Coinbase’s chief of policy, Faryar Shirzad, hails the bipartisan momentum behind the US Senate’s recent approval of the GENIUS Act.

In a recent interview with CNBC, Shirzad said the subsequent legal clarity around stablecoins is a pivotal moment for the future of blockchain-enabled payments in the United States.

The upper chamber passed the aforementioned stablecoin bill with the support of 18 Democrats – an outcome Shirzad described as “the largest ever bipartisan majority on crypto legislation.”

According to him, if a few absent senators had been present, the tally could have reached as high as 70 votes in favour.

That, he added, signals a “two-thirds majority” that bodes well for continued progress in the House and a broader transformation of the American payments landscape.  

Stablecoin bill dubbed a catalyst for modern payments

Shirzad drew a compelling parallel between the current moment in crypto and the early days of the internet.

“Think of it as though we’re in 1990 and we’re talking about the internet and its potential to speed up communication, he told CNBC, adding, “it’s the same thing” with crypto and financial transfers.

Highlighting the inefficiencies of the US payment system – still built largely on 20^th-century tech – Shirzad argued that blockchain can deliver cross-border transactions at a fraction of the time and cost currently involved.

“We’re on the verge of a payments revolution,” he noted, and stablecoins are just the first piece of that puzzle.

While the stablecoin legislation provides much-needed regulatory clarity, Coinbase’s chief policy officer said the industry needs a broader framework around crypto market structure as well.

“Our hope is now that the Senate has moved on stablecoins, we’ll get similar action on market structure,” he revealed, stressing that both elements are essential to unlocking the full potential of crypto innovation.

Blockchain investments to accelerate as uncertainty wanes

For Coinbase as well as other corporations in the digital assets space, the stakes are rather high.

Regulatory ambiguity has long been cited as a major barrier to innovation, but Shirzad believes the tide is turning.

With a clearer federal framework on the horizon, Coinbase expects a surge in R&D spending as companies feel more confident about deploying capital.

According to Coinbase’s chief of policy, there already are “investment dollars sitting out there ready to build the next generation of the financial system,” and those funds could now be unleashed thanks to legislative clarity.

While there still are differences between competing bills, such as the GENIUS Act and the House’s earlier Stable Act, they’re unlikely to derail the broader bipartisan momentum, he added.

In Shirzad’s view, the market is approaching an inflection point. With Washington finally taking action, he believes the groundwork is being laid for a financial system where blockchain no longer sits on the fringe but powers the core.

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A recent government report from the Canada Mortgage & Housing Corp. (CMHC) indicates that even a doubling of homebuilding activity in Canada would only restore housing affordability to levels seen immediately before the Covid-19 pandemic.

This new assessment revises earlier, more optimistic projections and underscores the escalating scale of the nation’s housing affordability crisis.

Housing prices surge

The current challenge in Canada’s housing market stems from a combination of factors that intensified in recent years.

While major urban centers like Toronto and Vancouver have long grappled with a lack of affordable housing, the period of low interest rates in 2020 and 2021 significantly fueled a home-buying surge.

This, coupled with rapid population growth following the easing of pandemic restrictions, led to a frenzied market where prices escalated dramatically across numerous cities and regions.

The CMHC report highlights that, as of last year, the costs associated with a typical mortgage consumed approximately 54% of the average Canadian household’s income.

Revised projections and future targets

To address this widespread issue, the CMHC’s latest report, released Thursday, suggests a significant increase in construction is necessary.

The country must boost annual homebuilding to as many as 480,000 units by 2035 merely to bring affordability back to its 2019 levels.

This is a substantial increase from the current rate of approximately 250,000 units per year.

Earlier estimates from the national housing agency had called for a similar construction boost, aiming for achievement by 2030, with a more ambitious goal of restoring affordability to 2004 levels.

However, the CMHC has now stated that “Restoring affordability to levels last seen two decades ago isn’t realistic, especially after the post-pandemic price surge,” emphasizing how pervasive the housing affordability challenge has become.

