9.28 AI Daily Report: Controversy Arises from US Military Culture Reform, Regulatory Landscape in the Encryption Industry Continues to Change

1. Headlines

1. U.S. Defense Secretary Hegseth recalls 800 generals, raising concerns about military cultural reform.

U.S. Secretary of Defense Lloyd Austin urgently recalled 800 senior military officers, sparking heated discussions and concerns about military culture reform. He plans to elaborate on the "warrior spirit," emphasizing the need to enhance the combat will of the troops, along with the policy of renaming the Department of Defense to the "Department of War."

Hegses's move aims to strengthen military resolve, but also reveals an internal trust crisis. Analysts believe this may affect the United States' leadership position on global security issues. On one hand, reinforcing military awareness helps boost morale; on the other hand, overemphasizing combat ideology may provoke doubts among soldiers and weaken military cohesion.

In addition, the renaming of the "Ministry of War" has also been highly controversial. Supporters believe it reflects the military's functions and aligns with reality; opponents worry it will intensify a mindset for external wars and damage the image of peace. Overall, Hegses's move aims to reshape military culture, but the approach is too radical, which may lead to internal divisions within the military and international backlash.

2. Hyperdrive suspends all markets, with two major positions attacked leading to a significant security incident.

Hyperdrive, a decentralized finance protocol within the Hyperliquid ecosystem, reported that two user positions collateralized with thBILL were attacked. In response, the protocol has suspended all money markets and initiated a comprehensive investigation.

It is reported that the attacker exploited protocol vulnerabilities to manipulate prices, leading to the forced liquidation of two large positions. Hyperdrive responded quickly by suspending all market trading to prevent further spread. However, this incident has sparked widespread concerns about the security of DeFi.

Analysis points out that the Hyperliquid ecosystem relies solely on four validation nodes for operation, making it overly centralized and a target for attacks. This incident once again highlights the technical flaws of decentralized finance, necessitating enhanced auditing and upgrades. It also warns regulatory agencies that DeFi poses systemic risks, requiring the establishment of corresponding regulatory frameworks to protect investors' interests.

3. Multiple asset management companies are revising their Solana ETF application documents, and analysts expect approval within weeks.

The centralized revisions of Solana ETF application documents by several well-known asset management companies indicate that a spot Solana ETF supporting staking features may be listed within weeks. This Friday, companies such as Fidelity and Franklin Templeton updated their respective application documents, clarifying the details of staking activities.

Analysts believe that this coordinated application revision activity indicates close collaboration between asset management companies and the U.S. Securities and Exchange Commission, and these Solana ETF products are expected to officially launch in the market within a few weeks. Once approved, they will attract a significant influx of funds into the Solana ecosystem, boosting the price of SOL.

In the long run, the launch of the Solana ETF marks the official entry of institutional investors into this emerging public chain. Compared to Bitcoin and Ethereum ETFs, Solana products may offer investors higher returns, but they also face greater risks. The future development prospects will depend on the continued prosperity of the Solana ecosystem.

4. South Korean actress Hwang Jung-eum involved in cryptocurrency scandal, court finds she is suspected of embezzling a large sum.

South Korean actress Hwang Jung-eum has become the center of a sensational cryptocurrency scandal that has shocked fans and the entertainment industry. The court found that she is suspected of embezzling millions of dollars in cryptocurrency funds.

According to reports, Huang Zhengyin has a close relationship with a cryptocurrency company named "Sponf". The company raised about $250 million through a token issuance in 2021 but later fell into financial difficulties. Preliminary court investigations found that Huang Zhengyin may have been involved in the illegal outflow of the company's funds.

This incident has once again raised people's concerns about cryptocurrency regulation. Analysis indicates that the lack of effective regulation is the root cause of the frequent occurrence of such scandals. Some criminals exploit the anonymity and cross-border nature of cryptocurrencies to engage in money laundering, fraud, and other illegal activities. Therefore, countries around the world should strengthen cooperation and establish a unified regulatory framework.

5. TRON network report shows record token transfer volume, raising expectations for price volatility.

On September 25, the TRON network reported a record increase in token transfers, reaching 2,749,327.78, far exceeding recent averages. Experts indicate that this surge may be due to whale activity, exchange trading, new smart contracts, or changes in decentralized finance liquidity, which could impact the price and market sentiment of TRON.

