TRON Industry Weekly Report: August Non-Farm Payrolls Miss Expectations, Crypto Market Rebound Stalled, a16z Leads Investment in Decentralized IP Infrastructure Story

I. Outlook

1. Macroeconomic Summary and Future Predictions

Last week, U.S. macroeconomic data continued to show signs of weakness, with only 22,000 non-farm jobs added in August and the unemployment rate rising to 4.3%. The number of long-term unemployed and involuntary part-time workers increased, reflecting a continued weakening in the labor market. In the market, stocks faced downward pressure, safe-haven sentiment pushed gold to new highs, and there was a noticeable inflow of funds into the bond market.

Looking ahead, the job market may remain sluggish, with wage growth further declining, limiting consumer support; although inflation is gently decreasing, tariffs and policy uncertainties remain risks. The market generally expects the Federal Reserve to cut interest rates by 25 basis points at the September meeting, with monetary policy gradually shifting from tightening to neutral. Driven by sensitivity to policy and data, safe-haven assets like gold and government bonds may continue to attract funds, while stock market volatility remains high.

2. Market Changes and Warnings in the Crypto Industry

Last week, the crypto market showed overall divergence: Bitcoin fluctuated around $110,000, briefly breaking above $113,000 before retreating; Ethereum fell about 3.8% over the week to $4,322, affected by capital outflows. Overall, the market capitalization remained around $3.9 trillion, with Bitcoin and Ethereum still dominating, and investor sentiment fluctuating between "neutral" and "greedy."

Looking ahead, there are both opportunities and risks in the industry. Politically-related tokens like WLFI were highly sought after after listing, but their price volatility is high; Gemini exchange initiated an IPO plan, indicating strong interest from the capital market in the crypto industry; tightening regulation on stablecoins will promote compliance development while squeezing the survival space of some small and medium projects. Overall, the crypto market will maintain a high volatility pattern under the dual influence of tightening policies and active capital, and investors need to remain cautious.

3. Industry and Track Hotspots

Silo, a scalable decentralized lending framework focused on modular risk isolation led by Sonic, is a non-custodial lending primitive that can create programmable, risk-isolated markets called "Silo"; raising $1.5 million, Hylo, a decentralized stablecoin protocol based on LST collateral and a dual-token mechanism co-invested by Solana, is a decentralized stablecoin protocol based on the Solana blockchain that adopts a dual-token system.

II. Market Hotspot Tracks and Potential Projects of the Week

1. Overview of Potential Projects

1.1. Analysis of Silo, a Scalable Decentralized Lending Framework Focused on Modular Risk Isolation Led by Sonic

Introduction

The Silo protocol is a non-custodial lending primitive that can create programmable, risk-isolated markets called "Silo." Any user with a wallet can lend and borrow in Silo in a non-custodial manner.

The Silo market adopts a peer-to-pool, over-collateralized model, meaning that the value of the borrower's collateral is always greater than the value of their loan.

Architecture Overview

Silo is the main component of the protocol, consisting of two ERC-4626 vaults, each corresponding to an underlying token asset. Silo is also referred to as a lending market, responsible for implementing lending logic, managing risks, and conducting risk isolation.

Silo can be deployed permissionlessly through Silo Factory, and the default deployment cannot be changed (unless the deployer enables upgradeable settings).

Core Contract Architecture of Silo

Silo Market = Two ERC-4626 Vaults

Each Silo market consists of two ERC-4626 vaults:
Silo0: Vault for the first asset
Silo1: Vault for the second asset

Standardized yield-bearing vault deposits represent borrowable deposits, thus entering the lending market.

