The regulation of virtual assets in Hong Kong entered a new phase on June 1, with unlicensed institutions being prohibited from operating. Hashkey Exchange successfully obtained a full license, becoming a leader in the industry. Although stricter regulations bring uncertainty, they also pave the way for long-term development, and are expected to attract more capital in the future, further driving market breakthroughs.

The article discusses the practice of Regulatory Sandbox in the field of Blockchain, emphasizing its balancing role between fintech innovation and regulation. Several regions in China, such as Ganzhou in Jiangxi, Taizhou in Shandong, and Hong Kong, have begun to explore this model, but further development is needed to ensure effective connections between enterprises and regulators, promoting the coordination of innovation and risk.

Crypto Assets projects are facing the dilemma of falling below the issue price after token issuance, which has triggered a series of problems due to viewing the community as a potential selling force. Many projects build communities merely to meet listing requirements, attracting users who are focused on obtaining rewards, ultimately leading community members to be more inclined to sell rather than support, thereby exacerbating Token devaluation.

This week's industry dynamics mainly revolve around interest rate decisions, project upgrades, and token unlocks. Key attention is given to the policy directions of the Fed and the Bank of Japan, as well as functional adjustments and new launches from several projects such as OpenSea and Sonic, reflecting the industry's continuous innovation and changes.

MicroStrategy has successfully been included in the Nasdaq 100 Index, becoming one of the 75 largest non-financial companies on Nasdaq, significantly enhancing the market's follow on its Bitcoin investment. Analysts expect this event may trigger new passive investment inflows, although the company's value primarily comes from its Bitcoin holdings. MicroStrategy's Bitcoin strategy and the innovative "BTC yield" concept have also attracted attention.

Fed Chairman Powell faces the dual challenges of economic policy and political pressure. His conflict with Trump has intensified, especially regarding interest rate cuts, and Powell's tenure may raise concerns in global markets, affecting the stability of the dollar and the bond market. Overall, Powell's situation tests the independence of the Fed and the future direction of monetary policy.

The regulation of virtual assets in the UAE centers around the Abu Dhabi Global Market (ADGM) and the Dubai Virtual Assets Regulatory Authority (VARA), both of which have differences in regulatory frameworks, application requirements, and fees. ADGM focuses on high-standard TradFi licenses, suitable for the transformation of financial institutions; whereas VARA is more flexible and covers emerging areas such as NFTs. Understanding these differences helps practitioners choose the appropriate regulatory environment to ensure Compliance operations.

The "GENIUS Act" has experienced ups and downs, entering the debate stage in the U.S. Senate with an overwhelming number of votes, aiming to establish a federal regulatory framework for the stablecoin market. The core provisions of the bill involve dual regulation, strict reserve requirements, and consumer protection, and the market will face structural reshuffling, while specific conflicts of interest and ethical controversies remain the focus of attention. If the bill passes, it could reshape the global financial landscape, but it faces challenges from the House of Representatives, the President's stance, and judicial challenges.

Ethereum enters the institutional era, ETH becomes the preferred strategic reserve asset
Ethereum is entering a new decade, ushering in a brand new era. As the world's most secure and decentralized programmable blockchain, it has become the platform of choice for institutions. Just as Bitcoin has earned the title of "digital gold", Ethereum's native asset ETH is also gaining recognition as "scarce digital oil".
More and more institutions are beginning to include ETH in their long-term strategic reserves. Data shows that by 2025, the "strategic ETH reserves" will have exceeded 1.7 million coins, worth approximately $5.9 billion. With the increase in institutional holdings, ETH has become the first digital commodity that can generate returns.
ETH can be seen as an "internet bond", staking provides institutions with a low-risk way to accumulate returns. As the adoption rate of Ethereum continues to rise, ETH is becoming increasingly scarce, and institutional attention is beginning to shift towards staking and distributed verification.

The Bitcoin 2025 Conference will be held from May 27 to 29 in Las Vegas, and Vice President Vance's speech is much anticipated. Historical data shows that Bitcoin prices often fall during past conferences, and investors need to respond cautiously to market fluctuations.

On July 23, 2024, the United States officially launched 9 Ethereum Spot ETFs, which began trading on multiple exchanges. The total trading volume on the first day was approximately $434 million, with Grayscale Ethereum Trust performing outstandingly. Despite the active trading of the ETFs, the ETH price saw a modest rise. Industry insiders expect these ETFs to attract between $15 billion and $20 billion in inflows in the first year.

The evolution of Ethereum rollup security is divided into three stages, with the control of the security council gradually dropping. Stage 0 is absolute control, Stage 1 requires approval from 75% of members, and Stage 2 only intervenes in case of conflicts. Research indicates that the trust proof system can jump directly from Stage 0 to Stage 2, but it must be handled with caution to avoid affecting security. The overall process requires a balance between the role of the council and the reliability of the system.

Recently, HashKey Eco Labs discussed the combination of financial institutions and Web3 with Taiping Hong Kong, exploring blockchain technology, asset tokenization, and the challenges faced. Taiping Hong Kong hopes to promote Web3 ecosystem development through the tokenization of financial assets and suggests that traditional financial institutions establish dedicated teams to explore this trend. Finding a balance between compliance and innovation will help drive industry maturity.

A theft case involving millions of encryption coins has sparked judicial qualification disputes, leading to debates about the legal nature of encryption assets. On one hand, encryption assets are viewed as data, while on the other hand, they are considered to possess property attributes. The outcome of the case has led to controversies, and how relevant laws will respond to encryption assets still needs to be clarified.