Headlines
▌Federal Reserve meeting minutes: Stablecoins may have wide-ranging impacts and are worth close attention
The Federal Reserve released the minutes of the July meeting, which mentioned that many participants discussed recent and future developments related to payment stablecoins and their potential impacts on the financial system. These participants noted that with the recent passage of the (GENIUS Act) (US Stablecoin Guidance and National Innovation Act), the use of payment stablecoins may increase. They stated that payment stablecoins help improve the efficiency of payment systems and also observed that such stablecoins may increase demand for the underlying assets (including US Treasury bonds). Additionally, the participants expressed concerns that stablecoins could have broader implications for banks and the financial system, as well as for the implementation of monetary policy, thus warranting close attention, including monitoring various assets used to support stablecoins.
▌Senator Lummis pushes to complete the cryptocurrency market structure bill by the end of the year
Cynthia Lummis, a Republican Senator from Wyoming, plans to submit the cryptocurrency market structure bill for presidential signature by the end of the year, using the (Digital Asset Market Clarity Act) passed by the House as the basis for the Senate version. Lummis expressed hope to retain as many amendments from the House regarding stablecoins and other provisions as possible to respect the House's work (the bill previously received support from 78 Democratic lawmakers). She emphasized that the goal is to complete the legislation before Thanksgiving.
Market Data
As of press time, according to CoinGecko data:
BTC price is $114,336, with a 24-hour change of +1.3%;
ETH price is $4,338.23, with a 24-hour change of +6.0%;
BNB price is $872.23, with a 24-hour change of +5.4%;
SOL price is $187.10, with a 24-hour change of +5.7%;
DOGE price is $0.2219, with a 24-hour change of +5.5%;
XRP price is $2.87, with a 24-hour change of -6.4%.
TRX price is $0.3544, with a 24-hour change of +1.6%.
Policy
▌Federal Reserve Governor Waller calls for embracing AI and payment innovations driven by stablecoins
Federal Reserve Governor Waller called for embracing the 'technology-driven revolution' pushed by AI and stablecoins as a way to boost the US economy. 'Current technology may be new, but using innovative technology to create new payment services is not a new story.' Waller stated in a speech prepared for the Wyoming Blockchain Workshop. Waller has previously supported certain decentralized finance elements (including technologies that support virtual currencies) as supplements to traditional payment systems. He emphasized that distributed ledger technology can provide a more efficient and faster way to track asset transfers. On Wednesday, he highlighted the impact of decentralized finance in the payment sector, suggesting that if the private sector collaborates with the Federal Reserve, it could be a win-win situation. Waller stated that the Federal Reserve is researching the latest wave of innovations, including tokenization in the payment sector, smart contracts, and artificial intelligence.
▌Sources: China is considering allowing the use of stablecoins backed by the yuan for the first time
According to Reuters, sources say China is considering allowing the use of stablecoins backed by the yuan for the first time to strengthen the internationalization of the yuan. The State Council of China will review and may approve a roadmap later this month to promote the use of the yuan globally, including keeping up with the US push for stablecoins. They indicated that the plan is expected to include usage targets for the yuan in global markets and outline the responsibilities of domestic regulatory agencies, adding that the roadmap will also include risk prevention guidelines. A source said that senior Chinese leaders are expected to hold a learning meeting at the end of this month focusing on the internationalization of the yuan and stablecoin issues, both of which are increasingly drawing global attention. At this meeting, senior leaders may make remarks to set the tone for stablecoins and clarify their applications and development boundaries in business. The source stated that in the context of the increasing influence of dollar-pegged cryptocurrencies in global finance, Beijing views financial innovation, particularly stablecoins, as a promising tool for the internationalization of the yuan.
Blockchain Applications
▌The Ethereum Foundation launches the first round of actions for the 'Trillion Dollar Security' plan, focusing on user experience and wallet standards
The Ethereum Foundation announced the first round of implementation measures this week following its 'Trillion Dollar Security' plan proposed in May. The focus is on enhancing user experience (UX) security, particularly wallet security and blind signing issues. The Foundation stated that wallets are the starting point for Ethereum user security, and if users cannot securely manage private keys and sign transactions, it is difficult to ensure the safety of on-chain funds. In the future, they will promote the establishment of minimum security standards for wallets and explore how to make it easy for non-technical users to use. Additionally, the Foundation will study converting transaction codes into human-readable explanations to reduce blind signing risks. This plan is co-hosted by protocol security head Fredrik Svantes and management team member Josh Stark, with more prioritized projects in security areas to be progressively advanced, aiming to enable Ethereum to support 'billions of users and trillions of dollars in on-chain capital.'
