Legislative gridlock over Clarity Act amendments
The Crypto Clarity Act, passed by the House a year ago and cleared Senate Banking in May, has stalled on the Senate floor without a scheduled vote. Bipartisan negotiators are now revising provisions of the bill, with sources indicating that a Senate duo is attempting to toughen restrictions on certain activities that the Trump administration had previously conceded on—a move they believe will secure additional votes.
Support for the bill remains divided along party lines. Republican Senator Cynthia Lummis has publicly criticized Democratic lawmakers for delays, while a Democratic senator has backed the legislation but only with proposed law enforcement changes included. The banking lobby has been cited as a factor in the stalling, though industry figures including crypto conglomerate DCG have urged passage, warning that delays could cause the U.S. to lose competitive ground to international markets like Singapore and the UAE.
SEC prepares regulatory alternative; CFTC sees market expansion
SEC Chair Atkins has signaled that the agency is prepared to establish crypto rules through the regulatory process if the Clarity Act fails to advance legislatively. This contingency approach would allow the SEC to define regulatory frameworks absent Congressional action, though it would likely differ from the legislative approach.
Meanwhile, regulatory developments are advancing in parallel. Binance.US announced plans to apply for a CFTC license in August to operate as a designated contract market for prediction markets, marking an attempt to formalize offerings under existing commodity derivatives authority. In international jurisdiction, Binance has launched regulated commodity options for gold and silver through its Abu Dhabi Global Market–regulated exchange, indicating diversified approaches to compliance across jurisdictions.
Executive branch oversight and prediction markets scrutiny
A Trump administration teleprompter operator accused of profiting from Kalshi prediction market bets tied to presidential speeches has left government employment, according to reporting by the Associated Press. The incident underscores ongoing questions about the appropriate regulatory perimeter for prediction markets and potential conflicts of interest in their use.
This article was written by our AI pipeline from aggregated headlines and live market data. Not financial advice.
