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LINK $8.64 -2.97%
HYPE $28.98 -1.81%
AAVE $122.61 -3.42%
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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.

Emily Bao attended Solana Accelerate APAC to disclose Byreal's 2026 strategy: launching perpetual contract DEX, automated LP, and Prop AMM

According to reports, Byreal co-founder Emily Bao shared Byreal's three core strategies for 2026 at the Solana Accelerate APAC event held today in Hong Kong. The event took place during Consensus Hong Kong.Emily stated that Byreal will advance upgrades in 2026 around the following areas:Infrastructure: Byreal plans to launch an automated LP mechanism and AI-assisted LP strategies, including AutoSwap single asset entry, atomic execution, automatic calculation of optimal ratios, and Automated LP & Copy Farming, achieving automatic rebalancing and yield reinvestment to reduce the complexity of liquidity provision operations and provide users with AI intelligent LP strategies.Liquidity Mechanism: Byreal will introduce the Prop AMM strategy, adopting a structure of "protocol-first liquidity management + dynamic fee model" to increase rates on arbitrage flows and gradually open up market-making to participants, optimizing LP yield structure and trade execution quality.On-chain Trading of Traditional Financial Assets: Byreal will launch on-chain perpetual contracts within this year, supporting 24/7 trading of RWA and on-chain asset perpetual contracts, and integrating prediction market data as an on-chain signal layer to build a unified execution architecture.Byreal is a decentralized on-chain trading platform (DEX) incubated by Bybit, which has rapidly become one of the most notable DEXs in the Solana ecosystem since its launch in mid-2025.Emily stated that this upgrade aims to build the underlying infrastructure for Internet Capital Markets, reshaping on-chain liquidity and trading experience.

Vitalik: Institutions and cypherpunks are not absolute enemies; a balance between cooperation and autonomy is needed

Ethereum co-founder Vitalik wrote that the relationship between "institutions" and "cypherpunks" is complex and needs to be understood correctly. Institutions (including governments and enterprises) are neither absolute friends nor absolute enemies; Vitalik emphasized the importance of maintaining an open attitude towards mutually beneficial cooperation while also actively safeguarding one's own interests. In this context, the core task of the Ethereum community is to build a financial, social, and identity layer to protect people's autonomy and freedom.The optimal strategy for institutions in the game is to strengthen control within a manageable scope while resisting external intrusions, which also makes them more concerned about data sovereignty and security issues than ordinary users. Vitalik predicts that institutions (including enterprises and governments) will increasingly reduce their reliance on external trust and have more guarantees over their operations.In the stablecoin sector, this means: issuers in the EU hope that the governance focus of their blockchain will not be overly centralized in the United States, and vice versa (the situation is similar in other countries/regions). Governments will promote more KYC processes, but at the same time, privacy tools will also be improved, as cypherpunks are working to enhance the performance of these tools. Institutions want to control their own wallets and even manage their own staking when staking ETH.
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