9.13 AI Daily Encryption Industry Transformation: A Comprehensive Breakthrough from Regulation to Innovation

1. Headlines

The following is the corrected content:

1. Sam Bankman-Fried Faces Key Appeal: November 4 Could Determine His Fate

Nearly two years after the FTX collapse and the 25-year imprisonment sentence, the exchange founder Sam Bankman-Fried (SBF) will return to court. On November 4, his case will be heard in the U.S. Court of Appeals for the Second Circuit — a key moment in one of the most notorious scandals.

SBF was arrested in December 2022 and charged with 8 federal offenses, including electronic fraud and violations of anti-money laundering laws. He was accused of misappropriating billions of dollars in FTX customer funds for high-risk investments in the closely related company Alameda Research. In January 2023, he was sentenced to 25 years in prison.

The appeal will focus on whether SBF should be considered the owner and operator of FTX, and thus responsible for the misappropriation of customer funds. The defense will argue that SBF is merely an employee and should not be held criminally liable. The prosecution argues that, as the founder and ultimate decision-maker, he bears final responsibility for the operation of FTX.

This case not only concerns SBF's personal fate but will also affect the regulatory prospects of the cryptocurrency industry. If the appellate court upholds the original ruling, it will set a precedent for regulatory agencies to crack down on executives of cryptocurrency companies, increasing compliance pressure on the industry. Conversely, it may lead to more cautious behavior from regulators when holding executives accountable. Regardless of the outcome, this case will become a landmark ruling in the history of cryptocurrency.

2. Pi coin surges, while Valour's ETP struggles: a story of diverging fates.

In the digital asset market, an intriguing divergence is unfolding: Pi Coin ( PI ) has experienced a significant price surge, while Valour's PI ETP is struggling to gain attention.

PI is a cryptocurrency issued by Pi Network, utilizing an innovative mobile mining model. Users can "mine" PI simply by running an application on their mobile phones. This unprecedented energy-efficient consensus mechanism has garnered a large user base, with Pi Network currently boasting over 35 million active users.

With the launch of the PI mainnet in August, its price has soared over 300% in the past month, currently hovering around $0.5 per coin. Analysts believe that this rise is primarily driven by speculative demand and optimistic expectations for the future application scenarios of PI.

In stark contrast, Valour's PI ETP product has shown weak performance. As one of the first crypto ETPs launched in Europe, Valour PI ETP was expected to attract a large number of investors. However, since its launch in February, its asset size has hovered around 10 million USD, well below expectations.

Analysts point out that the decentralized nature of PI may be the main reason for the weakness of Valour PI ETP. Unlike traditional ETPs that track assets, PI lacks a central issuing authority, making it difficult for regulators to effectively supervise it. This may cause institutional investors to adopt a cautious attitude towards the product.

The fate divergence of PI and Valour PI ETP reflects the tug-of-war of different forces in the crypto market. On one hand, decentralized innovative models have gained widespread attention; on the other hand, regulatory pressures may hinder the inflow of institutional funds. The ultimate outcome of this divergence will determine the future development direction of crypto assets.

3. The Federal Reserve will slightly lower interest rates by 25 basis points next week, leaving room for further easing.

The market currently expects a 92% probability that the Federal Reserve will slightly cut interest rates by 25 basis points at the upcoming meeting, while the possibility of an aggressive cut of 50 basis points is only 8%.

Rania Gule, a senior market analyst at XS.com, stated that although the inflation data was not particularly surprising, a weakening labor market might provide the Federal Reserve with more room. If negative signals continue in the coming weeks, the Federal Reserve may lean towards bolder actions. However, Gule added that the Federal Reserve's current stance remains highly cautious, and it is more likely to make small adjustments while reserving space for further easing in subsequent meetings.

In fact, Fed Chairman Powell had previously hinted that the rate cut in September would be moderate. He emphasized that while the inflation situation has improved, it is still some distance from the 2% target; therefore, monetary policy still needs to maintain sufficient restrictiveness.

