Gate News Report, March 10 — According to Santiment data, due to war panic and uncertainty surrounding the "Clarity Act," traders are inclined to heavily short, with Bitcoin short positions significantly exceeding long positions.

Trump stated at the Florida conference that he will refuse to sign any other laws until the "SAVE America Act" is approved by Congress, which addresses issues such as voter identification. This stance could impact the progress of legislation related to the cryptocurrency industry. At the same time, Trump has prioritized crypto regulation but currently considers the voter identification bill as the top priority.

Wyoming Senator Cynthia Lummis is advocating for a proposal to exempt small cryptocurrency transactions from taxation while discussing the Digital Asset Market Structure Act. She proposed establishing a $300 tax-free allowance, allowing users to trade cryptocurrencies without paying capital gains tax, aiming to address the issue of when taxes should be applied during transactions. The proposal has not yet gained support from her Democratic colleagues.

Gate News Announcement: On March 9, the Financial Intelligence Unit (FIU) of South Korea issued a preliminary notice to a certain CEX for suspected violations of the "Specific Financial Transaction Information Act," engaging in transactions with unreported overseas virtual asset service providers, and inadequate KYC procedures. The exchange has been temporarily suspended for "6 months with partial operation." Responsible personnel will be held accountable. This restriction mainly affects the virtual asset withdrawal function for new users. Existing users' KRW and crypto asset deposits, withdrawals, and trading are temporarily unaffected.

Former CFTC Chairman Giancarlo pointed out that the U.S. Digital Asset Market Clarity Act has stalled due to disputes over rewards paid to crypto companies, making the demand for this legislation even more urgent among banks. He warned that if the impasse continues, crypto businesses might shift to Europe and Asia.

The CLARITY Act is entering a critical stage, with lawmakers planning to advance it before April 3rd, aiming to clarify regulatory responsibilities for digital assets. The negotiations mainly focus on the regulation of stablecoin yield products, and no agreement has been reached yet. The passage of the bill will impact the participation of American banks in the digital asset space and their global competitive position.

The U.S. Department of the Treasury has proposed new measures under the "Genius Act" to combat cryptocurrency crimes, with a focus on monitoring illegal digital asset activities, especially the abuse of stablecoins. The Treasury recommends adopting AI-driven blockchain monitoring tools and bringing major stablecoins into a strict compliance framework to reduce criminal risks and enhance transparency. At the same time, the report shows that North Korean hackers are stealing cryptocurrencies severely, and global online scams are increasing, prompting updates to the regulatory framework.

The U.S. Department of the Treasury recommends that Congress introduce the "Freeze Act," granting crypto platforms the authority to temporarily freeze suspected illegal funds during investigations to strengthen efforts against digital asset fraud and money laundering. The proposal aims to provide legal grounds for financial institutions to voluntarily freeze assets related to suspicious transactions during investigations. Despite legal controversies and transparency issues, it is seen as an important tool in combating crypto crime.

Former CFTC Chairman Giancarlo stated that a clear regulatory framework for cryptocurrencies is crucial for the U.S. banking system. The lack of regulation could cause the U.S. to fall behind Asia and Europe in financial innovation. He pointed out that banks find it difficult to make large-scale investments in blockchain technology in an uncertain legal environment and warned that the U.S. might be forced to follow global digital financial trends. Even if the Crypto Market Structure Act does not pass, regulatory agencies may still implement temporary policies, but these cannot replace a stable legislative framework.

Gate News: On March 8, the U.S. Department of the Treasury submitted a report to Congress under the GENIUS Act, recommending that DeFi be explicitly required to undertake anti-money laundering and counter-terrorism financing (AML/CFT) obligations, and considering the establishment of a "hold law" mechanism for digital assets, allowing institutions to temporarily freeze assets during investigations of suspicious transactions without a court order. The report also revealed that the scale of crypto crimes continues to grow, with FBI records showing $9 billion in crypto scam losses in 2024.