Analysts point out that large transfers of tokens often indicate significant price fluctuations. If institutional investors are reallocating, it may drive prices up; however, if whales are selling off to take profits, it could lead to a price decline.

In addition, the newly launched DeFi applications may also lead to a significant increase in token liquidity, thereby affecting the price discovery mechanism. Overall, this unusual behavior of the TRON network is worth continuous attention, as it may have a profound impact on the cryptocurrency market.

2. Industry News

1. Multiple asset management companies are revising their Solana ETF application documents, indicating that approval for listing is imminent.

This Friday, asset management companies such as Fidelity, Franklin Templeton, CoinShares, WisdomTree, Grayscale, Canary Capital, and VanEck updated their respective S-1 application documents for Solana ETFs, specifying details of staking activities. Analysts believe that this highly coordinated action indicates smooth communication with the U.S. Securities and Exchange Commission ( SEC ), and it is expected that the Solana spot ETF may be approved for launch in a few weeks.

These revised documents for the first time include the specific mechanism for staking SOL tokens to earn additional returns, reflecting the strong interest of institutions in the Solana ecosystem. Once approved, the Solana ETF will become another significant milestone product in the crypto market following Bitcoin and Ethereum, expected to attract more institutional funds and drive up the price of SOL. However, it is also necessary to be vigilant about the risks of regulatory approval and post-listing volatility.

2. The large-scale sell-off by Bitcoin miners has caused market turbulence, can the new $60 million in funds cushion the selling pressure?

In September, Bitcoin miners transferred over 120,000 Bitcoins to exchanges, with daily sales reaching as high as 5,000 to 7,000 coins, putting significant selling pressure on the market. However, at the same time, the market also saw an influx of $60.51 million in new capital, and the NVT ratio remained at a healthy level, with market sentiment gradually improving. How will this tug-of-war between bulls and bears affect Bitcoin's short-term trend?

Analysts point out that miners' sell-offs are often to cash out for operational costs, which is normal behavior. However, such a large-scale concentrated sell-off is bound to put pressure on prices. Nevertheless, the continued inflow of new funds indicates investors' confidence in the long-term prospects of Bitcoin, which is expected to hedge against the impact of miners' sell-offs.

Overall, the current supply and demand pattern of Bitcoin remains balanced, but investors need to closely monitor the subsequent capital flows and miners' selling trends, and carefully assess the potential upside and downside risks.

3. XRP supply crisis worsens, a 600% surge may be repeated?

The XRP market is brewing an unprecedented supply shock, with multiple factors potentially triggering a explosive price surge. As institutional funds flow in, regulations clarify, and global liquidity increases, the tight supply situation of XRP may become even more severe than in November 2023.

Analysts point out that when the trading volume exceeds $25 billion on that day, the price of XRP could potentially achieve an 8-10x growth in a very short time. This prediction is based on the fact that XRP supply is highly concentrated in the hands of a few large holders. Once these "whales" dominate the market direction, it will trigger severe fluctuations.

The latest XRP ETF application documents submitted to the U.S. Securities and Exchange Commission also explicitly warn for the first time about the risks of "whale manipulation." However, a supply shortage is expected to drive up the price of XRP, providing substantial returns for long-term holders. But investors should also be wary of the potential risks that come with it.

( 4. Moody's Warns: The Crypto Wave Driven by Stablecoins Threatens the Monetary Sovereignty of Emerging Markets

International credit rating agency Moody's recently issued a report warning that the wave of cryptoization driven by stablecoins is posing an increasingly severe challenge to the monetary sovereignty and financial stability of emerging markets. The report points out that as stablecoins and other cryptocurrencies accelerate their global adoption, emerging markets face the risk of weakened monetary sovereignty.

Stablecoins anchored to fiat currencies such as the US dollar are widely penetrating the market, which may erode central banks' traditional ability to control interest rates and exchange rates. Moody's particularly emphasized that if individuals shift their bank deposits to stablecoins or crypto wallets, the banking system may face deposit outflows, which not only affects liquidity but could also undermine overall financial stability.

