1. SEC accelerates approval process for Solana ETF, SOL price surges 4%
The U.S. Securities and Exchange Commission (SEC) has requested that potential Solana spot ETF issuers submit revised S-1 application documents within the next week, a move seen as a significant acceleration of the approval process. Sources reveal that this action by the regulatory agency could shorten the approval timeline for the Solana ETF to within 3-5 weeks.
As soon as the news broke, the price of Solana token SOL immediately rose by 4%, approaching the $165 mark. This also highlights the market's appetite for institutional-grade cryptocurrency products. Solana is currently the sixth largest cryptocurrency in the world, with a market capitalization exceeding $30 billion.
The key points that the SEC requires to be revised include the "physical redemption" and "staking mechanism" clauses. Analysts believe that the SEC may allow Solana ETFs to include staking yield functionality, which would provide additional returns for investors. Unlike Bitcoin and Ethereum ETFs, the Solana ecosystem has a unique mechanism for generating returns through staking.
In addition, the SEC's actions are also seen as recognition of the prospects of the Solana ecosystem. Solana has garnered significant attention for its high throughput and low transaction fees, with numerous applications in decentralized finance, NFTs, and the Web3 space. However, it has also been plagued by network congestion and downtime issues.
2. Disney and Universal Pictures sue AI company Midjourney for infringement
Disney and Universal Pictures filed a lawsuit against the Los Angeles court on June 12, accusing the artificial intelligence company Midjourney of unauthorized use of its well-known film IP content, including "Star Wars," "Marvel," and "Shrek," to train AI models and generate infringing images.
This is the first time a major Hollywood studio has filed a copyright lawsuit against an AI company. The complaint states that the Midjourney platform allows users to generate images containing copyrighted characters from Disney and Universal Pictures, and has not taken effective technical measures to prevent infringement. Disney has stated that it requested Midjourney to establish copyright protection mechanisms but received no response.
Currently, the two companies have applied for a preliminary injunction, requesting to suspend Midjourney's image generation services. If granted, it will significantly impact Midjourney's business operations.
This lawsuit has sparked widespread attention to copyright protection in the field of artificial intelligence. Recently, several AI companies, including OpenAI and Microsoft, have faced copyright lawsuits, being accused of using unauthorized copyrighted content to train AI models. Industry insiders are calling for the establishment of an AI copyright protection mechanism to clarify the responsibility boundaries of AI companies.
3. Singapore regulators have ordered offshore crypto companies to cease operations by the end of June.
On May 30, the Monetary Authority of Singapore (MAS) announced that cryptocurrency companies providing offshore services but having a physical presence in Singapore must cease operations by June 30, with no transition period, and all front office functions involved in sales are also subject to this constraint.
A MAS spokesperson stated that this is a continuation of the 2022 Financial Services and Markets Act, affecting only a "very small number" of companies. Industry insiders pointed out that the new regulations reveal the challenge of ambiguous headquarters locations for crypto firms, and legal experts mentioned that companies utilizing Singaporean teams to support offshore businesses but with unclear service definitions may face case-by-case reviews.
This regulatory measure aims to strengthen the regulation of the cryptocurrency industry and prevent money laundering and terrorist financing risks. As a cryptocurrency hub, Singapore has attracted numerous crypto companies to establish their operational centers locally. However, some companies use Singapore as a springboard to provide services to overseas clients, evading regulation.
The new regulations will force these companies to adjust their business models or completely leave Singapore. Industry insiders are concerned that overly strict regulations may hinder Singapore's goal of becoming a center for blockchain and cryptocurrency.
4. The organizational structure of the Ethereum Foundation is chaotic, former executives question it.
The Ethereum Foundation has recently undergone an organizational restructuring, but the new structure is confusing. Former Galaxy Digital Vice President of Research Christine Kim pointed out in a post on platform X that Tim Beiko, Barnabé Monnot, and Alex Stokes hold multiple roles, leading all research and development teams of the foundation while also managing their own teams, and will be responsible for L1 and L2 scaling and improving user experience in the next 12 months.
Kim stated that this "bullish leadership" model may lead to problems such as low decision-making efficiency and improper resource allocation. She questioned whether the Ethereum Foundation has sufficient human and financial resources to support this new structure.
The Ethereum Foundation has been working hard to promote the development of Ethereum, but due to its decentralized nature, there have been controversies regarding its organizational structure and decision-making mechanisms. In recent months, some divisions and voices of doubt have also emerged within the Ethereum ecosystem.
Experts analyze that the Ethereum Foundation needs to establish a clearer division of responsibilities and decision-making processes to improve operational efficiency. At the same time, it should strengthen communication with the community to eliminate doubts from the outside about its operational model.
5. The encrypted KOL was banned by platform X, or it is related to the PPMT meme coin.
Recently, platform X conducted a large-scale account banning of crypto KOLs, including Eliza, GMGN's official Twitter, and a number of MEME KOL accounts. According to sources close to the X platform team, this banning action may be related to a meme coin named PPMT on the GMGN platform, which is suspected of violating X platform's regulations regarding misleading content.
PPMT is a popular meme coin on the GMGN platform, claiming to be "never going to zero". However, its token economic model has flaws and cannot actually prevent it from going to zero. Some KOLs may exaggerate its anti-zero function when promoting PPMT, which is regarded as publishing false misleading information by platform X.
This event has sparked widespread discussion in the cryptocurrency community about freedom of speech. Supporters argue that the X platform should not excessively censor crypto-related content to avoid stifling innovation. Opponents point out that some KOLs do indeed spread false promotional information, and regulation is necessary.
Industry insiders are calling for social platforms and crypto institutions to establish clear content review standards, seeking a balance between protecting freedom of speech and preventing fraud. At the same time, KOLs should practice self-discipline, improve content quality, and avoid misleading users.
2. Industry News
1. Bitcoin briefly broke through the $110,000 mark, with favorable inflation data triggering a surge.
Bitcoin briefly broke through the $110,000 mark after the release of the lower-than-expected US Consumer Price Index ( CPI ) data. The milder inflation data boosted optimism in the cryptocurrency market, pushing Bitcoin's price to rise above $111,000 at one point. However, Bitcoin then experienced a pullback, ultimately closing near $109,000.
Analysts point out that easing inflationary pressures are expected to lead the Federal Reserve to slow down the pace of interest rate hikes, thus bringing benefits to risk assets. At the same time, progress on the regulatory front has also injected confidence into the market. The U.S. Senate has passed a procedural motion for the "GENIUS Act", taking a key step towards the clarification of stablecoin regulation.
