Gate Daily Report (April 10): U.S. Treasury Secretary supports sending the “CLARITY Act” to President Trump; WLFI’s $75 million stablecoin-backed loan sparks panic

After a strong surge over the short term, Bitcoin (BTC) saw a slight pullback and is temporarily around $71,830. U.S. Treasury Secretary Bessent said it is time to review and submit the CLARITY Act to President Trump for signing. WLFI borrowed about $75 million in stablecoins from the DeFi lending protocol Dolomite, which was co-founded by its adviser, triggering fears of liquidation.

Macro Events & Crypto Market Highlights

1. U.S. Treasury Secretary Bessent said that Congress spent nearly five years trying to pass a framework to ensure the future development of the financial industry. Now is the time for the Senate Banking Committee Republicans to review and send the Clear Act (CLARITY Act) to President Trump for signing.

According to a report by The Block, TD Cowen said the White House’s recent stablecoin report is unlikely to remove the political obstacles facing crypto legislation, and the path to advancing the CLARITY Act may be even more difficult. The report notes that banning stablecoin yields has little impact on bank lending, bringing only $2.1 billion in growth (0.02% of total loans). This stance is closer to the crypto industry than to the banking industry.

TD Cowen analysts believe that as long as small banks still view stablecoins as a threat to their deposit business, they will oppose crypto legislation, unless the bill explicitly bans stablecoin yields. The analysts also noted that the report suggests President Trump may want to allow stablecoin yields; this means a compromise allowing platforms to pay usage incentives but banning holding incentives may not receive support from the president, which would make passage of the CLARITY Act even harder. TD Cowen previously cut its expected likelihood of the bill passing this year to one-third.

2. According to CoinDesk, World Liberty Financial (WLFI), a crypto project involving the Trump family, staked about 5 billion units of its own token WLFI as collateral on the DeFi lending protocol Dolomite, borrowing about $75 million in stablecoins from the agreement, of which more than $40 million was transferred to exchanges. The related actions pushed the utilization rate of the USD1 pool on Dolomite to about 93%, making it difficult for typical depositors to withdraw funds in a timely manner.

Due to WLFI’s limited liquidity, once a price drop triggers liquidation, forced selling could cause the collateral’s price to fall rapidly. The protocol may incur bad debts, with the risk ultimately borne by depositors who currently cannot exit. Dolomite co-founder Corey Caplan also serves as an adviser to WLFI, raising questions about insider trading and the protocol’s circular-economy structure.

WLFI responded to questions about the lending position, saying there is no liquidation risk and that additional collateral can be added.

News Updates

1. TD Cowen: The White House stablecoin report is unlikely to clear legislative hurdles; advancing the CLARITY Act may be even tougher

2. CryptoQuant: Bitcoin and Ether price increases are driven by new long positions from perpetual contracts

3. Report: Kalshi holds 89% market share in U.S. prediction markets

4. Trump urges NATO to commit to ensuring the security of the Strait of Hormuz

5. Insiders say Iran will not hold talks with the U.S. before a ceasefire in Lebanon is achieved

6. Foreign media: Suspicion of insider trading clouds the situation; the White House asks its staff not to participate in prediction markets

7. U.S. Treasury launches a digital asset industry cybersecurity information-sharing initiative

8. Netanyahu: He has instructed to begin direct negotiations with Lebanon as soon as possible

9. Joint action by the UK, U.S., and Canada freezes more than $12 million in crypto scam funds

10. WLFI borrows about $75 million in stablecoins from the DeFi lending protocol Dolomite co-founded by its adviser

Market Trend

1. Latest news on Bitcoin: $BTC After a strong short-term surge, there was a slight pullback; it is temporarily around $71,830. In the past 24 hours, $152 million has been liquidated, mainly long liquidations and short positions;

2. Driven by incentives as investors expect the U.S. and Iran may reach a lasting peace agreement, U.S. stocks rose broadly on April 10. After Israeli Prime Minister Benjamin Netanyahu said he would hold peace talks with Lebanon, and President Trump revealed he had asked Israel to scale back its attack size, U.S. stocks rebounded. The fear index VIX fell to the lowest level since the outbreak of war. The Dow Industrial Index rose 275.88 points, up 0.6%, to close at 48,185.80. The S&P 500 rose 41.85 points, up 0.6%, to close at 6,824.66. The Nasdaq Composite rose 187.42 points, up 0.8%, to close at 22,822.42.

(Source: Gate)

3. In the Gate BTC/USDT liquidation map, based on the current 71,893.80 USDT. If it drops to around 71,398, the cumulative amount of long position liquidation would exceed $157 million. If it rallies to around $73,540, the cumulative amount of short position liquidation would exceed $104 million. The amount of liquidation on the short side is lower than on the long side. It is recommended to reasonably control leverage ratios to avoid triggering large-scale liquidations due to market fluctuations.

(Source: Coinglass)

4. Within the past 24 hours, BTC spot inflows were $2.35 billion, outflows were $2.25 billion, and net inflows were $100 million.

(Source: Coinglass)

5. Within the past 24 hours, contract net outflows led for $BTC, $ETH, $SOL, $ZEC, $HYPE , and others, indicating trading opportunities.

X KOL Selected Views

Phyrex Ni (@Phyrex_Ni): “This job is harder to write than I thought. It’s still centered on the geopolitical conflict between Iran and the U.S. Now the biggest risk has become Israel’s attacks on Lebanon. Even just now, Netanyahu specifically said Lebanon will not stop fighting, and that Israel is willing to hold peace talks. Meanwhile, the Iranian foreign minister said it would be a stupid move for the U.S. to allow Israel to continue attacking Lebanon, thereby jeopardizing a ceasefire in the region.”

“I guess Trump is also feeling stressed right now. He should truly want a ceasefire, especially since there were signs of oil prices coming down earlier. Now WTI is back up; today it rose to as high as $102. Because the Strait of Hormuz has been reopened/closed again by Iran, even though there is a ceasefire, it doesn’t help oil prices that much. And the main reason Netanyahu is unwilling to stop the fighting may still be that he doesn’t want Hezbollah to retain its armed capabilities and the border threat.”

“However, besides the fact that oil prices are holding steady, the market is very optimistic right now. U.S. stocks and $BTC ’s rally both look quite encouraging. The market is still believing the ceasefire can proceed smoothly. But if oil prices continue to rise, or even if they remain at the current level of under $100, it won’t do much for U.S. inflation. Keeping the Strait of Hormuz open is still very important.”

“Looking back at Bitcoin data, market sentiment is still pretty good, and the turnover rate is also declining. But trading volume hasn’t improved much, which suggests that the current capital and liquidity are still not ideal. The main reason for the price increase should be the reduction in selling; the market is willing to believe that the ceasefire between Iran and the U.S. can continue.”

What to Watch Today

1. China’s M2 money supply at the end of March (year-over-year); prior value 9.0%

2. Japan’s March domestic corporate goods price index (year-over-year); prior value 2.0%

3. China’s March CPI (year-over-year); prior value 1.3%

4. China’s March producer price index (year-over-year); prior value -0.9%

5. U.S. March core CPI not seasonally adjusted (year-over-year); prior value 2.5%

6. U.S. March CPI not seasonally adjusted (year-over-year); prior value 2.4%