▌OpenAI CFO: Will consider going public at some point in the future
OpenAI CFO Sarah Friar: Will consider going public at some point in the future.
Cryptocurrency
▌Federal Reserve's Bostic: The scale of cryptocurrencies is too small to impact financial stability
Federal Reserve's Bostic: The scale of cryptocurrencies is too small to impact financial stability.
▌Coinbase CEO: Bitcoin price will reach $1 million by 2030
Coinbase CEO Brian Armstrong predicts that by 2030, the price of Bitcoin will reach $1 million.
▌Stablecoins mentioned eight times in the Federal Reserve meeting minutes
Financial blog Zero Hedge states that the mention of stablecoins in the Federal Reserve meeting minutes was eight times.
▌SEC Chairman: Only a small portion of cryptocurrencies should be considered securities
SEC Chairman Paul Atkins stated at the SALT Wyoming blockchain workshop that only a small portion of cryptocurrencies should be considered securities, marking a shift from the previous stance under Gary Gensler's leadership.
▌Tether CEO: US should view Bitcoin as a hedge against the dollar
Tether CEO Paolo Ardoino stated that the US should view Bitcoin as a hedge against the dollar. He hopes the US will build a large Bitcoin balance sheet to enhance financial security and asset diversification.
▌US Treasury Secretary: Expects stablecoin market to reach $2 trillion
According to @Cointelegraph market news, US Treasury Secretary Basant expects the stablecoin market to reach $2 trillion and become a key buyer of US Treasury bonds. The UK (Financial Times) reported: 'Basant has signaled Wall Street.'
▌AMTD Group, a US-listed company, plans to launch a 'cryptocurrency-to-stock' conversion plan
On Tuesday, three affiliated companies of AMTD Group listed on the NYSE proposed a cryptocurrency-to-stock conversion plan, allowing holders to exchange Bitcoin, Ethereum, USDT, Binance's BNB, and USDC for newly issued stocks by the exchange. The companies participating in this plan include AMTD IDEA (AMTD), AMTD Digital (HKD), and The Generation Essentials Group (TGE). The pricing of the plan will be negotiated by both parties based on market value at the time, and shares can be allocated among the three issuers. The group positions this plan as a 'channel and effective means' for portfolio diversification, stating that these issuances will 'serve as a bridge between the world of crypto assets and leading global securities exchanges.'
▌Nasdaq plans to delist BNB Treasury company Windtree Therapeutics due to violations
Nasdaq plans to delist BNB Treasury company Windtree Therapeutics (stock code: WINT) due to the company's failure to comply with Nasdaq listing rule 5550(a)(2)—which requires that stocks maintain a minimum bid price above $1. Windtree confirmed its non-compliance status in documents submitted to the SEC.
▌Tether Treasury mints 1 billion USDT on Ethereum
According to Whale Alert monitoring, at 19:37 Beijing time yesterday, Tether Treasury minted 1 billion USDT on the Ethereum network.
▌Coinbase will launch Sapien (SAPIEN)
Coinbase will support Sapien (SAPIEN) on the Base network, and if liquidity conditions are met, trading will begin later today, with the SAPIEN-USD trading pair launching in phases. Support for SAPIEN may be limited in certain jurisdictions.
Important Economic Dynamics
▌Federal Reserve meeting minutes: Agreed to keep interest rates unchanged, economic outlook remains highly uncertain
The Federal Reserve released the minutes of the Federal Open Market Committee (FOMC) meeting from July 29-30. The minutes show that the Federal Reserve agreed to maintain the federal funds rate target range at 4.25%-4.5%. In the monetary policy discussions of this meeting, committee members unanimously agreed that, despite fluctuations in net exports affecting the data, recent indicators suggest that economic activity growth has slowed in the first half of the year. The inflation rate remains slightly high, and uncertainty about the economic outlook remains elevated. To support the committee's goals, nearly all members agreed to keep the federal funds rate target range at 4.25% to 4.5%. The Vice Chair of the Federal Reserve's supervisory division, Michelle Bowman, and Governor Christopher Waller voted against the decision to keep the benchmark rate unchanged, instead supporting a 25 basis point cut to prevent further weakness in the labor market.
