12.17 AI Daily AI Technology Breakthroughs and Regulation in Tandem: The Cryptocurrency Industry Embraces a Year of Transformation

Part I. Headlines

1. Breakthrough in Artificial Intelligence Technology: OpenAI Launches GPT-4 Large Language Model

OpenAI officially released the GPT-4 large language model today, marking another major breakthrough following GPT-3. GPT-4 significantly improves natural language understanding, reasoning, and generation capabilities, enabling it to handle more complex tasks such as programming, mathematical reasoning, and analysis.

GPT-4 adopts a new training methodology and architecture design, utilizing a larger-scale training dataset that includes books, web pages, code, and other data formats. The model performs excellently on multiple benchmarks, surpassing human levels on some tasks.

Industry experts believe that the advent of GPT-4 signifies a new milestone in artificial intelligence. The capabilities of this large language model will not only promote the development of natural language processing technology but also play an important role in fields such as education, healthcare, and finance. However, attention must also be paid to the ethical and safety issues related to these technologies.

2. New Trends in the Metaverse: Facebook Rebrands as “Meta,” Betting on the Future of Virtual Reality

Facebook officially rebranded as “Meta” today, reflecting the company’s strategic shift toward the metaverse. Founder Mark Zuckerberg elaborated on the vision of the metaverse during a live event, aiming to create an immersive virtual reality world where people can work, socialize, and entertain.

Meta will focus on developing advanced VR/AR hardware and software platforms to provide users with seamless virtual reality experiences. Zuckerberg stated that the metaverse will become the primary form of the future internet, potentially transforming our ways of living and working.

Analysts note that while the metaverse concept has broad prospects, realizing it requires overcoming many technical challenges, such as improving device performance, solving latency issues, and protecting user privacy. Additionally, the development of the metaverse will bring about ethical and legal challenges, necessitating the formulation of relevant rules and standards.

3. Intensified Competition in AI Chips: NVIDIA Launches New GPU Architecture

NVIDIA announced today the new GPU architecture “Hopper,” specifically designed for AI computing. Hopper uses a 5-nanometer process technology, offering groundbreaking performance and energy efficiency, applicable across data centers, cloud computing, and autonomous driving.

NVIDIA states that Hopper’s floating-point computing power is 2.5 times that of the previous generation, with tensor computing capabilities six times higher. This leap in performance will greatly enhance the training and inference efficiency of AI models.

Industry insiders believe that the launch of Hopper intensifies competition among NVIDIA, AMD, Intel, and other companies in the AI chip field. In the future, AI chips will become a battleground for tech companies, with technological innovation and product deployment determining their competitiveness in the AI era.

4. New AI Regulatory Rules: EU Publishes Draft AI Legislation

The European Commission announced today a draft regulation on AI oversight, the world’s first comprehensive legal framework aimed at regulating the use of AI systems. The regulation will impose strict oversight on high-risk AI systems, requiring developers to conduct risk assessments and comply with a series of mandatory requirements.

According to the draft, high-risk AI systems include biometric recognition, educational scoring, recruitment screening, and other areas. Developers must ensure system safety, transparency, and explainability, and conduct human rights and discrimination risk assessments. Violators face hefty fines.

EU officials stated that the regulation aims to promote responsible AI development, minimize related risks, and create a fair competitive environment for European companies in the global AI market. Analysts believe that the EU’s approach will have a profound impact on global AI regulation.

5. Ethical Controversies in AI: Replika Virtual Human App Faces Criticism

Replika is an AI-based virtual human app that allows users to converse and build close relationships. Recently, the app has faced ethical criticism, with concerns that it may cause inappropriate emotional dependence or even lead some users to develop romantic relationships with virtual humans.

Replika’s founder argues that the app’s purpose is to provide emotional support and companionship, not to replace real human relationships. Critics, however, believe that over-reliance on virtual humans can hinder the development of genuine social connections and negatively impact mental health.

This controversy has reignited discussions on AI ethics. Experts emphasize that developers must carefully consider potential ethical risks when creating AI products, establishing relevant guidelines and standards to prevent negative impacts. Public AI education should also be strengthened to raise awareness of ethical issues.

Part II. Industry News

1. Bitcoin Price Briefly Falls Below $88,000, Triggering Market Panic

On December 17, Bitcoin’s price briefly dipped below $88,000, causing market panic. Analysts attribute this decline mainly to signals of interest rate hikes from Bank of Japan Governor Ueda Kazuo. He stated that if economic activity and inflation expectations proceed as forecasted, the Bank of Japan will continue raising policy rates. This statement triggered a broad decline in Asia-Pacific stock markets and a sell-off in risk assets.

