CLARITY Act fails in Senate, tokenized stocks legalized, and Standard Chartered sees 70X potential for ARB
What happened this week
The US Senate failed to pass the Digital Asset Market Clarity (CLARITY) Act after a cloture motion received only 49 votes in favor and 50 against, falling well short of the 60 needed. However, Republican Senator Thom Tillis said he switched his vote at the last minute specifically to enable a future reconsideration. Meanwhile, regulators moved forward with new crypto rules on their own, and a Bitcoin Reserve bill advanced through a House committee.
Key numbers
- 49-50: Senate vote on CLARITY Act cloture motion
- 76.4%: NEAR Protocol weekly gain, the top altcoin winner
- 64.3%: Arbitrum (ARB) weekly gain
- 5.9%: Bitcoin weekly gain, trading at $81,185
- $2.78 trillion: Total crypto market cap
What the SEC proposed instead of CLARITY
Two days after the CLARITY vote failed, the US Securities and Exchange Commission announced a five-year exemption allowing limited trading of tokenized US stocks on decentralized public blockchains. The Innovation Exemption lets tokenized stocks be traded using automated market makers without the protocols needing to register as securities exchanges. However, the rules do not cover "synthetic" stock tokens that do not give holders all the same rights as traditional stocks. Ripple CEO Brad Garlinghouse had predicted regulators would "continue to work hard to issue rules to fill the legislative gap."
CFTC proposes new crypto rules
The Commodity Futures Trading Commission issued a no-action position protecting "passive software" providers that connect users to regulated derivatives firms and exchanges. This could make it easier for crypto wallets and apps to offer access to regulated derivatives like perpetual contracts and prediction markets. The CFTC also submitted draft crypto rules to the White House called the "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets" plan. Coinbase and Kalshi both filed applications this week to offer 24/5 perpetual futures trading on individual US stocks.
Bitcoin Reserve bill passes committee
The American Reserve Modernization Act of 2026 passed the US House Committee on Financial Services. The bill would formalize the Strategic Bitcoin Reserve in law and create a Digital Asset Stockpile for other forfeited cryptocurrencies held by the Treasury. It requires federal agencies to audit their digital assets and provide quarterly proof-of-reserve reports. It also directs a study of budget-neutral strategies for acquiring more Bitcoin.
Standard Chartered sees 70X potential for Arbitrum
Standard Chartered's global head of digital assets research, Geoff Kendrick, said Arbitrum's price could reach as high as $10 by 2030, representing roughly a 70-fold increase from current levels. The bank's reasoning is that Arbitrum receives 10% of net protocol revenue from companies building on it, and Robinhood Chain's fees could push Arbitrum's September revenue to $5 million. Kendrick noted risks including slower-than-expected asset tokenization and competition from other blockchains.
Revolut breach highlights dangers of ID storage
A hacker group calling itself "IAmNotAVillain" demanded 6,000 Monero (about $3 million) from Revolut within 24 hours after stealing customer data including passports and KYC selfies. An earlier group, "Revolut Smilik," had demanded 10,000 Bitcoin. The incident highlighted how mandatory identity verification leads thousands of companies to store sensitive documents online, creating targets for hackers. Zero-knowledge proof technology could verify identity without sharing documents, but it is not yet widely used.
Other reports this week
Chainalysis found that state-linked hackers accounted for roughly two-thirds of new onchain malware activity each quarter, with instances rising 420% over the past 12 months. North Korea and Iran-linked operators were among those identified. Separately, researchers at the Bank for International Settlements found that Bitcoin onchain transfer estimates can vary by up to sixfold depending on measurement methods. In Hong Kong, a former bank official was sentenced to four years in prison for falsifying letters of credit worth over $1.6 billion and accepting cryptocurrency bribes.
What is confirmed
The CLARITY Act cloture motion failed 49-50. The SEC announced a five-year exemption for tokenized stock trading. The CFTC issued a no-action position for passive software providers. The House Financial Services Committee passed the Bitcoin Reserve bill. Standard Chartered published an ARB price projection of up to $10 by 2030. The Revolut data breach and ransom demands were reported. Chainalysis published its malware study. The BIS published its Bitcoin transfer measurement paper.
What is still unclear
Whether the CLARITY Act can be resurrected remains uncertain. Seven Democratic senators said they remain committed to passing it, but Congressman Shri Thanedar noted only 20 legislative days remain after the midterms. Senator Tillis's change of vote was strategic but its long-term implications are unclear. Whether the SEC exemption or CFTC proposals will be finalized and in what form is also unknown.
Why this matters
Even though the CLARITY Act stalled, regulators are actively shaping crypto policy through executive action. The SEC and CFTC moves could significantly affect how tokenized assets and derivatives are traded in the US. The Bitcoin Reserve bill advancing through committee signals growing institutional support for holding Bitcoin at the federal level. The Revolut breach raises broader questions about how identity verification systems handle sensitive data.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.