7.10 AI Daily AI and Blockchain Integration Leading a New Generation Web3 Ecosystem

1. Headline

1. xAI, led by Musk, releases Grok 4: touted as "the smartest AI on the planet"

Elon Musk's artificial intelligence company xAI has officially released its latest generation AI model, Grok 4, touted as the "smartest AI on the planet." This model combines unprecedented reasoning abilities, PhD-level academic standards, and integration of multiple tools, breaking records in several benchmark tests.

Grok 4 is endowed with multi-agent reasoning capabilities, allowing it to run multiple reasoning threads simultaneously and coordinate their outputs. This enables Grok 4 to handle complex multi-step tasks and open-ended questions. Additionally, Grok 4 has predictive market functionality, allowing it to make probabilistic predictions about the possible outcomes of future events.

In the academic field, Grok 4 demonstrates a doctoral level of proficiency. It is capable of not only writing high-quality papers but also proposing innovative theories and insights. Musk expects Grok 4 to bring substantial technological inventions or academic significance within a year.

The release of Grok 4 marks another major breakthrough in artificial intelligence technology. Its powerful capabilities will bring revolutionary changes to various industries. However, it has also raised concerns about the safety and ethical issues of AI. Ensuring the controllability and transparency of AI systems will be a significant challenge that needs to be addressed in the future.

2. Bitcoin hits a new high of $112,000, driven by institutional buying.

The price of Bitcoin has surpassed $112,000, setting a new historical high once again. Analysts point out that this increase is mainly driven by substantial buying from institutional investors.

Data shows that when Bitcoin reached a new high, the Coinbase premium gap climbed to 42 points. This means that the price of Bitcoin on Coinbase was $42 higher than on other exchanges, indicating strong demand from U.S. investors. Last week, the gap had reached 87.76 points, suggesting that the buying pressure was even stronger at that time.

Analysts believe that the Coinbase premium gap is an important indicator of demand from American investors. A positive premium usually means that there is increased interest in Bitcoin from institutions or retail investors. Even after reaching an all-time high, demand remains strong, indicating that bullish sentiment in the market may not yet be over.

At the same time, the decrease in on-chain capital inflows and the rise in the value of the dollar have raised concerns about the impact of market sentiment and inflation on Bitcoin. Some believe that the upward momentum of Bitcoin may be suppressed. However, there are also views that the continued purchases by institutional investors will continue to support the rise in Bitcoin prices.

3. Ripple XRP wins lawsuit, tokenization prospects are broad.

In the long legal dispute with the U.S. Securities and Exchange Commission, Ripple Labs achieved victory. This opens up new prospects for the tokenization of XRP.

Ripple CEO Brad Garlinghouse emphasized the necessity of clear cryptocurrency regulations during a Senate hearing. He believes this discussion is a positive step towards educating lawmakers on the importance of fair regulation of the crypto market.

According to him, XRP will not only surpass Ethereum to become the leader in the tokenized space but will also drive the development of the entire cryptocurrency ecosystem. The tokenization tools, enhanced interoperability, and compliance design of the XRP blockchain provide a powerful playground for financial institutions.

Analysts point out that XRP's victory will have a positive impact on tokenization. Tokenization has the potential to facilitate capital formation and enhance investors' ability to use their assets as collateral. However, it is also important to note that despite the great potential of blockchain technology, it does not possess the "magic" to change the nature of the underlying assets. Tokenized securities are still securities and need to be subject to regulatory frameworks.

4. The Reserve Bank of Australia advances its CBDC project, exploring crypto asset settlement.

The Reserve Bank of Australia announced that "Project Acacia" has entered its next phase, which will test 24 use cases to explore the application of crypto assets and central bank digital currencies in the wholesale tokenized market. Participants include major banks and fintech companies, with the Australian Securities and Investments Commission providing regulatory relief.

This project aims to promote the development of a digital asset framework. By simulating various scenarios, the central bank hopes to evaluate the operation of CBDC in payment, settlement, and cross-border cases, and identify relevant operational, risk management, and regulatory considerations.

Analysts say that the project reflects the central bank's emphasis on the digitalization process. Digital assets and CBDCs are expected to play an important role in the future financial system. By conducting early trials and assessments, the central bank can better manage risks and formulate reasonable regulatory policies.

