Headline
▌Federal Reserve Minutes: Stablecoins may have widespread impacts, warranting close attention
The Federal Reserve released the July meeting minutes, which mentioned that many participants discussed recent and future developments related to payment stablecoins and their potential impact on the financial system. These participants noted that with the recent passage of the (GENIUS Act) (U.S. 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 observed that such stablecoins could increase demand for the underlying supporting assets (including U.S. Treasury securities). Additionally, participants expressed concerns that stablecoins could have broader implications for banks, the financial system, and the implementation of monetary policy, warranting close monitoring, including oversight of the various assets backing stablecoins.
▌U.S. Senator Lummis pushes to complete cryptocurrency market structure legislation by year-end
U.S. Senator Cynthia Lummis plans to submit a cryptocurrency market structure bill to the president for signing before the end of the year, using the House-passed (Digital Asset Market Clarity Act) as the basis for the Senate version. Lummis stated that she hopes to preserve as much as possible the House’s modifications regarding stablecoins and other provisions to respect the House’s work (the bill received support from 78 Democratic lawmakers). She emphasized the goal of completing the legislation before Thanksgiving.
Market
As of the time of writing, according to data from CoinGecko:
BTC price is $114,336, 24-hour change +1.3%;
ETH price is $4,338.23, 24-hour change +6.0%;
BNB price is $872.23, 24-hour change +5.4%;
SOL price is $187.10, 24-hour change +5.7%;
DOGE price is $0.2219, 24-hour change +5.5%;
XRP price is $2.87, 24-hour change -6.4%.
TRX price is $0.3544, 24-hour change +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' spurred by artificial intelligence and stablecoins as a way to boost the U.S. economy. 'Current technology may be new, but leveraging innovative technology to create new payment services is not a new story,' Waller stated in remarks prepared for a Wyoming blockchain seminar. Waller has previously supported some decentralized finance elements (including technologies that support cryptocurrencies) as a complement to traditional payment systems. He emphasized that distributed ledger technology can provide more efficient and faster tracking of asset transfers. On Wednesday, he highlighted the impact of decentralized finance in the payment space, suggesting it could be a win-win scenario if the private sector collaborates with the Federal Reserve. Waller stated that the Federal Reserve is researching the latest wave of innovations, including tokenization in payments, smart contracts, and artificial intelligence.
▌Sources say China is considering allowing the first use of a stablecoin backed by the yuan
According to Reuters, sources say that China is considering allowing the first use of a stablecoin backed by the yuan to enhance the internationalization of the yuan. The State Council of China will review and possibly approve a roadmap later this month to promote the use of the yuan globally, including keeping pace with the U.S. push for stablecoins. They indicated that the plan is expected to include targets for the yuan's use in global markets and outline the responsibilities of domestic regulators, adding that the roadmap will also include risk prevention guidelines. A source stated that senior Chinese leaders are expected to hold a study meeting as early as 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 deliver remarks to set the tone for stablecoins and clarify their applications and developmental boundaries in commerce. Sources said that in the context of the increasing influence of cryptocurrencies pegged to the dollar in global finance, Beijing views financial innovation, especially stablecoins, as a promising tool for the internationalization of the yuan.
Blockchain Applications
▌Ethereum Foundation launches the first round of the 'Trillion Dollar Safety' initiative, focusing on user experience and wallet standards
After proposing the 'Trillion Dollar Safety' initiative in May of this year, the Ethereum Foundation announced this week the first round of implementation measures, focusing on improving user experience (UX) safety, particularly regarding wallet safety 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 will be difficult to ensure the safety of on-chain funds. In the future, it will promote the establishment of minimum safety standards for wallets and explore how to make it convenient for non-technical users to use as well. In addition, the foundation will research converting transaction code into human-readable descriptions to reduce blind signing risks. This plan is co-led by protocol security head Fredrik Svantes and management team member Josh Stark, with more priority projects in the security domain set to be phased in, aiming to enable Ethereum to support 'billions of users and trillions of dollars of on-chain capital.'
▌OpenAI CFO: Will consider going public at some point in the future
OpenAI CFO Sara Frier: Will consider going public at some point in the future.
Cryptocurrency
▌Federal Reserve Bostic: The scale of cryptocurrencies is too small to affect financial stability
Federal Reserve Bostic: The scale of cryptocurrencies is too small to affect financial stability.
▌Coinbase CEO: Bitcoin price will reach $1 million by 2030
Coinbase CEO Brian Armstrong predicts that Bitcoin's price will reach $1 million by 2030.
▌The Federal Reserve minutes mentioned stablecoins 8 times
The financial blog Zero Hedge stated that stablecoins were mentioned 8 times in the Federal Reserve meeting minutes.
▌SEC Chairman: Only a small portion of cryptocurrency tokens should be considered securities
U.S. Securities and Exchange Commission Chairman Paul Atkins stated at the SALT Wyoming blockchain seminar that only a small portion of cryptocurrency tokens should be considered securities, marking a shift in the agency's stance under Gary Gensler's leadership.
▌Tether CEO: The U.S. should treat Bitcoin as a hedge against the dollar
Tether CEO Paolo Ardoino stated that the U.S. should view Bitcoin as a hedge against the dollar. He hopes the U.S. will build a substantial Bitcoin balance sheet to enhance financial security and asset diversification.
