12.2 AI Daily Report: Global Crypto Assets Regulation Tightens, Industry Faces New Challenges

1. Headlines

1. Federal Reserve Chairman Powell sends a strong signal, and the crypto market is once again in turmoil.

Federal Reserve Chairman Powell delivered a speech at a commemorative event, sending a significant signal. He stated that if the economic and inflation data meets expectations, the Federal Reserve will continue to raise interest rates. This remark immediately triggered intense volatility in the cryptocurrency market.

Mainstream cryptocurrencies such as Bitcoin and Ethereum experienced a significant decline after Powell's speech. Analysts pointed out that Powell's hawkish remarks intensified market concerns about prolonged interest rate hikes, and investors are gradually retreating from risk assets. Meanwhile, the dollar index rose, further suppressing the performance of cryptocurrencies.

Industry insiders believe that Powell's speech reflects the Federal Reserve's determination to curb inflation. Although the cryptocurrency market may continue to be volatile in the short term, in the long run, cryptocurrencies as a new asset class still have promising development prospects. Some institutional investors are taking advantage of the current low levels to position themselves, waiting for a rebound opportunity after the market stabilizes.

2. The Bank of Japan signals a rate hike, global divergence in monetary policy intensifies

The Governor of the Bank of Japan, Kazuo Ueda, has sent a clear signal for interest rate hikes in his latest speech, stating that if economic activity and price expectations materialize as expected, the Bank of Japan will continue to raise policy rates. This remark immediately triggered a significant appreciation of the yen and led to a decline in the Nikkei index.

Analysts point out that the Bank of Japan's interest rate hike expectations stand in stark contrast to the Federal Reserve's hawkish stance, exacerbating the divergence in monetary policies among major global central banks. This divergence not only increases uncertainty in the global financial markets but may also further amplify exchange rate fluctuations.

For investors, the divergence in global central bank policies means that it is necessary to manage portfolios more cautiously. Some investment strategies may need to be adjusted to respond to the policy directions of different countries and regions. At the same time, some institutional investors are also seeking hedging tools to reduce the risks brought about by exchange rate fluctuations.

3. New Trends in Cryptocurrency Regulation: Multiple Departments in China Jointly Crack Down on Virtual Currency Trading

The People's Bank of China recently held a meeting with the Ministry of Public Security, the Cyberspace Administration, and other thirteen departments to deploy efforts to combat speculation in virtual currency trading. The lineup of the meeting is noteworthy, as compared to the “924 notice” in 2021, new additions include the Central Financial Office, the National Financial Regulatory Administration, and the Ministry of Justice, marking a comprehensive upgrade of China's regulatory approach to virtual currencies from coordinated efforts to systematic governance.

Analysts point out that this meeting reflects the Chinese government's high emphasis on the regulation of virtual currencies. The addition of new departments will reshape the regulatory landscape in terms of policy coordination, deepening regulation, and legal applicability. It is expected that the trading activities of virtual currencies will face stricter regulations in the future, and illegal activities will face harsher penalties.

For the cryptocurrency industry, this is undoubtedly a heavy blow. Some domestic cryptocurrency exchanges and related enterprises may need to adjust their business strategies, or even consider relocating to other countries and regions. Meanwhile, the high-pressure stance of regulatory authorities may also prompt some investors to adopt a wait-and-see approach, potentially affecting the pace of industry development.

4. Japan plans to impose a single tax rate of 20% on cryptocurrency transactions.

The Japanese government is working to adjust the taxation policy on income from cryptocurrency transactions, planning to impose a uniform income tax rate of 20% regardless of the transaction amount, allowing it to enjoy the same treatment as stocks, investment trusts, and other financial products. This move aims to reduce the tax burden on investors and invigorate the domestic trading market.

Currently, Japan adopts a comprehensive taxation method for cryptocurrency trading income, which means that it is combined with other income such as wages and business income, and a progressive tax rate is applied based on the total income amount, with a maximum rate of 55%. After the implementation of the new policy, investors no longer need to combine cryptocurrency gains with other income for calculation and can enjoy a preferential tax rate of 20%.

