Hi all, Liam here. 

It feels like every week, a crypto exec or pundit is proclaiming that the Clarity Act is just about there. 

This time, though, is different, Lindsay Fraser, Blockchain Association’s head of policy, told me. 

“All of these things are moving in the right direction,” she said. “We’re in the home stretch.”

It’s been a long time coming, too. 

Since US President Donald Trump took office in January 2025, we’ve seen industry-friendly appointees placed in key regulatory roles, executive orders that made crypto a top priority, and the first-ever federal policy reining in stablecoins all sweep across the country. 

Indeed, the industry has gotten just about everything it wished for — except the Clarity Act. 

If the Genius Act, which passed last July, set rules for dollar-denominated cryptocurrencies, the Clarity Act addresses the thousands of other cryptocurrencies on the market. Its most important component is delineating who will supervise the industry: The SEC or the CFTC. 

It also covers a range of other key components, including a safe harbour for American developers to build crypto networks, the protection of self-hosted wallet use for lawful purposes, and the so-called stablecoin rewards loophole. 

For the past few months, however, the bill has stalled. 

A key sticking point has been a turf war between banks and crypto companies over stablecoin rewards: namely, whether crypto companies should be able to pass along high rates — markedly higher than most banks — to their users. 

Lawmakers are also concerned about policing blockchains for national security purposes, such as sanctioned entities, and worry that the CFTC is understaffed to properly regulate the $2.6 trillion industry.

What’s more, time is running out. 

“We are kind of running up against the clock here,” Fraser said. 

The bill is in the Senate Banking Committee’s hands, awaiting markup, but it still needs to go to the floor and be reconciled with the Agriculture Committee’s version, then back over to the House and then finally to the president’s desk to be signed into law. 

Meanwhile, there are plenty of other key issues to discuss in Washington, including high-priority budget negotiations and confirming the new chair of the Federal Reserve. 

Then there’s the August recess, and, of course, the run-up to crucial midterm elections in November — a race in which Democrats look set to nab several key wins.

Senator Cynthia Lummis warned that if a committee markup doesn’t happen before May 25, the bill will likely be shelved until 2027. 

“We'll see how the election goes, but there's a good chance that we won't be in the same posture that we're in now,” the head of policy said.

“There's been so much hard work done on both sides of the aisle on this draft. It would just be a shame to run out of time.”

ICYMI

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• DOJ charges US soldier with using classified information to win $400,000 in Polymarket Maduro capture bet
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• Tether helps US feds by freezing $344m in USDT tied to crime
  Crypto giant Tether on Thursday announced that it had helped the US government by freezing $344 million in USDT — one of the biggest single freezes the crypto giant has undertaken. Mathew Di Salvo reports.

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Story of the week

Polymarket bettors bag big win betting on the weather. Now the French meteorological agency is investigating 'tampering'

A bout of terrific Spring weather in Paris or market manipulation?

France’s national weather agency, Météo-France, is investigating precisely this question after filing a complaint with local authorities over allegations its weather data in Paris had been manipulated.

On April 6 and April 15, recording devices at Charles de Gaulle Airport recorded a dramatic spike in temperature in the evening.

Given how striking the rise in temperature — and its quick descent — Météo-France suspects foul play.

Post of the week

If you don’t get the humour in this post, catch our coverage on the brewing feud between Tron founder Justin Sun and the World Libert Finance leadership. Don’t forget the popcorn.

DL News is an independent news organisation that provides original, in-depth reporting on the largely misunderstood world of cryptocurrency and decentralised finance. From original stories to investigations, our journalism is accurate, honest and responsible.

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