11.6 AI Daily Artificial Intelligence and Crypto Assets Become the Focus: Balancing Regulation with Innovation Development

1. Headline

1. OpenAI CFO warns of AI bubble risks: calls for maintaining rational enthusiasm

OpenAI Chief Financial Officer Sarah Friar stated today that the market is overly concerned about a potential bubble in the artificial intelligence sector and should instead show more “enthusiasm” for the potential of AI technology. She believes that people's enthusiasm for AI is still insufficient, and that “we should continue to work hard to promote the development of AI.”

Friar explained that current AI has profoundly impacted personal lives and will lead to a significant increase in productivity in the future. However, at the same time, AI may also pose a threat to a large number of white-collar jobs. She cited recent layoff plans announced by companies like Amazon and Nestlé as a reflection of AI replacing human labor.

Analysts point out that Friar's remarks aim to alleviate investors' concerns about the AI bubble and attract more funds to invest in the AI sector. However, there are also viewpoints that suggest that OpenAI, as one of the pioneers in AI, has not fully dispelled the market's doubts about the AI bubble. After all, AI companies have motives to exaggerate in pursuit of funding and valuations.

Overall, AI is triggering a new round of technological revolution, with broad development prospects but also facing many uncertainties. Investors need to maintain rational enthusiasm, carefully assess the real strength of AI companies, and avoid blindly chasing hype that could lead to a bubble burst.

2. The U.S. Supreme Court's tariff case draws attention: It may rewrite the global trade landscape

The U.S. Supreme Court is hearing a case regarding the Trump administration's invocation of the “Emergency Economic Powers Act” to impose tariffs, with several conservative justices questioning the government's claims, indicating that the judiciary may be preparing to limit the president's trade authority.

The White House and the Treasury Department are optimistic about the results, but the business community is prepared for the worst-case scenario, worried that uncertainty may last for at least a few more months. Analysts point out that even if the court rules unfavorably, Trump can still use other legal provisions to maintain tariff pressure, meaning that trade tensions are unlikely to ease.

If the current tariffs are overturned, the effective tariff rate in the United States will fall back to 6.5%, reducing the drag on GDP to 0.6%, but the issues of tax rebates and fiscal deficits are bound to worsen. Both the Atlantic Council and the New America Foundation have warned that this move will not only weaken the core of the U.S. international economic agenda but may also reshape the major trade patterns between the U.S. and Europe as well as the Asia-Pacific.

Analysis suggests that judicial risks are permeating macro liquidity expectations, with the dollar strengthening in the short term and safe-haven assets being supported. Bitcoin is consolidating in a high volatility range; if the ruling weakens administrative intervention capabilities, the market may enter a structural re-evaluation cycle, and funds will reassess policy risks and the value of risk assets.

3. YouTube's new policy raises concerns in the crypto community: clarification states that related content is not banned.

YouTube recently stated that it will expand its ban on online gambling content, prohibiting creators from directing audiences to websites that offer “items of monetary value” ( such as game skins, decorations, and NFTs ). This policy will take effect on November 17.

This announcement sparked a strong reaction in the crypto community, with many creators worried that it would lead to a complete ban by YouTube on crypto content (, especially in the crypto gaming category ). However, a YouTube spokesperson later confirmed that this is not the case.

The company stated, “The content that showcases skins or decorative items obtained by creators in the game, or general discussions about items with real monetary value such as NFTs, will not be affected by this update.”

Analysts point out that YouTube's new policy aims to crack down on online gambling sites, but the wording is too vague, leading to misunderstandings within the crypto community. YouTube's clarification helps alleviate industry concerns, but it also reflects a lack of in-depth understanding of the crypto space among regulators when formulating related policies.

In the future, regulatory authorities need to maintain positive communication with the industry, formulate clear and reasonable regulatory measures, and avoid excessive constraints that affect innovative development. At the same time, cryptocurrency companies should also actively cooperate with regulation to jointly promote the orderly development of the industry.

4. Coinbase urges the Treasury Department to follow Congress's original intent: avoid excessive regulation that stifles innovation.

Coinbase submitted feedback to the U.S. Treasury, urging it to strictly adhere to the original intent of Congress when formulating the implementation rules for the “GENIUS Act”, to avoid excessive regulation, and especially to exclude non-financial software, blockchain validators, and open-source protocols.

