WASHINGTON — The U.S. Senate’s Digital Asset Market Clarity Act has yet to show fresh momentum on the floor, but the crypto industry is pressing its case as the window to act narrows. The Blockchain Association hosted an online event Thursday featuring lawmakers involved in the negotiations, focusing heavily on winning over law enforcement officials who have been skeptical of the bill. During months of talks, Democratic lawmakers have repeatedly zeroed in on provisions aimed at curbing cryptocurrency use in illicit finance. Several Democrats who helped shape the legislation have not fully committed their support, and some law enforcement organizations have been reluctant to endorse the measure. Sen. Cynthia Lummis, a leading Republican negotiator who chairs the Senate Banking Committee’s digital assets subcommittee, called the Banking Committee’s latest version "the most highly negotiated bipartisan — or nonpartisan — sophisticated piece" of a U.S. digital-asset regulatory framework to reach the public. She argued the bill would tighten oversight, saying the "status quo" leaves digital asset exchanges facing lower Bank Secrecy Act, anti-money-laundering, and sanctions obligations than they would if the Clarity Act becomes law. Supporters are aiming for the 60 votes needed to clear the Senate. Lummis warned that the timeline is tight, saying that if Congress fails to act this year, the next realistic chance could slip to around 2030. The Senate has fewer than eight weeks of floor time remaining before a summer break that will effectively open midterm election season. This week, the Blockchain Association circulated a letter backing the bill signed by 160 former law enforcement officials and arranged meetings between some of those signatories and Senate lawmakers. The Revolving Door Project, which scrutinizes ties between government and corporate interests, accused the association of trying to "hoodwink senators," noting that many signers now work for crypto companies. The group also said the association brushed aside "honest concerns" raised in early May by the National Sheriffs’ Association and other law enforcement groups. "The cryptocurrency industry is so assured of its complete control over the U.S. Senate that it believes this farce is sufficient," said Jeff Hauser, the Revolving Door Project’s executive director, arguing that senators had been warned about flaws in the bill by "actual law enforcement officials." Patrick Witt, the White House’s chief adviser on crypto, pushed back during Thursday’s event, saying the legislation would impose "real regulatory constraints" on businesses and actors currently operating under uncertainty. He urged hesitant law enforcement voices to support the measure: "You should be the biggest cheerleaders for this bill, because this is really what is missing." Backers are trying to balance tougher safeguards against illicit finance with assurances that the bill would not criminalize software development. Lummis said the proposal would allow prosecutions of bad actors who publish code with the specific intent — "and that's the key" — that it be used to facilitate money laundering. Read more: Amid the Clarity Act fanfare is some worry over how a last-minute deal may punch DeFi

President Donald Trump said he plans to nominate Todd Blanche to serve as the permanent U.S. attorney general, a post that requires Senate confirmation. Blanche has led the Justice Department on an acting basis since April 2026, after Pam Bondi was dismissed. Blanche's rise through DOJ ranks has been steady. The Senate confirmed him as deputy attorney general on March 5, 2025, in a 52–46 vote. He quickly moved to reshape policy. In April 2025, Blanche circulated a memo titled "Ending Regulation By Prosecution," declaring that the Justice Department "is not a digital assets regulator." The memo ordered the dissolution of the National Cryptocurrency Enforcement Team, which had spearheaded federal crypto prosecutions. It also shifted the Market Integrity and Major Frauds Unit away from cryptocurrency matters, steering enforcement toward traditional categories such as fraud involving individual victims and terrorism financing. CoinDesk included Blanche in its "Most Influential" list in December 2025, citing his enforcement-policy overhaul. Financial disclosures at the time of his deputy AG appointment showed he held bitcoin worth between $100,000 and $250,000. Blanche committed to divesting and completed the process by June 2025 through a mix of gifts and sales. He issued the April 2025 memo while still holding crypto and did not fully divest until two months later. That timing could draw scrutiny during confirmation hearings, whether as a substantive conflict or an optics issue. Trump removed Bondi in April 2026 and named Blanche acting attorney general. Before joining the administration, Blanche worked as a defense attorney and represented Trump in the former president's New York criminal case. Blanche's April 2025 directive drew a clear boundary: DOJ would target fraud and terrorist financing involving digital assets while leaving broader regulatory questions to agencies such as the SEC and CFTC. The disbandment of the National Cryptocurrency Enforcement Team is expected to reduce dedicated federal resources for crypto-specific crime.

The U.S. Securities and Exchange Commission is trying to hold on to $24 million paid by bankrupt crypto exchange Bittrex, even as the agency has recently eased its approach toward parts of the industry. Bittrex is asking a court to throw out its 2023 settlement, arguing the SEC has since effectively reversed course by dropping cases against Coinbase and other firms and signaling that most tokens are not securities. On that basis, Bittrex says it would be unfair for the SEC to retain the $24 million penalty. In a new filing, the SEC rejected the request, saying Bittrex has not shown that circumstances have changed enough to unwind a final judgment. The agency also said the settlement's injunctions barring future securities-law violations remain in force. The dispute carries wider implications: if Bittrex succeeds, other companies that paid penalties under the prior enforcement posture could seek to recover their own settlements.

A group of six U.S. senators, led by Cynthia Lummis (@SenLummis) and Dan Sullivan (@SenDanSullivan), is urging regulators to revisit bank capital treatment for digital assets, arguing current standards effectively bar banks from touching Bitcoin. In a letter to the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), the lawmakers called for a new capital framework. They singled out the Basel rule that assigns Bitcoin a 1,250% risk weight, which can require banks to hold more than $1 of capital for every $1 of bitcoin exposure. The senators described the approach as a blunt penalty designed for toxic securities rather than a liquid, transparent asset. They noted that the Fed's top bank supervision official has also criticized the Basel weights as unrealistic, and that the Basel Committee is already reviewing the methodology.