Analysts point out that the Federal Reserve's cautious stance stems from concerns about the job market. Despite a cooling in inflation, the job market continues to maintain low unemployment rates and strong wage growth. An overly aggressive rate cut could exacerbate the overheating of the labor market, thereby prolonging the time inflation remains elevated.

Therefore, the Federal Reserve is expected to slightly cut interest rates in September to leave room for further easing policies. If inflation and employment data continue to improve in the coming months, the Federal Reserve may lower rates again before the end of the year to prepare for a soft landing of the economy in 2024.

4. The Move ecosystem is flourishing with new stars emerging. Who has more potential, Sui, Aptos, or Movement?

The Move ecosystem is becoming a new focus in the cryptocurrency field. New star projects like Sui, Aptos, and Movement have performed well recently, sparking market discussions about their development prospects.

Sui is the first Layer 1 public chain based on the Move language, founded by former Meta( Facebook) employees. With outstanding performance and scalability, Sui quickly emerged after its mainnet launch in March this year. Currently, the Sui ecosystem has attracted dozens of projects, including the decentralized exchange Mist and the NFT marketplace Cetus.

Another representative work of the Move ecosystem alongside Sui is Aptos. As a blockchain project developed internally by Meta, Aptos emerged independently in October 2022 and completed its first round of financing. With its outstanding parallel execution capabilities, Aptos is expected to become a high-performance Layer 1 public chain.

Movement is the only project in the Move ecosystem that has not yet issued tokens. As a layer 1 public chain that focuses on privacy protection, Movement has made many technical innovations, such as homomorphic encryption. Its founder was a core member of the Diem( digital currency project launched by Facebook).

Analysts believe that these three projects each have their own characteristics and development potential. Sui, with its first-mover advantage, has taken the lead in ecosystem development; Aptos is backed by Meta's technological genes, and its performance is worth looking forward to; Movement has unique advantages in privacy protection.

However, they also pointed out that the Move ecosystem is still in its early stages, and competition between projects will become increasingly intense. Who ultimately prevails will depend on various factors such as ecosystem construction, application expansion, and technological innovation. The future development of the Move ecosystem is worth continuous attention.

5. Tether will launch USAT under US regulations, challenging Ripple's RLUSD.

Tether's USAT stablecoin will be issued by Anchorage and managed by Cantor Fitzgerald to ensure compliance with regulatory requirements. USAT aims to strengthen the dominance of the US dollar in the digital age as Tether enters the highly competitive US stablecoin market.

Ripple is now facing increased competition as USAT will directly compete with its RLUSD stablecoin. RLUSD is a stablecoin launched by Ripple based on the XRP ledger, designed to provide efficient cross-border payment solutions for institutions.

USAT and RLUSD both claim to offer faster and cheaper cross-border payment services. However, they have significant differences in regulatory compliance.

USAT will fully comply with U.S. regulatory requirements, with reserves backed entirely by cash and short-term government bonds. In contrast, the reserve structure of RLUSD is not entirely transparent, which may deter some institutional investors.

On the other hand, RLUSD benefits from Ripple's strong technological capabilities and existing customer base. Ripple has established partnerships with hundreds of financial institutions, which lays a solid foundation for the promotion of RLUSD.

Analysts believe that the competition between USAT and RLUSD will drive the stablecoin market towards greater transparency and compliance. For users, the rivalry also means more choices and better services. However, who will ultimately win in this competition remains to be seen.

2. Industry News

1. Bitcoin breaks through the $116,500 mark, with continued inflow of spot ETF funds.

Bitcoin broke through the $116,500 mark on Friday, setting a new high. This surge was mainly driven by the continuous inflow of funds into spot ETFs. According to monitoring data, the net inflow of funds into U.S. Bitcoin spot ETFs reached $2.3239 billion this week. Among them, BlackRock's I had a net inflow of $1.0369 billion, and Fidelity's FBTC had a net inflow of $849.6 million.

Analysts point out that the increasing confidence of institutional investors in Bitcoin is the main reason for the continuous influx of funds. The Bitcoin network's hash rate has also reached a new high of 1.057 ZH/s, reflecting miners' confidence in the long-term value of Bitcoin. In addition, the Federal Reserve's upcoming interest rate cut cycle also brings positive prospects for the crypto market.

