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Clarity Act setback could fast-track crypto regulation, Bernstein says
22 days ago•Source: The Block
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13.745 min•22 days ago
Senate clock ticks as CLARITY Act slips off schedule ahead of recess
The CLARITY Act vanishes from Monday’s Senate agenda, setting a 72‑hour countdown to secure floor time before the Aug. 10 recess; movement hinges on a Wednesday cloture filing, a potential Friday vote, or faster paths via a bipartisan petition or unanimous consent, with the exact vehicle and votes still uncertain.
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Senate Moves CLARITY Act Toward Floor Vote on Crypto Regulation
The Digital Asset Market Clarity Act (CLARITY Act) was added to the Senate calendar, signaling a near-floor vote after committee passage. The bill would define a regulatory framework for digital assets and clarify duties for the SEC and CFTC, with backing from Senate Banking Chair Tim Scott and urging swift action from Sen. Cynthia Lummis as Congress weighs crypto-market reforms ahead of the August recess.
Kennedy Backs CLARITY Act, Paving Senate Path for Crypto Rules
Sen. John Kennedy plans to vote yes on the Digital Asset Market CLARITY Act in the Senate Banking Committee markup after striking a deal with Chairman Tim Scott to add fiduciary-duty provisions and attach Sen. Elizabeth Warren’s housing bill; the move solidifies Republican support for the bill even as Democrats file more than 100 amendments, including anti-DeFi proposals, with the bill expected to advance to the Senate floor before Memorial Day recess.
SEC Clarifies When Crypto Trade Interfaces Can Operate Without Broker-Dealer Registration
SEC staff provide an interim view that a Covered User Interface Provider (e.g., a self-custodial wallet with a crypto asset securities UI) may operate without registering as a broker-dealer under Section 15(a) if it does not solicit investors, offers objective execution routes, discloses affiliations and material risks, uses a fixed fee, and maintains policies to evaluate venues and parameters; the guidance outlines disclosure requirements and is open for public comment, expiring five years from April 13, 2026.
CFTC Seeks Public Feedback on Potential Rules for Prediction Markets
The CFTC issued an Advanced Notice of Proposed Rulemaking to solicit public input on whether to amend or create new rules for event contracts in prediction markets, asking about core principles, prohibited contracts, and cost-benefit considerations; comments are due 45 days after Federal Register publication via the Public Comments Portal.
Prediction Markets Enter a High-Stakes Regulatory War
The U.S. regulatory fight over prediction markets such as Kalshi and Polymarket is intensifying, with advocates arguing the platforms offer fair, investor-driven markets and regulators pressing for state-agnostic gambling laws; Kalshi operates nationwide while Polymarket, banned in 2022, has returned in a limited form. Dozens of lawsuits target Kalshi, the CFTC asserts exclusive authority, and lawmakers on both sides of the aisle are weighing actions—signaling a long, contentious battle rather than a quick resolution.
Democrats Urge CFTC to Stay Out of Prediction Market Litigation
A group of 23 Democratic senators led by Adam Schiff urged the CFTC to refrain from weighing in on ongoing state and federal lawsuits over the legality of Kalshi and Polymarket, arguing the platforms lack protections and touch on prohibited events. The letter pushes the agency to bar certain contracts, while the CFTC maintains exclusive jurisdiction over derivatives, highlighting a broader regulatory clash as lawsuits unfold.
Regulatory Roadblocks Hinder Economic Theory Testing and Political Betting Platform
The U.S. Commodity Futures Trading Commission (CFTC) has rejected a proposal by prediction market Kalshi to introduce a derivative contract tied to congressional elections, citing concerns about becoming an "election cop" and the potential for gambling on elections. The CFTC's decision reflects its consistent stance against election betting, as seen in previous rejections of similar applications. While there are arguments against prediction markets in elections, proponents argue that they provide valuable data for political scientists and could tap into the concept of crowdsourcing truth. However, the CFTC's decision raises concerns that it is stifling the prediction markets industry before it can fully develop.
FTC Antitrust Suit Against Amazon Heads to Court as Negotiations Reach Deadlock
The Federal Trade Commission (FTC) is preparing to file a lawsuit against Amazon later this month after the e-commerce giant's officials failed to offer any concessions in settlement talks over antitrust claims. The FTC has been examining Amazon's practices, including allegations of favoring its own products over competitors' and how it treats outside sellers on its platform.
SEC's Crackdown on Binance and Coinbase Sends Shockwaves Through Crypto Industry.
The SEC has requested permission from the District of Columbia Court to freeze the assets of BAM Trading and BAM Management, the companies operating as Binance.US, and serve Binance CEO Changpeng Zhao via unspecified non-traditional methods. The SEC is seeking to "repatriate and freeze" the assets of BAM Management and BAM Trading and compel the firms to provide full accounting information and refrain from concealing or destroying any relevant documents. Earlier this month, the SEC sued Binance for allegedly violating securities laws and filed a motion to freeze the assets of BAM Trading and BAM Management.
Crypto Regulation Efforts Intensify in U.S. Congress
US Senator Cynthia Lummis is working on a regulatory framework that would enable individuals and companies to own and trade digital assets within the United States. Working alongside Senator Kirsten Gillibrand, Lummis has been working on a revamped bipartisan effort to introduce comprehensive regulations for cryptocurrencies. The forthcoming bill primarily seeks to define cryptocurrencies while potentially removing the “security” tag associated with them. Additionally, the proposed legislation will supposedly impose a universal ban on algorithmic stablecoins although further deliberations are necessary to determine the entities authorized to issue stablecoins and the requirements associated for maintaining their USD reserves.