clarity

Friederike Ernst, co-founder of Gnosis, stated that the regulatory framework in the U.S. CLARITY Act may give large financial institutions greater control in the crypto market.She pointed out that some provisions of the bill assume that market activities need to be conducted through centralized intermediaries, which could undermine the role of blockchain users as network participants and stakeholders. Ernst believes that if there is too much reliance on institutional intermediaries, users may revert to being "customers renting financial technology services" rather than actual participants in the network. However, she also noted that the bill clarifies the regulatory boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to some extent and provides certain protections for peer-to-peer trading and self-custody.Currently, the CLARITY Act faces controversy as it progresses through Congress, with major disagreements centered around the issue of stablecoin yield distribution. Alex Thorn, head of research at Galaxy Digital, previously stated that if the bill fails to advance before April 2026, the probability of its passage will significantly decrease.

French Hill, chairman of the U.S. House Financial Services Committee, stated that the CLARITY Act is expected to address some regulatory issues not covered by the GENIUS Act.In an interview, Hill mentioned that the banking industry still has concerns about the proposed cryptocurrency regulatory framework, particularly regarding the regulatory treatment that future crypto companies may face. Hill pointed out that the House passed the CLARITY Act last summer with bipartisan support, including 78 Democratic votes in favor. The bill is part of Washington's push to establish a regulatory framework for digital assets, aiming to clarify how stablecoins and other digital assets operate in the U.S. financial markets. Additionally, policymakers are discussing whether crypto companies should be subject to the same level of regulation as banks. Hill stated that both parties have reached a consensus on a key principle: stablecoins should not pay interest to holders, which is also a central topic of discussion surrounding the GENIUS Act.

According to market news, U.S. senators are trying to push forward the stalled cryptocurrency market structure bill, the CLARITY Act, through a compromise on the issue of stablecoin yields.The banking industry had previously successfully lobbied to pause the bill due to concerns that stablecoin yields would siphon off bank deposits. Maryland Senator Angela Alsobrooks, who is involved in the negotiations, stated at a banking summit that both sides may need to "compromise a bit" to allow for innovation growth while preventing deposit outflows. Senator Mike Rounds pointed out that yields should be tied to account activity rather than the amount held.JPMorgan CEO Jamie Dimon hinted at the acceptability of a transaction-based yield model, which is also the position put forth by the cryptocurrency industry at the White House meeting. The recent rules proposed by the Office of the Comptroller of the Currency leave considerable room for customer incentive-based yield programs. Although the banking industry continues to emphasize the risks of yield loopholes to their business models, the bill could still advance to committee review if senators reach an agreement on the new compromise.

According to CoinDesk, the chairman of the Commodity Futures Trading Commission (CFTC), Mike Selig, has updated the agency's ongoing plans to provide much-anticipated regulatory clarity for decentralized finance (DeFi) developers, crypto derivatives, and prediction markets.Selig stated this week at the FIA Global Clearing Markets Conference in Boca Raton, Florida, that the U.S. is reclaiming its leadership in the digital asset space through closer coordination among regulators.He mentioned that he is advancing the "Project Crypto" initiative in collaboration with Securities and Exchange Commission (SEC) Chairman Paul Atkins, announcing the end of internal disputes between the CFTC and SEC. In his speech, Selig reiterated that the CFTC will issue guidance clarifying how so-called prediction markets (referred to as event contracts in regulation) can list and trade products under U.S. law, and will initiate a rulemaking process to solicit public input on regulatory approaches for this rapidly growing sector.He also stated that the CFTC plans to address one of the most controversial regulatory issues in the crypto industry: "There has long been uncertainty about whether software providers trigger CFTC registration requirements," Selig said, "We intend to tackle this issue head-on." The agency is also dealing with the classification of crypto perpetual derivatives, which dominate the global crypto market.