Data shows that by 2024, the number of global digital asset holders has reached approximately 562 million, a year-on-year increase of 33%, with the fastest growth in emerging markets such as Latin America, Southeast Asia, and Africa. Moody's warns that if regulatory gaps are not promptly addressed, the wave of cryptoization could further exacerbate currency and financial security risks in emerging markets.

) 5. Ethereum ETF outflows hit a record $79.5 billion, ETH price tests $4,000 support.

The price of Ethereum has dipped to the key support level of $4000, impacted by the outflow of ETF funds, indicating a change in investor sentiment in the cryptocurrency market. According to SoSoValue data, last week the Ethereum spot ETF experienced a net outflow of $796 million in one week, with all nine ETFs seeing net outflows.

This massive capital outflow reflects investors' concerns about the future prospects of Ethereum. Recent strong economic data from the United States has weakened market expectations for multiple rate cuts by the Federal Reserve in the fourth quarter, exacerbating the cautious sentiment among institutional investors. Meanwhile, the open contracts in the Ethereum market plummeted by $7 billion, yet the leverage ratio reached a nearly four-month high, raising concerns among market experts about this abnormal divergence.

Analysts warn that if Ethereum cannot stabilize at the key support level of $4000, it may further decline to lower levels such as $3515, $3020, or even $2772. Investors need to be alert for potential severe fluctuations and closely monitor subsequent changes in fundamentals.

3. Project News

1. Hyperdrive: The root cause of the protocol issue has been identified and rectified, and the compensation plan will be implemented soon.

Hyperdrive is a decentralized perpetual contract trading platform designed to provide users with an efficient and secure derivatives trading experience. The protocol recently encountered a security incident, resulting in a temporary disruption of some markets.

On September 28, Hyperdrive officially announced the latest progress, stating that the root cause affecting the protocol has been identified and rectified. The affected accounts have also been identified, and a compensation plan will be implemented soon. It is expected that market functions will return to normal operation within 24 hours.

The impact of this incident is limited, only involving two markets of Hyperdrive. The official reiterates that the team is working with top security and forensic experts, and a full post-incident report will be released after the investigation is completed. Users should temporarily refrain from interacting with the protocol or sending funds to its smart contracts.

This incident highlights the shortcomings of Hyperdrive in terms of security and transparency. As an emerging perpetual contract platform, Hyperdrive needs to strengthen risk management and improve system stability to gain market trust. At the same time, timely and efficient compensation responses will also test the project's operational capabilities.

Industry analysts point out that although the Hyperdrive incident is a small-scale event, it still reflects the ongoing security risks in the DeFi sector. In the future, the introduction of regulatory policies may drive an overall improvement in the industry's security standards.

2. Aster trading volume surged to record levels, triggering a wave of user liquidations.

Aster is an emerging decentralized derivatives exchange that supports multi-chain perpetual contract trading. Recently, the platform has seen explosive growth in trading volume, with daily trading volume once exceeding $46 billion, surpassing industry giant Hyperliquid.

The surge in trading volume is mainly due to the abnormal price of the Plasma### perpetual contract on Aster, which skyrocketed to nearly $4, while the price on other platforms was only around $1.3. This price discrepancy led to a large number of users being unexpectedly liquidated, resulting in abnormal transaction fees.

Aster attaches great importance to this matter, swiftly providing full compensation to affected accounts, covering trading losses and liquidation fees, successfully restoring user confidence. However, the root cause of the price volatility remains to be determined; whether there are technical flaws or subjective manipulation will affect Aster's long-term development.

Analysts believe that the Aster incident highlights the shortcomings of emerging exchanges in terms of price discovery, risk control, and user protection, and that there is a need to strengthen the construction of relevant mechanisms. At the same time, the risks of over-reliance on algorithmic pricing are also worth being cautious about.

However, behind the high trading volume of Aster, there is also a reflection of the continuous increase in demand for derivatives trading. In the future, with the clarification of regulatory policies and the strengthening of user education, the derivatives market is expected to further expand.

3. Multiple asset management companies are revising Solana ETF application documents to support the staking yield model.

Several top asset management companies in the United States have recently revised their Solana ETF application documents, clearly stating their support for staking Solana tokens to earn additional returns.

