4.28 AI Daily Report Ethereum Scalability New Progress: Gas Limit May Rise 100 Times Within 4 Years

1. Headlines

1. Ethereum proposal EIP-9698 sparks heated discussions: Gas Limit will increase 100 times in 4 years.

Ethereum researchers have proposed a new proposal EIP-9698, suggesting an exponential increase of 100 times in the Gas Limit of the Ethereum network over the next 4 years. The proposal aims to address the issue of miner voting coordination, establish a predictable and sustainable growth trajectory for the Gas Limit, enhance transparency and coordination, and maintain backward compatibility.

The detailed content of the proposal is that within the first two years, (, which is 164,250 epochs ), the Gas Limit will gradually increase by a factor of 10, until a final adjustment of tenfold increase is made. Theoretically, if the Gas Limit increases by 100 times, Ethereum's transactions per second ( TPS ) are expected to rise to 2000 transactions. This proposal needs to be approved by client voting in order to be implemented.

This expansion attempt is another important progress following the increase of the Gas limit from 30 million to 36 million in February. The proposal initiator, Feist, pointed out that the gradual increase plan allows node operators enough time for optimization. Meanwhile, developers are testing the EIP-9678 proposal, which plans to implement a fourfold increase in the Gas limit during the Fusaka upgrade at the end of 2025.

The proposal sparked heated discussions as soon as it was launched. Proponents argue that increasing the Gas Limit is necessary to respond to user demand and increase network throughput, which will help Ethereum remain competitive. However, there are also concerns that the rapid growth of gas limit may exacerbate the risk of centralization and affect network security.

2. Trump crypto project WLFI founder meets with CZ to discuss global expansion of cryptocurrency

The founders of the Trump family's crypto project World Liberty Financial (WLFI), Zach Witkoff, Zak Folkman, and WatcherChase recently met with founders in Abu Dhabi to discuss topics such as promoting the adoption of cryptocurrency globally and the establishment of industry standards.

Previously stated that on that day, there was a meeting with Zach Witkoff and Bilal Bin Saqib, expecting that traditional media might fabricate negative reports about it, but emphasized that they will continue to focus on building. The content of the meeting mainly revolved around how to expand global cryptocurrency adoption, establish new standards, and elevate cryptocurrency to new levels.

WLFI was initiated by members of the Trump family, aiming to create a decentralized financial ecosystem. The project has previously sparked controversy, with some opinions suggesting that it poses regulatory risks. However, WLFI insists that the project complies with relevant regulatory requirements.

Industry insiders point out that the meeting between WLFI and the parties reflects the trend of integration between traditional finance and the cryptocurrency ecosystem. As regulation becomes increasingly clear, there will be more cases of traditional institutions and prominent figures entering the crypto space. In the future, cryptocurrencies are expected to gain broader recognition and adoption worldwide.

3. Swiss supermarket chain Spar plans to fully support Bitcoin payments.

Swiss supermarket chain Spar plans to fully launch Bitcoin payments in Switzerland after a successful pilot program. The Spar branch in Zug began accepting Bitcoin payments via the Lightning Network in early April, using DFX Swiss's OpenCryptoPay platform.

OpenCryptoPay is an open peer-to-peer standard designed for face-to-face cryptocurrency transactions. Spar supermarket reported that the Bitcoin payment pilot received positive feedback from customers, so they decided to promote this payment method nationwide.

Bitcoin, as a peer-to-peer digital currency, has characteristics such as decentralization and being borderless, and has gained increasing recognition and application globally in recent years. The Swiss government has an open attitude towards cryptocurrencies and has established relevant regulatory frameworks.

Industry insiders believe that the approach taken by Spar supermarket marks another significant breakthrough for Bitcoin in the physical retail sector. As more merchants and consumers accept Bitcoin payments, this new payment method will gain wider application scenarios.

However, some analysts also remind that the price of Bitcoin is highly volatile, and risk control should be taken into account when using it. In addition, the irreversible nature of Bitcoin transactions may also lead to controversies. Overall, the promotion of Bitcoin as a payment method requires the joint efforts of all relevant parties.

