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After the U.S. Senate postponed the vote on the "Digital Asset Market Clarity Act" until after the September recess, the crypto industry expressed disappointment.
Odaily News: Grayscale Head of Research Zach Pandl said that even if the Digital Asset Market Structure Clarity Act (CLARITY Act) is not passed, the operation of major blockchains, demand for Bitcoin as a store of value, and growth of stablecoin payments will not be immediately affected. Regulators will fill regulatory gaps through rulemaking. Zach Pandl noted that the lack of comprehensive market structure legislation could dampen new investment activity in the US, prompting crypto industry participants and startups to move to overseas jurisdictions with clearer regulatory frameworks. The US government will continue to support the development of the crypto ecosystem. Strategy co-founder and Executive Chairman Michael Saylor previously stated that regardless of whether the CLARITY Act is passed, Bitcoin will continue to develop, but the US needs regulatory clarity for digital assets. Senator Bernie Moreno said that Senate Democrats and Republicans have concluded related negotiations, and a vote will follow.
Odaily News: U.S. Senate Majority Leader John Thune has filed a motion to invoke cloture on the motion to proceed to consideration of the Digital Asset Market Clarity Act (CLARITY Act), with the Senate scheduled to hold the related procedural vote on September 15. The vote is expected to take place when the Senate reconvenes at 2:15 PM ET that day. The motion requires 60 votes to pass, meaning Republican lawmakers will need Democratic support to clear the procedural threshold. The two parties are still negotiating over provisions such as ethics rules and stablecoin reward regulations, with those differences having previously prevented an agreement before the August recess. This vote only concerns whether to begin floor consideration of the bill and does not represent a final vote or passage by the Senate. The CLARITY Act aims to establish a federal market structure for digital assets, clarify the conditions under which certain crypto assets are subject to securities or commodities law, and define the regulatory responsibilities of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission.
Odaily News The U.S. Commodity Futures Trading Commission (CFTC) issued a notice reminding regulated entities involved in listing, promoting, or accepting trading of event contracts to ensure that consumers are provided with clear and accurate product pricing information, avoiding misleading market participants, including the obligation to display clear and accurate derivatives pricing information.The CFTC's Division of Market Oversight and Division of Market Participants stated that registered entities and related personnel must comply with regulatory requirements, ensure that users fully understand product attributes in CFTC-regulated markets, and strengthen oversight of information disclosure by intermediaries, affiliates, and partners. It also specifically noted that using the common "American odds" format to display event contract prices may mislead traders' understanding of the product's nature and prevent users from fully accessing key trading information such as market depth and price impact.The CFTC requires that market participants clearly present to consumers that products are event contracts on CFTC-regulated exchanges, and that any misleading pricing display practices related to regulated products may violate provisions of U.S. federal law concerning the prohibition of manipulative trading practices.
Odaily News: The Senate Majority Leader submitted a motion early Saturday morning to begin consideration of the Digital Asset Market Clarity Act, following a late-night voting session in the Senate. Due to the late timing of the motion, the Senate will not be able to vote on the crypto market structure bill before the August recess. The motion paves the way for an almost immediate preliminary vote on the bill when the Senate reconvenes next month. Lawmakers still need to reach agreements on government ethics, enforcement provisions, and issues such as stablecoin yield and rewards before the bill can move forward smoothly.
The CFTC has required regulated event contract exchanges to comply with derivatives laws and not use American betting odds for product marketing. Prices for relevant derivatives should be presented as notional amounts or percentages to avoid misleading market participants.
Odaily News: Polymarket will replace single-price snapshots with time-weighted average prices in short-term cryptocurrency markets for settling related contracts. This follows research and trader complaints indicating widespread manipulation in its settlement process. A study on 5-minute Bitcoin contracts found that some large Binance trades occurred in the final seconds before settlement and appeared to drive price movements; within potentially manipulated settlement windows, the majority of losses were borne by retail traders. The new system will use Chainlink Data Streams and short-duration TWAP windows. This mechanism is similar to the safeguards used by competing platform Kalshi, which relies on regulated price indices and moving averages to increase the difficulty and cost of short-term price distortion.
