1. Recently, the U.S. Securities and Exchange Commission (SEC) has made the following important developments regarding cryptocurrency regulation:
Reassessing cryptocurrency-related guidelines: SEC Acting Chair Mark Uyeda stated that the Commission is reviewing past guidelines related to cryptocurrencies to ensure they align with current regulatory priorities. This review covers key documents such as Bitcoin futures, digital asset investment contracts, and custody frameworks, aiming to alleviate regulatory pressure in the digital asset space and potentially trigger new regulatory frameworks.
Clarification of the non-securities nature of certain stablecoins: The SEC's Division of Corporation Finance issued a statement indicating that certain stablecoins, which are backed one-to-one by high-quality liquid assets and can be redeemed for dollars at any time, do not fall under the category of securities. However, stablecoins like Tether may not meet these standards due to their reserves containing precious metals and other crypto assets, and their redemption terms may have limitations.
These initiatives reflect the SEC's strategic adjustments in cryptocurrency regulation, which may bring a new regulatory environment to the digital asset industry.
2. Bitcoin developer Agustin Cruz proposed a Bitcoin Improvement Proposal (BIP) called the 'Quantum Resistance Address Migration Protocol' (QRAMP), aimed at guiding the Bitcoin network to migrate from the current Elliptic Curve Digital Signature Algorithm (ECDSA) to quantum-resistant cryptographic algorithms through a hard fork. The proposal suggests that after a designated block height, nodes running updated software will reject any transactions attempting to use ECDSA signatures, requiring users to transfer funds to more secure wallets before the deadline.
The rapid development of quantum computers may pose a threat to current cryptographic technologies. For example, Microsoft recently launched a quantum processing unit called Majorana 1, aimed at scaling to one million qubits per chip. Such advancements raise concerns about the security of existing cryptographic systems.
However, the QRAMP proposal requires implementation through a hard fork, which may spark controversy within the community. Some community members are concerned that this forced migration could pose security risks for un-migrated funds, including those held by Satoshi Nakamoto. Additionally, a hard fork may require significant organizational coordination and user cooperation, making implementation challenging.
With the continuous advancement of quantum computing technology, ensuring the security and quantum resistance of the Bitcoin network will become an important issue that developers and the community need to jointly address.
3. PayPal recently announced that it has added Chainlink (LINK) and Solana (SOL) to its list of supported digital assets. This allows PayPal and Venmo users in the U.S. to buy, hold, sell, and transfer these tokens directly through their accounts. The newly added tokens will be available to U.S. users in the coming weeks. This move is part of PayPal's ongoing expansion in the digital asset space since it first launched digital asset support in 2020. PayPal's Vice President of Blockchain, Crypto, and Digital Currency, May Zabaneh, stated, "Offering more tokens on PayPal and Venmo provides users with greater flexibility, choice, and access to digital currencies.
4. Recently, the U.S. stock market was heavily impacted by President Trump's announcement of new tariff measures, with approximately $5.4 trillion in market value evaporating within two days. The S&P 500 index fell to an 11-month low, and the Nasdaq 100 index entered bear market territory.
In contrast, the digital asset market has exhibited stronger resilience against declines. Bitcoin (BTC) has dropped around 6% since the tariff announcement, while the Nasdaq index has fallen 11% during the same period. The broader digital asset market (measured by the CoinDesk 20 index) has declined approximately 4.9% during the same timeframe.
As of April 5, the price of Bitcoin is approximately $83,487.74, and the price of ETH (ETH) is approximately $1,811.17.
Geoffrey Kendrick of Standard Chartered Bank noted that Bitcoin may become a hedge tool during times of instability in traditional finance. He stated, "In the past 36 hours, we can add 'U.S. isolation' as a hedging tool to Bitcoin's list of uses."
In addition, recent purchases of Bitcoin as reserve assets by companies such as GameStop and Strategy (formerly MicroStrategy) may also support its price.
Nonetheless, some analysts remain cautious about Bitcoin's status as a safe-haven asset, believing that more data is needed to validate its correlation changes with traditional markets.