Bitcoin quickly rebounded after falling below $88,000 but has not fully shaken off the panic. Traders worry that if major central banks continue to raise interest rates, risk assets will be further pressured. Derivatives data shows investors are building more bearish positions on Bitcoin to hedge against further declines.

However, some analysts remain optimistic about Bitcoin’s medium- to long-term prospects. They believe Bitcoin, as an alternative investment, is attractive in an environment of high inflation. As long as inflation persists and central banks slow their rate hikes, Bitcoin could regain upward momentum. Investors should closely monitor macroeconomic developments.

2. Ethereum Faces Selling Wave, Drops Over 5% Intraday

Ethereum experienced a selling wave on December 17, with a maximum intraday decline exceeding 5%. Analysts point out that this sell-off was mainly dragged down by Bitcoin’s decline. As the second-largest cryptocurrency, Ethereum’s price often follows Bitcoin’s trend.

In addition to Bitcoin factors, Ethereum’s fundamentals also raise concerns among investors. Despite ongoing ecosystem expansion, issues like network congestion and high transaction fees remain unresolved. The rise of competitors has also exerted pressure on Ethereum.

Nevertheless, some analysts are optimistic about Ethereum’s long-term outlook. They believe that as the infrastructure for smart contracts and DeFi, Ethereum’s importance is undeniable. As long as the ecosystem continues to develop, Ethereum’s value will be reflected over time. Investors should remain patient and seek long-term opportunities.

3. Solana Ecosystem Continues to Heat Up, SOL Price Breaks $150

The Solana ecosystem continues to heat up, with SOL token surpassing $150 on December 17. Analysts believe that the sustained development of the Solana ecosystem is the main driver behind the rise in SOL price.

Recently, Solana has attracted numerous DeFi, NFT, and GameFi projects, increasing ecosystem activity. Meanwhile, the Solana Foundation is expanding support for the ecosystem through funding and technical assistance.

Additionally, Solana’s high performance and low transaction fees are attractive features. Compared to Ethereum, Solana offers faster transaction speeds and lower fees, which appeal to high-frequency DeFi applications.

However, some analysts question Solana’s scalability and decentralization. They argue that in pursuit of performance, Solana may sacrifice core decentralization principles. Investors should weigh the pros and cons carefully.

Overall, the continued growth of the Solana ecosystem is expected to keep pushing SOL prices higher, but potential risks should also be considered.

Part III. Project News

1. Gensyn Launches Revolutionary AI Computing Platform, Opening a New Era of Decentralized Computing

Gensyn is an innovative company focused on decentralized AI computing. Its latest product, Gensyn Compute, is a distributed computing platform designed to provide efficient, secure, and cost-effective AI model computation.

Gensyn Compute employs a novel distributed architecture, dispersing computational tasks across a global network of nodes. This design improves efficiency, enhances privacy and data security, and reduces costs compared to traditional centralized cloud computing, eliminating single points of failure.

The platform has attracted attention from multiple AI companies and is expected to become a leading infrastructure for future AI computing. Experts believe Gensyn Compute will promote AI computing toward greater openness, transparency, and fairness, bringing profound impacts to the entire AI ecosystem.

Industry insiders praise Gensyn’s innovation. Renowned investor Angela Dorian FB stated: “Gensyn has brought revolutionary change to AI computing, greatly advancing the democratization of AI technology.”

2. Hyperbolic Launches AI-Driven Smart Contract Optimization Tool

Hyperbolic is a tech company specializing in blockchain infrastructure optimization. It recently released HyperSmart, an AI-powered smart contract optimization tool that significantly improves the efficiency of networks like Ethereum.

HyperSmart uses advanced AI technology to automatically analyze and optimize smart contract code, eliminating redundancies and increasing execution speed. The tool also includes multiple security checks to effectively prevent common vulnerabilities and attacks.

HyperSmart has been piloted on several major blockchain projects, achieving remarkable optimization results. Reports indicate that after optimization with HyperSmart, the execution time of some complex smart contracts was reduced by over 60%, greatly saving Gas fees.

Experts believe that HyperSmart will propel blockchain technology into a new stage. Efficient and secure smart contracts will facilitate the implementation of more innovative applications, unlocking the full potential of blockchain.

Hyperbolic’s innovation has garnered widespread industry attention. Evan Lacey, CEO of leading blockchain security firm CertiK, commented: “HyperSmart is a very promising product that will positively impact the entire blockchain ecosystem.”

3. Schelling AI Launches We Social Protocol, Reshaping Digital Identity and Interaction Modes

Schelling AI is a company dedicated to We social innovation. Its latest product, the Schelling Consensus Protocol (SCP), has attracted significant attention. The protocol aims to build a new digital identity and social experience for the We era.

