Gate Daily Report (April 2): The U.S. Department of the Treasury releases a notice of proposed rules for the “GENIUS Act”; the CFTC says it is prepared to regulate the entire crypto market

Bitcoin (BTC) is experiencing a slight short-term pullback, currently around $67,600 as of April 2. The U.S. Department of the Treasury has issued a notice of proposed rules for the “GENIUS Act,” seeking public feedback on how state governments regulate small stablecoin issuers. Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated that the agency is prepared to oversee the entire crypto market.

Macroeconomic Events & Crypto Highlights

1. The U.S. Department of the Treasury released a notice of proposed rulemaking under the “GENIUS Act,” inviting public comments on whether small stablecoin issuers meet the “substantially similar” state-level regulatory standards. The rule aims to address a provision in the GENIUS Act: stablecoin issuers with assets under $10 billion may opt for state-level regulation instead of federal oversight, provided the state regime is “substantially similar.”

The public has 60 days to submit feedback on the Treasury’s proposed rules. This marks the Treasury’s first rule proposal for implementing the GENIUS Act and its third solicitation of public opinion on the legislation. The federal banking regulators FDIC and OCC have also issued proposed rules. The GENIUS Act does not include guidance for yield-bearing stablecoins; this has become a major obstacle to Congress passing broader market-structure legislation.

2. Michael Selig, Chairman of the CFTC, said the agency is ready to regulate the entire $3 trillion crypto industry and reaffirmed that the CFTC is the sole regulator of prediction markets. However, Congress has yet to set a timetable for passing key market-structure legislation.

In his first 100 days in office, Selig stated that the CFTC is “ready to take responsibility.” Under his leadership, the CFTC has adopted several policies indicating a more lenient enforcement and regulatory stance toward digital assets compared to the previous administration. Last month, the agency signed an MOU with the SEC to coordinate regulation, including digital assets. Although early drafts of the market-structure bill proposed giving the CFTC more authority over digital assets, the SEC will continue to regulate those it classifies as securities.

News Updates

1. CryptoQuant: Bitcoin buying pressure failed to offset large holders’ sell-off wave

2. U.S. CFTC Chairman: The CFTC is ready to regulate the entire crypto market

3. U.S. intelligence assessment: Iran claims battlefield advantage and has no intention of substantive negotiations with the U.S. and Israel

4. Sources: Trump threatens to cut off Ukraine military aid, pushing Europe to join the Hormuz Alliance

5. U.S. Department of the Treasury releases proposed rules for the “GENIUS Act,” seeking input on state regulation of small stablecoins

6. Jupiter: unaffected by Drift attack incident

7. Morgan Stanley’s Bitcoin ETF files another S-1 amendment; analysts expect launch next week

8. Drift Protocol hacker incident losses exceed $277 million; stolen funds converted into approximately 129,000 ETH

Market Trends

1. Latest Bitcoin news: $BTC dips slightly in the short term, around $67,600; in the past 24 hours, $7.134 billion in liquidations, mainly from long positions;

2. U.S. stock markets closed higher for two consecutive days on April 1. President Trump prepared to address the nation on Iran, with investors optimistic that hostilities will end soon. The S&P 500 rose 46.97 points, up 0.7%, closing at 6,575.32. The Nasdaq Composite gained 250.77 points, up 1.2%, closing at 21,840.95. The Dow Jones Industrial rose 221.71 points, up 0.5%, closing at 46,565.74. The Philadelphia Semiconductor Index surged 2.8%, led by Micron and Intel with gains of 8.9% and 8.8%, respectively. TSMC ADR increased 1.1%. Intel announced a $14.2 billion buyback of shares in its Irish plant, boosting its stock by 8.8%.

(Source: Gate)

3. According to the Gate BTC/USDT liquidation map, with the current price at 68,635.40 USDT: if it drops to around $67,825, the total liquidation of long positions exceeds $61.13 million; if it rises to about $69,216, the total liquidation of short positions exceeds $275 million. Short liquidations are significantly higher than long ones. It is advisable to control leverage carefully to avoid large-scale liquidations during market fluctuations.

(Source: Coinglass)

4. In the past 24 hours, BTC spot inflow was $2.15 billion, outflow $2.08 billion, net outflow $0.07 billion.

(Source: Coinglass)

5. Over the last 24 hours, net outflows were observed in contracts such as $ETH, $BTC, $STO, $ONT, and $PIPPIN, indicating trading opportunities.

Selected Insights from X KOLs

Phyrex Ni (@Phyrex_Ni): “I initially wanted to wait for Trump’s speech, but I couldn’t hold out. Today, Iran’s president published an article addressed to Americans. The main message is that Iran seeks peace and has rarely initiated wars; the current situation is forced. Although it sounds like a complaint, it’s more like a declaration of ‘fight to the death.’ This suggests Trump believes a short-term ceasefire is unlikely—only a devastating strike might change that.”

“Currently, some U.S. politicians think Trump aims to exit the conflict by declaring unilateral victory, but withdrawing troops doesn’t necessarily mean the war is over. Trump might believe that after pulling out, the Strait of Hormuz will be open, and traffic will flow smoothly, but Iran’s current stance suggests that’s not easy. Plus, the Red Sea is also under Houthi influence.”

“The market is still largely driven by information. The rise in U.S. stocks and the fall in oil prices are not because the war has ended, but because the market expects it might. If expectations shift, the market could continue to fluctuate sideways, so caution is advised during this period.”

“Looking at Bitcoin data, many on-chain metrics for $BTC have already been released today. Overall, the data indicates that Bitcoin holders are not panicking, especially high-net-worth investors who mainly hold long-term. Investor sentiment remains fairly stable, with short-term traders causing most of the volatility.”

Today’s Outlook

1. Canada February trade balance (billion CAD), previous -3.65

2. U.S. last week’s initial jobless claims (thousands, as of 0328), previous 210

3. U.S. February trade balance (billion USD), previous -54.5