11.19 AI Daily Tech Giants, Financial Policies, and Encryption Ecosystem: New Trends in AI Development and Regulation

1. Headlines

1. Google releases 3: AI reasoning and coding capabilities significantly improved.

Google officially launched the new generation of large language model 3, which has powerful multimodal reasoning capabilities and has set records in multiple evaluations. The core innovation of 3 is the introduction of Agentic functionality, which can actively complete multi-step tasks, enhancing contextual understanding and execution capabilities.

The model supports a million token context window, enabling unified analysis of video, audio, images, and text. Google has also launched the Anti development platform, allowing developers to delegate tasks to autonomous agents for intelligent coding. CEO Sundar Pichai stated that 3 will help people turn their ideas into reality.

Analysts believe that 3 demonstrates Google's leading position in large model training and application. Its strong reasoning and planning capabilities are expected to drive the widespread application of artificial intelligence in areas such as programming, analysis, and decision-making. However, the model's security and interpretability still need to be further strengthened.

2. The plunge in U.S. tech stocks raises concerns over the AI bubble.

U.S. tech stocks were sold off on Tuesday as investors' concerns about the overvaluation of AI companies intensified. The tech-heavy Nasdaq fell about 1.8% in early trading, while the S&P 500 index dropped about 1.2%.

Nvidia fell by 3.5% at one point, while Microsoft, Amazon, and Meta Platforms each dropped by about 3%. Analysts say these companies represent the core of this year's AI boom and have now become the biggest losers on Wall Street.

Investors are concerned that the high valuations of AI companies have detached from fundamentals, creating a new bubble. Schroders' Chief Investment Officer Kirkland pointed out the risks of “overvaluation” and a “bubble environment,” and advised against passive holding of AI-related sectors.

However, some analysts believe that Nvidia's financial report this week may boost market confidence. The deputy chief economist at Capital Economics stated that Nvidia's earnings report will determine the trend of the tech sector in the coming weeks and even for the rest of the year.

3. Cloudflare's global outage triggers calls for decentralization

U.S. cybersecurity service provider Cloudflare experienced a large-scale network outage affecting thousands of websites and services, including Telegram-associated blockchain Toncoin, ChatGPT, and social media platform X.

The outage lasted nearly 4 hours, affecting a range of services from news media to e-commerce checkout and payment services. Cloudflare's CEO acknowledged that this was the company's most severe interruption since 2019, caused by an abnormal configuration file that led to a chain failure.

The event has reignited the discussion on the necessity of adopting a decentralized physical infrastructure network ( DePIN ). Analysts point out that when a single upstream provider encounters problems, the impact is not limited to a specific industry, but will cascade and spread.

DePIN provides services through distributed nodes, effectively avoiding centralization risks. However, its cost and performance are also questioned, and future technological innovation and business model innovation need to work together to drive progress.

4. Shift in U.S. Regulatory Policy: Cryptocurrency No Longer a Focus of Scrutiny

The U.S. Securities and Exchange Commission ( SEC ) has, for the first time, not listed cryptocurrencies as an independent risk category in its review priorities for the fiscal year 2026, marking a significant shift in regulatory attitude.

Compared to the special focus on crypto assets in 2024 and 2025, the new document incorporates related risks into a broader range of technical topics, such as cybersecurity and anti-money laundering. Analysts believe this reflects a decrease in the SEC's emphasis on cryptocurrency regulation.

However, the SEC's position is not completely relaxed. The document emphasizes that it will continue to review the use of crypto assets in investment portfolios, as well as the marketing practices of related products and services. It just no longer views them as a separate high-risk area.

Industry insiders point out that the slight adjustments in regulatory policies reflect the trend of cryptocurrencies increasingly becoming mainstream assets. In the future, they may be more integrated into the existing regulatory framework rather than being subject to special regulations.

5. Easing of bank regulations in the US: The Federal Reserve reduces the scope of reviews

The Federal Reserve announced a “major adjustment” to the way it regulates banks, which is an important measure taken by Governor Bowman to relax and optimize bank regulation.

