Weekly Report | Federal Reserve Chairman Powell: Supports establishing a regulatory framework around stablecoins; Zhao Changpeng: Will not personally

Organizer: Luan Peng, ChainCatcher

"What Important Events Happened This Week (2.10-2.16)"

1、 Jupiter Co-Founder: Issuance Method Similar to CAR Tokens is Extremely Detrimental to Industry Development

Jupiter co-founder meow commented on the CAR token issuance, stating, "We need to launch major tokens in a better way; the current 'fog of war' state is extremely detrimental to the development of the entire industry."

Meow added that they have contacted the Central African Republic (CAR) government office to further confirm the authenticity of the CAR token and will provide real-time updates on relevant information.

Meow emphasized that the team has temporarily verified the CAR token to prevent users from purchasing the wrong token, but there are still many unknown factors, including the source of the token and the lock-up situation, reminding investors to be aware of the risks.

2、 Federal Reserve Chairman Powell: Supports Establishing a Regulatory Framework Around Stablecoins

According to Jinshi, Federal Reserve Chairman Powell stated that he supports establishing a regulatory framework around stablecoins.

3、 U.S. SEC Has Accepted Spot ETF Applications for Solana from 21Shares, Bitwise, Canary, and VanEck

Multiple institutions have submitted applications for a Solana spot exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC), which has confirmed receipt and acceptance of the relevant documents.

Cboe BZX Exchange submitted a proposed rule change form to support the listing and trading of Solana spot ETFs issued by 21Shares, Bitwise, Canary Capital, and VanEck. Previously, the Solana ETF applications from these companies had been rejected.

Bloomberg ETF analysts James Seyffart and Eric Balchunas stated on Monday that they believe there is a 70% chance that the SEC will approve the Solana ETF. Franklin Templeton also seems ready to join the competition for the Solana ETF, as the company submitted documents in Delaware on Tuesday to register the Franklin Solana Trust.

4、 World Liberty Financial Launches Macro Strategy to Support Bitcoin, Ethereum, and Other Crypto Assets

According to an official announcement from WLFI, World Liberty Financial (WLFI) announced the launch of the Macro Strategy strategic reserve fund, aimed at supporting leading crypto assets like Bitcoin and Ethereum, and enhancing market stability. This strategy will be used to diversify investments, reduce market volatility, promote the development of the DeFi ecosystem, and strengthen community trust.

WLFI is establishing strategic partnerships with traditional financial institutions to promote the inclusion of tokenized assets in reserves and enhance transparency through public blockchain wallets. Additionally, WLFI plans to conduct joint marketing and branding efforts to expand the influence of partner institutions. A complete proposal will be published in the governance forum, where community members can participate in discussions and provide feedback.

5、 Jiangsu High Court: Overseas Virtual Currency Investments Are Not Protected by Chinese Law

According to the Jiangsu High Court's official WeChat account, the Jiangsu High Court released typical cases involving foreign commercial trials, stating that overseas virtual currency investments are not protected by Chinese law. In the relevant case, Singapore citizen Pan and Chinese citizen Tian signed a cooperation agreement with an outsider to jointly operate the "MFA Blockchain" project. Pan transferred 15.74 million yuan to Tian for purchasing MFA virtual currency, but later the virtual account involved was locked, resulting in the total loss of the principal. Pan filed a lawsuit in court.

The Jiangsu High Court's second-instance ruling stated that Pan, as a Singapore citizen, had foreign-related factors in this case. According to China's law application law, issues involving China's financial security and social public interests should directly apply the mandatory provisions of Chinese laws and regulations, which prohibit virtual currency investments. The parties in this case signed a contract to speculate on overseas virtual currencies, violating the mandatory provisions in China's financial regulatory field, and thus their claims for investment losses are not protected by law, with any resulting losses borne by the parties themselves.

6、 Federal Reserve Chairman Powell: Many Cryptocurrency-Related Activities Can Be Conducted at Banks

Federal Reserve Chairman Powell stated that many cryptocurrency-related activities can be conducted at banks. (Jinshi)

7、 Binance Alpha Adds ONDO, MORPHO, AERO, VIRTUAL

According to the official page, Binance Alpha has added ONDO, MORPHO, AERO, and VIRTUAL.

