11.13 AI Daily: SEC launches token classification framework, encryption regulation sees major turning point

1. Headlines

1. The Chairman of the U.S. Securities and Exchange Commission announces the classification plan for crypto assets.

Paul Atkins, chairman of the U.S. Securities and Exchange Commission (SEC), announced that the SEC plans to develop a “token classification system” in the coming months to clarify which cryptocurrencies are considered securities. Atkins emphasized that tokenized products will be regarded as securities, but non-tokenized NFTs, network tokens (such as Ethereum), and “digital tools” with real functions (such as authentication) are not securities.

The plan aims to provide clear guidance for the regulation of crypto assets. For a long time, there has been controversy over the scope of the SEC's regulation of crypto assets. The introduction of this classification system will bring legal certainty to industry participants. However, some individuals are concerned that the SEC may overly broaden the definition of securities, limiting the innovation space for crypto assets.

Industry insiders point out that this classification system will affect the operational models, funding channels, and compliance costs of cryptocurrency companies. Tokens classified as securities will be subject to stricter issuance and trading rules. Non-security tokens, on the other hand, will enjoy greater regulatory freedom. The classification results may trigger a reshuffling of the industry, with an impact that could surpass the “crypto winters” event of 2022.

2. The U.S. government ends the longest shutdown in history, benefiting the cryptocurrency market in the short term.

U.S. President Trump signed a bill to end the 43-day government shutdown. This move boosted investor confidence, leading to a short-term rebound in the cryptocurrency market, with Bitcoin, Ethereum, and XRP all rising by over 5%.

Analysts believe that the government's restart symbolizes a short-term confidence recovery, but the potential data vacuum and the risk of another standstill will continue to dominate market expectations. The macro environment has temporarily entered a wait-and-see period, with market liquidity refocusing on high-volatility assets, and the cryptocurrency market may benefit in the short term from hedging and arbitrage demand.

In fact, due to the government's prolonged shutdown, key economic data for October such as CPI and employment reports may never be released. This will exacerbate market uncertainty regarding the economic outlook, and the Federal Reserve's decision-making may also be affected as a result. For the crypto market, this “information vacuum” created by the disconnection between policies and data will lead funds to be more inclined to avoid the uncertainties of traditional financial assets.

3. The 8th National Criminal Trial Work Conference focuses on the disposal of virtual currencies involved in cases.

The eighth National Criminal Trial Work Conference held on November 13 emphasized the maintenance of cybersecurity in the online space, proposing specific requirements from three aspects:

First, we need to focus on new issues such as the disposal of virtual currencies involved in cases, obscene performances in live streaming, jurisdiction over cybercrime cases, and the certification of electronic data evidence. We should further improve judicial rules, standardize adjudication criteria, and promote lawful and civilized use of the internet.

Second, it is necessary to severely crack down on cross-border online gambling crimes in accordance with the law, and to hold criminally liable the online platforms that provide services for overseas gambling and spread harmful information related to gambling, in cooperation with relevant departments to rectify the online gambling promotion chain.

Third, we must intensify the crackdown on upstream illegal activities related to the infringement of citizens' personal information and other black and gray industries, severely punish “insiders” in the industry, apply employment prohibitions in accordance with the law, and promote the enforcement of regulatory responsibilities for online platforms.

The meeting reflects that the judicial authorities have intensified their regulation of illegal activities related to virtual currencies. As the application of virtual currencies continues to expand, issues of compliance and regulation are becoming increasingly prominent. In the future, relevant departments are expected to further improve laws and regulations, standardize virtual currency trading activities, and safeguard online financial security.

4. Walnut Capital strategically invests in EdgeAI Labs to promote decentralized AI development.

Walnut Capital Limited announced a significant strategic investment in EdgeAI Labs. This collaboration will accelerate the development of EdgeAI Labs' decentralized platform, expand its global influence, and enable it to provide safer AI solutions for users worldwide.

EdgeAI Labs, with its cutting-edge technology, possesses unique advantages in meeting the demands of decentralized AI and edge computing. The company aims to provide AI agents that can run securely on user devices, reducing reliance on centralized cloud infrastructure and ensuring data privacy and security.

The collaboration with Walnut Capital highlights the importance of decentralized infrastructure in technological evolution. This investment will support EdgeAI Labs in enhancing solution architecture, accelerating the deployment of decentralized edge nodes, and improving the company's operational capabilities.

