Cunliffe agrees with this. He believes that stablecoins are expected to improve the efficiency of cross-border payments, reduce costs, and align with the interests of the UK. The Bank of England is studying the relevant regulatory framework, but it will take time to fully assess the risks.

However, some experts hold a cautious attitude towards the prospects of stablecoins. Professor Rajan from the University of Cambridge's Finance Department stated that there are still many uncertainties in the development of stablecoins, such as the reliability of algorithmic stabilization mechanisms and the trustworthiness of the operators, which require extra caution. He suggested that the UK could take the lead in trial implementations and gradually advance the regulatory process.

Overall, the UK government and financial institutions are aware of the importance of stablecoins, but there are still differences regarding the specific regulatory methods and timelines. Striking a balance between promoting innovation and preventing risks will be a significant challenge.