5.6 AI Daily Crypto Assets Policy Major Reform, Global Regulatory Landscape Quietly Reshaped

1. Headlines

1. Vitalik proposed that Ethereum will be as simple as Bitcoin within 5 years.

Ethereum co-founder Vitalik Buterin suggested in his latest blog post that Ethereum should significantly simplify its protocol architecture in the next five years, ultimately reaching a level of simplicity comparable to Bitcoin. He believes this will help improve Ethereum's security and participation.

Vitalik suggests reducing complexity by simplifying the consensus layer and the execution layer. Specific measures include adopting 3-slot finality, STARK aggregation, and other technological optimizations for the consensus layer, while replacing the existing EVM with RISC-V or similar virtual machines. He also calls for the unification of erasure codes, serialization formats, and other elements to further streamline the architecture.

This proposal aims to bring Ethereum closer to the simplicity of Bitcoin within 5 years, thereby reducing development costs, error risks, and attack surfaces. Vitalik emphasized that Ethereum's goal is to become a global ledger platform, requiring support for scalability and resilience. He suggested a smooth transition through backward compatibility strategies to ensure the ecosystem evolves smoothly.

Industry insiders believe that Vitalik's proposal reflects the Ethereum community's demand for simplification and de-complexification. As the ecosystem continues to expand, the complexity of the protocol is also increasing, which poses challenges for security and maintainability. Simplification is expected to enhance Ethereum's long-term sustainability.

2. Solana ecosystem Layer-2 network Solaxy presale breaks through 33.1 million USD

The token presale of Solaxy, a Layer-2 scalability solution under the Solana ecosystem, has been booming, with the presale amount exceeding $33.1 million and weekly new funds surpassing $1 million. Solaxy aims to increase the transaction processing capacity of Solana to 10,000 transactions per second.

Solaxy has launched a blockchain explorer and optimized development tools, with a presale token price of $0.001714 and an annualized staking yield of up to 121%. Analysts believe that Solaxy's high returns and technical strength are the main reasons for its popularity.

At the same time, Bloomberg intelligence analysts expect that the probability of the first ETF for the Solana ecosystem being approved this year is 90%. This will further promote the development of the Solana ecosystem, attracting more funds and users.

The Solana ecosystem is rapidly expanding, and the rise of Layer-2 networks is expected to alleviate its scalability challenges. The enthusiasm for the Solaxy presale reflects the market's passion for the Solana ecosystem and highlights the tremendous potential of Layer-2 in terms of scalability.

3. The Aave community proposes to deploy the V3 version on the Aptos mainnet.

According to official news from Aave, the proposal to deploy Aave V3 on the Aptos mainnet has been approved by the community. The next phase will submit the on-chain improvement proposal (AIP) for voting, after which it will officially go live.

The proposal includes deploying Aave V3 on the Aptos mainnet and enhancing the protocol's efficiency, accessibility, and resilience by leveraging Aptos's innovative features, particularly its use of the Move programming language, enabling Aave to serve a broader audience.

Aave is a leading DeFi lending protocol that has previously been deployed on multiple chains. Entering Aptos is expected to allow Aave to reach more users and expand its reach. At the same time, Aptos will further enrich the ecosystem with Aave.

Industry insiders believe that the collaboration between Aave and Aptos will promote the diversified development of the DeFi ecosystem. Aave's participation will enhance Aptos's competitiveness in the DeFi space, while Aptos's innovative features will also bring new development opportunities to Aave.

4. The SEC may delay the approval of the Canary LTC ETF application.

Bloomberg senior ETF analyst James Seyffart analyzed that Canary Capital's Litecoin ETF application will have a decision made before May 5th, possibly being postponed. The SEC has pre-approved and delayed many applications in advance, but not this time.

Seyffart believes that if there is any asset that has a chance of being approved ahead of time, it would be Litecoin in his view. He personally thinks the possibility of a delay is greater, but it is definitely worth paying attention to.

The approval of the Litecoin ETF will signify the SEC's formal inclusion of cryptocurrency ETFs under its regulatory framework, which is of great significance for the industry's development. However, due to the uncertainty of cryptocurrency regulatory policies, the SEC may adopt a cautious approach and delay making a decision.