8、 Ethereum Foundation: Future Treasury Funds Will Explore More Possibilities Such as ETH Staking

The Ethereum Foundation officially stated that it has deployed 10,000 ETH to Spark, 10,000 ETH to Aave Prime, 20,800 ETH to Aave Core, and 4,200 ETH to Compound. More content is expected in the future, including exploring staking.

9、 Stablecoin Company Plasma Completes $24 Million Financing, Led by Framework Ventures

According to Fortune, stablecoin company Plasma has completed $24 million in financing, led by Framework Ventures, with participation from cryptocurrency exchange Bitfinex, renowned venture capitalist Peter Thiel, and Tether CEO Paolo Ardoino.

Plasma plans to launch its own blockchain in the coming months. Plasma co-founder Paul Faecks stated that the project is developed based on the Bitcoin blockchain, using a unique consensus mechanism, focusing on optimizing stablecoin trading efficiency, and will support DeFi protocols such as Curve, Ethena, and Aave.

According to RootData , Plasma is a scalable payment and financial infrastructure on Bitcoin. Plasma is built on a native UTXO basis, allowing gas fees to be paid in BTC and seamlessly collaborating with existing Bitcoin infrastructure. By utilizing a hybrid UTXO/account architecture, users can unlock new features for holding, staking, and deploying their Bitcoin.

10、 Zhao Changpeng Shares Photos of His Pet Dog Broccoli and Their Story

Binance founder Zhao Changpeng (CZ) shared photos of his pet dog Broccoli and their story on X.

Zhao stated that he will not personally issue meme coins and may interact with some popular meme coins on the BNB Chain (BSC). The BNB Foundation may provide rewards for top memes on the BNB chain.

11、 Zhao Changpeng: Will Not Personally Issue Meme Coins; It Depends on the Community

Binance founder Zhao Changpeng (CZ) stated on the X platform, "I just posted a photo and the name of my dog. I will not personally issue meme coins. It depends on the community whether they do so. I may interact with some popular meme coins on the BNB Chain (BSC). The BNB Foundation may provide rewards for top memes on the BNB chain, offering LP support or other rewards. Details are still under discussion. More content will be released soon."

12、 U.S. SEC Has Confirmed Acceptance of DOGE ETF Application

The U.S. Securities and Exchange Commission (SEC) has confirmed acceptance of the 19b-4 application submitted by Grayscale and the New York Stock Exchange to establish a DOGE ETF.

13、 Musk Changes X Profile to "Volunteer Tech Support"

Musk changed his profile description to "Volunteer Tech Support."

14、 Binance Will Include Token Unlocking Plans in Information Regarding Market Capitalization and Circulating Supply

According to an official announcement, starting February 14, 2025, Binance will update its method of providing token information to include token unlocking plans in information regarding market capitalization and circulating supply.

The new method will collaborate with listed projects to provide necessary details about their token unlocking plans. The new method will include unlocked tokens in the market capitalization calculation. Unlocked tokens will have their token unlocking plans available for viewing.

Through this update, users can now view the token unlocking plans and their details for each project through links provided in the project overview section on the Binance website and Binance app.

• Market Capitalization: Calculated by multiplying circulating supply by the current price. This includes unlocked tokens. If data on unlocked tokens is unavailable, non-publicly accessible tokens will be excluded.
• Circulating Supply: Tokens available for trading will include unlocked tokens. If data on unlocked tokens is unavailable, non-publicly accessible tokens will be excluded.

15、 BNBChain Ecosystem Development Head Li Wei Has Left This Week

According to Wu Shuo, BNBChain ecosystem development head Li Wei has left BNBChain this week. Li joined BNBChain in August 2024 and left OKX in July 2024.

16、 Binance Launches BNSOL Super Stake Phase Six Project Pepe (PEPE)

Binance announced a collaboration with Pepe (PEPE) to launch the BNSOL Super Stake Phase Six project. From 08:00 on February 17, 2025, to 07:59 on March 17, 2025, users holding BNSOL in their Binance accounts and wallets, or staking SOL to BNSOL, will receive PEPE APR Boost airdrop rewards.

PEPE APR Boost airdrop rewards will be available for collection starting February 18, 2025, around 13:30 (UTC+8).

17、 Zhao Changpeng: Cannot Tweet Anymore; Tweets Are Always Over-Interpreted
Zhao Changpeng posted on the X platform, stating, "I can no longer tweet; people always over-interpret my tweets, and anything I casually mention gets attached with some extra meaning."

