Delaware is moving to establish a state regulatory framework for stablecoin issuers.

BIG: The Federal Reserve is scheduled to inject $8.07B in liquidity into the financial system today.

BlockBeats reported on March 25 that on-chain investigator ZachXBT said Circle has frozen USDC balances held across 16 hot wallets used by several companies. The action is linked to an ongoing U.S. civil lawsuit, though specific details have not been made public. ZachXBT said one affected company confirmed the freeze directly. According to ZachXBT, the wallets appear to belong to operators spanning exchanges, casinos, forex and other businesses, with no obvious ties between them. He questioned whether Circle conducted sufficient due diligence before acting on the freeze requests. The wallets are described as active operational hot wallets used to process high volumes of customer transactions. The freeze has reportedly disrupted day-to-day business operations.

Odaily Planet Daily reports: House Republicans are rejecting a Senate proposal to strike a legislative bargain that would link housing and cryptocurrency bills. Under the plan, the Senate would fold the House's bipartisan Community Bank Deregulation Bill into pending crypto market-structure legislation, in exchange for the House taking up the Senate-passed housing affordability bill. Rep. Bill Huizenga, vice chairman of the House Financial Services Committee, said he is skeptical of the approach. Republican members of the Senate Banking Committee discussed the idea in an off-the-record meeting last week, with Sen. Katie Britt working to sell it to other GOP senators. The House-passed housing measure approved in February included community bank deregulation provisions, but the Senate's latest housing bill stripped them out. House Republicans said the Senate housing package still leaves multiple issues unresolved and that attaching the bank deregulation bill to crypto legislation would not be enough to secure House acceptance. Rep. Andy Barr, a senior member of the House Financial Services Committee, supports adding banking regulatory provisions to the crypto bill, but said the Senate must also adopt key housing proposals included in the House version.

Jump Trading has pushed back against a lawsuit brought by Todd Snyder, the bankruptcy trustee for Terraform Labs, calling it an effort to offload Terraform's legal exposure. Snyder filed the complaint in December, naming Jump Trading, several affiliates and two executives. The suit alleges market manipulation, investor fraud and self-dealing, and seeks $4 billion in damages. In a Monday filing, Jump Trading said the case is a "transparent attempt" to sidestep the $4.4 billion penalty the U.S. Securities and Exchange Commission imposed on Terraform Labs in 2024. Jump argued Snyder "fabricated a series of allegations" to shift Terraform's liabilities to the SEC and Terraform's creditors onto the defendants. Jump also said the complaint lacks key specifics, does not spell out each defendant's alleged conduct, fails to identify where the purported violations took place, and is barred by the statute of limitations, warranting dismissal. Court records previously showed that when UST broke from its dollar peg in 2021, Jump Trading bought large amounts of UST to support the price and help maintain the peg, actions that executives at both firms allegedly kept confidential. Terraform founder Do Kwon has been sentenced to 15 years in prison on two fraud counts.

Delaware lawmakers have introduced the Delaware Payment Stablecoin Act (Senate Bill 19), a bipartisan proposal designed to clarify rules for payment stablecoins and encourage broader cryptocurrency adoption in the state. The measure, drafted under Delaware banking law, closely tracks the federal GENIUS Act to stay aligned with wider U.S. policy. It would require stablecoin issuers to obtain an operating license in Delaware, maintain 1:1 reserve backing for all payment stablecoins, and undergo monthly audits to confirm compliance. The bill also calls for Know Your Customer (KYC) procedures as part of broader anti-money laundering (AML) requirements. If enacted, Delaware would become the second U.S. state after Florida to advance state-level payment stablecoin legislation. Florida's bill is still awaiting the governor's signature. Delaware's proposal must first pass the Senate Banking, Business, Insurance & Technology Committee, then secure approval from the full Senate and House. Supporters argue the bill could reduce regulatory uncertainty, strengthen the standing of stablecoin payment providers, and make the state more attractive to crypto-focused businesses and institutional capital. Delaware's long-running position as a corporate-friendly incorporation hub is seen as a strategic advantage in that effort. Federal developments could complicate the outlook. A draft of the Clarity Act includes a provision that would set zero interest on dormant stablecoins, a change that could pressure yield-based models across the stablecoin ecosystem. Stocks tied to the sector, including USDC issuer Circle and crypto exchange Coinbase, have moved lower amid the proposal. The contrast between state-level encouragement in places like Delaware and Florida and potentially restrictive federal rules is likely to shape market and banking-industry responses as Delaware's bill advances.

ChainCatcher cited CNBC as reporting that CME's FedWatch tool now prices in a 9.3% chance the Federal Reserve raises rates by 25 basis points at its April meeting, versus a 90.7% probability of no change. Looking ahead to June, markets assign a 17.1% chance of a cumulative 25-basis-point hike by then, while the probability of rates staying unchanged stands at 80.2%.

Brussels is taking its AI competition agenda straight to Silicon Valley. Reuters reports EU Competition Commissioner Teresa Ribera is in San Francisco for first-time meetings today with Google CEO Sundar Pichai, Meta CEO Mark Zuckerberg and OpenAI CEO Sam Altman. Amazon CEO Andy Jassy is scheduled to meet her tomorrow. Ribera said earlier this month she is reviewing the "entire AI stack", spanning chatbots, training data and cloud infrastructure. The trip follows existing probes into Google and Meta's business practices, and comes as EU regulators assess whether AWS and Microsoft Azure should be designated as gatekeepers under the Digital Markets Act. EU officials are focused on whether dominant firms are steering users toward their own AI services on their own platforms, potentially squeezing out rivals. With cloud, data, models and distribution increasingly concentrated, regulators are treating vertical integration as a possible route to market capture. The push arrives as the EU also reopens parts of its AI Act via an omnibus proposal that critics argue could water down safeguards, adding to an already complex regulatory landscape. Four CEOs, one regulator, one week: Europe's AI antitrust phase is underway.

CoinDesk Podcast Network highlights three developments: updated language in the proposed CLARITY Act would prohibit paying yield simply for holding stablecoins; BlackRock CEO Larry Fink is expressing optimism about tokenization; and InvescoUS is taking over management of a $900 million tokenized U.S. Treasury fund. @JennSanasie breaks down the key takeaways on CoinDesk Daily. CoinDesk Media Network x @Nexo.