The new policy elaborates on the key areas of focus for regulators regarding banks, mainly concentrating on significant financial risks, while imposing restrictions on other matters. At the same time, Bowman also plans to reduce the number of regulators by 30% over the next year.

Analysts believe that these adjustments will affect the Federal Reserve's approach to bank regulation in terms of overall stability, but will not change its regulatory strength in consumer protection and fair lending laws.

However, some opinions point out that reducing the scope of scrutiny may make it difficult for regulators to detect problems in a timely manner. Former senior officials of the Federal Reserve have warned that if the “rating system is weakened” and “business standards for stability are redefined,” it will increase systemic risk.

Overall, this series of measures aims to reduce the regulatory burden on banks, which is conducive to improving operational efficiency, but may also bring new risk hazards.

2. Industry News

1. Bitcoin briefly fell below the $90,000 mark, market sentiment is low.

The price of Bitcoin briefly fell below the $90,000 mark on November 18, reaching a low of $88,888. Analysts believe that this drop was mainly influenced by uncertainty in the macroeconomic outlook and expectations of interest rate hikes by the Federal Reserve. As a risk asset, Bitcoin often bears the brunt when investors' risk appetite declines.

The Market Sentiment Index shows that investor sentiment has fallen to an “extreme fear” level. Both trading volume and capital inflow have decreased, reflecting investors' cautious attitude towards the current market situation. Some long-term holders have chosen to exit, and selling pressure may continue in the short term.

However, some analysts remain optimistic about the medium to long-term prospects of Bitcoin. Renowned investor Tom Lee stated that Bitcoin is approaching the bottom range of this cycle, providing a good opportunity for long-term investors. The continued influx of institutional investors may bring a new round of upward momentum for Bitcoin.

2. The Ethereum privacy upgrade Kohaku framework is unveiled for the first time, with a focus on privacy protection.

Ethereum founder Vitalik Buterin showcased the framework for the Ethereum privacy upgrade Kohaku at a conference in Argentina. Kohaku aims to provide a modular privacy protection infrastructure for Ethereum, enabling developers to build secure, privacy-focused wallets and applications.

Privacy protection has always been a key focus in the development of Ethereum. As regulations become increasingly strict, the demand for asset privacy and transaction anonymity among users is growing day by day. The launch of Kohaku will bring more privacy protection features to the Ethereum ecosystem, enhancing the user experience.

Analysts believe that privacy protection not only helps attract more users to join the Ethereum ecosystem but also promotes the application of Ethereum in the institutional field. Financial institutions and enterprises have high demands for asset privacy and compliance, and Kohaku may provide better solutions for them.

3. Solana ecosystem token ASTER surges, privacy protection concept continues to ferment

The Solana ecosystem token ASTER surged 16.4% in the past 24 hours, with a market capitalization exceeding 10 billion USD. Analysts believe this increase was primarily driven by the ongoing fermentation of the privacy protection concept.

Recently, well-known projects such as Ethereum and Zcash have launched privacy protection upgrades, sparking the market's enthusiasm for the concept of privacy protection. As a privacy protection project within the Solana ecosystem, ASTER has naturally attracted capital attention.

At the same time, the latest roadmap released by the ASTER team has also provided positive support for its price increase. The roadmap shows that ASTER will launch multiple upgrades in the coming months, including privacy protection wallet, privacy computing, and other features to meet users' demand for privacy protection.

However, some analysts are cautious about the short-term rise of ASTER. They believe that the hype around privacy protection concepts may lead to a bubble, and investors need to be wary of potential risks.

4. Cloudflare experiences a global outage, affecting encrypted websites and applications.

On November 18, the well-known web service provider Cloudflare experienced a large-scale global outage, causing thousands of websites and services, including cryptocurrency sites and applications, to go offline. The outage lasted for several hours, reigniting calls within the industry for decentralized infrastructure.