4. Analysts warn: XRP may test the key support level of $1.25 in the short term.

Analysts warn that the XRP price may retest the key support level of $1.25 in the short term. Although Bitcoin recently surged over 7% to $95,100, driving mainstream tokens like XRP, Solana, and Cardano to rise to varying degrees, the long-term downtrend line of XRP has still not been effectively broken.

Analysts point out that the price movement of XRP heavily depends on the resistance at $2.73 and the support at $1.25 in the short term. If it can effectively break through the resistance at $2.73, there is a 73.62% upside potential, with a target price of $3.53. However, if it loses the key support level of $1.25, it may further dip to $0.85.

The key factors that affect the price of XRP include regulatory clarity, institutional investors' willingness to enter the market, and Ripple's business development. As Ripple's lawsuit with the SEC draws to a close, the regulatory environment may become clearer, which is conducive to a stable rebound in XRP prices.

However, some analysts believe that even if the lawsuit results are favorable for Ripple, XRP will still struggle to make significant moves in the short term, as the price has already reflected optimistic expectations. Investors need to be cautious of the potential pullback risks for XRP.

Overall, the long-term prospects for XRP are promising, but there is still uncertainty in the short term. Investors need to closely monitor XRP price trends and cautiously manage risks.

5. Several tech giants in the United States are set to announce their earnings reports this week, with a focus on the impact of tariffs.

This week, several American tech giants including Meta, Microsoft, Amazon, and Apple will successively announce their latest financial reports, and the market will closely monitor the potential tariff impacts on their supply chains and imported products from overseas.

Analysis suggests that Amazon and Apple may be the two tech giants most severely impacted by the tariff storm. Amazon will announce its earnings report after the market closes on May 1, (. As the world's largest cross-border e-commerce platform, its market revenue heavily reliant on Asian suppliers and retailers may suffer significantly from tariffs.

Apple Inc. is also facing a similar dilemma. As one of the largest technology companies in the world, Apple's supply chain and manufacturing are highly dependent on China. If there are significant changes in tariff policies, both Apple's revenue and profit margins will be adversely affected.

In addition to the impact of tariffs, the market will also pay attention to the latest developments of tech giants in the field of artificial intelligence )AI(. With the rapid advancement of AI technology, companies like Google and Meta are increasing their investments in AI to ensure they hold a competitive edge in future technology competitions.

In addition, the slowdown of the US economy and high inflation will also affect the performance of technology companies. Against the backdrop of continuously rising interest rates, the financing costs for technology companies may further increase, putting certain pressure on business expansion.

Overall, the financial reports released this week will provide valuable information to the market, helping investors better assess the development prospects of the technology industry.

2. Industry Data

) 1. BTC Recent transaction price 94079.1000 USD, intraday drop -0.5000%.

2. ETH

Recent transaction price is 1803.7400 USD, daily increase +0.2000%.

3. ALPACA

Recent transaction price 0.2261 USD, daily increase +19.8999%.

4. SUI

Recent transaction price: 3.6138 USD, daily increase: +1.9000%.

5. GT

Recent transaction price is $22.3140, with a daily decline of -3.6000%.

3. Industry News

1. Bitcoin is expected to break through the $100,000 barrier after a short-term pullback.

The price of Bitcoin experienced a slight pullback on April 28, briefly falling below the $93,000 mark. Analysts believe this is just a short-term consolidation phase for Bitcoin before breaking through the $100,000 level. Two reversal indicators have turned bearish, and the stochastic indicator has risen to 95%, suggesting short-term downside risks. However, analysts expect Bitcoin to soon break through the resistance levels of $94,000-$95,000, moving towards the $100,000 target.

Bitcoin has performed strongly recently, mainly driven by factors such as continuous buying by institutional investors, improvements in the regulatory environment, and a recovery in market sentiment. Data shows that last week, the net inflow of Bitcoin spot ETFs reached $3 billion, reflecting strong institutional demand. Meanwhile, the U.S. Securities and Exchange Commission has taken an open stance towards cryptocurrency regulation, which is expected to promote industry development.

