Japan is moving closer to approving its first Bitcoin ETF, signaling progress toward a regulated spot product tied to BTC. The development reflects ongoing policy discussions on crypto investment vehicles and may expand access for local investors if regulators move forward with authorization.

EU member state envoys have agreed on a 21st sanctions package against Russia, Reuters reported. The measures impose full sanctions on 94 Russian financial institutions and the Moscow Exchange, broaden transaction bans to additional crypto platforms, and for the first time target vessels linked to Russia's "shadow fleet". The package also locks in the Russian oil price cap at $44.10 per barrel for the next 12 months.

Negotiations over the CLARITY Act's ethics language have stalled as the White House and Senate Democrats clash on two core issues. Democrats want state Attorneys General (AGs) to help enforce the bill's ethics provisions. A White House-backed proposal instead would give the Department of Justice (DoJ) sole enforcement authority in ethics-related matters. A second sticking point is Democrats' push to hold U.S. President Donald Trump accountable for past crypto activity. Trump reportedly made more than $1.4B in crypto profits in 2025, while holders of his memecoins and tokens suffered losses. The White House has rejected that approach, with Chief Crypto Advisor Patrick Witt calling it "blatantly unconstitutional" in a statement. Criticism of the proposed ethics framework has also come from Democratic-aligned voices. Former SEC Chief of Staff Amanda Fischer described the deal as "laughable," arguing it leaves significant gaps: it reportedly gives the president a one-year window to place crypto ventures into a blind trust, does not prohibit interest income, and caps penalties for ethics violations at $500K. Fischer said it "doesn't change much at all" about Trump's existing crypto dealings, adds no divestment requirement, and would rely on Trump's personal attorney Todd Blanche for enforcement. She also pointed to an amnesty provision taking effect once a new president is inaugurated. The proposal bars the president, administration officials, and members of Congress from certain activities but does not cover their children. Senate Democrats including Angela Alsobrooks, Ruben Gallego, and five others have opposed the current ethics language along with other CLARITY Act provisions. In a joint critique, they said the Republican text "falls short" and called for stronger rules around ethics for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity. Alsobrooks and Gallego were the only Democrats to back the bill during committee markup. With Republicans needing roughly 7–10 Democrats to reach the 60-vote threshold on the Senate floor, Democratic holdouts could prove decisive. The legislative uncertainty has coincided with a modest pullback in crypto markets. Bitcoin (BTC) eased to about $65.7K after climbing to nearly $67K earlier in the week, highlighting how closely near-term sentiment is tied to progress on the bill. Key Takeaways • Senate Democrats are rejecting the White House-backed ethics deal and pressing for broader changes to the CLARITY Act. • The White House appears unwilling to accept Democrats' demands on ethics enforcement and accountability provisions.

Kazakhstan has approved a new set of strategic rules for digital mining, aimed at helping finance the country's national crypto reserve.

UK lawmakers have opened an inquiry into whether banks and payment providers are placing disproportionate barriers on crypto-related firms and users, including blocked transfers, transaction limits and account closures. The Crypto and Digital Assets All-Party Parliamentary Group (APPG) began the review on July 21, 2026, as the UK prepares to roll out a broader regulatory framework for crypto. The group is seeking evidence from banks, payment providers, fintechs, crypto companies, academics and consumer bodies. Written submissions are open for six weeks, with a deadline of Aug. 31, 2026. According to the APPG, some businesses say they have struggled to open or keep bank accounts. Others report difficulty accessing merchant services, payment rails, insurance and professional support. Lawmakers are also examining restrictions on crypto payments, including blocked transfers to certain platforms and limits on customer transactions, and how banks apply those controls and assess risk. The inquiry will consider impacts on consumers, investment, competition, innovation and day-to-day business operations. Lord Vaizey of Didcot said concerns about banking access have been raised repeatedly. He co-chairs the APPG with Labour MP Gurinder Singh Josan. The call for evidence asks for practical examples with supporting documentation, as well as views on legal, regulatory, commercial and operational factors driving restricted access. The UK Parliament describes APPGs as informal, cross-party groups with no official parliamentary status. They cannot pass legislation or issue binding regulatory instructions, but their recommendations can influence policy. Government departments, regulators and parliamentary committees may take the findings into account in future work. The APPG said it will assess submissions before publishing a report, but has not set a publication date. The effort follows a 2022–2023 APPG inquiry into UK crypto policy, which highlighted banking access as a major hurdle for digital asset businesses. This time, the review aims to broaden the evidence base beyond the crypto sector. Banks and payment providers are expected to address compliance controls, customer risk assessments and transaction policies, while noting that account closures raise separate legal and commercial considerations. UK providers remain responsible for risk management under anti-money laundering and fraud rules. The Financial Conduct Authority (FCA) reviewed payment-account access and closures in 2023, including issues raised by cryptoasset businesses and payment companies. The inquiry also comes after the government put a formal regulatory regime in place for certain crypto activities. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 became law in February, with HM Treasury saying the framework will take effect in October 2027. Once implemented, firms carrying out covered activities will need FCA authorization. That timeline, the APPG argues, makes it important to address banking access before authorization requirements begin. Even regulated firms need accounts to receive funds, pay employees and settle suppliers. Lawmakers are also asking for international examples where jurisdictions have improved access while keeping safeguards. Banks may argue transaction controls protect customers from scams and unauthorized transfers. Crypto firms may counter that broad restrictions can treat licensed and unlicensed businesses alike. The evidence will inform whether the APPG recommends clearer guidance, better communication or changes to banking practices. Any outcome would still require action by government, regulators or financial institutions. The banking review sits alongside a wider UK push on digital finance. Authorities are advancing rules for stablecoins, tokenized payments and digital securities. In June 2026, the Bank of England and the FCA set out a joint approach for stablecoins: the FCA would supervise qualifying UK-issued stablecoins and their use in retail payments, while the Bank of England would share oversight when HM Treasury designates an issuer as systemic. HM Treasury has also said it supports a combined framework spanning traditional and tokenized payment services, including stablecoins and tokenized deposits. As regulation expands, demand for formal banking relationships could rise because authorized firms depend on banking infrastructure for customer funds, payroll, tax and operating costs. The inquiry will not compel banks to provide services to specific companies, but its findings could influence how institutions document and apply risk-based decisions. Stakeholders have until Aug. 31, 2026, to submit evidence, after which the APPG will review responses and publish recommendations without a confirmed reporting date. This article is for informational purposes only and does not constitute legal, regulatory or financial advice.

