Digital Asset Market Clarity Act Faces Uphill Battle Despite New Draft Coming Next Week

The post ‘Walled off’ – Hyperliquid, Phantom press CFTC for 3 DeFi demands appeared on BitcoinEthereumNews.com. Hyperliquid and Solana-based wallet Phantom have urged the U.S derivatives market regulator, Commodity Futures Trading Commission [CFTC], to modernize its regulations.  Source: HPC In a letter sent to the CFTC, the DeFi players requested three things. First, the agency should not treat a non-custodial software developer (users control funds, not the platform) as a broker. In other words, creating on-chain protocols should not automatically trigger CFTC registration as an exchange or clearinghouse. Put plainly, they want developer protections.   Second, the no-action relief granted to self-custodial wallets, as issued to Phantom in March 2026, should be made formal guidance. An industry coalition made a similar argument and pushed in April. If adopted, non-custodial DeFi front-ends like Phantom would not need broker-dealer or exchange registration to handle even U.S tokenized

The post Phantom pulls on-chain perps into the US wallet war ahead of July 9 deadline appeared on BitcoinEthereumNews.com. On July 9, Phantom and the Hyperliquid Policy Center urged the CFTC to remove rules they say “unduly impede” fintech firms from working with registered derivatives markets. Phantom presents itself as the software in the middle, rather than the custodian. Users retain control of their funds and private keys, while trades are executed directly between them and registered venues. Phantom already offers Hyperliquid through its interface, though US users still cannot access it. American traders still need a regulated path to reach on-chain perpetual futures through a wallet, and this filing is Phantom’s attempt to build one. A flowchart shows a user’s wallet routing order instructions through a software-only interface to registered venues, brokers, and clearinghouses. Three specific requests The letter asks the CFTC for three things: protocol developers should avoid tri

The post Clarity Act Talks Continue as White House Responds to SEC, CFTC Nomination Dispute appeared on BitcoinEthereumNews.com. Key Insights: The White House stated that Democrats never submitted SEC and CFTC nominees before the Clarity Act debate. The legislation would split crypto regulation duties between the US SEC and the CFTC. The US SEC plans a new crypto proposal as lawmakers continue Clarity Act negotiations. Clarity Act negotiations have entered another phase. The White House rejected claims that the Trump administration refused to nominate Democratic commissioners to the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. The response came through a letter to Senate leaders. In that letter, the administration said it had already requested Democratic recommendations for the vacant positions. The exchange unfolded as lawmakers from both parties continued urging Congress to fill the minority seats before taking further action on the Clarity Ac

The post DAMCA Senate Vote: Ethics Fight Threatens Passage appeared on BitcoinEthereumNews.com. Clarity Act News: A unified draft of the Digital Asset Market Clarity Act, merging work from the Senate Banking and Agriculture Committees, may be released as soon as next week, with advocates expecting the legislation to reach the Senate floor during the week of July 20. The merged text is said to have grown by more than 70 pages relative to prior versions, reflecting extensive committee-level negotiations, and places additional weight on consumer protections. This is not simply a procedural update. It is a narrow-window pressure test for whether a crypto market-structure framework can survive the Senate’s 60-vote threshold before summer recess forecloses the legislative calendar entirely. Clarity Act News: The Ethics Stalemate and What the AG Enforcement Clause Actually Said The bill’s central unresolved fault line remains ethics restrictions. Senate Democrats have demanded language barrin

The post Lummis Says Senate Nears Final Push on Landmark Crypto CLARITY Act  appeared on BitcoinEthereumNews.com. Lummis said the Senate is close to finalizing the CLARITY Act after months of difficult negotiations. Lawmakers continue resolving DeFi, ethics, and illicit finance issues before a final Senate vote. Regulators urged Congress to pass the CLARITY Act as analysts lowered its approval odds. Senator Cynthia Lummis said lawmakers are close to finalizing the Digital Asset Market CLARITY Act after months of negotiations, with the Senate aiming to release the bill’s final text and move it forward this month. Speaking to Fox Business, Lummis said negotiators have resolved several major disagreements, although the effort missed its original July 4 target. The Wyoming Republican said lawmakers have worked through difficult policy issues since last Labor Day. While most of the major disputes have been settled, she noted that a few outstanding issues still need to be resolved before the

The post North Carolina Bill Recognizes CFTC’s ‘Federal Regulatory Authority’ Over Prediction Markets appeared on BitcoinEthereumNews.com. In brief North Carolina has passed a law recognizing the CFTC’s authority over prediction markets such as Kalshi and Polymarket, breaking with states trying to police them as gambling. The provision, signed by Governor Josh Stein on July 7, taxes the platforms at 6% of their North Carolina-attributable net trading fees, versus a 23% rate on sports betting operators. It lands days after a New York judge dealt Kalshi a major courtroom setback, deepening a national split headed for the higher courts. North Carolina has become one of the few states to formally side with federal regulators in the escalating fight over prediction markets, enacting a law that recognizes the CFTC’s authority over platforms like Kalshi and Polymarket. Governor Josh Stein signed the measure on July 7 as part of the state’s 2026 budget, Senate Bill 257. A prediction market reg

The state's budget law leaves oversight of Kalshi and Polymarket to the CFTC and taxes them at 6%, far below what other states are pursuing.

The post North Carolina imposes 6% tax on CFTC-regulated prediction markets appeared on BitcoinEthereumNews.com. North Carolina was the first state to codify the federal jurisdiction over prediction markets into its statutes, allowing Kalshi and Polymarket to operate legally as long as the two prediction market firms are registered with the Commodity Futures Trading Commission (CFTC). This is very important as it provides a model for all the trading platforms that are facing lawsuits from states over such issues since it presents a trade-off between the revenue-sharing arrangements and the hands-off approach in regulation. The provision is part of Senate Bill 257, formally known as Session Law 2026-41, and is part of the roughly 34 billion budget passed. The provision is based on the Commodity Exchange Act, whereby the CFTC has been given “exclusive federal regulatory authority” of prediction markets by this law. If a prediction market is registered with the CFTC, it has fulfilled all