6.19 AI Daily Report: Progress of AI Large Models and Digital Money Regulation Running Concurrently, the Encryption Industry Welcomes Important Changes

1. Headlines

1. OpenAI founder Sam Altman revealed that GPT-5 will be released this summer.

Sam Altman, the founder and CEO of OpenAI, revealed in a recent interview that OpenAI's next-generation large language model, GPT-5, is expected to be officially released this summer. GPT-5 is highly anticipated to significantly surpass the current GPT-4 in terms of performance and capabilities.

According to Altman, the release of GPT-5 may be delayed due to reasons such as naming, security testing, and feature iteration. In addition to GPT-5, Altman also shared the latest progress of OpenAI's other blockbuster products, including the high-performance model o3, agent Deep Research, etc. He also revealed OpenAI's ambitious goal, the Stargate program, which costs $500 billion and aims to drive long-term development of AI technology.

Industry insiders believe that the release of GPT-5 will further drive the development and application of artificial intelligence technology. As the capabilities of large language models continue to improve, artificial intelligence is expected to play an important role in more fields, injecting new momentum into social development. However, it is also essential to pay close attention to the ethical and security issues of artificial intelligence technology to ensure its healthy and orderly development.

2. An Israeli hacker group has revealed internal information from an Iranian cryptocurrency exchange, triggering the spread of geopolitical conflicts into the digital world.

As the military conflict between Israel and Iran continues to escalate, cryptocurrency and blockchain technology have also been caught up in the vortex of this conflict. On June 19, the pro-Israel hacker group "Predatory Sparrow" publicly disclosed key information about Iran's largest cryptocurrency exchange Noex, including its internal architecture, system details, and source code on social media.

According to reports, this hacking act is aimed at retaliating against the large-scale hacking attack on an Iranian exchange, which resulted in over $80 million in funds being stolen and transferred to an unrecoverable black hole address. Analysts point out that although the hacker group claims this action is merely for political mockery rather than profit, this behavior undoubtedly exacerbates the confrontation between the two sides, bringing geopolitical conflict into the digital world.

The incident has once again raised people's attention and doubts about the integrity of blockchain and cryptocurrencies. On one hand, blockchain technology itself is decentralized and transparent, which helps to resist single-point attacks; but on the other hand, centralized components such as exchanges and wallets still face the risk of being attacked. The industry is calling for strengthened security measures, while also needing to improve relevant laws and regulations to create a favorable environment for the development of digital assets.

3. The U.S. Senate passes a stablecoin regulatory bill, setting the tone for the development of digital currencies.

After months of debate and revision, the U.S. Senate passed the highly anticipated "Responsible Digital Asset Innovation Act," abbreviated as the "GENIUS Act," on June 19 with a vote of 68 in favor and 31 against. The bill aims to establish a comprehensive regulatory framework for digital assets like stablecoins.

The main content of the GENIUS Act includes: requiring stablecoin issuers to undergo a comprehensive audit every two years and maintain sufficient reserve assets; prohibiting the issuance of algorithmic stablecoins; authorizing regulatory agencies to formulate relevant rules, etc. The act also sets regulatory standards for digital asset exchanges, wallets, and other service providers.

Analysts believe that the GENIUS Act establishes a basic framework for the regulation of digital assets in the United States, which is beneficial for maintaining market order and protecting investors' rights. However, there are also some controversies, such as the ban on algorithmic stablecoins which may hinder innovation. The bill still needs to be passed by the House of Representatives and signed by the President before it can take effect, and the future legislative process may lead to intense discussions again.

4. JD.com announced that it will support users to shop with stablecoins, as traditional e-commerce giants enter the competition of digital currency.

With the trend of integration between digital currency and traditional finance, JD Group has also joined the ranks of this competition. The CEO of JD Coin Chain recently stated that JD's global sale for Hong Kong and Macau will support users in making purchases using stablecoins.

This initiative is seen as an important step for JD.com to lay out its strategy in the digital currency and blockchain field. Analysts point out that as a traditional e-commerce giant, JD.com has a large user base and a mature payment system. If it can successfully integrate stablecoin payments, it will inject new momentum into the large-scale application of digital currencies.

