6.5 AI Daily Report: Financial Storms Resurge: Policy Games and New Opportunities in Crypto Assets

1. Headlines

1. Trump calls for the complete elimination of the debt ceiling, causing a stir in the political arena.

Former President Trump called for the complete elimination of the federal debt ceiling in a social media post to avoid economic turmoil. This proposal was endorsed by Democratic Senator Warren, causing a stir in the political arena.

"I am very pleased to announce that, after all these years, I have finally agreed with Democratic Senator Warren on something: the debt ceiling should be completely lifted to avoid economic catastrophe," Trump said in the post. It's too dangerous to put it in the hands of politicians who want to use the debt ceiling for political gain, even though it may have terrible consequences for our country ( and even indirectly on the world's ). "

The debt ceiling has always been a focal point in American politics. Supporters argue that removing the debt ceiling can avoid political gamesmanship and ensure the normal functioning of the government. Opponents, however, worry that unlimited borrowing will exacerbate the fiscal deficit and affect the credit rating of the United States.

Analysts point out that Trump's move aims to consolidate his voter base and build momentum for the 2028 election. Warren's support may stem from party interest considerations. Regardless of the motivations, this call will trigger a new round of fierce clashes between the two parties over fiscal policy.

2. The Ethereum Foundation announces new financial policies, ETH expenditures will be significantly reduced.

The Ethereum Foundation has announced a new financial policy, planning to reduce annual operating expenses approximately linearly over the next five years, ultimately aiming to maintain a long-term benchmark level of 5%.

According to the announcement, in 2025, the Ethereum Foundation will spend about 15% of its treasury funds and plans to maintain a legal buffer for expenditures over 2.5 years. Throughout the year, the Foundation will regularly assess the degree of deviation of fiat-denominated assets in the treasury relative to the operational expenditure buffer target and will decide whether it needs to sell Ethereum and the quantity to sell in the next three months based on this.

This move is seen as an important step for the Ethereum Foundation to strengthen financial discipline and improve the efficiency of fund usage. Analysts believe that reducing expenses will help the foundation better allocate funds to support the development of the Ethereum ecosystem.

At the same time, some community members have expressed concerns that excessive budget cuts may impact the normal operations of the foundation and weaken support for Ethereum development. Overall, how the new policy will be implemented and its impact on the Ethereum ecosystem remains to be seen.

3. Hong Kong will allow cryptocurrency derivative trading, expanding the virtual asset market.

The Hong Kong Securities and Futures Commission plans to allow professional investors to trade cryptocurrency derivatives, expanding the local virtual asset market. This decision comes after calls from the industry for clearer regulation, as the trading volume of the cryptocurrency derivatives market significantly exceeds that of spot trading.

This move is seen as an important step for Hong Kong to attract cryptocurrency enterprises. Analysts believe that allowing derivatives trading will bring new opportunities to Hong Kong and help enhance its status as a cryptocurrency hub.

At the same time, there are views that regulatory agencies should act prudently, strengthen risk management, and avoid excessive speculative behavior. After all, the cryptocurrency derivatives market has high volatility and uncertainty.

In any case, Hong Kong's move will bring new developmental opportunities to the global cryptocurrency industry. In the future, whether Hong Kong can attract more cryptocurrency companies to settle largely depends on the level of openness and completeness of regulation.

4. JPMorgan accepts Bitcoin ETFs as loan collateral

Wall Street giant JPMorgan Chase will begin offering financing services backed by BlackRock's iShares Bitcoin Trust (I) shares in the coming weeks. This policy will be available to all customer groups worldwide, treating individual retail investors and institutional investors equally.

This move marks a significant shift in the attitude of traditional finance towards crypto assets and further indicates that the deep integration of digital assets with the mainstream financial system is accelerating. Analysts believe that this action by JPMorgan will set an example for other banks and promote the application of crypto assets in the traditional financial sector.

At the same time, there are views that accepting crypto assets as collateral carries certain risks, and banks need to strengthen risk control measures. After all, the prices of crypto assets are highly volatile, and a sudden crash may lead to losses for banks.

