Senate Strikes Back: How the Clarity Act Reshapes Crypto’s Future in 2025
The Senate just dropped a bombshell on crypto—and the market's already pricing in the chaos. Here's what you need to know.
### Regulatory Whiplash Hits DeFi
Politicians finally read the memo: blockchain isn't going away. Their 'solution'? A 400-page bill that somehow manages to confuse stablecoins with security tokens. Classic Washington.
### The Compliance Trap
Exchanges are scrambling to decode provisions that could force KYC on wallet-to-wallet transfers. Meanwhile, ETH stakers face new tax reporting requirements—because nothing says 'innovation' like quadrupling your accountant's bill.
### Silver Linings for Institutional Players
JPMorgan's lobbyists clearly earned their bonuses this quarter. The Act greenlights bank-controlled custody solutions while slapping decentralized protocols with 'unlicensed money transmitter' labels. How convenient.
The irony? This 'Clarity Act' achieves the opposite—pushing more development offshore while Wall Street cashes in. But hey, at least Senators can now pretend they 'fixed' crypto before election season.
This week
- There was a business meeting scheduled for the Senate Agriculture Committee to consider Brian Quintenz's nomination for chair of the Commodity Futures Trading Commission, but it's been rescheduled to July 28.
- (Bloomberg) Crypto companies have spent just under $7 million in lobbying over the second quarter of 2025. Coinbase spent just under $1 million on digital assets issues, as well as lobbying "on matters affecting the Securities and Exchange Commission's budget and appropriations request," Bloomberg reported.
- (Politico) U.S. President Donald Trump visited the Federal Reserve's offices, inflating the cost of its ongoing renovation in an exchange with Fed Chair Jerome Powell.
- (Galaxy Digital) Galaxy published an overview of all of Donald Trump's policy changes around crypto over the first six months of his presidential term.
If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at [email protected] or find me on Bluesky @nikhileshde.bsky.social.
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See ya’ll next week!