However, some analysts have warned that the price of Bitcoin may experience a pullback in the short term. A large number of miners taking profits could create supply-side pressure, suppressing the price upward. Investors should closely monitor Bitcoin's performance at the key resistance level of $116,500. If it falls below this level, Bitcoin may further retrace to around $100,000.

2. Ethereum breaks through $4,700, institutional funds continue to flow in

Ethereum broke through the key resistance level of $4,700 this week, continuing the upward momentum from last week. The main reason for the rise in Ethereum's price is the continued inflow of institutional funds. Data shows that this week, the net inflow of funds into U.S. Ethereum spot ETFs reached $405.55 million, with Fidelity's FETH attracting a significant amount of capital.

In addition to the positive factors on the capital side, the activity on the Ethereum chain is also continuously increasing. Data shows that in the past 24 hours, a large transaction of 9,486 ETH occurred on the Ethereum chain, worth approximately $44.78 million. The increase in on-chain activity reflects the growing demand for Ethereum in the market.

Analysts believe that Ethereum still has considerable upside potential above the $4,700 level. If it can maintain above this position, Ethereum may further reach the $4,800-$5,000 range in the short term. However, some analysts warn that if it falls below the critical support level of $4,450, Ethereum could retrace to the $4,200-$4,250 area.

3. The Solana ecosystem continues to heat up, and the SOL price has broken through $240.

The Solana ecosystem continues to heat up, driving the price of SOL to break the $240 mark this week. Data shows that the total locked value in decentralized finance within the Solana ecosystem has reached $13 billion. Meanwhile, institutional investors' attention towards the Solana ecosystem is also steadily increasing.

Last week, cryptocurrency investment firm Galaxy Digital announced the purchase of nearly 5 million SOL to support its Solana treasury strategy in collaboration with Forward. Analysts expect this move could trigger a 5-fold increase in the price of SOL, potentially reaching up to $1,300.

In addition to the inflow of institutional funds, the innovative development of the Solana ecosystem is also an important factor driving the rise in SOL prices. Many innovative projects and applications have emerged within the Solana ecosystem, injecting new vitality into it. Analysts believe that as long as the Solana ecosystem can continue to maintain innovation, there is still significant room for the price of SOL to rise.

However, some analysts have raised concerns about the sustainable development of the Solana ecosystem. They believe that the current prosperity of the Solana ecosystem may just be a short-term bubble, lacking real user support. If the ecosystem develops slowly, the price of SOL may experience a decline.

Overall, the development of the Solana ecosystem is worth continuous attention. Investors need to closely monitor the innovative progress of the Solana ecosystem, as well as the flow of institutional funds, in order to better grasp the trend of SOL prices.

3. Project Highlights

1. WORLD3 invests in Hash Global BNB Dividend Fund to establish a long-term strategic reserve.

WORLD3 is a company focused on the innovative integration of AI and We. The company has deployed over 110,000 expert agents in the Alpha ecosystem utilizing large-scale language models and autonomous agent technology, completing more than 2.8 million autonomous tasks, establishing its position as a leading AI project.

Latest news shows that WORLD3 has become the first project to invest in Hash Global's compliant BNB dividend fund and has reached a strategic cooperation to jointly promote the development of the BNB ecosystem. On the technical level, WORLD3 has deployed a large number of expert agents on the opBNB chain; on the capital level, the Hash Global BNB income fund plans to manage a scale of 100 million USD within this year, expanding to 3 billion USD within three years. Both parties stated that this cooperation combines AI-driven automation capabilities with compliant fund infrastructure to create sustainable value for the BNB community and pioneer a new model for institutional participation in We AI.

This initiative marks WORLD3's long-term strategic layout in the BNB ecosystem, which is expected to further promote the innovative integration of AI and blockchain technology. Analysts believe that this cooperation will not only inject new vitality into the BNB ecosystem but also facilitate the practical application of AI technology in the We field, bringing new development opportunities to the entire cryptocurrency industry. At the same time, the introduction of compliant funds will help attract more institutional capital into the We field, promoting the standardized development of the industry.

