MEXC Exchange/Learn/Market Insights/Others/MEXC Daily News (June 25)｜Stablecoins Fail the "Three Key Tests," Casting Doubt on Their Role as the Future of Money

MEXC Daily News (June 25)｜Stablecoins Fail the "Three Key Tests," Casting Doubt on Their Role as the Future of Money

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Jul 16, 2025MEXC

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1. Market Overview

According to MEXC data, ETH is currently trading at 2,451.38 USDT, marking a 24-hour increase of +0.16%.

Heatmap of the top 10 USDT-margined perpetual contract trading pairs on the MEXC platform.

For more updates on cryptocurrency prices and macroeconomic trends, visit MEXC Markets.

According to Coinglass , a total of $181 million in positions were liquidated across the crypto market in the past 24 hours. Of this, $72.81 million came from long positions and $108 million from short positions.

For Bitcoin specifically, $9.02 million in long positions and $23.35 million in short positions were liquidated. For Ethereum, $29.72 million in longs and $35.48 million in shorts were wiped out.

Additionally, a total of 76,178 traders were liquidated globally over the past 24 hours. The largest single liquidation order occurred on Binance (BTCUSDT) with a value of $2.65 million.

3. Industry Analyst Insights

3.1 Trader Eugene: Middle East Tensions Subside, Market Resumes Downtrend—Adopts Long BTC, Short Altcoins Strategy

Trader Eugene shared on social media that he has closed all long positions—except for some BTC holdings—and has started shorting selected altcoins. In his view, the market impact of the Middle East tensions has largely faded, and the overall trend remains weak.

He noted that the recent BTC rebound from $99,000 to $106,000 appears to have run its course, and the market is likely returning to its previous downtrend. In response, he plans to adopt a "long BTC, short altcoins" strategy in the short term.

4. Industry News

4.1 BIS: Stablecoins Fail the “Three Key Tests,” Unlikely to Become Core of Future Monetary System

According to The Block, the Bank for International Settlements (BIS) has released a report stating that stablecoins have failed to meet the "three key tests" necessary to become pillars of the monetary system—namely, singularity, resilience, and integrity.

“The role of innovations like stablecoins in the future monetary system remains to be seen,” the BIS noted, “but their poor performance in the three ideal characteristics of money makes them unlikely to serve as the foundation.”

Nonetheless, the BIS acknowledged that stablecoins do have certain advantages, such as programmability, anonymity, and ease of access. Their technical features could also enable lower costs and faster transactions, particularly in cross-border payments.

4.2 Guotai Junan International Receives Regulatory Approval to Offer Virtual Asset Trading in Hong Kong

On June 24, Guotai Junan International (1788.HK) received approval from the Hong Kong Securities and Futures Commission (SFC) to upgrade its existing securities license to include virtual asset trading and advisory services.

Following the upgrade, clients can directly trade cryptocurrencies such as Bitcoin and Ethereum, as well as stablecoins like Tether, on the firm’s platform. Guotai Junan International thus becomes the first Hong Kong-based Chinese brokerage to offer a full suite of virtual asset-related services, including trading, consulting, and product issuance and distribution.

The company has actively expanded its virtual asset business in recent years by launching structured products like virtual asset ETFs, offering trading facilitation, and participating in digital bond issuances—contributing to Hong Kong’s development as an international virtual asset hub.

4.3 U.S. Senate Banking Committee Releases Framework for Digital Asset Market Structure Legislation

According to an official release, U.S. Senate Banking Committee Chair Tim Scott, along with Digital Assets Subcommittee Chair Cynthia Lummis and Senators Bill Hagerty and Thom Tillis, unveiled a set of legislative principles aimed at guiding comprehensive market structure regulation for digital assets.

The principles will inform discussions and negotiations with industry participants, legal and academic experts, and government stakeholders on drafting relevant legislation.

The framework emphasizes the need for legal clarity around digital assets, including a clear distinction between digital asset securities and digital asset commodities. It also calls for predictable regulation, enhanced legal precision, and much-needed regulatory certainty. Moreover, the principles suggest that regulatory agencies must have clearly defined jurisdictions and acknowledge that not all distributed ledger technologies should fall under the oversight of the SEC or CFTC.

5. Market Highlights

The New York Stock Exchange Arca has filed a 19b-4 application with the U.S. Securities and Exchange Commission (SEC) seeking approval to list and trade shares of the Truth Social Bitcoin and Ethereum ETF, B.T. under Rule 8.201-E. The proposed ETF will track the performance of both Bitcoin and Ethereum. The application is currently under SEC review.

5.2 SEC Delays Decision on 21Shares Spot Polkadot ETF

The U.S. Securities and Exchange Commission has postponed its decision on the 21Shares Spot Polkadot ETF.

5.3 NYSE Representatives Meet with Crypto Regulatory Working Group to Discuss Oversight Frameworks

According to an SEC memorandum, representatives from the New York Stock Exchange met with the Crypto Asset Regulatory Working Group on June 24 to discuss regulatory issues surrounding digital assets. The NYSE delegation included General Counsel Jaime Klima, Chief Product Officer Jon Herrick, Deputy General Counsel Patrick Troy, and Chief Regulatory Officer Tony Frouge.

Key topics included:

Promoting a level playing field by ensuring equal treatment of market participants and avoiding inconsistent regulations for similar assets and entities;
Exploring considerations around trading tokenized equities and the structural support needed to facilitate such trades;
Discussing crypto-related exchange-traded products (ETPs), including listing standards for spot crypto ETFs and the broader regulatory treatment of crypto-backed financial products.

5.4 Flashnet to Launch Fully Regulated Bitcoin-Backed Stablecoin USDB

Flashnet, a non-custodial Bitcoin trading platform, is set to launch its first fully regulated Bitcoin-backed stablecoin, USDB. The stablecoin will be issued by Brale, with Magic Eden serving as a distribution partner.

6. Project Updates

1）DeFi Dev Corp will launch a WIF validator node, planning to share WIF staking rewards with the community.

2）Layer-2 blockchain Codex now supports native USDC.

3）Matter Labs has released a new RISC-V-based zero-knowledge prover called “Airbender”.

4）Ledger will launch a no-KYC Recovery Key card that can store and recover 24-word seed phrases.

5）Fuel Network Foundation completed a $750,000 FUEL token buyback.

6）Sahara AI unveiled its tokenomics, with 8.15% allocated for airdrops.

7）Aptos Labs and Jump Crypto will jointly launch a decentralized hot storage network named “Shelby”.

8）Decentralized AI protocol Prime Intellect announced its open inference dataset and planet-scale synthetic data generation model SYNTHETIC-2.

9）Mastercard has partnered with Chainlink to integrate Chainlink’s interoperability protocol.

10）Strategy officially launched its AI data management solution, Strategy Mosaic.

7. Project Funding

1）DeFi infrastructure firm Yield.xyz raised $5 million in a strategic round.

2）On-chain commodity derivatives DEX Sphinx raised $2 million in a Pre-Seed round.

3）Nano Labs signed a $500 million private convertible note deal for BNB strategic reserves.

4）Digital Asset, developer of Canton, completed a $135 million strategic round.