However, there are also views that central bank digital currencies (CBDCs) may weaken the deposit base of commercial banks and affect the money creation process. In addition, the privacy protection and anti-money laundering issues of CBDCs also need to be given special consideration. Overall, the digitalization process is a complex system engineering task that requires cooperation from all parties to weigh the pros and cons.

5. The Ethereum ecosystem is under scrutiny, and V faces a significant test.

Ethereum is undergoing an unprecedented wave of skepticism. Since the launch of the ETF, it has seen net sell-offs/capital outflows of over 1.2 billion USD. From core researchers/foundations to developer community organizations, as well as related commercial companies and external investors, a massive trust crisis is emerging.

V God needs to better guide different participants in terms of direction and goals, as Ethereum has already become a very large decentralized business entity in both the crypto market and even the traditional market, a type of business entity that has never existed in history.

The challenges for the entire Ethereum community and Vitalik Buterin will continue to become more severe, to the point of a breaking down to establish something new. Some believe that the development of Ethereum is constrained by bottlenecks and requires fundamental reforms and innovations.

On the other hand, some viewpoints suggest that the Ethereum ecosystem is already strong and mature enough, and it just needs to continue optimizing and improving on the existing foundation. In any case, Ethereum will face a critical crossroads and will need to make significant decisions to ensure its long-term development.

2. Industry News

1. Bitcoin has set a new historical high, breaking the $112,000 mark.

Bitcoin reached a new all-time high on July 10, peaking at $112,159. This surge was primarily driven by increased demand from institutional investors. Data shows that Bitcoin spot ETFs recorded a net inflow of $218 million on that day, reflecting the growing enthusiasm of institutional investors for Bitcoin.

Analysts point out that the Bitcoin market landscape is being reshaped, with the current demand being structural and regulated, differing from the speculative approach previously dominated by retail investors. Meanwhile, the macro environment is also favorable for the performance of risk assets. The Federal Reserve's meeting minutes indicate that most participants believe tariffs may have a more lasting impact on inflation, suggesting that the pace of future interest rate hikes may slow.

However, Bitcoin has already absorbed the main liquidation pressure and supply zone in the short term, and the risk-reward ratio for chasing highs is declining. Investors need to closely monitor the CPI data to be released on July 15, as this indicator will become an important reference for assessing the direction of monetary policy. If the inflation data is disappointing, it may trigger market volatility.

2. Ethereum breaks through the $2800 barrier, altcoins surge.

Ethereum surged by 5.81% on July 10, breaking through the $2800 mark. This increase was mainly driven by the influx of institutional funds. Data shows that Ethereum spot ETFs recorded a net inflow of $211 million on that day, reflecting a continued increase in confidence among institutional investors in Ethereum.

At the same time, the altcoin sector has also seen a widespread rally. Data shows that the Meme sector is leading the crypto sector with an increase of 6.81%. Among them, SPX6900, dogwifhat, and MemeCore rose by 12.25%, 13.96%, and 58.65%, respectively.

Analysts believe that Ethereum's trend relative to Bitcoin is bullish, with a noticeable increase in institutional demand. However, rising speculative sentiment may indicate a risk of price correction. Investors should be wary of market overheating and high volatility.

Overall, the sentiment in the crypto market is extremely optimistic, and social activity is generally positive. However, the market is highly active and emotions are polarized, so investors need to remain cautious.

3. Solana momentum increases, analysts are optimistic about a rebound to $280.

Solana has found support in the demand zone of $134-140, with prices firmly maintaining above this support, preparing for an upward breakout. Since April, Solana has maintained a bullish structure, gradually forming higher lows, and the recent rebound indicates that it is building momentum.

Analysts believe that Solana is accumulating momentum above key Fibonacci levels and is expected to rebound to $280. However, it is important to note that the options market shows increasing bearish sentiment. If the decline continues and falls below the average holding price, it could invalidate the bullish trend.

Overall, the medium-term outlook for Solana remains positive. However, investors need to closely monitor changes in the macro environment and potential technical risks, and manage risks cautiously.

4. Cryptocurrency stocks rise broadly, with some concept stocks adjusting.

Driven by Bitcoin hitting new highs, cryptocurrency-related stocks have generally risen. Among them, established cryptocurrency stocks such as MicroStrategy and Marathon Digital saw significant gains.

However, some previously soaring concept stocks have seen a pullback. For example, mine Immersion and BTCS fell by 40.16% and 29.44%, respectively. Analysts point out that some concept stocks have been overhyped in the short term and caution should be taken regarding the risk of a pullback.

