U.S. Secretary of Commerce: The U.S.-China rare earth agreement has been signed, and the Trump administration has launched a new round of negotiations with 10 countries

U.S. Commerce Secretary Howard Lutnick stated this morning in an interview that after multiple rounds of negotiations, the U.S. and China have formally signed a trade agreement. The key point is China's commitment to export rare earth minerals, and the U.S. will gradually remove trade countermeasures in exchange. Meanwhile, the White House is expected to complete a new round of agreements with 10 other major trading allies within two weeks. Lutnick said the most critical content of the agreement is China's promise to export rare earth minerals to the United States. He claimed: "Once China truly begins exporting rare earth minerals to the United States, the U.S. will remove its trade countermeasures against China." The U.S. trade countermeasures include export controls on ethane plastic raw materials, chip software, and jet engines. Although the U.S. has recently relaxed export restrictions on ethane, special authorization is still required to export it to China. According to the report, some U.S. companies that rely on Chinese rare earth minerals are still waiting for China to approve export permits, and goods have not yet been released. According to the International Energy Agency's (IEA) latest 2025 report, the market share of the top three rare earth mining countries increased from 73% to 77% in 2024, controlling about 90% of global rare earth refining capacity. Materials needed for wind power, electric vehicles, F-35 fighter jets, and Patriot missiles rely on Chinese rare earth minerals. Due to high mining and purification technology thresholds and environmental costs, the global supply chain is highly concentrated in China. Despite the signed agreement, many U.S. companies relying on Chinese rare earth minerals are still waiting for Beijing's official export permit approval, and goods have not been fully released. The agreement also established a specific framework to expedite rare earth export procedures. Lutnick noted this is one of the most breakthrough negotiation results recently, indicating a critical turning point in the U.S.-China trade war. However, long-standing U.S. concerns such as fentanyl smuggling and Chinese market openness were not included in this agreement, leaving many variables in bilateral relations. (Note: Rare earth elements refer to the 17 elements from atomic numbers 57 to 71 in the periodic table, including Scandium and Yttrium. These elements have similar chemical properties and are widely used in high-tech and military fields, especially as indispensable materials in magnets, batteries, optics, and precision ceramics.) In addition to the agreement with China, Lutnick also revealed that President Trump plans to complete negotiations with 10 other major trading partners before the July 9 tariff agreement deadline. He emphasized: "We will prioritize the top 10 critical countries, and other countries will be sequentially included." For countries that do not reach an agreement, Trump will issue a notification letter explaining the U.S.'s upcoming tariff arrangements. Overall, the new U.S.-China rare earth agreement not only alleviates the rare earth supply pressure in the global high-tech industry but also lays the foundation for the Trump administration's new multilateral trade negotiations. To address long-standing transparency issues in the stablecoin market, the American Institute of Certified Public Accountants (AICPA) has published the "2025 Stablecoin Reporting Criteria," which for the first time establishes specific disclosure regulations for stablecoins "backed by fiat assets." This standard covers the number of circulating convertible tokens, asset composition, and whether both parties have achieved 1:1 reserve coverage, providing an verifiable information framework for auditors and investors.

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Which Tokens Are Considered "Convertible"? AICPA Requires Clear Classification

The new guidelines require stablecoin issuers to clearly disclose the classification and circulation status of various tokens. The report categorizes tokens into three main types:

• Convertible Tokens: Immediately convertible to equivalent fiat currency according to contract terms.

• Temporarily Non-Convertible Tokens: Such as time-locked tokens not yet unlocked, or tokens in temporarily restricted accounts.

• Permanently Non-Convertible Tokens: Including test tokens, permanently frozen tokens, etc.

Issuers need to start from the "actual minting quantity" on the blockchain, subtract the above non-convertible types, and calculate the truly circulating and convertible stablecoin quantity, and disclose related blockchain addresses and smart contract information for public verification.

Redemption Asset Composition Must Be Specifically Disclosed: Cash, US Bonds, Holder Information Explained Together

In the asset disclosure section, the guidelines require issuers to comprehensively explain the reserve contents supporting stablecoins, covering the following points:

• Asset Types: Cash, cash equivalents, money market funds, short-term US Treasury bonds, repurchase agreements, etc.

• Holder Identity and Jurisdiction: Disclose which type of financial institution holds the assets, the country, and the regulatory environment.

• Whether Assets Are Pledged or Have Usage Restrictions.

• Account Nature: For example, whether it is a custodial account, whether it has bankruptcy isolation protection.

These data will help investors determine whether assets can be quickly mobilized and not constrained by legal or financial risks in case of large-scale redemption needs.

1:1 Reserve and Time Discrepancy: Audit Mechanism First Included in Guidelines

The third part of the report clearly states that issuers should disclose the comparison between the total amount of convertible tokens and total reserve assets, and answer a core question: "Is 1:1 reserve maintained?"

According to the guidelines, if the issuer's terms specify that each stablecoin should correspond to one dollar of reserve assets, then the third-party auditor must verify this, disclose whether assets are sufficient, and explain any potential surplus or shortage situations.

Additionally, the report requires disclosure of specific amounts and reasons for "time discrepancies" and "temporary differences", including:

• Tokens paid but not yet minted.

• Redemption requests paid but funds not yet distributed.

• Temporarily non-convertible situations due to account restrictions or technical issues.

This information must be included in the report and disclose whether it has exceeded the processing time allowed in the issuer's terms, ensuring the public understands these differences are "temporary" and not systemic risks.

Can Assets Be Misused? AICPA Requires "Disclosure of Rights", But Does Not Directly Prohibit

Notably, the report does not prohibit stablecoin issuers from using reserve assets, such as for repurchase agreements, lending, or re-pledging. Instead, AICPA emphasizes "honest disclosure of asset usage rights and restrictions".

According to the guidelines, issuers must disclose whether they have rights to transfer, sell, lend, or re-pledge assets, and whether assets can only be used for token redemption. They must also explain the type of account where assets are stored, whether it has bankruptcy isolation, whether insurance has been purchased, or whether assets have been used as collateral.

This means that as long as information is fully disclosed, market participants can make judgments based on their own risk tolerance. For some issuers, this provides operational flexibility; for investors and audit institutions, it serves as a revealing mirror.

AICPA Guidelines Are Not Mandatory Regulations, But May Become Audit Basis

Although these guidelines do not yet have legal force, they are clearly designed to correspond with US accounting attestation standards (AT-C Section 205), meaning that in the future, stablecoin companies undergoing third-party audits will likely need to operate according to these standards.

AICPA also recommends that issuers incorporate the guidelines into their terms and operational rules when establishing them to reduce legal and reputational risks.

Industry observers point out that while the AICPA guidelines do not have regulatory force, they may become the basis for future legislation by U.S. regulatory agencies. Stablecoin issuers like Circle of USDC, or Tether, which is actively moving towards compliance, would help enhance market trust if they are the first to adopt these guidelines.