At the same time, this move by JD reflects the optimism of tech giants about the prospects of stablecoins. With the regulatory environment gradually becoming clearer, stablecoins are expected to play a greater role in areas such as payments and settlements. However, JD also needs to pay close attention to compliance during the advancement process to ensure it meets relevant legal and regulatory requirements.

5. The French National Assembly rejected the proposal related to Bitcoin mining, making it difficult to incorporate into the national energy strategy in the short term.

On June 19, the French National Assembly rejected an amendment proposal regarding Bitcoin mining. The proposal suggested studying the possibility of using France's surplus electricity for Bitcoin mining to optimize the operation of the nuclear energy grid.

The proposal was rejected without discussion due to procedural issues, specifically based on Article 98 of the parliamentary procedural rules. If approved, France will become one of the few countries to incorporate Bitcoin mining into its national energy strategy, following El Salvador and Bhutan.

Analysts point out that similar proposals are unlikely to be submitted again in the short term, as Bitcoin mining is still considered an environmental threat in France. The proposal may have been rejected because it was deemed to contain content not directly related to the subject of the bill. Since the rejection only involved issues of the proposal's form, theoretically, a more concise amendment could be submitted in the future. However, because Bitcoin mining is still regarded as an environmental disaster in France, the likelihood of similar proposals being approved in the short term is low.

2. Industry News

1. The Federal Reserve maintains interest rates, leading to increased short-term volatility in the crypto market.

The Federal Reserve remained steady at its June meeting, keeping interest rates unchanged, in line with market expectations. Chairman Powell emphasized a "data-driven" approach and maintained caution regarding short-term easing expectations, which the market generally interpreted as a hawkish stance. As a result, risk assets came under pressure, gold prices rose, and the cryptocurrency market followed with a correction.

Ethereum is reported at $2,525, down about 0.5% in the last 48 hours; Cardano and Solana both fell over 2.5%, while meme coins like Dogecoin and $TRUMP also declined. Overall market risk appetite has decreased, and trading volume has shrunk.

Analysts point out that the Federal Reserve's cautious stance reflects concerns about inflation risks. Despite moderate economic data, geopolitical tensions and tariff uncertainties persist, which may drive up inflation expectations. Against this backdrop, the Federal Reserve is unlikely to relax monetary policy in the short term.

However, the market remains optimistic about the long-term prospects of cryptocurrencies. Renowned analysts believe that once inflationary pressures ease, the Federal Reserve will restart its easing cycle, and at that time, the crypto market is expected to welcome a new wave of upward momentum. Investors should closely monitor changes in the macroeconomic situation and respond cautiously to short-term fluctuations.

2. The activity on the Ethereum chain continues to rise, and the DeFi ecosystem is seeing a glimmer of hope.

Despite the recent pressure on the crypto market, the activity on the Ethereum chain continues to rise, and the DeFi ecosystem has seen the light of day. According to the data, the amount of Ethereum pledged exceeded 35 million, a record high. At the same time, the rapid rise of yielding stablecoins and DeFi lending platforms to provide higher yields could impact Ethereum's market share.

However, analysts believe that despite facing competition, Ethereum still maintains a core position in the DeFi space, as its infrastructure supports the development of emerging financial products. As upper-layer applications continue to enrich, the activity on the Ethereum chain is expected to further increase.

In addition, NFTs and metaverse projects on Ethereum have also attracted significant inflows. Data shows that in the past week, the Ethereum ecosystem NFT trading volume exceeded 100 million US dollars, accounting for more than 60% of the total trading volume. Analysts expect that as the concept of the metaverse continues to heat up, the Ethereum ecosystem is expected to continue to benefit.

Overall, despite facing short-term pullback pressure, the Ethereum ecosystem remains vibrant. Investors should closely monitor the development trends in hot areas such as DeFi and NFTs to seize potential investment opportunities.

3. Bitcoin mining difficulty hits a new high, continuous inflow of computing power raises supply concerns.

After the latest round of Bitcoin mining difficulty adjustment, the total network hash rate has reached a new high of 430.5 trillion. This means that it has become even more difficult for miners to obtain Bitcoin, and the cost of mining has increased.

