New York Attorney General Concerns About the GENIUS Act; Strategy Buys Bitcoin at Low Prices
The New York Attorney General's Office has officially warned that the US Congress's "GENIUS Act" could leave the stablecoin market vulnerable to fraud and consumer harm. Meanwhile, Strategy was found to have purchased over 110 billion won worth of Bitcoin (BTC) during last week's sharp price plunge. US Bitcoin ETFs have recently entered a loss phase, falling below their average purchase price with net outflows of approximately 4 trillion won over the past two weeks.
New York Attorney General's Office Draws Sword Against GENIUS Bill, Claiming It Could Aid Fraud
According to a CNN report, five state attorneys general, including New York Attorney General Letitia James, sent a joint letter to the U.S. Congress warning that the GENIUS Act (Innovation in American Currency Act) could weaken the accountability of stablecoin issuers, harming users.
The letter strongly criticized the bill for not imposing obligations on issuers to compensate users for losses resulting from fraud or theft. It also pointed out that by making cooperation in freezing or recovering funds voluntary, it could hinder compulsory investigations and law enforcement. This would grant issuers a "free pass," allowing them to evade the law without legal liability.
The GENIUS Act was signed into law in July of last year, and implementation is scheduled to occur 18 months after the bill takes effect or 120 days after US regulators finalize detailed rules, whichever comes first. Concerns are growing that investor protections could be weakened amid the widespread adoption of stablecoins.
Bitcoin briefly falls... Strategy buys 110 billion won worth at low prices.
Strategy, led by Michael Saylor, recently disclosed in a public filing that it purchased 855 Bitcoins last week. The purchase price was approximately $88,000 (approximately KRW 127.87 million), for a total purchase value of approximately $75.3 million (approximately KRW 109.4 billion). This occurred when the Bitcoin price briefly fell below $75,000 (approximately KRW 109.08 million).
Strategy's holdings of Bitcoin are valued at 713,502, with a cumulative purchase value of approximately $54.26 billion (approximately KRW 78.8493 trillion), and an average purchase price of $76,052 (approximately KRW 110.6 million). This is noteworthy because it marks the first time since 2023 that the Bitcoin price has fallen below Strategy's average purchase price.
According to prediction market Polymarket, there's a 72% chance that Bitcoin will fall below $65,000 (approximately 94.4 million won) this year. Furthermore, Strategy estimates there's an 81% chance that its Bitcoin holdings will surpass 800,000.
Bitcoin ETFs fall below average purchase price, with 4 trillion won flowing out over two weeks.
Alex Thorne, head of research at Galaxy Digital, reported that US spot Bitcoin ETFs have seen net outflows of $2.8 billion over the past two weeks. According to CoinGlass, the second and third largest outflows during that period were $1.49 billion and $1.32 billion, respectively.
Currently, Bitcoin ETFs in the US hold approximately 12,800 BTC, with total assets under management reaching $113 billion (approximately KRW 16.4279 trillion), according to BiTBO. Based on this data, the average purchase price is approximately $87,830 (approximately KRW 127.69 million). At this point, most Bitcoin spot ETFs have entered a loss-making phase.
Controversy over stablecoin legislation, increasing ETF losses… The virtual asset market is shifting.
Concerns are rising that regulatory overhauls for stablecoins could weaken user protection. At the same time, the Bitcoin market is struggling to find a clear direction amidst the interplay of large-scale institutional buying and individual investor outflows. This delicate imbalance is further exacerbating the tension between regulation and market reaction.
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💡 Frequently Asked Questions (FAQ)
Q.
What risks does the GENIUS Act pose to retail investors?
While the GENIUS Act regulates stablecoin issuers, it has been criticized for its inadequate protections for users against fraud or theft. This can make it difficult to obtain legal protection or recover assets in the event of damage, leaving even ordinary users vulnerable to significant losses due to lack of information.
Q.
What does Strategy's average Bitcoin price mean?
Strategy bought Bitcoin at an average price of approximately $76,052. A price higher than this represents a profit, while a price lower represents a loss. The average price of institutions like Strategy is recognized as a "support level" in the market and serves as an important reference point for price movements.
Q.
What does it mean that most Bitcoin ETF investors are losing money?
Over the past two weeks, more than $2.8 billion has flowed out of Bitcoin ETFs, and with Bitcoin trading below its average purchase price (approximately $87,830), most investors are suffering losses. This suggests a potential trend reversal or increased selling pressure.
TP AI Precautions
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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