Analysts believe that this adjustment will bring substantial benefits to Japanese cryptocurrency investors. A reasonable tax policy will help attract more funds into the cryptocurrency market and promote industry development. At the same time, this also reflects that the Japanese government is gradually improving its regulatory policies for cryptocurrencies, creating a more standardized environment for industry development.

5. Sony Bank plans to issue a dollar-pegged stablecoin, further advancing crypto payments.

According to reports, Sony Bank is expected to issue a stablecoin pegged to the US dollar in the 2026 fiscal year in the United States, and plans to use it for payments related to games and anime content within its ecosystem. This move is seen as an important advancement for cryptocurrency in the payments sector.

Analysts pointed out that as a traditional banking institution, Sony Bank's issuance of stablecoins means that cryptocurrency payments are gaining mainstream recognition. The emergence of stablecoins helps to reduce the volatility risk in the cryptocurrency payment process, enhances user experience, and thus promotes the application of cryptocurrency in the payment sector.

At the same time, Sony Bank's approach reflects the ambitions of tech giants in the metaverse and Web3 fields. By issuing its own stablecoin, Sony can better integrate its content such as games and anime with the cryptocurrency ecosystem, providing users with a seamless experience. In the future, more tech companies may follow suit by launching cryptocurrency payment solutions in the metaverse.

Overall, Sony Bank's move signifies that cryptocurrency payments are moving towards the mainstream market, with traditional enterprises and tech giants preparing for it. The continuous development and improvement of the cryptocurrency ecosystem will clear obstacles for its application in areas such as payments.

2. Industry News

1. Bitcoin price returns to the $90,000 level, market sentiment diverges.

The price of Bitcoin has experienced significant fluctuations in the past 24 hours, once breaking through the $90,000 mark, peaking at $91,200. Analysts point out that this surge is primarily driven by hawkish comments from the Governor of the Bank of Japan. Governor Kazuo Ueda stated that if the forecasts for economic activity and prices are realized as expected, the Bank of Japan will continue to raise policy interest rates based on improvements in the economy and prices. This statement has sparked increased market expectations for interest rate hikes in Japan, pushing the two-year government bond yield up to 1%, with a 76% chance of a rate hike on December 19.

However, Bitcoin subsequently experienced a pullback, falling back below the $90,000 threshold. Analysts believe that this drop may be influenced by comments from the CEO of Strategy. The CEO of Strategy stated that if the price of Bitcoin falls below $88,000, the company may need to sell part of its Bitcoin reserves to maintain operations. This statement has heightened market concerns about a downward trend in Bitcoin prices.

The dramatic fluctuations in Bitcoin prices have also affected the trading activity of the entire cryptocurrency market. Data shows that in the past 24 hours, the total trading volume of the cryptocurrency market exceeded $120 billion, significantly increasing compared to the previous day. Investor sentiment has diverged, with some investors taking the opportunity to lock in profits, while others are optimistic about Bitcoin's medium to long-term upward prospects.

Looking to the future, analysts believe that whether Bitcoin can regain the $90,000 mark will depend on the direction of macroeconomic conditions and regulatory policies. If global central banks continue to raise interest rates, it may put pressure on risk assets. At the same time, if regulators introduce favorable policies, it is expected to boost confidence in the cryptocurrency market. Overall, the medium- to short-term trend of Bitcoin prices still carries significant uncertainty.

2. Ethereum faces a sell-off, DeFi ecosystem impacted.

The price of Ethereum has dropped significantly in the past 24 hours, falling to around $2750, a decrease of more than 6%. Analysts point out that this drop is mainly influenced by the price fluctuations of Bitcoin. As the leader of the cryptocurrency market, Bitcoin's price fluctuations often trigger a chain reaction across the entire market.

The decline of Ethereum has also had a certain impact on the DeFi ecosystem. Data shows that in the past 24 hours, the total value locked in DeFi protocols on Ethereum has decreased by nearly 5%, dropping to about $12 billion. Among them, the TVL of leading protocols such as Curve, Aave, and Uniswap has experienced varying degrees of decline.

