Source: encryption salad
Recently, discussions about RWA projects have been fervent in various Web3 communities. Industry observers often assert online that "RWA will reconstruct the new financial ecosystem of Hong Kong," believing that relying on the existing regulatory framework of the Hong Kong Special Administrative Region, this sector will usher in breakthrough development. During discussions with many colleagues, Crypto Salad found that everyone has been debating the so-called "compliance" issue, and their understanding of the question "what is compliance" varies greatly, leading to a situation where each side believes they are right. This phenomenon actually stems from the differing understandings of the RWA concept.
Therefore, it is necessary for the encryption salad to discuss the concept of RWA from the perspective of a professional legal team and clarify how the definition of RWA should be established, as well as to outline the compliance red lines for RWA.
1. How should the concept of RWA be defined?
(1) Background and Advantages of RWA Projects

Virtuals Protocol, as one of the main projects within the Base ecosystem, has recently stood out in the crypto market, with the Token VIRTUAL rising by 20% and a market capitalization exceeding three billion dollars. The project focuses on AI Agent, successfully attracting the attention of investors. The Virtuals ecosystem also includes noteworthy projects such as GAME, Luna, VaderAI, Sekoia, and Aixbt, which have unique development directions in the integration of AI technology and the crypto market, with market capitalization increases ranging from 20% to 41%. The development of various projects within the entire ecosystem brings new application scenarios and investment opportunities to the Base chain.

2024 is an important year for Crypto Assets and Blockchain networks, including the launch of Bitcoin and Ethereum ETFs in the United States, upgrades to altcoin protocols, and the release of new infrastructure networks. In this year, projects that implemented significant protocol upgrades or launched their Mainnet include Avalanche, Sui, Sonic, Hyperliquid, Ethereum Dencun, Cardano's Chang, Near Protocol, Movement, Chainlink, and Stacks. These projects have made significant advancements in performance, security, and functionality, driving the development of the entire Crypto Assets and Blockchain field.

Bitcoin is currently at $104.322, trading narrowly and up 0.14% in the past 24 hours. Traders are preparing for significant changes from US regulatory agencies, including detailed record-keeping requirements for crypto assets starting in 2026. Texas leads in Bitcoin reserves with proposed legislation allowing the creation of a state Bitcoin reserve fund. Technical analysis shows Bitcoin consolidating around $104,000 with potential for a reversal to higher levels if support at $103,501 holds.

According to Mars Finance, Bessent, the US Treasury Secretary, stated on Sunday that the United States will never default on its debt as the Senate reviews the comprehensive tax and spending bill passed by the House of Representatives, which includes provisions to raise the debt ceiling. "The United States of America will never default," Bessent said in an interview with CBS. Bessent urged Congress to raise the federal government's debt ceiling before mid-July to avoid a default event that could disrupt global markets.

Key Points
XRP gained 255% from November 2024 to January 2025, outpacing Bitcoin, Ethereum, and Dogecoin during the post-election crypto rally.
Economic uncertainty and concerns about international payment volumes create headwinds for XRP's cross-border payment focus.
A dollar-cost averaging

Cryptocurrency market performance on June 1: The top five gainers were Zcash, Flare, Pudgy Penguins, Lido DAO and Pyth Network, with up to 9%; The top five decliners were Cronos, Pendle, SPX6900, Bitcoin Cash, and Core, with the highest declines of 4.5%.

Trader James Wynn made a $1 billion Bitcoin short bet on Hyperliquid, leading to others mimicking opposite trades. Lookonchain identified a trader earning $17 million by going against Wynn, who faced $98 million in losses. Wynn plans to continue trading despite setbacks.