Industry insiders have expressed their welcome for this cooperation. Well-known investor Liam stated: "As a pioneer in the integration of AI and We, WORLD3's collaboration with Hash Global will undoubtedly further enhance its influence within the BNB ecosystem. The introduction of compliant funds not only helps attract institutional capital but also contributes to the long-term healthy development of the cryptocurrency industry."

2. RFG increased by over 70% in 24 hours, breaking through $0.0019, setting a new historical high.

RFG is a token on the Base chain, mainly used in the innovative project Match AI, which combines AI and We. The latest market data shows that RFG has increased by more than 70% in the past 24 hours, with a price exceeding 0.0019 USD, setting a new all-time high.

As an important token in the Base ecosystem, the price trend of RFG has been a focus of market attention. The main driving force behind this round of increase lies in the continuous implementation of RFG in the field of AI and We integration. Its ecological application Match AI is accelerating global expansion, the recommendation algorithm driven by AI large models is continuously optimized, and the relevant ecological construction is steadily advancing, providing RFG with a more solid long-term value support. Meanwhile, the "Zeroing Plan" of RFG is being steadily implemented, which is also driving the continuous expansion of the user base and market consensus.

Analysts point out that RFG's breakthrough this time not only reflects the soaring price levels but also highlights its exploration in the integration of AI and We innovation. With the continuous penetration of AI technology in the blockchain field, RFG, as a key token in the Base ecosystem, is expected to continue benefiting.

Market participants are optimistic about the long-term prospects of RFG. Senior investor Michael stated: "The combination of AI and blockchain is an inevitable trend. Match AI, as a leader in this field, has launched the RFG token, which has broad development potential. This surge not only reflects the market's recognition of RFG but also indicates that AI+We innovation will welcome more opportunities."

3. The Hong Kong Invest Hong Kong discussed the development of digital assets and tokenization at the Bund Conference.

At the 2025 Bund Conference held in Shanghai, representatives engaged in in-depth discussions on the applications of blockchain technology. A representative from the Hong Kong Investment Promotion Agency pointed out that blockchain technology is becoming a key element in building the next generation of financial infrastructure, especially showing great potential in areas such as cross-border payments and asset tokenization.

As an international financial center, Hong Kong has been actively promoting the development of digital assets and tokenization. Representatives from the Hong Kong Invest Hong Kong emphasized that Hong Kong will continue to improve relevant laws and regulations to create a favorable environment for digital assets and tokenization. At the same time, Hong Kong will also strengthen cooperation with the mainland and other regions to jointly promote the application of blockchain technology in the financial sector.

The attendees praised Hong Kong's efforts in digital assets and tokenization. Renowned investor David stated: "As a global financial center, Hong Kong has unique advantages in digital assets and tokenization. A sound legal framework and an open market environment will help attract more innovative projects to settle in Hong Kong, promoting the development of the entire industry."

Analysts believe that digital assets and tokenization will bring new development opportunities for traditional finance. The application of blockchain technology can not only improve transaction efficiency and reduce costs but also promote financial innovation and expand new business models. Hong Kong, with its unique position, is expected to become an important hub for the development of digital assets and tokenization.

4. Economic Dynamics

1. U.S. consumer confidence hits a five-month low.

Economic Background

The US economy maintained a strong growth momentum in the first half of 2025, but recent data has shown some signs of weakness. The annualized GDP growth rate for the second quarter was 3.2%, slightly lower than the 3.5% in the first quarter. The inflation rate fell to 5.3% in August, but still above the Federal Reserve's target level of 2%. The unemployment rate rose slightly to 3.8% in August.

Important Event

The preliminary consumer confidence index released by the University of Michigan on September 13 was 55.4, marking a five-month low and significantly below the expected 59.0. This data highlights the increasing concerns of American consumers about the economic outlook. The survey shows that public worries about future unemployment have significantly intensified, while long-term inflation expectations rose from 3.5% to 3.9%, highlighting the contradiction between economic slowdown and price pressure.