According to Odaily, Randi Abernethy, Head of Clearing and Group Risk at Bullish, stated that the U.S. Senate's failure to pass the Digital Asset Market Clarity Act (CLARITY Act) does not mean the digital asset market will stop developing; rather, it highlights the necessity of establishing a federal regulatory framework.Abernethy noted that during the Senate's consideration of the CLARITY Act, traditional U.S. financial institutions have continued to accelerate their entry into the on-chain market. JPMorgan Chase has explored tokenized ETF holdings through a production pilot with the Depository Trust & Clearing Corporation (DTCC), and more than 50 institutions (including BlackRock and Goldman Sachs) are also participating in the development of tokenized stock and Treasury bond infrastructure. The current regulatory discussion is no longer just a "crypto industry issue," but one that concerns the future infrastructure of the entire financial system.Abernethy cited the 2008 financial crisis as an example, noting that financial risk spreads along shared infrastructure, and even institutions not directly involved in related assets can be affected. Today, the stablecoin market size has exceeded $100 billion, with a large portion of stablecoin reserves invested in U.S. Treasuries. If a major stablecoin were to face a crisis, it could impact liquidity in traditional financial markets. She stated that supporters of the CLARITY Act believe the bill could establish a unified regulatory framework for the digital asset market, including core investor protection mechanisms such as customer asset segregation, conflict of interest management, capital requirements, and information disclosure. (CoinDesk)
Bitwise CIO Matt Hougan posted that if the Clarity Act fails to pass this week, the ideal scenario is for Polymarket odds to drop significantly to the teens to eliminate market uncertainty. He pointed out that the market may experience brief volatility at that time, but it will create conditions for an autumn market rebound.
The U.S. Digital Asset Market Clarity Act (CLARITY Act) failed to seize a critical advancement window before the Senate's summer recess, and the market is now focusing on whether the U.S. crypto industry can continue to develop even if the bill ultimately fails.Analysts believe that if the CLARITY Act fails to pass, it would be a significant setback for the crypto industry, but not a fatal blow. The bill was designed to clarify the boundaries between securities, commodities, and other categories of digital assets, determine the agencies responsible for overseeing related businesses, and grant the U.S. Commodity Futures Trading Commission (CFTC) clearer regulatory authority over crypto commodity trading.Currently, the bill's progress has stalled, and the likelihood of comprehensive crypto market structure legislation being enacted before the end of the year is declining. This means the U.S. may still lack a clear digital asset regulatory framework, particularly regarding oversight of trading in major crypto assets such as Bitcoin (BTC) and Ethereum (ETH), where jurisdictional gaps remain between the CFTC and the U.S. Securities and Exchange Commission (SEC).However, industry insiders point out that even if the CLARITY Act fails, the SEC and CFTC are still likely to continue advancing industry development through policy statements, regulatory guidance, and existing enforcement authority.In recent years, both agencies have issued multiple pieces of guidance clarifying the regulatory boundaries of business models such as crypto mining, Meme coins, and staking rewards. One of the most significant measures among these is the digital asset taxonomy framework, which seeks to establish standardized regulatory classifications for different types of digital assets. (CoinDesk)
Odaily News - Hyperliquid Policy Center (HPC) announced that it has submitted a policy statement regarding the Commodity Futures Trading Commission (CFTC) Agricultural Advisory Committee meeting, supporting U.S. users' participation in the on-chain derivatives market and calling on regulators to adopt a gradual path to promote the development of innovative products such as Perpetual Futures.HPC stated that the U.S. derivatives market originated in agriculture. In the 19th century, grain exchanges in the U.S. Midwest used futures contracts to help farmers and traders discover prices and manage future delivery risks. Since 1922, the U.S. futures market had been regulated under the Department of Agriculture for a long period, until Congress established the CFTC in 1974, placing oversight of the agency under the jurisdiction of the Senate and House Agriculture Committees. Modern derivatives regulation should still revolve around the actual users of the market. Agricultural producers and processors have always been important constituents served by the CFTC, and market participants' needs for product choice, risk management tools, and market innovation should also serve as important references for the evolution of regulatory policy.HPC noted that perpetual futures are now becoming an important innovative derivative in the digital asset era. The committee's discussions on product choice, risk management gaps, and market modernization are highly relevant to current regulatory efforts to explore a regulatory framework for on-chain derivatives. In the submitted statement, HPC put forward three key points:1. Market choice is crucial for risk management. Users in agricultural and other derivatives markets need more tool options. Past experience with restricting innovative products suggests that closing off market choices without adequate evaluation can impose costs.2. A phased approach by the CFTC to regulating perpetual futures is a reasonable direction. HPC stated that the development of new derivatives should be driven by end-user demand rather than relying solely on regulatory presuppositions.3. Public blockchains can enhance the efficiency of financial infrastructure. HPC believes that blockchain technology can modernize clearing and settlement systems, improve collateral liquidity, while continuing to comply with the Commodity Exchange Act's requirements regarding market integrity and risk protection.
