The market this morning

Federal Reserve opens stablecoin rules under the GENIUS Act as Bitget reports a hack and suspends withdrawals

By Crypto Info News

Good morning. The US Federal Reserve opened two proposals for public comment to implement last year's GENIUS Act, Decrypt reported. The proposals would require stablecoin issuers the Fed supervises to back their tokens fully with safe assets and would create an application process for banks seeking to issue stablecoins. CoinDesk reported the package includes rules governing stablecoin yield programs. Cointelegraph reported the proposal would set capital requirements, a two-day redemption window and new reserve disclosures. The two largest dollar stablecoins in the day's snapshot, USDT and USDC, held near their pegs.

The day's other dominant story was a reported breach at the exchange Bitget, and the figures were disputed. CoinDesk reported that Bitget said $352 million was affected and that CEO Gracy Chen announced the hack after independent researchers flagged unusual wallet movements; Cointelegraph put the figure at $351 million and reported that Bitget suspended withdrawals, saying unauthorized transfers affected a limited number of hot wallets while cold wallets and most platform assets remained unaffected. Decrypt reported that a newly created wallet drained hot and cold reserves labeled as belonging to Bitget across multiple blockchains in under an hour, and put the sum at $183 million. The Block reported that more than $170 million in crypto moved from Bitget wallets to an unidentified address, and that the reason for the transfers remained unclear. Bitget said user funds are safe, according to CoinDesk.

On enforcement and guidance, CoinDesk reported that New York sued Polymarket, alleging it is running an illegal gambling operation and seeking to block it from operating without a gambling license. Cointelegraph reported that the CFTC updated its guidance on tokenized assets and blockchain records; the CFTC's own release described updates to FAQs concerning registrants and registered-entity activities, and Cointelegraph reported the chair framed the move as providing regulatory clarity following a failed vote on the CLARITY Act. The SEC's Division of Economic and Risk Analysis published updated market statistics highlighting an increase in IPOs and proceeds raised.

In markets, Cointelegraph reported that US Treasury yields hit a 19-year high on Thursday, that Bitcoin held near $84,000 and that ONDO was the top performer among altcoins. Over the prior 24 hours Bitcoin was little changed, ether edged higher, and XRP and BNB gained. Separately, Cointelegraph reported that the APAC region accounts for half of the Global Crypto Adoption Index.

What to watch: the comment periods on the Fed's two GENIUS Act proposals, further disclosure from Bitget on the size and cause of the breach and the timing of any withdrawal resumption, and the New York case against Polymarket.