However, investors should be wary of the risks brought by short-term corrections. Analysts warn that after Bitcoin breaks the $100,000 mark, it may face certain profit-taking pressure. In addition, changes in the macroeconomic and geopolitical landscape may also affect the trends in the cryptocurrency market. Investors need to remain cautiously optimistic and closely monitor market movements.

2. Ethereum transaction fees may significantly decrease, as network expansion proposals attract attention.

A researcher from the Ethereum Foundation has proposed a new initiative aimed at reducing transaction fees by increasing the transaction processing capacity of the Ethereum network. The proposal suggests raising Ethereum's transaction processing speed to 2000 transactions per second, which theoretically would reduce transaction fees to one-tenth of the current level.

Ethereum's current transaction processing speed is relatively low, leading to network congestion and high transaction fees, which has become a major bottleneck for Ethereum's development. The new proposal aims to improve scalability by optimizing the network architecture, thereby attracting more users and applications. However, the proposal has also sparked some controversy, with analysts concerned that it may affect the level of decentralization of the network.

Regardless, this proposal reflects that the Ethereum community is working hard to address the network scalability issue. If the proposal is approved and successfully implemented, the user experience on Ethereum will be greatly improved, which may encourage more developers and businesses to join the Ethereum ecosystem. Investors need to closely monitor the progress of this proposal, as it could have a significant impact on the long-term development of Ethereum.

3. The Solana ecosystem continues to heat up, with multiple tokens showing strong growth.

In the context of an overall pullback in the cryptocurrency market, multiple tokens within the Solana ecosystem have performed remarkably well, leading the market in gains. Analysts believe this reflects the ongoing warming of the Solana ecosystem, attracting more attention from investors and developers.

Among them, the Solana ecological token BONK has risen by more than 20% in the past 24 hours, trading above $1.5. BONK is a meme token that has recently gained a lot of attention due to its unique marketing strategy and community activity. Another Solana token, FARTCOIN, also rose nearly 15% in a strong performance.

The continuous warming of the Solana ecosystem is mainly attributed to its high performance, low fees, and active developer community. More and more DeFi, NFT, and GameFi projects are choosing to deploy on Solana, injecting new vitality into the ecosystem. Meanwhile, the Solana Foundation is continuously introducing new incentive measures to attract more developers and users to join.

However, investors should also be aware of the high volatility risks associated with Solana ecosystem tokens. Most of these tokens lack real use cases, and their prices are primarily driven by speculative sentiment. Investors should exercise caution and manage their risk exposure when participating. Overall, the continued warming of the Solana ecosystem is worth ongoing attention.

4. The cryptocurrency market is experiencing a short-term correction, while the NFT and PayFi sectors continue to rise.

On April 28, the cryptocurrency market experienced a widespread correction, with major currencies such as Bitcoin and Ethereum seeing declines. However, the NFT and PayFi sectors continued to rise, showing impressive performance.

Data shows that the NFT sector rose by 3.47%, with Pudgy Penguins token PENGU increasing by 30.59% and Magic Eden token ME rising by 6.92%. The PayFi sector increased by 2.6%, with XRP and Monero rising by 3.22% and 17.79%, respectively.

Analysts believe that the sustained strength of the NFT and PayFi sectors is mainly driven by the following factors:

1. The NFT market is active, with well-known projects continuously driving enthusiasm;
2. The concept of PayFi has attracted much attention, and the prospects for application scenarios such as cross-border payments are broad.
3. Some popular tokens are favored by institutional investors, with continuous inflows of funds.

However, some analysts warn that the valuations of the NFT and PayFi sectors are already high, and investors should be cautious of bubble risks. In addition, changes in the macroeconomic environment may also impact the performance of these two sectors.

Overall, despite the short-term pullback in the cryptocurrency market, popular sectors such as NFTs and PayFi are still worth continuous attention. Investors need to conduct thorough research on their targets and manage their risk exposure.

