The US Senate Banking Committee advanced the Digital Asset Market Clarity Act in a 15 to 9 vote, splitting oversight between the CFTC for digital commodities like Bitcoin and the SEC for securities, with the bill needing 60 votes on the Senate floor. Charles Schwab launched Schwab Crypto for spot Bitcoin and Ethereum trades at a 75 basis point fee, rolling out across 48 states with custody via Charles Schwab Premier Bank and Paxos.

CoinDesk, May 16 1) a16z said momentum for the CLEAR Act in the U.S. Senate could mark crypto's "1933 moment. 2) Japan's Financial Services Agency introduced a registration framework for cryptocurrency intermediaries. 3) Russia's State Duma filed amendments aimed at legalizing cryptocurrency. 4) CME and ICE asked regulators to review potential manipulation risks tied to Hyperliquid. 5) Bitcoin ETFs recorded $290 million in net outflows. 6) Michael Saylor said MicroStrategy repaid $1.5 billion of debt and may sell Bitcoin. 7) Abu Dhabi's Mubadala lifted its Bitcoin ETF position 16% to $566 million by Q1 2026. 8) Lombard migrated $1 billion in BTC assets to Chainlink CCIP. 9) Saudi Arabia is advancing economic diversification plans that include asset tokenization. 10) Poland's Sejm passed the MiCA crypto bill as investigations into alleged ZondaCrypto fraud intensify.

Hyperliquid's HYPE token fell about 6% on Friday after Bloomberg reported that CME Group and Intercontinental Exchange are urging U.S. officials to take a closer look at the decentralized exchange's involvement in offshore oil-linked trading. HYPE was last around $43.81 after hitting an intraday high of $46.93, a decline of roughly 6.7% from the session peak. The token traded in a 24-hour range of $42.75 to $47.00. Bloomberg said ICE and CME have raised concerns with the Commodity Futures Trading Commission and officials on Capitol Hill, describing Hyperliquid as a rapidly expanding, unregulated crypto platform that could "skew global oil prices" and enable "price manipulation." At the center of the complaint is Hyperliquid's anonymous trading setup, which the exchanges argue could give insiders room to move prices or allow state actors to sidestep sanctions. The friction comes as Hyperliquid pushes beyond crypto-native perpetuals into contracts tied to real-world assets, including oil. For incumbent venues, the worry is less about lost speculative flow than the prospect that a 24/7, offshore, crypto-based market could start influencing price discovery in assets tied directly to inflation, energy costs and geopolitical risk. Hyperliquid's oil perpetuals have already drawn attention. In March, an oil-linked perpetual tracking West Texas Intermediate crude logged more than $1.2 billion in 24-hour volume on the platform, briefly ranking as its second-most traded market behind crypto assets. The spike coincided with a surge in traditional oil futures, which rose more than 30% to nearly $120 a barrel as Middle East tensions escalated. The episode underscored the contrast between traditional commodity futures, which trade during defined hours, and crypto derivatives that run continuously. During weekends or geopolitical shocks, that gap can leave crypto venues among the few live markets reflecting fast-moving views on oil, gold and other macro-sensitive assets. For traders, the appeal is always-on access, leverage and rapid responsiveness to global events. For CME and ICE, the concern is that liquidity, leverage and anonymity could concentrate around synthetic oil exposure outside the usual regulatory perimeter, making it harder to distinguish offshore speculation from real-world commodity price formation.

The CLARITY Act moved a step closer to becoming U.S. law after the Senate Banking Committee voted 15–9 on May 14 to advance the bipartisan bill. Venture firm Andreessen Horowitz (a16z) said the vote could mark crypto's "1933 moment," arguing the legislation would finally deliver a purpose-built market-structure framework for blockchain networks and digital assets after years of regulatory uncertainty. What CLARITY is designed to do The bill would create a legal regime tailored to protocols and tokens rather than forcing them into rules originally written for traditional companies. It would spell out when a token is treated as a security, when it transitions into a commodity-style framework, and how oversight is divided between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). CLARITY also aims to sharpen SEC–CFTC jurisdictional boundaries, set licensing and conduct standards for digital-asset trading platforms, codify consumer-protection requirements, and establish routes for blockchain networks to operate without being treated as perpetual securities issuers. Compared with earlier proposals, the current text includes more detailed provisions on exchange supervision and how tokens move from initial distribution into secondary-market trading. How the bill gets to the finish line The Senate version draws heavily from the 2024 FIT21 Act and a 2025 House CLARITY draft, with added language focused on exchange oversight and token lifecycle issues. The May 14 committee vote is not final: the Banking Committee text must be harmonized with a parallel draft from the Senate Agriculture Committee, which oversees the CFTC. Any unified bill would still need approval from the full Senate, passage in the House (where earlier versions have already gained momentum), and the president's signature. Why a16z says it's pivotal a16z argues the current U.S. approach—described as "regulation by enforcement instead of legislation"—has dampened innovation, encouraged regulatory arbitrage, and pushed projects offshore. In the firm's view, CLARITY would replace legal gray areas with statutory rules that developers, exchanges, and institutional investors can build around. The firm likened the potential impact to the Securities Act of 1933 and the Exchange Act of 1934, and pointed to the GENIUS stablecoin bill as an example of how clearer rules can accelerate market activity. a16z said a similar framework for broader digital assets could catalyze network launches, tokenization efforts, and institutional participation. Bottom line Supporters argue that moving digital-asset oversight from ad hoc enforcement to a defined statutory regime could help the U.S. regain a central role in crypto innovation. The bill still faces substantial legislative work before CLARITY's potential industry-wide effects can materialize.