Coinbase's Chief Policy Officer pointed out that regulations should not view third-party reward programs as “interest” to avoid contradicting the spirit of the legislation. Coinbase also suggested treating payment stablecoins as cash equivalents for related tax and accounting issues.

Analysts believe that Coinbase's move aims to ensure the reasonableness of the stablecoin regulatory framework and avoid excessive regulation that stifles industry innovation. The “GENIUS Act” establishes the federal stablecoin regulatory framework in the United States, which is crucial for the development of stablecoins.

However, there is uncertainty in the specific implementation details of the bill, and balancing regulation with innovative development is a major challenge. Overregulation may limit the development space of the industry, while a lack of regulation could lead to systemic risks.

Analysis points out that the Ministry of Finance should widely gather opinions from the industry when formulating detailed rules, fully considering the current state of industry development, and providing enough room for innovation under the premise of controllable risks. At the same time, industry enterprises should actively cooperate with supervision to jointly promote the long-term healthy development of the industry.

5. Circle's updated terms allow USDC to purchase firearms: sparking controversy in the crypto community

Stablecoin issuer Circle updates its terms of service to allow the use of USDC to purchase legal firearms, a policy that had previously faced criticism from the U.S. gun industry and Republican lawmakers for allegedly “discriminating against legitimate business activities.”

Circle confirmed to the National Shooting Sports Foundation that USDC can be used for “legitimate transactions of firearms protected by the Second Amendment,” and stated that it will not refuse such transactions in the future. Senator Bill Hagerty called the update a victory against the “weaponization” of the financial system.

However, the CTO of the blockchain company warned that the incident exposed the issue of centralized stablecoins being vulnerable to political pressure. There is a division in the crypto community, with one side believing that Circle, as a private company, has the right to determine the scope of its services, while the other side is concerned about the excessive power of centralized institutions.

Analysts point out that Circle's move aims to alleviate pressure on the firearms industry, but it has also raised questions in the crypto community about the power of centralized institutions. As a key infrastructure for crypto payments, the neutrality and level of decentralization of stablecoins will directly impact the development of the entire ecosystem.

In the future, stablecoin issuers will need to seek a balance between regulatory and community pressures, while also advancing the decentralization process, increasing transparency, and gaining the trust of the community. At the same time, the crypto community should remain rational and avoid over-politicizing a single event.

2. Industry News

1. Bitcoin is under short-term pressure, but the long-term outlook remains bullish.

The price of Bitcoin has fallen by about 2% in the past 24 hours, hovering around $102,000. This pullback is mainly due to concerns in the market about the Federal Reserve's interest rate hikes and a waning investor sentiment. However, analysts believe that the long-term outlook for Bitcoin remains bullish.

First, institutional investors' demand for Bitcoin continues to grow. Data shows that last week, the net inflow into Bitcoin spot ETFs exceeded 200 million USD, reflecting institutional investors' preference for Bitcoin. Secondly, the supply shortage of Bitcoin also lays the foundation for price increases. As more Bitcoin is held long-term, the reduction in circulating supply will drive up prices.

In addition, Bitcoin's status as a new asset class and a means of value storage is becoming increasingly prominent. In the context of high inflation and geopolitical turmoil, Bitcoin is seen as an effective hedge against inflation. Analysts expect that the price of Bitcoin is likely to break through the $200,000 mark within the next year.

2. Ethereum encounters a sell-off, but the ecological development prospects are bright.

The price of Ethereum has dropped by about 4% in the past 24 hours, falling below the $3300 mark. This decline is mainly influenced by the overall negative sentiment in the cryptocurrency market and investors' concerns about inflationary pressures following the Ethereum merger.

However, analysts believe that the long-term development prospects of Ethereum remain bright. Firstly, as a leading smart contract platform, Ethereum's ecosystem continues to grow. More and more DeFi, NFT, and Web projects are choosing to deploy on the Ethereum network, which will continue to drive demand for Ethereum.

Secondly, the Ethereum EIP-4844 upgrade is expected to significantly improve the network's scalability and transaction throughput, thereby attracting more users and applications. In addition, Ethereum's transition to PoS will greatly reduce energy consumption, enhancing its environmental friendliness and sustainability.