Analysts point out that the demand for AI infrastructure is changing the landscape of the energy market, making electricity supply a key factor in future competition. Decentralized AI is expected to address issues such as privacy, security, and efficiency faced by traditional cloud computing, becoming a new trend in industry development. The investment from Hu Tao Capital will help EdgeAI Labs gain a competitive edge in this field.

5. Observations from the TOKEN2049 Conference: The Industry Seeking New Opportunities and Innovative Impulses

From September 18-19, the world-class technology conference TOKEN2049 will be held in Singapore. Over 7,000 companies from more than 150 countries and more than 20,000 attendees will come together to explore new opportunities in technology development.

On-site observations indicate that the industry is facing growing pains during its transformation. On one hand, traditional popular sectors such as full-chain gaming and NFTs are experiencing a slowdown, leading to a lack of confidence among practitioners; on the other hand, new sectors like AI+ technology, computing, and consumer-level applications are beginning to attract capital favor.

Participants generally believe that the current dilemma in the industry is not only due to the macro environment but also because of the phase death of underlying logic. The past model of “start-up - packaging - user growth - listing on exchanges - exit” is coming to an end, and the industry urgently needs new business logic and real users.

While some innovative projects have emerged, overall, it remains difficult for startups to secure funding. Exchanges have become winners due to a good revenue model, but this has also exacerbated the talent drain in the industry. Participants called for exchanges and investors to pay more attention to long-term entrepreneurs and support genuine innovation to bring new growth momentum to the industry.

2. Industry News

1. Bitcoin faces short-term pressure as institutional funds withdraw, raising market concerns.

After experiencing a $330 billion market value evaporation in October, Bitcoin is struggling to recover, with its price fluctuating around the $100,000 mark. The latest data shows that Bitcoin has dropped 1.3% in the last 24 hours, falling below the $103,000 threshold. Analysts point out that this trend is related to the continued withdrawal of institutional funds.

CryptoQuant's on-chain data shows that exchange BTC reserves have decreased by about 8% since the beginning of August, and the reserve value in USD has dropped from about 300 billion to 250 billion in November. This indicates that investors are withdrawing funds from exchanges (shifting to self-custody or safe-haven assets), reinforcing sell signals. Meanwhile, new Bitcoin investors are transitioning from a rush to enter the market to a gradual slowdown, with new demand beginning to wane, indicating that investors' risk appetite is declining.

On the other hand, after a sharp decline in October, market sentiment for Bitcoin has become cautious. The cryptocurrency Fear and Greed Index has plummeted to 15, indicating an “extreme fear” situation. Santiment reports a negative sentiment around major cryptocurrencies like Bitcoin, viewing it as a capitulation signal for a bullish trend. However, experts urge patience, pointing out the investment philosophy of “buying in fear, selling in greed.”

Overall, Bitcoin is under short-term pressure, with institutional funds withdrawing, raising concerns in the market. However, analysts believe that the current gloomy sentiment also provides a good opportunity for long-term investors to accumulate. Whether Bitcoin can regain its upward momentum in the future will require observation of changes in macro policies, liquidity, and other factors.

2. Ethereum short-term rebound, DeFi ecosystem regains vitality

Ethereum rose 1.7% in the last 24 hours, re-establishing itself above the $3500 mark. This rebound is mainly driven by the resurgence of activity in the DeFi ecosystem.

Data shows that the total DeFi TVL across the network has risen to $133.366 billion, with a 24-hour growth of 1.16%. Mainstream protocols generally recorded slight increases, with Aave, Lido, EigenLayer, and Spark all seeing daily increases of around 1%-2%.

The market focus of the day is concentrated on three main directions: first, Infinex announced the token generation event (TGE) and launched multiple rounds of incentive distribution activities, marking the official entry of its cross-chain aggregation ecosystem into the mainnet phase; second, EigenCloud and LayerZero launched the EigenZero decentralized verification network, which ensures cross-chain security through an economic penalty mechanism; third, SEC Chairman Paul Atkins introduced a “token classification” regulatory framework, proposing for the first time that “crypto tokens can detach from securities attributes as the network matures.”

Under the market fatigue, these policies and technological signals jointly form the structural highlights of the DeFi sector. Analysts believe that the improvement in regulatory clarity will help attract more institutional funds to enter the market, while the development of cross-chain technology will also promote further expansion of the DeFi ecosystem.

However, some analysts have expressed concerns about the sustainable development of the DeFi ecosystem. They pointed out that current DeFi still lacks real application scenarios, and most protocols are just repeating existing financial functions. Only by addressing real pain points can DeFi achieve significant growth.