4. Project News

1. Hyperliquid launches HyperEVM with read precompiled functions, opening new possibilities for DeFi applications.

Hyperliquid is a decentralized Layer 2 scaling solution designed to enhance the scalability and performance of Ethereum. The project was launched in 2021 and was founded by former Coinbase engineers. Hyperliquid employs optimistic rollup technology and a sharding architecture to achieve high throughput and low transaction fees.

The latest news is that Hyperliquid has announced the launch of the read precompiled function on the HyperEVM mainnet. This function allows developers to atomically read the HyperCore state from smart contracts on HyperEVM, providing more possibilities for DeFi applications. For example, lending protocols can now utilize the HyperCore oracle to obtain reliable price data.

This innovation helps enhance Hyperliquid's DeFi capabilities, providing developers with more tools to build financial applications. Analysts believe that the launch of this feature will further strengthen Hyperliquid's competitiveness in the DeFi space, attracting more projects to deploy on its platform. At the same time, some analysts point out that close attention needs to be paid to the security and reliability of this feature to ensure the safety of funds in DeFi applications.

Overall, Hyperliquid's latest developments reflect its determination to continuously innovate, contributing new technological solutions for Ethereum scalability and DeFi development. Industry insiders are optimistic about the application prospects of this new feature.

2. The Sui ecosystem project Walrus has gained attention, with the token WAL experiencing a daily increase of over 17%.

Sui is an emerging public blockchain founded by former Meta engineers, using the Move language to write smart contracts. The project was launched in 2022, aiming to create a high-performance, low-cost blockchain platform. The Sui ecosystem is currently developing rapidly.

Recently, the decentralized storage protocol Walrus in the Sui ecosystem has performed impressively, with the token WAL seeing a daily increase of over 17%. Walrus is a distributed storage network that provides reliable and efficient storage solutions for the Sui ecosystem. Users can rent out idle hard drive space to earn WAL token rewards.

Analysts believe that the emergence of Walrus helps to improve the infrastructure of the Sui ecosystem, laying the foundation for the deployment of more applications in the future. At the same time, Walrus's decentralized storage solution is also beneficial for enhancing the security and privacy of the Sui ecosystem.

However, there are also opinions that Walrus is still in its early stages, and the short-term volatility of the token price is large. Investors need to carefully assess the long-term development prospects of the project. Overall, the emergence of Walrus has brought new vitality to the Sui ecosystem and deserves continued attention.

3. BNB AI Hack announced 11 potential award projects in Tier 4.

BNB AI Hack is a hackathon event hosted on the BNB chain, aimed at encouraging developers to build innovative AI and Web applications on the BNB chain. Since its launch in March 2023, the event has attracted many projects to participate.

The latest news is that BNB AI Hack announced 11 Tier 4 potential winning projects from the batch on April 28, including Aster AI, Barktalkai, BNBOT, DataFlyer, EchoVote, Fezz, Idea Pie, Jam, NovelForge, TradingFlow, and Visualyze. These projects cover various fields such as AI platforms, crypto intelligence, and agency platforms.

Analysts believe that this batch of award-winning projects showcases the innovative vitality of the BNB ecosystem in the integration of AI and We. Among them are promising entrepreneurial projects that are expected to bring new application scenarios to the BNB ecosystem. At the same time, the emergence of these projects also reflects the development trend of the integration of AI and blockchain technology.

However, there are also viewpoints that point out that AI+We is still in its early stages, with most applications being of a proof-of-concept nature. Large-scale application will still take time, and related technologies and infrastructure need to be improved. Overall, BNB AI Hack provides a good practical platform for AI and We innovators and is worth continued attention.

4. Pudgy Penguins ecosystem revival, token PENGU daily increase over 30%

Pudgy Penguins is an NFT series themed around penguin images that caused a market frenzy after its launch in 2021. However, its ecological development faced setbacks, and the token PENGU experienced a significant price drop.

Recent news shows that the Pudgy Penguins ecosystem is experiencing a strong recovery, with the token PENGU increasing by over 30% in a single day, currently priced at $0.0134. This rebound is mainly due to several positive developments within the Pudgy Penguins ecosystem.