Analysts expect that with the continuous development and technological upgrades of the Ethereum ecosystem, the price of Ethereum is likely to break the $5,000 barrier within the next year.

3. Solana experiences significant network congestion, and the price plummets

The price of Solana has dropped by more than 10% in the past 24 hours, briefly falling below the $20 mark. This sharp decline is mainly attributed to significant congestion on the Solana network, which has led to a substantial decrease in transaction processing capacity.

According to data from the Solana status website, the Solana network experienced severe congestion in the early hours of November 6, resulting in a significant delay in processing a large number of transactions. This issue persisted for several hours until the Solana development team released a new cluster, which alleviated the problem.

This incident has once again raised questions in the market regarding the scalability and stability of the Solana network. Analysts point out that if Solana cannot address this fundamental issue, it will be difficult to attract more users and applications.

However, some analysts believe that this is just a growing pain in the development process of Solana. As the Solana team continues to optimize the network and more applications come online, the Solana ecosystem will continue to grow, thereby driving up prices.

Overall, Solana faces some challenges in the short term, but its long-term prospects remain promising. Investors need to closely monitor the Solana team's progress in addressing network congestion issues.

3. Project News

1. Gensyn releases the local learning AI programming assistant Assist

Gensyn is a blockchain-based AI computing protocol. Recently, the project launched a local learning AI programming assistant called Assist. Assist can learn users' programming habits and styles locally and gradually optimize collaboration methods through interaction.

The launch of this assistant aims to provide developers with a smarter and more personalized programming experience. Assist utilizes AI technology to analyze users' code, comments, and interaction methods, thereby understanding their programming habits and preferences. Subsequently, it provides users with personalized code completion, error correction, and optimization suggestions based on the learned content.

The launch of Assist marks a significant advancement for Gensyn in the field of AI-assisted programming. By combining AI with blockchain technology, the project aims to create a decentralized AI computing ecosystem that provides developers with a more efficient and secure programming environment.

Industry insiders have welcomed the launch of Assist. Some analysts believe that this innovation helps improve development efficiency and shorten the launch cycle, thereby promoting the development of the entire industry. At the same time, some individuals are concerned that AI-assisted programming may bring about some potential risks, such as code security and intellectual property protection issues. Overall, the release of Assist has sparked widespread attention and discussion within the industry.

2. Sui ecosystem continues to expand, potential airdrop activities indicate a multi-chain data revolution.

Sui is an emerging public chain project based on the Move language, founded by former Meta employees. Recently, the Sui ecosystem has been continuously expanding, and potential airdrop activities indicate the arrival of a multi-chain data revolution.

As a new type of blockchain oriented towards Web3, Sui is committed to addressing the pain points of traditional blockchains in terms of scalability, security, and user experience. It employs an innovative data model and consensus mechanism to achieve high throughput and low latency, providing better infrastructure for DApp development.

Recently, the Sui ecosystem has welcomed the addition of several new projects, including the decentralized exchange Cetus and the NFT marketplace Scallop. At the same time, the Sui Foundation has launched the SuiPlay gaming platform, setting up the largest booth at the KBW gaming exhibition in South Korea. These developments indicate that Sui is actively expanding its ecosystem and preparing for future growth.

It is worth noting that the Sui community is brewing a potential airdrop event. It is reported that the event aims to incentivize community contributors and is also a way for Sui to promote its multi-chain data revolution concept. If the airdrop event is ultimately implemented, it will help further expand Sui's influence.

Industry insiders are optimistic about the development prospects of Sui. Analysts believe that Sui's innovative technology is expected to drive advancements in the blockchain industry, particularly in terms of scalability and user experience. At the same time, the continuous growth of the Sui ecosystem will also bring more development opportunities. Of course, as an emerging project, Sui still needs time to prove its value.

3. Notional close V3 protocol to respond to attacks, bad debt scale reaches 721.6 ETH

The fixed-rate lending protocol Notional recently announced that it will shut down the V3 protocol to prevent further losses due to an attack that resulted in approximately 721.6 ETH of bad debt.

