News

According to Bloomberg, ChainCatcher reports that Senator Elizabeth Warren has questioned the decision by financial regulators to allow cryptocurrency companies into the banking system. The Massachusetts Democrat sent a letter to OCC chief Jonathan Gould, pointing out that the regulator has approved at least nine national trust licenses for crypto companies that "seem unqualified." Warren stated that these licenses "appear to far exceed the narrow scope of activities permitted under the law," and constitute "clear violations of the National Bank Act." She questioned whether the OCC followed relevant legal requirements during the approval process and requested clarification regarding the compliance of these crypto companies receiving banking licenses.

According to a report by Jinse Finance, on May 19, Hyperliquid updated its official website documentation, adding AQAv2 API interface information for “Authorize AQAv2 Role,” which may indicate preparations for a USDC deployment by an exchange. Previously, on May 14, Hyperliquid announced that an exchange will become the official USDC vault deployer on Hyperliquid and will share 90% of USDC reserve earnings with Hyperliquid. With the deployment of USDC, Hyperliquid will fully support USDC and gradually phase out the USDH market.

Japan is currently facing a weaker economic outlook for the second quarter and beyond, with sustained energy shocks and inflation expected to suppress growth. Prime Minister Sanae Takaichi is considering drafting an additional budget to subsidize gasoline and fuel prices during the summer, but ING senior economists point out that the budget is emergency relief rather than economic stimulus, and its multiplier effect on growth is limited.Japan is highly dependent on Middle Eastern crude oil transiting through the Strait of Hormuz, which has in effect been closed since February 28. The Bank of Japan is closely monitoring the impact of the energy crisis on inflation, and at its April meeting anticipated that against the background of the current Middle East conflict which has driven oil prices higher, inflation for fiscal year 2026 is expected to rise to 2.5%-3.0%.ING forecasts two interest rate hikes in 2026, in June and in the fourth quarter, totaling 50 basis points. The timing of the second hike will depend on developments in the Middle East and the Bank of Japan's ability to persuade the government to accept higher interest rates.Economists at Oxford Economics point out that rising costs will weaken corporate earnings and drag down investment activity. Even if the conflict ends by the end of the second quarter or energy supplies improve, stockpiling of oil and natural gas will lead to a surge in imports, suppressing third-quarter growth.Japan's Q1 GDP grew by 0.5% quarter-on-quarter, exceeding expectations, but ING has already lowered its Q2 GDP growth forecast to 0.2% quarter-on-quarter, and further down to 0.0% in Q3. Inventories and net exports may drag on overall growth, but government subsidies and robust wage increases should support consumption. The economy is caught in a tug-of-war between mild slowdown and policy support.