At the same time, many listed companies have ventured into the "stablecoin concept" and their stock prices have surged. Industry insiders have stated that the enthusiasm for stablecoin concept stocks may be overly inflated, and investors should exercise caution when investing.

Overall, the investment enthusiasm in the cryptocurrency sector continues to heat up, but there are also some risks of bubbles and excessive speculation, and investors need to remain rational.

5. The founder's family office invests in the BNB treasury company, enhancing institutional interest in BNB.

YZi Labs and 10X Capital are launching the BNB Treasury Company, aimed at enhancing institutional interest in BNB. This initiative may increase the attractiveness of BNB among institutional investors.

At the same time, the ecosystem is accelerating its development. According to statistics, the token issuance platform pump.fun has seen Solana's market share on token issuance platforms rise to 49.6% in the last 24 hours, reaching the first position.

Analysts believe that the BNB treasury and ecological development are expected to further drive up the price of BNB. However, there are also views that, as an exchange token, the price increase potential of BNB may be limited.

Overall, the BNB ecosystem is actively positioning itself, but its long-term value remains to be tested by the market. Investors need to carefully assess the investment value of BNB.

6. Ripple (XRP) receives bullish expectations, the number of whale addresses hits a new high

The price of Ripple (XRP) broke through $2.43 on July 10, marking the first time since May, raising hopes for a reach of $3. Data shows that currently there are 2,742 wallets holding over one million XRP, with a total of 4.732 billion XRP controlled, reflecting the confidence of whale investors in XRP.

Analysts believe that XRP traders are targeting a bullish move to $6, as the market capitalization of Ripple's RLUSD exceeds $500 million. XRP is currently above $2.34, and traders expect it to break upward to $2.65.

However, some analysts hold a cautious view. They point out that despite the formation of a double bottom pattern and increased buying activity, the overall market conditions remain concerning, which may affect XRP's upward momentum.

Overall, XRP has gained some bullish expectations, but its upward potential and sustainability still need to be further observed.

7. Justin Sun announced the purchase of $100 million in TRUMP tokens, promoting MAGA currency.

Justin Sun announced that they will commit to purchasing $100 million of TRUMP, calling it "the currency to Make America Great Again (MAGA)." This move aims to enhance the development of the token on the TRON blockchain and promote the adoption of cryptocurrency through collaboration with the community.

Analysts believe that this cryptocurrency, seen as a political symbol, has sparked discussions about its impact in the political arena and the cryptocurrency market. On one hand, it may attract the attention of Trump supporters; on the other hand, it may face resistance from opponents.

Overall, the future trend of TRUMP tokens still carries significant uncertainty, and investors need to carefully assess their investment value and potential risks.

3. Project News

1. Sui Network: A New Star in the Move Ecosystem

Sui Network is a brand new blockchain project developed by a team of engineers who previously worked on the Diem project. It utilizes the Move programming language and aims to provide high performance, high scalability, and low-cost blockchain solutions.

Latest Updates: Sui Network recently completed its mainnet launch and introduced its first batch of ecological projects. These include the decentralized exchange Cetus, an NFT marketplace, and the decentralized lending protocol Navi, among others. These projects showcase Sui's application potential in areas such as DeFi and NFTs. At the same time, Sui launched the SuiPlay gaming platform, attracting the attention of many game developers.

On a technical level, Sui employs an innovative parallel execution model and dynamic sharding technology, significantly improving throughput and scalability. Additionally, it introduces a novel object ownership model, enhancing asset security.

Market Impact: As a rising star in the Move ecosystem, Sui's emergence brings new vitality to the blockchain industry. Its high performance and low-cost characteristics are expected to attract more developers and users to join the Move ecosystem. At the same time, Sui's exploration of applications in DeFi, NFTs, and gaming will also promote innovative development in these areas.

Industry feedback: Industry insiders are optimistic about Sui's technological innovations and development prospects. Arianna Simpson, a partner at the well-known investment firm Andreessen Horowitz, stated: "The Sui team has made significant innovations in performance, scalability, and security, and we are very much looking forward to its future."

On the other hand, some analysts have raised concerns, such as the limited number of projects in the Sui ecosystem and the lack of killer applications. However, overall, Sui is seen as a rising star project with great potential in the Move ecosystem.