3. The trading volume of altcoins has surged, with the impending listing of the XRP ETF attracting market attention.

Affected by the news that “Canary XRP ETF officially takes effect”, the trading volume of several altcoins listed on the DTCC( website of the American Depository Trust & Clearing Corporation) has surged significantly in the past 24 hours. Among them, XRP's 24-hour trading volume increased by 62.1%, with a 24-hour price increase of 4%; DOGE's 24-hour trading volume rose by 22.2%.

Analysts point out that this phenomenon reflects investors' high expectations for the upcoming XRP ETF. Once the XRP ETF is officially launched, it is expected to bring in a large influx of institutional funds, thereby driving up the prices of XRP and other altcoins.

However, some analysts are cautious about the long-term prospects of altcoins. They believe that altcoins lack practical application scenarios, and their prices are mainly influenced by speculative trading. If there is a lack of sustained trading volume and liquidity support, the prices of altcoins are likely to experience significant fluctuations in the short term.

In addition, the regulatory authorities' tightening attitude towards altcoins is also a major hidden danger. Paul Atkins, the chairman of the U.S. Securities and Exchange Commission, clearly stated in the latest “Token Classification” regulatory framework that tokenized products will be considered securities. This means that altcoins may face stricter regulations in the future.

Overall, the upcoming listing of the XRP ETF has attracted market attention, but the long-term prospects of altcoins still have many uncertainties. Investors need to carefully assess risks and rationally view short-term price fluctuations.

3. Project News

1. AgentLISA completed a $12 million financing to develop an AI agent security framework.

We AI agent AgentLISA announces the acquisition of $12 million in financing, with participation from institutions such as Redpoint Ventures, UOB Venture Management, Signum Capital, NGC Ventures, Hash Global, LongHash Ventures, M23 Capital, Kryptos, Fellows Fund, ByteTrade Lab, Summer Ventures, and Woori Ventures.

AgentLISA is an AI company focused on web security. The company plans to use this round of financing to develop its AI agent security framework, which aims to discover complex multi-step vulnerabilities often overlooked by traditional scanners and manual audits. The framework will help developers identify and fix potential security vulnerabilities by simulating hacker attack paths.

In recent years, Web security issues have received increasing attention. With more and more funds pouring into the crypto space, hacker attacks have become more frequent. AgentLISA's AI security framework is expected to bring stronger security protection capabilities to the Web ecosystem, improving the security of smart contracts and DApps, thereby enhancing user confidence in Web applications.

Industry analysts indicate that AgentLISA's financing further highlights the importance and development potential of the web security field. As the web ecosystem continues to expand, security issues will become key factors limiting its development. Innovative companies focusing on web security, such as AgentLISA, are expected to play an important role in the future.

2. Jito Labs launches Solana block assembly market BAM

Solana MEV infrastructure Jito Labs published an article introducing its launched Block Assembly Marketplace ( BAM, the block assembly market ), claiming it can solve the pain points of the Solana network, consolidate on-chain advantages, and help realize the “Internet capital market”.

BAM is a decentralized block assembly market that allows anyone to submit blocks and receive rewards. It aims to ensure transparency and fairness in the Solana execution layer, promoting on-chain transactions to surpass centralized venues. Currently, there are seven different transaction schedulers on Solana, leading to execution uncertainty issues. BAM draws on the Ethereum proposer-builder separation ( PBS ) model to avoid repeating past mistakes.

Jito Labs believes that BAM can effectively address the MEV( miner extractable value) issue on the Solana network, ensuring fair transaction execution. At the same time, it will also promote Solana's transformation into the “internet capital market,” providing a more transparent and efficient infrastructure for on-chain financial applications.

Analysts point out that MEV has always been a pain point in the development of public chains, and BAM provides a new solution to this problem. As a leading MEV infrastructure provider, Jito Labs is expected to occupy an important position in the Solana ecosystem with BAM. In the future, similar decentralized block assembly markets may emerge in more public chains.

3. Ethereum Foundation releases “Trustless Manifesto”

The Ethereum Foundation announced on the X platform that the Account Abstraction team, together with Vitalik Buterin, has released the “Trustless Manifesto” and placed it on-chain. This manifesto reiterates Ethereum's core goal: to establish a system that allows people to coordinate and interact without the need for trusted intermediaries.

The declaration was written by Yoav Weiss, Vitalik Buterin, and Marissa Posner, defining a “trustless” system as one where any honest participant can join, verify, and act without permission. It presents the “three laws”: no key secrets, no indispensable intermediaries, and no unverifiable outcomes.