Despite the short-term pullback of Bitcoin, the overall market sentiment remains optimistic. Institutional investors continue to increase their positions in Bitcoin, with exchange outflows reaching new highs. Analysts believe that Bitcoin is likely to find strong support around the $109,000 mark, and there is still potential for further exploration of historical highs in the future. However, caution is also needed regarding the volatility brought about by uncertainties such as geopolitical risks.
2. Ethereum breaks through the $2700 mark, institutional funds continue to flow in.
Ethereum has performed strongly in this round of market conditions, with its price breaking through the critical resistance level of 2700 USD. Analysis shows that the rise of Ethereum is mainly driven by the continuous inflow of institutional funds. Data indicates that in the past week, the staking scale of the Ethereum Foundation has increased by nearly 3 million tokens, reflecting investors' optimism about Ethereum's long-term prospects.
At the same time, the DeFi, NFT, and other application areas within the Ethereum ecosystem are also rapidly developing, providing fundamental support for the rise in token prices. Circle plans to raise $240 million through an IPO, which is expected to further promote the development of the Ethereum ecosystem.
However, some analysts hold a cautious attitude towards the short-term trend of Ethereum. They believe that Ethereum's current price is already quite expensive and may face profit-taking pressure in the short term. In addition, uncertainties in regulatory aspects may also pose certain impacts on Ethereum.
Overall, Ethereum has performed remarkably in this market cycle, but investors still need to closely monitor its subsequent fundamental developments and regulatory trends, and carefully seize investment opportunities.
3. The Solana ecosystem continues to heat up, with SOL price breaking through $160.
The Solana ecosystem continues to heat up, with the SOL token price breaking through the $160 mark. The SEC has asked potential Solana ETF issuers to submit revised application materials within the next week, seen as a signal of an accelerated approval process, according to sources. In addition, applications such as DeFi and NFTs in the Solana ecosystem are also developing rapidly, providing impetus for token price increases.
Analysts believe that the continued rise of the Solana ecosystem is mainly due to its high performance and low transaction fees. Compared with established public chains like Ethereum, Solana has certain advantages in scalability and user experience, attracting a large influx of developers and capital.
However, some investors have expressed concerns about the security and degree of decentralization of Solana. Previously, Solana had experienced multiple outages, raising questions about its reliability. In addition, the distribution of Solana's tokens is relatively concentrated, which also poses certain centralization risks.
Overall, the development prospects of the Solana ecosystem are broad, but it also needs to address some existing issues and challenges. Investors need to comprehensively assess the risks and returns when positioning themselves in Solana and make prudent decisions.
4. Is the Altcoin season coming? Multiple institutions are optimistic about Altcoin performance.
As the cryptocurrency market continues to heat up, more and more institutions are beginning to have a positive outlook on the performance of altcoins. Several analysis firms have released reports, forecasting that altcoins will have opportunities for growth in the near future.
Analysts point out that after the Bitcoin price stabilizes, funds are expected to flow into the higher-risk altcoin sector. Previously, altcoins suffered heavy losses during the bear market, and currently, their valuations are at relatively low levels, indicating some potential for upward movement.
The report also specifically mentioned the potential opportunities of popular altcoins such as XRP and Solana ecosystem tokens. Among them, XRP is expected to see a significant price increase after progress in the lawsuit with the SEC. Meanwhile, Solana ecosystem tokens benefit from the positive developments in the rapidly growing ecosystem.
However, some analysts are cautious about the arrival of the altcoin season. They believe that altcoins have higher volatility and investment risks, requiring investors to remain highly vigilant. Additionally, uncertainties in regulatory aspects may also impact altcoins.
Overall, altcoins do have a certain potential for growth, but investors need to comprehensively assess the risk and return when planning their investments, make rational decisions, and avoid blindly following trends.
5. AI concept coins attract market attention, prices of tokens like FET surge.
The concept of artificial intelligence is gaining momentum in the cryptocurrency market, with AI concept coins like FET and NEAR experiencing significant price increases. Analysts believe that the combination of AI technology and blockchain is expected to create new application scenarios, driving up the prices of related tokens.
FET is a blockchain infrastructure that supports AI model training and deployment, with its token price having risen over 30% in the past week. NEAR, on the other hand, is a high-performance blockchain that supports AI applications, and its token price has also seen a good increase.
At the same time, some emerging AI concept coin projects are also highly sought after in the market. For example, Anthropic's token ConstitutionalAI surged several times on the day of its launch, with trading volume exceeding that of Bitcoin at one point.
However, some analysts have expressed concerns about the hype surrounding AI concept coins. They believe that many projects are still in the conceptual stage, lacking practical application scenarios, and have a high level of speculative nature. Investors need to be highly vigilant when making their investments.
Overall, the combination of AI and blockchain indeed has broad prospects, but investors need to view it rationally, carefully discern the true value of projects, and avoid blindly following trends.
6. The cryptocurrency market sentiment remains in the "greed" zone, and traders should be wary of the risk of a pullback.
Despite the pullback in the cryptocurrency market, the overall market sentiment remains in the "greed" range. Data shows that the current Crypto Fear and Greed Index is 71, which is at a high level.
Analysts say that high levels of greed often increase market vulnerability, and caution is needed regarding the potential risk of a pullback. Previous significant surges in the cryptocurrency market have often been accompanied by excessively euphoric sentiment, ultimately leading to severe pullbacks.
However, some investors believe that the current market sentiment is not completely out of control. Compared to the previous bullish phase, investors are currently maintaining a certain level of rationality and are alert to potential risks.
Overall, investors need to closely monitor changes in market sentiment and carefully seize trading opportunities. When sentiment becomes overly exuberant, it is also wise to take appropriate profits. At the same time, one must remain vigilant about the potential impacts of geopolitical and regulatory uncertainties.
3. Project News
1. Sui Network: Move eco-star continues to exert force, leading the Web3 innovation wave.
Sui Network is a Layer 1 blockchain built on the new blockchain kernel Sui, aimed at providing high-performance, low-cost infrastructure for Web3 applications. As a representative project of the Move ecosystem, Sui has recently shown strong development momentum.
