Introduction

This report summarizes the Web3 industry policies and macro events that occurred in the past week: On February 28, the U.S. core PCE price index for January rose by 2.6% year-on-year, generally in line with expectations. On March 3, Trump announced an initiative to establish a U.S. crypto reserve, potentially incorporating BTC, ETH, SOL, XRP, and ADA as core assets. On March 5, USDC became the first USD stablecoin approved for use in Japan. The White House supports repealing the crypto broker rule, possibly signaling a turning point for DeFi regulation. U.S. February ADP employment numbers unexpectedly fell to 0.077 million, falling short of expectations.

Abstract

• February 28 - The U.S. core PCE price index for January rose by 2.6% year-on-year, generally in line with expectations
• March 3 - Trump announced an initiative to establish a U.S. crypto reserve, incorporating BTC, ETH, SOL, XRP, and ADA as core assets
• March 5 - USDC became the first USD stablecoin approved for use in Japan
• March 5 - The White House supports repealing the crypto broker rule, possibly signaling a turning point for DeFi regulation
• March 5 - U.S. February ADP employment numbers unexpectedly fell to 0.077 million, falling short of expectations

Key Events

February 28 - The U.S. core PCE price index for January rose by 2.6% year-on-year, generally in line with expectations.

According to a report released by the U.S. Department of Commerce on February 28, inflation eased slightly in January, while concerns over President Donald Trump’s tariff plans intensified. The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index (PCE), rose by 0.3% for the month, with an annual rate of 2.5%. The core PCE, which excludes food and energy, also increased by 0.3% for the month, with an annual rate of 2.6%. Fed officials focus more on the core index as it better reflects long-term trends. The 12 - month core index declined from the upwardly revised 2.9% level in December. Overall inflation dropped by 0.1%. In general, inflationary pressure has eased, which may reduce the Federal Reserve’s need for further interest rate hikes, especially as inflation gradually approaches its 2% target.

March 3 - Trump announced an initiative to establish a U.S. crypto reserve, incorporating BTC, ETH, SOL, XRP, and ADA as core assets

U.S. President Donald Trump announced on Truth Social that his executive order on digital assets will promote the establishment of a U.S. cryptocurrency strategic reserve, including XRP, SOL, and ADA, while also stating that BTC and ETH will be core assets of the reserve. He criticized the Biden administration’s crackdown on the crypto industry and pledged to make the U.S. a global cryptocurrency hub.
Following the announcement, the market sentiment surged rapidly. Within 24 hours, SOL rose by 20.1% to surpass 170 USDT, XRP increased by 31.5% to exceed 2.8 USDT, and ADA surged by 68% to break through 1.1 USDT.
Trump’s statement highlights that cryptocurrency has become a key topic in U.S. politics, with policy positions potentially having a direct impact on the market. His support could further drive regulatory relaxation in the crypto industry and attract more capital inflows. However, the proposal still lacks specific implementation details. While the market is reacting in the short term due to sentiment, the long - term impact remains to be seen.[2]

March 5 - USDC became the first USD stablecoin approved for use in Japan

SBI VC Trade, a virtual currency exchange under Japan’s financial giant SBI Holdings, has obtained an electronic payment provider license issued by the Japan Financial Services Agency (JFSA) under the new payment framework, making it the first institution in Japan to receive such a license. SBI Holdings and Circle signed a partnership agreement at the end of 2023 to introduce Circle’s USDC stablecoin in Japan. With this new registration, SBI VC Trade plans to launch a beta version of its USDC-related services on March 12.[3]

This event indicates that the legitimacy of cryptocurrencies within the traditional financial system is gradually gaining recognition. For Circle, this is a significant milestone in entering the Japanese market and is expected to boost USDC’s adoption and influence in Asia significantly. For Japan’s fintech ecosystem, it also marks a more open and inclusive regulatory stance towards crypto technology.