For Ethereum, the declaration emphasizes maintaining user-initiated actions, verifiability, inclusiveness, and code-driven logic to achieve trusted neutrality. It calls for avoiding convenience that leads to reliance on intermediaries, such as hosted RPC or centralized ordering.

This declaration is stored in the form of an on-chain contract and provides a unique operation pledge(). Calling this operation will only consume Gas fees and will not provide any incentives. The relevant parties make a commitment, indicating their emphasis on user autonomy in authorization and the trustless feature.

Analysts believe that this declaration highlights Ethereum's commitment to the principle of decentralization. With the advancement of upgrades such as account abstraction, Ethereum is expected to further enhance trustlessness, providing a more secure and reliable infrastructure for the Web ecosystem.

4. Economic Dynamics

1. The U.S. government shutdown has ended, economic data release is hindered.

Economic Background: The US economy experienced moderate growth in the first three quarters of 2025, with a third-quarter annualized GDP growth rate of 2.6%. The inflation rate fell in October but remains above the Federal Reserve's target level of 2%. The overall job market remains robust, with the unemployment rate holding at a low of 3.5%.

Important event: The U.S. government began a shutdown on October 1, lasting for 43 days, until President Trump signed a temporary funding bill on November 13, ending the longest government shutdown in history. During the shutdown, the federal government was unable to operate normally, resulting in millions of federal employees being forced to take leave, and key economic data not being published on schedule.

Market reaction: The government restart has alleviated short-term economic uncertainty, but the potential data vacuum and risk of another shutdown still dominate market expectations. Investors are concerned that the absence of October employment and inflation data will affect the Federal Reserve's interest rate decision in December. U.S. Treasury yields may remain on a downward trend, and the dollar index is under short-term pressure. High-volatility assets may benefit from hedging and arbitrage demand.

Expert opinion: Goldman Sachs analysts indicate that the Bureau of Labor Statistics will release an updated data schedule next week. The newly released data is expected to show a slowdown in the labor market, high inflation, and modest but weak economic growth. American economist Paul Krugman believes that the negative impact of a government shutdown on the economy is difficult to fully compensate for, and fourth-quarter GDP growth may be dragged down.

2. Divisions within the Federal Reserve are deepening, and the path for interest rate hikes in December is uncertain.

Economic Background: In 2025, the U.S. economic growth slowed down, with the inflation rate remaining above 7% for most of the year. The labor market remains tight, but signs of slowing job growth have begun to appear. The Federal Reserve has raised interest rates six times since March to curb inflation, bringing the federal funds rate target range to a high level of 3.75%-4%.

Important Event: There are divisions among Federal Reserve officials on whether to continue raising interest rates in December. Governor Collins believes that current interest rates are in a “mildly tight” range and that further easing of policy should be approached with caution. Meanwhile, Governor Mester calls for avoiding excessive tightening to prevent the risk of economic downturn. Bostic emphasizes that the threat of inflation has become more apparent and urgent.

Market Reaction: The internal divisions within the Federal Reserve have intensified market uncertainty regarding the policy path in December. Investors generally expect the Federal Reserve to continue raising interest rates in December, but the pace may slow to 25 basis points. Stock market volatility has increased, and investors are closely monitoring employment and inflation data for clues on policy direction.

Expert Opinion: Former Federal Reserve Board member Lael Brainard believes that the Federal Reserve should pause interest rate hikes in December to give the economy some breathing room. Goldman Sachs, on the other hand, expects the Federal Reserve to end the rate hike cycle in the first quarter of next year, at which point the federal funds rate will reach a peak of 5%. Economist Paul Krugman warns that excessive rate hikes could lead to a hard landing for the economy.

3. China has released a new round of support measures to promote economic stabilization and recovery.

Economic Background: In 2025, under the multiple pressures of real estate regulation, epidemic prevention, and geopolitical tensions, China's GDP growth slowed to 3.3%, the lowest recorded since 1976. Industrial production and consumption data were weak, and inflationary pressures rose.

Important events: In response to the downward pressure on the economy, the Chinese government and central bank have recently introduced a series of support policies, including further cuts in reserve requirements and interest rates, expanding the scale of special refinancing loans, and increasing infrastructure investment efforts, aimed at stabilizing the overall economy.

Market reaction: The new round of policy measures received positive feedback from the market, which helps improve the financing environment and boost market confidence. Real estate stocks and cyclical stocks rose in response, the RMB exchange rate stabilized, and the bond yield curve showed a steepening trend. However, market participants pointed out that there is a lag in policy transmission, and economic stabilization will take time.