Analysts indicate that the fluctuations in the DeFi ecosystem are mainly due to changes in investor sentiment. Against the backdrop of falling Ethereum prices, some investors have chosen to exit their positions, leading to a decline in the TVL of DeFi protocols. At the same time, some new investors may also choose to wait and see, waiting for the market to stabilize before entering.

However, some analysts hold an optimistic view on the long-term prospects of the DeFi ecosystem. They believe that DeFi represents the future trend of financial decentralization, and although it may be affected by market fluctuations in the short term, the DeFi ecosystem will continue to develop and grow in the long run.

3. The Solana ecosystem has encountered a severe setback, with SOL price dropping nearly 10%.

The Solana ecosystem has encountered a sharp decline in the past 24 hours, with the price of SOL dropping nearly 10%, falling to around $135. Analysts point out that this drop is mainly influenced by the overall sentiment of the cryptocurrency market.

The Solana ecosystem has developed rapidly over the past year, attracting a large influx of developers and funds. However, in the recent market adjustment, the Solana ecosystem was not spared either. Data shows that the TVL of DeFi protocols in the Solana ecosystem has decreased by nearly 8% in the past 24 hours, and the trading volume of gaming and NFT projects has also seen varying degrees of decline.

Analysts indicate that the volatility of the Solana ecosystem mainly stems from two aspects: first, the adjustment of the entire cryptocurrency market; second, the developmental stage of the Solana ecosystem itself. As an emerging public chain ecosystem, Solana inevitably faces some challenges and obstacles during its development.

However, some analysts are optimistic about the long-term prospects of the Solana ecosystem. They believe that Solana has certain advantages at the technical level, and if it can continue to attract developers and funding, there is still significant room for growth in the future.

Overall, the short-term fluctuations of the Solana ecosystem may continue for a while, but in the long run, its development prospects are still worth looking forward to.

3. Project Highlights

1. Gensyn: AI-driven distributed computing network

Gensyn is a decentralized artificial intelligence computing network designed to utilize globally distributed computing resources to execute AI tasks. The project was founded by former Google engineers and launched on the Ethereum network in 2023.

Gensyn has recently launched a new type of smart contract that can decompose complex AI models into multiple tasks and execute them in parallel on global nodes. This innovative distributed computing approach significantly improves the operational efficiency of AI models while reducing costs. This technology is expected to drive large-scale applications of AI in the blockchain field.

Gensyn's distributed computing network provides a new infrastructure for AI. By leveraging the computing power of global nodes, Gensyn can support the operation of larger and more complex AI models. This will greatly promote innovative applications of AI in fields such as finance, gaming, and healthcare. Industry insiders believe that Gensyn is expected to become the infrastructure for AI computing in the new era.

However, Gensyn also faces challenges in privacy and security. Distributed computing requires data to be dispersed across global nodes, and ensuring data security is key. In addition, Gensyn's computing efficiency needs further optimization. Overall, Gensyn has opened new paths for AI development in the blockchain field, and its long-term impact is worth ongoing attention.

2. Hyperbolic: A distributed computing platform for the new era

Hyperbolic is a blockchain-based distributed computing platform designed to provide efficient and secure computing power for applications in the new era. The project was co-founded by Stanford University professors and former Google engineers, and it will launch on the Solana network in 2024.

Latest news, Hyperbolic has completed a round of $120 million financing, led by Sequoia Capital and Polychain Capital. This funding will be used to expand the team, accelerate technology research and development, and promote application implementation.

The core technology of Hyperbolic is a new type of distributed computing protocol that can decompose complex computing tasks and execute them in parallel. Compared to traditional cloud computing, Hyperbolic's distributed architecture offers higher performance, stronger privacy protection, and lower costs. The platform has attracted several new era companies to join, including NFT markets and decentralized exchanges.