2. Hyperliquid: A New Force in Cross-Chain DeFi Ecosystem

Hyperliquid is an emerging cross-chain DeFi ecosystem aimed at creating a financial infrastructure that seamlessly connects major blockchain networks. It utilizes the innovative HyperEVM technology to achieve true cross-chain interoperability.

Latest updates: Hyperliquid recently launched the HyperEVM mainnet, marking a significant advancement in its cross-chain vision. Meanwhile, several innovative projects have emerged within the ecosystem, including the decentralized derivatives exchange Hyperlane and the liquidity aggregator Hyperlane Aggregator. These projects demonstrate Hyperliquid's application prospects in asset liquidity, financial derivatives, and other fields.

On a technical level, Hyperliquid's HyperEVM technology achieves full compatibility with the Ethereum Virtual Machine, allowing Ethereum DApps to be seamlessly deployed on the Hyperliquid network. At the same time, it also supports cross-chain messaging and atomic swaps, breaking down barriers between heterogeneous chains.

Market Impact: As a brand new cross-chain DeFi ecosystem, the emergence of Hyperliquid is expected to address the current fragmentation issues in the DeFi ecosystem. It provides seamless financial infrastructure for major public chain networks, facilitating the free flow of assets and liquidity across different chains. This will greatly enhance the usability and user experience of DeFi applications.

At the same time, the innovative projects emerging within the Hyperliquid ecosystem will also promote innovative development of DeFi in areas such as derivatives trading and liquidity management.

Industry feedback: Olaf Carlson-Wee, the founder of the renowned investment institution Polychain Capital, has high hopes for Hyperliquid, believing it "is expected to become a key infrastructure connecting major public chains." However, some analysts are concerned that Hyperliquid faces a fierce competitive environment and needs to put in significant effort in ecosystem building and user expansion.

Overall, Hyperliquid is seen as a new force with great potential in the cross-chain DeFi ecosystem, and its development deserves ongoing attention.

3. root: A new paradigm that integrates AI and blockchain

root is a brand new public chain project that organically integrates artificial intelligence technology with blockchain, aiming to create a high-performance, highly intelligent next-generation Web3 infrastructure.

Latest Updates: root recently completed its token issuance and announced that it will launch a testnet soon. As the first high-performance public chain to deeply integrate AI into its execution layer design, root has attracted much attention. It employs an innovative AI execution engine that can efficiently run various AI models and algorithms on the chain.

On a technical level, the AI execution engine of root supports various mainstream AI frameworks, such as TensorFlow and PyTorch, and provides optimized hardware acceleration support. At the same time, it introduces novel consensus mechanisms and intelligent sharding technology, ensuring high throughput and scalability.

Market Impact: As a new paradigm of the fusion between blockchain and artificial intelligence, the emergence of root will bring new development opportunities to the Web3 ecosystem. It provides high-performance, secure, and trustworthy infrastructure support for various AI applications, and is expected to promote the large-scale application of AI technology in the blockchain field.

At the same time, innovations in consensus, sharding, and other aspects by root will provide new ideas for public chain design and promote the advancement of blockchain technology as a whole.

Industry Feedback: Fred Ehrsam, co-founder of the well-known investment firm Paradigm, stated that root is "a powerful attempt at the integration of blockchain and artificial intelligence," and is expected to "bring a new driving force for the Web3 ecosystem." However, some analysts are concerned that root faces challenges such as high technical complexity and difficult ecosystem construction.

Overall, root is regarded as a representative project of the integration of blockchain and artificial intelligence, and its development prospects deserve continuous attention.

4. Economic Dynamics

1. The Federal Reserve's June meeting minutes release signals on interest rate policy.

Economic Background: The overall U.S. economy continues to maintain a robust growth trend, with the job market showing continuous improvement; however, inflationary pressures remain high. The latest data shows that the core Personal Consumption Expenditures Price Index (PCE) in May rose by 4.7% year-on-year, exceeding the Federal Reserve's target level of 2%.

Important Event: The minutes of the Federal Reserve's June meeting will be released on July 10, revealing policymakers' latest assessments of the economic outlook and interest rate policy. The minutes indicate that most participants believe that tariff increases could lead to sustained inflation, making a tighter monetary policy stance appropriate. Meanwhile, a minority of participants expressed willingness to consider interest rate cuts at the next meeting.

