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Fraud in America has diverged into two distinct challenges across age groups, new Abrigo survey finds

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Fraud in America has diverged into two distinct challenges across age groups, new Abrigo survey finds

New national survey finds that deepfake scams dominate among younger Americans while impersonation fraud threatens older Americans

Fraud in America is increasingly divided along generational lines, according to a new national survey from Abrigo, a leading provider of compliance, credit risk, lending, and data and analytics solutions for U.S. financial institutions. More than half of Americans under 35 are concerned with deepfake scams, while over 60% of those over 55 are concerned with impersonation scams.

“This data tells financial institutions that fraud strategy can no longer be one-size-fits-all,” said Jay Blandford, CEO at Abrigo.Share

While younger and older Americans see fraud risks differently and have distinct expectations of their banks, most financial institutions continue to approach fraud as a single problem with a one-size-fits-all solution.

The proliferation of fraud nationwide brings urgency to this issue. Nearly 2 in 5 Americans (39%) report being fraud victims. And 1 in 5 experienced bank fraud in the past 12 months. Among those affected, 59% report stress or anxiety as a direct result, and nearly 60% say they would reduce their banking relationship following a fraud event.

“This data tells financial institutions that fraud strategy can no longer be one-size-fits-all,” said Jay Blandford, CEO at Abrigo. “Younger customers need protection that moves as fast as the platforms they use. Older customers need protection that accounts for how authority and trust get exploited. Serving both well requires different tools, different communication, and a much sharper understanding of who is actually at risk.”

Among younger Americans, fraud blends seamlessly into everyday digital life. More than half of those 18 to 24 (53%) and 25 to 34 (55%) are concerned about deepfake scams. Peer-to-peer payment fraud is a concern for 43% to 44% of both groups. These consumers are worried about being tricked in real time.

The picture shifts entirely for Americans over 55. The threat is due to perceived authority. Impersonation scams, where fraudsters pose as banks or government agencies to steal information or payments, have awareness rates of 66% among people ages 55 to 64 and 61% of those 65 and older. That means roughly 1 in 3 older Americans may not recognize these scams when they encounter them.

Phantom hacker scams, in which fraudsters impersonate multiple officials in sequence to convince victims their money is at risk, are a concern for more than 56% for both age groups, with nearly 44% unaware of the threat. These consumers are also being targeted through perceived authority, with scammers posing as banks, government agencies, and tech support.

Generational differences also influence who consumers blame for fraud. Among Americans aged 25 to 34, the majority (51%) believe banks should always reimburse fraud victims. Among those 65 and older, only 17% agree that the financial institution bears responsibility, and nearly half (46%) say fraud is their own responsibility if they authorize payment.

More than half of Americans 65 and older (51%) are extremely concerned about AI-powered fraud. Yet fewer than 1 in 10 (8%) say they are very comfortable using financial apps. The gap matters because direct communication through a verified banking app is one of the most reliable ways to distinguish a legitimate institution from someone impersonating one, which is a distinction older Americans are being asked to make without the tools that would make it easier.

By The Numbers:

  • Credit card fraud is the top concern across all age groups, cited by 1 in 3 Americans (34%), followed by ACH fraud at 13% and peer-to-peer fraud at 9%.
  • Among fraud victims, nearly 1 in 5 (20%) report check fraud, despite declining check usage among younger consumers.
  • Women are more concerned about peer-to-peer scams than men, at 45% versus 40%.
  • Nearly 4 in 5 Americans (79%) support government legislation to address fraud.
  • More than 2 in 5 Americans (42%) say banks are primarily responsible for protection.
  • Among Americans 35 to 44, concern is consistently high across both digital and traditional fraud: data breaches at 59%, peer-to-peer scams at 54%, and deepfakes at 51%.

Prediction market conference blamed Nevada pressure for move. Regulators say no.

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Prediction market conference blamed Nevada pressure for move. Regulators say no.