Analysts believe that Hyperbolic offers innovative solutions for the computing infrastructure of the new era. As more and more applications migrate to the blockchain, the demand for high-performance, secure, and reliable computing capabilities will grow day by day. Hyperbolic is expected to become the infrastructure for computing in the new era. However, the project is still in its early stages, and the scalability and security of the technology need further validation.

3. Schelling AI: A blockchain-based distributed AI training platform

Schelling AI is a blockchain-based distributed artificial intelligence training platform. The project was co-founded by professors from MIT and former OpenAI researchers, and it will launch on the Aptos network in 2025.

Latest news, Schelling AI has completed a $20 million seed round of financing, led by Andreessen Horowitz and Polychain Capital. This funding will be used to expand the team, accelerate technology research and development, and promote application implementation.

The core innovation of Schelling AI is distributing the training process of AI models across global nodes. By aggregating global computing resources, Schelling AI can significantly improve the efficiency and scale of AI model training. Compared to traditional centralized training, Schelling AI's distributed architecture offers higher performance, stronger privacy protection, and lower costs.

The platform has attracted multiple AI companies to join, including pioneering enterprises in fields such as autonomous driving and medical imaging recognition. Analysts believe that Schelling AI provides innovative infrastructure for AI training, which is expected to drive the practical application of AI in more areas. However, the project is still in the early stages and requires further improvement in aspects such as privacy protection and data consistency.

4. Title.xyz: AI-based video generation platform

Title.xyz is an AI-based video generation platform that allows users to create personalized video content through text descriptions. The project was founded by a former YouTube engineer and launched on the Solana network in 2025.

Breaking news, Title.xyz has completed a $10 million seed round financing, led by Sequoia Capital and Polychain Capital. The funds will be used to expand the team, accelerate technology research and development, and promote application implementation.

The core technology of Title.xyz is a new type of video generation model that can generate realistic video images based on user text descriptions. This model integrates the latest AI technologies, including natural language processing, computer vision, and generative adversarial networks. Users only need to input simple text descriptions to generate customized video content, significantly lowering the barriers to video production.

Title.xyz has attracted a large number of content creators and marketing companies to join, used for generating short videos, advertisement videos, etc. Analysts believe that Title.xyz provides innovative tools for video content production and is expected to drive transformation in the video content industry. However, AI-generated videos also face challenges in terms of copyright, ethics, and other aspects, requiring relevant policies for regulation and guidance.

Overall, the four projects mentioned above represent the latest trends in the fusion of AI and the new era, bringing innovative computing infrastructure and application scenarios to the blockchain world, and are worth keeping an eye on for their development trends.

4. Economic Dynamics

1. The Federal Reserve slows down its rate hike pace, while inflationary pressures persist.

The US economy faced a challenging year in 2025. Although GDP growth remained relatively strong in the first half of the year, the persistently high inflation rate put heavy pressure on consumers and businesses. According to the latest data, the core Personal Consumption Expenditures Price Index (PCE) rose by 5.1% year-on-year in November, higher than expected, indicating that inflationary pressures have not fully eased.

At the Federal Open Market Committee meeting in November (FOMC), the Federal Reserve decided to continue raising interest rates by 50 basis points, increasing the target range for the federal funds rate to 4.25%-4.5%. This marks the Federal Reserve's seventh consecutive rate hike, but the pace of increases has slowed compared to previous actions. Federal Reserve Chairman Powell stated that although inflation data has improved, it is still far from the 2% target level, and therefore, monetary policy will maintain a hawkish stance.

The market has mixed reactions to the Federal Reserve's decisions. On one hand, investors welcome the slowdown in interest rate hikes, believing that it helps alleviate the risk of an economic recession. On the other hand, some analysts are concerned that if inflation remains high, the Federal Reserve may have to continue significantly raising interest rates in 2026, further increasing the risk of a hard landing for the economy.