18、 Vitalik: Even in L2-Dominated Ethereum, L1 Gas Limits Need to Be Increased

Ethereum co-founder Vitalik Buterin published a new article titled "Reasons to Increase L1 Gas Limits Even in L2-Dominated Ethereum." The article states that an important recent discussion in the Ethereum roadmap is about how to increase the L1 gas limit.

Recently, the L1 gas limit was increased from 30 million to 36 million, a 20% increase in capacity. Many support a further significant increase in the near future. These increases are considered safe due to recent and upcoming technological improvements: enhanced efficiency of Ethereum clients, reduced need for storing old history due to EIP-4444 (see roadmap), and future stateless clients.

However, before we go down this path, it is important to ask one question: In the context of a Rollup-centric roadmap, is it correct to increase the L1 gas limit in the long run? We do not want to face the centralization risks brought by high L1 usage without truly determining that we will benefit from it.

19、 Argentina Official Statement: President Javier Milei Will Immediately Transfer LIBRA-Related Matters to the Anti-Corruption Office and Commit to Thorough Investigation Until the Truth is Revealed

According to the Argentine presidential office report: "On October 19, 2024, President Javier Milei held a meeting in Argentina with representatives of KIP Protocol. During this meeting, the company representatives introduced their intention to develop a project named 'Viva la Libertad' (Long Live Freedom), which aims to use blockchain technology to provide financing for private enterprises in Argentina.

This meeting has been officially recorded in the public hearing registry, with participants including the national president, KIP Protocol representatives Mauricio Novelli and Julian Peh, and presidential spokesperson Manuel Adorni.

In this context, on January 30, 2025, the president met with Hayden Mark Davis at the Casa Rosada presidential palace. According to the introduction from KIP Protocol representatives, Mr. Davis will provide technical infrastructure for the project. Mr. Davis has had no prior association with the Argentine government and has established no relationship; he was introduced as a project partner by KIP Protocol representatives.

Finally, yesterday, the president posted a message on his personal social media account announcing the launch of the KIP Protocol project, similar to his routine support for many entrepreneurs hoping to launch projects in Argentina to create jobs and attract investment. Due to the widespread attention generated by the launch of this project, to avoid any speculation and reduce further dissemination, the president decided to delete this post.

In light of the above, President Javier Milei has decided to immediately transfer this matter to the Anti-Corruption Office (OA) to determine whether there has been any misconduct by any national government member, including the president himself, in this incident.

Additionally, the national president has decided to establish an investigative task force (UTI) under the presidential office, composed of representatives from institutions and departments related to crypto assets, financial activities, money laundering, etc., to integrate relevant information for an urgent investigation into the issuance of cryptocurrency LIBRA and all related enterprises or individuals.

All information collected during the investigation will be handed over to the judicial authorities to determine whether any enterprises or individuals related to the KIP Protocol project are suspected of criminal activity.

President Milei has demonstrated his pursuit of truth through practical actions and has committed to thoroughly investigating this incident until the truth is revealed."

20、 Brazil Central Bank President: Rapid Growth of Stablecoins Related to Tax Evasion and Money Laundering, May Ban Individual Holdings

According to Bitcoin.com, Brazil's new central bank president Gabriel Galipolo stated that over 90% of cryptocurrency usage in the country involves stablecoin transactions. The central bank's analysis found that stablecoins are mainly used for cross-border payments and pose risks of tax evasion and money laundering.

Galipolo pointed out that the central bank initially believed the popularity of stablecoins was due to their convenience for the public to hold dollars. However, upon further investigation, it was found that a large number of stablecoin transactions were related to cross-border shopping, and the transaction methods were opaque, potentially being used for tax evasion or money laundering activities. He also criticized some citizens' pursuit of privacy, believing it is often associated with illegal activities.

Galipolo revealed that the Brazilian central bank proposed new regulations last December, intending to link stablecoin regulation with foreign currency regulation, which may ban individuals from holding stablecoins. If this regulation is ultimately passed, it will restrict Brazilian users from participating in decentralized finance (DeFi) activities, as most DeFi platforms require users to manage their funds independently.

"What Interesting Articles Are Worth Reading This Week (2.10-2.16)"

1、 2025 Crypto Outlook------What Major Investment Institutions Have to Say (Part II)

As the new year begins, the global investment environment continues to change, with various emerging technologies and market trends constantly emerging. In this context, how investors formulate long-term strategies and assess and select investment projects has become a widely discussed topic within and outside the crypto industry.