According to a report by crypto journalist Eleanor Terrett, at the American Bankers Association (ABA) summit in Washington, Senator Alsobrooks told community bankers that all parties may need to make compromises in the advancement of the Clarity Act, stating that "perfection cannot be an obstacle to achieving goals."She revealed that she is working with Senator Thom Tillis on a compromise plan aimed at preventing deposit outflows while leaving room for innovation.

Santiment indicates that due to the panic from the war and the uncertainty surrounding the Clarity Act, traders tend to short heavily, with the number of Bitcoin short positions significantly exceeding long positions.

Former Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo stated that the currently stalled "Digital Asset Market Clear Act" holds greater significance for the banking industry than for the cryptocurrency sector. He pointed out that bank legal advisors are informing boards that without regulatory certainty, they cannot invest billions of dollars in building digital payment infrastructure.The bill has been stalled since this year, with the main point of contention being whether to allow cryptocurrency companies to pay rewards to stablecoin holders—banks are concerned that this move will lead to capital outflows and are demanding a "level playing field," while cryptocurrency companies like Coinbase strongly oppose this.Giancarlo warned that if banks continue to resist, related cryptocurrency businesses will shift to Europe and Asia, leaving U.S. banks in a more passive position. He estimated the probability of the bill eventually passing to be about 60-40, but noted that both sides have missed the deadline set by the White House and there are still many issues to resolve.

The discussion surrounding the U.S. "CLARITY Act" has sparked a public debate between the banking industry and White House cryptocurrency policy officials. Christopher Williston VI, president of the Texas Independent Bankers Association, publicly stated on the X platform that compromising on this act would harm local lending and economic productivity, and he asserted that there would be no concessions on liquidity issues that support the local economy.In response, Patrick Witt, executive director of the White House Digital Asset Advisory Committee, stated that refusing to compromise on the "CLARITY Act" means there would be no restrictions on providing stablecoin rewards to intermediaries. According to the banking industry's claims about "deposit outflows," this situation could lead to catastrophic consequences, and this logic "is like watching an arsonist threaten to burn down their own house."

Kristin Smith, president of the Solana Policy Institute, recently shared her views on the legislative progress of the Clarity Act. She stated that although the bill faces resistance due to the withdrawal of support from Coinbase CEO Brian Armstrong and controversies in the banking sector, its complexity determines the long-term nature of the legislative process. Current negotiations exhibit two new characteristics: first, senior officials from the White House are directly involved, with presidential aides like David Sacks pushing for dispute resolution; second, traditional financial institutions are participating in negotiations for the first time.If the Senate Banking Committee can complete its review of the bill by March or April, there is hope to advance the legislation before the July recess; otherwise, the next window will not open until the fall. Smith, who previously led the Blockchain Association and spearheaded the passage of the Genius Act, believes that despite facing opposition from figures like Elizabeth Warren, the support from key Democrats such as Chuck Schumer and the ongoing pressure from President Trump are changing the odds of the bill's passage. On Wednesday, after Trump urged the banking sector to make concessions in a post on Truth Social, expectations in the market for the passage of cryptocurrency legislation within the year have noticeably increased.

According to CoinDesk, amidst the impact of the Middle East conflict on global stock markets and commodities, Bitcoin has risen against the trend, reaching a one-month high and helping to revitalize the overall cryptocurrency market. After falling nearly 50% from its historical high in October last year, Bitcoin had once been in the oversold territory.Following the outbreak of this round of key conflicts, traditional assets have significantly declined, while BTC's relatively strong performance has reinforced its temporary "safe-haven narrative." Market analysis suggests that this round of increase is mainly driven by three factors:The return of the "fiat currency depreciation" logic, as the intensifying Middle East conflict exacerbates global fiscal pressures, which may lead to expectations of more easing and deficit expansion, strengthening the "fiat currency depreciation" narrative, prompting some funds to be reallocated to digital assets.There may be expectations for a de-escalation in the Middle East situation. Although there has been no response from the U.S., this news has strengthened market expectations that "the conflict may not spiral out of control for a long time," supporting the recovery of risk asset sentiment.The CLARITY Act is close to being passed, aiming to clarify the legal status of stablecoins, which is beneficial for the cryptocurrency market.