Latest updates: During the TOKEN2049 conference, the Sui ecosystem received a lot of attention. The Sui team launched the SuiPlay game exhibition area, showcasing multiple game demos built on Sui. At the same time, the Sui ecosystem incubation program also attracted many developers to join. In addition, the launch of Grayscale Trust and Native USDC on Sui injected new vitality into the Sui ecosystem.
Market Impact: As a leading project in the Move ecosystem, the development of Sui will directly influence the direction of the entire Move ecosystem. Sui's innovative design and high-performance features are expected to attract more developers and projects to join, promoting the prosperity of the Move ecosystem. At the same time, Sui may also become a strong competitor to popular public chains like Solana, leading innovation in Web3 infrastructure.
Industry feedback: Industry insiders are generally optimistic about the development prospects of Sui. Well-known investor Arca stated that Sui's technological advantages and ecosystem construction are impressive, and it is expected to become a representative of the next-generation Web3 infrastructure. Meanwhile, crypto analysis firm Messari believes that Sui's innovative design is likely to address the scalability and composability challenges currently faced by blockchains.
2. Injective: HackQuest partners with Injective to launch the Injective Learning Track
Injective is a decentralized application platform aimed at Web3 developers, designed to provide developers with a one-stop solution for building and deploying DApps. Recently, Injective partnered with HackQuest to launch the Injective Learning Track educational program.
Latest update: The Injective Learning Track is a brand new learning resource platform designed to help developers learn the Injective ecosystem from scratch. The platform offers content covering Rust and EVM development, practical guides for the Injective SDK, and building AI Agents on Injective, among others. Upon completing the courses, learners will receive a certificate of completion jointly issued by Injective and HackQuest.
Market Impact: The launch of the Injective Learning Track will help attract more developers to join the Injective ecosystem, promoting the prosperous development of the ecosystem. At the same time, this project also reflects Injective's emphasis on developer education, which is expected to enhance Injective's influence in the developer community.
Industry feedback: Industry insiders believe that the Injective Learning Track is a very valuable educational resource. Well-known investor Placeholder stated that the project will help lower the barrier for developers to enter the Web3 space and promote talent cultivation in the industry. Meanwhile, Delphi Digital believes that the Injective Learning Track reflects Injective's commitment to the developer community and is expected to enhance Injective's influence among Web3 developers.
3. Midjourney is sued by Disney and Universal Pictures, AI copyright disputes arise again.
Midjourney is an artificial intelligence company, and its namesake image generation tool has garnered significant attention. However, the company has recently been sued by Disney and Universal Pictures, accused of using their copyrighted content without authorization to train its AI model.
Latest news: Disney and Universal Pictures have accused Midjourney of unauthorized use of its well-known film and television IP content, including "Star Wars," "Marvel," and "Shrek," to train its AI model and generate infringing images. The two companies have filed for a preliminary injunction, requesting a halt to Midjourney's image generation services.
Market impact: This lawsuit has once again sparked controversy between artificial intelligence and copyright. If Disney and Universal Pictures win the case, it will have a significant impact on AI companies using copyrighted content to train models, potentially leading to restrictions on related businesses. At the same time, it may also drive regulators to further standardize AI copyright issues.
Industry feedback: There are differing opinions among industry insiders regarding this lawsuit. Supporters believe that copyright protection is reasonable and that AI companies should not abuse others' intellectual property. However, some are concerned that excessive restrictions will hinder the development of AI technology. Noted investor Naval Ravikant stated that copyright laws need to keep pace with the times to adapt to the development of new technologies. Meanwhile, OpenAI's Sam Altman called for the establishment of a more open knowledge licensing system.
4. Nexo launches the second season of the points event, airdropping NFT badges for advanced users.
Nexo is a comprehensive service platform for Web3 users, integrating functions such as wallets, exchanges, and NFT markets. The platform recently announced the launch of the second season of its points program, which will airdrop NFT badges to premium users.
Latest Updates: Nexo will airdrop NFT badges to Nexo wallet users as a reward for the second season points event. Users need to connect their wallets to their exchange accounts by June 18 to participate. Additionally, over 500 other tier users will be randomly selected to qualify.
Market Impact: This event is expected to further enhance Nexo's influence among Web3 users. By issuing NFT badges, Nexo can boost user engagement and loyalty, thereby consolidating its position in the Web3 comprehensive service sector. At the same time, this event also reflects Nexo's innovative attempts in user incentives.
Industry feedback: Industry insiders have expressed admiration for Nexo's approach. Notable investor Placeholder believes that issuing NFT badges is a great way to incentivize users and can help strengthen user engagement. Meanwhile, Delphi Digital stated that Nexo's move reflects its emphasis on Web3 user experience and is expected to bring new insights to the industry.
5. BNB Chain announced the list of award-winning projects for BNB Hack, with AI agent tool market MCPForge winning the highest award.
BNB Chain is a Web3 ecosystem chain designed to provide developers with high-performance, low-cost infrastructure. Recently, BNB Chain announced the latest list of award-winning projects from the BNB Hack.
Latest updates: This selection covers submitted projects from May 25 to June 5. The AI agent tool market MCPForge has been awarded as a Tier 3 winner, receiving a $3,000 bonus, a $50,000 startup support package, and an exhibition opportunity on the BNB Chain channel. In addition, four projects: Quest Craft, Akai Space, Expiry Mitra, and NeuroBalance have been selected as potential Tier 4 winners.
Market Impact: The announcement of BNB Hack winning projects reflects BNB Chain's efforts in attracting quality projects. These projects cover a number of popular fields such as AI, gaming, and data annotation, and are expected to inject new vitality into the BNB Chain ecosystem. At the same time, it will also help increase the influence of BNB Chain among Web3 developers.
Industry Feedback: Industry insiders have expressed recognition for the award-winning projects. Notable investor Placeholder stated that these projects showcase the innovative vitality of the BNB Chain ecosystem and are expected to promote the development of Web3 applications. Meanwhile, Delphi Digital believes that BNB Chain, through activities like BNB Hack, attracts high-quality projects to join, which will help enhance its competitiveness in the Web3 infrastructure sector.
6. Aave will reopen a deposit limit of 500 million USD, raising the total cap to 1 billion USD.
Aave is a decentralized cryptocurrency lending platform that allows users to deposit and earn interest. The platform recently announced that it will reopen a deposit limit of 500 million dollars, raising the total cap to 1 billion dollars.