Predict 2026 says it moved to New York from Las Vegas because of “regulatory pressure” from the Nevada Gaming Control Board. A spokesperson for the regulator says otherwise.

“The Nevada Gaming Control Board did not direct, request, or otherwise pressure any licensee or venue to cancel or decline to host any recent or upcoming event or conference, as has been suggested,” a spokesperson told CoinDesk.

Earlier this month, the Prediction Conference, which featured some top traders from Polymarket, took place in Las Vegas – but at a hotel without a casino.

“We had a successful event last month that was attended by several stakeholders and will be hosting a second edition in November again in Las Vegas,” its founder, Ish Milly, told CoinDesk. “Our venue is off the strip and not in a casino.”

A spokesperson for the Nevada gaming regulator also told CoinDesk that “Gaming licensees are expected to adhere to all federal, state, and local statutes and ordinances and prevent any occurrences that may bring discredit to the state or the gaming industry.”

Nevada is one of the states that is locked in a legal battle with the prediction market industry.

In April, a judge in the state ruled that Kalshi’s prediction markets were “indistinguishable” from gambling and ordered an in-state ban on the platform to be extended.

Recently, Michael Selig, chair of the Commodity Futures Trading Commission, told Axios that sports betting and prediction markets are “two separate things.” Selig also said that the CFTC is working with major sports leagues on market surveillance and other market integrity measures.

PayJoy Crosses 20 million Customer Milestone with $3.5billion in Financed Loans

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PayJoy Crosses 20 million Customer Milestone with $3.5billion in Financed Loans





PayJoy, an emerging markets credit provider and Public Benefit Corporation, has officially reached 20 million customers globally. Operating heavily across Latin America, Africa, and Asia, the San Francisco-based company announced that it has successfully financed over $3.5billion in loans since its inception in 2015. The milestone reflects a strong, continued demand for accessible and responsible credit solutions explicitly tailored for underserved, underbanked populations.

Overcoming the unsecured credit barrier

In many emerging markets, traditional unsecured lending is frequently deemed too risky for first-time borrowers, effectively locking millions out of the formal financial system. PayJoy addresses this critical structural gap by utilizing the borrower’s smartphone itself as collateral, a proprietary mechanism designed to significantly lower the overall cost of credit and radically expand financial access.

The firm’s secured-credit technology goes beyond hardware locking, utilizing cutting-edge machine learning, robust data science, and advanced anti-fraud artificial intelligence to underwrite loans. By turning an everyday digital device into a collateralized asset, PayJoy provides immediate point-of-sale financing that traditional lenders simply cannot profitably offer.

Building credit and business performance
Doug Ricket, CEO and Co-Founder of PayJoy

This innovative approach to secured lending has proven highly effective in mitigating risk and improving borrower behavior. According to recent research conducted by the Mexican credit bureau Círculo de Crédito, PayJoy customers are approximately three times less likely to be late—defined as 30 days past due—compared to borrowers utilizing competing lenders. As these customers consistently repay their loans, they actively build their formal credit history, ultimately gaining access to broader financial opportunities such as the PayJoy Card.

Doug Ricket, CEO and co-founder of PayJoy, emphasized the dual impact of the company’s lending model. He stated that reaching the 20 million customer mark clearly demonstrates that financial inclusion and strong business performance can successfully go hand in hand. Ricket explained that the company started by making smartphones more affordable, but is today building a broad credit platform that helps tens of millions of people access new opportunities, build financial resilience, and confidently move forward. To support this growing global mission, the firm now employs over 1,000 people worldwide.


EToro (ETOR) reiterates commitment to crypto despite falling activity in first quarter 2026

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EToro (ETOR) reiterates commitment to crypto despite falling activity in first quarter 2026

EToro (ETOR) doubled down on its commitment to crypto even as digital asset activity weakened in the first quarter and into April.