Overall, JPMorgan's move has opened a new chapter in the integration of traditional finance and crypto assets. In the future, whether other banks will follow suit and how to manage risks will be the focus of industry attention.

5. The price of Dogecoin plummeted, causing panic in the community.

The price of the well-known altcoin Dogecoin has plummeted by over 12% in the past week, causing panic within the community. Analysts warn that if Dogecoin cannot stabilize at the key support level of $0.2, it may further decline.

Dogecoin has long been a leader in the altcoin space, boasting a large community base. However, in recent times, the cryptocurrency market has continued to be sluggish, and Dogecoin cannot escape the fate of decline.

Some investors are pessimistic about the prospects of Dogecoin, believing it has lost its momentum for growth. However, there are also holders who remain optimistic, stating that as long as the community stands united, Dogecoin still has the potential to regain its upward trend.

In any case, the trend of Dogecoin will have a profound impact on the entire altcoin sector. If it completely loses ground, it could trigger a crisis of confidence in altcoins; conversely, if it regains momentum, it is likely to revive the altcoin craze.

Overall, the future of Dogecoin is highly anticipated. Its performance not only concerns itself but will also determine the development direction of the entire altcoin sector.

2. Industry News

1. Bitcoin price is under short-term pressure, but the long-term outlook remains bullish.

The price of bitcoin has fallen slightly over the past 24 hours and is currently trading around $105,000. Analysts pointed out that the pullback was mainly affected by the uncertainty of the Trump administration's tariffs, and investor sentiment turned cautious. However, in the long run, institutional investors continue to buy bitcoin, and the Federal Reserve may cut interest rates this year, which will bring a new round of upward momentum to bitcoin.

Tom Lee, a well-known analyst, said that although Bitcoin may face some pressure in the short term, in the long run, Bitcoin's attributes as digital gold will become more and more prominent. He expects bitcoin to break through the $150,000 mark by the end of 2025. At the same time, some institutional investors are also optimistic about the long-term prospects of bitcoin, believing that bitcoin will become one of the mainstream investment tools in the future.

2. Ethereum spot ETFs continue to attract funding.

The Ethereum spot ETF has recorded continuous net inflows over the past week, demonstrating institutional investors' preference for the Ethereum ecosystem. Data shows that from May 16 to June 3, the Ethereum spot ETF has recorded net inflows for 12 consecutive days, setting the longest streak of net inflows since 2024.

Analysts believe that the continuous attraction of funds to Ethereum spot ETFs is mainly due to the ongoing development and innovation of the Ethereum ecosystem. As a leading smart contract platform, Ethereum occupies an important position in emerging fields such as DeFi and NFTs. In addition, the upcoming "Ethereum 2.0" upgrade is highly anticipated by the market and is expected to further enhance network performance and scalability.

However, some analysts remind that the continued net inflow of Ethereum spot ETFs may drive up ETH prices, thereby increasing investment risks. Investors need to closely monitor the subsequent fund flows of the ETFs and prudently seize investment opportunities.

3. The differentiation in the altcoin market is intensifying, and investors need to invest cautiously.

In this bull run, there has been a clear divergence in the altcoin market. Some popular altcoins such as Solana and Toncoin continue to be favored by funds, and their prices are strong. Other once-sought-after altcoins have seen a significant pullback.

Analysts point out that the main reason for the differentiation in the altcoin market is that investors have a clearer understanding of the actual applications and development prospects of projects. Projects that can provide real application scenarios and have active communities have seen a continuous inflow of funds; while projects lacking actual application implementation and merely relying on conceptual hype face the risk of being abandoned.

Investors need to invest cautiously in the altcoin market, gaining a deep understanding of the actual situation of the projects and evaluating their long-term development potential. Excessive hype may bring significant investment risks. At the same time, investors should also closely monitor changes in regulatory policies, as regulation will have a major impact on the altcoin market.

4. Cryptocurrency derivatives trading is active, and Hong Kong may open up regulation.

According to reports, the Hong Kong Securities and Futures Commission plans to allow professional investors to trade cryptocurrency derivatives, expanding the local virtual assets market. This decision comes after the industry called for clearer regulations, as the trading volume of the cryptocurrency derivatives market has significantly surpassed that of spot trading.