March 5 - The White House supports repealing the crypto broker rule, potentially signaling a turning point for DeFi regulation

The U.S. White House Office of Management and Budget (OMB) issued a statement expressing public support for Senate bill S.J. Res. 3, which seeks to overturn an IRS rule regarding the total proceeds reporting requirement for digital asset brokers. This rule, introduced by the Biden administration at the end of 2024, expanded the definition of “broker” to include certain DeFi protocol software and required some DeFi users to report total crypto transaction proceeds and taxpayer information. The White House OMB stated that the rule would unreasonably increase compliance burdens for U.S. DeFi businesses, hinder industry innovation, and pose risks of user privacy breaches.[4]

The White House’s policy shift reflects a broader political struggle between the parties over crypto voters. The Biden administration’s previous strict regulatory stance conflicted with the interests of key crypto industry players in crucial 2024 election states, such as Texas miners and California developers. Meanwhile, the Republican-backed S.J. Res. 3 bill has received lobbying support from institutions like Coinbase. The OMB’s reversal may suggest that Democrats are attempting to court crypto industry votes in swing states, especially given Coinbase’s tens of millions of users and intense lobbying efforts from firms like a16z.

This move grants DeFi protocols at least a 12-18 month policy buffer period (due to congressional review and potential litigation cycles). However, deeper regulatory conflicts remain unresolved— the SEC may still expand oversight through its “securities definition,” and the Treasury Department could adopt “on-chain transaction tracking tools” as an alternative to broker reporting. For mining companies and trading platforms, it will be crucial to monitor upcoming policy developments. If a combination of “tax relief + ETF capital inflows + post-halving hashrate clear-out” aligns, it could create new structural opportunities in the market.

March 5 - U.S. February ADP employment numbers unexpectedly fell to 0.077 million

Data released by ADP Research showed that U.S. February ADP employment numbers unexpectedly fell to 0.077 million, significantly below the expected 140,000 and the previous value of 183,000. The slowdown in job growth may be due to policy uncertainty and a decline in consumer spending, leading to layoffs or slowed hiring last month. The ADP data and recent unemployment claims indicate that the U.S. labor market is gradually cooling. Layoffs among federal contractors and other businesses have further exacerbated this trend. In an environment of economic uncertainty, businesses are becoming more cautious about hiring, posing additional challenges for the labor market.

The University of Michigan’s monthly survey shows consumers are increasingly worried about rising unemployment rates over the next year. The decline in consumer confidence could further dampen spending, increasing the risk of an economic slowdown. The Federal Reserve closely monitors signs of labor market deterioration as it seeks to balance supporting employment and controlling inflation. Weak employment data undoubtedly complicates the Fed’s decision-making process.[5]

Conclusion

Several macroeconomic events influenced the cryptocurrency market trends from February 28, 2025, to March 6, 2025. This report comprehensively analyzes key developments in both the cryptocurrency market and the broader macroeconomy. On February 28, the PCE data met expectations, easing inflationary pressure. On March 3, Trump announced on Truth Social that his executive order on digital assets would promote the establishment of a U.S. cryptocurrency strategic reserve, which would include XRP, SOL, and ADA, while BTC and ETH would also serve as core assets. On March 5, USDC became the first USD stablecoin approved for use in Japan. The White House supported repealing the crypto broker rule, potentially signaling a turning point for DeFi regulation. Additionally, U.S. February ADP employment numbers unexpectedly fell to 0.077 million, falling short of the expected 140,000 and the previous 183,000. Overall, the rise in the U.S. Inflation expectations had widespread impacts on Federal Reserve policy, global markets, U.S. equities, the cryptocurrency market, and emerging markets.


References:

1. CNBC,https://www.cnbc.com/2025/02/28/pce-inflation-january-2025-.html
2. Techflow,https://www.techflowpost.com/article/detail_23958.html
3. Coindesk,https://www.coindesk.com/markets/2025/03/04/circle-s-usdc-to-be-first-usd-stablecoin-in-japan
4. X,https://x.com/davidsacks47/status/1896941181566894133?s=46&t=bcMyidYO0QkS5ajIW9CBdg
5. MarketWatch,https://www.marketwatch.com/story/adp-says-just-77-000-private-jobs-created-in-february-as-businesses-navigate-trump-tariffs-13a3cd08

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