Major progress in U.S. encryption regulation as the "GENIUS Act" passes the Senate

The U.S. Senate passed the landmark "GENIUS Act" on Tuesday, marking an important step for the federal government in regulating stablecoins. The passage of the bill also puts pressure on the House of Representatives to further advance digital asset regulatory work. This marks the Senate's first passage of significant cryptocurrency legislation.

One of the sponsors of the bill, Republican Senator Bill Hagerty, expressed gratitude to his fellow senators who supported the bill before the formal vote. Less than a week ago, lawmakers had overwhelmingly voted in favor of the bill, so its final passage was also expected.

Next, the House of Representatives needs to decide how to advance the relevant legislative work. In April of this year, the House Financial Services Committee proposed its own stablecoin legislation - the "Stablecoin Transparency and Accountability to Promote a Better Ledger Economy Act." However, this proposal has not yet been submitted for a full vote in the House.

Cryptocurrency Market Trends

As of the time of writing, the prices of major cryptocurrencies are as follows:

• BTC: 104,691 USD, 24-hour decline of 2.2%
• ETH: 2,516.29 USD, 24-hour decline 2.0%
• BNB: 648.83 USD, 24-hour decrease of 0.5%
• SOL: 148.20 USD, 24-hour drop of 2.4%
• DOGE: 0.1701 USD, 24-hour drop of 2.4%
• XRP: $2.16, 24-hour decline of 4.4%
• TRX: 0.2718 USD, 24-hour decline of 1.4%

The Federal Reserve will discuss easing leverage requirements for large banks

The Federal Reserve plans to hold a board meeting on June 25 to discuss revisions to the "supplementary leverage ratio" plan. This measure requires banks to set aside corresponding capital regardless of asset risk. This meeting will be the first since the appointment of the new top regulatory official at the Federal Reserve, Bowman.

Relaxing leverage ratio requirements may be the first step in a series of easing rule plans by the Federal Reserve. Bowman aims to reform the Fed's regulation and oversight of some of the largest and most complex banks in the United States. While the Fed has not yet revealed specific proposal details, the banking industry has been calling for changes to the supplementary leverage ratio for years, hoping to exempt assets traditionally viewed as safe or to modify the formula used to calculate the leverage ratio.

The banking industry believes that the current supplementary leverage ratio may hinder its ability to enter the intermediate government bond market during periods of market stress. This discussion is expected to initiate a broad plan for the Federal Reserve to reassess banking regulatory rules.

Thailand Implements Tax Incentives on Profits from Cryptocurrency Sales

The Thai Cabinet has approved a five-year personal income tax exemption policy for profits from the sale of encryption currencies. This move demonstrates the Thai government's supportive stance towards the encryption currency industry.

Financial institutions accelerate their layout in the digital asset field

JPMorgan Chase will pilot the issuance of a deposit token called JPMD on a certain blockchain network, representing the bank's dollar deposits. This marks the largest bank in the world further delving into the digital asset space. JPMorgan Chase plans to conduct a transaction in the coming days, transferring a certain amount of JPMD from the bank's digital wallet to a large cryptocurrency exchange.

At the same time, a well-known cryptocurrency exchange is seeking approval from the U.S. Securities and Exchange Commission (SEC) to offer blockchain-based stock trading services. If this initiative is approved, it will further blur the lines between traditional finance and encryption assets.

Deutsche Bank also plans to launch a minimum viable product of its asset tokenization and services platform in November 2025, (MVP). The platform aims to reduce the upfront costs for companies exploring tokenization, allowing asset managers, wealth advisors, and other financial institutions to create and distribute tokenized assets and provide related services.

Cryptocurrency Market Dynamics

A stablecoin project announced that its deposit limit will no longer be increased, maintaining a total cap of $1 billion. Despite the recharge channel being closed, the system will continue to operate. Users can withdraw at any time before the lock-in period begins, but withdrawing or transferring voucher tokens will reduce the allocated share.

A well-known exchange has announced its official entry into the German and Polish markets, providing local users with trading services for over 270 types of encryption currencies, including more than 60 trading pairs of encryption currencies against the euro.

Asset management company VanEck plans to launch a private digital asset fund named VanEck PurposeBuilt Fund this month. The fund will focus on specific blockchain ecosystems, investing in tokenized Web3 projects in areas such as gaming, financial services, payments, and artificial intelligence, as well as projects with long-term token utility at the token generation event (TGE) stage.

Federal Reserve Policy Outlook

Market analysts believe that without considering the potential impact of tariffs on prices, the Federal Reserve may be prepared to cut interest rates this week, as recent inflation has improved. However, the past five years have changed people's views on inflation and what may happen.

According to the "Federal Reserve Watch" data from the Chicago Mercantile Exchange ( CME ), the market expects an 85.5% probability that the Federal Reserve will maintain interest rates in July, while the probability of a cumulative rate cut of 25 basis points is 14.5%. By September, the probability of maintaining interest rates drops to 32.8%, while the probability of a cumulative rate cut of 25 basis points rises to 58.2%. By December, the market expects the highest probability of a cumulative rate cut of 50 basis points, reaching 41.3%.

The Impact of 10-Year U.S. Treasury Yield on the Cryptocurrency Market

The changes in the yield of the 10-year U.S. Treasury bonds have a profound impact on the global financial markets, including the encryption market. As a global safe-haven asset, the fluctuations in U.S. Treasury yields often reflect investors' risk preferences.

For cryptocurrency investors, the rise in 10-year treasury yields may signal that crypto assets will face a more challenging market environment, especially during periods of global market turmoil. Conversely, a low yield environment often stimulates risk appetite, which may boost the performance of high-risk assets such as cryptocurrencies.

Therefore, cryptocurrency investors need to closely monitor the changes in the 10-year U.S. Treasury yield, using it as one of the important indicators to assess overall market risk appetite and potential capital flows.