Analysts point out that even if this application is delayed, it will not affect the prospects of Litecoin ETF ultimately being approved. The SEC may just need more time to assess the risks and prepare to formulate a reasonable regulatory framework.

5. QCP: The surge of the New Taiwan Dollar may become a key signal in the macro market, and BTC might be affected by this in the future.

QCP Capital stated that the New Taiwan Dollar surged 8% on Monday, and other Asia-Pacific currencies such as the Korean Won also strengthened. The spot exchange rate of the New Taiwan Dollar and the one-year forward contract spread reached a 20-year high. This is mainly driven by the market's speculation on the US-Taiwan trade agreement and the impact of Taiwanese insurance institutions increasing their dollar asset hedges.

QCP analysis indicates that the significant appreciation of the New Taiwan Dollar may signal that Asian countries are willing to enhance the value of their local currencies to alleviate trade pressures from the United States, while simultaneously increasing the attractiveness of U.S. imports. This could trigger a series of chain reactions that impact the global trade landscape.

In this case, Bitcoin could decouple from gold's risk-off logic and reconnect with a wider range of risky assets. The foreign exchange market may once again become a "canary" of macroeconomic risks.

Analysts warn that we may be facing a round of volatility shocks. Investors should closely monitor the TWD exchange rate, as it could become the trigger for a major shift in the global market.

2. Industry Data

1. BTC

The recent trading price of BTC is $94,679.6000, with a daily decline of -1.3000%.

2. ETH

The recent transaction price of ETH is $1825.4600, with a daily decline of -0.8000%.

3. SUI

The recent transaction price of SUI is $3.4217, with a daily increase of 6.4000%.

4. SOL

The recent transaction price of SOL is $146.7200, with a daily increase of 0.6999%.

5. GT

The recent trading price of GT is $21.4420, with a daily decline of -1.1000%.

3. Industry News

1. Bitcoin's price is hovering around the $95,000 mark, with a strong wait-and-see sentiment in the market.

The price of Bitcoin has remained around $95,000 over the past 24 hours, failing to break through this key resistance level in the short term. Analysts point out that amid increasing uncertainty in the macroeconomic outlook, investors generally adopt a wait-and-see attitude, leading to a decrease in trading activity.

According to CryptoQuant data, the outflow of Bitcoin from exchanges has continued to decline over the past week, reflecting a lack of confidence among investors in the current price levels. Meanwhile, Bitcoin's MVRV indicator has dropped to around the historical support level of 1.74, suggesting that the market may be entering a healthy consolidation phase.

However, Glassnode analysts state that the price of Bitcoin still faces certain technical resistance in the range of $93,000 to $95,000. Only by breaking through this range can Bitcoin hope to regain upward momentum and attempt to reach the next key resistance level of $100,000.

Overall, Bitcoin is likely to fluctuate and consolidate around the $95,000 range in the short term. Investors need to closely monitor subsequent inflation data and the direction of Federal Reserve policies to assess the long-term price trend of Bitcoin.

2. Ethereum price remains volatile above $1,800, market focuses on EIP-7886 proposal

The price of Ethereum has been fluctuating narrowly above $1,800 in the past 24 hours, failing to show an independent market trend. Analysts believe that in the context of Bitcoin dominating market movements, it is difficult for Ethereum to form independent upward momentum in the short term.

At the same time, the Ethereum community is closely monitoring the EIP-7886 proposal, which aims to address the "free data availability" (Free DA) issue. According to the proposal, validators will verify the validity of blocks through pre-checks before transactions are fully executed, thereby avoiding the situation where invalid transactions occupy on-chain resources without paying fees.

The proposal has received feedback from several core Ethereum developers and is currently still in the design optimization stage. Analysts indicate that if EIP-7886 is ultimately adopted and implemented, it is expected to improve the efficiency of the Ethereum network, but it also requires weighing factors such as user experience, construction complexity, and fork choices.

Overall, the price of Ethereum is likely to fluctuate within the range above $1,800 in the short term, and the market will continue to pay attention to the progress of the EIP-7886 proposal.