Analysts point out that the main reason for the continuous influx of Bitcoin hash power is that miners remain optimistic about the future price trends of Bitcoin. As the price of Bitcoin stabilizes and rebounds, miners' profitability has improved, thus continuing to expand their hash power scale.

However, the continuous increase in computing power has also raised concerns in the market about the supply of Bitcoin. Data shows that the daily issuance of Bitcoin has exceeded 900 coins, far above the designed limit of 900 coins. If computing power continues to grow, the supply of Bitcoin will further expand, which may put pressure on the price.

On the other hand, some analysts believe that the growth in computing power reflects miners' confidence in the long-term prospects of Bitcoin. As more institutional investors and retail funds enter the market, Bitcoin demand is expected to continue growing, thereby supporting its price increase.

Overall, the continuous growth of Bitcoin's hash rate is a "double-edged sword," reflecting the optimism of miners while potentially exacerbating supply pressure. Investors need to closely monitor changes in supply and demand conditions and make prudent judgments about future trends.

4. The French Parliament rejected the proposal related to Bitcoin mining, casting a shadow over regulatory prospects.

The French National Assembly recently rejected a proposal to discuss the potential of using Bitcoin mining as a means to utilize surplus electricity. The proposal was dismissed for procedural reasons and did not advance to the substantive discussion stage.

Analysts point out that although the proposal only involves formal issues, theoretically a more concise amendment could be submitted in the future, the likelihood of approval in the short term is relatively low. The reason is that Bitcoin mining is still viewed as an environmental threat in France, which contradicts the country's climate goals.

The rejection of this proposal has intensified market concerns about the regulatory outlook for Bitcoin. On one hand, major European economies are taking a cautious approach to Bitcoin mining, which may lead to stricter regulatory measures; on the other hand, regulatory uncertainty may also undermine investor confidence and suppress Bitcoin price increases.

However, some analysts hold an optimistic view on this. They believe that as regulations become clearer, Bitcoin as a new type of asset will gain broader recognition. At that time, institutional funds are expected to flow in large amounts, thereby driving up the price of Bitcoin.

Overall, regulatory issues are a major challenge on the path of Bitcoin's development. Investors need to closely monitor the regulatory trends of major global economies, prudently assess potential risks, and also pay attention to changes in institutional recognition to seize potential investment opportunities.

5. The probability of cryptocurrency ETFs surges, institutional funds continue to flow in.

Recently, several institutions have released reports stating that the probability of cryptocurrency ETFs being approved has significantly increased. Among them, Grayscale Asset Management expects that its XRP trust has a 76% chance of converting to an ETF within 240 days; the Ripple ETF is also expected to be approved after the SEC meeting in August.

Analysts say that the approval of cryptocurrency ETFs will help attract more institutional funds into the market. Compared to direct investment in cryptocurrencies, the ETF structure is more standardized and transparent, which helps lower investment barriers and operational costs, thereby increasing the participation of institutional investors.

Data shows that since the beginning of this year, cryptocurrency ETFs have continuously experienced net inflows, with a cumulative inflow scale exceeding 11.2 billion USD. Among them, Bitcoin ETFs have been the most significant in attracting funds, accounting for over 80% of the total inflow.

At the same time, cryptocurrency concept stocks continue to strengthen. Companies like Circle and Coinbase have seen significant increases in their stock prices, reflecting institutional optimism about the future of cryptocurrency.

However, some analysts are cautious about the prospects of cryptocurrency ETF approvals. They believe that regulators may express concerns about the lack of transparency in the cryptocurrency market and the risks of manipulation, which could delay the ETF approval process.

Overall, the approval of a crypto ETF will be an important milestone in the development of the industry. Investors should pay close attention to regulatory developments, and at the same time, carefully assess the potential risks and returns of ETFs, and formulate reasonable investment strategies.

3. Project News

1. Sui Network: Move ecological new star accelerates rise

Sui Network is a layer one blockchain built on the new blockchain core Sui, developed by Mysten Labs. Sui uses the Move programming language and aims to provide a high throughput and low latency on-chain experience.