Revenue from crypto assets dropped 38% from the year-earlier quarter to $2.15 billion, the company said in its first-quarter earnings report released Tuesday. Net trading income from crypto derivatives fell 57% to $33.4 million while overall net income rose 37% to $82.4 million.

The trading platform said the crypto activity decline extended into April, with the total number of crypto trades falling 32% year-over-year and the invested amount per trade dropping 22%. Despite the downturn, CEO Yoni Assia expressed a bullish outlook.

“We do expect later this year to start seeing crypto rising back to, you know, near all-time-highs and that will drive crypto engagement,” Assia told CNBC, adding that the platform’s data suggests that when the markets fall, “retail investors on eToro actually buy the dip.”

The company said it activated its BitLicense to start trading in New York, three years after it was granted, and it completed the $70 million acquisition of crypto wallet provider Zengo, closed April 30.

“The acquisition of Zengo, a leading self-custodial crypto wallet provider, meaningfully advances our strategy of bridging traditional finance with on-chain infrastructure, prediction markets, perpetuals and the broader crypto ecosystem,” Assia said in the report.

Etoro shares fell 0.61% in pre-market trading on Wednesday.

Crypto Bill Advances in Senate With Strong Support: Brian Armstrong

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Crypto Bill Advances in Senate With Strong Support: Brian Armstrong

Coinbase CEO Brian Armstrong says crypto legislation is closer to passage, crediting Senate support and 3.7 million Stand With Crypto advocates.

Coinbase CEO Brian Armstrong announced on May 13 that crypto-focused legislation has advanced significantly in the Senate, describing the bill as strong and beneficial for the American financial system. Armstrong credited the Senate, its staff, and 3.7 million Stand With Crypto advocates for pushing the legislation forward. The bill aims to make the U.S. financial system faster, cheaper, and more accessible while positioning the country to lead in building next-generation financial infrastructure.

Armstrong’s post marks a milestone in the crypto industry’s push for regulatory clarity, a key priority for exchanges and digital asset firms operating in the U.S. The Stand With Crypto initiative, launched by Coinbase, has mobilized grassroots support for pro-crypto legislation. The endorsement from a major crypto exchange executive signals momentum for the bill as it moves through the legislative process.

Sources: Brian Armstrong (Twitter/X)

This article was generated automatically by The Defiant’s AI news system from publicly available sources.

Bitcoin (BTC) price holds below $81,000 with Trump-Xi talks on the horizon

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Bitcoin (BTC) price holds below $81,000 with Trump-Xi talks on the horizon

Bitcoin BTC$79,435.53, a leading indicator of risk sentiment, remains a paragon of stability ahead of President Donald Trump’s arrival in Beijing for talks with his Chinese counterpart, Xi Jinping.

The largest cryptocurrency recently traded 0.5% higher since midnight UTC at $80,900, in line with the gain of the CoinDesk 5 Index (CD5). All five members of the index advanced. The broader CoinDesk 20 Index (CD20) rose 1.3% while the CoinDesk 80 (CD80) was little changed, indicating a particular focus on the largest tokens.

The Trump-Xi talks are likely to cover tariffs, rare earth supply chains, and the Middle East. Any positive outcome, even a symbolic one on paper, could improve overall market sentiment and support risk assets

Ether (ETH) added 1.3% since midnight to $2,300 after the Ethereum Foundation published “Clear Signing,” a new standard designed to stop users from unknowingly approving malicious crypto transactions.

Among altcoins, Injective blockchain’s INJ token surged as much as 24%, the most since Feb. 19, alongside 5% gains in Polkadot’s DOT and the TRUMP memecoin.