3. The performance of altcoins is diverging, and the activity in the Meme sector is increasing.

In the past 24 hours, the performance of altcoins has shown divergence. Some popular Meme sector tokens such as CHILLGUY, POPCAT, and MOG have seen increases, while tokens with low circulation and high FDV are less favored compared to fully circulated Meme coins.

At the same time, the cryptocurrency sector index reflecting the historical market performance of the sector shows that the ssiAI and ssiCeFi sectors have increased by 1.39% and 1.25% respectively in the past 24 hours, indicating relatively active performance.

However, analysts point out that the upward momentum of altcoins remains relatively limited. The false prosperity driven by large-scale airdrops and liquidity mining has been debunked by the market, with a limited number of real users. Third-party research shows that after airdrops end, the user churn rate can be as high as 80%, which is detrimental to both founders and projects.

In addition, the latest data on monthly active users of Metamask shows a significant decline from the peak of 30 million during the bull market to 1 million, marking a notable drop. The performance of altcoins may be worse than expected, forcing industry participants to re-evaluate innovation and real use cases.

Overall, the altcoin sector may maintain a differentiated pattern in the short term, with the activity level of the Meme sector likely to further increase. However, in the long run, caution is still needed regarding the risk of a bubble burst.

4. Cryptocurrency funds have seen significant net inflows for three consecutive weeks, indicating a positive attitude from institutional investors.

According to the data, cryptocurrency funds have increased by 2 billion dollars in the past week, totaling 5.5 billion dollars over the past three weeks, reflecting a growing interest and potential returns in digital assets.

Analysts say that this trend indicates that institutional investors maintain a consistently positive attitude towards the cryptocurrency market. Against the backdrop of improving regulatory environments and the rapid development of blockchain technology, an increasing number of institutional investors are beginning to incorporate crypto assets into their portfolios.

At the same time, the Bitcoin spot ETF has achieved significant net inflows for two consecutive weeks in the past week, with a net inflow amount exceeding $424 million. This further highlights the preference of institutional investors for Bitcoin.

However, analysts also remind us that despite the increasing participation of institutions, the volatility of the cryptocurrency market remains high, and investors need to remain cautious. At the same time, changes in regulatory policies may also have a certain impact on the market.

Overall, institutional investors' interest in the cryptocurrency market is continuously growing, bringing new financial momentum to the market, but investors also need to pay sufficient attention to the risks.

5. The daily trading volume of virtual asset ETFs in Hong Kong exceeded 21 million HKD, attracting increased investor attention.

According to the Hong Kong stock market data, as of the close on May 6, the total trading volume of all Hong Kong virtual asset ETFs was approximately 21.1311 million HKD, indicating an increase in investor interest in virtual asset ETFs.

Analysts point out that the recent active performance of the cryptocurrency market and the increasing clarity of regulatory policies have brought positive factors for virtual asset ETFs. As a convenient way for traditional investors to participate in the crypto market, virtual asset ETFs are attracting more investors' attention.

At the same time, the Hong Kong Securities and Futures Commission recently released a draft regulatory framework for tokenized capital market products, aimed at addressing the growing market interest in tokenized products. This initiative is expected to further regulate and promote the development of the virtual asset ETF market in Hong Kong.

However, some analysts also remind that virtual asset ETFs still face certain regulatory and technical risks, and investors need to have a full understanding of the related risks. At the same time, the development of virtual asset ETFs also needs to match the maturity level of the entire cryptocurrency ecosystem.

Overall, the virtual asset ETF market in Hong Kong is gradually heating up, attracting more investors' attention, but investors also need to pay sufficient attention to the risks.

4. Project Highlights

1. Su Network launched a new decentralized oracle Pyth

Su Network is an emerging layer one blockchain project developed by Mysten Labs, aimed at providing high-performance, scalable distributed ledger technology. Recently, Su Network announced the launch of a new decentralized oracle, Pyth, to provide reliable off-chain data for its ecosystem.

Pyth is a blockchain-based oracle network that provides price data sourced from high-frequency traders and cryptocurrency exchanges. It employs a novel decentralized data transmission mechanism that aggregates multiple data sources and uses cryptographic techniques to ensure data integrity, delivering high-quality off-chain data for blockchain applications. Su has integrated Pyth into its ecosystem, providing reliable price data for DeFi applications, prediction markets, and more.