Analysts believe that it is of great significance for Hong Kong to open up cryptocurrency derivatives trading. On the one hand, this will meet the investment needs of professional investors and promote the development of Hong Kong's cryptocurrency market. On the other hand, it will also promote the improvement of Hong Kong's cryptocurrency regulatory framework and create a good environment for the healthy development of the industry.

However, some analysts remind that cryptocurrency derivatives trading carries high risks, and investors need to have a thorough understanding of derivatives products and strictly control risks. At the same time, regulatory agencies also need to strengthen the regulation of the derivatives market to prevent risks such as excessive speculation.

Overall, the cryptocurrency market has maintained an active development trend in the first half of 2025, with new progress and changes in various sectors. Investors need to remain rational and prudent, comprehensively assess risks and opportunities, and seize favorable investment opportunities.

3. Project News

1. Sui Network launched the SuiPlay gaming platform to accelerate the construction of the We gaming ecosystem.

Sui Network is an emerging Layer 1 blockchain project founded by former Meta blockchain researchers, aimed at providing high-performance and low-cost infrastructure for distributed applications in the We era. Recently, Sui launched the SuiPlay gaming platform, marking an important step in its efforts to build the We gaming ecosystem.

SuiPlay is a platform aimed at game developers, providing one-stop tools and services to help developers quickly build and deploy We games. The platform integrates Sui's underlying technologies, such as parallel execution engines and native asset ownership, offering high throughput and low latency performance support for game development. Meanwhile, SuiPlay also provides functions like game asset management and market integration, laying the foundation for the development of the gaming ecosystem.

The emergence of Sui Network has injected new vitality into the We game ecosystem. The traditional game industry has long faced problems such as centralization and low efficiency, and blockchain-based We games are expected to completely change this pattern. With its excellent performance and innovative design, Sui provides an efficient and secure infrastructure for game developers, which is expected to promote the vigorous development of the We gaming ecosystem.

Industry insiders are optimistic about Sui's prospects. Multicoin Capital, a well-known investment institution, said in the latest report that Sui is expected to become a key infrastructure in the We game ecosystem, and spoke highly of its future development potential. As more game projects join the Sui ecosystem, it is expected that more innovative We game applications will emerge in the future.

2. Aptos launches the Aptos Builders Incentive program to attract developers to join the ecosystem.

Aptos is an emerging Layer 1 blockchain project founded by former Meta employees to provide high-performance, secure, and reliable infrastructure for the We era. In order to further expand the influence of the ecosystem, Aptos recently launched the Aptos Builders Infinite program, which provides financial and technical support to developers and attracts more outstanding projects to join the Aptos ecosystem.

The Aptos Builders Incentive program lasts for one year, with a total reward amount of up to $23 million. This program is aimed at various We projects, including DeFi, NFTs, DAOs, etc. As long as the projects are built on the Aptos network, they can apply for funding and technical support. In addition to financial rewards, Aptos will also provide selected projects with technical guidance, marketing promotion, and comprehensive support to help the projects develop rapidly.

The launch of the program aims to accelerate the construction of the Aptos ecosystem and attract more outstanding projects and developers to join. As an emerging public chain, Aptos has obvious advantages in terms of performance and security, but the ecological construction is still in its infancy. Through the Builders Infinite program, Aptos is expected to quickly accumulate ecological projects and enhance its influence.

Industry insiders have welcomed the plan. Renowned investment firm Andreessen Horowitz stated in its latest report that Aptos has the potential to become the infrastructure for We, and the Builders Incentive program will help accelerate its ecological development. With more outstanding projects joining, the Aptos ecosystem is expected to flourish, contributing more innovative applications to the We era.

3. Mina Protocol releases Zinc upgrade, enhancing privacy protection and scalability.

Mina Protocol is a first-layer blockchain project focused on privacy protection and scalability. Recently, Mina released a major upgrade called Zinc, which has brought significant improvements in privacy protection, scalability, and other aspects, providing a safer and more efficient infrastructure for distributed applications in the We era.

