New York prosecutors warn against the US GENIUS bill, saying it could fuel stablecoin fraud.
The New York Attorney General's Office has issued warnings about the potential weakening of investor protections and increased fraud risks regarding the new US cryptocurrency law, the GENIUS Act. Meanwhile, Strategy recently purchased approximately 108.8 billion won (approximately $86 million USD) worth of additional Bitcoin (BTC) during the price plunge, and US Bitcoin spot ETFs have seen losses of over 2 trillion won (approximately $1.7 billion USD) over the past two weeks, putting them in a loss zone.
Prosecutors and Congress Issue Joint Letter Concerns About Immunity for Stablecoin Issuers
According to CNN, five state attorneys general, including New York Attorney General Letitia James, pointed out problems with the GENIUS Act in a letter to the U.S. Congress. They argued that the bill "would provide false legal protections to stablecoin issuers," and that "it could limit state enforcement of consumer protections, leaving users without access to restitution if they suffer losses due to fraud or hacking."
The letter specifically criticized the inconsistency of stablecoin issuers' "voluntary cooperation policies" during criminal investigations, arguing that this could hinder damage response. It also pointed out that if issuers do not actively cooperate with freezing or recovering funds, the potential for abuse increases.
The GENIUS Act was signed into law in July of last year and is expected to take effect 18 months from its enactment date or 120 days after U.S. regulators finalize relevant rules, whichever comes first.
Strategy takes advantage of the bear market to purchase an additional 108.8 billion won worth of Bitcoin.
Despite the Bitcoin bear market, Strategy continued its steady "bottom buying" strategy. According to a recently filed disclosure, Strategy, led by Michael Saylor, purchased 855 Bitcoins last week at an average price of $88,000 (approximately KRW 128.02 million). The total purchase amount was approximately $75.3 million (approximately KRW 108.8 billion).
At the time, Bitcoin had risen to $90,000 (approximately 130.77 million won), but on Sunday, it plummeted below $75,000 (approximately 109.02 million won), falling below Strategy's average purchase price of $76,052 (approximately 107.85 million won). Strategy currently holds 713,502 Bitcoins, and its total purchase amount is approximately $54.26 billion (approximately 78.8389 trillion won).
According to market prediction platform Polymarket, the probability of Bitcoin falling below $65,000 (approximately 94.44 million won) this year has risen to 72%, and the probability of Strategy holdings reaching 800,000 Bitcoin has reached 81%.
ETF investors enter a price range below the average, with 2 trillion won flowing out over two weeks.
Investors in U.S. Bitcoin spot ETFs have entered a period of unit loss. Alex Thorn, head of research at Galaxy Research, said, "Over the past two weeks, $2.8 billion (approximately 4.068 trillion won) has flowed out of U.S. Bitcoin spot ETFs," adding, "This represents the second and third largest outflows since the ETFs' launch."
According to Coinglass, $1.49 billion (approximately KRW 2.1664 trillion) of Bitcoin assets were withdrawn last week, and $1.32 billion (approximately KRW 1.9182 trillion) the week before. Consequently, the current Bitcoin price is lower than the average purchase price of ETFs, leading investors to move under the water (at a loss).
Currently, the total assets under management of US Bitcoin spot ETFs are approximately $113 billion (approximately KRW 164.289 trillion), with total holdings estimated at approximately 1.28 million BTC. Taking this into account, the average purchase price is approximately $87,830 (approximately KRW 127.6 million) per Bitcoin.
This decline highlights the risks posed by the Bitcoin market, which remains volatile despite institutional inflows. Regulatory controversies surrounding the GENIUS Act and the sensitive supply and demand dynamics of ETF investors are expected to remain key market variables for the foreseeable future.
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Recently, the New York Attorney General's Office expressed strong concerns about the "GENIUS Act," warning of the potential for increased stablecoin fraud. At the same time, over 2 trillion won has flowed out of US Bitcoin spot ETFs over the past two weeks, leading investors to experience losses relative to their average purchase price. While Strategy has relentlessly purchased additional BTC below the average price, such a decision is far from easy for individual investors.
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This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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