7.16 AI Daily Report The Crypto Assets industry is showing a positive development trend, and regulatory policies are gradually becoming clearer.

This title summarizes the main content of the article, reflecting the overall development trend of the Crypto Assets industry and the changes in the regulatory environment. It is concise and clear, capable of attracting the reader's attention.

1. Headline

1. The Ethereum ecosystem is witnessing a "enterprise-level" boom again, with SharpLink adding over 75,000 ETH in holdings in a single month.

The Ethereum ecosystem is witnessing a resurgence of "enterprise-level" enthusiasm, with technology companies continuously expanding their holdings of ETH. Data shows that by the end of this period, gaming company SharpLink Gaming has added over 75,000 ETH to its holdings, bringing its total to more than 280,000 ETH, making it the largest enterprise-level holder of ETH in the world.

Analysts point out that this trend stems from the rise of the "Microsoft-like" model of Ethereum. Companies are betting on Ethereum, holding it as a key infrastructure asset, aiming to share in the dividends of ecological growth. Meanwhile, the Ethereum ecosystem is accelerating the implementation of enterprise-level applications, providing more opportunities for traditional companies to participate.

Industry insiders believe that enterprise-level holding behavior is expected to drive the upgrade of the Ethereum token economic model, facilitating its transformation from a "circulating asset" to a "store of value asset." In the future, more enterprise-level players may enter the market, injecting new development momentum into Ethereum.

2. New Trends in US Crypto Regulation: House "Crypto Week" Policy Proposal in the Works

New developments in US crypto regulation have emerged. This week, known as "Crypto Week", the House of Representatives will hold multiple hearings on significant bills such as "CLARITY" and "GENIUS", focusing on important areas such as stablecoins, custody, and CBDC regulation.

Analysis indicates that these bills aim to establish a comprehensive regulatory framework for crypto assets, clarifying regulatory boundaries and compliance requirements. Among them, the "GENIUS Act" will grant the U.S. Securities and Exchange Commission the authority to comprehensively regulate companies issuing stablecoins.

Industry insiders indicate that as regulations become clearer, it will be beneficial in attracting more institutional funds into the market, promoting the long-term healthy development of the crypto market. However, there are also views that excessive regulation may limit innovation, and a balance must be struck between regulation and development.

3. Bitcoin's upward momentum pauses? Analysts warn of an 8% retracement risk

Bitcoin has shown signs of a pullback after consecutive upward movements. Data shows that after the release of the US CPI data, Bitcoin fell from a high of $123,000 to $117,000, a decrease of 4.9%. On-chain monitoring indicates that the amount of BTC flowing into exchanges in a single day exceeded 80,000, signaling strong selling pressure.

Analysts point out that if Bitcoin cannot hold the key support level of $117,000, it may further drop to the $107,000 area, indicating a potential decline of 8%. This position overlaps with historical accumulation clusters and could become an important defense line for bulls.

On the other hand, there is also the view that Bitcoin is currently in the late stages of a bull market rally, and a short-term correction is inevitable. As long as there are no fundamental changes, Bitcoin will continue its upward trend and is expected to break through the $150,000 mark in the future.

4. The artificial intelligence tokens are leading the surge, with NEAR, ICP, and others at the forefront of the gains.

The artificial intelligence sector continues to strengthen. Data shows that in the past 24 hours, the AI sector rose by 4.63%, with Fetch.ai and tensor increasing by 6.61% and 8.37% respectively, leading the mainstream cryptocurrencies.

Analysis indicates that the rapid development of artificial intelligence technology has driven the demand for related tokens. With the popularity of applications like ChatGPT, investors' attention to AI concept coins continues to rise. In addition, the U.S. government announced a $90 billion AI investment plan in Pennsylvania, which also brings positive news to the field.

However, there are also viewpoints that believe the current AI sector is still in a speculative stage, lacking truly killer application scenarios. In the future, whether AI tokens can continue to rise depends on the actual progress of relevant technologies.