The Chairman of the Commodity Futures Trading Commission (CFTC), Mike Selig, posted on the X platform again calling for the swift passage of the CLARITY Act. He stated that Trump's position on pushing for the passage of the CLARITY Act is correct, and establishing a forward-looking digital asset market structure is crucial.The CFTC is prepared to implement the act during Trump's term, believing that this legislation is a key part of ensuring the United States maintains its leadership in global innovation, "now is the time to take action." Selig also revealed that the CFTC will set clearer standards for self-certified predictive market types and plans to release a high-level Advanced Notice of Proposed Rulemaking (ANPRM) soon, laying the groundwork for more comprehensive predictive market rules.

In response to SBF's post on platform X praising the CLARITY Act as an important milestone in the history of cryptocurrency development and a significant achievement for Trump, U.S. Senator Cynthia Lummis stated that SBF seeks a pardon but fails to realize that the CLARITY Act would result in him being sentenced to far more than 25 years in prison.She emphasized that her legislative proposal is "entirely different" from the bill SBF attempted to purchase from Congress in 2022 and clearly stated, "We neither need nor want SBF's support."

According to Cointelegraph, U.S. Senator Bernie Moreno stated that the cryptocurrency market structure bill, the CLARITY Act, is expected to pass in Congress before April. Moreno mentioned in an interview with CNBC that there is now a clear path for the bill's advancement.Coinbase CEO Brian Armstrong, in the same interview, stated that there were previously disagreements regarding the interest-bearing provisions for stablecoins and regulatory jurisdiction, but all parties are currently seeking a "win-win" solution. The report noted that the stablecoin yield provisions are one of the main points of contention in the bill's progress.Moreno also expressed that he does not believe the results of the midterm elections will affect the bill's passage. Previously, officials from the White House also expressed positive expectations for the bill's advancement earlier this year.

According to The Block, investment bank TD Cowen stated that filling the Democratic vacancies at the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission could help advance negotiations on the U.S. crypto market structure bill.The investment bank pointed out that the biggest obstacle to the passage of this bill is not its core framework (i.e., whether digital assets should be regulated as securities by the SEC or as commodities by the CFTC), but rather a political dispute surrounding conflict of interest rules.Democrats are pushing for a ban to prevent senior government officials and their families from engaging in specific financial transactions involving digital assets. TD Cowen noted that, given Trump's involvement in the crypto project World Liberty Financial, this proposal would affect Trump and his family. Bloomberg estimated last month that Trump has made about $1.4 billion from his crypto project. The Trump family also holds a 20% stake in the mining company American Bitcoin.According to TD Cowen, it is unlikely that Democrats will abandon this demand, as the party has used Trump's crypto asset holdings as campaign material ahead of the midterm elections. Last month, no Democratic senators voted in favor of a bill in the Senate Agriculture Committee, citing concerns over Trump's crypto project. It remains unclear whether Democrats will support the Senate Banking Committee's bill.TD Cowen stated that Republicans oppose the proposal because they believe Trump would veto any legislation requiring his family to divest their crypto asset holdings. The report added that this disagreement has already caused a political stalemate, even as industry groups continue to negotiate the crypto regulatory framework.One possible path forward is for both parties to reach a compromise. In this scenario, Trump would agree to fill the Democratic vacancies at the SEC and CFTC. In return, Democrats would accept conflict of interest provisions that would only take effect after the next presidential inauguration.

CoinDesk posted on the X platform that Ripple CEO Brad Garlinghouse believes the probability of the CLARITY Act being passed by the end of April is 80%. Additionally, the probability of the "CLARITY Act being signed in 2026" on Polymarket is currently reported at 61%.