Latest update: Aave had previously opened a deposit limit of $500 million, but due to strong user demand, that limit was quickly exhausted. To meet market demand, Aave has decided to reopen a deposit limit of $500 million, raising the total limit to $1 billion.
Market Impact: Aave's approach reflects the strong demand in the cryptocurrency lending market. As more and more funds flow into the sector, platforms like Aave are expected to further expand their market share and drive industry growth. At the same time, this also helps attract more institutional investors to participate in the cryptocurrency market.
Industry Feedback: Insiders welcome Aave's initiatives. Notable investor Placeholder stated that the cryptocurrency lending market has great prospects, and Aave's timely increase in deposit limits can meet market demand. Delphi Digital believes that Aave's actions help enhance liquidity in the cryptocurrency market, providing more investment opportunities for institutional investors.
4. Economic Dynamics
1. U.S. inflation data for May is moderate, easing pressure on the Federal Reserve to raise interest rates.
Economic Background: The U.S. economy faced the impacts of high inflation and interest rate hikes in 2022, but the latest data shows that inflationary pressures have eased. In May, the Consumer Price Index (CPI) rose by 0.1% month-on-month, lower than the expected 0.2%, and increased by 4% year-on-year, the lowest level in nearly two years. The core CPI rose by 5.3% year-on-year, also lower than April's 5.5%. Nevertheless, the inflation rate remains above the Federal Reserve's 2% target. The labor market remains robust, with the unemployment rate holding steady at a low of 3.7% in May.
Important event: The inflation data for May released by the U.S. Department of Labor was mild, easing the market's concerns about the Federal Reserve continuing to raise interest rates significantly. Federal Reserve Chairman Powell had previously stated that if inflation data continues to rise, they would have to continue to raise interest rates significantly. The mild inflation data provides a reason for the Federal Reserve to pause or only raise interest rates slightly at the next meeting.
Market reaction: Mild inflation data drove US stocks higher, with the S&P 500 index rising by 0.9%. The dollar index fell, benefiting the performance of risk assets. Bond yields decreased, reflecting a cooling of market expectations for the interest rate hike path. Investors expect the Federal Reserve to raise interest rates by 25 basis points at the June meeting, rather than the previously anticipated 50 basis points.
Expert view: Goldman Sachs chief economist Jan Hatzius said that although inflation data has improved, it is still at a high level and the Fed is unlikely to stop raising interest rates immediately. He expects the Fed to pause rate hikes later this year and start cutting rates in 2024. JPMorgan Chase Chief Economist Michael Ferry believes that easing inflationary pressures will reduce the Fed's policy pressure, but more evidence is still needed that inflation is slowing.
5. Regulation & Policy
1. The U.S. Senate passes the procedural vote on the GENIUS Stablecoin Act.
The "GENIUS Stablecoin Act" was passed by a procedural vote in the U.S. Senate on June 12 and will be submitted to the House of Representatives for further consideration. The bill aims to provide a comprehensive solution for the regulation of stablecoins.
Background: As a bridge between cryptocurrency and the traditional financial system, the regulation of stablecoins has been a focal point of industry attention. As the scale of stablecoins continues to expand, their potential risks are becoming increasingly prominent, highlighting the urgent need to establish a comprehensive regulatory framework.
Policy Content: The "GENIUS Act" requires that all stablecoins must be 100% backed by US dollars or high liquidity assets, and compliant operators with an issuance scale exceeding $50 billion must undergo third-party audits annually. The Act also stipulates that stablecoin issuers must obtain federal licensing and adhere to stringent capital requirements, risk management, and consumer protection regulations.
Market Reaction: The Senate's passage of the bill is seen as a significant advancement, expected to provide clear guidance for stablecoin regulation. Industry insiders generally believe that reasonable regulation will enhance market confidence and promote the healthy development of stablecoins. However, there are also concerns that overly strict regulations might stifle innovation.
Expert opinion: Former Chairman of the U.S. Commodity Futures Trading Commission, Gary Gensler, stated, "Stablecoin regulation is a top priority, and this bill marks a critical step toward establishing a comprehensive regulatory framework." However, he also emphasized that regulation needs to balance innovation and risk management.
2. The Hong Kong Securities and Futures Commission recommends restricting the use of misleading names.
The Hong Kong Securities and Futures Commission has launched a consultation aimed at restricting unregulated entities from using misleading names to enhance investor protection.
Background: In recent years, some unregulated institutions have abused terms like "exchange" to mislead the public into believing they are regulated entities. This not only harms the interests of investors but also affects the reputation of Hong Kong as a financial center.
Policy Content: The Securities Regulatory Commission recommends expanding the list of restricted titles under the Securities and Futures Ordinance, prohibiting the use of names that may imply an association with exchanges, virtual asset trading platforms, and other institutions. Violators will face penalties.
Market reaction: Industry insiders generally believe that this move helps maintain market order and curb misleading marketing practices. However, there are also concerns that overly strict restrictions may affect the naming of innovative products and services.
Expert Opinion: Hong Kong financial law expert Chan Ka-yung stated, "This proposal aims to protect investors from deception while maintaining the reputation of Hong Kong as a financial center. However, it is essential to balance regulation and innovation during the implementation process."
3. Singapore's new cryptocurrency regulations may accelerate industry reshuffling.
The Monetary Authority of Singapore recently issued new regulations requiring cryptocurrency companies that have a physical presence in Singapore but provide offshore services to cease operations by June 30, drawing industry attention.
Background: Singapore has encouraged innovation in blockchain technology, with a generally positive regulatory attitude. However, in recent years, as cryptocurrency activities have become increasingly active, regulatory loopholes have gradually emerged, prompting authorities to tighten regulations.
Policy content: The new regulation states that all cryptocurrency service providers registered or operating in Singapore must cease providing services to overseas clients by June 30 if they have not obtained a Digital Token Service Provider license. Violators will face penalties.
Market reaction: Industry insiders point out that the new regulations expose the problem of ambiguous headquarters locations for crypto companies. Some companies have disclosed that they can no longer continue operations. However, there are also views that the new regulations will promote the standardized development of the industry.
Expert Opinion: Professor Wang Yanhui from the Lee Kuan Yew School of Public Policy at the National University of Singapore stated, "This is an attempt by Singapore's regulators to set up 'guardrails' for cryptocurrency activities. In the short term, it may accelerate the reshuffling of the industry, but in the long run, it will create a better development environment for compliant enterprises."
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6.12 AI Daily Report The Crypto Assets market continues to heat up, and regulatory tightening has become a key factor in the industry's development.