Odaily News: One week after the implementation of regulatory measures on single-stock leveraged and inverse ETFs in South Korea, trading activity in related products has noticeably cooled, with trading volume falling below 1 trillion KRW for two consecutive trading days.According to data from the Korea Exchange (KRX), on August 7, the combined trading volume of 16 single-stock leveraged and inverse ETFs in the Korean market stood at 941.2 billion KRW, marking the second consecutive trading day below 1 trillion KRW after the previous day's 919.8 billion KRW.Market observers believe the decline in trading volume is mainly attributed to the new regulatory measures implemented on July 31. The new rules raise the capital threshold for ordinary retail investors to participate in single-stock leveraged ETFs, increasing the base margin requirement from 10 million KRW to 30 million KRW in cash.Data shows that on the day before the regulation took effect (July 30), the trading volume of the 16 related ETFs reached as high as 12.45 trillion KRW. On the first day of regulation (July 31), it plummeted to 3.15 trillion KRW, and has continued to decline since, dropping to 1.39 trillion KRW and 1.26 trillion KRW on August 3 and 4 respectively, before falling below 1 trillion KRW in recent days.Meanwhile, the share of single-stock leveraged and inverse ETFs in the overall Korean ETF market turnover has also dropped significantly, falling to 5.6% on August 7, compared with 30% to 40% before the regulation.However, Korean securities institutions point out that investment demand has not completely disappeared. Instead, there is evidence of "regulatory arbitrage" or a "balloon effect," with funds shifting toward semiconductor leveraged ETFs and overseas-listed leveraged products.Jung Hyun-jong, a researcher at Korea Investment & Securities, stated that while single-stock leveraged ETF trading volumes have declined following the regulation, semiconductor leveraged ETF trading volume has actually increased, indicating that some capital is rotating into alternative products. Overseas market products may also become targets for capital flows. Jung noted that since overseas-listed ETFs are not subject to domestic Korean regulatory restrictions, investors may turn to overseas single-stock leveraged ETFs. Among them, the Hong Kong-listed CSOP SK Hynix Daily (2x) Leveraged Product is currently one of the largest single-stock leveraged ETF products globally by market capitalization. Domestic Korean regulatory measures alone are unlikely to fully curb investor demand for semiconductor cycles and high-leverage strategies, and the long-term effectiveness of the regulation will require continued observation. (Daum)
According to crypto journalist Eleanor Terrett, the progress of the U.S. Digital Asset Market Structure Act, the "Clarity Act," is currently in a wait-and-see stage. All parties are awaiting a response or counterproposal from the White House regarding the bipartisan ethics amendment plan, while also monitoring whether Senate Republican Leader John Thune will file a cloture motion on the motion to proceed to consider the bill tonight.
According to WSJ reports, Wintermute's US subsidiary has registered as a broker-dealer, marking the crypto trading company's formal entry into the regulated US financial market. This registration qualifies it to apply to become a designated market maker for stock exchanges such as the New York Stock Exchange and Nasdaq, providing a foundation for its expansion into the traditional financial services sector. The report noted that Wintermute is competing with large market-making firms such as Jane Street Capital and Citadel Securities.