5. The Hong Kong Securities and Futures Commission has relaxed the time restrictions for foreign personnel providing virtual asset services.

The Hong Kong Securities and Futures Commission has issued a new policy, relaxing the time restrictions for foreign individuals providing virtual asset services in Hong Kong. The new regulation extends the annual time limit from 30 days to 45 days.

Analysts believe that this initiative aims to attract more overseas professionals and lay the foundation for Hong Kong to build an international virtual asset center. With the continuous improvement and opening up of regulatory policies, Hong Kong is expected to become an important hub for the global virtual asset industry.

However, some views point out that Hong Kong still faces many challenges in attracting virtual asset enterprises. In addition to regulatory policies, continuous investment is needed in areas such as talent cultivation and infrastructure construction. Only through comprehensive development can Hong Kong truly realize its ambition of becoming a virtual asset center.

2. Industry News

1. Important signal for Bitcoin (BTC): Developers propose to "freeze" 1 million tokens of Satoshi Nakamoto to address the quantum computer crisis.

Quantum computing is no longer a distant legend in the laboratory. As experts warn, the Shor algorithm could potentially reverse-engineer private keys on sufficiently large quantum computers in the future, posing a potential crack in Bitcoin's encryption moat. This potential threat could not only challenge the security of Bitcoin but may even affect the millions of Bitcoins held by Satoshi Nakamoto in the early days.

To address this risk, the Bitcoin developer community proposed an extreme measure: to freeze 1 million Bitcoins belonging to Satoshi Nakamoto. This initiative aims to protect the security of the Bitcoin network and prevent the large amount of Bitcoins from being hacked and stolen. However, it has also sparked intense debate within the community, with some arguing that it contradicts the decentralized philosophy of Bitcoin.

Analysts point out that the threat of quantum computers to cryptocurrencies cannot be ignored. However, freezing Satoshi's bitcoins may pose even greater risks, such as undermining community consensus and triggering splits. Perhaps a better solution is to accelerate the research and upgrading of quantum-resistant algorithms. In any case, the Bitcoin community needs to reach a consensus on this issue to ensure the long-term security and sustainability of the network.

2. Important signals for Ethereum (ETH): SharpLink has purchased 5,188 ETH again, and the reason for the large reserves by the tech company has been found.

Ethereum (ETH) is currently reported at around $3140 during the Asian early session today (16th), showing strong bullish momentum. SharpLink Gaming has purchased an additional 5,188 ETH, bringing its total holdings to 300,000 coins. Ray Youssef, the CEO of the financial application NoOnes, stated that more and more companies are viewing Ethereum as critical infrastructure, leading to a surge in ETH allocations in corporate funds.

Analysis shows that there are three main reasons why tech companies are heavily accumulating Ethereum:

1. The importance of Ethereum as a blockchain infrastructure is increasingly prominent, and enterprises hope to participate in ecosystem construction by holding ETH.

2. ETH is regarded as a reserve asset with good investment value and appreciation potential.

3. Enterprises hope to inject new vitality into their business by leveraging innovative applications such as DeFi and NFTs in the Ethereum ecosystem.

The large-scale purchases of ETH by institutions will undoubtedly drive up its price. However, some analysts caution that significant holdings by companies may exacerbate market volatility, and investors should remain cautious. Overall, the development prospects of the Ethereum ecosystem are broad, attracting the favor of many tech giants. The future price trend is worth continuous attention.

The Crypto Fear and Greed Index has dropped to 70, indicating a slight cooling of market "Greed" sentiment.

On July 16, according to Alternative data, the current cryptocurrency Fear and Greed Index is 70 (yesterday it was 73), indicating a slight cooling of market "greed" sentiment, which still remains in the "greed" range.