The revision in the CMHC’s forecast and timeline is partly attributed to the lengthy processes involved in new housing construction.

The updated estimates now factor in rezoning procedures, which can add years to development schedules.

These projections, while not official government targets, provide a clearer scale of the problem.

Despite these adjusted expectations, Prime Minister Mark Carney, who was elected in April on promises to tackle the housing crisis, has maintained an election platform pledge to ramp up homebuilding over the next decade, with an eventual goal of reaching 500,000 homes per year.

Economic headwinds and urban impact

Economists surveyed by Bloomberg anticipate that Canada’s housing starts will average a lower 230,000 units between 2025 and 2027.

This projected deceleration in construction is primarily due to the ongoing impact of higher interest rates and general economic uncertainty weighing on the industry.

The CMHC report illustrates the potential impact of increased construction: doubling the current rate of home construction could see the affordability ratio drop to 41% by 2035, a notable improvement from the current 54%, though still a significant portion of household income.

Without this increased pace, the report warns, the current construction rate would yield almost no improvement in this ratio over the next decade.

Among Canada’s major cities, Montreal, the second largest, faces the most significant housing supply gap, with affordability projected to worsen if current trends persist.

Toronto, the nation’s largest city, would require a 70% increase in annual homebuilding to see improvements in affordability.

The report notes that while housing prices and rents in Vancouver and Toronto have long garnered international attention, these increases now burden many Canadians, with low-income and even some middle-class households struggling to find suitable and affordable housing.

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Asia-Pacific stock markets are seeing mixed trade Friday morning, with investors carefully watching escalating tensions between Israel and Iran and analyzing new economic data from China.

The escalating geopolitical situation, particularly reports that US President Donald Trump is weighing a military strike on Iran, is casting a shadow over regional sentiment, with Indian markets like the Sensex expected to open lower.

The global market mood remains cautious, largely due to the deepening conflict between Israel and Iran.

Adding to the unease, former and current US officials have told NBC News that President Donald Trump is considering a military strike on Iran, while simultaneously demanding “UNCONDITIONAL SURRENDER!” from the country’s leader, Ayatollah Ali Khamenei, in a Truth Social post.

These comments have intensified speculation about potential direct US involvement in the conflict, which could have far-reaching consequences.

Despite these significant geopolitical concerns, market performance across Asia is varied. 

Mainland China’s CSI 300 index started the day flat, and Hong Kong’s Hang Seng Index managed to add 0.56%.

This came after the People’s Bank of China (PBoC), as expected, kept its key loan rates unchanged, holding the 1-year loan prime rate at 3.0% and the 5-year LPR at 3.5%.

However, other major regional indices faced downward pressure. 

Japan’s benchmark Nikkei 225 dropped 0.14%, with the broader Topix index falling 0.25% in what’s described as choppy trade.

Over in Australia, the S&P/ASX 200 also fell, down 0.61% in similarly volatile conditions.

Economic insights: Japan’s inflation, Korea’s PPI

Amidst the geopolitical backdrop, key economic data releases provided further insights.

Japan’s core inflation rate climbed to 3.7% in May, its highest level since January 2023.

This metric, which excludes fresh food costs, came in higher than the 3.6% expected by economists polled by Reuters and was up from April’s print of 3.5%.

This persistent inflation will be closely watched by the Bank of Japan.

In South Korea, the Kospi index saw an increase of 0.65%, and the small-cap Kosdaq climbed 0.73%.

South Korea also released its producer price index (PPI) figures for May, which edged up 0.3% year on year.

This indicates the lowest growth in wholesale prices since they fell in July 2023, according to LSEG data.

On a month-on-month basis, the PPI fell 0.4% in May, a deeper decline than April’s 0.2% drop, suggesting some easing in factory gate prices.

Indian markets brace for lower open amid global unease

The Indian stock market is expected to open lower on Friday, June 20.

