Rep. Tom Emmer said his Blockchain Regulatory Certainty Act has been included in the Senate version of the CLARITY Act. Emmer said the move would give developers a clearer framework for operating in the U.S. and reduce the risk of government interference. He also said he wants to prevent a repeat of cases like "Scam BankmanFraud." (CoinDesk)

Rep. Tom Emmer says the CLARITY Act has been years in the making. The House Majority Whip and co-chair of the Congressional Crypto Caucus described the Digital Asset Market Clarity Act of 2025 as the roughly "fifth or sixth iteration" of Congress's effort to establish a federal framework for regulating digital assets. The legislation, H.R. 3633, was introduced on May 29, 2025, by House Financial Services Committee Chairman Rep. French Hill. Its central aim is to clarify which federal regulator oversees which parts of the digital asset market, where the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have asserted overlapping and sometimes conflicting jurisdiction. A key feature is a "mature blockchain" test, a classification standard intended to determine when a digital asset should be treated as a commodity rather than a security. If a network meets specified decentralization thresholds, its native token could be viewed as a digital commodity instead of an investment contract subject to SEC oversight. The bill also outlines circumstances under which certain decentralized networks may be treated as non-securities, and states that noncustodial digital asset providers would not be classified as money transmitters. Emmer has argued that law enforcement objections to this provision are overstated, saying the approach addresses illicit finance risks without stifling innovation. The House passed the CLARITY Act on July 17, 2025, by a bipartisan vote of 294–134. The Senate Banking Committee advanced an updated version on May 14, 2026, by a 15–9 vote. Emmer's role extends beyond H.R. 3633. He has previously introduced and reintroduced the Blockchain Regulatory Certainty Act, elements of which were later incorporated into the CLARITY Act. His description of the current proposal as a fifth or sixth version underscores both the complexity of the issue and the persistence of its backers. For investors, the "mature blockchain" test could be particularly significant for major layer-1 networks and their ecosystems. Demonstrating sufficient decentralization could allow a token to avoid more onerous securities regulation, influencing exchange listings, retail marketing practices, and how projects structure governance. For decentralized finance, the noncustodial provider provision could be especially impactful. Clarifying that writing or deploying noncustodial software does not make an entity a money transmitter could ease a major deterrent for U.S. developers. The bill still must clear the full Senate, and any reconciliation between House and Senate versions could reshape the final text. The contrast between the House's 294–134 margin and the Senate committee's 15–9 vote suggests the measure may face a more difficult path in the upper chamber, and the enacted version could differ from what the House approved.

May 23 — Grayscale has filed a third amended registration statement (Amendment #3) with the U.S. Securities and Exchange Commission for its proposed Hyperliquid ETF, according to Bloomberg ETF analyst James Seyffart. The filing confirms the ETF's ticker as "GHYP". Seyffart noted that, as the regulatory process advances, the product may be approaching an official launch window, and that up to three HYPE-related ETF offerings could eventually list on U.S. exchanges.

Bitcoin fell below $76,000 after the U.S. Securities and Exchange Commission delayed a long-anticipated plan that could have paved the way for blockchain-based versions of traditional equities. Following the May 22 announcement, Bitcoin dropped 2.14%, wiping about $33.8 billion from its market value. Ethereum declined 3.4%, while Coinbase shares slid roughly 4.4%. At the center of the move was an "innovation exemption" framework aimed at tokenized stocks—rules that would have allowed companies to issue and trade tokenized versions of listed equities under a lighter regulatory approach than standard securities requirements. The SEC had reportedly completed a draft, with publication expected during the week of May 18–23. That schedule was shelved when the agency announced the delay. Major market incumbents including Nasdaq, Cboe, and CME Group pushed back, warning that easing requirements for tokenized securities could undermine investor protection and distort competition. Members of the World Federation of Exchanges also raised concerns, reinforcing industry-wide resistance that appears to have influenced the SEC's decision to pause. Tokenized stocks are digital representations of conventional shares recorded on a blockchain. Proponents say they could enable 24/7 trading, near-instant settlement, fractional ownership, and lower transaction costs. In the U.S., stock trades currently settle on a T+1 basis—a timeline only recently shortened from two days—while blockchain settlement could, in theory, occur within seconds. Without an exemption-style pathway, firms pursuing tokenized equities still face the full set of securities rules built around legacy market plumbing. The market response underscored broader frustration over the gap between crypto's pace of innovation and regulatory timelines. Bitcoin's $33.8 billion value drop came immediately after the SEC's decision, and Ethereum's parallel decline suggested a sector-wide repricing rather than an isolated move. Coinbase's 4.4% decline was notable given its position as the largest publicly traded U.S. crypto exchange and a likely beneficiary of any regulated tokenized-stocks regime. The pullback suggests investors are reassessing not only timing, but also the likelihood that such a framework arrives at all. The competitive stakes are also clear. Traditional exchanges are not just raising policy objections—they are defending market share and fee economics that could be challenged if tokenized equities migrate to blockchain-native venues. The SEC's willingness to slow the process following exchange feedback signals that legacy market-structure concerns will remain a central factor as the agency evaluates future crypto-adjacent initiatives.

