Senate Strikes Back: How the Clarity Act is Reshaping Crypto’s Future in 2025
The political gloves are off as Washington takes its biggest swing yet at crypto regulation. The Senate's response to the Clarity Act isn't just another policy paper—it's a seismic shift that'll send shockwaves through DeFi boardrooms and mining farms alike.
Here's what's breaking:
The Regulatory Hammer Drops
Forget gentle guidance—these proposed rules read like a blockchain bull's worst nightmare. Staking protocols? Now under microscope. Cross-border transactions? Red tape incoming. The days of wild west crypto may be ending with a whimper.
Market Mayhem or Maturity?
Traders are already pricing in the chaos, with BTC volatility spiking 30% since the draft leaked. But institutional players? They're quietly cheering—nothing makes hedge funds happier than watching regulators clear out the 'crypto cowboys' so they can move in.
The Irony You Can't Make Up
Same senators who couldn't define a blockchain in 2020 are now writing its rulebook. Meanwhile, Wall Street banks—who spent years lobbying against crypto—are suddenly 'blockchain innovators.' Some things never change.
One thing's certain: The game changed today. Whether that's good news depends on which side of the regulatory divide you're standing on—and how fast you can adapt.
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!
