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raft

The consultation on the draft "Financial Law" has ended, with very little involvement regarding the legal status of digital currencies and the regulatory boundaries of crypto assets

According to Caixin, the one-month public consultation for the "Financial Law of the People's Republic of China (Draft)" ended today (April 19). This is the first overarching law in China and the world with "finance" in its name. The expansion of "quasi-judicial powers" for financial regulation is a topic of great concern in the market.According to Article 55 and related provisions, financial regulatory authorities have the right to access and copy property rights information, communication records, and transaction records of relevant entities and individuals when investigating financial violations. They can directly freeze or seal assets if there is evidence suggesting the transfer or concealment of illegal funds and securities. They can even decide that individuals suspected of violations cannot leave the country during the investigation.In addition, Zeng Gang, chief expert and director of the Shanghai Financial and Development Laboratory, believes that the "Financial Law" should also strengthen its focus and coverage on emerging financial formats. Topics such as AI-driven financial decision-making, the legal status of digital currencies, and the regulatory boundaries of crypto assets have sparked widespread controversy globally, but the draft addresses them very little. How to maintain a dynamic balance between lawful regulation and inclusive innovation is a problem left to be solved by legislation.

Multiple listed companies disclose Bitcoin strategies: DraftKings and Lionsgate report BTC, Greenidge initiates full retention

According to BBX data, yesterday, with the start of the first complete trading week of the second quarter, global listed companies disclosed several key data points regarding "cross-border positioning":$15 million initial position: DraftKings (NASDAQ: $DKNG) disclosed that it has completed a strategic allocation of $15 million in Bitcoin. As a North American sports betting giant, the company plans to use this reserve as the underlying clearing fund pool for its upcoming "Web3 event prediction market."100% hash rate retention: Greenidge Generation (NASDAQ: $GREE) released operational guidance for March and early second quarter yesterday, announcing that its mining facility in New York State has officially entered the 100% output retention phase and has further reduced the acquisition cost of each BTC by utilizing low off-peak electricity prices.$5 million IP anchoring: Lionsgate (NYSE: $LGF.A) confirmed yesterday that it has allocated $5 million to purchase Bitcoin. This marks the first time a leading Hollywood studio has included digital hard assets on its balance sheet, aiming to provide real asset backing for the on-chain tokenization (RWA) of its future film IP.Treasury hedge infrastructure: Cboe Global Markets (BATS: $CBOE) announced yesterday the launch of two brand new "enterprise-level Bitcoin volatility index options," specifically designed for listed companies with more than 500 BTC on their balance sheets, helping them smooth out the fluctuations in book value during quarterly reporting periods.

Circle's stock price once fell by 18%, and the U.S. Clarity Act draft aims to limit stablecoin rewards

On Tuesday morning, US stocks saw the issuer of USDC, Circle (CRCL), drop by as much as 18%, while the crypto platform Coinbase (COIN) fell by about 8%. CoinDesk reported that the latest draft of the U.S. Clarity Act aims to restrict rewards on stablecoin balances, including prohibiting rewards for passive stablecoin balances and banning structures that are "economically equivalent to interest."Mizuho analyst Dan Dolev stated that the draft may prohibit payments of earnings solely for holding stablecoins and limit any practices that make the program equivalent to bank deposits in any way. The report mentioned that the GENIUS Act previously prohibited issuers from directly paying earnings to users, but issuers and platforms arranged rewards through methods such as distributing earnings from reserve assets; among them, Circle earns interest on the assets backing USDC and shares it with Coinbase, which uses this to provide rewards to users.Keyrock digital asset researcher Amir Hajian noted that the latest draft of the Clarity Act points to the aforementioned "earnings penetration" model by prohibiting arrangements that are "economically equivalent to interest." Additionally, USDT issuer Tether announced that it has hired one of the "Big Four" accounting firms to conduct a comprehensive audit of its USDT reserves. The report also pointed out that this drop occurred after Circle's stock price had risen by 170% since early February, with Clear Street analyst Owen Lau suggesting that the market reaction may be excessive; market participants are also factoring in expectations of interest rate hikes.
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