Grayscale has submitted a second amended S-1 registration statement for its proposed BNB ETF to the U.S. Securities and Exchange Commission, according to BlockBeats on May 16. Bloomberg ETF analyst James Seyffart said the revisions likely reflect SEC feedback, pointing to a potentially quicker trajectory toward a U.S. listing.

Hyperliquid's Washington, D.C., policy arm moved to address a Bloomberg report claiming major U.S. exchanges are pressing regulators to tighten scrutiny of the decentralized platform. Bloomberg said CME Group and Intercontinental Exchange (ICE) have lobbied the Commodity Futures Trading Commission (CFTC) and lawmakers to place Hyperliquid under federal supervision. Their argument centers on the venue's anonymous, onchain trading and growing volumes in crypto and commodity-linked markets, which they say could affect price discovery in benchmark-sensitive sectors, including oil, and increase risks tied to market manipulation or sanctions evasion. The request: require Hyperliquid to register with the CFTC. Such registration typically involves customer identification programs and formal trade surveillance, steps that conflict with Hyperliquid's intentionally anonymous setup. In response, the Hyperliquid Policy Center (HPC), led by CEO Jake Chervisnky, rejected the allegations in posts on X, calling them "unfounded." HPC said Hyperliquid is highly transparent because every trade is published onchain in real time, giving regulators and law enforcement clearer data for monitoring and investigations than some offchain venues. HPC also defended 24/7 trading as a market-efficiency feature, arguing that continuous trading can smooth price discovery across time zones and reduce gap-driven dislocations that occur when traditional exchanges are closed. HPC acknowledged one point raised in the report: U.S. law is not yet well tailored to derivatives markets operating on public blockchains. The group said it will continue engaging policymakers on bringing onchain derivatives within an appropriate regulatory perimeter. Some coverage, including The Defiant, characterized the lobbying effort as potentially driven by incumbent interests. CME is expanding its own round-the-clock crypto lineup, with Bitcoin Volatility Futures set to launch June 1 and Nasdaq CME Crypto Index Futures (covering BTC, ETH, XRP and others) slated for June 8. Market snapshot: Hyperliquid's token HYPE was last at $44.60, up 1.6% over 24 hours and nearly 4% over the past seven days. Image/chart credits: featured image created with OpenArt; chart from TradingView.com.

CME's FedWatch tool shows markets overwhelmingly expect the Federal Reserve to keep interest rates unchanged at the June meeting. The probability of no change stands at 99.2%, while the odds of a 25-basis-point cut are 0.8%. For July, FedWatch estimates a 95% chance rates remain on hold, alongside a 0.7% probability of a 25-basis-point cut and a 4.2% probability of a 25-basis-point hike.

Odaily Planet Daily reports that the U.S. Senate Banking Committee voted 15-9 to advance the Clarity Act, legislation that would create the first comprehensive federal regulatory framework for the crypto industry. Democratic Senators Ruben Gallego and Angela Alsobrooks backed the measure. Market participants largely view the committee's approval as constructive, but analysts say the bill still faces major hurdles before it can become law. TD Cowen lifted its estimate of the bill's chances of passage from roughly one-third to 40%, citing growing willingness among some Democrats to consider routes to support it, though key policy disputes remain unresolved. The proposal has previously been slowed by debates over stablecoin yield structures, conflicts of interest, and ethics provisions. The bill must also win additional Democratic support to clear the Senate's filibuster threshold. Benchmark analysts said the current vote count does not yet provide a clear path to final passage. (The Block)