Latest update: During the TOKEN2049 conference, the Sui ecosystem experienced explosive growth. The price of Sui tokens surged over 100%, attracting widespread attention from the market. Additionally, the Sui ecosystem has also drawn numerous projects from the Solana ecosystem, such as Solend launching the Suilend project on Sui. The Sui ecosystem is rapidly expanding, with new projects continuously emerging.

Market Impact: The rise of Sui marks the emergence of the Move ecosystem. As an emerging programming language, Move features high parallelism and resource security, promising to enhance blockchain performance. The success of Sui will attract more attention and funding to the Move ecosystem, likely fostering more innovative projects.

Industry Feedback: Analysts believe that while the Sui ecosystem has broad prospects, it is still in its early stages. Currently, the number of Sui ecosystem projects is limited, and truly killer applications are yet to come. However, Sui's technological advantages and ecosystem activity have gained wide recognition in the industry. In the future, Sui is expected to become the leader of the Move ecosystem.

2. Aptos: The new generation Move public chain continues to gain momentum

Aptos is a layer one blockchain founded by former Meta employees, built using the Move programming language. Aptos focuses on high performance and scalability, aiming to become the next generation blockchain infrastructure.

Latest Updates: Aptos has recently released the latest version of the Aptos Node software, enhancing network performance and security. At the same time, the Aptos ecosystem continues to expand, with new projects emerging one after another. It is worth mentioning that the Aptos Foundation is actively promoting ecosystem development, providing support and funding for developers.

Market Impact: As an important representative of the Move ecosystem, the development of Aptos will directly affect the future of the Move ecosystem. Aptos's technological innovations and ecosystem development are expected to drive the Move ecosystem towards maturity, attracting more developers and funding. At the same time, Aptos will also bring new possibilities for improving blockchain performance.

Industry feedback: Industry insiders are generally optimistic about the long-term prospects of Aptos. The Aptos team has rich industry experience and technical strength, and is expected to create a truly high-performance public chain. However, Aptos also faces a fierce competitive environment and needs to continue innovating to maintain its leading position.

3. Movement: Move the last opportunity for ecology

Movement is an emerging public chain project based on the Move language, founded by core developers of the Diem project. Movement aims to create a high-performance, scalable blockchain infrastructure.

Latest Update: Movement is currently still in the development stage and has not officially launched yet. However, Movement has already attracted a lot of attention and investment. The Movement team is working hard to accelerate the development process and aims to launch the mainnet as soon as possible.

Market Impact: As the last heavyweight project in the Move ecosystem, the performance of Movement will directly affect the future direction of the Move ecosystem. If Movement can achieve success, it will bring new vitality and development momentum to the Move ecosystem. Conversely, the prospects of the Move ecosystem will also be severely impacted.

Industry Feedback: There are differences of opinion among industry insiders regarding Movement. Optimists believe that the technical strength and experience of the Movement team are its greatest advantages. However, some are concerned that Movement may have already missed the best opportunity. Overall, Movement is seen as the last chance for the Move ecosystem.

Overall, the three major projects Sui, Aptos, and Movement are leading the acceleration of the Move ecosystem. The future of the Move ecosystem will depend on the performance of these three projects. Regardless of success or failure, the Move ecosystem will have a profound impact on the blockchain industry.

4. Regulation & Policy

1. The UK has released new regulations for crypto assets, and the regulatory framework is undergoing a systematic upgrade.

The UK Treasury released a draft of new regulations for crypto assets on April 29, formally incorporating activities such as operating crypto trading platforms, issuing stablecoins, custody, staking, market making, and matching trades into the regulatory framework of the Financial Services and Markets Act 2000, requiring compliance with standards for transparency, consumer protection, and operational stability.

The release of this draft indicates that the UK authorities aim to balance the relationship between fintech innovation and consumer protection, promoting a qualitative change in the regulation of crypto assets from fragmented rules to a systematic framework. The new regulations are based on the Financial Services and Markets Act 2000, incorporating crypto asset activities into the existing regulatory framework, with the aim of creating an orderly environment for industry development.