According to Cloudflare's preliminary investigation, the outage was caused by an abnormal increase in internal configuration files, which triggered a system crash. Cloudflare's CEO has promised to strengthen the system validation and error handling mechanisms to prevent similar incidents from happening again.

Analysts point out that this incident once again highlights the vulnerability of centralized infrastructure. If crypto websites and applications can be deployed on a decentralized physical infrastructure network ( DePIN ), it will significantly reduce the risk of single points of failure.

At the same time, there are voices that believe DePIN is still in its early development stage, and there is still room for further optimization in terms of performance, cost, and other aspects. In the future, a hybrid model may emerge, with centralized and decentralized infrastructure developing in parallel.

5. Google releases 3, AI reasoning and coding capabilities achieve a leap.

Google recently released its latest AI model 3, achieving a significant leap in reasoning and coding capabilities. Model 3 can not only handle multimodal data such as text and images but also solve complex scientific and mathematical problems.

Google emphasizes that the capabilities of 3 in reasoning and responding based on input have significantly improved. It also introduces the smart agent feature, which can complete multi-step tasks under user guidance. This new feature is currently open for testing to users in the United States.

Analysts believe that the launch of 3 marks another significant advancement for Google in the field of AI. It not only demonstrates Google's strength in large model training but also paves the way for AI applications in programming, scientific research, and other areas.

At the same time, there are also voices questioning the safety and controllability of AI technology. Some experts are calling for stronger AI governance to prevent its abuse or loss of control. In the future, AI companies need to focus on the safety and interpretability of AI while enhancing computing power.

6. 美OCC: Banks can hold cryptocurrency to pay network fees.

The Office of the Comptroller of the Currency ( OCC ) recently issued an explanatory letter confirming that banks can hold cryptocurrencies on their balance sheets for the purpose of paying blockchain network fees. This policy provides regulatory clarity for the banking sector's participation in cryptocurrency activities.

The OCC points out that Ethereum transactions require gas fees to be paid in ETH. If banks want to operate on the Ethereum network, holding the necessary ETH is an unavoidable requirement. The OCC states that holding such assets is in compliance with federal banking law.

Analysts believe that this policy will encourage more banking institutions to enter the cryptocurrency space. Banks can utilize cryptocurrencies for cross-border payments, securities trading settlements, etc., improving efficiency and reducing costs.

However, the OCC also requires banks to manage relevant risks, including market risk, liquidity risk, cybersecurity risk, and others. In the future, the banking industry, while embracing cryptocurrencies, also needs to establish a comprehensive risk management system.

3. Project News

1. Google Releases 3: AI Reasoning and Coding Capabilities Achieve Breakthrough

Google has officially launched its latest AI model, 3, which represents a significant breakthrough for the company in the field of large language models. Version 3 features a million-token context window and multimodal understanding capabilities, supporting unified analysis of video, audio, images, and text. The new version introduces Agent, which can complete multi-step tasks under user guidance and is currently open for testing to Ultra users in the United States.

3 has set records in multiple evaluations, demonstrating excellent learning, execution, and planning capabilities, while also reinforcing safety. Google DeepMind's Chief Technology Officer Koray Kavukcuoglu stated: “This is our most intelligent model. It will help people turn any idea into reality.”

The release of this model marks a significant advancement for Google in the field of AI. With its strong reasoning and coding capabilities, it is expected to play an important role in multiple areas, promoting the development and application of artificial intelligence technology. Industry insiders generally believe that this breakthrough will further intensify the competition among tech giants in the AI field, leading the industry to a higher level.

2. Filecoin announces the launch of on-chain cloud infrastructure services

Filecoin announced the launch of Filecoin Onchain Cloud, providing fully decentralized and programmable cloud infrastructure for next-generation Web applications. This service will enhance the reliability of Chainlink and support a broader range of decentralized application scenarios.

As a pioneer of distributed storage networks, Filecoin has been committed to building a more open, transparent, and efficient data infrastructure. Filecoin Onchain Cloud will leverage the network's storage and computing capabilities to provide developers with on-chain cloud services, achieving true decentralization.