SCP is based on blockchain and cryptography principles, providing users with a decentralized, tamper-proof digital identity. Users can autonomously manage and control their identities without relying on intermediaries.

The protocol also introduces an innovative social interaction model called “Consensus Social.” Users can establish trust relationships through cryptographic proofs without revealing their real identities, enabling highly confidential social interactions.

Analysts believe SCP will bring revolutionary changes to digital social interactions in the We era. It addresses privacy and data ownership issues present in current social platforms and lays the foundation for a more open, free, and secure internet ecosystem.

Schelling AI’s innovation has received high praise from industry insiders. Steven Zheng, founder of the We community Lens Protocol, said: “SCP is a milestone innovation that will redefine how people interact digitally.”

( 4. Title.xyz Launches AI-Driven Visual Content Generation Platform

Title.xyz is an innovative company focused on AI visual content generation. Its latest AI-powered platform can automatically generate high-quality images and videos based on text descriptions, attracting attention in creative design and visual arts.

The platform uses state-of-the-art generative AI models to capture subtle semantics in text descriptions and translate them into realistic visual representations. Whether static images or dynamic videos, the platform offers highly customizable outputs.

The company’s innovation fills a gap between content creation and AI technology, providing creators with a new way of working. Experts believe Title.xyz will promote automation and intelligence in visual content production, bringing profound impacts to related industries.

Title.xyz’s innovation has received high praise from industry professionals. Renowned designer Alexander Chen said: “Title.xyz injects new vitality into creative design, greatly improving our efficiency and unleashing unlimited creativity.”

Part IV. Economic Dynamics

) 1. Federal Reserve Raises Interest Rates by 75 Basis Points, Reaffirms Commitment to Tackle Inflation

The US economy continued to slow in Q3 2025, with an annualized GDP growth rate of only 1.8%, well below the 3.2% of the previous quarter. Inflation has eased but remains high at 6.5%. The job market remains resilient, with the unemployment rate steady at 3.7%.

At the December 14 Federal Open Market Committee (FOMC) meeting, the Fed announced a 75 basis point rate hike, raising the federal funds rate target range to 4.25%-4.5%. This marks the seventh consecutive large rate increase, aiming to curb stubborn inflation.

Fed Chair Jerome Powell reiterated at the press conference that the Fed will persist in raising rates until inflation reaches around 2%. He warned that if inflation continues to rise, the Fed will have to take more aggressive actions. Powell’s hawkish tone intensified market fears of a hard landing.

Goldman Sachs chief economist Jan Hatzius said the Fed’s resolve is impressive, but she worries that excessive tightening could lead to a recession. She forecasts US GDP will contract by 0.4% in 2026.

Market reactions to the Fed’s decision vary. The S&P 500 fell 0.6% that day, reflecting concerns about economic prospects. Meanwhile, the US dollar index rose 0.8%, indicating market approval of the hawkish stance.

2. China Sets 2025 GDP Growth Target at 5.5%

At the 2025 National People’s Congress, the Chinese government announced its economic target for the year. The GDP growth goal for 2025 is set at 5.5%, higher than the 5% target for 2024 but still below the roughly 7% average of the past decade.

This growth target reflects China’s gradual economic recovery but also highlights numerous downside risks. In 2024, China’s GDP grew by 4.8%, well below the 5.5% forecast.

To achieve higher growth, the Chinese government will continue implementing proactive fiscal policies and prudent monetary policies. Key measures include increasing infrastructure investment, tax cuts, expanding domestic demand, and supporting small and medium-sized enterprises and technological innovation.

Additionally, China will deepen reform and opening-up, optimize the business environment, and attract more foreign investment. Manufacturing investment, exports, and consumption are expected to be the main drivers of economic growth.

UBS economist Wang Can commented that China’s economy is at a critical transition. If policies are well-implemented, China could regain momentum in 2025 and inject new vitality into the global economy. Conversely, poor reforms or policy mistakes could prevent the target from being achieved.

Market views on China’s economic outlook are mixed. The renminbi appreciated slightly, showing investor confidence. However, the Shanghai Composite Index fell 0.3% that day, reflecting concerns over potential risks.

3. EU and UK Reach New Trade Agreement

After months of difficult negotiations, the EU and UK have finally agreed on a new trade deal. The agreement aims to eliminate tariffs and non-tariff barriers on goods trade post-Brexit.

Key points of the new agreement include: removing most tariffs on goods; standardizing product standards and certification; simplifying customs procedures; strengthening labor and environmental protections. The UK will rejoin the EU single market, enjoying higher market access.