Two Types of Collateral

When users deposit assets in Silo, they can choose between borrowable or non-borrowable:
Borrowable deposits: Can be borrowed by other users and earn interest
Non-borrowable deposits: Do not earn interest, but depositors can withdraw their assets at any time regardless of market liquidity

Hooks System

The Hooks system of the Silo protocol provides an extensible mechanism that supports executing custom logic before and after core protocol operations, such as deposits, withdrawals, borrowing, repayments, leverage operations, collateral switches, flash loans, and liquidations.
Hooks can be used for validation, logging, integration with external contracts, etc.
The protocol can operate independently even without Hooks, but Hooks enhance modularity and scalability
(More details can be found in Hooks.md)

Liquidation Mechanism

Liquidation ensures that the market (Silo) remains solvent.
When the value of collateral falls below the liquidation threshold (LT), anyone can initiate a liquidation.
Partial liquidations are supported, and full liquidations can be conducted if necessary (e.g., remaining "dust").
Liquidation is implemented through the Hooks system, with a modular design (refer to PartialLiquidation.sol).
Liquidation is completely permissionless and has an incentive mechanism (liquidators can receive liquidation fee rewards).
Liquidation fees are set at the time of market deployment and cannot be modified.

Silo's Share Tokens

Each Silo asset generates three types of tokens:
Vault Shares (ERC-20): Represent shares of borrowable deposits
Protected Collateral Tokens (ERC-20): Represent shares of non-borrowable collateral
Debt Tokens (ERC20R): Represent the borrower's debt

The vault manages these three types of tokens through mint/burn operations, and tokens can be freely transferred, triggering Hooks to notify third-party contracts, enabling tracing of core protocol operations.

Oracles

Oracles provide asset price information for Silo and must implement the ISiloOracle interface.
A single oracle can be shared for two assets, or each can use different or no oracles.
Each token can set up to two oracles:
Solvency oracle: Used to determine whether a user is solvent
MaxLtv oracle: Used to calculate the maximum borrowing capacity of collateral (below the liquidation threshold LT)
If no oracle is set, the price defaults to 1.

Available oracle modules include:
Chainlink V3: Obtains prices from Chainlink price oracles
Uniswap V3: Obtains prices from Uniswap V3 pools (with safety checks and TWAP)
DIA: Obtains prices from DIA price oracles

Interest Rate Model (IRM)

The interest rate model (IRM) is the algorithm used by the protocol to dynamically set borrowing rates (APY), with each asset configurable individually.
Currently, the Silo Interest Model V2 is used (based on a PI controller, with deadband and optimization):
Maintains stable rates and market balance near optimal utilization (Uopt)
Ensures utilization remains below critical thresholds (Ucrit) to prevent liquidity risks
When utilization is too low (below Ulow), rates are quickly raised to attract borrowing
Even with low utilization, depositors are guaranteed a minimum rate greater than zero.

Tron Comments

Silo's advantages lie in its modular and risk-isolated design, achieving a highly scalable lending market through the dual ERC-4626 vault structure and Hooks system, supporting various collateral types, flexible liquidation mechanisms, pluggable oracles, and dynamic interest rate models, enhancing both security and customization capabilities; its disadvantages include complex architecture, high technical thresholds for development and integration, reliance on the security of external oracles and liquidation incentives, and potential impacts on market efficiency when liquidity and user scale are insufficient.

1.2. Interpretation of Hylo, a Decentralized Stablecoin Protocol Based on LST Collateral and Dual-Token Mechanism, Raising $1.5 Million with Solana Co-Investment

Introduction

Hylo is a decentralized stablecoin protocol based on the Solana blockchain, adopting a dual-token system:
hyUSD: A stablecoin pegged to the U.S. dollar, supported by Solana liquid staking tokens (LSTs)
xSOL: Provides leveraged exposure to SOL
The protocol operates entirely autonomously without real-world assets or centralized intermediaries, ensuring permissionless and secure transactions.
Hylo employs a multi-layered risk management mechanism, including fee adjustments, stability pools, and zero-slippage liquidity for both tokens.

Architecture Overview

1. hyUSD and xSOL
   Understanding the two core tokens of Hylo—stablecoin hyUSD and leveraged token xSOL.