According to DL News, U.S. Treasury Secretary Scott Bessent stated in an interview with CNBC that advancing long-stalled cryptocurrency legislation such as the "Clarity Act" will help stabilize the currently weak market and restore investor confidence.Bessent pointed out that Bitcoin has a history of volatility, but some of the current fluctuations are "self-inflicted." He mentioned that a group of Democrats wishes to collaborate with Republicans to advance market structure legislation, but some cryptocurrency companies have been obstructing this.He stated that providing clarity for the "Clarity Act" during a time of historic market volatility and sell-offs would bring great comfort to the market, and it is crucial to complete this work as soon as possible. The cryptocurrency industry and the banking sector must reach an agreement on the market structure legislation before March 1.Bessent indicated that there is a wealth of innovation in the cryptocurrency and its derivative fields like blockchain and DeFi, and the legislation should be pushed for submission to the President for signing in the spring.

U.S. Treasury Secretary Scott Basset recently publicly criticized Coinbase on Fox News as a "stubborn participant" for opposing the CLARITY Act. Basset emphasized the necessity of passing the CLARITY Act multiple times during last week's Senate Banking Committee hearing, using strong language against the opponents.It is reported that the CLARITY Act aims to clarify the regulatory division of cryptocurrency assets, with the SEC and CFTC overseeing different areas. However, Coinbase is concerned that it may restrict business models such as stablecoin rewards, leading to divisions within the industry.

Crypto reporter Eleanor Terrett revealed that two insiders disclosed that Senate Democrats plan to hold another closed-door meeting tomorrow to discuss the "Cryptocurrency Market Structure Act" (the CLARITY Act). This will be the first meeting held by Democratic members since the Senate Banking Committee postponed the bill's consideration last month.

The cryptocurrency asset management company Bitwise stated in its latest blog that as the U.S. CLARITY Act is stalled in Congress, the crypto industry is facing a critical turning point, with short-term trends potentially shifting from a speculative bull market to a more challenging "results-driven" phase.Bitwise Chief Investment Officer Matt Hougan pointed out that the CLARITY Act is crucial for "cementing" the currently relatively friendly crypto regulatory environment into a long-term legal framework. Without clear federal legislation, the crypto industry will remain exposed to the risks of future government policy swings. Recently, market expectations for the passage of the bill have significantly cooled, with related probabilities on Polymarket dropping from about 80% at the beginning of the year to around 50%. Coinbase CEO Brian Armstrong has also publicly stated that he has withdrawn support for the bill due to concerns that the current draft may harm consumer interests and stifle competition.Hougan believes that if legislation continues to stagnate, the crypto industry may need to emulate disruptive companies like Uber and Airbnb, which grew in regulatory gray areas, to make stablecoins and tokenized assets an "indispensable" infrastructure in the U.S. economy within the next three years. If successful, regulation will eventually be forced to follow; if scaling fails, future political changes could severely impact the industry.In terms of market impact, Bitwise sees two potential paths: if the CLARITY Act passes in a viable form, the market may quickly price in expectations for the definitive expansion of blockchain finance, driving prices significantly higher; conversely, if the legislation fails, the market may enter a wait-and-see period, with valuations suppressed by regulatory uncertainty, and returns becoming more reliant on real-world applications.Wall Street firm Benchmark also noted that legislative setbacks will delay rather than end the maturation process of the crypto industry, with the U.S. market potentially remaining below its potential level for some time. Capital is likely to favor Bitcoin-related exposure, robust balance sheets, and cash-flow-generating infrastructure, while remaining cautious in regulatory-sensitive areas such as exchanges, DeFi, and altcoins.

Delphi Digital stated in its latest report on Lighter (LIT) that the fundamentals of Lighter are much better than what the price trends reflect. The real issues are not poor product quality or insufficient team strength, but rather the lack of transparency in its token economic model, financial situation, and market maker collaborations.If Lighter can fully disclose the flow of profits, clarify the decision-making mechanisms for buybacks and development investments, and clearly present the incentive structure, then LIT could very well become a hassle-free asset and investment target like HYPE.