This innovation comes at a time when AI companies are facing increasingly stringent scrutiny and lawsuits for unlicensed data scraping for training purposes, and public trust in AI has sharply declined over the past five years. The launch of Filecoin Onchain Cloud marks an important milestone in the development of infrastructure that merges Web3 and AI, with the potential to drive the industry towards a more open, transparent, and equitable future.

3. Obex raised $37 million in financing to incubate the Sky ecosystem revenue project.

The cryptocurrency incubator Obex has completed a $37 million financing round, co-led by Framework Ventures, LayerZero, and the Sky ecosystem. Obex will provide a 12-week incubation program for projects within the Sky ecosystem, focusing on supporting the development of new sources of on-chain revenue.

The Sky ecosystem has authorized the deployment of up to $2.5 billion in USDS to qualified projects incubated through Obex via governance voting, providing funding support and scalability for these stablecoin strategies. Vance Spencer, co-founder of Framework Ventures, stated that Obex will address the current lack of robust risk infrastructure in the yield-bearing stablecoin market.

The project aims to provide attractive risk-adjusted returns for the Sky ecosystem, with the hope of driving the DeFi ecosystem towards a more decentralized, transparent, and efficient direction. Industry insiders believe that this initiative will further enhance the competitiveness of the Sky ecosystem and bring new innovative momentum to the industry.

4. U.S. OCC: Banks can hold cryptocurrency to pay network fees

The Office of the Comptroller of the Currency ( OCC ) confirmed through interpretive letter #1186 that national banks can hold cryptocurrencies on their balance sheets for the purpose of paying blockchain network fees. This policy clarifies the amount of cryptocurrency that banks must hold to support approved activities, categorizing such holdings as “incidental to banking.”

The OCC explained that when banks operate on a blockchain system, the use of native tokens to process transactions is an unavoidable requirement, making the holding of such assets compliant with federal banking laws. This move provides regulatory clarity for more financial services to use blockchain systems, while requiring banks to manage market, liquidity, cybersecurity, and legal operational risks.

This move is seen as a signal that US regulators are further embracing cryptocurrencies, which is expected to encourage traditional financial institutions to adopt blockchain technology more widely. However, it has also raised some concerns, such as the potential new risks that banks holding cryptocurrencies may bring, necessitating the formulation of corresponding regulatory measures.

4. Economic Dynamics

1. The Federal Reserve released the minutes of the monetary policy meeting, and inflation expectations remain high.

Economic Background: The US economy experienced a slow recovery in 2025. The annualized GDP growth rate for the third quarter was 2.1%, slightly below expectations. The inflation rate fell to 6.3% in October, but remains above the Federal Reserve's target level of 2%. The unemployment rate stayed at a low level of 4.3%.

Important Event: The Federal Reserve released the minutes of the October monetary policy meeting on November 19. The minutes show that, although inflation has cooled somewhat, most officials believe that inflation expectations remain elevated and further rate hikes are needed to control price pressures. Officials also stated that the economic outlook faces downside risks and that a balance needs to be sought between raising rates and avoiding excessive tightening.

Market reaction: After the release of the Federal Reserve's minutes, U.S. stocks fell slightly. Investors expect the Federal Reserve to continue raising interest rates by 50 basis points in December and to increase rates to around 5% in early 2026. The bond yield curve further inverted, reflecting market concerns about an economic recession. The U.S. dollar index rose slightly.

Expert analysis: Goldman Sachs Chief Economist Jan Hatzius stated that the Federal Reserve still needs to raise interest rates further to lower inflation expectations, but must proceed with caution to avoid triggering a severe recession. He predicts that the Federal Reserve will pause interest rate hikes in the first half of 2026. JPMorgan economist Michael Feroli believes that the Federal Reserve may start cutting interest rates in the second half of 2026 in response to an economic slowdown.

2. ECB President Lagarde reiterated the commitment to continue raising interest rates.

Economic Background: The Eurozone economy fell into recession in 2025. The GDP contracted by 0.4% year-on-year in the third quarter, and the inflation rate soared to 10.6% in October, setting a new historical high. The unemployment rate rose to 7.1% in September.