Analysis indicates that the slight cooling of market sentiment is mainly due to the following reasons:

1. Bitcoin saw a pullback after breaking through $120,000, triggering some profit-taking behavior.

2. After the release of the US inflation data, the expectations for a rate hike by the Federal Reserve have increased, putting macro pressure on the cryptocurrency market.

3. Some investors show cautious sentiment towards the short-term rise of altcoins.

Overall, however, market sentiment remains relatively high. Analysts believe that with institutional funds continuously flowing in and regulatory policies becoming clearer, the upward momentum in the crypto market still exists. At the same time, it is important to be aware of the risks that greed may bring, and investors are advised to maintain rationality and manage their risk exposure.

4. t: The heat of "Crypto Week" in the U.S. is rising, with Ethereum's increase being led by Asia.

On July 16, t released today's market analysis, stating that Ethereum has risen 18% this month, with 17 percentage points coming from the Asian trading session. Over the past week, Bitcoin and Ethereum have increased by 8% and 19%, respectively. The approaching "Crypto Week" and rising policy expectations have boosted market sentiment. The inflow of funds through ETFs in the U.S., corporate allocations, and the expectations of Circle's listing have become important driving forces in the market; however, the influence of Ethereum's price setting is gradually shifting towards the Asian market.

Analysis indicates that the rise in Ethereum prices is mainly driven by the following factors:

1. Asian investors have shown great interest in the innovative applications of the Ethereum ecosystem.

2. The community influence of Ethereum in the Asia region continues to expand.

3. Asian exchanges and institutional investors are heavily investing in Ethereum.

4. The practical application scenarios of Ethereum in the Asian region are becoming increasingly rich.

Although the favorable US policies will still have some impact on the cryptocurrency market, the Asian market is becoming the pricing center. In the future, the price trend of Ethereum may be more dominated by the Asian market. Investors need to closely monitor the movements of the Asian market.

5. Gate Research Institute: Review of the Cryptocurrency Market in June 2025

In June 2025, the total market value of cryptocurrencies fluctuated between $3.2 trillion and $3.6 trillion, as geopolitical conflicts in the Middle East temporarily dampened market sentiment. Solana led with an average daily trading volume of nearly 100 million transactions, followed closely by Base with 9.7 million transactions. SEI gained popularity due to price increases and favorable policies, with a single-day trading volume exceeding $94 million in mid-June, marking a short-term increase of over 50%. Global regulatory policies have become increasingly divergent, with Singapore tightening regulations, the United States advancing stablecoin legislation, and South Korea and Vietnam maintaining a friendly stance, leading to a gradual warming of the overall environment.

Analysis indicates that the cryptocurrency market exhibited the following main characteristics in June:

1. The overall market is fluctuating, with some popular cryptocurrencies performing actively.
2. Trading activity has increased, but it is still below the peak of the bull market.
3. Regulatory policies are diverging, intensifying market differentiation, with stricter measures in some regions.
4. Regulatory scrutiny of stablecoins has become a focal point, attracting market attention.
5. Institutional entry attitude is cautious, and capital inflow is slowing down.

Overall, the cryptocurrency market lacked a clear direction in June. Future trends will depend on the macroeconomic situation, regulatory policies, and the flow of institutional funds. Investors should remain cautiously optimistic and manage their risk exposure.

6. Analyst: The strength of ETH may indicate that BTC's market share has peaked, with market funds flowing into Ethereum and altcoins.

On July 16, Cointelegraph reported that crypto analyst Matthew Hyland stated that if the price of Ethereum continues to rise, Bitcoin's market dominance may have peaked. Hyland posted on the X platform on Tuesday: "If ETH breaks out of an upward trend against BTC and maintains a strong momentum, then the possibility of Bitcoin's market share peaking is as high as 99%." In the past 7 days, Bitcoin's market share has dropped by 1.85%, and crypto trader Ash Crypto indicated that this is because "funds are flowing into Ethereum and other altcoins."

