The crypto market is experiencing significant fluctuations. The SEC has expressed a positive stance, and legislation for stablecoins is accelerating.

This week, the crypto market experienced a black swan impact after a general rise. At the beginning of the week, Bitcoin and Ethereum drove the market up, and DeFi tokens were positively influenced by the SEC chairman's statements, leading to a short-term pump. Macroeconomic data was also favourable for interest rate cuts. However, on Friday, the situation in the Middle East suddenly escalated, causing most alts to fall by about 10%. Additionally, SharpLink Gaming's stock price plummeted by 70% due to misunderstandings from its prospectus, which somewhat dragged down Ethereum.

This week, focus on the rising topic of stablecoins, the progress of the Aster project, as well as the SEC roundtable meeting and opportunities related to the Sol ETF.

1. The narrative around stablecoins continues to heat up.

The U.S. Senate passed the procedural vote on the "GENIUS Stablecoin Act" with a vote of 68 to 30, which will initiate debate and a final vote in the chamber. If both parties shorten the debate time, the legislative process could be completed as early as June 17. If passed, it will be submitted to the House of Representatives for further review.

If finalized, it will become the first comprehensive federal legislation in the United States targeting crypto assets. Government advisors have expressed support for the bill, and the president hopes to sign it before August. As the legislative process progresses, other countries and institutions are also accelerating their stablecoin arrangements.

1. South Korea

The newly appointed president Lee Jae-myung has an open attitude towards the encryption industry. The ruling party has proposed the "Basic Law on Digital Assets", allowing local companies to issue stablecoins. The issuance requirements include a minimum capital of 500 million won, reserve guarantees, and regulatory approval.

The governor of the Bank of Korea will discuss the development of a won-backed stablecoin with executives from commercial banks. However, due to the potential to bypass capital controls, South Korea is cautious about introducing a won stablecoin.

Focus on the target:

KakaoPay: a digital wallet and payment platform, is seen as a potential beneficiary of domestic stablecoins. After the announcement of the bill, the stock price rose 29% in a single day.

Kaia(KAIA): A high-performance Layer-1 blockchain plans to issue a stablecoin pegged to the Korean won. This week, it has risen over 50%, reflecting the market's recognition of its stablecoin layout.

2. Traditional Institutions

In 2024, the trading volume of stablecoins will reach $27.6 trillion, surpassing the combined total of Visa and Mastercard. Low costs and streamlined processes attract businesses to explore the integration of stablecoins into payment systems.

2. Aster

Aster is a DEX project incubated by Binance, benchmarking Hyperliquid. It is integrated from Astherus and APX Finance, and AST will replace APX. There are rumors of a 1:1 exchange, with half locked for six months. Considering the development needs of the Binance ecosystem, APX has the potential for subsequent pump.

Three, Regulatory Policies

1. The SEC Chairman stated at the "DeFi and the American Spirit" roundtable meeting:

• The design concept of DeFi aligns with the American spirit.
• PoW or PoS network activities are not subject to federal securities law jurisdiction.
• Support self-custody rights
• Explore the "Innovation Exemption" framework
• Acknowledge the innovative nature of DeFi technology and update the regulatory framework.

2. The SEC requires Sol ETF issuers to submit a revised S-1 form, which may indicate approval within 3-5 weeks. The SEC seems to accept proposals that include a staking mechanism.

The market has entered the ETF speculation cycle. The Sol ETF may be approved as early as October 2025, and the Sol native token along with quality assets such as Raydium, Orca, Jito, and Sanctum are worth paying attention to.