Important Event: European Central Bank President Lagarde reiterated in her speech on November 19 that the ECB will continue to raise interest rates to combat inflation. She stated that although the economic outlook is bleak, inflationary pressures remain significant, necessitating further tightening of monetary policy.

Market reaction: Lagarde's remarks intensified concerns about a recession in the European economy. European stocks fell on the day, and the euro slightly weakened against the dollar. The yield curve of European government bonds further inverted, reflecting investors' pessimistic sentiment about the economic outlook.

Expert Opinion: David Folkerts-Landau, Chief Eurozone Economist at Deutsche Bank, stated that the European Central Bank faces a difficult choice. He believes that the ECB should seek a balance between raising interest rates and supporting the economy to avoid triggering a more severe recession. Florent Prange, Chief Eurozone Economist at Crédit Agricole, suggests that the ECB may pause interest rate hikes in the first half of 2026.

3. China released its economic data for October, showing a slowdown in the recovery pace.

Economic Background: The Chinese economy is showing a moderate recovery trend in 2025. In the first three quarters, GDP grew by 4.9% year-on-year, lower than the initial target of 5.5% for the year. The inflation rate in October was 2.8%, and the unemployment rate was 5.1%, both at relatively low levels.

Important events: The National Bureau of Statistics of China announced the major economic data for October on November 19. The data shows that industrial production in October increased by 5.6% year-on-year, down from 6.3% in September; fixed asset investment grew by 5.8% year-on-year, lower than the 5.9% in the previous nine months; and the total retail sales of consumer goods increased by 3.8% year-on-year, down from 4.6% in September.

Market reaction: China's economic data for October fell short of expectations, raising concerns about a slowdown in economic recovery. The Shanghai and Shenzhen stock markets declined slightly, and the RMB/USD exchange rate dipped. The bond yield curve flattened, reflecting cautious sentiment in the market regarding economic prospects.

Expert analysis: Dong Ximiao, a researcher at the Financial Research Institute of the Chinese Academy of Social Sciences, stated that the data for October reflects a weakening momentum in China's economic recovery, mainly constrained by weak exports and sluggish real estate investment. He suggested that the government increase infrastructure investment and further relax real estate control policies. Liang Hong, chief economist at CICC, believes that China's economy will still maintain a mild recovery trend, but the growth momentum may further slow down.

5. Regulation & Policy

1. The OCC in the United States allows banks to hold cryptocurrency for payment network fees.

Policy Background

The Office of the Comptroller of the Currency (OCC) is an independent federal agency responsible for regulating all national banks. With the development of cryptocurrency and blockchain technology, the interaction between banking and crypto assets is increasing, and the OCC needs to clarify the regulatory policies for banks in this emerging field. This policy aims to provide regulatory guidance for banks participating in cryptocurrency activities.

Policy Content

The OCC confirmed in its interpretive letter No. 1186 released on November 19 that banks can hold cryptocurrencies on their balance sheets to pay for blockchain network fees. The OCC specifically mentioned the Ethereum network as an example, indicating that Ethereum transactions require gas fees to be paid in ETH, and banks can hold the necessary cryptocurrencies on their balance sheets to pay these fees.

The guidance document states: “We confirm that the proposed activities described by the bank are permissible,” and explains that failing to do so may result in “costs and significant risks associated with operational complexities, asset price fluctuations, and transaction delays.”

Market Reaction

This policy provides regulatory certainty for banks participating in cryptocurrency activities. Industry insiders believe that this move will encourage more financial institutions to adopt blockchain technology and promote the integration of cryptocurrencies with the traditional financial system. At the same time, there are views that the OCC should further clarify the specific restrictions and risk management requirements for banks holding cryptocurrencies.

Expert Opinion

Caitlin Long is the founder of the cryptocurrency bank Custodia Bank, and she welcomes this policy. Long believes this is an important step forward for the OCC in cryptocurrency regulation. She noted: “This clears some obstacles for banks to participate in cryptocurrency activities.”