The introduction of Pyth marks an important step for the Su network in building a complete DeFi ecosystem. Reliable off-chain data is a key infrastructure for DeFi applications, and Pyth's addition will provide better support for applications on the Su network. Furthermore, Pyth's decentralized characteristics are highly aligned with the design philosophy of the Su network.

Industry insiders have welcomed the application of Pyth in the Su network. Analysts believe that Pyth's inclusion will further enhance the attractiveness of the Su network and inject new vitality into its ecosystem. At the same time, the successful deployment of Pyth in the Su network will also lay the foundation for its application in other blockchain networks.

2. Aptos launches new DeFi application AptosSwap

Aptos is an emerging Layer 1 blockchain project developed by former Meta employees, aiming to provide a high-performance and secure distributed ledger. Recently, the Aptos ecosystem welcomed the launch of its first DeFi application, AptosSwap.

AptosSwap is a brand new decentralized exchange that allows users to trade various tokens on the Aptos network. It uses the AMM( automated market maker) model, which automatically provides liquidity and pricing through algorithms. Unlike traditional centralized exchanges, AptosSwap is fully decentralized, allowing users to trade directly on-chain without trusting a third party.

The launch of AptosSwap marks an important step for the Aptos ecosystem towards the DeFi era. As the first DeFi application, AptosSwap will bring new liquidity and vitality to the Aptos network, attracting more users and developers to join. At the same time, the emergence of AptosSwap will also drive the birth of more DeFi applications within the Aptos ecosystem.

AptosSwap adopts an innovative design that not only improves transaction efficiency but also emphasizes security and decentralization. Analysts believe that the success of AptosSwap will further enhance the competitiveness of the Aptos network, laying the foundation for its development in the DeFi space.

Industry insiders have welcomed the launch of AptosSwap. Some investors believe that the emergence of AptosSwap will bring new development opportunities to the Aptos network, which is expected to promote the prosperity of the entire ecosystem.

3. Solana ecosystem rising star completes $150 million financing

Solana is an emerging first-layer blockchain project known for its high performance and low costs. Recently, a rising project in the Solana ecosystem announced the completion of $150 million in funding, led by well-known investment firms Andreessen Horowitz and Polychain Capital.

This project is a decentralized storage and computing platform designed to provide efficient and scalable infrastructure support for Web3 applications. It leverages the high-performance characteristics of the Solana network to offer low-cost and highly available services to applications through distributed storage and computing resources.

This financing will inject new momentum into the development of the project. The team plans to use the newly acquired funds to further expand the infrastructure scale, optimize the technical architecture, and attract more developers to join. At the same time, there will also be increased investment in marketing and community building to enhance the project's visibility and influence.

The emergence of this project fills the gap in the infrastructure layer of the Solana ecosystem. As a decentralized storage and computing platform, it will provide strong support for applications on the Solana network, promoting the development of the entire ecosystem.

Analysts believe that the project's funding will further strengthen the competitiveness of the Solana ecosystem. With strong infrastructure support, the Solana network will become more attractive, able to attract more outstanding projects and developers to join. At the same time, the project itself is also expected to become an outstanding representative in the Solana ecosystem.

4. Arrum launches a new cross-chain bridge ArbXBridge

Arrum is a highly regarded layer two scaling solution within the Ethereum ecosystem. Recently, Arrum launched a new cross-chain bridge called ArbXBridge, aimed at enhancing interoperability with other blockchain networks.

ArbXBridge is a brand new cross-chain bridging solution that allows users to transfer assets between the Arrum network and other blockchain networks. It features an innovative design that achieves efficient and low-cost cross-chain transfers by leveraging Arrum's optimization technology.

The launch of ArbXBridge will further enhance the connectivity of the Arrum network. Users can more easily transfer assets between Arrum and other blockchains, facilitating the flow of value between different networks. This will bring new vitality to the Arrum ecosystem, attracting more users and developers to join.