1. Headline
1. SEC accelerates approval process for Solana ETF, SOL price surges 4%
The U.S. Securities and Exchange Commission (SEC) has requested that potential Solana spot ETF issuers submit revised S-1 application documents within the next week, a move seen as a significant acceleration of the approval process. Sources reveal that this action by the regulatory agency could shorten the approval timeline for the Solana ETF to within 3-5 weeks.
As soon as the news broke, the price of Solana token SOL immediately rose by 4%, approaching the $165 mark. This also highlights the market's appetite for institutional-grade cryptocurrency products. Solana is currently the sixth largest cryptocurrency in the world, with a market capitalization exceeding $30 billion.
The key points that the SEC requires to be revised include the "physical redemption" and "staking mechanism" clauses. Analysts believe that the SEC may allow Solana ETFs to include staking yield functionality, which would provide additional returns for investors. Unlike Bitcoin and Ethereum ETFs, the Solana ecosystem has a unique mechanism for generating returns through staking.
In addition, the SEC's actions are also seen as recognition of the prospects of the Solana ecosystem. Solana has garnered significant attention for its high throughput and low transaction fees, with numerous applications in decentralized finance, NFTs, and the Web3 space. However, it has also been plagued by network congestion and downtime issues.
2. Disney and Universal Pictures sue AI company Midjourney for infringement
Disney and Universal Pictures filed a lawsuit against the Los Angeles court on June 12, accusing the artificial intelligence company Midjourney of unauthorized use of its well-known film IP content, including "Star Wars," "Marvel," and "Shrek," to train AI models and generate infringing images.
This is the first time a major Hollywood studio has filed a copyright lawsuit against an AI company. The complaint states that the Midjourney platform allows users to generate images containing copyrighted characters from Disney and Universal Pictures, and has not taken effective technical measures to prevent infringement. Disney has stated that it requested Midjourney to establish copyright protection mechanisms but received no response.
Currently, the two companies have applied for a preliminary injunction, requesting to suspend Midjourney's image generation services. If granted, it will significantly impact Midjourney's business operations.
This lawsuit has sparked widespread attention to copyright protection in the field of artificial intelligence. Recently, several AI companies, including OpenAI and Microsoft, have faced copyright lawsuits, being accused of using unauthorized copyrighted content to train AI models. Industry insiders are calling for the establishment of an AI copyright protection mechanism to clarify the responsibility boundaries of AI companies.
3. Singapore regulators have ordered offshore crypto companies to cease operations by the end of June.
On May 30, the Monetary Authority of Singapore (MAS) announced that cryptocurrency companies providing offshore services but having a physical presence in Singapore must cease operations by June 30, with no transition period, and all front office functions involved in sales are also subject to this constraint.
A MAS spokesperson stated that this is a continuation of the 2022 Financial Services and Markets Act, affecting only a "very small number" of companies. Industry insiders pointed out that the new regulations reveal the challenge of ambiguous headquarters locations for crypto firms, and legal experts mentioned that companies utilizing Singaporean teams to support offshore businesses but with unclear service definitions may face case-by-case reviews.
This regulatory measure aims to strengthen the regulation of the cryptocurrency industry and prevent money laundering and terrorist financing risks. As a cryptocurrency hub, Singapore has attracted numerous crypto companies to establish their operational centers locally. However, some companies use Singapore as a springboard to provide services to overseas clients, evading regulation.
The new regulations will force these companies to adjust their business models or completely leave Singapore. Industry insiders are concerned that overly strict regulations may hinder Singapore's goal of becoming a center for blockchain and cryptocurrency.
4. The organizational structure of the Ethereum Foundation is chaotic, former executives question it.
The Ethereum Foundation has recently undergone an organizational restructuring, but the new structure is confusing. Former Galaxy Digital Vice President of Research Christine Kim pointed out in a post on platform X that Tim Beiko, Barnabé Monnot, and Alex Stokes hold multiple roles, leading all research and development teams of the foundation while also managing their own teams, and will be responsible for L1 and L2 scaling and improving user experience in the next 12 months.
Kim stated that this "bullish leadership" model may lead to problems such as low decision-making efficiency and improper resource allocation. She questioned whether the Ethereum Foundation has sufficient human and financial resources to support this new structure.
The Ethereum Foundation has been working hard to promote the development of Ethereum, but due to its decentralized nature, there have been controversies regarding its organizational structure and decision-making mechanisms. In recent months, some divisions and voices of doubt have also emerged within the Ethereum ecosystem.
Experts analyze that the Ethereum Foundation needs to establish a clearer division of responsibilities and decision-making processes to improve operational efficiency. At the same time, it should strengthen communication with the community to eliminate doubts from the outside about its operational model.
5. The encrypted KOL was banned by platform X, or it is related to the PPMT meme coin.
Recently, platform X conducted a large-scale account banning of crypto KOLs, including Eliza, GMGN's official Twitter, and a number of MEME KOL accounts. According to sources close to the X platform team, this banning action may be related to a meme coin named PPMT on the GMGN platform, which is suspected of violating X platform's regulations regarding misleading content.
PPMT is a popular meme coin on the GMGN platform, claiming to be "never going to zero". However, its token economic model has flaws and cannot actually prevent it from going to zero. Some KOLs may exaggerate its anti-zero function when promoting PPMT, which is regarded as publishing false misleading information by platform X.
This event has sparked widespread discussion in the cryptocurrency community about freedom of speech. Supporters argue that the X platform should not excessively censor crypto-related content to avoid stifling innovation. Opponents point out that some KOLs do indeed spread false promotional information, and regulation is necessary.
Industry insiders are calling for social platforms and crypto institutions to establish clear content review standards, seeking a balance between protecting freedom of speech and preventing fraud. At the same time, KOLs should practice self-discipline, improve content quality, and avoid misleading users.
2. Industry News
1. Bitcoin briefly broke through the $110,000 mark, with favorable inflation data triggering a surge.
Bitcoin briefly broke through the $110,000 mark after the release of the lower-than-expected US Consumer Price Index ( CPI ) data. The milder inflation data boosted optimism in the cryptocurrency market, pushing Bitcoin's price to rise above $111,000 at one point. However, Bitcoin then experienced a pullback, ultimately closing near $109,000.