Analysts believe that the main reasons for the decline in Bitcoin's market share include:

1. The Ethereum ecosystem is increasingly prosperous, attracting a large influx of capital.
2. The activity level in the altcoin market has increased, and speculative demand has risen.
3. Institutional investors are beginning to favor large-cap cryptocurrencies such as Ethereum.
4. Bitcoin price rises are lackluster, and investors are turning to other tracks.

However, some analysts remain cautious, believing that Bitcoin's status as the "digital gold" of cryptocurrencies is difficult to shake in the short term. How Bitcoin will evolve in relation to other currencies in the future still requires further observation.

7. SUI rebounded 38% in seven days, with on-chain activity rising, pushing for new highs. If it retraces to $3.5, it may become the best entry point.

The smart contract platform Sui (SUI) has risen 38% in the past 7 days, with on-chain active addresses breaking the million mark again, indicating a simultaneous recovery in capital and user interest. Analysts believe that the current SUI price has returned to the previous high of $4, but activity has yet to reach the peak of May, suggesting that the market may just be starting. TVL has reached a new high for 2025, and with the ecological layout of Bitcoin derivatives such as xBTC, it will become a catalyst for SUI to challenge the historical high of $5.35. If there is a short-term pullback to $3.5, it may serve as a key support level and the best buying range.

Analysts point out that the recent strength of SUI is mainly attributed to the following factors:

1. Ecological construction continues to advance, attracting new capital and users to enter the market.
2. The layout of the Bitcoin derivative asset ecosystem brings new growth momentum to SUI.
3. The rebound in on-chain activity has boosted market confidence.
4. Technical indicators show that SUI is expected to continue its upward trend.

However, some analysts remind that SUI's current valuation is already high, and investors should be wary of the risk of a correction. If a correction occurs, around $3.5 may be a better entry point. Overall, SUI, as an emerging public chain, is worth continuous attention.

3. Project News

1. layer releases the latest product roadmap, committed to building the ultimate Bitcoin DeFi infrastructure.

layer is a project focused on Bitcoin DeFi infrastructure. On July 16, the project officially released its summer launch video, titled "The Ultimate Bitcoin DeFi Infrastructure." Project co-founders Kevin He and Charlie Hu systematically disclosed layer's latest technological advancements and detailed product roadmap for the first time, clarifying their goal of building the ultimate BTCFi infrastructure.

According to the information disclosed at the press conference, the key progress recently made by layer includes: 1. The launch of the Beta version of the VM Bridge mainnet, which is the first Bitcoin cross-chain solution based on the VM paradigm; 2. The release of the layer Network 2.0 white paper, marking the entry of the layer Network into the Rollup architecture phase; 3. The layer Network V3 will focus on high-performance execution, aiming to achieve a customizable high-performance native transaction engine, a horizontally scalable cluster system architecture, an EVM-compatible high-performance parallel execution engine, and provide an excellent user experience.

layer aims to build a high-performance, scalable DeFi infrastructure for Bitcoin. Its product roadmap showcases the project's ambition to enhance Bitcoin network performance, achieve compatibility with the Ethereum ecosystem, and optimize user experience. If layer can deliver on its promises, it is expected to drive the prosperous development of the Bitcoin ecosystem and provide better infrastructure support for the application of Bitcoin in the DeFi field.

The project has received support and investment from several well-known institutions, including Polychain Capital, Franklin Templeton, Andreessen Horowitz, StarkWare, etc., providing a solid foundation for its continued research and ecological development. Industry insiders are optimistic about the technological strength and development prospects of layer, looking forward to its ability to bring more innovations to the Bitcoin ecosystem.

2. The Sui ecosystem continues to heat up, and the Move language project is attracting market attention.

Move is an emerging resource-oriented programming language developed by Meta. Recently, the blockchain project based on Move, the Sui ecosystem, has been gaining traction, attracting widespread attention in the market.