Hester Peirce is a commissioner of the U.S. Securities and Exchange Commission, and she has expressed support for this policy. Peirce stated: “This is a reasonable decision; banks should be able to participate in the operation of blockchain networks.”

2. U.S. Senators Urge IRS to Reevaluate Taxation Policy on Crypto Staking Rewards

Policy Background

In 2023, the IRS ( released guidelines requiring cryptocurrency holders to pay taxes upon “receiving” staking rewards, rather than when they “sell” them. This policy has sparked strong opposition from the cryptocurrency industry, which argues that it does not accurately reflect the economic substance of the staking mechanism. As a member of the Senate Finance Committee, Indiana Republican Senator Todd Young ) has formally called on the Treasury Secretary to reconsider this policy.

(# Policy Content Senator Yang wrote to Treasury Secretary Scott Basset on November 19, questioning the reasonableness of the current regulation that considers staking rewards as taxable income when “received” rather than when “sold.” He pointed out that this policy may not accurately reflect the economic nature of the staking mechanism and requires further review and adjustment.

Senator Yang also stated that this policy creates uncertainty for taxpayers and may affect the fiscal revenue assessment of legislative proposals. This controversy arises at a time when both parties in Congress are negotiating regulations on the structure of the digital asset market, reflecting significant differences that still exist in cryptocurrency tax policy.

)# Market Reaction The cryptocurrency industry welcomes Senator Yang's call. Industry insiders believe that the current tax policies are unreasonable and need to be updated in a timely manner. At the same time, there are also views that even if the policies change, cryptocurrency investors still need to pay special attention to their tax obligations.

Expert Opinion

Shehan Chandrasekera is the Chief Strategy Officer of the cryptocurrency tax software company acker, and he stated: “We are pleased to see Senator Yang make this call. The existing policies have obvious flaws and need to be aligned with the industry.”

Perianne Boring is the founder of the Chamber of Digital Commerce. She pointed out: “This reflects Congress's focus on cryptocurrency tax policy. We need a clear and fair tax framework to promote industry growth.”

3. The SEC removes cryptocurrencies from its review priorities for 2026.

Policy Background

The U.S. Securities and Exchange Commission ### SEC ### is a federal agency responsible for regulating the securities market. In recent years, the SEC has consistently prioritized cryptocurrency as a key area for annual review, reflecting a high level of attention to this emerging asset class. However, in the review priorities for the fiscal year 2026, the SEC has removed cryptocurrency from its independent risk category for the first time, marking a shift in regulatory focus.

(# Policy Content In the document “2026 Review Priorities” released by the SEC on November 19, cryptocurrency was not listed as a separate risk category. Compared to the specific focus on crypto assets in the documents for 2024 and 2025, the new document incorporates related risks into broader technological themes such as cybersecurity and anti-money laundering.

New SEC Chairman Paul Atkins emphasized that the review should not become a “trap-like” procedure, and the focus should shift to core areas such as fiduciary duties, custody, and customer protection. The market generally sees this as a signal of a more lenient regulatory attitude.

)# Market Reaction The cryptocurrency industry has had mixed reactions to the SEC's policy shift. Some believe that this reflects the regulator's increasing recognition of the maturity of cryptocurrencies, which is beneficial for industry development. However, there are also views that the SEC may still impose regulations on cryptocurrencies in other areas.

Overall, the market has high expectations for the regulatory style of the new SEC chairman, hoping to create a more inclusive environment for cryptocurrency innovation.

Expert Opinion

Jake Chervinsky is the chief lawyer at the cryptocurrency law firm Compound Capital, and he stated: “The SEC's shift in policy reflects the evolution of cryptocurrency regulation. We look forward to seeing clearer and more consistent regulatory guidelines.”

Caitlin Long holds a different view, stating: “The SEC still considers cryptocurrencies a key area of focus, but has incorporated them into a broader technological risk framework. We need to continue to closely monitor regulatory developments.”