The rising tension between Israel and Iran has made investors nervous globally, and this sentiment is likely to weigh on early trade for both the Sensex and Nifty.

As of 8:00 a.m. IST, Gift Nifty futures were trading at 24,800. This suggests that the Nifty50 may open near its previous closing level of 24,793.25, indicating a tepid start.

On Thursday, both the Sensex and Nifty ended almost flat, while broader market indices saw a dip as traders became cautious due to the heightened global uncertainty.

Adding to the uncertainty for Indian markets is the awaited response from the US government.

The White House has stated that President Donald Trump will make a decision within two weeks on whether the US would provide military support to Israel.

With Wall Street remaining closed on Thursday for a national holiday, Indian markets received little guidance from overnight US trading.

Despite this weak global mood, domestic institutional investors (DIIs) continue to show confidence, remaining net buyers of Indian stocks for the 23rd session in a row on Thursday.

Their steady buying has provided some cushion against potential foreign investor selling and added liquidity to the market.

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Shares of Pop Mart International Group Ltd. fell sharply in Hong Kong trading after a commentary by Chinese state media raised concerns about blind-box toys and trading cards, and called for tighter regulations to protect minors.

The warning, though indirect, sparked investor anxiety over the future of Pop Mart’s flagship Labubu dolls, which are typically sold through blind-box formats.

The commentary, published on the 19th page of the People’s Daily, did not mention Pop Mart by name but criticized aspects of the business model that could lead to excessive purchases among children.

Legal experts cited in the article argued for more refined oversight, pointing to addictive tendencies among young consumers.

Pop Mart’s stock, which had surged nearly 170% this year amid the growing Labubu craze, dropped as much as 6.2% on Friday.

It had already fallen 5.3% the previous day. Shares of Bloks Group Ltd., another maker of collectible toys, also tumbled as much as 7.7%.

State media commentary impacts sentiment as regulatory crackdown fears resurface

The development evokes memories of earlier regulatory crackdowns in China’s tech and gaming sectors, where government interventions over concerns of addiction among minors led to sweeping industry changes.

A few years ago, Beijing introduced time limits for minors playing video games and curbed unsupervised spending, moves that significantly impacted gaming giants.

In 2023, China’s market watchdog had already introduced basic guidelines for blind-box sales, including a ban on sales to children under eight.

The latest commentary is seen as part of an evolving regulatory landscape, though not yet a formal directive.

“The commentary has weighed on investor sentiment, flashing some overheating signs in its business,” said Steven Leung, an executive director at UOB Kay Hian Hong Kong Ltd., referring to Pop Mart.

“Still, it’s a mild reminder as it didn’t come directly from a government official.”

Analysts see limited risk due to adult consumer focus, international growth

Despite this week’s decline, Pop Mart remains the top performer on the MSCI China Index, buoyed by strong consumer enthusiasm for its toys.

Wall Street analysts have continued to raise their price targets, pointing to the rising value and reach of the company’s intellectual property.

Analysts believe the company’s focus on adult consumers and international growth could cushion any regulatory headwinds in the domestic market.

“Concerns about the impact of tighter regulation on Pop Mart may be overdone,” said Morningstar analyst Jeff Zhang.

“Given that the company’s customer base demographic is largely 18 and above, the downside seems limited,” he said.

Zhang also added that a key driver of the company’s growth is likely to come from its overseas markets, so any regulatory clampdown in its domestic market might not pose a significant challenge on its overall growth.

Pop Mart’s 2025 net profit seen doubling due to strong global Labubu demand

The popularity of Labubu — a quirky, toothy monster doll — continues to grow, with a life-sized figure recently fetching over $150,000 at a Chinese auction house.

Last year, when the Labubu frenzy took off, Pop Mart’s shares rocketed 340%.

The company’s profits nearly tripled, and revenue more than doubled.

For 2025, Citi analysts expect net profit to grow 124% and revenue to rise 95%, citing growing global demand and strong intellectual property development.