Specifically, companies such as Fidelity, Franklin Templeton, CoinShares, wise, Grayscale, Canary Capital, and VanEck have updated their S-1 application documents, detailing the specifics of staking activities. Among them, Fidelity, which manages the second-largest Bitcoin ETF, stated that it will stake part or all of its Solana holdings to earn returns.

Analysts believe that the centralized revision of this application document reflects close cooperation between asset management companies and the U.S. Securities and Exchange Commission, and it is expected that the Solana ETF product will likely be approved for listing within weeks.

Once the Solana ETF is launched, it will mark the official entry of cryptocurrency investment models into the staking yield era. Compared to passive holding, the staking model for earning yields will bring higher returns to investors, thereby attracting more funds.

At the same time, the Solana ecosystem will also achieve significant development. The influx of substantial institutional funds will further enhance the security and liquidity of the Solana network, laying a foundation for the prosperity of ecosystem applications.

However, the emergence of the staking yield model also means that investors need to have higher requirements for the operational capabilities of the project party to ensure the safety of funds and returns.

( 4. Pi Network signs contract with Sign Protocol, a new round of launch is expected.

Pi Network is a decentralized cryptocurrency network aimed at achieving fair distribution through mobile mining. On September 28, Pi Network announced a partnership with Sign Protocol, paving the way for its native token PI to be listed on more platforms.

Sign Protocol is a multi-chain identity authentication solution for We projects. By collaborating with it, Pi Network can leverage the technical support of Sign Protocol to meet the identity verification requirements of mainstream exchanges.

This cooperation is an important step for Pi Network in its launch process. According to the official plan, Pi Network will achieve its mainnet launch in the fourth quarter of this year, and the token PI will gradually be listed for trading on mainstream exchanges.

Analysts believe that the launch of Pi Network will further enhance its visibility and liquidity, injecting new momentum into ecological development. However, it is also necessary to remain vigilant about the volatility of token prices in the early stages of the launch.

At the same time, the Pi Network will face strict compliance reviews upon launch. The project team needs to ensure transparency and fairness in token allocation and issuance models to avoid regulatory disputes.

Overall, the launch of Pi Network will be a brand new milestone, and its success or failure will significantly impact the development prospects of the entire mobile mining model.

) 5. UXLINK releases a security incident update, will deploy a new contract and conduct a 1:1 token swap.

UXLINK is a We social infrastructure project that suffered a $11.3 million hacking incident on September 22. On September 28, the project released a major security incident update detailing its response measures.

According to the update, UXLINK will deploy a new smart contract on the Ethereum mainnet with a total supply of 10 billion tokens. Old UXLINK token holders can exchange for the new tokens at a 1:1 ratio.

In addition, UXLINK will strengthen security protection and enhance the safety of user funds. The project team stated that although this incident has caused significant losses, the team is still working hard to restore user confidence and ensure the long-term development of the ecosystem.

Analysts point out that the hacker attack has dealt a heavy blow to UXLINK, making it difficult to fully rebuild user confidence in the short term. However, the quick response and transparent handling at least reflect the sincerity of the project team.

In the future, UXLINK needs to increase its investment in security, improve its vulnerability auditing and risk control mechanisms in order to secure a place in the We social infrastructure field. At the same time, the smooth implementation of the token exchange arrangement will also determine whether UXLINK can regain market recognition.

6. Stable launches USDT native payment chain, challenging DeFi dominance.

Stable is a Layer 1 blockchain project focused on USDT, aiming to provide a high-performance, low-cost native payment experience for USDT.

The project utilizes a dedicated blockchain tailored for USDT, enabling advantages such as gas-free transfers and sub-second finality. With USDT's circulation exceeding $15 billion and serving over 350 million users, Stable meets the critical demands in areas such as centralized exchanges, DeFi, and international payments.

The "native USDT" narrative of Stable has brought new opportunities for its development in the DeFi sector. Currently, Stable has become a leader in emerging stablecoin infrastructure, signaling a trend of transitioning from general-purpose L1 to dedicated chains.

Analysts believe that the emergence of Stable will bring unprecedented liquidity and use cases to USDT, potentially challenging the dominance of public chains like Ethereum in the DeFi space.

At the same time, Stable is also facing competition from other stablecoin projects. In the future, whether it can occupy the market with its technological advantages and first-mover advantages remains to be seen.

