Cryptolicy

During Congress's extensive battle against the clock to get the Clarity Act across the finish line, economist Danielle Zanzalari highlighted a key question that remains unresolved: should speculative assets, stablecoins, and payment infrastructure systems fall under the same framework? For example, firms like Ripple, which builds cross-border payment and settlement infrastructure on blockchain, operate differently from speculative crypto assets, yet both fall under the same broad regulatory debate. Zanzalari stated that this is similar to regulating FedEx and the New York Stock Exchange under the exact same framework simply because both move something of value.   Read more here: https://lnkd.in/ecmtQyZt

The Senate’s digital asset overhaul is gaining momentum, with the CLARITY Act moving forward after lawmakers finalized a key stablecoin yield compromise - marking a significant breakthrough after months of stalled negotiations. But the legislation now faces a critical test: ethics provisions. Lawmakers remain divided over how to address potential conflicts of interest tied to crypto holdings and political figures, an issue that could determine whether the bill advances or stalls. With a Senate Banking Committee markup set for May 14 and leadership targeting a broader package by July 4, the next 30 days will be pivotal for U.S. crypto regulation. Read more: https://lnkd.in/eTr8CtMi

American markets work best when the rules are clear. However, economist and professor Nam Pham writes that the U.S. crypto regulatory landscape remains rife with ambiguity. Pham states that the CLARITY Act would resolve this regulatory uncertainty by: - Increasing liquidity - Driving competition - Encouraging innovation   With the CLARITY Act yet to pass, Pham emphasizes that the consequences of continued inaction are significant. Read more. https://lnkd.in/eJPbwR7M

Steve Forbes is out with a new op-ed calling for Congress to pass the CLARITY Act, arguing the U.S. is at a defining moment for digital asset policy. He notes that while recent SEC guidance is a step forward, it does not replace the need for durable law. Without clear market structure legislation, regulatory uncertainty continues to shape outcomes - often through enforcement rather than rulemaking. Forbes points to the Ripple/XRP case as a key example, where years of litigation were required to establish basic distinctions that legislation could have provided from the start. His conclusion: without action, innovation and capital will continue to move offshore, and market development will be driven by survival under uncertainty rather than clear rules. https://lnkd.in/eH5iPqVE

Nearly 1 in 6 Americans owns digital assets, reflecting continued growth in adoption across everyday retail consumers, institutions, and financial infrastructure. In a recent op-ed, Treasury Secretary Scott Bessent called on Congress to pass the CLARITY Act, stating that clear market structure rules are needed to maintain U.S. leadership in global financial markets. He pointed to the expansion of the digital asset market and increasing institutional involvement as indicators of its growing role in the financial system. Bessent also noted that timely legislative action would make sure that innovation remains in the United States rather than moving to other jurisdictions. https://lnkd.in/eBq_htxq

White House economists say banning crypto firms from offering yield on stablecoins would have minimal impact on community banks, according to a new report from the Council of Economic Advisers. The analysis estimates such a ban would increase traditional lending by just 0.02% which is about $2.1 billion. This finding is significant as stablecoin yield remains a key point of contention in the CLARITY Act. https://lnkd.in/eYXZ_79m

U.S. crypto advocates are continuing to push for the CLARITY Act, amid concerns the bill could stall if not passed before summer. The legislation would establish a clear and comprehensive market structure framework, but divisions - recently around stablecoin yields - have slowed progress. Some warn the timeline is tightening, with midterm elections expected to dominate the agenda in the coming months, leaving limited room for crypto legislation. https://lnkd.in/ew8fRC_C

The Trump administration has proposed allowing employees to invest in cryptocurrencies, private equity, and other alternative assets through 401(k) plans. The move would expand access beyond traditional investments, with industry groups noting it could improve diversification and broaden investment options for retirement savers. https://lnkd.in/ecCPS8ch

Franklin Templeton is expanding its crypto investing capabilities through the acquisition of a CoinFund spinoff, signaling continued institutional movement into digital assets. The firm noted a shift in sentiment, with institutions now facing greater reputational risk from staying on the sidelines than from engaging in the digital asset space. Read it here. https://lnkd.in/eMekerSB?

A policy debate is unfolding on Capitol Hill over stablecoin yield, with banks opposing interest-bearing models and digital asset firms supporting them. Sam Lyman, head of research at the Bitcoin Policy Institute argues that the outcome has broader geopolitical implications: limiting stablecoin yield would slow adoption and weaken a tool that reinforces U.S. dollar dominance, while China continues advancing its digital yuan. The central question for policymakers is whether restricting stablecoin functionality could inadvertently benefit competing digital currency efforts abroad. https://lnkd.in/eyYkUDn7