Hylo is Solana's native decentralized stablecoin protocol. Unlike traditional stablecoins, the collateral for Hylo is not cash or government bonds but SOL liquid staking tokens (LSTs).
The main risk of using SOL as collateral lies in the inherent price volatility of the crypto market, which is discussed in depth in the "decentralized stablecoin" content.

Hylo achieves a Delta-neutral (price-neutral) state of collateral through a simple formula and two tokens (hyUSD and xSOL), employing a completely different and autonomous operating strategy.

a. Dual tokens sharing a liquidity pool

Hylo issues two tokens:
hyUSD: Core stablecoin
xSOL: Tokenized leveraged long position in SOL

Both tokens are supported by a collateral pool composed of multiple LSTs.

At any given time, the combined market value of the two tokens equals the total dollar value of the liquidity pool (Collateral TVL), expressed as:
Total Value of Collateral Pool (Collateral TVL) = hyUSD Supply × hyUSD Price + xSOL Supply × xSOL Price

Hylo's uniqueness lies in the symbiotic relationship between xSOL and hyUSD:

xSOL absorbs the price volatility of SOL, allowing hyUSD to maintain its 1:1 peg to the dollar amidst market fluctuations.
At the same time, the excess returns generated by the protocol's LST reserves provide higher returns for xSOL holders.

b. Pricing of hyUSD and xSOL

The price of hyUSD is always fixed at $1 (stablecoin).

The price of xSOL is determined by the "variable reserve" in the collateral pool (i.e., the excess value not used to support hyUSD).
The pricing formula can be rewritten as:
xSOL Price = (Total Value of Collateral Pool - hyUSD Supply) ÷ xSOL Supply

When the value of the variable reserve increases (usually indicating a rise in SOL price), the price of xSOL rises with leverage; conversely, if the SOL price falls, the value of xSOL decreases, absorbing the fluctuations of the entire liquidity pool and maintaining the stability of hyUSD's peg.

c. Effective Leverage of xSOL

Effective leverage is a dynamic metric that reflects the extent of xSOL's exposure to underlying SOL price fluctuations.
It is calculated as the ratio of the system's total locked value (TVL) to the market value of xSOL:
Effective Leverage = Total Value of Collateral Pool (Collateral TVL) ÷ xSOL Market Cap

Mechanism of leverage changes
When hyUSD is minted or xSOL is redeemed, effective leverage increases because this increases the total amount of collateral while relatively reducing the supply of xSOL.
When hyUSD is burned or new xSOL is minted, effective leverage decreases.

Effective leverage is inversely related to the proportion of xSOL in the total TVL:
The higher the proportion of xSOL, the lower the effective leverage.
The lower the proportion of xSOL, the higher the effective leverage.

2. Protocol Revenue
   Hylo's revenue mainly comes from two sources: minting/redeeming fees and collateral pool LST yields.

Flow of Protocol Revenue

1. LST Yields
   The LSTs held in the collateral pool are expected to generate a base annual percentage yield (APY) of 8% to 11%.
   The vast majority of the yields will be distributed to users participating in the stability pool.
   The remaining portion will flow directly into the Hylo treasury as revenue.

2. Minting/Redeeming Fees
   Minting and redeeming fees are the main source of revenue for the protocol.
   All transactions incur a certain percentage (measured in basis points) as a fee.
   The fee rate will be dynamically adjusted based on the health of the protocol's operations.

Tron Comments

Hylo's advantages lie in its high-performance architecture based on Solana and its dual-token design (hyUSD stablecoin + xSOL leveraged token), achieving stability without the need for real asset backing through LST collateral and Delta-neutral mechanisms, while also featuring multi-layered risk management, zero-slippage liquidity, and substantial LST yields; its disadvantages include reliance on SOL prices and the on-chain liquid staking ecosystem for stability, significant volatility in xSOL leverage, and potential amplification of price shocks and liquidity risks when the protocol's scale and market depth are insufficient.