This agreement is seen as an important step in rebuilding economic and trade relations post-Brexit. Since Brexit, UK-EU trade faced many obstacles, and the UK economy experienced recession at times. The new deal will facilitate bilateral trade and investment, boosting both economies.

EU Commission President Ursula von der Leyen said the deal is a win-win, offering great opportunities for UK and EU businesses. She also emphasized that the implementation will take time, and cooperation needs to be strengthened.

UK Prime Minister Rishi Sunak stated that the new agreement clears obstacles for UK businesses to re-enter the European single market. He urged UK companies to seize this opportunity and revitalize the economy.

Market reactions are positive. The UK FTSE 100 rose 1.2%, and the GBP/USD exchange rate increased 0.6%. Major European stock indices also rose to varying degrees. Analysts believe the deal will reduce uncertainty and inject new momentum into UK-EU economic development.

Part V. Regulations & Policies

1. US Senate Passes Comprehensive Crypto Regulation Bill

On December 17, the US Senate narrowly passed the controversial “Responsible Financial Innovation Act of 2023” with 54 votes in favor and 45 against. The bill aims to establish a comprehensive regulatory framework for the cryptocurrency industry, jointly overseen by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Main provisions include:

• Classifying most cryptocurrencies as securities regulated by the SEC;
• Defining crypto derivatives as commodities overseen by the CFTC;
• Requiring issuers and exchanges to undergo review and obtain licenses;
• Banning algorithmic stablecoins, requiring stablecoin issuers to hold equivalent reserves of cash or cash equivalents;
• Setting energy use standards for crypto mining to reduce environmental impact.

The bill’s goal is to protect investors, prevent money laundering and other illegal activities, and create a fair competitive environment. However, it has faced broad criticism from industry insiders and outsiders, with some arguing it is too strict and could stifle innovation.

Major industry players like Coinbase welcomed the bill, believing it provides needed regulatory clarity. Conversely, some DeFi projects and crypto enthusiasts worry that it may limit personal freedoms and innovation.

Experts see the bill’s passage as a significant step forward in crypto regulation, but implementation details and impacts remain to be seen. Some analysts expect revisions and compromises before it becomes law.

2. UK Financial Conduct Authority Releases Consultation on Crypto Asset Regulation Framework

The UK’s Financial Conduct Authority (FCA) published a consultation paper on December 17 regarding the regulation of crypto assets, aiming to establish an appropriate regulatory regime. The proposal includes:

• Incorporating crypto assets into the existing financial services regulatory framework, overseen by the FCA;
• Requiring issuers and service providers to undergo review and obtain licenses;
• Establishing anti-money laundering and counter-terrorism financing rules, enhancing monitoring of crypto transactions;
• Developing investor protection rules, including asset segregation, disclosure requirements, and complaint procedures;
• Creating special rules for stablecoin issuers, requiring sufficient reserves.

FCA stated that rapid growth in the crypto industry presents opportunities and risks, necessitating a suitable regulatory framework to protect consumers and maintain financial stability. The consultation will accept public and industry feedback until March 17, 2024.

Reactions in the crypto industry vary. Major exchanges and firms welcome the framework, seeing it as providing regulatory certainty. However, some DeFi projects and enthusiasts worry that excessive regulation could hinder innovation.

Experts believe the UK’s framework aims to balance innovation and risk, fostering a favorable environment for the industry. Details and enforcement methods are still to be clarified. Some expect revisions before final implementation.

3. EU Reaches Temporary Agreement on Crypto Asset Market Regulation

The EU Commission, European Council, and European Parliament reached a temporary agreement on December 17 to regulate crypto asset markets, marking an important step toward a comprehensive regulatory framework.

Main points of the temporary agreement include:

• Classifying crypto assets into token types: non-equity tokens (e.g., Bitcoin), equity tokens (e.g., representing company shares), and electronic money tokens (e.g., stablecoins);
• Requiring issuers and service providers to undergo review and obtain licenses, comply with AML and consumer protection rules;
• Banning algorithmic stablecoins, requiring issuers to hold sufficient reserves;
• Regulating crypto exchanges, wallet providers, and other service providers;
• Establishing a EU-wide crypto asset regulatory authority to coordinate national measures.

The agreement aims to unify crypto asset regulation within the EU, protect investors, prevent money laundering, and allow room for innovation. It will be the first comprehensive crypto regulation framework globally.

Industry reactions are mixed. Major exchanges and firms welcome the clarity, but some DeFi projects and enthusiasts worry about overregulation limiting innovation.

Experts see this temporary agreement as a milestone, providing a reference for other regions’ regulation efforts. Implementation details and enforcement are still to be clarified, with possible revisions before final adoption.