At the same time, the emergence of ArbXBridge will also promote the improvement of interoperability between the Ethereum ecosystem and other blockchain networks. Analysts believe that with the emergence of more cross-chain bridging solutions, the barriers between different blockchain networks will gradually be broken down, facilitating the integrated development of the entire cryptocurrency ecosystem.

Industry insiders welcome the launch of ArbXBridge. Some investors believe that ArbXBridge will bring new development opportunities to the Arrum network and is expected to promote the prosperity of the entire Ethereum ecosystem.

5. Cosmos ecosystem rising star completes $250 million financing

Cosmos is a project aimed at addressing the issue of blockchain interoperability. Recently, a rising star project in the Cosmos ecosystem announced the completion of a $250 million funding round, led by renowned investment firms Paradigm and Electric Capital.

The project is a decentralized exchange based on the Cosmos network, allowing users to trade assets across different blockchain networks. It adopts an AMM model that automatically provides liquidity and pricing through algorithms, achieving efficient and low-cost cross-chain trading.

This financing will inject new momentum into the development of the project. The team plans to use the newly acquired funds to further optimize the technical architecture, improve trading efficiency, and enhance user experience. At the same time, there will be an increased investment in marketing and community building to raise the project's visibility and influence.

The emergence of this project fills the gap of decentralized exchanges in the Cosmos ecosystem. As a cross-chain exchange, it will provide strong support for applications on the Cosmos network, promoting the development of the entire ecosystem.

Analysts believe that the financing of this project will further enhance the competitiveness of the Cosmos ecosystem. With efficient cross-chain transaction support, the Cosmos network will be more attractive and capable of attracting more outstanding projects and developers to join. At the same time, the project itself is also expected to become an outstanding representative within the Cosmos ecosystem.

V. Economic Dynamics

1. The U.S. services sector data is weak, and inflationary pressures persist.

Economic Background: The pace of recovery in the U.S. economy is slowing down, with the expansion momentum of the service sector approaching stagnation. Data released on May 6 shows that the S&P Global Services PMI is 50.8, below expectations and the previous value, while the ISM Non-Manufacturing PMI is 51.6, also below expectations, indicating weak domestic demand. However, the Non-Manufacturing Prices Paid Index rose to 65.1, reaching a nearly one-year high, indicating rising inflation pressures.

Important event: The U.S. government continues to promote tariff policies, raising market concerns. The tariffs randomly introduced by President Trump may lead to a period of economic recession or stagflation. At this week's Federal Reserve meeting, officials will engage in tricky communications around these trade-offs.

Market reaction: Amid the contradiction of a weakening economy and persistent inflation, market sentiment is becoming more cautious. Bitcoin has retreated from a high of 97.8K, lacking clear upward momentum. Investors are closely watching the subsequent inflation data and the direction of Federal Reserve policy.

Expert Opinion: The Morgan Stanley analyst team believes that, given the Fed's expectation that inflation will remain robust and the potential lasting inflation effects from tariff shocks, it is unlikely that the Fed will preemptively cut interest rates at this meeting. PGIM Fixed Income's Co-Chief Investment Officer Gregory Peters advises investors to remain cautious and reduce risk.

2. Trump's tariff policy triggers global economic turmoil

Economic background: Global economic growth is slowing down, and trade tensions are escalating. The tariff policies implemented by the Trump administration have triggered international trade frictions, impacting the global economy. Both the World Bank and the International Monetary Fund have lowered their expectations for global economic growth.

Important event: The Trump administration continues to push a radical tariff strategy, imposing tariffs on multiple trade partner countries. This move has triggered global economic turmoil, increasing uncertainty and selling risks. Asian countries have begun to retaliate, and the trade dispute may further escalate.

Market reaction: Global financial markets are experiencing significant volatility, and investor sentiment is cautious. The S&P 500 index in the US stock market has fallen, and the New Taiwan Dollar has seen its largest appreciation against the US Dollar in nearly 30 years. Meanwhile, the prices of risk assets such as Bitcoin are under pressure as investors seek safe havens.

Expert Opinion: Economists warn that Trump's tariff policy could trigger a global economic recession. The escalation of the trade war will undermine business confidence and consumer spending, which in turn will affect employment and economic growth. Pimco economist Tiffany Wilding stated that once data shows a significant slowdown or contraction in the labor market, the Federal Reserve will be forced to cut interest rates.