To this end, RootData, in collaboration with ChainCatcher, hosted this interview. In the previous issue, we invited investment institutions including OKX Ventures and Bixin Ventures to provide constructive responses. This issue features invited investment institutions such as IOSG Ventures, Bing Ventures, Waterdrip Capital, and others, who engage in in-depth discussions on investment trends and suggestions for 2025.

2、 "Qing Dynasty Remnants" Are Crowding to Issue Coins; Are They Offering "Rejuvenation Pills" or "New Scythes"?

While the crypto community is in despair, many "Qing Dynasty remnants" born in the last two cycles are announcing coin issuances one after another.

Last night, OpenSea announced the launch of the $SEA token, followed by Doodles announcing the launch of the $DOOD token on Solana. This follows the trend of other NFT leaders like Fat Penguins and Azuki joining the coin issuance frenzy.

Not only in the NFT space, but privacy projects that were also popular in the last cycle but have almost disappeared in 2024 seem to be seeking survival through coin issuance. Last night, the Ethereum privacy layer Aztec Network, backed by investment giants like a16z and Paradigm, also established a foundation, possibly preparing for an upcoming TGE.

3、 Airdrop Conditions Are Harsh, Secondary Valuation Is Inverted; Does Story Protocol Still Have Hope?

As a crypto project that has been led by a16z in three consecutive rounds and was once valued at $2.25 billion, Story Protocol's recent performance has shocked community users.

On February 13, Story Protocol finally revealed the details of its highly anticipated airdrop plan; however, contrary to the expected generous rewards, this airdrop plan has sparked considerable controversy and dissatisfaction. Many studios and investors have expressed that the conditions for this airdrop are overly harsh, with three lines of defense just for witches, and the amount of airdropped tokens is far below expectations, leading to accusations of "reverse harvesting."

To make matters worse, on the same day, the Story Protocol token (IP) officially launched its TGE and was listed on exchanges like CoinBase, Bithumb, and MEXC. The market performance of the token after its launch was also shocking, with the price dropping from an opening of $2.3 to a low of $1.7, creating an inverted valuation phenomenon in the secondary market.

This series of events has undoubtedly dealt a heavy blow to the community users of Story Protocol. Many users have expressed that their disappointment with the project's performance in the airdrop plan and TGE is hard to articulate, and they have even begun to question the project's long-term development prospects, with some users publicly defending their rights in the official Story Protocol community.

4、 The Meme Annual Farce Triggered by CZ's Pet Dog Ends with a Chorus of Criticism

In the early hours of Beijing time, after repeatedly teasing the audience, Zhao Changpeng finally released photos of his pet dog Broccoli and their story. The highly anticipated P players and orchestrators were already on high alert, but including Zhao Changpeng and BNBChain, no one expected that a small picture of a pet dog would trigger a large-scale meme battle and a "slaughter" of retail investors.

5、 TST Incident Review: From Community Celebration to Binance Controversy, A Microcosm of the Crypto Market

Recently, influenced by macro policies, the cryptocurrency market has generally continued to fluctuate and show a downward trend. As the meme craze gradually recedes, many meme-related tokens have also cooled down. However, the meme coin TST on the BNB Chain unexpectedly experienced explosive growth, attracting widespread attention.

From being obscure to a market capitalization soaring to hundreds of millions, TST's rise not only caught the market's eye but also sparked intense discussions about Binance's listing logic.

This article will review the ins and outs of the TST incident, exploring the market logic and controversies behind it. From the initial test token to its listing on Binance's spot trading, every step of TST has been dramatic. Under Binance's "light-speed listing" operation, TST's market capitalization surged from $500,000 to $500 million, an increase of over 100 times. However, the subsequent crash after the listing caused significant losses for many investors, raising questions about Binance's listing process.

Next, we will analyze TST's birth, explosion, and controversy one by one.

6、 Behind KOL Competition: Is the Kaito Yap Model Really Sustainable?

Have you noticed that many KOLs you follow on X have started to Yap recently? What are they all Yapping about?