Mirae Asset Group, South Korea's $1 trillion financial conglomerate, has acquired a 97% stake in Korbit. The transaction marks the first time a traditional Korean financial group has taken a controlling interest in a domestic cryptocurrency exchange.

The U.S. Securities and Exchange Commission is broadening its oversight from crypto tokens to the mechanisms that put them to work, with DeFi vaults and on-chain lending protocols now drawing closer attention. SEC Commissioner Hester M. Peirce said shifting financial activity on-chain does not sidestep federal securities laws. In her view, the regulatory outcome turns on how a vault is built and run, including how it allocates assets, generates and manages yield, and distributes decision-making authority. Peirce also pointed to lending protocols that set interest rates, loan-to-value ratios, and liquidation thresholds as potential candidates for treatment under existing securities or investment adviser frameworks. She stressed that regulators should not apply a one-size-fits-all label. Each structure requires a fact-specific review before determining which rules apply. The implication is that enforcement and supervision may increasingly examine protocol design and governance, not only the underlying crypto asset. Bitcoin-backed lending gains momentum Rising regulatory scrutiny is nudging Bitcoin-backed lenders toward products and custody setups positioned as safer and more protective. Demand is being driven by long-term Bitcoin (BTC) holders seeking fiat liquidity without selling. Ledn says it has about $714 million in outstanding BTC-backed loans, collateralized by 19,685 BTC. The company reports it has processed more than $10 billion in loans since 2018 and separates customer collateral from other operating activities. Strike is targeting a different risk set. It says its "volatility-proof" loans remove price-triggered liquidation, and borrowers can repay at any time without missing a payment. Unchained is emphasizing custody transparency through multisig arrangements that provide borrowers with verifiable on-chain control. These structural differences continue to shape activity across crypto credit markets. Centralized BTC-backed lenders remain a draw for long-term holders seeking fiat without selling BTC. In DeFi, lending markets are supporting a broader range of collateral, led by Bitcoin, Ethereum (ETH), and stablecoins. As utilization rates and borrow APRs move with market conditions, capital is rotating more actively across DeFi, supporting higher trading activity. By contrast, CeFi borrowers tend to prioritize capital preservation, underscoring the market's increasing specialization. Summary DeFi vaults and on-chain lending are facing tighter SEC scrutiny as protocol design becomes a bigger driver of regulatory treatment. Crypto lending is evolving toward more specialized models that balance compliance, capital efficiency, and custody transparency.

Senate negotiations over the CLARITY Act are dragging on even after a consolidated draft text was released, as talks continue around key ethics provisions and measures targeting illicit finance, according to Sen. Cynthia Lummis. With the Senate's August 7 recess nearing, the timing of a floor vote remains unclear. Democrats have signaled that stronger ethics language is central to securing their support, leaving the bill's path forward uncertain. The legislation is designed to spell out a U.S. regulatory framework for digital assets and would introduce new requirements for exchanges and brokers, including compliance expectations tied to anti-money laundering standards. The bill still needs a full Senate vote to advance. Prediction markets have begun to price in a higher risk of delay. Recent pricing indicates a reduced likelihood the CLARITY Act will be signed into law in 2026. The market-implied probability of passage by December 31 is currently 34.5% YES, down from 46%, pointing to growing concerns about the legislative calendar. Market focus is now on whether negotiators can finalize the remaining language in time to fit a floor vote into the narrow window before recess. Key Takeaways - Market pricing suggests the chances of the CLARITY Act being signed into law in 2026 have fallen as negotiations over critical provisions continue. - The probability of passage has declined from 46% to 34.5% YES, reflecting anxiety over timing. - The August 7 recess increases urgency, leaving limited runway for a floor vote. What to Watch Investors and observers are monitoring updates from Senate Majority Leader Chuck Schumer and Sen. Cynthia Lummis on the state of negotiations. Any indication that a floor vote has been scheduled could shift sentiment. Signals from the Senate Banking Committee and comments from the White House are also expected to shape expectations about whether the bill can move before the recess. Get live predictionmarket analysis, powered by Vera. Sign up for Vera.

Senate Majority Leader John Thune said Wednesday he intends to bring the CLARITY Act to the Senate floor next week and is prepared to move ahead even if Democrats do not join the effort. Republicans released updated legislative text that adds an ethics provision backed by the White House. The measure would overhaul federal rules governing crypto trading across the U.S. It remains unclear whether the bill will attract bipartisan backing ahead of next week's expected vote. Source: Politico