At the heart of the Zinc upgrade is the introduction of the zk-SNARK Recursive Proof Composition technology. This technology can combine multiple zk-SNARK proofs into a new proof, which drastically reduces the proof size per transaction and improves the scalability of the network. At the same time, Zinc also optimizes the privacy protection mechanism to ensure that user transactions are completely anonymous, completely eliminating the risk of transaction privacy being tracked.

Mina Protocol has been committed to building highly private and scalable infrastructure for the We era. The launch of the Zinc upgrade marks an important step for Mina towards this goal. With innovative technology, Mina provides unprecedented privacy protection and performance support for distributed applications, which is expected to drive the thriving development of the We ecosystem.

Industry insiders are highly concerned about the Zinc upgrade. In the latest report, Messari, a well-known analyst firm, pointed out that privacy protection and scalability are the core needs of the We era, and Mina Protocol has made breakthroughs in both areas with the Zinc upgrade, and is expected to become an important member of the We infrastructure in the future.

4. Celestia launches Modular blockchain space auction, promoting the development of modular blockchains.

Celestia is an innovative project that aims to drive the modular development of blockchain. Recently, Celestia released the Modular block space auction, which is the first attempt in the blockchain industry to auction the block space, marking an important step in the development of modular blockchains.

In traditional blockchain architectures, all nodes are required to store the entire blockchain data, which imposes a heavy burden on storage and bandwidth. Celestia has proposed a brand new modular architecture that splits the blockchain into multiple independent data layers, with each layer only needing to store relevant data, significantly reducing storage and bandwidth requirements.

The Modular block space auction is an innovative mechanism launched based on this architecture. Through the auction, anyone can purchase block space on Celestia to deploy their own blockchain modules. This not only provides developers with great flexibility but also aids in the rapid development of the Celestia ecosystem.

Industry insiders are optimistic about Celestia's innovative model. The well-known investment firm Polychain Capital pointed out in its latest report that modular architecture is expected to fundamentally solve the scalability issues of blockchain. As a pioneer in this field, Celestia has broad prospects for future development. With more developers joining, the Celestia ecosystem is expected to foster more innovative applications.

5. Radix releases Cerberus upgrade, enhancing network security and scalability.

Radix is an innovative project aimed at solving the blockchain trilemma. Recently, Radix released a major upgrade, Cerberus, which has significantly improved network security and scalability, providing a more secure and efficient infrastructure for distributed applications in the We era.

The core of the Cerberus upgrade is the introduction of a brand new consensus mechanism - Cerberus consensus. This consensus mechanism integrates various innovative technologies, such as scalable consensus and hierarchical network architecture, fundamentally addressing the security and scalability challenges faced by traditional consensus mechanisms.

With the Cerberus consensus, the Radix network's throughput and concurrency have been significantly enhanced, capable of supporting the demands of large-scale commercial applications. At the same time, the network's security has also been greatly strengthened, effectively defending against various types of attacks. This provides solid performance and security guarantees for distributed applications on the Radix network.

Industry insiders have high hopes for the Cerberus upgrade. In its latest report, Delphi Digital, a well-known analyst firm, pointed out that solving the blockchain trilemma is the key to We's development, and Radix's breakthrough in this field will have a profound impact on the entire industry. In the future, Radix is expected to become an important force in the We infrastructure.

4. Economic Dynamics

1. Fed's Beige Book: Pessimistic Economic Outlook, Tariffs Mentioned 122 Times

The Federal Reserve's Beige Book shows that the U.S. economy has declined over the past six weeks, with a slowdown in hiring, and consumers and businesses are concerned about price increases related to tariffs. In terms of inflation, the report states that prices are experiencing a "moderate increase" trend, but there is a widespread expectation among businesses that future costs and prices will rise at a faster pace.

In the report released on Thursday, the term "tariff" appeared 122 times, up from 107 times in April. This reflects the increasing uncertainty for businesses and consumers due to the Trump administration's executive measures to impose tariffs on multiple countries. The report noted that respondents planning to pass on tariff-related costs are expected to take action within three months.