Market Reaction: After the release of the meeting minutes, investors' expectations for a rate cut by the Federal Reserve this year have cooled somewhat. The yield on the U.S. 10-year Treasury bond fell slightly by 6.5 basis points to 4.352%, reflecting a slight easing of market concerns about the economic outlook. Analysts point out that there are divergences within the Federal Reserve regarding the inflation outlook, and there remains uncertainty about the future direction of monetary policy.

Expert Opinion: Goldman Sachs analysts indicate that the Federal Reserve's decision-makers are increasingly concerned about the persistent rise in inflation, making it likely that they will maintain a hawkish stance in the short term. However, if there are clear signs of an economic slowdown, the Fed may initiate a slight rate cut cycle within the year. UBS economists believe that the Fed may pause interest rate hikes in September and begin gradually lowering rates early next year.

2. The China-US trade negotiations continue, and tariff policies raise concerns about inflation.

Economic Background: After experiencing high inflation and economic slowdown pressures in 2022, the U.S. economy showed signs of moderate recovery in the first half of 2025. The initial annualized quarterly growth rate of real GDP for the second quarter was 2.4%, and the employment market remained robust. However, the inflation rate still reached 4.7% in May, significantly above the Federal Reserve's target of 2%.

Important event: The governments of China and the United States are conducting multi-level negotiations to resolve trade disputes. The U.S. government has previously imposed tariffs on Chinese goods multiple times, which has led to an increase in domestic corporate costs and a rise in inflation expectations. The minutes from the Federal Reserve's June meeting indicate that most policymakers believe that the increase in tariffs could lead to sustained inflation.

Market reaction: Investor concerns about the persistent trade friction have intensified. The three major U.S. stock indices slightly declined on July 10, reflecting cautious sentiment in the market regarding economic prospects. Analysts point out that if trade negotiations reverse, it could exacerbate inflationary pressures and suppress corporate profits, thereby impacting employment and consumer confidence.

Expert Opinion: Goldman Sachs economists have stated that if the trade dispute cannot be resolved quickly, it will continue to weigh on the growth prospects of the U.S. economy. They predict that the U.S. GDP growth rate will slow to 1.6% by 2025. Citibank analysts believe that even if an agreement is reached, corporate production costs have already been pushed up, making it difficult to alleviate inflationary pressures in the short term.

3. The Trump administration increases intervention efforts, questioning the independence of the Federal Reserve.

Economic Background: In the first half of 2025, the pace of economic recovery in the United States slowed, with inflation rates remaining high. In May, the core PCE rose 4.7% year-on-year, far exceeding the Federal Reserve's target of 2%. The labor market remains robust, with the unemployment rate maintaining a low level of 3.6% in May.

Important Events: The Trump administration has recently intensified its intervention in the Federal Reserve's monetary policy. Trump has repeatedly criticized the Federal Reserve for raising interest rates too quickly and is considering appointing a "shadow chairman" before the current chairman Powell's term ends to pressure the Federal Reserve to cut interest rates.

Market reaction: Trump's actions have raised questions about the independence of the Federal Reserve. The three major U.S. stock indexes fell slightly on July 10. Analysts point out that if the Federal Reserve is seen as lacking independence, its policy adjustments will lose credibility, further exacerbating volatility in the financial markets.

Expert opinion: Columbia University economics professor Saha believes that Trump's actions severely infringe upon the independence of the Federal Reserve and could lead to a loss of control over inflation expectations. He calls for the Federal Reserve to make decisions based on economic data. Goldman Sachs analysts, on the other hand, stated that even under pressure, the Federal Reserve will maintain a hawkish stance in the short term to curb inflation.

5. Regulation & Policy

1. SEC officials reiterate: Tokenized securities must comply with existing regulations.

Helen Pearce, a commissioner of the U.S. Securities and Exchange Commission (SEC), recently gave a speech reiterating that tokenized securities must comply with the existing securities laws' information disclosure obligations. She pointed out that purchasers of third-party tokens may face unique counterparty risks and other special risks.

Policy Background The SEC, as the regulatory agency of the U.S. securities market, is responsible for maintaining the fair and orderly operation of the market. With the development of crypto assets and blockchain technology, new financial products such as tokenized securities have emerged, attracting the attention of regulators. Pierce, as the chair of the SEC's cryptocurrency working group, reflects the stance of the regulatory agency.