First, Pudgy Penguins launched on the Abstract Layer2 mainnet, achieving a transformation from meme to utility, endowing the PENGU token with governance and revenue distribution value. Second, the rise of global financial markets and the macro environment supported the cryptocurrency market, reflected in PENGU. In addition, the CEO of Pudgy Penguins also launched a plan to create PENGU-related content on the Whop platform, which offers token incentives.

Analysts believe that the revival of the Pudgy Penguins ecosystem signifies that the NFT and Meme sectors are regaining vitality. However, there are also views that investors need to pay attention to the long-term investment value of the PENGU token and the risks of market volatility. Overall, the performance of the Pudgy Penguins ecosystem is worth continuous attention.

5. Economic Dynamics

1. Popular candidates for the Federal Reserve chair criticize the central bank's expansionary actions leading to policy mistakes.

The Federal Reserve's role in all economic policy matters within the government has become overly expansive, and this all-encompassing, reactive behavior has led to systematic errors in macroeconomic policy. This is the view expressed by Kevin Warsh, a former Federal Reserve governor and the top contender to succeed current Fed Chair Jerome Powell, in The Wall Street Journal.

The current economic environment is filled with uncertainty, inflation rates remain high, and the job market is still tight. The Federal Reserve is accelerating interest rate hikes to combat inflation, but it also faces the risk of an economic recession. Walsh believes that monetary policy makers should avoid stepping into the fiscal domain, but if the Federal Reserve chooses to overstep, it should maintain consistency in words and actions during both crisis and prosperity.

He pointed out that the maintenance of the Federal Reserve's independence mainly depends on the Federal Reserve itself, but that does not mean that central bank experts should be treated like spoiled princes. "When monetary policy results are poor, the Federal Reserve should accept rigorous questioning, strong oversight, and bear the appropriate blame when mistakes are made. The current predicament of the Federal Reserve is mainly self-inflicted."

Analysts say that Walsh's criticism reflects a widespread skepticism about the Federal Reserve's policies. Against the backdrop of persistently high inflation, the Federal Reserve is under immense pressure to seek a balance between curbing inflation and avoiding a hard landing for the economy. The direction of future monetary policy will significantly impact the economic recovery.

2. Trump's tariff policy triggers economic turmoil, Bitcoin becomes a safe-haven asset

Against the backdrop of the Trump administration's extreme tariff policy, Bitcoin has gained traction as a safe-haven asset by exhibiting the characteristics of a non-sovereign store of value amid economic uncertainty and market volatility. That's the view of a new research report ###NYDIG( New York Digital Investment Group.

The report points out that since "Liberation Day", Bitcoin has risen by more than 10%, demonstrating its potential as a non-sovereign store of value. The Trump administration's significant tariff increases have triggered massive geopolitical shocks and economic turmoil, but at the same time have also boosted the demand for risk assets such as Bitcoin.

Currently, signs of rising inflation and economic slowdown are evident in the United States, and the ongoing uncertainty of the trade war has led to an increase in investor demand for traditional safe-haven assets such as gold. Meanwhile, Bitcoin, as a new type of digital asset, has also attracted the attention of investors.

Analysts believe that the reason Bitcoin has gained attention during turbulent times is due to its decentralized, censorship-resistant nature and its limited supply. This gives it the characteristics of a store of value, making it an alternative investment option during economic turmoil.

However, experts also warn that the extreme volatility of Bitcoin's price may limit its role as a store of value. Whether Bitcoin can truly become a safe-haven asset in the future remains to be seen.

) 3. The European Central Bank may hold steady to assess the impact of tariffs, while the Bank of England may slightly lower interest rates.

Against the backdrop of increasing uncertainty in trade policy, the European and UK central banks may temporarily hold their positions in order to assess the impact of the Trump administration's tariff policies.

Tom Kenny, a senior international economist at ANZ Bank, stated in a report that the European Central Bank is unlikely to raise interest rates quickly, at least in the coming months. ECB President Kazuo Ueda may adopt a cautious tone at the press conference, emphasizing the need to closely monitor developments to assess the impact of tariffs.