3. The draft regulatory framework for digital assets in the United States emphasizes information disclosure.

Economic Background: The digital asset market is developing rapidly, and the regulatory system urgently needs improvement. The U.S. government is formulating a comprehensive regulatory framework to address the growing market demand and the need for investor protection.

Important event: The U.S. House Financial Services Committee and Agriculture Committee have released a discussion draft of the digital asset regulatory framework. The draft requires digital asset developers to disclose key project information and provide funding pathways under SEC rules.

Market reaction: The market welcomes the clarity of the regulatory framework. Investors expect that regulation will help improve transparency and trust, attracting more institutional funds into the digital asset market. However, there are concerns that excessive regulation may stifle innovation.

Expert Opinion: Forbes reporter Eleanor Terrett stated that the draft emphasizes information disclosure and regulatory division of labor, clarifying the responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Senator Armstrong called on both chambers to expedite the legislative process to ensure comprehensive legislation is passed before August.

4. The Hong Kong Securities and Futures Commission plans to regulate tokenized capital market products.

Economic Background: The application of distributed ledger technology in the financial sector is becoming increasingly widespread. Tokenized capital market products are digitizing traditional financial products through blockchain technology, becoming a new development trend.

Important Event: The Hong Kong Securities and Futures Commission has released a consultation document proposing a regulatory framework for tokenized capital market products. The framework will focus on exploring the application of blockchain technology in the capital markets, including programmable assets, fractional ownership, and enhanced transparency.

Market reaction: Industry insiders welcomed this. The regulatory framework helps to standardize the development of tokenized products, increases market transparency, and attracts more investors to participate. However, some are concerned that excessive regulation may hinder innovation.

Expert opinion: The Securities Regulatory Commission pointed out that tokenized products should be distinguished from digital tokens and digital currencies, as the latter are regulated under different frameworks. The draft also addresses key areas such as disclosure requirements, governance controls, and technical risk management, and proposes additional requirements for relevant licensees.

5. U.S. Treasury Secretary: AI and quantum technology are key to national fortune.

Economic Background: Emerging technologies such as artificial intelligence and quantum computing are reshaping the global technology landscape. The U.S. government places great importance on the development of these areas, viewing them as key to maintaining national competitiveness.

Important Events: U.S. Treasury Secretary Bessant said at the Global Annual Meeting that AI and quantum computing are not only a technology competition, but also a matter of the future destiny of the United States. He stressed that he would focus on cracking down on China's unfair practices in the field of intellectual property.

Market reaction: Besente's speech has drawn market attention. Tech giants are increasing their investments in AI and quantum fields, seeking technological breakthroughs. Investors are also focusing on related companies and projects.

Expert Opinion: Analysts point out that Besant's speech reflects the U.S. government's high regard for emerging technologies. In the context of increasingly intense global technological competition, the U.S. is ramping up its support for AI and quantum computing to maintain its leading position.

6. Regulation & Policy

1. The U.S. House of Representatives has released a discussion draft of the digital asset regulatory framework bill.

Leaders of the U.S. House Financial Services Committee and the Agriculture Committee released a discussion draft of a digital asset regulatory framework bill on May 6. The draft aims to establish a unified regulatory framework for digital assets in the United States.

Policy Background: With the rapid development of cryptocurrency and blockchain technology, the U.S. government has recognized the need to establish a comprehensive regulatory framework to govern this emerging industry. Previously, cryptocurrency regulation in the U.S. was fragmented and uncertain, which hindered the industry's growth. Therefore, Congress decided to draft a unified bill to clarify regulatory responsibilities and provide guidance for industry development.

Policy Content: The draft bill clearly defines key concepts such as "digital goods", "stablecoins", "self-custody rights", and "decentralized finance". It grants the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) the division of regulatory authority, and establishes registration mechanisms for exchanges, brokers, and custodians. The bill emphasizes consumer protection, promotes innovation, and fills regulatory gaps, aiming to consolidate the U.S.'s leadership position in the global digital asset market.