Odaily News: Nine U.S. Democratic senators have sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Michael Selig, urging a ban on event contracts related to wildfires, arguing that such contracts could encourage arson, insider trading, and pose risks to public safety. In the letter, the senators noted that Polymarket has accepted over $1.2 million in bets related to the 2025 Palisades and Eaton fires in California. They also pointed out that some new platforms allow users to wager on wildfires, with such markets enabling speculation on destructive events. The senators stated that the CFTC should rein in such betting before the start of next year's wildfire season and establish safeguards in both U.S. and offshore markets. Recent disputes over prediction market regulation have persisted, with related cases in Minnesota, Kentucky, and Michigan raising questions about federal and state regulatory authority.
Senator Tim Scott stated that the U.S. Senate will hold a first vote on the Clarity for Digital Assets Market Act before the August recess, and the bill requires 60 votes to pass.
Odaily News - Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), wrote that the global derivatives market is entering a new phase of development, and the United States will continue to lead financial innovation without introducing regulatory models that could constrain market growth.Selig noted that for decades, derivatives—including financial contracts such as futures, options, and swaps—have served as essential tools for corporations, farmers, investors, and financial institutions to manage risk and optimize capital allocation. Today, the notional value of the global derivatives market has surpassed $1.2 quadrillion, with nearly half of that market overseen by the CFTC. America's leadership in derivatives is built on generations of market competition, robust institutions, effective regulation, and an openness to innovation. For a long time, global regulators have regarded the CFTC as the benchmark for efficient market oversight."Financial innovation in a new era requires innovation, not consensus," Selig stated. He said the U.S. will not adopt regulatory trends that hinder market development, but will instead strike a balance between innovation and market efficiency. He emphasized that during his tenure, the U.S. will continue to play a leading role in derivatives rulemaking and financial innovation, keeping the market competitive.Market observers believe Selig's remarks reflect a positive regulatory stance in the U.S. toward financial technology, digital assets, and emerging financial instruments. With the rapid development of crypto assets, tokenized financial products, and AI-driven trading tools, striking the right balance between risk control and innovation is becoming a key topic for global financial regulators.
Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), wrote in The Economist that the global derivatives market is entering a new stage of development, and financial innovation needs to lead, rather than introducing regulatory models that may limit market development. Michael Selig pointed out that for decades, derivatives (including financial contracts such as futures, options, and swaps) have been important tools for businesses, farmers, investors, and financial institutions to manage risk and optimize capital allocation. Today, the notional value of the global derivatives market has exceeded $1200 trillion, with nearly half of the market regulated by the CFTC. He stated that U.S. leadership in the derivatives field is built upon generations of market competition, strong institutions, effective regulation, and an open attitude towards innovation. For a long time, global regulators have viewed the CFTC as a benchmark for efficient market regulation. Selig stated, "Finance in the new era needs innovation, not consensus." The United States will not introduce regulatory measures that hinder market development, but will seek a balance between innovation and market efficiency. During his tenure, the United States will continue to play a leading role in derivatives market rulemaking and financial innovation, driving the market to maintain competitiveness.
Odaily News: The U.S. Senate has not yet indicated whether it will take up the Digital Asset Market Clarity Act. With only two session days remaining before the summer recess, the Senate has also made no official statement on whether or when a vote on the bill will take place. The Senate could address the bill after returning to Washington in September, but limited working days remain before the final stretch of the 2026 midterm elections. The Senate may also extend the session, originally scheduled to end on August 7, to make room for a procedural vote on the Clarity Act.
According to Cointelegraph, U.S. Senator Cynthia Lummis stated that the Senate is expected to vote on the Digital Asset Market Clarity Act before the August recess. The bill previously passed the House of Representatives in July 2025, but currently still faces resistance in the Senate, including Democrats' demand to strengthen ethics provisions involving President Donald Trump's digital asset investments, as well as concerns from some Republican lawmakers and the banking sector regarding the relevant provisions.