Today in crypto, China’s cabinet will reportedly review a roadmap that includes yuan-pegged stablecoins to bolster yuan internationalization, Santiment says Bitcoin’s dip below $113,000 saw retail traders flip “ultra bearish,” and Senator T…
Today in crypto, China’s cabinet will reportedly review a roadmap that includes yuan-pegged stablecoins to bolster yuan internationalization, Santiment says Bitcoin’s dip below $113,000 saw retail traders flip “ultra bearish,” and Senator Tim Scott expects Democrats to back Republicans on the CLARITY Act.
China weighs yuan-backed stablecoins in major policy shift: Reuters
China, one of the most restrictive global jurisdictions for cryptocurrencies, is reportedly considering allowing Chinese yuan-backed stablecoins in what would be a major policy reversal.
Chinese authorities may authorize yuan-backed stablecoins for the first time to promote global use of its currency, Reuters reported on Wednesday, citing sources familiar with the matter.
If approved, China’s reported plan for stablecoin use would mark a major shift in its approach to crypto after the country banned crypto trading and mining in September 2021.
The news follows multiple reports suggesting that mainland China has been warming up to stablecoins amid the US stablecoin push in 2025.
According to the sources, China’s State Council will review and potentially approve a roadmap later in August to expand global use of the yuan. The plan reportedly includes steps to counter the US progress on stablecoins and guidelines for risk prevention.
One use case for a potential yuan-backed stablecoin from mainland China would be the possible implementation of stablecoins for cross-border trade and payments with some countries.
This issue is expected to be discussed at the Shanghai Cooperation Organization (SCO) Summit that will be held between Aug. 31 and Sep. 1 in Tianjin.
Hong Kong and Shanghai have been identified as priority hubs for rolling out the policy, according to the sources.
Retail traders go from bullish to “ultra bearish” as Bitcoin dipped below $113,000
Retail crypto traders have seemingly flipped bearish after Bitcoin (BTC) failed to pick itself up from a recent dip below $113,000, clocking a 17-day low, blockchain analytics firm Santiment said on Wednesday.
“Retail traders have done a complete 180 after Bitcoin failed to rally and dipped below $113,000,” Santiment said, adding that the past 24 hours have marked “the most bearish sentiment seen on social media” since June 22, when fears of war in the Middle East caused a cascade of panic sells.
Santiment said negative social sentiment is a good thing for dip buyers, especially when there is “blood in the streets and fear is maximized” as short-term retail traders are also more inclined to panic sell or scalp profits than their diamond-handed counterparts, who view the asset class as a longer-term investment.
Santiment said that the panic selling was a “good sign of an upcoming dip bounce.”
Key Republican senator expects Democratic support for US crypto market structure bill
While the US Congress remains in recess until September, one of the senators leading the charge behind legislation to establish a digital asset market structure said he expects bipartisan support.
Speaking from the Wyoming Blockchain Symposium in Jackson Hole on Tuesday, Senate Banking Committee Chair Tim Scott said he expected at least some Democrats to join with Republicans to move forward on the Digital Asset Market Clarity (CLARITY) Act following the passage of the Guiding and Empowering Nation’s Innovation for US Stablecoins (GENIUS) Act.
The South Carolina senator said that he had already been making efforts to reach out to Democrats outside of the banking committee to “provide cover” to vote for the bill.
“We had 18 Democrats vote for the GENIUS Act,” said Scott. “I believe that we’ll have between 12 and 18 Democrats at least open to voting for market structure, a far more complicated piece of legislation, and the forces against it [...] it is a real force to overcome.”