David Howner, head of global emerging market fixed income strategy at BofA Securities, said: "We have every reason to maintain our expectation of double-digit returns for emerging markets for the full year. We believe the US dollar is the most important driver and expect the US long-end market to stabilize. "BofA Securities is optimistic about Eastern European currencies and equities. Brazil remains a preferred investment destination in the fixed income market, as the country's interest rates are very high and interest rate cuts are likely to start by the end of the year.

Chief Analyst Pav Hundal pointed out that the biggest threat facing bulls right now is that nothing will change in the next two months, and we will be stuck in this endless cycle of tariff ultimatums. Hundal indicated that U.S. policymakers might delay monetary easing until they obtain "conclusive data" on the effects of Trump's tariffs, which could pose a risk of "economic growth slowdown."

2. Federal Reserve's Kashkari: Due to uncertainty in the economy, the Federal Reserve must wait and see.

On June 5, Fed's Kashkari said that the Fed must wait and see what happens due to economic uncertainty, with bond and stock markets sending very different signals.

Kashkari emphasized that the Federal Reserve needs to remain patient and cautious, closely monitoring data to determine if further adjustments to monetary policy are necessary. He pointed out that while the labor market remains robust, the inflation rate is still below the 2% target level, which may require action.

At the same time, investors are increasingly concerned about global trade tensions. The Trump administration's tariff measures against major economies such as China have triggered severe market fluctuations. Some analysts warn that if the trade dispute continues to escalate, it could severely undermine business confidence and consumer spending, thereby dragging down economic growth.

Jan Hatzius, chief economist at Goldman Sachs, said: "We expect trade tensions to continue to escalate in the coming quarters, which will have a negative impact on corporate investment and employment. He added that if the trade war escalates further, the U.S. economy could fall into a mild recession in 2020.

However, some experts are optimistic about the economic outlook. Eric Robertsen, global head of research at Standard Chartered, believes that despite the downside risks, the fundamentals of the US economy remain strong. "We expect U.S. GDP growth to reach around 2.5 percent this year, and the job market and consumer spending will continue to support economic growth," he said.

3. Trump: The debt ceiling should be completely eliminated to avoid economic disaster.

On June 5th, U.S. President Trump posted on social media: "I am very pleased to announce that after so many years, I have finally reached a consensus with U.S. Democratic Senator Warren on one thing: the debt ceiling should be completely eliminated to avoid an economic disaster."

Trump said it was too dangerous to put the debt ceiling in the hands of politicians, who wanted to use it for political gain, even though it could have dire repercussions for the United States and the world. He also endorsed Senator Warren's second statement on $4 trillion, but that had to be done in the shortest possible time.

The debt ceiling has always been a thorny issue in American politics. Congress needs to regularly raise the debt ceiling to ensure the government has enough borrowing capacity to pay for approved expenditures. However, there are often disagreements between the two parties regarding the extent and conditions for raising the debt ceiling, leading to situations where the "government shuts down."

The U.S. Congressional Budget Office previously released a report (CBO) saying that the Trump administration's tariff plan will reduce the federal deficit by $2.8 trillion over the next 10 years, but at the same time will lead to slower economic growth, higher inflation, and overall weakening of the purchasing power of American households. The report estimates that tariffs will cause a permanent decline of 0.06 percentage points in the annual growth rate of real GDP in the United States.

Some economists have questioned Trump's claims. Greg Mankiw, a professor of economics at Harvard University, believes that removing the debt ceiling could exacerbate the fiscal deficit issue, leading to greater economic turbulence. He said: "While the debt ceiling has its flaws, it at least provides a hard constraint on government budgeting, helping to control the deficit."

4. Federal Reserve Beige Book: Economic activity has slightly declined.

Fed's Beige Book: Prices have risen at a modest pace since the last report. However, a few regions reported a deterioration in the economic outlook, while others indicated an improved outlook.

The report from the twelve Federal Reserve Regions shows a slight decline in economic activity since the last report. Most regions reported flat employment, with three reporting a slight to moderate increase in employment and two reporting a slight decline in employment. Many regions reported lower staff turnover and more applicants for open positions. There have been widespread comments about delays in hiring due to uncertainty.