The U.S. Department of Justice said it has frozen more than $3.8 million in cryptocurrency connected to fraud as part of a coordinated effort dubbed "Disruption Week," carried out with technology companies, crypto firms, and U.S. and international law enforcement agencies. According to CoinDesk, participating companies included Coinbase, Meta, SpaceX, Apple, Google, and Microsoft. The operation focused on organized scam networks operating in Southeast Asia. Authorities said multiple platforms disrupted the pathways used to run the schemes. The DOJ said the effort was designed to do more than follow the money. Companies first took voluntary steps to cut off criminals' access to social media, email, and online accounts used to reach victims. After that, based on information held by the government, the relevant platforms helped freeze the associated funds. U.S. officials said the fraud relies heavily on U.S. internet platforms and communications infrastructure, with everyday consumers among the victims. Victims were often induced to transfer money under the guise of "crypto investments." Jeanine Pirro, U.S. Attorney for the District of Columbia, said online and crypto investment scams are draining people's savings and disproportionately targeting vulnerable groups. The DOJ said the action centers on Southeast Asian transnational scam syndicates, adding that some networks have ties to organized crime in China. U.S. authorities said they will not allow these groups to continue exploiting American internet infrastructure to run fraud, and they will not accept U.S. businesses remaining passive when risks are known. FBI Director Kash Patel said one of the most effective ways to combat these illegal operations is sustained cooperation between law enforcement and the private sector. The operation, involving both U.S. agencies and international counterparts, is intended to reduce new victimization and shrink the online footprint of scam networks. Crypto-scam losses neared $11.4 billion in 2025 The DOJ's announcement comes as crypto-related fraud continues to climb. A prior FBI Internet Crime Report said U.S. individuals lost nearly $11.4 billion to cryptocurrency scams in 2025, up 22% from the prior year, making it one of the costliest categories of cybercrime in the country. The DOJ's latest statement signals a shift in enforcement from primarily post-incident asset recovery toward earlier disruption through platform collaboration, including account suspensions, shutting down distribution channels, and freezing on-chain funds. For crypto platforms, it points to rising expectations to support fraud prevention and fund-tracing efforts.

Meta, Microsoft, Coinbase and Starlink participated in a Department of Justice-led operation targeting scam networks in Southeast Asia. Authorities reported 63 arrests, the removal of 1.4 million accounts, and the freezing of $3 million in crypto assets.

U.S. crypto industry lobbying around Capitol Hill is ramping up as Congress debates market-structure legislation. On June 3, a new political action committee, Defend Developers PAC (DDPAC), announced it has formed to press for clearer legal protections for U.S. crypto developers and to push developer-focused language into congressional bills. According to CoinDesk, the PAC was launched by a coalition of crypto policy and industry groups. Founding members include the DeFi Education Fund, Orca Creative, Solana Policy Center and Uniswap Labs. Organizers said DDPAC is not tied to any single company and is designed to concentrate industry resources on limiting developer liability. The effort is unfolding as lawmakers advance the CLARITY Act, which aims to define U.S. cryptocurrency market rules. As described, parts of the bill would prevent certain noncustodial DeFi platforms from being treated as "money transmitters." If a platform does not hold customer assets, supporters say developers should not be automatically exposed to legal responsibility for third-party misconduct carried out through the protocol. Backers argue the approach lowers compliance risk for software builders and avoids treating open-source code authors like financial intermediaries. Beyond developer protections, the CLARITY Act still faces two major flashpoints before it can move forward in the Senate: ethics provisions and stablecoin yield. The report said banking groups continue to push for tighter limits on stablecoin yield, including calls to ban yield arrangements outright. On ethics rules, senior White House officials have said talks remain in progress but they are cautiously optimistic a deal can be reached, with negotiations touching on how to balance government interests and the division of power between the executive and legislative branches. Sen. Cynthia Lummis said the broader Crypto Market Structure Act is more likely to reach the Senate after the July 4 recess rather than before it. With the timetable still in flux, the next several weeks are expected to remain a heavy period for lobbying and legislative coordination.

CoinDesk reports that U.S. Securities and Exchange Commission rules have been updated to remove the "pattern day trader" (PDT) minimum-equity requirement. Once the change takes effect, day-trading stock accounts will no longer have to keep at least $25,000, lowering the entry bar for smaller retail accounts to trade more actively. The $25,000 threshold was introduced after the 2001 dot-com bust, when heavy losses among retail traders in overheated tech shares prompted regulators to require accounts deemed "pattern day traders" to maintain at least $25,000 in assets. Under the revised framework, investors below that balance can day trade more frequently without the prior transaction limits that effectively constrained short-term strategies for undercapitalized accounts. Implementation may be staggered. Regulatory documents indicate broker-dealers are not required to complete systems transitions at the same time; firms needing more time for compliance and risk-control upgrades may phase in changes, with a grace period running through October 20, 2027. A separate allowance for small brokers is about 18 months. Margin safeguards remain. The removal of the $25,000 minimum does not eliminate risk constraints: if an account fails to meet a special maintenance margin requirement within five business days of a margin deficiency, it must trade on a cash-available basis for the next 90 days, or until margin is restored. The update is aimed at reducing access barriers, not weakening oversight of high-frequency, short-term trading. Key details: - Prior requirement: $25,000 minimum account balance - Transition period end date: October 20, 2027 - Small broker grace period: approximately 18 months