Homebuyers have traditionally relied on cash savings, selling investments, and extensive documentation to secure a mortgage. The Trump administration is now encouraging another path: using cryptocurrency as collateral. On March 26, 2026, Better Home & Finance and Coinbase introduced what they call the first token-backed conforming mortgage. The structure allows borrowers to pledge BTC or USDC to support a home loan, with backing from Fannie Mae, signaling an attempt to bring crypto-collateralized lending into the conventional mortgage market. Under the setup, the borrower takes out a standard first-lien mortgage alongside a second-lien loan secured by pledged digital assets. Verified crypto holdings can be used to support funds needed for down payments and closing costs, while avoiding the need to sell Bitcoin and potentially incur capital gains taxes. A key limitation remains: all payments, including down payments and closing costs, must still be made in U.S. dollars. The digital assets function as reserves within the underwriting process, intended to demonstrate additional financial capacity rather than replace cash settlement. The program follows a regulatory push that began on June 25, 2025, when Federal Housing Finance Agency Director Bill Pulte issued Decision No. 2025360 instructing Fannie Mae and Freddie Mac to explore incorporating digital assets into mortgage risk assessments. That directive laid the groundwork for the launch roughly nine months later. The initiative aligns with President Trump's stated goal of making the U.S. the "crypto capital of the world." With an estimated 52 million Americans holding digital assets, proponents argue the policy could expand access for potential buyers who previously would have had to convert crypto to fiat before it could be considered in traditional mortgage channels. For investors, the near-term implication is expanded utility for Bitcoin: it can be used to facilitate a home purchase without a direct taxable sale. Risks center on volatility, which adds a dimension that conventional mortgage underwriting has limited experience pricing. A sharp drawdown—for example, a 30% monthly drop in Bitcoin—could quickly erode collateral coverage. Market participants will be watching how Fannie Mae addresses margin-call-style scenarios tied to second-lien crypto-backed loans. USDC could also gain from the development. Acceptance of a stablecoin as mortgage collateral by a government-backed entity amounts to a meaningful endorsement of the stablecoin model. If adoption widens, Circle, the issuer of USDC, may benefit from a stronger position in regulated, mainstream credit markets.

