US lawmakers face critical week on stablecoin rewards as crypto regulation advances

Washington enters a pivotal week as lawmakers return to negotiate crypto legislation, with stablecoin rewards emerging as the key sticking point. [The Block](https://www.theblock.co/post/397092/crypto-bill-negotiations-critical-week-lawmakers-return-resolve-stablecoin-rewards) reports negotiations are intensifying around how to treat stablecoin rewards in pending bills. Adding momentum to regulatory clarity efforts, Coinbase CEO Brian Armstrong publicly backed Treasury Secretary Scott Bessent's push for the Clarity Act, marking a shift from the firm's previous neutral stance on earlier versions. [The Block](https://www.theblock.co/post/396992/coinbase-ceo-brian-armstrong-clarity-act) noted this endorsement comes as the industry seeks clearer digital asset frameworks. Internationally, Hong Kong made significant progress by granting its first stablecoin issuer licenses to HSBC and Anchorpoint Financial (a joint venture between Standard Chartered, Animoca Brands, and Hong Kong Telecommunications). [The Block](https://www.theblock.co/post/396990/hsbc-and-anchorpoint-financial-gain-first-hong-kong-stablecoin-issuer-licenses) This development positions Hong Kong as a competitive hub for digital asset infrastructure. The CFTC also made headlines by pushing back against state gambling regulations, arguing prediction markets should be regulated as financial products rather than gambling activities, according to [Daily Intel by Alea Research](https://t.me/alearesearch/1419).

World Liberty Financial faces scrutiny over potential conflicts of interest after executing a $75M stablecoin borrow against 5 billion WLFI tokens through Dolomite, a lending protocol co-founded by its own advisor. [Launchy](https://launchy.beehiiv.com/p/world-liberty-calls-liquidation-risk-fud) reports the company dismissed liquidation fears as "FUD," but the arrangement raises questions about insider access and circular token economics. [The Block](https://www.theblock.co/post/397066/justin-sun-frozen-wlfi-11-million-hit-world-liberty-brushes-off-liquidation-fears) noted that Tron founder Justin Sun's WLFI position is down over $80 million, adding to market concerns. On the infrastructure side, major developments emerged across multiple protocols. Polymarket introduced a new Polymarket USD collateral token backed 1:1 by USDC, migrating from USDC.e, according to [Shoal Research Hub](https://t.me/shoalresearch/13805). MetaMask launched Advanced Permissions built on ERC-7715, eliminating repeated approvals by granting dApps scoped, time-bound access without custody tradeoffs. [Shoal Research Hub](https://t.me/shoalresearch/13802) This represents a significant UX improvement for DeFi interactions. Meanwhile, Securitize expanded its tokenized assets platform to the TRON network, and Binance launched IPO Prime with SpaceX pre-IPO tokenized allocations as the first offering. [The Block](https://www.theblock.co/post/396976/bitget-debuts-ipo-prime)

link">Bitcoin trades at a crucial macro crossroads despite posting solid gains of +0.95% over 24 hours and +8.59% over the past week. [Benjamin Cowen](https://www.youtube.com/watch?v=biDgIDHv2cw) highlighted that inflation surged to 3.3%, driven primarily by oil price spikes from geopolitical tensions. However, markets found relief as a fragile Iran ceasefire was announced, with [Bankless](https://bankless.cc/rollup) noting the geopolitical de-escalation supported risk assets despite underlying macro concerns. Government Bitcoin holdings remain significant, with the U.S. holding approximately 328,000 bitcoins worth over $22 billion, according to [The Block](https://www.theblock.co/post/397104/us-government-bitcoin-possibly-linked-steroid-distribution-conspiracy). Meanwhile, Bhutan continued reducing its Bitcoin position, moving another $18 million to new wallets and cutting tracked holdings from a peak of 13,000 BTC to 3,774 BTC. [The Block](https://www.theblock.co/post/397032/bhutan-moves-another-18-million-in-bitcoin-as-tracked-holdings-continue-to-shrink-arkham) Iran's adoption of cryptocurrency for trade payments, including tolls for ships passing through the Strait of Hormuz, demonstrates Bitcoin's growing role in sanctions-resistant commerce, as reported by [Daily Intel by Alea Research](https://t.me/alearesearch/1419).

Artificial intelligence developments dominated crypto infrastructure discussions, with [Bankless](https://www.youtube.com/watch?v=9gZLB41RETg) examining Anthropic's secretive "Mythos" model and its potential to expose vulnerabilities across crypto systems, from smart contracts to core blockchain infrastructure. The debate around quantum threats versus AI risks intensified, with Michael Saylor taking a measured "we can upgrade, don't panic" stance on quantum computing threats. Meanwhile, practical AI implementations accelerated across the ecosystem. [The Daily Degen](https://thedailydegen.substack.com/p/the-daily-degen-april-10th-2026) reported that INFINIT launched three new AI agents in three consecutive days, including LIFI Swap + link">Aave on Mantle, a Fluid Agent across four chains, and Venus Flux Agent on BNB Chain. These agents enable complex DeFi strategies through natural language prompts. Anthropic also introduced the Advisor tool on Claude's platform, pairing Opus as an advisor with Sonnet or Haiku as executors to deliver near Opus-level intelligence at reduced costs, according to [Shoal Research Hub](https://t.me/shoalresearch/13797). The convergence of AI and crypto continues accelerating, with practical applications moving beyond speculation into functional trading and DeFi automation.

The crypto community remains divided on the urgency of quantum computing threats, with StarkWare researchers proposing "quantum-safe" link">Bitcoin transactions without requiring a soft fork. [The Block](https://www.theblock.co/post/396987/starkware-quantum-safe-bitcoin) noted the solution may face limited adoption due to higher costs and complex user experience, describing it as a "last-resort measure." This development comes as the industry grapples with timeline disagreements around "Q-Day" - when quantum computers could theoretically break current cryptographic standards. Security concerns extended beyond theoretical quantum threats, with OpenAI discovering a security issue involving the Axios library, prompting mandatory macOS app updates to prevent fake app distribution. [Shoal Research Hub](https://t.me/shoalresearch/13806) The incident highlights the broader cybersecurity challenges facing crypto infrastructure as it integrates with traditional software systems.