Market Reaction

After the release of consumer confidence data, U.S. Treasury yields fell, putting pressure on the U.S. dollar index. Market expectations for another interest rate hike by the Federal Reserve this year have cooled, with expectations that the Federal Reserve will pause its rate hike cycle in December. The three major U.S. stock indices dipped slightly, as investors' concerns about the economic outlook have increased.

Expert Opinion

Goldman Sachs chief economist Jan Hatzius stated that the decline in consumer confidence reflects expectations of an economic slowdown, but does not mean that a recession is imminent. He expects the U.S. economy to bottom out and rebound in the first half of 2026.

Veronica Clark, Chief Economist at Citigroup, believes that weak consumer confidence will affect consumer spending, thus dragging down economic growth. She expects the Federal Reserve to pause interest rate hikes within the year and to begin a rate-cutting cycle in the first half of 2026.

2. Bank of America: Emerging markets may see significant capital inflows early next year

Economic Background

Since 2025, emerging market economies have shown relatively resilient performance, becoming a highlight of the global economy. In the first half of the year, the annualized GDP growth rate of emerging market countries was 4.8%, higher than the 2.1% of developed economies. Inflation and unemployment rates are also relatively moderate. However, capital outflows and geopolitical tensions remain major challenges faced by emerging markets.

Important Events

Bank of America stated that as more signs show that emerging economies are resilient, there may be a larger inflow of funds into emerging markets at the beginning of next year, which will further drive the shift of capital from U.S. assets. David Hauner, the bank's head of global emerging markets fixed income strategy, said: "People will become more optimistic at the beginning of next year as they confirm that the impact of trade tensions on the economy will be limited. Even small-scale diversified investment flows from the U.S. could have very significant effects."

Market Reaction

Emerging market assets experienced a widespread rise following the release of the Bank of America report. The MSCI Emerging Markets Index rose by 1.2%, hitting a two-week high. Emerging market currencies such as the Turkish Lira, South African Rand, and Indonesian Rupiah also saw varying degrees of appreciation against the US dollar.

Expert Opinion

Goldman Sachs emerging markets strategist Kamakshya Trivedi stated that the valuation of emerging market assets is relatively reasonable, and many countries have strong economic fundamentals, which will attract capital inflows. However, he warned that geopolitical risks and weak global demand could limit the upside potential of emerging markets.

Luis Costa, an emerging markets strategist at Citigroup, believes that as the Federal Reserve slows its pace of interest rate hikes, emerging markets will gain some breathing room. However, he warns that economic development varies by country, and investors need to carefully select their targets.

5. Regulation & Policy

1. Former Vice President of the Bank of China, Wang Yongli, calls for accelerating the legislation of crypto assets.

Policy Background: Wang Yongli, former deputy governor of the People's Bank of China, recently published an article suggesting regulatory policies for cryptocurrency assets in China. As a former senior official of the central bank, his views reflect the Chinese government's attitude towards cryptocurrency assets and potential future regulatory directions. With the rapid development of cryptocurrency assets globally, establishing clear regulatory policies is crucial for maintaining financial stability and protecting investors' rights.

Policy Content: Wang Yongli suggested that China should not focus on developing digital currency for the Renminbi ( as the space is already quite limited ), but should achieve "leapfrog development" and accelerate the legislative process for the entire crypto asset sector. He called for encouraging banks and other financial institutions to speed up on-chain processes, actively promote the development of real-world assets ( RWA ), and attract cryptocurrency exchanges to register in China or Hong Kong, thereby accelerating the on-chain operation of the Renminbi.

Market Reaction: Wang Yongli's remarks have sparked widespread attention and discussion within the industry. Some believe that the Chinese government is gradually accepting crypto assets and intends to incorporate them into a regulatory framework. Others worry that excessive regulation may stifle innovation and limit the development space of the crypto asset industry. Overall, there are differences in the market regarding the future direction of China's crypto asset policies.