Sui is a brand new blockchain project initiated by former employees of Meta. The project uses the Move language and new consensus mechanisms Narwhal and Tusk, aiming to create a high-performance, low-cost blockchain platform. Sui conducted its token issuance in May this year, and since then, ecological projects and community building have been steadily increasing.

At the recent TOKEN2049 conference, the Sui ecosystem demonstrated strong development momentum. The Sui Builder House became one of the hottest events before the conference, attracting the attention of numerous developers and investors. Meanwhile, projects within the Sui ecosystem, such as Cetus, Navi, and Scallop, also garnered significant attention.

The emergence of the Move language has brought new possibilities for blockchain development. Compared to traditional languages like Solidity, Move has advantages in resource management, security, and composability. Therefore, projects based on the Move language, such as Sui, Aptos, and Movement, have received significant attention from the market.

Analysts believe that the continuous warming of the Sui ecosystem reflects the market's desire for emerging technologies and innovative projects. If Sui can deliver on its promises and provide developers with high-performance, low-cost blockchain infrastructure, it is expected to drive the development of the entire blockchain industry. However, it is also necessary to be cautious of the risks and uncertainties that may arise with emerging projects.

3. Anoma aims to simplify the Web3 user experience, leading a new wave of innovation.

Anoma is an emerging blockchain project aimed at driving the mass adoption of Web3 by simplifying the user experience. The project is attempting to address the complex user interface issues of current Web3 applications.

According to a study published in the Blockchain Research Journal in 2023, 68% of Web3 users abandon transactions due to poor user interface design. Anoma is trying to change this situation by providing a user-friendly interface that allows users to easily choose blockchains, bridges, and decentralized exchanges (DEX) without manual operation, making the process more convenient.

Currently, Anoma is leading in the ranking of Kaito's token generation event (TGE), indicating that the market is interested in the progress of the project's token issuance. If Anoma can successfully simplify the user experience of Web3 applications, it is expected to drive the mass adoption of Web3 technology and lead a new wave of innovation.

However, some analysts hold a cautious attitude towards the development prospects of Anoma. They believe that while simplifying the user experience is important, the core values of Web3 applications lie in decentralization, transparency, and autonomy. If the pursuit of user experience is taken too far at the expense of these core values, it may deviate from the original intention of Web3.

Therefore, Anoma needs to seek a balance between user experience and the core values of Web3 in order to truly promote the development of Web3 technology. Industry insiders will continue to pay attention to Anoma's development trends, hoping that it can bring new innovations to the Web3 ecosystem.

4. The Ethereum ecosystem tokens are experiencing a general increase, with REZ rising over 34% in the last 24 hours.

On July 16th, Ethereum ecosystem tokens generally rose, with REZ performing the most impressively, achieving a 24-hour increase of 34.83%.

REZ is a token based on Ethereum, issued by the Rezilion project. Rezilion is a project focused on software supply chain security, aimed at helping enterprises identify and fix vulnerabilities in software. The REZ token is used to pay for services on the Rezilion platform.

Recently, with the recovery of the cryptocurrency market, tokens within the Ethereum ecosystem have generally strengthened. In addition to REZ, tokens such as AAVE, ENS, CRV, and ETHFI have also seen an increase of over 10% in the last 24 hours.

Analysts believe that the rise of Ethereum ecosystem tokens is mainly driven by the increased activity on the Ethereum network. As applications such as DeFi and NFTs on Ethereum continue to develop, the demand for the Ethereum network continues to grow, thereby driving the demand for ecosystem tokens.

In addition, the upcoming Shanghai upgrade of Ethereum will inject new momentum into ecological tokens. The Shanghai upgrade will allow staked Ether to be unlocked, which could further boost the activity of the Ethereum network.

However, some analysts remind that the rise of Ethereum ecosystem tokens may be too aggressive and there is a certain risk of a bubble. They suggest that investors should invest cautiously and closely monitor the actual use of the tokens and the progress of the projects.