III. Detailed Explanation of Key Projects of the Week

2.1. Detailed Explanation of Story, a Full-Stack Programmable Blockchain Infrastructure for Intellectual Property, Raising Over $200 Million with a16z Leading Two Rounds

Introduction

Story is a Layer 1 blockchain designed for the digital age, reshaping the registration, management, and monetization of intellectual property (IP). With its full compatibility with EVM and optimized execution layer, Story can efficiently handle complex IP data structures—providing a low-cost transaction experience while maintaining high speed.
Architecture Analysis

Overview

An overview of Story's "Proof-of-Creativity" protocol.
An intellectual property (IP) in the system is represented by IP assets (IP Asset) and their associated IP accounts (IP Account). The IP account is a smart contract that serves as the core identity for each IP. We also provide multiple modules (Modules) to add functionalities to IP assets, such as creating derivative works, initiating IP disputes, and automatically allocating revenues among IPs.

Below is a brief introduction to the various layers involved in the above architecture:

IP Asset (IP Asset)
When you want to put an IP on-chain, you first need to mint an ERC-721 NFT. This NFT represents your ownership of the IP.
Next, you register the NFT in the protocol through the IP Asset Registry. This step deploys an IP account (IP Account), officially generating an "IP asset." The contract address serves as the unique identifier (ipId) for that IP asset. The underlying NFT can be traded or sold like any other NFT, and the new holder will simultaneously own the IP asset and all associated revenue rights.

IP Account (IP Account)
The IP account is a smart contract bound to the IP asset, primarily serving two functions:
Storing data related to the associated IP asset, such as licensing agreements (Licenses) and royalties generated by the IP. Supports calling this data through various modules. For example, the programmability of the IP account enables core functionalities such as licensing, revenue/royalty sharing, and derivative creation. The address of the IP account serves as the unique identifier (ipId) for that IP asset.

Modules

Modules are customizable smart contracts used to define and extend the functionalities of the IP account, allowing IPs to truly achieve programmability.

Currently available core modules include:
Licensing Module: Establishes parent-child relationships between IPs, supporting the creation of derivative works under licensing terms (e.g., must credit, share 10% of revenue, etc.)
Royalty Module: Automatically allocates income among IPs based on the revenue distribution rules specified in the licensing terms
Dispute Module: Used to initiate and mark IP disputes
Grouping Module: Allows multiple IPs to be grouped together
Metadata Module: Manages and views the metadata of IP assets

Registry

Various registries in the protocol serve as the main directory and storage location for global state. Unlike the IP account, which manages the state of individual IPs, the registry is responsible for maintaining the overall state of the protocol.

Programmable IP License (PIL, Programmable IP License)

PIL is a real off-chain legal contract used to define the terms under which IP assets can be legally licensed. For example, how the IP asset can be commercialized, re-created, credited, and by whom and under what conditions these actions can be executed.
We have mapped these terms on-chain, allowing you to easily attach licensing terms to your IP assets, enabling others to seamlessly and transparently obtain your authorization.

Module Details

1. Licensing Module

Create and Bind Real Legal Licenses for Your IP on Story

Holders of IP assets have rights over the intellectual property, such as creating derivative works, commercial operations, and reproducing and disseminating across different platforms.
IP assets can programmatically grant permissions to exercise these rights to any user using licensing tokens (License Token, an ERC-721 NFT). The licensing token points to a specific set of conditions, known as "license terms."

The blue contracts in the protocol are built-in, while the white contracts can be provided by the community or third-party developers.
Blue: Built-in contracts in the protocol
White: Contracts developed by the community or third parties

LicensingModule.sol is the main entry contract for the licensing system, responsible for the following functions:
Binding licensing terms to IP assets
Minting licensing tokens
Registering derivative works
Setting licensing configurations

2. Royalty Module

Learn How to Pay, Allocate, and Collect Royalties on Story

The royalty module of Story enables automated revenue distribution based on the derivative relationships and licensing terms between IP assets (IPA). This section will introduce how revenue circulates within the protocol and how IP owners can obtain and collect their shares.