Overall, Stable has brought a new development path for USDT, and its success or failure will greatly influence the landscape of the entire stablecoin ecosystem.

4. Economic Dynamics

1. The divergence between the Federal Reserve's hawks and doves intensifies, with inflation expectations becoming polarized.

Economic Background: The U.S. economy performed strongly in the third quarter of 2025, with an annualized GDP growth rate reaching 3.8%, far exceeding expectations. The job market remained robust, with the unemployment rate holding steady at a low 3.5%. However, the inflation rate rebounded to 6.1% in August, higher than market expectations, raising concerns about the Federal Reserve's path for interest rate hikes.

Important event: The Federal Reserve raised interest rates by 25 basis points as expected in September, but there are internal disagreements about the future policy path. Hawkish officials believe that inflation pressures remain severe and that aggressive rate hikes are necessary to prevent inflation expectations from spreading. Meanwhile, dovish officials are worried that excessive tightening could lead to a hard landing for the economy.

Market reaction: U.S. stocks briefly fell after the Federal Reserve meeting but quickly rebounded, with investors maintaining a cautiously optimistic outlook on the economic prospects. The bond market, on the other hand, reflected a divergence in inflation expectations, with long-term Treasury yields rising, indicating market concerns about the persistence of inflation.

Expert analysis: Former Federal Reserve Chairman Ben Bernanke stated that the Federal Reserve should maintain policy flexibility and closely monitor data changes. He believes that if inflation data continues to soften, the Federal Reserve may pause interest rate hikes before the end of the year. However, if inflation rebounds again, further rate hikes will be needed to prevent inflation expectations from spreading. Goldman Sachs' chief economist, on the other hand, expects that the Federal Reserve will ultimately end the current rate hike cycle in early 2026.

2. The European energy crisis is intensifying, and the risk of economic recession is increasing.

Economic Background: In the third quarter of 2025, the Eurozone economy fell into a mild recession, with quarterly GDP decreasing by 0.2% year-on-year. The unemployment rate slightly rose to 7.1%, but the overall job market remained relatively stable. The inflation rate climbed to 9.5% in August, reaching a historical high.

Important events: Russia further reduces natural gas supplies to Europe, leading to increased energy shortages among EU member states. Countries like Germany and France are forced to restart coal-fired power plants to ensure electricity supply. The EU has also signed long-term natural gas supply contracts with other countries through the "Union Gas Purchase" program.

Market reaction: European stock markets have plummeted significantly under the impact of the energy crisis, severely undermining investor confidence in the economic outlook. The euro to dollar exchange rate fell below the 0.96 mark in September, hitting a 20-year low. The bond yield curve has inverted, indicating an increased risk of economic recession.

Expert Analysis: The International Monetary Fund has lowered its economic growth forecast for the Eurozone in 2025 to 0.5%, warning that Europe will face a more severe economic recession if natural gas supplies are disrupted this winter. The chief European economist at Deutsche Bank believes that the European Central Bank should continue to raise interest rates to combat inflation, but it needs to proceed cautiously to avoid triggering financial turmoil.

3. China's economy stabilizes and rebounds, with impressive export performance.

Economic Background: China's Gross Domestic Product ### GDP ### grew by 4.8% year-on-year in the third quarter of 2025, a rebound compared to the first half of the year. Industrial production and fixed asset investment data both exceeded expectations, indicating that the economy is gradually recovering. However, consumption data remains weak, reflecting that domestic demand is still relatively sluggish.

Important event: China's exports performed strongly in the third quarter, with a year-on-year growth of 12.5%, mainly due to a significant increase in exports to the United States and ASEAN countries. The exchange rate of the RMB against the US dollar broke through the 7.0 mark in September, benefiting exports. The Chinese government has also launched a series of support measures, including tax cuts and reductions, and increased investment in infrastructure.

Market Reaction: The A-share market showed a fluctuating upward trend in the third quarter, with the Shanghai Composite Index rising nearly 5%. The RMB appreciated against the US dollar by more than 2%. Bond yields slightly declined, reflecting the market's optimistic outlook on the economic prospects.

Expert analysis: The World Bank has raised its forecast for China's economic growth in 2025 to 5.0%, believing that exports and investments will continue to support economic growth. However, weak consumption and the difficulties in the real estate sector may become a drag. Goldman Sachs Asian economists stated that the Chinese economy is in the early stages of recovery, and the government may further intensify easing efforts in the first half of next year.