Notional is a DeFi lending protocol based on Ethereum that allows users to lend or borrow crypto assets at fixed rates. Its V3 version was launched in March this year, supporting cross-chain asset trading. However, due to a recent vulnerability attack, Notional incurred bad debts of 641.4 ETH and 80.2 ETH on the Ethereum mainnet and Arbitrum, respectively.

To control risks, Notional has decided to gradually shut down the V3 protocol. Affected Aura leverage vault users will face a 100% loss; the account values of ETH lenders and liquidity providers on the mainnet and Arbitrum will also significantly decrease. Notional will announce a detailed asset withdrawal plan and automatically migrate the positions of cross-currency lending users to Aave to avoid liquidation risks.

This event has once again sparked widespread attention and discussion regarding DeFi security. Analysts point out that Notional, as a lending protocol, has some potential design flaws, such as immutable oracle price feeds and interest rate curve mechanisms, which could lead to catastrophic consequences. At the same time, some asset managers take on excessive risks in pursuit of competitive advantages, exacerbating the hidden dangers in the industry.

Industry insiders call for DeFi projects to focus on standardization and information disclosure. Treasury operations should not only pursue profits but also strengthen risk management. Only by establishing a comprehensive security system can DeFi truly unleash its potential and gain broader recognition and adoption.

4. Sui's ecological expansion is accelerating, and Move projects are competing to position themselves.

Sui is an emerging public chain based on the Move language, founded by former Meta employees. Recently, with the continuous expansion of the Sui ecosystem, Move-based projects are also accelerating their layout, showing strong development momentum.

As a resource-oriented programming language, Move is considered an ideal choice for building secure and scalable blockchain applications. It not only has excellent concurrency performance but also effectively prevents common vulnerabilities such as reentrancy attacks. Based on these advantages, the Move language is attracting an increasing number of developers and projects.

In the Sui ecosystem, several star projects have emerged, such as the decentralized exchange Cetus, the NFT marketplace Scallop, and the decentralized Twitter Navi. In addition, the Sui Foundation has launched the SuiPlay gaming platform, setting up the largest booth at the KBW gaming exhibition in South Korea, fully demonstrating its ambitions.

In addition to Sui, other Move-based projects such as Aptos and Movement are also actively positioning themselves. Aptos has launched its mainnet this year, attracting a lot of developer attention; meanwhile, Movement is regarded as the “hidden champion” within the Move ecosystem, with its development prospects highly anticipated.

Industry insiders are optimistic about the future development of Move-based projects. Analysts believe that the innovative design of the Move language is expected to drive advancements in blockchain technology, especially in terms of security and scalability. With the addition of more quality projects, the Move ecosystem is bound to grow stronger.

Of course, the Move ecosystem project also faces some challenges. For example, the limited number of tradable assets and the uneven distribution of ecological projects are issues that the project team needs to address in the future. However, overall, the Move ecosystem is entering a golden period of rapid development, and its growth prospects are worth looking forward to.

4. Economic Dynamics

1. The U.S. Supreme Court's ruling on the tariff case may trigger changes in trade policy.

The current US economy maintains moderate growth, with an annualized quarterly GDP rate of 2.6% in the third quarter, slightly lower than the previous quarter's 2.8%. The inflation rate has retreated but remains high, with a 5.1% year-on-year increase in the core PCE for September. The job market remains robust, with an increase of 261,000 non-farm jobs in October and the unemployment rate dropping to 3.5%.

Recently, the U.S. Supreme Court began hearings on the case regarding the Trump administration's imposition of tariffs under the International Emergency Economic Powers Act. Several justices expressed skepticism about the government's claims, indicating that the judiciary may be preparing to limit presidential trade powers. The White House and the Treasury Department are optimistic about the outcome, but the business community is bracing for the worst.

If the Supreme Court rules against the legality of the tariffs, the government may need several months to refund the approximately $115 billion to $145 billion in tariffs that have been collected. However, the government is likely to seek other legal grounds to reimpose similar tariffs, which means the overall trade impact will remain limited. Any tariff reduction measures may only apply to smaller trading partners, and significant changes are not expected for major economies like the EU.

UBS analysts believe that the ruling could ultimately lower the overall effective tax rate, enhance household purchasing power, alleviate inflationary pressures, and provide the Federal Reserve with more room for easing interest rates. As long as trade partners avoid escalating retaliatory measures, this will generally be welcomed by stock market investors.