Citi analysts noted the doll’s expanding appeal in the US and Europe could drive further earnings growth.

In a recent report, Citi raised Pop Mart’s target price to HK$308 from HK$162 and maintained its buy rating.

The bank praised Pop Mart’s ability to build original characters and scale them globally, calling its approach to IP development and product rollout “unparalleled.”

The toymaker, which currently boasts a market value of around $40 billion, expects overseas sales to more than double this year, with overall revenue growth projected to exceed 50%.

For now, despite regulatory murmurs at home, Pop Mart’s global ambitions and adult-focused fan base appear to offer some insulation — and continued momentum — for one of China’s hottest consumer stocks.

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European stock markets started Friday on a positive note, attempting to shake off some of the week’s losses as investors found some relief in easing bond yields.

However, this tentative rebound is set against a backdrop of deeply concerning UK economic data and the ever-present shadow of geopolitical conflict in the Middle East.

In a reversal of the trend seen in recent days, most sectors began the day in the green.

The pan-European Stoxx 600 index was up 0.5% in early trading, while Germany’s DAX gained 0.75% and the UK’s FTSE 100 rose 0.33%.

Even the travel sector, often sensitive to global uncertainty, was up 1.2%, while oil and gas shares eased by 0.6%.

This initial buying interest comes after a difficult week where markets were rattled by a slew of central bank actions—including a rate cut in Switzerland and rate holds from the Bank of England and US Federal Reserve—and persistent fears over the Israel-Iran conflict and the possibility of US involvement.

UK economic woes

The improved market sentiment, however, is being tested by a fresh batch of troubling economic news from the United Kingdom.

British shoppers pulled back on spending sharply in May, with retail sales falling 2.7% on the month, according to the Office for National Statistics.

This was the steepest drop since December 2023 and significantly worse than the 0.5% decline economists polled by Reuters had expected.

The disappointing figures break a four-month run of consecutive rises in retail sales, which had been the best streak since 2020.

Retailers had previously attributed stronger sales in April, which saw 1.3% growth, to a spell of sunny weather.

The May downturn suggests a more fundamental weakness in consumer spending.

Phil Monkhouse, UK country manager at Ebury, pointed to several contributing factors, including “higher inflation, energy bill increases and the tighter UK labor market,” all of which have contributed to lower spending.

He also noted that retailers are grappling with the impact of recent tax hikes.

Looking ahead, the outlook remains challenging. “With the Middle East tensions at breaking point, US tariff uncertainty still high and the Bank of England holding off interest rate cuts, the outlook for consumer demand looks rocky,” Monkhouse said.

This data follows figures published last week which showed the UK economy had already contracted in April.

Alongside the weak retail sales, the UK’s public finances also showed signs of strain.

The Office for National Statistics reported this morning that public borrowing hit £17.7 billion ($23.8 billion) in May, which is £700 million higher than the previous year.

The budget deficit, defined as the borrowing required to fund day-to-day public sector activities, came in at £12.8 billion. While this was down £1.7 billion compared to May 2024, the overall debt picture is worsening.

Public sector net debt (excluding banks) was provisionally estimated at 96.4% of gross domestic product, representing a 0.5 percentage point increase year-on-year.

Economists have warned that a combination of weak growth, higher borrowing costs, and recent reversals on some government spending policies means the UK may be facing more tax hikes later this year if Finance Minister Rachel Reeves is to meet her self-imposed “fiscal rules.”

Joe Nellis, economic advisor at accountancy firm MHA, cautioned in emailed comments, “If current trends persist, total borrowing for the 2025–26 fiscal year could approach or exceed £150 billion — well above the Office for Budget Responsibility’s Spring forecast of £137 billion.”

He added, “With limited scope for major tax rises or deep spending cuts in the short term, the Chancellor’s options to meet her fiscal rules are narrowing, especially the target to reduce debt as a share of GDP over the medium term.”

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