DeFi

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Senate Banking Committee members reviewing the CLARITY Act draft on digital asset regulations in a congressional hearing room.
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Senate banking committee releases clarity act draft

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The Senate Banking Committee released updated text for the CLARITY Act on May 12 ahead of a scheduled May 14 markup. The draft sets rules for digital assets, stablecoins, and decentralized finance while leaving ethics provisions unresolved.

Galaxy, led by Mike Novogratz, and Sharplink have launched a $125 million private fund that will invest staked Ether in decentralized finance strategies. The move comes as institutions increasingly seek yield from their Ethereum holdings. Sharplink also reported a large quarterly loss.

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Solv Protocol is shifting more than $700 million in tokenized Bitcoin from LayerZero to Chainlink's CCIP. The move follows Kelp DAO's similar decision after a major exploit.

Onchain investigator ZachXBT announced an upcoming probe into insider trading at a major crypto business, prompting selloffs in several high-revenue tokens. Tokens like MET, HYPE, and PUMP dropped as traders speculated on the targets. A prediction market quickly gained traction betting on which company would be exposed.

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Figure's Home Equity Line of Credit token, known as Figure Heloc, has surged to become the tenth-largest cryptocurrency by market size, exceeding $15 billion. However, the token faces criticism for its limited onchain activity and liquidity. Supporters defend it as a legitimate real-world asset on the blockchain.

A recent analysis argues that decentralized finance (DeFi) has failed to fulfill its promise of banking the unbanked by merely building on top of existing traditional finance infrastructure. Instead of creating new financial rails, DeFi relies on banks, regulators, and centralized systems for its core operations. This dependency limits its accessibility to those already excluded from the system.

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The U.S. Senate Banking Committee is set to mark up the Digital Asset Market Clarity Act of 2025 on January 15, 2026, aiming to establish a federal framework for digital assets. The bill would divide regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Controversy surrounds provisions related to decentralized finance, with advocacy groups launching ads to oppose them.

 

 

 

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