📢** Sponsor | **💡
**Good Morning. **
Welcome to our 112th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!
In Today’s Edition:
**Headline:Binance Hack Revives Clarity Act PushGlobal Legal Roundup****Case Study:**CFTC Takes Utah to Court
You read and share. We listen and improve. Send us feedback at marco@launchy.app.
HEADLINE
**State of play: **Washington is using the Binance hack to restart the stalled Clarity Act, even though issuers froze about $3B without it and the bill has been stuck in the Senate over Trump’s own crypto wealth.
Trump said he is looking into the hack and called crypto “a little bit dangerous,” while TRM Labs attributed the attack to TraderTraitor, a North Korean hacking unit.
CFTC Chair Michael Selig said the hack proves the case for the agency’s Oct 5 framework, blaming offshore exchanges that operate outside US safeguards.
Sen. Cynthia Lummis said the bill would let firms freeze funds the moment law enforcement calls; Better Markets says a court order would still be needed, and Solana Policy Institute says it would not.
The Digital Chamber urged Congress to pass a bill before it adjourns that would give the CFTC authority over exchanges and keep customer funds separate from company funds in bankruptcy.
Rep. Tom Timmons raised national security concerns, warning that rogue regimes are using stolen digital assets to fund nuclear and missile programs.
**What’s Next: **Pressure is building to pass the Clarity Act before Congress adjourns, though the Senate standoff over Trump’s crypto wealth remains unresolved.
**Why it Matters: **The biggest hack in crypto history has handed regulators and lobbyists a concrete case for federal oversight of exchanges.
**Our Take: **Binance.com is an offshore exchange, so a US law would not have covered it. The hack makes a better argument for bringing exchanges onshore than for the Clarity Act itself.
GLOBAL LEGAL ROUNDUP
🇺🇸
Ripplegainsfinal OCC approval to launch national trust bank.🇺🇸
CFTCsuesUtah as battle over prediction market regulation intensifies🇺🇸
OCCcallson community banks to enter the stablecoin payments market.🇺🇸
Cryptobracesfor potential shift in congressional oversight after midterms.🇺🇸
Trumpsaysthey’re looking into Binance hack as calls grow for crypto rules.🇨🇦
Canadaopensconsultation on draft stablecoin rules, maintains ban on yields.
🇬🇧
HTXexitsthe UK after settling with the FCA.🇫🇷
French Senateadoptsbill for automatic sharing of crypto tax data.
🇰🇷
South Koreaweighsfourth delay of crypto gains tax, eyes 2029 start.🇹🇭
Thai Supreme Courtrulesbitcoin is property after thief challenges conviction.
CASE STUDY
State of play: The CFTC is defending Kalshi against the states while investigating Polymarket, a split that shows the agency fighting less for prediction markets as a whole than for its exclusive jurisdiction and for keeping US activity onshore.
The lawsuit names Utah and its Attorney General Derek Brown, coming after the state sued Kalshi and called it a “public nuisance” that breaks gambling laws on sports, elections and politics.
Utah is the CFTC’s tenth state lawsuit, following Arizona, Connecticut, Illinois, New York, Wisconsin, Minnesota, Rhode Island, New Mexico and Kentucky.
Chair Michael Selig says Congress gave the CFTC sole oversight of commodity derivatives, and he is pressing that claim through rulemaking as well as litigation.
States argue sports betting falls under their authority and accuse the platforms of operating illegally and dodging taxes, a dispute that could reach the Supreme Court.
Reuters reports the CFTC is investigating whether Polymarket broke its 2022 settlement, under which it agreed to keep US users off its offshore platform.
Our Take: With ten lawsuits filed, the CFTC is acting more like Kalshi’s defense counsel than its regulator. If the Supreme Court sides with the states, the agency will have spent its credibility on a fight it lost.
Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇
If you enjoy reading this issue, please consider subscribing. It takes 1 minute of your time but it would mean the world to us 🙇
Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