2. Federal Reserve Governor Milan: Continuing to lower interest rates remains reasonable

Federal Reserve Board member Mester recently stated that continuing to cut interest rates is still reasonable, and the Federal Reserve's policy remains too restrictive, posing risks under the current policy. She pointed out that the core PCE inflation rate based on the market is closer to the 2% target, implying that inflationary pressures are easing.

However, Milan also emphasized that one should not mechanically respond to stock market rises through policy. He believes that the Federal Reserve should pay attention to broader financial conditions, not just stock market performance.

Goldman Sachs analysts stated that Milan's remarks reflect divisions within the Federal Reserve. Some officials believe that further rate hikes are necessary, while others are concerned that excessive tightening may trigger an economic recession. Overall, the market expects the Federal Reserve to raise rates by another 25 basis points in December, with a potential pause in the rate hike cycle in 2023.

3. Bridgewater Fund Dalio: The Federal Reserve is stimulating a bubble.

Ray Dalio, the founder of Bridgewater Associates, recently wrote that the Federal Reserve's past quantitative easing was “stimulus for depression,” while the current quantitative easing is “stimulus for bubbles.” He explained that the Federal Reserve's announcement to stop quantitative tightening and begin quantitative easing, although described as a “technical operation,” is nevertheless a loosening measure.

Dalio believes that this is one of the indicators he uses to track the dynamic progress of the “big debt cycle” and needs to be closely monitored. He warned that government debt levels have never been this high since 1945, and we may see the emergence of cryptocurrency bubbles, artificial intelligence bubbles, and debt bubbles in the future.

Goldman Sachs analysts pointed out that Dalio's comments reflect concerns about persistently high inflation and Federal Reserve policy. If inflation continues to rise, the Federal Reserve may have to raise interest rates further, increasing the risk of an economic recession. On the other hand, if inflation drops rapidly, the Federal Reserve may restart easing policies, which could stimulate asset bubbles.

4. The UK will release a stablecoin regulatory consultation on November 10.

The Bank of England plans to release a regulatory consultation on stablecoins on November 10 to ensure their competitiveness in the global cryptocurrency market and align with regulatory measures in the United States. According to reports, the new proposal is expected to include a temporary cap on the holdings of stablecoins for individuals and businesses.

This initiative aims to address the rapid growth of the stablecoin market. The U.S. Treasury estimates that the $310 billion stablecoin market will grow into a $2 trillion industry by 2028. The UK hopes to provide a good environment and infrastructure support for industry innovation while ensuring financial stability through timely regulation.

The Governor of the Bank of England, Bailey, stated that regulating stablecoins will help maintain the effectiveness of monetary policy transmission and prevent crypto assets from posing risks to the traditional financial system. However, he also acknowledged that excessive regulation could stifle innovation, and therefore, it is necessary to seek an appropriate balance between risk and innovation.

Experts believe that the UK's move reflects the increasing attention of global regulators on stablecoins. Stablecoins play a key role in the cryptocurrency ecosystem and may also pose challenges to the traditional financial system. Timely development of a comprehensive regulatory framework will help maintain financial stability and promote innovation.

5. Regulation & Policy

1. The UK will release stablecoin regulatory consultations on November 10, in line with the United States.

Sarah Breeden, the Deputy Governor of the Bank of England, recently revealed that the Bank of England will release a consultation document on stablecoin regulation on November 10th. This move aims to ensure the UK's competitiveness in the global cryptocurrency market and to align with regulatory measures in the United States.

The move by the Bank of England continues the results of the meeting between UK Chancellor of the Exchequer Rachel Reeves and US Treasury Secretary Scott Bessent in September. At that time, both sides agreed to strengthen regulatory coordination in the areas of cryptocurrency and stablecoins. Previously, several crypto industry organizations in the UK criticized the regulatory environment as being too conservative, arguing that it has caused the country to fall behind in innovation and policy.

According to reports, the new proposal is expected to include a temporary cap on the holdings of stablecoins for individuals and businesses. This measure aims to regulate the circulation of stablecoins in the UK and prevent potential financial risks associated with them.