Meanwhile, the Bank of England may also remain cautious. Robert Wood from Pantheon Macroeconomics stated that despite the gloomy outlook for UK economic growth, the Bank of England is likely to avoid a significant rate cut. Wood believes that the monetary policy committee of the Bank of England may lower the key interest rate by 25 basis points instead of 50 basis points, as fundamental data shows that the UK economy "had been performing well prior to the recent turmoil."

The uncertainty of the trade war has cast a shadow over the global economic outlook. Analysts point out that major economies' central banks are temporarily taking a wait-and-see approach to gain more time to assess the impact of tariff policies. Once the effects gradually become evident, central banks will make corresponding monetary policy adjustments based on specific circumstances.

Experts urge that during the current turbulent times, policymakers need to remain prudent, closely monitor developments, and be prepared to respond to various possible situations. Only in this way can the negative impact of the trade war be minimized and the stable development of the economy be maintained.

4. The Norwegian Sovereign Fund may consider Bitcoin as a hedging tool.

Against the backdrop of global trade wars and the risk of economic recession, Norway's sovereign fund may view Bitcoin as a hedging tool and consider increasing its allocation to crypto assets.

Norway's sovereign wealth fund is the world's largest sovereign wealth fund, with more than $1.3 trillion in assets under management. While there is currently no indication that the fund will invest directly in Bitcoin or related ETFs, market analysis notes that sovereign funds may consider Bitcoin as a vehicle to hedge against traditional financial assets, given the current geopolitical risks and economic uncertainty.

For example, Mubadala Investment Company in Abu Dhabi has held spot Bitcoin ETF shares worth $437 million. However, the Norwegian fund is still primarily focused on index-driven strategies and has not shown signs of increasing its allocation to crypto assets.

Analysts say that the attitude of sovereign wealth funds towards new assets like Bitcoin reflects the growing interest of institutional investors in cryptocurrencies. In turbulent times, Bitcoin, as an asset not bound by any sovereign constraints, may become an effective tool for hedging traditional financial assets.

However, experts also point out that the high volatility of Bitcoin may limit its allocation ratio in sovereign funds. The future application prospects of Bitcoin among institutional investors still need further observation.

6. Regulation & Policy

1. The new chairman of the U.S. Securities and Exchange Commission pushes for the modernization of cryptocurrency regulation.

The U.S. Securities and Exchange Commission (SEC), under the leadership of new Chairman Paul Atkins, is gradually adopting more orderly and innovation-friendly regulatory policies for digital assets. The SEC has recently issued regulatory guidance on Meme coins and stablecoins, providing market participants with clearer compliance directions.

However, Eric Trump plans to attend the Token2049 conference and the TRUMP token project related to Trump has sparked controversy. Democratic Senators Elizabeth Warren and Adam Schiff have sent letters calling for an ethical investigation into the TRUMP token, questioning its practice of exchanging token sales for meetings with the president.

Regulators can efficiently track insider trading through social media and AI, and the enforcement team will pay close attention. Former General Counsel Robert Stebbins stated that enforcement will return to the focus set during Jay Clayton's tenure, concentrating on the "retail market" or individual investors, and the Foreign Corrupt Practices Act will not be enforced this time. Dan Berkovitz and Gary Gensler's General Counsel Megan Barbaro both indicated that the SEC will focus more on cases that actually harm investors, lowering corporate fines, reducing enforcement for procedural violations, and concentrating on fraud. Former Chairman Gary Gensler has faced widespread criticism for the rulemaking agenda, and three former chief lawyers expect that Atkins will begin to address the challenges of cryptocurrency regulation, while potentially expanding access to private markets and raising the thresholds for accredited investors.

Despite the momentum within the SEC pushing for cryptocurrency reform, the perception of political bias surrounding the agency may hinder its ability to act in a credible manner in the coming months. If Atkin can successfully balance the drive for regulatory modernization with a clear commitment to fair enforcement, the SEC is likely to reclaim its global leadership position in the regulation of digital assets. However, if the agency becomes mired in partisan disputes, even well-intentioned reforms may lose momentum. Currently, the crypto industry remains cautiously optimistic while also staying vigilant. Issues of conflicts of interest may persist and overshadow Atkin's actual achievements in seeking progress for the cryptocurrency sector within the SEC.