▌U.S. Treasury Secretary: Expects the stablecoin market size to reach $2 trillion
According to market news released by @Cointelegraph, U.S. Treasury Secretary Yellen expects the stablecoin market size to reach $2 trillion and become a key buyer of U.S. Treasury securities. The Financial Times reported: 'Yellen has signaled to Wall Street.'
▌U.S. listed AMTD Group plans to launch a 'cryptocurrency-to-stock' conversion plan
On Tuesday, three affiliated companies of AMTD Group listed on the New York Stock Exchange 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 participating companies 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 the market value at the time, and shares can be distributed 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 the world's leading 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 stocks to maintain a minimum bid price of over $1. Windtree confirmed its non-compliance status in documents submitted to the U.S. Securities and Exchange Commission.
▌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 list Sapien (SAPIEN)
Coinbase will support Sapien (SAPIEN) on the Base network, and trading will begin later today if liquidity conditions are met, with the SAPIEN-USD trading pair being rolled out in phases. Support for SAPIEN may be restricted in some jurisdictions.
Important Economic Dynamics
▌Federal Reserve Minutes: Agreement to maintain interest rates unchanged, economic outlook remains highly uncertain
The Federal Reserve released the minutes from the Federal Open Market Committee (FOMC) meeting held on July 29-30. The minutes indicate that the Federal Reserve agreed to maintain the target range for the federal funds rate at 4.25%-4.5%. During the monetary policy discussion at this meeting, members unanimously agreed that, although net export fluctuations affected the data, recent indicators suggest that economic activity growth slowed in the first half of the year. Inflation remains slightly high, and uncertainty about the economic outlook remains significant. To support the committee's goals, almost all members agreed to keep the target range for the federal funds rate at 4.25% to 4.5%. Michelle Bowman, the Vice Chair of Supervision at the Federal Reserve, and Governor Christopher Waller voted against the decision to keep the benchmark rate unchanged, instead supporting a 25 basis point cut to prevent further weakening of the labor market.
▌Trump ally calls for investigation into mortgage transactions by Fed Governor Cook, suggesting possible criminal violations
U.S. Federal Housing Finance Agency (FHFA) Director and Trump steadfast ally Bill Pulte urged Attorney General Pam Bondi to investigate Fed 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 obtain better loan conditions, which may constitute mortgage fraud under criminal law.' He noted that Cook had purchased a property in Ann Arbor, Michigan, and secured a loan, committing 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 criminal law provisions, suggesting Bondi investigate whether there are potential charges. No charges have been filed so far, and it is unclear whether Bondi will initiate an investigation.
▌Musk says the report about pausing the formation of a new political party is untrue
U.S. entrepreneur Elon Musk commented on (The Wall Street Journal) report about his pause in forming his own political party, stating that the newspaper's 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: Today's released policy meeting minutes show that, despite two officials dissenting and advocating for a rate cut, the Federal Reserve's decision to maintain interest rates unchanged last month still garnered broad support. However, a few officials have aligned with Waller and Bowman, suggesting they may support a rate cut at the Federal Reserve's next meeting on September 16-17. They stated that the transmission speed of tariff increases to consumer prices is slower than expected, which should alleviate concerns about new inflation shocks due to rising import costs. However, inflation-focused 'hawks' pointed out that price pressures have increased since last month's meeting, including service prices. Kansas City Federal Reserve Bank President Esther George stated in a speech last week that the impact of tariffs on inflation is limited, partly because the Federal Reserve has kept interest rates stable. Unlike Bowman (who has been calculating inflation levels excluding tariffs), George promised never to engage in such calculations, calling it 'a concept that is both meaningless and unmeasurable.'
▌Federal Reserve 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 noting that current interest rates may not be far above neutral rates. Many members pointed out that the full impact of tariffs may take some time to manifest, and several members expect companies to pass tariffs onto consumers. A few members expressed concerns about overvalued asset valuations. The minutes show that several participants emphasized that inflation remaining above 2% for an extended period, combined with high tariffs leading to long-term inflation impacts, increases the risk of inflation expectations becoming unanchored.
Golden Encyclopedia
▌What are tokenized commodities?
Tokenized commodities represent partial ownership of real-world assets using digital tokens on the blockchain while maintaining their tangible value. Tokenized commodities are digital versions of real-world items (such as gold, oil, or crops) recorded on the blockchain. Each token represents a portion or the entirety 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 typically hard to trade. You do not have to purchase the entire commodity (which can be very expensive and impractical) but can break it down into smaller pieces called tokens. Each token represents a small portion of the commodity. Blockchain technology can help tokenize various commodities, including energy resources, real estate, precious metals, and agricultural products. Commodity-backed cryptocurrencies are designed to be more stable digital assets than volatile cryptocurrencies. This stability is achieved by pegging their value to tangible commodities such as real estate, gold, or oil. Commodity tokenization clarifies ownership, enabling partial ownership, simplifying transactions, and facilitating market activity. While the prospects are bright, tokenized commodities also face challenges. The rules are not always clear, as existing rules may not fully cover these scenarios. The technology behind tokenized commodities must be adequately tested to handle the complexities of creating and trading these tokens.