Overall, the general rise of Ethereum ecosystem tokens reflects the market's optimistic expectations for the development prospects of the Ethereum network. However, it is also necessary to be vigilant about potential risks; rational investment is a wise choice.

Chainlink price is expected to break through $16, LINK trend is attracting much attention.

Renowned crypto analyst CRYPTOWZRD pointed out that the current trend of Chainlink(LINK) is still unclear, and the market is waiting for a clear breakout signal. If it can successfully break through the key resistance level of 16 dollars, LINK is expected to initiate a strong rebound, challenging the target of 30 dollars.

Chainlink is a decentralized blockchain oracle network that aims to provide reliable external data inputs for smart contracts. LINK is the token of the Chainlink network, used to pay for oracle service fees.

Recently, the price of LINK has been fluctuating in the range of 6-8 dollars and has not formed a clear trend. However, analysts believe that LINK's strong performance has already been evident in the LINK/BTC trading pair, which could become a key indicator driving LINK's rise.

If LINK can successfully break through the key resistance level of $16, it will open up upward space and is expected to challenge the historical high of $30. At that time, LINK's increase is expected to exceed 100%, which is undoubtedly an enticing opportunity for investors.

However, some analysts remain cautious about LINK's upward prospects. They believe that Chainlink, as a oracle network, largely depends on the overall development of the blockchain industry. If the blockchain industry fails to achieve widespread adoption, the demand for Chainlink may also be restricted.

Therefore, while investors pay attention to the price trend of LINK, they also need to closely monitor the development trends of the blockchain industry and rationally assess the long-term development prospects of Chainlink. After all, only when the actual application scenarios of the project are fully explored can the token price receive lasting support.

6. 21Shares Analyst: Bitcoin fundamentals are good, and a downward trend is hard to see in the short term.

Cryptocurrency product provider 21Shares cryptocurrency research strategist Matt Mena stated that Bitcoin is unlikely to enter a downward trend in the near term, as its current movement is supported by solid fundamentals.

Matt Mena pointed out: "There is a structural imbalance between the surging demand and the rapidly decreasing supply, making the possibility of a long-term pullback relatively low. Bitcoin is performing strongly under the current macroeconomic environment, with limited downside risk in the short term."

He further analyzed that the activity level of the Bitcoin network and on-chain indicators remain healthy, showing strong confidence among holders. In addition, with the gradual improvement of the cryptocurrency regulatory environment, investors' confidence in Bitcoin is also continuously increasing.

Therefore, the 21Shares research team believes that in the current market environment, Bitcoin is unlikely to show a downward trend. They predict that Bitcoin will maintain a relatively stable price range in the coming months.

However, some analysts remain cautious, pointing out that there is still uncertainty in the price trends of Bitcoin. They remind investors to pay attention to various risk factors that may affect the price of Bitcoin and to invest prudently.

In summary, most analysts believe that Bitcoin's current fundamentals are relatively solid, and the possibility of a short-term decline is small. However, the long-term trend still requires close attention to market movements and external factors.

4. Economic Dynamics

1. The U.S. June CPI data met expectations, inflationary pressures continue.

Economic Background: The US economy maintained a moderate growth trend in the first half of 2025. The annualized quarter-on-quarter GDP growth rate for the second quarter was 2.1%, slightly lower than the 2.4% of the previous quarter. The job market continued to improve, with an unemployment rate of 3.5% in June, staying at the lowest level in nearly 50 years for the fourth consecutive month. However, inflationary pressures remain high, posing a major obstacle to economic recovery.

Important Event: Data released by the U.S. Bureau of Labor Statistics on July 16 shows that the June CPI increased by 2.7% year-on-year, in line with market expectations. Among these, the rise in food and energy prices is the main factor driving overall inflation. The core CPI increased by 0.2% year-on-year, lower than expected, mainly dragged down by declines in new car, airfare, and accommodation prices.