Harvard University economics professor Gregory Mankiw believes that the biggest challenge facing the Federal Reserve is to curb inflation while avoiding a severe economic recession. He stated: “The Federal Reserve needs to seek a balance between these two goals, which is a daunting task. If interest rates are raised too much, it could lead to a significant drop in employment; but if interest rates are not raised enough, it may fail to effectively control inflation.”

2. The pace of China's economic recovery is accelerating, and policy support is increasing.

In 2025, against the backdrop of the gradually weakening impact of the pandemic, China's economy is showing signs of recovery. According to data from the National Bureau of Statistics, GDP grew by 4.9% year-on-year in the first three quarters, with overall economic operation remaining stable. However, factors such as the continued downturn in the real estate sector and slowing export growth are putting certain pressure on the economic recovery.

To cope with the economic downturn pressure, the Chinese government has introduced a series of policy measures, including strengthening fiscal policy, maintaining a stable monetary policy, and expanding domestic demand. Among them, infrastructure investment has become an important engine for driving economic growth. In the first 11 months, national infrastructure investment increased by 8.5% year-on-year, higher than the growth rate of total fixed asset investment.

In addition, China has intensified its support for the real economy. The People's Bank has consecutively lowered various deposit reserve ratios to release long-term funds to support the real economy; at the same time, a series of measures have been introduced to support the development of small and micro enterprises as well as individual businesses, alleviating the difficulties and high costs of financing.

Market participants believe that, with the gradual emergence of a series of policy effects, the Chinese economy is expected to further stabilize and rebound in 2026. However, some analysts also warn that risks in the real estate sector and tensions in the geopolitical situation may pose certain obstacles to the economic recovery.

Ba Shusong, the director of the Chongyang Institute for Financial Studies at Renmin University of China, stated: “The Chinese economy is currently undergoing a deep transformation and needs to strike a good balance between expanding domestic demand and preventing risks. The government should continue to implement active fiscal policies and prudent monetary policies, while accelerating the advancement of supply-side structural reforms to cultivate new economic growth momentum.”

3. The European energy crisis continues, and the economic outlook is bleak.

In 2025, the European economy fell into a dual dilemma of energy crisis and high inflation. The Russia-Ukraine conflict led to disruptions in natural gas supply, forcing European countries to seek alternative energy sources, causing energy prices to soar. At the same time, ongoing supply chain bottlenecks exacerbated inflationary pressures. According to data from the European Union's statistical office, the inflation rate in the eurozone reached 10.6% in November, setting a new historical high.

In response to the energy shortage, EU member states have implemented a series of energy-saving measures, including limiting heating in public places and encouraging residents to reduce electricity consumption. However, these measures have had a certain impact on economic activity. The European Commission's latest forecast predicts that the Eurozone economy will grow by 0.3% in 2025 and will slightly increase by 0.6% in 2026, with a bleak economic outlook.

Investors are also cautious about the prospects of the European economy. European stock markets fell significantly in 2025, and the euro depreciated noticeably against the US dollar. However, some analysts believe that if the Russia-Ukraine conflict can be alleviated by 2026, the European economy is expected to regain momentum.

Clemens Fuest, the director of the IFO Institute for Economic Research in Germany, believes that Europe's current economic predicament is largely due to the escalation of geopolitical risks. He stated: “The Russia-Ukraine conflict has not only affected energy supply but has also intensified global supply chain tensions. Only when the conflict is alleviated can the European economy hope to get back on track.”

Overall, 2025 is a year full of challenges. The United States is striving to control inflation, China is advancing economic recovery, while Europe is mired in an energy crisis. Looking ahead to 2026, there are still many uncertainties regarding how governments and central banks will respond, and the global economic outlook remains clouded.

5. Regulation & Policy

( 1. The U.S. Securities and Exchange Commission has released a draft regulatory framework for crypto assets.

The U.S. Securities and Exchange Commission ) SEC ### recently released a draft framework for the regulation of crypto assets, aimed at establishing unified regulatory rules for the cryptocurrency market. The draft was personally led by SEC Chairman Gary Gensler (, reflecting the SEC's high level of attention to the regulation of crypto assets.