Yaps is a points system launched by Kaito, an AI-driven crypto data analysis and social incentive platform, where X users can earn Yap points by posting high-quality crypto content (tweets, interactions). Recently, the bear chain (Berachain) airdropped to Yappers, and today Kaito announced that it would open ANIME token claims to the first 1,000 ANIME (Anime token under Azuki) Yappers and Kaito Genesis NFT holders. Coupled with collaborations from multiple projects like Story Protocol, Movement Labs, and MegaETH, the expectation that "projects on Yap Kaito can receive airdrops" has once again heightened Kaito's popularity.

Similar to the trajectory of previous Web3 social flywheels, KOLs and influential figures with existing influence thrive in the Yaps points system, eagerly outputting articles on X and forming matrices with other ICT (Inner Crypto Twitter). The benefit is that discussions about crypto and outputs of popular projects have increased, but foreseeable downsides are also gradually emerging, such as the proliferation of low-quality content, excessive interactions causing harassment for KOLs, and deeper issues like influence monopolization. Kaito has recently announced the upcoming launch of shadow banning to improve the current chaos through technical means. However, controversies and doubts continue.

In 2024, fundamental analysis in the crypto field faces a complete collapse, and the current market increasingly validates the saying "Attention in crypto is everything." If memes are a result of the attention economy, then Kaito is more like an upstream business of the attention economy, focusing on how to manage and allocate attention. But the essence of the attention economy is that the next better thing will always come. As a product of this era, can Kaito overcome short-term behavior and become a sustainable product with practical utility?

This article will provide a detailed analysis of Kaito, as there are currently many (inflated) articles about Kaito on X due to Yap's existence, but I still recommend you read this article.

7、 Interview with EdgeX Founder Davy: How Can Decentralized Edge Computing Networks Promote AI Agent Popularization?

EdgeX has received support from two well-known Web3 capital firms and is expected to announce specific financing details in Q2 or Q3.

8、 Arthur Hayes: The Future of Political Memecoins

Over the past century, with advancements in communication technology, the essential skills politicians need to attract the public have changed. To illustrate my point, I would like to quickly review the history of U.S. presidents, focusing on key advancements in communication technology.

9、 "BSC System" Dominates the Growth Charts; Can CZ's Energy Propel the BNBChain Ecosystem to New Heights?

As the founder and largest shareholder of Binance, CZ's every word and action can influence market sentiment and trends. Recently, CZ has been actively promoting BNB Chain on Twitter, emphasizing the technical advantages and ecological potential of BNB Chain while sketching out a development blueprint for 2025, attracting widespread market attention. Under CZ's push, BNB Chain ecosystem tokens have experienced a broad rally, reaching new highs for the year.

Every statement from CZ acts like a "deep-water bomb," creating ripples in the crypto market. From his bold claim that "BNB Chain has been shackled for too long; it's time to break free" to his changing attitude towards meme coins, CZ's return undoubtedly injects a strong dose of confidence into BNB Chain. However, whether this ecological boom triggered by the "CZ effect" is a fleeting moment or the starting point for BNB Chain's return to its peak remains to be seen.

10、 Two Major Regulatory Agency Heads Are "Insiders"; Has a New Era of Crypto Regulation Begun?

Since Trump officially took office in the White House, favorable policies have frequently emerged. Recently, Trump nominated former Bitfury Chief Legal Officer Jonathan Gould to serve as the head of the Office of the Comptroller of the Currency (OCC), responsible for regulating the national banking system. This nomination was submitted to the Senate on February 11 for a five-year term.

Additionally, he nominated a16z policy head Brian Quintenz as the chair of the Commodity Futures Trading Commission.

The influence of the OCC cannot be underestimated; it is one of the most influential banking regulatory agencies in the U.S. The banks regulated by the OCC control a significant portion of the U.S. banking industry's assets, including major banks like Citibank, JPMorgan Chase, and Bank of America. Given the core position of the U.S. banking system in the global financial market, OCC policies will affect international interbank transactions, the U.S. dollar clearing system, and global financial stability. In recent years, the OCC has allowed national banks to provide crypto custody services and explored the integration of stablecoins with the banking system, which has profound implications for the compliant development of the crypto industry.

Kristin Smith, CEO of the crypto industry advocacy organization Blockchain Association, stated that Gould is an excellent candidate for the head of the OCC, as his experience in the crypto industry enables him to effectively lead the agency. Avichal Garg, co-founder of Electric Capital, also stated that Gould's nomination is a very positive development for fintech and cryptocurrency founders seeking better financial services.

So who exactly is Gould to receive such high praise?