Market reaction: Investors reacted mildly to the inflation data. The three major U.S. stock indexes rose slightly that day, with the Dow Jones up 0.31% and the Nasdaq up 0.63%. The dollar index fell slightly by 0.2%. The bond market showed a mixed trend, with long-term treasury yields rising slightly while short-term treasury yields fell. Overall, the market's expectation for the Federal Reserve to raise interest rates in September has cooled.

Expert Opinion: Glenn Purves, Global Macro Chief at BlackRock Investment Institute, stated that although the core CPI increase was lower than expected, there are increasing signs that tariffs are pushing up prices on certain goods. He anticipates that inflationary pressures will further intensify as companies deplete the inventories built up to cope with tariffs. UBS Chief Economist Seth Kaplan believes that while inflationary pressures have eased somewhat, they remain at elevated levels, making it unlikely for the Federal Reserve to cut interest rates in September.

2. The U.S. Senate delays vote on key cryptocurrency bill

Economic Background: Digital assets, as an emerging asset class, are gradually integrating into the traditional financial system. According to Goldman Sachs, by 2025, the global cryptocurrency market value is expected to exceed $10 trillion. Meanwhile, governments around the world are also accelerating the formulation of relevant regulations to standardize and promote the healthy development of this field.

Important Event: The U.S. Senate was originally scheduled to vote on three key cryptocurrency bills on July 16, including the GENIUS Act, the CLARITY Act, and the TRUST Act. However, due to opposition from some Republicans, the vote has been postponed. President Trump subsequently voiced his support for these bills and communicated with the opponents, with expectations that the bills will soon be back on the agenda.

Market reaction: The cryptocurrency market experienced a brief turbulence after the news was announced. Bitcoin fell by 2.8% to $119,000, while Ethereum dropped by 3.1% to $3,100. However, it soon stabilized. Analysts believe that the market has fully absorbed the regulatory expectations, and the likelihood of the bill finally being passed is quite high.

Expert Opinion: Goldman Sachs analyst Jennifer Scarpalato stated that these bills aim to establish a unified regulatory framework for the cryptocurrency industry, which is conducive to attracting more institutional investors. She believes that while it may bring some volatility in the short term, clear regulations will provide greater certainty and growth opportunities for the industry in the long run. Sonia Moore, head of digital assets at JPMorgan, emphasized that the introduction of regulations will help cryptocurrencies move towards the mainstream market.

3. The China-U.S. trade negotiations have hit a deadlock, and tariff threats have resurfaced.

Economic Background: Since 2025, the pace of global economic recovery has slowed. According to the latest forecasts from the International Monetary Fund, the global economic growth rate for 2025 is projected to be 2.8%, down from the previous 3.2%. As the two largest economies in the world, the development of trade relations between China and the United States will have a significant impact on the global economy.

Important Event: The governments of China and the United States issued a statement on July 16 regarding the progress of the new round of trade negotiations. Both sides have made progress in certain areas, but there are still differences on key issues. The Trump administration has threatened to impose a 10% tariff on all imported goods if an agreement cannot be reached by August 1.

Market reaction: The shadow of trade wars looms again, and global financial markets fell in response. The three major U.S. stock indexes suffered heavy losses, with the Dow Jones down 2.1% and the Nasdaq down 3.3%. The U.S. dollar index rose slightly by 0.3%. Commodity futures generally declined, with international oil prices dropping by 2.5%. The RMB against the U.S. dollar also experienced its largest single-day decline.

Expert Opinion: Bloomberg economist Karl Ricard states that both the Chinese and U.S. governments are facing pressure from a slowing domestic economy, and therefore both hope to reach a mutually beneficial agreement. However, there are still significant differences between the two sides, and the risk of a trade war is rising. He anticipates that if an agreement cannot ultimately be reached, global economic growth will further slow down. HSBC's chief economist Zhang Jianmin believes that even if both sides eventually reach an agreement, the tariffs that have already been implemented will continue to affect global supply chains and consumer confidence.