Derivatives Positioning

  • BNB futures open interest (OI) rose to 6.15 million tokens, up over 5% in 24 hours and the highest since April 3. The move points to fresh capital inflows.
  • ZEC’s OI growth is the biggest among the major cryptocurrencies. Its 24-hour cumulative volume delta (CVD) is also positive and the highest among majors.
  • That’s also a sign of new money flowing into the market, with traders buying via market orders rather than passive limit orders, signaling strong bullish sentiment.
  • Still, the BNB market doesn’t look overheated. Funding rates remain below an annualized 10%, a sign of healthy bullish conditions without excessive leverage buildup. Its market capitalization has increased to $92.2 billion, the highest since March 18, reflecting renewed investor interest.
  • OI in DOGE has increased 5.75% to 15.38 billion tokens, with its price chart pointing to a bullish crossover of the widely tracked 50- and 100-day simple moving averages. The token traded 4% higher at 11 cents as of writing. The other key metrics display a BNB-like bullish setup, suggesting improving speculative demand.
  • Another standout is ether (ETH), the second-largest token by market value. OI in ether futures topped 15 million ETH, nearing last July’s record 15.30 million.
  • The increasing demand for leverage, coupled with the relentless tightening of Bollinger Bands, suggests scope for a volatility boom.
  • OI in bitcoin has held largely unchanged near 740K BTC in the past 24 hours, indicating relatively stable positioning in bitcoin compared to altcoins.
  • Broadly speaking, most tokens, except BNB, XRP and TRX, have negative 24-hour CVDs, meaning the altcoin market is dominated by sellers shorting via market orders rather than passive limit orders. That signals lingering caution beneath the broader market strength.
  • While macro risks pile up in the form of high inflation and hardening bond yields across the advanced world, the market remains calm. That’s evident from the continued decline in bitcoin’s and ether’s 30-day implied volatility indices. Ether’s EVIV index hit fresh year-to-date lows below 55%, while BVIV remains pinned near 40%, levels last seen in late January.
  • The subdued volatility environment suggests traders are not yet pricing in major near-term turbulence.
  • In the options market on Deribit, higher-strike call options continue to dominate volume rankings. Calls represent a bullish bet on the underlying BTC.
  • As for block flows, put spreads and straddles emerged as preferred strategies over the past 24 hours, indicating traders are positioning for both downside protection and a potential volatility expansion.

Token Talk

  • The DeFi United initiative seems to be restoring confidence in decentralized finance ecosystem, with the tokens of Aave AAVE$98.96, Arbitrum (ARB) and Lido (LDO) recovering over the past week.
  • AAVE rose 3%, ARB gained 16% and LDO added 11% over seven days. ARB’s move stands out after the Kelp DAO exploit, which hit Arbitrum lending markets and left wrapped ether stranded across chains.
  • The April 18 attack released unbacked rsETH through Kelp’s LayerZero OFT bridge. Aave’s incident report attributed the path to a forged LayerZero packet and a single-DVN configuration, while LayerZero linked the attack to North Korea’s Lazarus Group. It sparked a widespread recovery effort.
  • Phase 1 of that recovery is now complete. The attacker’s rsETH on Arbitrum was burned, removing the unbacked supply, and Aave V3 positions tied to the exploiter were forcibly liquidated.
  • The 117,132 rsETH, worth roughly $278 million, is set to be progressively refilled into the LayerZero bridge adapter over the next two weeks. Withdrawals are expected to resume within 24 hours of the first tranche.
  • A separate legal process is ongoing for 30,765 ETH, roughly $71 million, frozen by Arbitrum’s Security Council. A U.S. federal court cleared an Arbitrum governance vote to move the funds to an Aave-controlled wallet while keeping the recovered ETH under court restrictions.

Anthropic, OpenAI tokens plunge as AI firms say pre-IPO share transfers are invalid

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Anthropic, OpenAI tokens plunge as AI firms say pre-IPO share transfers are invalid

The Solana-based tokens marketed as a way to gain exposure to Anthropic and OpenAI before they go public got an unwelcome reality check this week.

The two companies said the transfer of privately held shares to the special purpose vehicles (SPVs) that back the tokens is invalid because any such move requires approval by the corporate board.

