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Investment Bank Jefferies: The CLARITY Act faces a critical test in the Senate, which may exacerbate volatility in the cryptocurrency market

According to CoinDesk, investment bank Jefferies stated in its latest report that the U.S. CLARITY Act still faces significant legislative hurdles in the Senate, and related legislative progress in the coming weeks may exacerbate volatility in the cryptocurrency market.Jefferies pointed out that although the bill previously passed the Senate Banking Committee with a bipartisan vote of 15 to 9, there are only about 20 legislative days left before the August congressional recess. The Senate still needs to complete the bill's consolidation, procedural voting, coordination with the House version, and submission for presidential signature, making the timeline very tight.Polymarket data shows that the probability of the bill passing by the end of 2026 has dropped from 70% in mid-May to 48%. Jefferies believes that if the bill passes smoothly, it will establish a clear regulatory framework for digital assets, prompting banks, asset management institutions, and exchanges to accelerate their layout in tokenized assets, custody, staking, lending, and other businesses, as well as facilitate more cryptocurrency ETFs and IPOs of cryptocurrency infrastructure companies. If the legislation is delayed, it may prolong regulatory uncertainty, causing traditional financial institutions to slow down their blockchain business advancement.The report predicts that the progress of the bill will continue to affect the market performance of cryptocurrency concept stocks such as Circle (CRCL), Coinbase (COIN), Bullish (BLSH), and some cryptocurrency assets.Jefferies also noted that in the long term, compared to regulatory changes, the greater challenge faced by stablecoin issuer Circle still comes from competition with banks, fintech, and payment companies.

Sovright launches Argos wallet recovery tool to help early Zcash users retrieve "frozen" funds

According to The Block, Sovright (the nonprofit successor organization related to Electric Coin Company for Zcash development) has officially released a wallet recovery tool named "Argos," aimed at helping early Zcash users recover funds that have been "stuck" due to the discontinuation of the old version of ZEC Wallet Lite in 2022.Sovright's Executive Board Chair Michelle Lai stated that Argos can recover affected assets as long as users still hold the old wallet mnemonic phrases, but since it only involves specific shielded addresses, the scale of the impact cannot be precisely estimated. However, it is estimated that the "amount is considerable," primarily concentrated among early long-term holders.She referred to the issue as a "technical pitfall" that the community has long failed to address, which, although not prominent, continues to erode user trust. Sovright currently consists of only three core members, all from the former Bootstrap system. The team is also testing a privacy-focused Zcash mining pool to reduce hash power centralization and enhance network decentralization.The governance structure of the organization has undergone significant adjustments, with Electric Coin Company employees collectively leaving to establish a new entity, Zcash Open Development Lab (ZODL), which has received support from institutions such as Paradigm and a16z, focusing on the development of Zcash-related products.Sovright emphasizes that there is no antagonistic relationship with ZODL and states that it will continue to focus on solving "long-standing issues" in the Zcash ecosystem, including key pain points such as wallet usability and infrastructure stability.
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