The main content of the draft includes: defining most cryptocurrencies as securities, requiring registration with the SEC and compliance with related regulations; requiring cryptocurrency exchanges and brokers to obtain SEC licenses; strengthening disclosure requirements for cryptocurrency issuers and trading platforms; establishing anti-money laundering and anti-fraud rules for crypto assets. The draft is expected to officially take effect on January 1, 2026.

The SEC stated that this regulatory framework aims to protect investors' rights and promote the fair and orderly operation of the cryptocurrency market. Gary Gensler pointed out that there are currently issues such as excessive speculation and lack of transparency in the crypto asset market, making it necessary to establish a comprehensive regulatory system.

Market participants have mixed reactions to this. Some cryptocurrency companies welcome the SEC's regulatory measures, believing that it will provide certainty for the industry's development. However, others are concerned that excessive regulation may stifle innovation and are calling for the SEC to adopt a more open and inclusive approach.

Cryptocurrency analyst John Cardeno ) stated: “The SEC's regulatory framework aims to integrate crypto assets into the existing financial regulatory system, which is a reasonable approach. However, the key is to balance regulation and innovation to avoid imposing unnecessary restrictions on the cryptocurrency industry.”

( 2. The UK Financial Conduct Authority has released a consultation paper on the regulation of crypto assets.

The UK's Financial Conduct Authority ) FCA ( recently released a consultation document on the regulation of crypto assets, proposing several recommendations for the regulation of crypto assets and seeking public feedback. This document reflects the UK government's determination to strengthen regulation of the cryptocurrency market.

The main contents of the consultation document include: incorporating crypto assets into the existing financial regulatory framework; requiring cryptocurrency exchanges and brokers to obtain FCA licenses; strengthening anti-money laundering and anti-fraud measures; establishing a protection mechanism for crypto asset investors. The document also puts forward specific recommendations regarding the classification and issuance rules of crypto assets.

The FCA stated that the cryptocurrency market is developing rapidly, but currently lacks appropriate regulation and has high investment risks. Therefore, it is necessary to establish a comprehensive regulatory system to protect investors' rights and maintain financial stability.

The cryptocurrency industry has mixed reactions to the FCA's regulatory suggestions. Some companies believe that reasonable regulation is beneficial for the long-term healthy development of the industry. However, others are concerned that excessive regulation may hinder innovation and call for the FCA to adopt a more open and inclusive approach.

Cryptocurrency legal expert Sarah James ) stated: “The FCA's regulatory recommendations reflect a prudent principle, but also need to consider the uniqueness of crypto assets. Regulation should not be too rigid, but should keep pace with the times and allow the industry some room for development.”

3. The European Commission has passed the regulation on markets in crypto-assets.

The European Commission recently passed a regulatory bill for the cryptocurrency market, namely the “Crypto Assets Market Act” ( MiCA ), which is the first comprehensive regulatory framework established by the EU for the cryptocurrency market. The bill will officially take effect on January 1, 2026.

The main contents of the MiCA Act include: classifying crypto assets into different categories and adopting differentiated regulations for each category; requiring crypto asset issuers and service providers to obtain licenses from regulatory authorities; strengthening anti-money laundering and anti-fraud measures; establishing a unified investor protection mechanism; regulating the marketing and advertising behavior of crypto assets.

The European Commission stated that the MiCA legislation aims to promote the orderly development of the crypto asset market while protecting investor rights and financial stability. This legislation will establish unified regulatory standards for the EU crypto asset market, eliminating the current regulatory vacuum.

The cryptocurrency industry has mixed reactions to the MiCA legislation. Some companies believe that unified regulatory rules will provide certainty and predictability for industry development. However, others are concerned that excessive regulation will stifle innovation and are calling for the EU to adopt a more open and inclusive approach.

Cryptocurrency legal expert Martin Walker ( said: “The MiCA legislation is a significant attempt by the EU to regulate the crypto asset market, reflecting the EU's leading position in this field. However, the legislation still requires flexibility in its implementation to adapt to this rapidly evolving industry.”