5. Regulation & Policy

1. The U.S. House of Representatives' "Crypto Week" policy proposal is gaining traction, focusing on stablecoin regulation.

The U.S. House of Representatives will advance several cryptocurrency-related bills this week, including the GENIUS Act and the CLARITY Act. The GENIUS Act aims to establish a regulatory framework for stablecoins, requiring stablecoin issuers to hold equivalent cash or short-term government bonds as reserves. The bill was passed by the Senate and is now being reviewed by the House, and it is expected to be voted on this week.

The "CLARITY Act" aims to address the market structure of digital assets by establishing regulatory rules for cryptocurrency exchanges, custody services, and more. The act will clarify the definitions and classifications of digital assets, providing a basis for regulatory enforcement.

The advancement of these bills reflects the determination of the U.S. government to strengthen cryptocurrency regulation. With the support of the Trump administration, the legislative process is expected to accelerate, bringing regulatory clarity to the industry. However, it may also increase compliance costs and impact innovative development.

Goldman Sachs analysts indicate that stablecoin regulation will benefit institutional investors' participation, propelling crypto assets into the mainstream market. However, it may also compress the development space for innovative models such as DeFi. Industry insiders are calling on lawmakers to seek a balance between regulation and innovation.

2. The Hong Kong Securities and Futures Commission relaxes the time limit for professionals visiting Hong Kong to provide virtual asset services.

The Hong Kong Securities and Futures Commission issued a circular, extending the limit for visiting professionals to provide virtual asset services in Hong Kong from 30 days to 45 days per year. This move aims to facilitate overseas practitioners in conducting regulated activities in Hong Kong.

The Hong Kong Securities and Futures Commission stated that this optimization measure will provide greater flexibility for visiting professionals. It also reflects Hong Kong's commitment to creating a favorable regulatory environment for virtual assets.

The Chief Financial Technology Officer of Hong Kong pointed out that Hong Kong will create favorable conditions for the virtual asset industry in terms of regulation, talent, and funding. Easing time restrictions will help attract more overseas talent and capital to Hong Kong.

Experts believe that Hong Kong is accelerating the pace of virtual asset regulation. The "Anti-Money Laundering and Counter-Terrorist Financing ( Amendment ) Ordinance" is expected to take effect on August 1 this year, establishing a licensing system for institutions such as virtual asset exchanges in Hong Kong. Hong Kong's regulatory policies will inject new momentum into the development of digital finance in Asia.

3. The UK promotes the development of distributed ledger technology and asset tokenization.

The UK Treasury has announced its support for financial markets to explore distributed ledger technology ( DLT ) and asset tokenization solutions, promoting the widespread application of blockchain technology in the financial sector.

The strategy proposes that the government will promote the identification of the best application scenarios for DLT in the industry, support the tokenization of financial assets and the digitization of post-trade processes, and test various digital payment solutions, including stablecoins, through a "digital securities sandbox."

In addition, the UK will improve relevant legislation and regulatory frameworks to encourage the industry to form cross-market alliances, drive digital innovation, and solidify its leading position in global fintech.

Analysts believe that the UK's move will pave the way for the implementation of blockchain technology in the traditional financial sector. Tokenization helps improve asset liquidity and transaction efficiency, while DLT can reduce operational costs and enhance transparency.

Andrew Bailey, the Governor of the Bank of England, stated that the central bank is studying central bank digital currency ( CBDC ) and will develop it alongside private stablecoins. He emphasized that the central bank needs to maintain an open mindset and embrace financial technology innovation.

Experts point out that the UK's regulatory policies will create a favorable environment for blockchain and cryptocurrency companies, helping to attract global talent and investment, and consolidating the UK's leading position in the fintech sector.