Analysts point out that easing inflationary pressures are expected to lead the Federal Reserve to slow down the pace of interest rate hikes, thus bringing benefits to risk assets. At the same time, progress on the regulatory front has also injected confidence into the market. The U.S. Senate has passed a procedural motion for the "GENIUS Act", taking a key step towards the clarification of stablecoin regulation.
Despite the short-term pullback of Bitcoin, the overall market sentiment remains optimistic. Institutional investors continue to increase their positions in Bitcoin, with exchange outflows reaching new highs. Analysts believe that Bitcoin is likely to find strong support around the $109,000 mark, and there is still potential for further exploration of historical highs in the future. However, caution is also needed regarding the volatility brought about by uncertainties such as geopolitical risks.
2. Ethereum breaks through the $2700 mark, institutional funds continue to flow in.
Ethereum has performed strongly in this round of market conditions, with its price breaking through the critical resistance level of 2700 USD. Analysis shows that the rise of Ethereum is mainly driven by the continuous inflow of institutional funds. Data indicates that in the past week, the staking scale of the Ethereum Foundation has increased by nearly 3 million tokens, reflecting investors' optimism about Ethereum's long-term prospects.
At the same time, the DeFi, NFT, and other application areas within the Ethereum ecosystem are also rapidly developing, providing fundamental support for the rise in token prices. Circle plans to raise $240 million through an IPO, which is expected to further promote the development of the Ethereum ecosystem.
However, some analysts hold a cautious attitude towards the short-term trend of Ethereum. They believe that Ethereum's current price is already quite expensive and may face profit-taking pressure in the short term. In addition, uncertainties in regulatory aspects may also pose certain impacts on Ethereum.
Overall, Ethereum has performed remarkably in this market cycle, but investors still need to closely monitor its subsequent fundamental developments and regulatory trends, and carefully seize investment opportunities.
3. The Solana ecosystem continues to heat up, with SOL price breaking through $160.
The Solana ecosystem continues to heat up, with the SOL token price breaking through the $160 mark. The SEC has asked potential Solana ETF issuers to submit revised application materials within the next week, seen as a signal of an accelerated approval process, according to sources. In addition, applications such as DeFi and NFTs in the Solana ecosystem are also developing rapidly, providing impetus for token price increases.
Analysts believe that the continued rise of the Solana ecosystem is mainly due to its high performance and low transaction fees. Compared with established public chains like Ethereum, Solana has certain advantages in scalability and user experience, attracting a large influx of developers and capital.
However, some investors have expressed concerns about the security and degree of decentralization of Solana. Previously, Solana had experienced multiple outages, raising questions about its reliability. In addition, the distribution of Solana's tokens is relatively concentrated, which also poses certain centralization risks.
Overall, the development prospects of the Solana ecosystem are broad, but it also needs to address some existing issues and challenges. Investors need to comprehensively assess the risks and returns when positioning themselves in Solana and make prudent decisions.
4. Is the Altcoin season coming? Multiple institutions are optimistic about Altcoin performance.
As the cryptocurrency market continues to heat up, more and more institutions are beginning to have a positive outlook on the performance of altcoins. Several analysis firms have released reports, forecasting that altcoins will have opportunities for growth in the near future.
Analysts point out that after the Bitcoin price stabilizes, funds are expected to flow into the higher-risk altcoin sector. Previously, altcoins suffered heavy losses during the bear market, and currently, their valuations are at relatively low levels, indicating some potential for upward movement.
The report also specifically mentioned the potential opportunities of popular altcoins such as XRP and Solana ecosystem tokens. Among them, XRP is expected to see a significant price increase after progress in the lawsuit with the SEC. Meanwhile, Solana ecosystem tokens benefit from the positive developments in the rapidly growing ecosystem.
However, some analysts are cautious about the arrival of the altcoin season. They believe that altcoins have higher volatility and investment risks, requiring investors to remain highly vigilant. Additionally, uncertainties in regulatory aspects may also impact altcoins.
Overall, altcoins do have a certain potential for growth, but investors need to comprehensively assess the risk and return when planning their investments, make rational decisions, and avoid blindly following trends.
5. AI concept coins attract market attention, prices of tokens like FET surge.
The concept of artificial intelligence is gaining momentum in the cryptocurrency market, with AI concept coins like FET and NEAR experiencing significant price increases. Analysts believe that the combination of AI technology and blockchain is expected to create new application scenarios, driving up the prices of related tokens.
FET is a blockchain infrastructure that supports AI model training and deployment, with its token price having risen over 30% in the past week. NEAR, on the other hand, is a high-performance blockchain that supports AI applications, and its token price has also seen a good increase.
At the same time, some emerging AI concept coin projects are also highly sought after in the market. For example, Anthropic's token ConstitutionalAI surged several times on the day of its launch, with trading volume exceeding that of Bitcoin at one point.
However, some analysts have expressed concerns about the hype surrounding AI concept coins. They believe that many projects are still in the conceptual stage, lacking practical application scenarios, and have a high level of speculative nature. Investors need to be highly vigilant when making their investments.
Overall, the combination of AI and blockchain indeed has broad prospects, but investors need to view it rationally, carefully discern the true value of projects, and avoid blindly following trends.
6. The cryptocurrency market sentiment remains in the "greed" zone, and traders should be wary of the risk of a pullback.
Despite the pullback in the cryptocurrency market, the overall market sentiment remains in the "greed" range. Data shows that the current Crypto Fear and Greed Index is 71, which is at a high level.
Analysts say that high levels of greed often increase market vulnerability, and caution is needed regarding the potential risk of a pullback. Previous significant surges in the cryptocurrency market have often been accompanied by excessively euphoric sentiment, ultimately leading to severe pullbacks.
However, some investors believe that the current market sentiment is not completely out of control. Compared to the previous bullish phase, investors are currently maintaining a certain level of rationality and are alert to potential risks.
Overall, investors need to closely monitor changes in market sentiment and carefully seize trading opportunities. When sentiment becomes overly exuberant, it is also wise to take appropriate profits. At the same time, one must remain vigilant about the potential impacts of geopolitical and regulatory uncertainties.
3. Project News
1. Sui Network: Move eco-star continues to exert force, leading the Web3 innovation wave.
Sui Network is a Layer 1 blockchain built on the new blockchain kernel Sui, aimed at providing high-performance, low-cost infrastructure for Web3 applications. As a representative project of the Move ecosystem, Sui has recently shown strong development momentum.