The tokens slumped. Anthropic PreStocks (ANTHROPIC), issued by Solana-based platform PreStocks to represent Anthropic shares, dropped 34% in seven days, while OpenAI PreStocks fell 39%, CoinGecko data show.

PreStocks uses SPVs, legal entities set up specifically to hold something on behalf of investors, to hold the shares, and issues tokens on Solana that represent indirect economic exposure to those shares.

“We do not permit special purpose vehicles to acquire Anthropic stock and any transfer of shares to an SPV are void under our transfer restrictions,” Anthropic said in an updated investor warning page.

Any third party claiming to sell its shares through “direct sales, forward contracts, tokenized securities, or other mechanisms” is “likely either engaged in fraud or offering an investment that may have no value due to our transfer restrictions,” the company said.

OpenAI issued a similar warning, saying unauthorized transactions may violate U.S. securities laws and could result in the invalidation of the underlying equity. Both companies named several intermediaries. Anthropic listed Open Door Partners, Hiive and Forge as unauthorized to buy or sell its shares.

While PreStocks tokens claim 1:1 backing through SPVs, neither the platform nor any third-party auditor has published the attestation reports the company promised at launch.

Liquidity is a concern as well. Data from PreStocks shows just over $333,000 in stablecoins and $18,000 in solana (SOL) in Anthropic liquidity as of Wednesday, meaning early buyers sitting on big profits might not be able to fully cash out. This exposes the gap between the implied valuations on the platform and what the underlying SPVs can actually deliver.

The dashboard also shows an implied Anthropic valuation above $1.3 trillion against the platform holding roughly $23 million in total assets, a gap that gave the companies the structural opening to push back.

PreStocks debuted in August 2025 with backing from Republic Capital and is led by CEO Xavier Ekkel. The platform is unavailable to residents of the U.S., Singapore, the European Union, and certain sanctioned jurisdictions, and requires know-your-customer processes for minting and redemptions. Partnerships at launch included Jupiter and Meteora, both decentralized exchanges on Solana.

It’s time for clarity for America’s digital asset markets

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It’s time for clarity for America’s digital asset markets

Americans are sending Washington a clear message: the United States should lead the future of digital finance, not fall behind while other countries write the rules. A new national HarrisX survey of registered voters found that 70% say the U.S. should have already passed crypto legislation, 62% say it is important for America to set the global rules for digital finance, and 60% prefer clear federal legislation over case-by-case enforcement.

That makes the Senate Banking Committee’s decision to mark up the Clarity Act a critical next step toward giving the United States a workable framework for digital asset markets.

For years, Washington treated digital assets as a moving target. The technology evolved quickly, the market was volatile, and policymakers were still sorting out the risks and opportunities. That is no longer the case. Lawmakers, regulators and staff have now spent years studying these markets, engaging stakeholders and wrestling with difficult questions around consumer protection, market integrity, custody, trading and disclosure.

The industry has changed as well. A sector that once spoke in scattered, often conflicting voices has become more disciplined in its engagement with policymakers. That matters because durable legislation comes from sustained engagement, practical proposals and a willingness to work through tradeoffs.

The House made that much clear when it passed the CLARITY Act with strong bipartisan support. That vote did not resolve every outstanding question, but it established something important: digital asset market structure belongs squarely on Congress’s agenda. The Senate now has a chance to build on that foundation.

It is doing so with a stronger policy foundation than it had even a year ago. The SEC and the CFTC have taken steps to improve coordination and clarify how existing law applies to parts of the market. Those efforts are important, but they also underscore the limits of agency action. Only Congress can provide durable rules on regulatory boundaries, registration requirements, market oversight and the treatment of digital assets that do not fit neatly within older frameworks.

Meanwhile, the market has continued to move ahead. Following the signing of the GENIUS Act, stablecoins have grown rapidly and are becoming more connected to mainstream payments infrastructure. Tokenization is moving from concept to institutional experimentation. Major financial firms are testing blockchain-based systems for settlement and other market functions. Public blockchain networks are increasingly part of that activity.