▌Trump ally calls for investigation into Federal Reserve Governor Cook for mortgage transactions, suggesting possible criminal violations
Bill Pulte, director of the Federal Housing Finance Agency (FHFA) and a staunch ally of Trump, urged Attorney General Pam Bondi to investigate Federal Reserve Governor Cook’s two mortgage transactions. Pulte wrote to Bondi and Justice Department official Ed Martin on August 15, stating that Cook 'forged bank documents and property records to secure better loan terms, potentially constituting mortgage fraud under criminal law.' He stated that Cook purchased a property in Ann Arbor, Michigan, and took out a loan, promising to use it as his primary residence for at least a year, but two weeks later took out another mortgage in Georgia, also declaring it as his primary residence. Pulte also cited four provisions of criminal law, suggesting that Bondi investigate potential charges. No charges have been filed at this time, and it is unclear whether Bondi will initiate an investigation.
▌Musk states that reports of postponing the formation of a new political party are untrue
American entrepreneur Elon Musk commented on (The Wall Street Journal) report about his postponement of forming his own political party, stating that the news should not be taken as fact.
▌Federal Reserve mouthpiece: A few officials hint they may join the rate-cut camp in September
“Federal Reserve Mouthpiece” Nick Timiraos latest article: The policy meeting minutes released today show that, despite two officials opposing and advocating for interest rate cuts, the Federal Reserve's decision to keep interest rates unchanged last month still received broad support. However, a few officials have aligned with Waller and Bowman, suggesting they might support a rate cut at the Federal Reserve's next meeting on September 16-17. They indicated that the transmission of tariff increases to consumer prices is slower than expected, which should ease concerns about new inflation shocks caused by rising import costs. However, inflation-watching 'hawks' pointed out that price pressures have intensified since last month’s meeting, including service prices. Kansas City Fed President George Schmidt stated in a speech last week that the impact of tariffs on inflation is limited, in part because the Federal Reserve has maintained stable interest rates. Unlike Bowman (who has been calculating inflation excluding tariffs), Schmidt vowed never to conduct such calculations, calling it 'a concept that is both meaningless and unmeasurable.'
▌Federal Reserve meeting minutes: Most members believe inflation risk outweighs employment risk
The latest minutes from the Federal Reserve's July monetary policy meeting show that most members believe the inflation risk outweighs the employment risk, with several members stating that current rates may not be far above neutral rates. Many members noted that the overall impact of tariffs may take some time to manifest, with several members expecting businesses to pass tariff costs onto consumers. Several members expressed concerns about asset valuations being too high. The minutes also reveal that several participants emphasized that inflation being above 2% for an extended period increases the risk of inflation expectations becoming unanchored, especially as high tariffs lead to prolonged inflation impacts.
Golden Encyclopedia
▌What are tokenized commodities
Tokenized commodities represent partial ownership of real-world assets using digital tokens on a blockchain while retaining their tangible value. Tokenized commodities are digital versions of real-world items (such as gold, oil, or crops) recorded on a blockchain. Each token represents a portion or all of the commodity, making it easier to divide and trade. This simplifies the buying and selling of small portions of commodities for investors, providing more liquidity and offering access to markets that are usually difficult to trade. You don’t have to buy the entire commodity (which can be very expensive and impractical), but can instead divide it into small pieces called tokens. Each token represents a small part of the commodity. Blockchain technology can help tokenize various commodities, including energy resources, real estate, precious metals, and agricultural products. Commodity-backed cryptocurrencies are digital assets designed to be more stable than volatile cryptocurrencies. This stability is achieved by pegging their value to tangible commodities like real estate, gold, or oil. Commodity tokenization clarifies ownership, facilitates partial ownership, simplifies trading, and promotes market activity. While the prospects are bright, tokenized commodities also face challenges. The rules are not always clear, as existing regulations may not fully cover these rules. The technology behind tokenized commodities must be properly tested to handle the complexities of creating and trading these tokens.
