The US Senate failed to pass a cloture motion on the Digital Asset Market Clarity (CLARITY) Act after a year of legislative buildup. The motion received 49 votes in favor and 50 against, falling short of the 60 votes required to proceed. Republican Senator Thom Tillis voted against the motion but indicated he switched sides at the last minute to preserve the option of calling a new vote in the future.
While the GENIUS bill previously experienced a failed cloture vote before passing 11 days later, lawmakers and industry observers suggested resurrection of CLARITY faces steeper odds. Congressman Shri Thanedar, a Democrat who supported the bill in the House, cited the compressed legislative calendar as a barrier. With only 20 legislative days remaining in the current Congress, a compromise appears unlikely before 2026.
Seven Democratic senators who voted against the measure stated they remain committed to passing it. Senator Angela Alsobrooks said Democrats were ready to strike a deal but that Republican leadership ended negotiations at the last minute.
Regulators Issue New Guidance
In the absence of legislative clarity, regulatory agencies have moved quickly with their own rules. Two days after the failed vote, the Securities and Exchange Commission announced a five-year exemption allowing limited trading of tokenized US stocks on decentralized public blockchains. The Innovation Exemption covers automated market maker trading and exempts these platforms from registering as securities exchanges, though it does not apply to synthetic stock tokens that lack the full rights of traditional stocks.
The Commodity Futures Trading Commission issued a no-action position shielding passive software providers from enforcement requirements when connecting users to regulated derivatives firms and exchanges. The relief could enable cryptocurrency wallets and apps to offer access to regulated derivatives including perpetual contracts and prediction markets.
The CFTC also submitted draft rules to the White House addressing cryptocurrency asset transactions and markets, currently listed at the pre-rule stage pending formal proposal.
Bitcoin Reserve Legislation Advances
The American Reserve Modernization Act of 2026 passed the US House Committee on Financial Services this week. The legislation would formalize an existing executive order establishing a Strategic Bitcoin Reserve and create a Digital Asset Stockpile for other forfeited cryptocurrencies within the Department of the Treasury. The bill requires federal agencies to audit their digital asset holdings and provide quarterly proof of reserve reports.
The House Ways and Means Committee also advanced the Digital Asset Tax Certainty Act with bipartisan support, targeting changes to federal tax treatment of digital assets.
Market Movement
Bitcoin traded at $81,185, up 5.9% for the week, while Ethereum reached $2,639, up 6.6%. XRP gained 5.4% to $1.40. Total cryptocurrency market capitalization stood at $2.78 trillion.
Among the largest 100 cryptocurrencies, NEAR Protocol led weekly gains at 76.4%, followed by Arbitrum at 64.3% and Ethena at 61.6%.
Industry Analysis
Standard Chartered's global head of digital assets research projected that Arbitrum could reach $10 by 2030, representing a roughly 70-fold increase from current levels. The analyst cited the network's economic model, in which it receives 10% of net protocol revenue from projects building on it, as a source of upside potential. Robinhood Chain, launched in July, contributed to a fivefold increase in Arbitrum's September revenue to $5 million. Key risks to the projection include slower-than-expected asset tokenization adoption and increased competition from other blockchains.
Security Concerns
A Chainalysis report found that state-linked hackers accounted for roughly two-thirds of new onchain malware activity each quarter, with instances of malware stored on public blockchains rising 420% over the past 12 months. North Korea and Iran-linked operators were identified among state actors adopting the technique. Using public blockchains increases malware campaign durability because stored information remains accessible after domains and servers are taken down.
The theft of customer data from Revolut, including passports and identity verification images, drew multiple ransom demands. A hacker using the name IAmNotAVillain demanded 6,000 Monero within 24 hours, while a separate actor claiming to represent the initial breach demanded 10,000 Bitcoin, valued at approximately $780 million.