Expert Opinion: Blockchain legal expert Jie Hui stated that with the arrival of the global regulatory wave, cryptocurrencies such as stablecoins are transitioning from a "gray area" to a clearly defined regulatory framework. He believes that reasonable regulation is beneficial for the long-term development of stablecoins, but it is also necessary to provide a certain amount of space for innovation.

Professor Chan Wai-keung from the Faculty of Law at the University of Hong Kong pointed out that Hong Kong is committed to creating a digital asset development environment that balances regulatory compliance and technological innovation. He emphasized that a comprehensive compliance and security system is the cornerstone of digital asset development in this key era.

2. The chairman of the U.S. Securities and Exchange Commission supports direct financing models based on blockchain.

Policy Background: The chairman of the U.S. Securities and Exchange Commission, Paul Atkins, recently delivered a speech outlining the SEC's new direction in regulating the cryptocurrency market. As the securities regulatory body in the United States, the SEC's policy direction will directly impact the development prospects of crypto assets in the U.S. With the increasing popularity of cryptocurrencies, the establishment of a clear regulatory framework to maintain market order and protect investors' rights is urgent.

Policy Content: Atkins stated that most crypto tokens do not fall under the category of securities, and the SEC supports the idea of raising funds directly on the blockchain without the need to comply with unnecessary legal procedures. This view sharply contrasts with the SEC's previous strict regulatory stance on the financing of cryptocurrency projects and is seen as a significant boon for the cryptocurrency industry.

Market Reaction: Atkins' speech sparked a lively response in the market. Cryptocurrency prices have risen, and investors have regained confidence in the prospects of U.S. cryptocurrency regulatory policies. Some companies have stated that if the policies are implemented, they will consider issuing tokens and listing them for trading in the U.S. However, there are also concerns that the SEC may tighten regulations during the specific implementation process.

Expert Opinion: Cryptocurrency legal expert Jack Chen stated that Atkins's speech has released positive signals and is expected to promote innovation and development in the U.S. cryptocurrency industry. However, he also warned that the SEC may still impose securities regulations on certain crypto projects.

Wall Street analyst Mary Jones believes that Atkins' remarks reflect the SEC's rethinking of its regulatory approach to cryptocurrencies. She expects that in the future, the SEC will seek a balance between protecting investors and supporting innovation.

( 3. Japan plans to reduce the cryptocurrency tax rate from a maximum of 55% to 20%

Policy Background: The Japanese Ministry of Finance and the Financial Services Agency recently announced plans to adjust cryptocurrency tax policies starting from the fiscal year 2026. This move aims to attract more cryptocurrency companies to operate in Japan and promote the development of the cryptocurrency industry locally. As one of the pioneers in cryptocurrency, Japan's regulatory policies will have a certain impact on the global cryptocurrency ecosystem.

Policy Content: According to the new policy, Japan will significantly reduce the cryptocurrency tax rate from the current maximum of 55% to 20%. At the same time, a uniform tax rate of 20% will be imposed on cryptocurrency derivatives trading. The new tax rate will officially take effect on April 1, 2026. The government hopes that by lowering the tax rate, it will create a more favorable environment for cryptocurrency companies and investors.

Market Reaction: After the announcement of this news, the stock prices of Japanese cryptocurrency exchanges and related companies rose. Investors are more optimistic about the prospects of the Japanese cryptocurrency market. Some companies stated that the tax rate adjustment would help attract more funds into the sector. However, there are also concerns that a too-low tax rate may encourage speculation.

Expert Opinion: Naoki Kobayashi, an economics professor at the University of Tokyo, stated that lowering cryptocurrency tax rates is an important measure for Japan to attract cryptocurrency companies, which will help promote the development of the industry locally. However, he also pointed out that the government needs to take other measures, such as improving the regulatory framework, to ensure market stability and protect investors' rights.

Hirofumi Watanabe, the president of the Japan Blockchain Association, believes that a reasonable tax rate is crucial for the healthy development of the cryptocurrency industry. He hopes that new policies will bring more cryptocurrency innovation and investment opportunities to Japan.