If you were hoping the US would finally get proper crypto rules this year, this week was a letdown. The CLARITY Act, the bill meant to spell out who regulates what in crypto, is as good as dead until after the midterms. On September 15, the Senate voted 49 to 50 on whether to even start debating it. It needed 60.
Here’s the short version of what went wrong. Most people agreed on the actual crypto rules. The fight was over ethics, specifically how much the bill should restrict Trump and his family from profiting off their crypto ventures. Democrats said Republicans didn’t go far enough, so not a single one voted yes. That includes senators like Gillibrand, Warner, Gallego and Cortez Masto, who’d spent months at the negotiating table. On the other side, Collins, Hawley and Moran voted no as well. Tillis did too, but that was a procedural move that lets him bring the bill back up later.
Senator Lummis, the bill’s biggest backer, didn’t hold back. In her post-vote statement, she called Democrats “anti-American” and said Republicans had already worked more than 120 of their requests into the final draft.
Could it come back this year? Very unlikely. House Republican leaders have already cancelled the voting weeks of September 21 and 28, and everyone is heading home to campaign. So for now, crypto rules are in the hands of the SEC and CFTC, and both have said they’ll keep writing their own rules regardless.
Then on Wednesday, the Fed raised interest rates by 0.25%, its first hike since 2023. Nobody was surprised, markets had seen it coming. The bigger talking point was Fed Chair Kevin Warsh’s press conference, which wrapped up in about 30 minutes. That’s the shortest one since Fed chairs started holding regular press conferences in 2011. Bitcoin was sitting around $75,800 going into the decision and was already down almost 3% in the week. A failed crypto bill and a rate hike in the same week, not great.
A few other things you might have missed:
- Singapore’s S$4.9 million crypto robbery ended with only S$1.69 million recovered.
- South Korean police booked 26 Polymarket users for illegal gambling and sent 18 of them to prosecutors.
- The ECB started a new digital euro pilot for online and mobile merchants, and confirmed the digital euro won’t be programmable, meaning nobody can put rules on how or where you spend it.
Over in AI, Vitalik Buterin pushed back on the doom talk. His argument is that advanced AI could end up helping the people defending systems more than the people attacking them. You don’t hear that often. Meanwhile, AI-linked stocks in Asia dropped after some US AI executives publicly called for slowing things down because of the risks. It’s a bit odd when the people building the tech are the ones asking everyone to pump the brakes.
That’s the week. Grab a coffee and catch up on anything you missed below.
Lead Story of the Week:
Clarity Act Vote Fails, Leaving SEC and CFTC in Charge (Read More)
US senators blocked the Digital Asset Market Clarity Act, leaving crypto firms without a clear regulatory framework. (Read The Full Story)
Market Highlights
- Lummis Blames Democrats as Clarity Act Delays Continue
Sen. Cynthia Lummis blamed Democrats for delaying the CLARITY Act, saying some “won’t get to yes.” (Read More)
- Fed’s Rate Hike Is Priced In, but Warsh Could Shake Bitcoin
Bitcoin’s next test may be how Kevin Warsh signals the Fed’s outlook after markets price in a 25-bp hike. (Read More)
- Singapore Crypto Heist Shows Limits of Blockchain Tracing
Singapore’s S$4.9M crypto robbery shows that tracing blockchain transactions does not ensure recovery. (Read More)
- South Korea Probes 26 Polymarket Users Over $12.7M Claims
South Korean police booked 26 Polymarket users for illegal gambling and referred 18 to prosecutors. (Read More)
Latest News For You
ECB Says Digital Euro Won’t Be Programmable, Faces Scrutiny (Read More)
The ECB opened a new digital euro pilot phase, inviting e-commerce and mobile merchants across the euro area. (Read More)
AI News Highlights
- Vitalik Buterin Rejects AI Doomsday Fears
Vitalik Buterin says advanced AI could give cybersecurity teams an edge over hackers, rejecting doomsday fears. (Read More)
- Investors Grow Uneasy Over AI’s Huge Spending Boom
AI-linked Asian stocks fell after US AI executives urged slower development amid rising risks. (Read More)
Market Movers
Top Gainers 📈
- 龙虾 (Lobster) 龙虾 +220.45%
龙虾 (Lobster) is rising due to meme speculation, new derivatives access, and large-trader position building.
Top Losers 📉
- Hunter Biden’s Laptop (LAPTOP) −67.04%
Hunter Biden’s Laptop (LAPTOP) is dropping due to thin liquidity and a gap between peak value and cash support.
Source: CoinGecko
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Disclaimer: This roundup is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence
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