UK Chancellor of the Exchequer Reeves stated: "Through our adjustment plan, we are making the UK the best place in the world for innovation and the safest place for consumers." Industry insiders generally believe that this move will provide greater regulatory certainty for cryptocurrency companies, which will help attract domestic and foreign investors and innovative enterprises to conduct business in the UK.

However, experts also remind that the new regulations impose higher compliance requirements on industry participants, which may increase operational costs. Ian Taylor, director of the UK Crypto Assets Regulatory Office, stated that regulatory agencies will closely monitor industry developments while allowing space for innovation to protect consumers.

2. South Korean regulators will investigate trading fees to explore potential measures for fee reduction.

On June 19, South Korea's "The Pioneer Economy" reported that the Financial Services Commission (FSC) will launch an investigation into the fee collection practices of local trading platforms and study possible intervention measures.

This move is part of the overall pro-crypto policy of South Korea's new president, Lee Jae-myung. According to reports, Lee Jae-myung promised to reduce cryptocurrency trading fees to support young investors during his presidential campaign. The FSC plans to conduct a comprehensive assessment of the current fee structures, charging methods, and amounts charged by various trading platforms.

Industry insiders believe that this investigation aims to understand the fee structures of exchanges in preparation for potential regulatory intervention in the future. Some exchanges have expressed willingness to cooperate with the investigation, but are cautious about direct government intervention in their fees.

The president of the Korean Cryptocurrency Investors Association, Kim Tae-hoon, stated that reasonable trading fees are beneficial for attracting investors, but excessive intervention may affect the development of the industry. He suggested that the government maintain communication with the industry to protect investors' rights while leaving room for industry innovation.

3. Nauru has established a dedicated regulatory body for virtual assets through legislation.

The Pacific island nation of Nauru has legislated the establishment of the "Command Ridge Virtual Asset Management Bureau" ( CRVAA ), specifically to regulate cryptocurrencies, digital banking, and We innovation fields, aiming to become a cryptocurrency hub.

The agency will be responsible for the registration and service licensing of cryptocurrency businesses, promoting economic diversification and resilience. According to the bill, cryptocurrencies are defined as commodities rather than securities, and payment tokens are excluded from investment contracts.

The Nauru government stated that the bill aims to create a favorable environment for the digital asset industry, attracting domestic and foreign investment and promoting innovation. Nauru President Lionel Aingimea believes that cryptocurrencies have great potential to bring new development opportunities to small island economies.

Industry insiders have welcomed this policy. The founder of the cryptocurrency exchange stated a willingness to cooperate with Nauru to help it become a cryptocurrency hub. However, some analysts have also warned that Nauru needs to establish a sound regulatory framework to prevent risks such as money laundering.

4. People's Court Daily: Virtual currencies have corresponding property attributes, and if related to refunds, it is possible to explore converting to fiat currency through compliant licensed trading platforms.

The People's Court Daily published an article signed by Zhao Liang from the Guangdong Provincial Intermediate People's Court titled "Dealing with Virtual Currency in Criminal Cases: Challenges, Innovations, and Judicial Responsibility," which points out that virtual currency has corresponding property attributes and a basic consensus has formed in judicial practice.

For the need to compensate the victims for their losses or to confiscate funds, the article suggests exploring the possibility of registering and supervising with departments such as the People's Bank of China and foreign exchange management, entrusting qualified third-party institutions in jurisdictions where virtual currency trading is legal, such as Hong Kong, to exchange virtual currencies for legal tender at market prices through compliant licensed trading platforms. After cashing out abroad, the process should be handled in accordance with the relevant regulations of the State Administration of Foreign Exchange. For virtual currencies that are used for criminal activities and pose a threat to national security and public interests, such as privacy coins, they may be sent to a "black hole address" for destruction, permanently removing them from circulation.

This article reflects the recognition of the property attributes of virtual currencies in judicial practice and provides a feasible path for handling the virtual currencies involved in the case. Industry insiders believe that this is beneficial for standardizing the application of virtual currencies in the judicial field and provides guidance for the handling of related cases.

However, some legal experts remind us that the legal status of virtual currencies is still to be clarified, and it is recommended to introduce relevant laws and regulations as soon as possible to provide a basis for their application in civil and criminal fields.