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Eleanor Terrett: The automatic interest accrual on stablecoin balances is expected to be banned, and cryptocurrency legislation faces another setback

According to crypto journalist Eleanor Terrett, this morning's third meeting on the "Cryptocurrency Market Structure Bill" (the CLARITY Act) regarding stablecoin yields was smaller than last week's, with representatives from Coinbase, Ripple, a16z, and the Crypto Industry Association in attendance, but no bank representatives present individually; the banking industry's voice was conveyed through the industry association.The situation at this meeting was notably different: the White House led the discussion, rather than allowing cryptocurrency companies and banks to dominate the conversation as in previous meetings. Patrick Witt, the Executive Director of the White House Cryptocurrency Committee, brought a draft text that became the focal point of the discussion.The text acknowledged the concerns raised by banks last week in the "Prohibition of Yields and Interest Principles" document, while clearly stating that a key goal of stablecoin-related legislation is to prohibit earning yields on idle stablecoin balances. The debate has narrowed down to whether crypto companies can offer stablecoin rewards tied to specific activities, with banks' concerns seeming to stem more from competitive pressure than the initially perceived worry about deposit outflows.Sources from the banking sector indicated that they are still working to include a study on deposit outflows in the draft—this study would examine the growth of payment stablecoins and their potential impact on bank deposits. Additionally, the banking industry is encouraged by the proposed anti-tax avoidance provisions, which would empower the SEC, the Treasury, and the CFTC to enforce the ban on paying yields on idle balances, imposing a civil penalty of $500,000 per day for each violation.Sources stated that discussions could be finalized by the end of the month, with negotiations continuing in the coming days.

Vitalik: The goal of Ethereum is to grant humanity freedom, and extending the feedback distance between humans and AI is not a good thing

Ethereum co-founder Vitalik Buterin responded to Sigil on the X platform, stating that extending the feedback distance between humans and artificial intelligence is not a good thing. This trend often leads to AI generating low-quality content rather than truly solving real human problems, and it has not achieved good optimization even at the level of entertainment experience.Vitalik further warned that once AI develops to a sufficiently powerful and potentially dangerous stage, such developmental paths could maximize the risk of irreversible anti-human outcomes, even leading the promoters themselves to feel regret. The goal of Ethereum is to grant freedom to humanity, not to create a self-operating system that leaves human conditions unchanged or even worsened.Additionally, Vitalik Buterin pointed out that current mainstream models operate on centralized infrastructure such as OpenAI and Anthropic, which is not true self-sovereignty. This disregard for centralized trust assumptions is contrary to the principles that Ethereum opposes.The trend of exponential technological growth itself is difficult to stop; therefore, the core task of the current era is not to further accelerate exponential expansion, but to guide its direction of development, avoiding the system sliding into uncontrollable or undesirable attractor states.ChainCatcher previously reported that X user @0xSigil announced on the X platform the construction of an AI system capable of autonomously generating income, self-improvement, and replication without human intervention. This technology aims to provide AI with "write" permissions to the world and supports a "new network" composed of exponentially growing sovereign AIs.The author introduced the concept of "WEB 4.0" in related discussions, defining it as the stage of the birth of superintelligent life. This system demonstrates the technological path for AI to achieve self-sustainability and evolution.Moreover, both Solana and Ethereum have retweeted this post, stating that the technology is closely related to the project.

Analysis: SOPR has dropped to the range of 0.92–0.94, indicating macro marginal improvement, but the structural bull market for BTC has not yet been established

Bitfinex released an analysis report indicating that the decline in inflation in the U.S. market and the rise in interest rate cut expectations provide psychological support for risk assets, but the cryptocurrency market is more likely to experience phase fluctuations rather than a one-sided trend.The expansion of the Federal Reserve's balance sheet reduces systemic liquidity risks, which historically tends to benefit scarce assets like Bitcoin. However, the current pace of liquidity recovery is relatively slow, and selling pressure on spot Bitcoin re-emerged earlier this week, with cumulative sell-offs reaching several billion dollars. Although the market's ability to absorb sell orders has improved compared to before, on-chain indicators show that the adjusted SOPR (Spent Output Profit Ratio) has dropped to the range of 0.92–0.94, reflecting that most cryptocurrencies are being transferred at a loss, indicating that structural pressure still exists.The current macro environment provides a certain liquidity buffer for the cryptocurrency market, but it is still insufficient to support a sustained bull market. Bitcoin has tactical rebound potential in the short term, while long-term structural upward movement requires clearer signals of declining inflation and sustained spot demand support.
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