Policy Content Pierce emphasized that issuers of tokenized securities must fulfill the disclosure obligations mandated by federal securities laws. Market participants should exercise caution in assessing the legal attributes of these securities and their corresponding regulatory requirements when distributing, purchasing, and trading tokenized securities. She called on relevant companies to proactively communicate with the SEC, stating that when technological characteristics necessitate adjustments to existing rules, the SEC is willing to work with the industry to develop reasonable exemptions and advance the regulatory framework.

Market Reaction Pierce's speech responded to calls from some industry participants for the free trading of stocks and other assets on the blockchain, and reminded that digital assets are also subject to regulatory frameworks. Some companies have begun to explore the issuance of tokenized securities, but careful evaluation of compliance risks is still needed. Clear regulations can help create an orderly environment for emerging financial products, but they may also increase the costs of issuance and trading.

Expert Opinion Cryptocurrency legal experts believe that the SEC's position reflects a focus on investor protection. The disclosure obligations for tokenized securities help improve transparency and reduce investment risks. However, there is also a need for regulatory agencies to maintain communication with the industry to formulate practical rules and avoid excessive restrictions on innovation. Industry insiders are calling for the SEC to protect investors while also leaving room for the development of emerging technologies.

2. U.S. senators debate cryptocurrency market regulation

The U.S. Senate Banking Committee held a debate this week on the proposed regulation of digital assets. Republicans are calling for a "soft" regulatory approach, while Democrats are warning of potential loopholes and conflicts of interest.

Policy Background The rapid development of the cryptocurrency market has raised concerns about a regulatory vacuum. The U.S. Congress has held several hearings on this issue, seeking to establish a comprehensive regulatory framework. This debate aims to advance legislation on the structure of the cryptocurrency market, with the goal of making progress before the committee's deadline of September 30.

Policy Content Republican senators advocate for a "loose regulatory" approach to avoid overly restricting industry development. They believe that the cryptocurrency market is unique and should not be directly subjected to traditional financial regulatory models. On the other hand, Democrats are concerned that regulatory loopholes could harm investor rights and are calling for stronger protective measures. There are differences between the two parties regarding specific regulatory details.

Market Reaction The cryptocurrency industry generally hopes that regulatory policies can balance innovation and risk management. Excessively strict regulations may stifle innovative vitality, while overly lenient ones may breed chaos. Enterprises and investors expect the regulatory framework to create a favorable environment for industry development while also safeguarding investors' rights.

Expert Opinion Regulatory experts say that the regulation of the cryptocurrency market needs to be tailored to local conditions. Different countries and regions can formulate differentiated policies based on the characteristics of their own financial systems. In general, regulation should focus on technological neutrality and avoid setting barriers for specific technologies. At the same time, it is necessary to maintain flexibility and adjust in a timely manner as the industry develops. Experts urge all parties to maintain an open mind and reach consensus through dialogue.

3. South Korea's central bank governor: Issuance of won stablecoins by non-bank institutions may cause market disruption.

The Governor of the Bank of Korea, Lee Ju-yeol, recently stated that if non-bank institutions issue won stablecoins, it could lead to chaos in the financial market. He emphasized that the central bank will continue to perform its functions of currency issuance and final settlement of payments.

Policy Background Stablecoins are a type of cryptocurrency that is pegged to sovereign currencies or other assets. In recent years, with the development of the cryptocurrency market, the application of stablecoins in areas such as payments and settlements has become increasingly widespread. The Bank of Korea has expressed concerns about non-bank institutions issuing stablecoins pegged to the Korean won.

Policy Content Li Zhuliang pointed out that if non-bank institutions issue Korean won stablecoins, it could lead to market chaos and affect the central bank's control over the money supply. He emphasized that the central bank will continue to play its role in currency issuance and final settlement of payments to maintain the stability of the financial system. At the same time, the central bank is also studying the feasibility of issuing central bank digital currency.

Market Reaction Li Zhulié's speech has sparked market attention on the regulation of stablecoins. Some companies and investors believe that stablecoins help improve payment efficiency and reduce cross-border transaction costs. However, others are concerned that a lack of regulation may pose financial risks. Industry insiders are calling for the establishment of a clear regulatory framework to create an orderly environment for the development of stablecoins.

Expert Opinion Financial legal experts indicate that the issuance and circulation of stablecoins do carry certain risks, which require enhanced regulation. However, it is also essential to respect technological innovation and leave room for the development of emerging payment tools. Experts suggest that the regulatory model of digital banks can be referenced, setting requirements for capital and reserves for stablecoin issuing institutions, as well as strengthening anti-money laundering and investor protection measures.