All regions have mentioned a decline in labor demand, citing reasons such as reduced working hours and overtime, hiring freezes, and layoff plans. Some regions report layoffs in certain industries, but these layoffs are not widespread.

In the manufacturing sector, most regions reported a decline in activity. Some regions indicated that trade tensions and tariffs are affecting manufacturers' activities and investment plans.

Non-manufacturing activities have maintained moderate growth in most regions, but several areas report a slowdown in growth. The tourism industry has improved in several regions, but has declined in others.

Overall, the Beige Book paints a picture of a slowing U.S. economy, reflecting that trade tensions and uncertainties such as tariffs are affecting the confidence of businesses and consumers. This may further exacerbate the downward pressure on economic growth.

5. Report: Trump's Tariff Plan Will Raise US Inflation by 0.4% Annually and Lead to a Permanent Decline in Real GDP Annual Growth by 0.06%

On June 5, the U.S. Congressional Budget Office ( CBO ) released an analysis report on Wednesday showing that the Trump administration's massive global tariff plan will reduce the federal deficit by $2.8 trillion over the next 10 years, but will also lead to a slowdown in economic growth, an increase in inflation rates, and a general weakening of American households' purchasing power.

This letter sent to the Democratic congressional leadership details the impact of the Trump administration's extensive tariffs imposed on multiple countries on ordinary families. The report indicates that the CBO's model assumes that American households will ultimately reduce their imports from the countries subjected to tariffs and predicts that from 2025 to 2026, the tariffs will cause the annual inflation rate to rise by 0.4 percentage points.

The analysis also assumes that the tariff policy announced by the Trump administration through executive orders from January to May will be implemented long-term. Although federal courts previously ruled that its use of emergency powers to impose tariffs was overreach, the appeals court allowed the relevant tariffs to continue to be collected during the litigation.

The CBO's conclusions are consistent with other economic model predictions: a 10-year deficit reduction of $2.8 trillion will come at the cost of shrinking household wealth and a shrinking economy. The report estimates that tariffs will cause a permanent decline of 0.06 percentage points in the annual growth rate of real GDP in the United States. Previously, the University of Pennsylvania's Wharton Budget Model reported in April that it was more pessimistic, predicting that such tariffs could shrink long-term GDP by 6% and wages by 5%.

It is worth noting that the CBO specifically emphasized in its report that there is significant uncertainty in its estimates, one reason being that "the Trump administration may adjust the implementation of tariff policies at any time."

This report will undoubtedly further exacerbate bipartisan divisions in Congress over tariffs. Democrats have been criticizing Trump's tariffs for hurting American families and businesses, while Republicans have argued that tariffs help protect domestic industries and workers.

6. Gate CBO responds to LAUSDT contract turmoil: users' profits fully retained, platform bears 100% of liquidation losses.

On June 5, in response to the recent LAUSDT perpetual contract incident, Gate CBO Kevin Lee released a detailed response on platform X, explaining the event's progression and the platform's countermeasures.

Kevin stated that this anomaly was triggered by a short-term dramatic fluctuation in the market source. The platform quickly implemented measures such as suspending trading, issuing notifications, and activating emergency risk control mechanisms within 15 minutes. According to him, the platform has decided to retain all profitable orders and provide 100% compensation to users who experienced liquidation, with the total amount exceeding 30 million.

5. Regulation & Policy

1. The U.S. House of Representatives' review of the "Digital Asset Market Clarification Act" is blocked.

The Digital Asset Markets Clarification Act (CLARITY) intended to establish a clear regulatory framework for the crypto industry, but Trump's close ties to the crypto industry have become the focus of discussions, making the bill stand up. During the hearing, some Democratic lawmakers expressed concern about Trump's involvement in the cryptocurrency space, especially his support for World Liberty Financial, and the subsequent launch of stablecoins and meme coins, arguing that these actions disrupted the bill's discussion process.

Democratic Congressman Greg Mexes called for the addition of conflict-of-interest clauses to prevent the president and his relatives from profiting from cryptocurrency investments. If this is not addressed, they may oppose the passage of the bill. Republicans, on the other hand, support the bill, arguing that it will bring the regulatory clarity needed to the industry.

