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XLM $0.1686 +4.70%
ZEC $335.46 -2.19%

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Tom Lee: The net effect of the war on the U.S. economy is positive, and the market has begun to price in favorable outcomes

Tom Lee, chairman of BitMine, a company in the Ethereum treasury, stated in an interview with CNBC, "The reason the stock market remains resilient is that even in the face of war, the economy is actually performing better than expected." He pointed out that defense spending is currently about $30 billion per month and could rise to $60 billion per month in the future, which has a significant stimulating effect on the economy; meanwhile, the rise in oil prices by $20 per month only adds about $12 billion in burden to households, "Overall, the war is actually helping corporate profits right now."Tom Lee cited historical precedents, saying, "Looking back at World War II, the stock market bottomed out in May 1942, just five months after the U.S. entered the war, and at that time, no American troops had even set foot on the European or Pacific battlefields." He believes, "The market is very good at pricing in outcomes ahead of time; the current rise in the stock market means that the market is pricing in a favorable outcome, although I can't clearly articulate the specific reasons, but that's the signal conveyed by the market's performance."Regarding the three major variables in the current market— the Iran war, corporate earnings reports, and interest rates—Tom Lee stated, "Among the three, only war can create tail events in both directions, so this is the variable that deserves the closest attention." In terms of sector allocation, he remains bullish on the energy sector and pointed out that energy security is one of the most important structural themes in recent years.

Opinion: The recent lawsuit outcome of Polymarket will determine the regulatory jurisdiction of prediction markets in the United States

Recent federal litigation by Polymarket against Massachusetts may determine whether the regulation of prediction markets in the United States falls under federal or state jurisdiction. Polymarket argues in the lawsuit that Congress has granted exclusive regulatory authority over "event contracts" (prediction markets for sports, politics, etc.) to the Commodity Futures Trading Commission (CFTC), and therefore state governments do not have the power to independently prohibit or regulate these platforms.The lawsuit aims to prevent Massachusetts Attorney General Andrea Campbell from potential enforcement actions, following a preliminary injunction issued by the state court against Polymarket's competitor Kalshi, which determined that its sports-related contracts constituted unlicensed sports betting. The regulatory conflict between the federal government and the states is intensifying, with prediction market platforms claiming they are regulated as derivatives markets by the CFTC and can operate nationwide, while states like Massachusetts and Nevada view them as a "sports betting loophole" that circumvents state gambling laws, leading to multiple lawsuits and injunctions.The outcome of Polymarket's appeal could reshape the regulatory framework for prediction markets in the United States, determining whether these platforms can operate free from state gambling law restrictions or must comply with varying rules across states, and it may ultimately be appealed to the U.S. Supreme Court.

Bloomberg: US regulatory shortcomings will undermine the future of the cryptocurrency industry

According to the editorial board of Bloomberg, the future of the U.S. cryptocurrency industry is at risk of being "damaged" due to the weak capabilities and insufficient resources of regulatory agencies.Although Congress has passed the Genius Act and attempted to establish a legal framework for digital assets through the Clarity Act, the enforcement capabilities of regulatory agencies are concerning. The risks in the stablecoin market are highly concentrated, with Tether and Circle accounting for over 80% of the market share, and their redemption crises could impact financial stability, while regulatory responsibilities are dispersed. The key regulatory body, the Office of the Comptroller of the Currency, lost about a quarter of its staff in 2025 and is still dealing with the effects of cyberattacks; the CFTC's budget is only one-sixth that of the SEC, and it is understaffed; the Consumer Financial Protection Bureau, which is the only agency tracking consumer complaints in the crypto space, has been significantly weakened.The commentary suggests that if "symbolic regulation" is conducted by incapable agencies, it could lead to more investors suffering losses in an environment where fraud remains rampant, ultimately backfiring. The article calls for the establishment of a new trading legal framework for hard-to-classify digital assets like Bitcoin and Ethereum, with rules jointly formulated by the SEC and CFTC to ensure that market participants meet basic requirements in terms of safety and soundness, consumer protection, and information disclosure.
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