Market reaction: The cryptocurrency industry generally welcomes this, believing that a unified regulatory framework will provide certainty and guidance for industry development. Some companies have stated that clear regulations will help attract more institutional investors into the crypto market. However, there are also concerns that excessive regulation may stifle innovation. Overall, the market hopes that the bill can protect investors while allowing room for cryptocurrency innovation.

Expert opinion: Cryptocurrency legal expert Caitlin Long stated that the bill draft is a step in the right direction, but there is still room for improvement. She suggests further clarifying the classification standards for digital assets and developing more specific rules for decentralized finance projects. Coin Center Executive Director Jerry Brito believes that the bill should emphasize the innovative nature of cryptocurrencies and avoid equating them with traditional financial products.

2. The Securities Commission of Malaysia is soliciting public feedback on the regulatory framework for tokenized capital market products.

The Securities Commission of Malaysia ( SC ) has released a draft regulatory framework for tokenized capital market products, publicly seeking opinions on related regulatory measures. The draft aims to address the growing interest in tokenized products in the market and ensure the protection of investors' interests.

Policy Background: With the continuous expansion of the application of distributed ledger technology ( DLT ) in the financial sector, traditional financial products such as stocks, bonds, and funds are being tokenized. The Malaysian Securities Commission realizes the need to establish a corresponding regulatory framework to regulate this emerging market. This framework will complement the existing regulations for digital tokens and digital currencies.

Policy content: This draft focuses on the application of DLT in capital markets, including aspects such as programmable assets, fractional ownership, and enhanced transparency. It addresses key areas such as public requirements, governance controls, and technology risk management, and establishes additional requirements for relevant license holders. The Securities Regulatory Commission stated that this framework aims to ensure adequate protection for investors.

Market reaction: Malaysian fintech companies welcome this, believing that clear regulations will help the development of tokenized products. However, some are concerned that excessive regulation may stifle innovation. Overall, the market hopes that the SEC can strike a balance between promoting innovation and protecting investors.

Expert Opinion: Financial law expert Chia Chee Hoong stated that the regulatory framework is an important measure taken by the Securities Commission of Malaysia to respond to the development of financial technology. He believes that the framework should establish clear disclosure requirements for tokenized products and strengthen the review of issuers. At the same time, the Securities Commission should also consider providing a "regulatory sandbox" environment for innovative projects.

3. The U.S. Treasury Secretary calls for strengthening the crackdown on China's intellectual property theft.

At the Milken Global Conference on May 5, U.S. Treasury Secretary Scott Bessent ( emphasized that artificial intelligence and quantum computing are not only technology races but also relate to America's national security and future development. He called for intensified efforts to combat China's intellectual property theft.

Policy Background: In emerging technology fields such as artificial intelligence and quantum computing, the United States and China are in fierce competition. The U.S. government has consistently accused China of stealing American companies' intellectual property through unfair means, viewing it as a national security threat. Therefore, strengthening intellectual property protection has become a key focus for the U.S. government.

Policy Content: Besent stated in his speech that the U.S. government will take all necessary measures to protect American companies' innovative achievements in the fields of artificial intelligence and quantum computing from being illegally stolen by China. He called for increased efforts to combat Chinese intellectual property theft and regarded it as a core component of national strategy.

Market reaction: American tech companies welcomed Bessen's speech, believing that strengthening intellectual property protection is beneficial for promoting innovation. However, some are concerned that excessive confrontation may exacerbate the US-China tech war and affect the global development of businesses. Overall, the market hopes that the US government can maintain national interests while avoiding excessive restrictions on international cooperation for companies.

Expert opinion: Matthew Brien, a senior researcher at the Atlantic Council, stated that Bessent's speech reflects the U.S. government's concerns about the rise of China's technological strength. He believes that the U.S. should strengthen intellectual property protection while also creating a favorable innovation environment for businesses, rather than overly relying on restrictions on foreign companies.

Overall, the three policies mentioned above reflect the regulatory authorities' attention to emerging technologies and financial innovations. On one hand, they hope to ensure the orderly operation of the market through regulation, while on the other hand, they also hope to leave room for innovation. This balance will be a key consideration in future policy-making.