2. The People Power Party of South Korea proposes a comprehensive reform of the virtual asset regulatory framework.

South Korea's largest opposition party, the People Power Party, announced that it will abolish the "one exchange, one bank" system for virtual assets as a core commitment for the presidential election. The party's proposed virtual asset policy plan mainly includes: lifting the current restriction that "one exchange can only connect with one bank"; promoting the legalization of virtual asset trading for businesses and institutional investors; introducing virtual asset spot ETFs; advancing legislation for security token ###STO(; establishing a regulatory framework for stablecoins; formulating the "Basic Law for the Revitalization of Digital Assets"; and constructing an innovative virtual asset tax system, among seven major measures. These policies aim to comprehensively reform the regulatory framework of South Korea's virtual asset market and promote the healthy development of the digital asset industry.

The party stated that the current regulatory system severely hinders the development of the virtual asset industry in South Korea, resulting in inadequate protection of investors' rights. The removal of the "one exchange one bank" regulation will provide exchanges with more banking options, which is beneficial for improving service quality and reducing transaction fees. At the same time, allowing institutional investors to participate in virtual asset trading will inject more funds and professional investors into the market.

The introduction of virtual asset ETFs and the promotion of STO legislation will provide investors with more diversified investment channels. Establishing a regulatory framework for stablecoins will help standardize the issuance and circulation of stablecoins, maintaining financial stability. Formulating the "Basic Law for the Revitalization of Digital Assets" will create a favorable legal environment for the virtual asset industry. Innovating the tax system will reduce the tax burden on investors.

Industry insiders have welcomed the party's policy proposals. The president of the Korea Blockchain Association stated that these policies will help attract more domestic and foreign investors and enterprises into the South Korean virtual asset market, promoting healthy industry development. However, some experts are concerned that overly lenient regulations could pose financial risks. Overall, the party's policy proposals aim to balance regulation and development, creating a more inclusive and favorable environment for South Korea's virtual asset industry.

) 3. Grayscale urges the SEC to approve Ethereum ETF staking

On April 28, Grayscale Investments, a digital asset management firm, submitted a memorandum to the U.S. Securities and Exchange Commission (SEC), urging it to approve the Ethereum exchange-traded product (ETF) for staking.

Grayscale pointed out that the SEC currently prohibits Ethereum ETF staking, which prevents the product from fully reflecting the intrinsic value of the underlying assets. As the largest Ethereum trust fund, Grayscale has missed out on approximately $61 million in staking income since December 2021.

Grayscale presents three arguments to support its claim: 1) Similar products in Europe and Canada have successfully implemented staking; 2) Staking can enhance the security of the Ethereum network; 3) Risk control plans have been established, including "liquidity reserves." Grayscale also stated that Coinbase Custody will provide technical support to avoid confiscation risks.

Grayscale emphasizes that staking will help enhance the security of the Ethereum network while providing additional returns for shareholders. The company calls on the SEC to update regulatory rules to allow Ethereum ETF staking, referencing traditional financial products.

Experts believe that Grayscale's move aims to enhance the attractiveness and competitiveness of its products. As Ethereum's status as a "blue chip" in the cryptocurrency space becomes increasingly prominent, the demand from investors for Ethereum ETFs is also on the rise. If the SEC ultimately approves staking, it will help attract more institutional funds into the crypto market.

However, some analysts have expressed concerns about the risks posed by staking. In the event of a major network failure or security incident, the pledged assets may be at risk of being confiscated or lost. Therefore, the SEC needs to weigh the pros and cons when making decisions to ensure that the interests of investors are adequately protected.

Overall, Grayscale's move reflects strong demand from institutional investors for Ethereum ETF staking. If the SEC ultimately approves it, it will help drive the institutionalization of the crypto market and will have a profound impact on the entire crypto ecosystem.