The U.S. Senate Banking Committee has voted to advance the Digital Asset Market Clarity Act (CLARITY), moving a long-delayed effort to define crypto market structure a step closer to the Senate floor. The bill cleared the committee with bipartisan support, though its prospects in the full Senate remain tied to negotiations over ethics language and possible amendments. On Thursday, Democratic Senators Ruben Gallego and Angela Alsobrooks joined 13 Republicans to back CLARITY, following months of procedural delays. The House has already passed its own version by a wide margin, and the Senate Agriculture Committee previously advanced provisions focused on commodities-market rules. Taken together, the committee actions point to coordinated momentum across chambers, with the endgame hinging on how the Senate finalizes the text before any measure is sent to the White House. "The momentum and progress are strong," said Ji Hun Kim, CEO of the Crypto Council for Innovation, after the vote. "The House passed its version with broad support, and the Senate Agriculture Committee advanced its market-structure provisions earlier this year. The Banking Committee followed suit with bipartisan backing, underscoring a shared interest in formalizing how digital assets fit into U.S. regulatory frameworks." Ethics provisions remain a key obstacle. Several Senate Democrats and at least one Republican indicated they will not back CLARITY as written without language addressing potential conflicts of interest tied to officials' relationships with the crypto industry. Committee chair Tim Scott and the remaining 12 Republicans voted against an amendment aimed at addressing President Trump's potential connections to digital assets, highlighting the broader governance debate surrounding the sector. After the committee action, Senator Thom Tillis said "more work remains in the weeks ahead to make this legislation even better." Senator Raphael Warnock argued during the markup that any final package should address concerns over "pure corruption" tied to executive-branch and political-figure involvement in the industry. No date has been set for a full Senate vote. The Senate calendar shows sessions running through late May and again in June, excluding weekends and holidays. If CLARITY reaches the 60-vote threshold needed to invoke cloture, it would return to the House for concurrence before potentially going to the president. White House crypto policy adviser Patrick Witt has said the administration's target remains aligned with a July 4 sign-off timeline. Key takeaways - The Senate Banking Committee approved CLARITY with bipartisan support, advancing efforts to establish a formal U.S. market-structure framework for digital assets. - Ethics language focused on potential conflicts of interest is emerging as a central hurdle to broader Senate support. - Next steps include cloture math in the Senate, possible amendments, and cross-chamber negotiations before any final House concurrence. - Momentum is reinforced by earlier action in the Senate Agriculture Committee and the House's passage of its own version. - Separate tax-policy work is moving in parallel, including debates over the statutory treatment of stablecoins and income from lending or staking. Market structure: momentum, but an uncertain path CLARITY is designed to codify how digital assets fit within U.S. oversight, complementing existing commodity and securities frameworks. With the Agriculture Committee's commodity-focused section already advanced and the House version passed with broad Democratic support, lawmakers appear increasingly aligned on the need for clearer rules, even as they debate how to balance innovation, consumer protection, and national security concerns. The bill's path through the Senate remains uncertain because it must clear a 60-vote threshold to move forward. That may depend on whether negotiators can reach agreement on ethics provisions and other contested elements. The White House has signaled expectations for near-term enactment, but timing will depend on final text negotiations. Policy backdrop and market implications The CLARITY debate is unfolding alongside the European Union's MiCA regime and ongoing U.S. actions by the SEC, CFTC, and DOJ. For market participants, a defined U.S. structure could reshape licensing, compliance, and the handling of stablecoins and other tokenized instruments within regulated banking and payments rails. Industry participants have emphasized that clearer rules could reduce uncertainty for exchanges, liquidity venues, and financial institutions, while policymakers continue to press for strong AML/KYC standards, disclosure requirements, and consistent enforcement. Crypto tax discussions running alongside Beyond market structure, lawmakers are also weighing how digital assets should be taxed. The House Ways and Means Committee has reportedly held a bipartisan session on crypto tax policy. The discussions follow the December 2025 introduction of the Digital Asset PARITY Act by Representatives Max Miller and Steven Horsford, which seeks to clarify tax treatment for digital assets, including stablecoins and income earned through lending or staking. For financial institutions, tax clarity is closely tied to risk management, reporting, and compliance design. More defined guidance could reduce ambiguity in cross-border activity and improve the reliability of financial reporting, shaping how crypto firms structure products, manage liquidity, and report income. What to watch CLARITY's outlook now turns on Senate floor timing, amendment negotiations, and whether ethics provisions can be aligned with market-structure goals. With multiple committees and both chambers showing movement, the push to formalize U.S. digital asset regulation is gaining force, with material implications for exchanges, banks, and institutional investors.