Republicans in the Senate published an updated version of the CLARITY Act following negotiations during the August recess. While the new text makes some changes to DeFi regulations, provisions regarding ethics, BRCA, and stablecoin proceeds remain unchanged.
📌Non-decentralized DeFi protocols are required to register with the CFTC. This regulation parallels Section 10301 of the bill’s Banking Committee section.
📌The DeFi provisions are limited only to spot or cash digital commodity transactions. This change appears intended to address concerns raised by tribes about blockchain-based prediction markets.
📌The authority of credit unions to conduct transactions with crypto assets is clarified.
The US 2-year Treasury yield rose to 4.4253%, reaching its highest level since January 2025.
For those asking about the impact on crypto:
In general, this is viewed as negative news for crypto in the short term. This is because it makes safer assets—such as the dollar and bonds—more attractive, potentially leading to some capital outflow from risk assets (BTC, altcoins).
Bitcoin's MVRV momentum oscillator just printed positive for the first time since October 9, 2025. That is 329 consecutive days underwater. The longest stretch since the 2022 bear.
This week's data is primarily focused on inflation, which will confirm the Fed's interest rate decision. If inflation gets hotter, rate hike odds will go up. If inflation shows signs of cooling, rate pause odds will go up.
The September process for the Clarity Act has officially begun.
US Senate Majority Leader John Thune has officially initiated the procedural vote process that will pave the way for the Clarity Act to be considered in the Senate floor.
The critical process for the law will continue in September.
The data is generally positive. However, what is important and decisive for us is how expectations for the Fed's September meeting regarding interest rates change after these figures.