Expert Opinion: Liu Yuanchun, Dean of the Chongyang Institute for Financial Studies at Renmin University of China, stated that the difficulties in the real estate industry remain the main drag on the economy, and relevant departments need to strengthen efforts to resolve risks. Chen Xi, an economist at Nomura Securities for the Asia-Pacific region, believes that the Chinese economy will regain a growth rate of over 6% by 2026, but the outlook still faces many uncertainties.

5. Regulation & Policy

1. SEC Chairman Atkins introduces token classification framework, marking a watershed moment for crypto regulation.

The chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, announced that the SEC plans to develop a “token classification framework” in the coming months, aimed at clarifying which crypto assets fall under the category of securities. This framework will be based on the “Howey Test,” excluding digital goods, digital collectibles, and digital tools from the category of securities, and only including tokenized securities that represent ownership of financial instruments under regulation.

This policy shift marks a significant transition for the SEC from a past enforcement-centric regulatory approach to building a clear classification system, injecting certainty into the regulation of digital assets in the United States. The SEC Chairman stated that this framework will provide the regulatory clarity needed for innovators while protecting investors' rights.

Market participants generally welcome this. The cryptocurrency industry has long called for regulatory clarity, and the SEC's previous stance has put businesses and investors in a difficult position. Industry insiders believe that the token classification framework is expected to promote healthy development in the industry and attract more institutional investors and innovative projects into the crypto space.

However, some experts also remind us that the specific details and implementation of the framework still need to be observed. Leah Wald, CEO of Valkyrie Digital Assets, stated, “We need to wait for the final version of the framework to be released and closely monitor how the SEC applies this classification system in practice.”

2. Monetary Authority of Singapore: Will Promote Regulation of Tokenized Bank Liabilities and Stablecoins

The Monetary Authority of Singapore (MAS) senior official Chia Der Jiun stated on Thursday that the Singapore central bank plans to advance the construction of a scalable and secure tokenized financial ecosystem. To this end, a pilot for tokenized MAS note issuance will be launched next year, along with the introduction of relevant laws to regulate stablecoins.

Chia Der Jiun stated that the Monetary Authority of Singapore has been refining the details of the stablecoin regulatory framework and will subsequently draft relevant legislative proposals, with the core focus on “robust reserve asset support and reliable redemption mechanisms.” He also added that the Monetary Authority of Singapore is simultaneously supporting various pilot projects under the “Blue Initiative,” which aims to explore the use of tokenized bank liabilities and regulated stablecoins for settlement.

This move reflects Singapore's proactive stance in embracing digital asset innovation. Industry insiders believe that Singapore's pioneering exploration in stablecoin regulation will provide valuable lessons for other countries and regions.

However, experts also remind that the regulation of stablecoins needs to balance innovation and risk control. Coinbase's Chief Policy Officer Faryar Shirzad stated: “The regulation of stablecoins needs to ensure their stability and transparency, while not overly restricting their development space.”

3. The Supreme Court requires focus on new issues related to the disposal of virtual currencies involved in the case.

The eighth national criminal trial work conference held on November 13 emphasized the maintenance of cybersecurity in cyberspace and proposed specific requirements from three aspects:

1. Focus on new issues such as the disposal of virtual currencies involved in cases, online live streaming of obscene performances, jurisdiction over cybercrime cases, and the certification of electronic data collection, further improve judicial rules, standardize adjudication criteria, and promote the lawful and civilized use of the internet.

2. It is necessary to strictly crack down on cross-border online gambling crimes according to the law, and to hold online platforms that provide services for overseas gambling and disseminate harmful information related to gambling criminally liable, cooperating with relevant departments to rectify the online gambling promotion chain.

3. must increase efforts to combat upstream illegal activities in the black and gray industry that infringe on citizens' personal information, strictly punish “insiders” within the industry, legally apply employment bans, and promote the enforcement of regulatory responsibilities for online platforms.

The conference emphasized the importance of global cybercrime governance, reflecting the judiciary's increased focus on new types of crimes such as virtual currencies. Industry insiders believe that clarifying judicial rules and standards of judgment will help regulate the use of virtual currencies in the judicial field.

However, there are also views that overly strict regulation may hinder the development of legitimate applications for virtual currencies. Dong Zhikai, a professor at Renmin University of China, stated: “While combating crime, space should also be reserved for the legitimate innovation of virtual currencies.”