Meanwhile, the Canadian government also announced a stablecoin regulation plan this week, requiring fiat-backed issuers to maintain sufficient reserves and establish risk management systems. At the institutional level, organizations such as Western Union, SWIFT, MoneyGram, and Zelle have recently announced the integration of stablecoin solutions.

The regulatory trends of the Bank of England reflect the high importance that major global economies place on stablecoin regulation. As the application of stablecoins in payment and settlement becomes increasingly widespread, establishing uniform regulatory standards to ensure financial stability and consumer protection has become an urgent priority.

2. Coinbase urges the Treasury to ensure that the regulations of the GENIUS Act do not deviate from Congress's original intent.

The American cryptocurrency exchange Coinbase recently submitted feedback to the U.S. Department of the Treasury, urging it to strictly adhere to the original intentions of Congress when formulating the implementation rules for the GENIUS Act, in order to avoid excessive regulation.

The “GENIUS Act” was signed into effect in July 2025, establishing a regulatory framework for federal stablecoins in the United States. As one of the main beneficiaries of this act, Coinbase pointed out in its feedback that regulators should not consider third-party reward programs as “interest” to avoid going against the spirit of the act. Additionally, Coinbase suggested that payment stablecoins be treated as cash equivalents to simplify related tax and accounting processes.

Faryar Shirzad, Chief Policy Officer at Coinbase, stated that the Treasury should avoid imposing obligations beyond those explicitly required by regulations, warning that excessive intervention could stifle innovation and undermine the goal of the GENIUS Act to make the U.S. the “global crypto hub.” He urged regulators to take a narrow interpretation of the act, excluding non-financial software, blockchain validators, and open-source protocols from its scope, to ensure that stablecoins issued in the U.S. have the flexibility and competitiveness required to become the dominant global payment and settlement tool.

Coinbase's appeal has received responses from other companies in the industry. Kristin Smith, Executive Director of the Blockchain Association, stated that excessive regulation would harm the United States' leading position in cryptocurrency innovation and could lead to a brain drain of talent and capital. She emphasized that regulation should aim to promote innovation and protect consumers, rather than overly restrict industry development.

Overall, companies like Coinbase have expressed a cautious attitude towards the implementation details of the “GENIUS Act.” They hope that regulation can protect consumer rights while leaving ample room for innovation and development in the cryptocurrency industry.

3. The U.S. Supreme Court hears the case on Trump's tariff policy, which may affect the direction of cryptocurrency regulation.

The U.S. Supreme Court recently began hearings on the Trump administration's case of imposing tariffs under the International Emergency Economic Powers Act. Several justices questioned the government's claims, indicating that the judiciary may be preparing to limit the president's trade authority.

According to reports, if the Supreme Court rules that Trump's tariff policy is illegal, it will lead to the U.S. government needing to refund about $140 billion in tariffs, affecting the federal budget deficit. This could change the trade environment, benefiting the U.S. economy and stock market, and provide the Federal Reserve with more room for easing interest rates.

However, analysts point out that even if the ruling is unfavorable, Trump can still utilize other legal provisions to maintain tariff pressure, which means that trade tensions are unlikely to be alleviated. UBS estimates that the government is likely to use legal tools such as Section 201 and Section 301 of the Trade Act of 1974 to rebuild tariff barriers, but this process will take several quarters and lead to a decrease in the flexibility of trade policy.

The White House and the Treasury are optimistic about the results, but the business community is preparing for the worst-case scenario, concerned that uncertainty will persist for at least several more months. Analysts believe that judicial risk is infiltrating macro liquidity expectations, with the dollar strengthening in the short term and safe-haven assets being supported.

In addition, the outcome of this case may also affect the direction of cryptocurrency regulation. White House digital asset advisor Patrick Witt previously stated that the government shutdown has severely impacted the drafting progress of the “Crypto Market Structure Act,” and legislative delays have almost become a foregone conclusion. If the Supreme Court's ruling weakens executive power, the market may enter a structural re-evaluation cycle, with funds reassessing policy risks and the value of risk assets.

Overall, the Supreme Court's ruling not only concerns trade policy but will also have a profound impact on macroeconomic and financial regulation. The cryptocurrency industry, as an emerging field, may face significant changes in its regulatory outlook.