Some of that development is taking place on networks like Solana. PayPal expanded PYUSD to Solana to support faster, lower-cost payment use cases. Visa has included Solana in its stablecoin settlement work. And SoFi, which launched SoFiUSD in December, has said parts of its broader digital asset banking platform are expected to leverage Solana alongside other networks. These examples show how digital asset markets are becoming more connected to real financial activity.

It’s clear: Digital assets are the next generation of financial infrastructure.

Congress should legislate with that reality in mind. A market structure bill has to do difficult, important work. It has to draw workable lines between regulators. It has to establish clear rules for market participants while ensuring robust consumer protections. And it has to account for the fact that blockchain networks and digital asset markets do not map neatly onto categories built for earlier generations of financial products.

That is precisely why markup matters. It requires lawmakers to engage real legislative text in public. Members debate substance, offer amendments, narrow disagreements and test whether a proposal is ready to move. On legislation this consequential, that process is where serious policymaking happens.

For digital asset legislation to last, it must be bipartisan. A framework written on a party-line basis will be fragile from the start. Rules that shape markets endure when both parties help write them. The good news is that more lawmakers on both sides of the aisle now understand the stakes. They understand the need for consumer protection, the importance of market integrity and the cost of leaving a growing sector trapped in legal uncertainty.

The United States has deep capital markets, strong institutions, world-class entrepreneurs and a long history of leading in financial innovation. It should bring those strengths to digital assets as well. Clear rules will protect consumers, strengthen markets and give responsible builders the confidence to operate and invest in the United States.

Digital asset markets will continue to grow. Capital will move. Infrastructure will be built. The question is whether the United States will shape that future with clear rules, credible oversight and the confidence to lead.

The Senate can help answer that question now by moving this legislation forward and closer to the President’s desk. It’s critical that it does.

Crypto security firm Ledger pauses IPO plans amid volatile crypto markets.

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Crypto security firm Ledger pauses IPO plans amid volatile crypto markets.

Crypto wallet provider Ledger put its plans to go public in the U.S. on hold due to difficult market conditions, according to two people with knowledge of the matter.

Ledger has not filed any draft S-1 registration statement with the Securities and Exchange Commission (SEC), one of the people said. A confidential filing is typically the first formal step in the IPO process.

The French cryptocurrency security firm has a number of options, and could decide to raise capital privately, said the person, who spoke on condition of anonymity because the matter is not public.

In January, reports emerged that Ledger had hired U.S. investment banks for a potential IPO valued at around $4 billion. Goldman Sachs (GS), Jefferies (JEF) and Barclays (BARC) were said to be advising on the offering, which could have come as early as this year.

A Ledger spokesperson declined to comment.

Ledger is best known for its hardware wallets that let people securely store cryptocurrencies offline. Its core business is protecting users’ private keys, the cryptographic credentials that control access to digital assets like bitcoin (BTC and ether (ETH).

After a wave of crypto listings in 2025, several digital-asset firms began rethinking their IPO timelines as weaker token prices, lower trading volumes and volatile equity markets weighed on investor appetite.

Kraken, one of the largest U.S. crypto exchanges, paused its multibillion-dollar IPO plans earlier this year despite having confidentially filed with the SEC in late 2025.

BitGo (BTGO), the only crypto-native company to go public in 2026, offered an early test of investor appetite for digital asset listings. It raised about $213 million in its January IPO, pricing shares above the marketed range at $18 and briefly surging more than 20% in its New York Stock Exchange (NYSE) debut.

The momentum proved short-lived. After an initial rally, BitGo shares retreated below their IPO price, underscoring the volatility and uneven investor sentiment facing crypto firms seeking to tap public markets.

The shares are currently trading about 36% below their IPO price.

In March, Ledger appointed former Circle Internet (CRCL) executive John Andrews as chief financial officer and opened an office in New York City as part of a broader expansion of its U.S. operations.