Royalty Stack
Each IP asset has a structure called the Royalty Stack. It is a cumulative percentage of revenue used to pay royalties to higher-level (ancestor) IPs based on the licensing terms between various IP assets.

For example:
If IPA3 generates 100 $IP in revenue, and its royalty stack is 15% (with IPA1 accounting for 5% and IPA2 for 10%), then IPA3 will ultimately receive only 85 $IP, while the remaining 15 $IP will be allocated to IPA1 and IPA2.
The IP Royalty Vault automatically generates a royalty vault for each IP asset upon creation. This vault is bound to the IP asset but exists independently, used to receive all revenue generated by that IP asset.

Royalty Tokens
Each royalty vault is associated with 100 royalty tokens, each representing a 1% revenue right (i.e., a share of the income in the vault) of the total revenue of that IP asset.

IP owners can transfer these royalty tokens to other wallet addresses. The holders of the tokens will have the right to collect revenue corresponding to their holding proportion and can proportionally withdraw shares from the royalty vault.

3. Dispute Module

Providing Users with an Arbitration-Based Mechanism for Initiating and Resolving Disputes

The dispute module provides users with a way to initiate and resolve disputes through an arbitration mechanism.

Dispute-related Terms

1. Arbitration Policies
   Arbitration policies refer to a complete set of rules, processes, and participating entities that determine the outcome of disputes.
   Currently, the protocol only supports UMA arbitration policies (UMA Arbitration Policy).

2. Arbitration Penalty
   An arbitration penalty refers to the consequences that arise after an IP asset is "marked."
   An IP asset (IPA) is only considered "marked" if the arbitration result determines that the dispute is valid.

Once marked, the IPA will face the following restrictions:
Cannot mint new licenses
Cannot establish associations with any higher-level IP
Cannot collect royalty income
All existing licenses will become invalid

Dispute Processing Flow

1. Raise Dispute
The raiseDispute function is permissionless, allowing any address to initiate a dispute against any registered IP asset in the protocol.
The initiator must complete the following steps:

Choose a dispute label: Decide on the "label" (tag) to be applied to the IP asset; if the arbitration result is a favorable judgment, this label will be formally applied to the IP asset. The IP will only be officially "marked" if the arbitration rules the dispute valid (i.e., "favorable judgment").
Submit dispute evidence: Provide evidence materials for assessment.
Meet other requirements of the arbitration policy: For example, payment rules, etc. (depending on the arbitration policy used).

2. Set Dispute Judgement
The setDisputeJudgement function is restricted to whitelisted addresses and is used to set the final judgment result of the dispute.
Each dispute's judgment can only be set once, as the dispute judgment is immutable.
If a third party wishes to provide an appeal or review mechanism, it can implement it in its own system and return the final result to the protocol.

3. Tag Derivative If Parent Infringed
If the result of setDisputeJudgement marks an IP as infringing, then any address can call the tagIfRelatedIpInfringed function to apply the same infringement label to:
All derivative works of that IP (propagating the label down the derivative chain)
If the IP belongs to a certain IP group, the label can be applied to all member IPs of that group.

4. Resolve Dispute
Labels originate from judgments (setDisputeJudgement):
If a label is applied after a dispute is deemed valid, and the initiator believes the issue has been resolved (e.g., the other party has paid off the debt), they can call resolveDispute to remove the label; otherwise, the label will remain.
Labels originating from parent infringement propagation (tagIfRelatedIpInfringed):
If the label is automatically inherited due to parent IP infringement, anyone can call resolveDispute permissionlessly to remove the label from the derivative IP once the parent is no longer considered infringing, allowing for quick removal of infringement marks along the derivative chain.

5. Cancel Dispute
If the parties resolve the issue on their own before the arbitration judgment, the dispute initiator can cancel the dispute.
Under certain arbitration policies, cancellation may not refund any fees paid.

