Good morning. Here’s what’s happening:

Prices The Asian and Crypto markets opened strong as the White House announced an agreement averting debt ceiling crisis. Bitcoin and Ether saw increases of 5% each.

Insights China did not say much about Web3 in its paper released over the weekend. However, the report was a step forward for a country which has already retreated from its approach towards cryptocurrencies.

Crypto has started the Asia trading session in the black after the White House declared a deal had been reached to avoid a debt crisis.

Bitcoin is currently up 5% at $28,249 while Ether is up 4.9% at $1,917. The CoinDesk Market Index is up 4% at 1,209.

Bitcoin has dropped 2.8% in the last month as the debt ceiling crisis continues to weigh heavily.

Joe DiPasquale CEO of BitBull Capital, a crypto fund manager, wrote in an email: “Bitcoin found a support level around $25K. It consolidated there for two weeks and then rallied today.” It remains to be determined whether this trend continues to $30K, but we anticipate the market leader will test that resistance again in the short term.

DiPasquale said: “On the other side, the range of $22K to $25K acts as a reliable support.

House Speaker Kevin McCarthy said to reporters on the weekend that the bill still needs work. He anticipates its completion by Sunday and a vote before Wednesday.

In a press release, Biden called the agreement a “compromise” and said it was an important step forward.

The stock markets of Asia have also opened strongly on the news. The Nikkei 225 in Japan was up 2% within the first 30 trading minutes, while Australia’s ASX 200 rose 1.18%.

The Biggest Gainers

Biggest Losers

Today, CoinDesk has no losers.

China’s Web3 isn’t our Web3

The Beijing Municipal Science & Technology Commission (BMST), which oversees Zhongguancun Park, a cluster of China’s top tech companies, academic institutions, and research institutes, released a document over the weekend that outlined suggestions to China’s web3 policies.

This excited the usual crowd on Crypto Twitter. It was sparked by a tweet sent out by Binance CEO Changpeng Zhao who stated that the timing of the announcement was “interesting”, considering Hong Kong will soon be enabling its crypto regulatory framework, on June 1.

But the reality is this whitepaper is more of China’s existing policy of blockchain-not-crypto.

Web3, as used in China, is an enhanced internet that includes artificial intelligence, blockchain technology, faster chips, and more resilient networks.

The whitepaper is interested in defining and improving the layers of internet infrastructure, which are identified as the infrastructure layer (or the layer of the Internet), the interactive terminal layer (or the layer of the platform tool), and the application layer. This is similar to the Open Systems Interconnection model of network layers which has been used since the 1980s.

This is not a bad thing. China wants to take the Next Generation of Technology Standards away from an American-led Western technology trading bloc.

This has nothing to do with cryptography.

The proponents of the China narrative claim that mainland China has only been a few steps ahead of Hong Kong when it comes to opening up its crypto trading market, much like the way the country looked to Hong Kong for stock exchange lessons before opening its own. It may be true now, but there are still many things to figure out, including how to allow cryptocurrency trading without causing conflict with mainland China’s capital control rules.

But that’s a topic for another day. China hasn’t yet embraced crypto.

Important events.

Italy Non-E.U. 5 p.m. SGT/HKT(9 a.m. Trade balance (April).

CoinDesk TV

If you haven’t seen it yet, here’s the latest episode of “First Mover” on CoinDesk TV.

Digital Currency Group, the parent company of CoinDesk (DCG), has closed TradeBlock’s prime brokerage and trade execution services, citing regulatory uncertainty and crypto winter. Brett Sifling, director of Get Invested at Gerber Kawasaki, shared his analysis on the crypto markets. Austin Campbell, adjunct professor at Columbia Business School, discussed the current state of stablecoin regulations in the U.S. Ari Redbord, head of legal and Government Affairs for TRM Labs explained why the number of crypto hacks has decreased significantly in the first quarter of 2023.

Striking for the Impossible – Reasonable Crypto Debate As a recent CoinDesk article about a controversial New York mining plant shows, crypto debates are becoming more polarized.

Binance and Other Crypto Players Shun Bridging Rumors as Multichain: Facts are hard to find, so a group of crypto players is taking action.

Lybra Finance, a stablecoin issuer, has reached a TVL of nearly $100M: Lybra Finance launched a stablecoin last month that uses liquid derivatives for staking.

Gulf Binance Secures Thai Regulatory Approval : Gulf Innova and Binance aim to offer crypto services in Thailand later this year.

Binance Japan’s General Manager, Takeshi Chino: Binance Japan’s business and activities are still “a far way” from being understood by regulators and gaining acceptance.

UPDATE (May 29, 2023, 1:10 UTC): Adds Joe DiPasquale comment.

James Rubin is the editor.