Kevin Warsh was sworn in on Friday as the Federal Reserve's 17th chair during a White House ceremony, marking the first time since Alan Greenspan in 1987 that a Fed chair took the oath at the executive mansion. Supreme Court Justice Clarence Thomas administered the oath. Warsh, 56, succeeds Jerome Powell, who will remain on the Fed's Board of Governors through 2028. The Senate confirmed Warsh on May 13 in a 54–45 vote, with Democratic Sen. John Fetterman the only Democrat to back the nomination. Warsh said he would lead a "reform-oriented Federal Reserve," emphasizing the central bank's dual mandate of price stability and maximum employment. He also pledged not to precommit on interest-rate decisions at the request of elected officials; President Trump told attendees he wants the new chair to be "totally independent." Warsh's first Federal Open Market Committee meeting as chair is scheduled for June 17, the next major waypoint for markets looking for clarity on the policy path. Bitcoin hovered around $77,400 during Friday's session, little changed as investors had largely priced in the leadership transition. Warsh is viewed by many as the most crypto-literate Fed chair to date. Public financial disclosures showed indirect exposure to DeFi lending, Layer-1 projects and prediction markets; he has since said he will fully divest. Policy-wise, Warsh may be less supportive of risk assets. He has argued the Fed's balance sheet is too large and should be reduced. A faster drawdown would likely tighten liquidity and could curb the tailwinds that have historically accompanied crypto rallies. Derivatives markets are currently assigning near-zero odds to a June rate cut, with some participants even pricing the possibility of rate hikes in early 2027. Warsh takes over with inflation still running above the Fed's 2% target, oil trading above $100 a barrel, and consumer sentiment weak—a backdrop that limits the Fed's ability to ease. Warsh's arrival is a mixed signal for crypto: his familiarity with digital assets could translate into more informed messaging, while a focus on inflation control and balance-sheet shrinkage risks tightening financial conditions. Investors are likely to look to the June 17 FOMC meeting for the first concrete indications of how his priorities will show up in policy.

Bank of America's latest Form 13F for the first quarter shows roughly $53 million in holdings tied to cryptocurrency ETFs and related stocks. The largest position is in BlackRock's iShares Bitcoin Trust (IBIT), valued at about $37 million, with 972,590 shares, up from 719,008 in the prior quarter. The bank also reported about $7.98 million in Bitwise's BITB, $3.32 million in Grayscale's Mini Fund, and $1.71 million in Fidelity's FBTC. Smaller positions were disclosed in Grayscale's GBTC, VanEck's HODL and Ark 21Shares' ARKB.

May 23 — The Internet Crime Complaint Center (IC3), the FBI's cybercrime reporting unit, said it received more than 13,400 complaints in 2025 tied to fraud involving cryptocurrency ATMs, also known as crypto kiosks. Reported losses exceeded $388 million. IC3 said that compares with 2024 levels as complaints rose 23% and losses jumped 58%. More than half of the complaints came from people aged 50 and older, with losses of more than $302 million. Crypto kiosks function similarly to traditional ATMs, allowing users to swap cash for cryptocurrency and convert crypto back into cash. IC3 warned that scammers often trick victims into sending money through these machines.

Grayscale has published a new roadmap outlining which blockchain networks could gain the most as Washington moves toward a more coherent U.S. crypto regulatory framework. The firm's shortlist: Ethereum, Solana, BNB Chain and Canton Network. Released around May 2122, the report arrives as U.S. lawmakers push forward on market-structure legislation. The Digital Asset Market Clarity Act advanced out of the Senate Banking Committee in a bipartisan 159 vote on May 14, the most significant market-structure push since the stablecoin-focused GENIUS Act in 2025. In its note, "The Blockchains that Stand to Benefit from Regulatory Clarity," Grayscale argues that a formal system for classifying digital assets and registering intermediaries would speed institutional adoption of public blockchains. Ethereum leads the list, with Grayscale pointing to its position in tokenized assets and full onchain functionality. Solana and BNB Chain follow, driven by stablecoin activity and DeFi engagement, measured through total value locked and decentralized exchange volume. Canton Network is cited as a strong candidate for institutional deployments, especially where privacy-compliant functionality is required. Grayscale also addresses a point of confusion: some coverage, including Cointelegraph, identified Cardano as the fourth network. Grayscale's original report specifies Canton Network, a material difference given Canton's focus on institutional privacy use cases versus Cardano's distinct market positioning. The analysis builds on Grayscale's December 2025 publication, "2026 Digital Asset Outlook: Dawn of the Institutional Era," which anticipated that bipartisan market-structure legislation would follow the GENIUS Act. Grayscale says that forecast is now playing out. The Digital Asset Market Clarity Act is designed to establish a digital-asset classification regime, a registration framework for crypto intermediaries, and a market-structure blueprint intended to provide clearer guardrails for regulators and market participants. Grayscale's central view is that clearer rules will drive deeper integration of public blockchains into traditional finance, primarily through tokenization of real-world assets and expanded stablecoin functionality within decentralized finance.