The U.S. Treasury has released its first draft implementing rules for the GENIUS Act, laying out guidelines for stablecoin issuance and use and seeking views on state oversight standards for smaller issuers. Treasury published a notice of proposed rulemaking and will take public comments for 60 days. The draft sets broad principles to judge whether a state regime is substantially similar to the federal framework, a key condition for allowing issuers with under $10 billion in assets to opt for state regulation.

Defensive bets against Bitcoin are rising quickly, with leveraged short Bitcoin ETFs lifting exposure to the second-highest level on record, research and brokerage firm K33 said. It described the market as in an “aggressive caution” phase as geopolitical risks and technical uncertainty weigh on sentiment. K33 also warned of possible bearish crowding, citing negative funding rates for 32 straight days. Seasonal factors around the Easter holiday may further thin liquidity and dampen volatility.