Latest updates: During the TOKEN2049 conference, the Sui ecosystem received a lot of attention. The Sui team launched the SuiPlay game exhibition area, showcasing multiple game demos built on Sui. At the same time, the Sui ecosystem incubation program also attracted many developers to join. In addition, the launch of Grayscale Trust and Native USDC on Sui injected new vitality into the Sui ecosystem.
Market Impact: As a leading project in the Move ecosystem, the development of Sui will directly influence the direction of the entire Move ecosystem. Sui's innovative design and high-performance features are expected to attract more developers and projects to join, promoting the prosperity of the Move ecosystem. At the same time, Sui may also become a strong competitor to popular public chains like Solana, leading innovation in Web3 infrastructure.
Industry feedback: Industry insiders are generally optimistic about the development prospects of Sui. Well-known investor Arca stated that Sui's technological advantages and ecosystem construction are impressive, and it is expected to become a representative of the next-generation Web3 infrastructure. Meanwhile, crypto analysis firm Messari believes that Sui's innovative design is likely to address the scalability and composability challenges currently faced by blockchains.
2. Injective: HackQuest partners with Injective to launch the Injective Learning Track
Injective is a decentralized application platform aimed at Web3 developers, designed to provide developers with a one-stop solution for building and deploying DApps. Recently, Injective partnered with HackQuest to launch the Injective Learning Track educational program.
Latest update: The Injective Learning Track is a brand new learning resource platform designed to help developers learn the Injective ecosystem from scratch. The platform offers content covering Rust and EVM development, practical guides for the Injective SDK, and building AI Agents on Injective, among others. Upon completing the courses, learners will receive a certificate of completion jointly issued by Injective and HackQuest.
Market Impact: The launch of the Injective Learning Track will help attract more developers to join the Injective ecosystem, promoting the prosperous development of the ecosystem. At the same time, this project also reflects Injective's emphasis on developer education, which is expected to enhance Injective's influence in the developer community.
Industry feedback: Industry insiders believe that the Injective Learning Track is a very valuable educational resource. Well-known investor Placeholder stated that the project will help lower the barrier for developers to enter the Web3 space and promote talent cultivation in the industry. Meanwhile, Delphi Digital believes that the Injective Learning Track reflects Injective's commitment to the developer community and is expected to enhance Injective's influence among Web3 developers.
3. Midjourney is sued by Disney and Universal Pictures, AI copyright disputes arise again.
Midjourney is an artificial intelligence company, and its namesake image generation tool has garnered significant attention. However, the company has recently been sued by Disney and Universal Pictures, accused of using their copyrighted content without authorization to train its AI model.
Latest news: Disney and Universal Pictures have accused Midjourney of unauthorized use of its well-known film and television IP content, including "Star Wars," "Marvel," and "Shrek," to train its AI model and generate infringing images. The two companies have filed for a preliminary injunction, requesting a halt to Midjourney's image generation services.
Market impact: This lawsuit has once again sparked controversy between artificial intelligence and copyright. If Disney and Universal Pictures win the case, it will have a significant impact on AI companies using copyrighted content to train models, potentially leading to restrictions on related businesses. At the same time, it may also drive regulators to further standardize AI copyright issues.
Industry feedback: There are differing opinions among industry insiders regarding this lawsuit. Supporters believe that copyright protection is reasonable and that AI companies should not abuse others' intellectual property. However, some are concerned that excessive restrictions will hinder the development of AI technology. Noted investor Naval Ravikant stated that copyright laws need to keep pace with the times to adapt to the development of new technologies. Meanwhile, OpenAI's Sam Altman called for the establishment of a more open knowledge licensing system.
4. Nexo launches the second season of the points event, airdropping NFT badges for advanced users.
Nexo is a comprehensive service platform for Web3 users, integrating functions such as wallets, exchanges, and NFT markets. The platform recently announced the launch of the second season of its points program, which will airdrop NFT badges to premium users.
Latest Updates: Nexo will airdrop NFT badges to Nexo wallet users as a reward for the second season points event. Users need to connect their wallets to their exchange accounts by June 18 to participate. Additionally, over 500 other tier users will be randomly selected to qualify.
Market Impact: This event is expected to further enhance Nexo's influence among Web3 users. By issuing NFT badges, Nexo can boost user engagement and loyalty, thereby consolidating its position in the Web3 comprehensive service sector. At the same time, this event also reflects Nexo's innovative attempts in user incentives.
Industry feedback: Industry insiders have expressed admiration for Nexo's approach. Notable investor Placeholder believes that issuing NFT badges is a great way to incentivize users and can help strengthen user engagement. Meanwhile, Delphi Digital stated that Nexo's move reflects its emphasis on Web3 user experience and is expected to bring new insights to the industry.
5. BNB Chain announced the list of award-winning projects for BNB Hack, with AI agent tool market MCPForge winning the highest award.
BNB Chain is a Web3 ecosystem chain designed to provide developers with high-performance, low-cost infrastructure. Recently, BNB Chain announced the latest list of award-winning projects from the BNB Hack.
Latest updates: This selection covers submitted projects from May 25 to June 5. The AI agent tool market MCPForge has been awarded as a Tier 3 winner, receiving a $3,000 bonus, a $50,000 startup support package, and an exhibition opportunity on the BNB Chain channel. In addition, four projects: Quest Craft, Akai Space, Expiry Mitra, and NeuroBalance have been selected as potential Tier 4 winners.
Market Impact: The announcement of BNB Hack winning projects reflects BNB Chain's efforts in attracting quality projects. These projects cover a number of popular fields such as AI, gaming, and data annotation, and are expected to inject new vitality into the BNB Chain ecosystem. At the same time, it will also help increase the influence of BNB Chain among Web3 developers.
Industry Feedback: Industry insiders have expressed recognition for the award-winning projects. Notable investor Placeholder stated that these projects showcase the innovative vitality of the BNB Chain ecosystem and are expected to promote the development of Web3 applications. Meanwhile, Delphi Digital believes that BNB Chain, through activities like BNB Hack, attracts high-quality projects to join, which will help enhance its competitiveness in the Web3 infrastructure sector.
6. Aave will reopen a deposit limit of 500 million USD, raising the total cap to 1 billion USD.
Aave is a decentralized cryptocurrency lending platform that allows users to deposit and earn interest. The platform recently announced that it will reopen a deposit limit of 500 million dollars, raising the total cap to 1 billion dollars.