4. Grouping Module

Used to create and manage group-type IP assets (Group IP Assets) and support group royalty pools.

Core Functions
Create new groups
Add/remove member IP assets (IPA) from the group
Check if a certain IP is included in the group
Get the total number of group members

Creating Group IP Assets
Similar to ordinary IP registration, a group must first mint an ERC-721 NFT (representing group ownership) and then register, which will deploy a group IP account (Group IP Account).
The group IP account functions similarly to ordinary IP accounts (can mount licensing terms, derivatives, module execution, etc.) and adds the functionality of managing members.

Registration and Management
Groups are managed through the Group IP Asset Registry, including member information and reward pools.
Anyone can create a group.

Group Restrictions
Group derivative IPs can only have that group as their sole parent.
Group IPs cannot use LAP (Liquid Absolute Percentage) royalty strategies.
Empty groups cannot generate derivative IPs or mint licensing tokens.
Group IPs cannot be registered as derivative IPs.
Groups can only have one unified licensing term for all members.
Once a group has its first member, mintingFee, licensingHook, and licensingHookData are fixed; the commercial revenue share ratio (commercialRevShare) can only increase.
Maximum of 1000 members.

Adding and Removing Members
Only the group owner can add/remove member IPs.
When adding members, ownership of the IP is not required, but the IP must include licensing terms that match the group (same licenseTemplate and licenseTerms), and mintingFee and licenseHook must be consistent, with the commercial revenue share ratio less than or equal to that of the group.

Group Locking
Once a group is locked, members cannot be removed, but new members can still be added.
Conditions for group locking:
The group has registered derivative IPs.
Someone has minted licensing tokens from the group.

5. Metadata Module

Used to create, manage, and read the metadata of IP assets within the Story protocol. It consists of two main parts:
CoreMetadataModule: Responsible for writing and updating (write operations)
CoreMetadataViewModule: Responsible for reading (read operations)

Metadata Structure
The metadata of an IP asset includes:
metadataURI: URI pointing to the detailed metadata of the IP asset
metadataHash: Hash value of the metadata (for verification)
nftTokenURI: URI pointing to the NFT metadata associated with the IP asset
nftMetadataHash: Hash value of the NFT metadata (for verification)
registrationDate: Registration date of the IP asset
owner: Current owner of the IP asset

CoreMetadataModule (Write Operations)
CoreMetadataModule.sol is primarily responsible for writing and updating the metadata of IP assets, with the following functions:
Setting and updating the metadataURI of IP assets
Setting and updating the tokenURI of NFTs
Freezing metadata to make it unchangeable
Managing the hash values of metadata for verification
Storing metadata in the IP asset's storage for easy access by other modules and applications.

Tron Comments

Story's advantages lie in its on-chain infrastructure specifically designed for intellectual property, featuring complete EVM compatibility, high performance, and low-cost transaction capabilities, while achieving programmability and automated revenue distribution for IPs through the IP Account + modular design (licensing, royalties, disputes, grouping, metadata, etc.), along with supporting off-chain legal agreements to enhance compliance; its disadvantages include being in the early stages of the ecosystem, with limited actual application cases and user scale, and the need for further validation of cross-chain interoperability and enforceability in complex legal environments.

IV. Industry Data Analysis

1. Overall Market Performance

1.1. Spot BTC vs ETH Price Trends

BTC

Analysis
Key resistance this week: $113,500, $117,500, $118,800
Key support this week: $109,400, $107,300, $105,200

ETH

Analysis
Key resistance this week: $4,340, $4,500, $4,670
Key support this week: $4,260, $4,200, $4,060