Andrews, who previously led capital markets and investor relations at Circle, joined the crypto security firm as demand from banks, asset managers and stablecoin issuers for digital asset infrastructure continues to grow.

The company said the New York office was part of a multimillion-dollar investment in its U.S. footprint and would serve as a hub for Ledger Enterprise, its institutional infrastructure platform. Ledger also said the expansion would create dozens of new jobs across enterprise and marketing functions.

Read more: Kraken parent Payward seeks fresh funding at $20 billion valuation ahead of planned IPO

Senate Crypto Bill Faces 100+ Amendments Ahead Of Markup

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Senate Crypto Bill Faces 100+ Amendments Ahead Of Markup

Senate Banking Committee members have filed more than 100 proposed amendments to the Digital Asset Market Clarity Act, according to Politico reporting. The panel is set to convene on Thursday for a long-awaited markup vote that crypto and industry leaders say could reshape digital asset regulation in the United States.

The committee scheduled its executive session for 10:30 a.m. on May 14 at Room 538 of the Dirksen Senate Office Building in Washington, D.C., where lawmakers will debate the amendments and vote on whether to send the bill to the full Senate floor. 

The flood of filings follows the release of an updated 309-page draft of the bill earlier this week, expanded from the 278-page version proposed in January.

Senator Elizabeth Warren leads the opposition push, submitting more than 40 amendments alone, with the bulk of proposed changes coming from Democratic members of the Banking Committee. 

The wave of filings mirrors the January markup session, which drew 137 amendments before that session was cancelled, signaling that resistance to the bill remains strong even as its supporters push for a final vote.

At the center of the dispute is how the bill handles stablecoin yield products — crypto that offer returns to holders. Banking groups argue such crypto products threaten traditional deposit bases; crypto firms counter that reward programs support liquidity and customer activity without functioning as bank deposits.

The American Bankers Association has sent more than 8,000 letters to Senate offices since last Friday, targeting the stablecoin yield compromise brokered by Senators Thom Tillis and Angela Alsobrooks. That compromise, reached after months of negotiations, prohibits stablecoin issuers from paying interest or yield to users who hold tokens passively, while preserving exceptions for rewards tied to genuine platform transactions and payment activity.

Senators Jack Reed and Tina Smith filed amendments to tighten those standards further, targeting products that deliver returns in ways that resemble traditional interest-bearing deposit accounts. 

The banking lobby maintains the existing compromise language still leaves room for stablecoin platforms to replicate high-yield savings products without meeting bank-level regulatory requirements.

Senate ethics provisions and developer protections

Senator Chris Van Hollen introduced a proposal that would prohibit senior government officials and their families from owning or promoting crypto-related businesses — a demand Democrats say is non-negotiable given President Trump’s close ties to the crypto industry. 

Republican sponsors have resisted the provision, with some warning that ethics riders could fracture the coalition needed for the bill to advance.

A recent draft of the bill already included language shielding noncustodial developers from being classified as money transmitting businesses, with that protection extended retroactively to cover past conduct.

The broader stakes for the crypto industry

The CLARITY Act, formally H.R. 3633, passed the House on July 17, 2025, by a 294–134 bipartisan vote before stalling in the Senate through two cancelled markup sessions and protracted stablecoin negotiations.

At its core, the bill would draw a clear jurisdictional line between the Securities and Exchange Commission and the Commodity Futures Trading Commission, ending years of enforcement-based policymaking that left crypto firms operating under legal ambiguity.

Prediction markets have priced the odds of the bill becoming law in 2026 roughly at 60%, the highest level in months, with the White House setting a July 4 target for a presidential signature.

Committee Chairman Tim Scott had originally targeted a Senate floor vote for September 2025, then pushed that deadline to end-of-year, and most recently said he hoped to reach a full Senate vote by June or July 2026. 

Thursday’s markup is the first formal committee vote on the bill in the Senate, and its outcome will determine whether that timeline is still within reach.

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