The bill aims to clarify the division of regulatory responsibilities between the SEC (SEC) and the Commodity Futures Trading Commission (CFTC) in the crypto market, and requires companies to disclose information and segregate customer funds. Despite the support of some Democrats, the controversy over Trump's crypto investments could slow down the bill.

2. The Hong Kong Securities and Futures Commission plans to allow professional investors to trade crypto derivatives.

The Hong Kong Securities and Futures Commission ( SFC ) plans to allow professional investors to trade cryptocurrency derivatives, expanding the local virtual asset market. This initiative aims to attract more cryptocurrency-related businesses to settle in Hong Kong, enhancing its status as an international financial center.

According to the recommendation of the Securities Regulatory Commission, only "professional investors" can participate in cryptocurrency derivatives trading, including institutional investors, high-net-worth individuals, and experienced traders. Ordinary investors will be excluded to reduce risks. In addition, exchanges and brokers must comply with strict rules, including adequate capital requirements, internal controls, and customer due diligence.

The Chief Executive of the Hong Kong Monetary Authority, Eddie Yu, stated that this initiative will bring new opportunities to Hong Kong and help attract more cryptocurrency companies to establish operations in the region. He emphasized that Hong Kong will continue to adopt a prudent approach to ensure that risks are manageable.

Industry insiders generally welcome this. The chairman of the Hong Kong Cryptocurrency Association, Lu Jiahua, believes that this is an important step for Hong Kong to become a center for crypto assets. However, some are concerned that overly strict regulations may hinder the development of the industry.

3. The Ethereum Foundation has released a new financial policy, focusing on sustainable development and DeFi ecosystem construction.

The Ethereum Foundation ( EF ) has released a new financial management policy, which clearly states that it will continue to strengthen the Ethereum ecosystem and promote its long-term sustainable development. The policy focuses on: rational asset management, ensuring support for innovation in the DeFi sector, and managing finances with transparency and accountability.

The core policies include: annual operating expenses account for 15% of the total finance, an operating buffer period of 2.5 years, and a fiat currency reserve target; Over the next five years, the company will gradually reduce its annual operating expenses to 5%. In addition, the Ethereum Foundation will regularly assess the extent to which fiat-denominated assets in the treasury deviate from the OPEX buffer target, and accordingly determine whether and how much Ethereum needs to be sold in the next three months.

The policy emphasizes "Defipunk" principles and supports privacy, open source, and financially autonomous projects, while increasing the use of internal privacy tools to ensure transparency ( quarterly and annual ). According to EF, this policy aims to improve financial discipline, support long-term ecosystem growth, and reinforce Ethereum's core values.

Industry insiders generally welcome this. Bankless contributor Ryan Berckmans believes that this policy helps the Ethereum Foundation better manage funds and focus on key areas. However, some are concerned that over-reliance on DeFi may bring risks.

4. Congressional Budget Office: Trump's tariff plan will push inflation higher

The Trump administration's massive global tariff plan will reduce the federal deficit by $2.8 trillion over the next 10 years, but at the same time lead to slower economic growth, higher inflation, and overall erosion of the purchasing power of American households, according to a report released by the U.S. Congressional (CBO)Budget Office.

The CBO's model assumes that U.S. households will eventually reduce imports from countries subject to tariffs, and predicts that tariffs will increase average annual inflation by 0.4 percentage points between 2025 and 2026. The analysis also assumes that the tariffs announced by the Trump administration through executive orders between January and May will be in place for a long time.

Although the Federal Court had previously ruled that its invocation of emergency powers to impose tariffs was ultra vires, the Court of Appeal allowed the tariffs to continue to be levied during the litigation. The report estimates that tariffs will cause a permanent decline of 0.06 percentage points in the annual growth rate of real GDP in the United States.

This letter sent to the leadership of the Democratic Party in Congress elaborates on the impact of the Trump administration's executive measures to impose broad tariffs on multiple countries on ordinary families. Analysts point out that the ongoing uncertainty surrounding tariffs could pose the biggest risk for investors betting on Bitcoin in the next two months.