2. Public Chain Data

2.1. Summary of Bitcoin Layer 2 Networks

2.2. Summary of EVM & Non-EVM Public Chains

2.3. Summary of EVM Layer 2 Networks

V. Macroeconomic Data Review and Key Data Release Points for Next Week

Last week, the U.S. economy continued to show signs of weakness, particularly in the labor market: in August, the U.S. added only about 22,000 non-farm jobs, and the unemployment rate rose to 4.3%, the highest level since 2021. Meanwhile, the JOLTS report showed that the number of job openings fell below the number of unemployed for the first time, highlighting increased hiring pressures. At the same time, the Federal Reserve's Beige Book indicated that tariffs are increasing corporate costs, suppressing hiring intentions, and consumer spending is becoming more cautious. As a result, the market highly anticipates that the Fed will implement a rate cut at the September meeting, with most traders betting on a 25 basis point adjustment.

This week (September 8 - September 12), important macro data points include:
September 9: Initial value of the U.S. 2025 non-farm employment benchmark change
September 10: U.S. August PPI year-on-year
September 11: U.S. August unadjusted CPI year-on-year

VI. Regulatory Policies

United States: Significant Relaxation and Structural Advancement of Crypto Regulation

SEC Releases Comprehensive Regulatory Agenda

The U.S. Securities and Exchange Commission has announced a rule-making schedule for the near future, aiming to simplify the regulatory path for crypto asset "offerings and sales," establish exemptions and safe harbor provisions, and clarify that broker-dealer rules apply to crypto assets. Additionally, the SEC is considering allowing crypto assets to be traded on national securities exchanges and alternative trading systems to promote their integration with traditional financial markets.

SEC and CFTC Launch Joint Regulatory Action

On September 2, the SEC and the U.S. Commodity Futures Trading Commission jointly announced that they would issue guidance on "spot commodity trading involving leverage, financing, or margin," aiming to unify regulatory standards and investor protection measures for the digital asset market.

"Project Crypto" Promotes On-Chain Financial Integration

SEC Chair Gary Gensler has launched a plan called "Project Crypto," aimed at promoting the legal and clear operation of digital assets, including securities, commodities, and stablecoins, in the U.S. financial market, reducing barriers between traditional financing tools and ICOs, and allowing crypto assets to be traded on the same platform.

GENIUS Act Provides Foundation for Stablecoin Legislation

The GENIUS Act (Stablecoin Management Act) was signed into law on July 18, requiring stablecoins to be backed one-to-one by U.S. dollars or high-quality low-risk assets and establishing a joint regulatory framework between state and federal authorities. This sets clear standards for financial institutions issuing stablecoins.

U.S. Establishes Strategic Bitcoin Reserves

The U.S. government has established a "strategic Bitcoin reserve" through an executive order in March 2025, using seized bitcoins as reserve assets. As of August 2025, the U.S. holds approximately 198,000 BTC.

European Union: Focus on Foreign Stablecoin Regulation—New Challenges Under the MiCAR Framework

ECB Calls for Strengthened Control Over Foreign Stablecoin Issuers

European Central Bank President Christine Lagarde has suggested that the EU impose the same high regulatory standards on foreign stablecoin issuers as on those within the EU, to avoid the risk of a "run" on reserves during financial stress and emphasized the need for enhanced international cooperation to prevent regulatory arbitrage.

Other Regions: Policy Landscape Taking Shape

United Kingdom: Political Parties Propose Relaxing Regulations to Address Innovation Challenges

Nigel Farage, leader of the UK political party Reform UK, has proposed to revoke the regulatory authority of the UK's Financial Conduct Authority and transfer it to the Bank of England, while easing tax and regulatory barriers, such as allowing the use of cryptocurrencies for tax payments. He aims to position the UK as a leader in the crypto market.

Pakistan Establishes Crypto Regulatory Framework and Launches National Mining/Reserve Project

In March 2025, Pakistan established the "Pakistan Crypto Commission" and in July formed a regulatory body for virtual assets responsible for licensing and regulating virtual asset services. Previously, in May, its CEO announced the establishment of the first government-led strategic Bitcoin reserve and allocated 2,000 megawatts of electricity for Bitcoin mining and AI data center construction.