Latest update: Aave had previously opened a deposit limit of $500 million, but due to strong user demand, that limit was quickly exhausted. To meet market demand, Aave has decided to reopen a deposit limit of $500 million, raising the total limit to $1 billion.
Market Impact: Aave's approach reflects the strong demand in the cryptocurrency lending market. As more and more funds flow into the sector, platforms like Aave are expected to further expand their market share and drive industry growth. At the same time, this also helps attract more institutional investors to participate in the cryptocurrency market.
Industry Feedback: Insiders welcome Aave's initiatives. Notable investor Placeholder stated that the cryptocurrency lending market has great prospects, and Aave's timely increase in deposit limits can meet market demand. Delphi Digital believes that Aave's actions help enhance liquidity in the cryptocurrency market, providing more investment opportunities for institutional investors.
4. Economic Dynamics
1. U.S. inflation data for May is moderate, easing pressure on the Federal Reserve to raise interest rates.
Economic Background: The U.S. economy faced the impacts of high inflation and interest rate hikes in 2022, but the latest data shows that inflationary pressures have eased. In May, the Consumer Price Index (CPI) rose by 0.1% month-on-month, lower than the expected 0.2%, and increased by 4% year-on-year, the lowest level in nearly two years. The core CPI rose by 5.3% year-on-year, also lower than April's 5.5%. Nevertheless, the inflation rate remains above the Federal Reserve's 2% target. The labor market remains robust, with the unemployment rate holding steady at a low of 3.7% in May.
Important event: The inflation data for May released by the U.S. Department of Labor was mild, easing the market's concerns about the Federal Reserve continuing to raise interest rates significantly. Federal Reserve Chairman Powell had previously stated that if inflation data continues to rise, they would have to continue to raise interest rates significantly. The mild inflation data provides a reason for the Federal Reserve to pause or only raise interest rates slightly at the next meeting.
Market reaction: Mild inflation data drove US stocks higher, with the S&P 500 index rising by 0.9%. The dollar index fell, benefiting the performance of risk assets. Bond yields decreased, reflecting a cooling of market expectations for the interest rate hike path. Investors expect the Federal Reserve to raise interest rates by 25 basis points at the June meeting, rather than the previously anticipated 50 basis points.
Expert view: Goldman Sachs chief economist Jan Hatzius said that although inflation data has improved, it is still at a high level and the Fed is unlikely to stop raising interest rates immediately. He expects the Fed to pause rate hikes later this year and start cutting rates in 2024. JPMorgan Chase Chief Economist Michael Ferry believes that easing inflationary pressures will reduce the Fed's policy pressure, but more evidence is still needed that inflation is slowing.
5. Regulation & Policy
1. The U.S. Senate passes the procedural vote on the GENIUS Stablecoin Act.
The "GENIUS Stablecoin Act" was passed by a procedural vote in the U.S. Senate on June 12 and will be submitted to the House of Representatives for further consideration. The bill aims to provide a comprehensive solution for the regulation of stablecoins.
Background: As a bridge between cryptocurrency and the traditional financial system, the regulation of stablecoins has been a focal point of industry attention. As the scale of stablecoins continues to expand, their potential risks are becoming increasingly prominent, highlighting the urgent need to establish a comprehensive regulatory framework.
Policy Content: The "GENIUS Act" requires that all stablecoins must be 100% backed by US dollars or high liquidity assets, and compliant operators with an issuance scale exceeding $50 billion must undergo third-party audits annually. The Act also stipulates that stablecoin issuers must obtain federal licensing and adhere to stringent capital requirements, risk management, and consumer protection regulations.
Market Reaction: The Senate's passage of the bill is seen as a significant advancement, expected to provide clear guidance for stablecoin regulation. Industry insiders generally believe that reasonable regulation will enhance market confidence and promote the healthy development of stablecoins. However, there are also concerns that overly strict regulations might stifle innovation.
Expert opinion: Former Chairman of the U.S. Commodity Futures Trading Commission, Gary Gensler, stated, "Stablecoin regulation is a top priority, and this bill marks a critical step toward establishing a comprehensive regulatory framework." However, he also emphasized that regulation needs to balance innovation and risk management.
2. The Hong Kong Securities and Futures Commission recommends restricting the use of misleading names.
The Hong Kong Securities and Futures Commission has launched a consultation aimed at restricting unregulated entities from using misleading names to enhance investor protection.
Background: In recent years, some unregulated institutions have abused terms like "exchange" to mislead the public into believing they are regulated entities. This not only harms the interests of investors but also affects the reputation of Hong Kong as a financial center.
Policy Content: The Securities Regulatory Commission recommends expanding the list of restricted titles under the Securities and Futures Ordinance, prohibiting the use of names that may imply an association with exchanges, virtual asset trading platforms, and other institutions. Violators will face penalties.
Market reaction: Industry insiders generally believe that this move helps maintain market order and curb misleading marketing practices. However, there are also concerns that overly strict restrictions may affect the naming of innovative products and services.
Expert Opinion: Hong Kong financial law expert Chan Ka-yung stated, "This proposal aims to protect investors from deception while maintaining the reputation of Hong Kong as a financial center. However, it is essential to balance regulation and innovation during the implementation process."
3. Singapore's new cryptocurrency regulations may accelerate industry reshuffling.
The Monetary Authority of Singapore recently issued new regulations requiring cryptocurrency companies that have a physical presence in Singapore but provide offshore services to cease operations by June 30, drawing industry attention.
Background: Singapore has encouraged innovation in blockchain technology, with a generally positive regulatory attitude. However, in recent years, as cryptocurrency activities have become increasingly active, regulatory loopholes have gradually emerged, prompting authorities to tighten regulations.
Policy content: The new regulation states that all cryptocurrency service providers registered or operating in Singapore must cease providing services to overseas clients by June 30 if they have not obtained a Digital Token Service Provider license. Violators will face penalties.
Market reaction: Industry insiders point out that the new regulations expose the problem of ambiguous headquarters locations for crypto companies. Some companies have disclosed that they can no longer continue operations. However, there are also views that the new regulations will promote the standardized development of the industry.
Expert Opinion: Professor Wang Yanhui from the Lee Kuan Yew School of Public Policy at the National University of Singapore stated, "This is an attempt by Singapore's regulators to set up 'guardrails' for cryptocurrency activities. In the short term, it may accelerate the reshuffling of the industry, but in the long run, it will create a better development environment for compliant enterprises."