5. Regulation & Policy

1. SEC Commissioner Hester Peirce calls for easing cryptocurrency regulation

Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC), delivered a speech at the Coin Center gala, publicly apologizing for the SEC's past harsh stance towards the crypto industry and suggesting that the regulatory agency is opening a new chapter. Nicknamed the "Crypto Mom," Peirce urged the crypto industry to seize this historic opportunity of "regulatory clarity replacing ambiguity" to accelerate innovation and development.

Policy Background: The SEC has long taken a cautious approach to cryptocurrency regulation and has been criticized for being overly strict. Pierce, as a pro-crypto voice within the committee, has consistently advocated for a more open and inclusive regulatory approach. This speech is seen as an important signal of a shift in U.S. crypto regulation.

Policy content: In her speech, Peirce acknowledged that the SEC's past regulation of the cryptocurrency industry has been inadequate and called for a relaxation of regulations to promote innovation. She stated that the SEC should provide clearer compliance guidance for cryptocurrency companies rather than simply suppressing them.

Market Reaction: Pierce's speech was warmly welcomed by the crypto industry. Industry insiders believe that this marks a gradual shift in the SEC's attitude towards cryptocurrency, and more friendly regulatory policies may be introduced in the future. Investors are optimistic about this, expecting it to bring new development opportunities to the crypto market.

Expert Opinion: Crypto legal expert Caitlin Long stated that Pierce's speech conveyed a positive signal that the SEC is seriously listening to the industry's voice. She believes that the SEC should maintain open communication with the industry and develop a practical regulatory framework.

( 2. Moody's warns: The wave of crypto driven by stablecoins poses challenges for emerging markets.

The international credit rating agency Moody's recently released a report warning that the wave of cryptoization driven by stablecoins poses an increasingly severe challenge to the monetary sovereignty and financial stability of emerging markets.

Policy Background: With the accelerated global adoption of cryptocurrencies such as stablecoins, emerging markets face the risk of weakened monetary sovereignty. Stablecoins pegged to fiat currencies like the US dollar are widely penetrating, potentially eroding central banks' traditional ability to manage interest rates and exchange rates.

Policy Content: The Moody's report indicates that if individuals shift their bank deposits to stablecoins or cryptocurrency wallets, the banking system may face a loss of deposits, which could not only affect liquidity but also potentially undermine overall financial stability.

Market reaction: After the report was released, the stock prices of some cryptocurrency exchanges and wallet service providers in emerging market countries fell. Investors expressed concerns over the tightening of cryptocurrency regulations in emerging markets.

Expert Opinion: Cryptocurrency analyst Ric Edelman stated that stablecoins do pose a certain threat to the monetary sovereignty of emerging market currencies, but at the same time, they provide these countries with a new financial tool. He suggested that governments in emerging markets should actively embrace cryptocurrencies and formulate corresponding regulatory policies, rather than adopting a prohibitive stance.

) 3. New EU Crypto Regulation Faces Industry Doubts: Infringes on Privacy or Violates the Decentralized Nature of Cryptocurrency

The latest EU cryptocurrency regulatory draft has sparked widespread skepticism in the industry. The draft requires cryptocurrency companies to scan users' private information to combat money laundering and terrorist financing activities.

Policy Background: In order to strengthen the regulation of cryptocurrencies, the European Commission has proposed a new draft regulation on markets in crypto-assets (MiCA). This includes provisions requiring crypto companies to scan users' private information.

Policy content: According to the draft, crypto companies are required to scan users' private information, including transaction records, wallet addresses, etc., and report suspicious activities to regulatory authorities. Violators will face hefty fines. This regulation aims to combat illegal activities conducted using cryptocurrencies.

Market Reaction: The draft sparked strong dissatisfaction within the industry as soon as it was released. Cryptocurrency companies and the community criticized the regulation for infringing on user privacy rights and going against the decentralized nature of cryptocurrency.

Expert Opinion: Ethereum founder Vitalik Buterin bluntly criticized this regulation. He warned that the practice of mandating the scanning of private encrypted messages in the name of protecting children would, in fact, undermine the foundations of digital security and personal privacy.