Senate Goes on Recess Friday. Is Clarity Act Procedural Vote Possible? |
butterscotch is the only media outlet exclusively covering news about inclusion in Web3, DeFi, crypto. CHEWS is our inaugural, weekly newsfeed, providing timely policy updates, industry trends, market research.
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CFTC Seeks Public Comment on Notice of Proposed Rulemaking of Derivatives Markets |
“By setting forth principles-based regulations for vertically integrated market structures, the CFTC is taking a significant step in our continued efforts to support responsible innovation in U.S. derivatives markets,” said Chairman Michael S. Selig. “This proposal would institute purpose-fit rules of the road that bolster market integrity without stifling novel market structures or imposing excessive compliance costs on registrants.”
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NY Attorney General James Urges Congress to Strengthen Oversight of Crypto Companies to Stop Scams |
July 27, 2026: (Excerpt) New York Attorney General Letitia James called on Congress to implement stronger regulations on the cryptocurrency market to protect consumers and investors from scams. In written testimony delivered to the Senate Committee on Homeland Security and Governmental Affairs’ Permanent Subcommittee on Investigations, Attorney General James details the flood of cryptocurrency scams costing Americans billions of dollars every year. Attorney General James also describes how the Digital Asset Market Clarity Act (Clarity Act) would restrict state and local law enforcement, making it harder for the Office of the Attorney General (OAG) to continue its nation-leading efforts to crack down on cryptocurrency scams and hold platforms that violate the law accountable.
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Credit Unions Support Clarity Act, but Want Improvements |
"America’s Credit Unions and all State Leagues joined together in a letter to Senate leaders on the legislation to express support for the bill but also outline where concerns remain." [Statement] [Letter]
Federally-regulated credit unions have regulatory authority from NCUA for digital assets via partnerships.
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Latino Coalition Letter To Senate Leaders Outlines Clarity Act Concerns |
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7/30/26 Latino coalition letter to Majority Leader Thune and Minority Leader Schumer from UnidosUS, U.S. Hispanic Chamber of Commerce, Hispanic 100, MBRT Business RoundTable, The Latino Coalition, Hispanic Chamber of E-Commerce, National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship, The Memorial Foundation, Inc., American Latino Veterans Association, National LGBTQ+ & Allied Chamber of Commerce, American Indian Chamber of Commerce of California (Former Tribal Chair, Prairie Band Potawatomi Nation):
Excerpt: "we write to express significant concerns with the current bill, especially with regard to the potential consequences for starvation of access to capital and economic development in low- and moderate-income communities…the current draft of the CLARITY Act contains critical shortcomings regarding deposit migration, access to capital, and the absence of community investment obligations for digital asset firms." [Read Letter]
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Democrats circulate anti-crypto poll ahead of vote. Poll found that voters in Democratic primaries view crypto less favorably than oil companies; Wall Street; or data centers. It also found that 84% had an unfavorable view of candidates backed by the crypto industry. - Semafor
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- More GOP problems for the Clarity Act. A growing number of Senate Republicans say they have unresolved concerns with a landmark crypto bill. - Punchbowl
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Crypto, and its cash, gets snarled in the Senate. That’s a problem for the crypto industry’s network of super PACs, known as Fairshake, which had nearly $140 million to spend at last count. Its backers, which include firms like Coinbase and Ripple, were counting on a Senate vote on their long-sought bill to help settle whether all that money would go just to Republicans or get shared between the parties. - Semafor
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- Sens. Ruben Gallego (D-Ariz.) and Thom Tillis (R-N.C.) have transmitted a counteroffer for an ethics provision in the bill. - POLITICO
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Law enforcement groups propose crypto bill changes backed by key Democrat. The proposal was sent to the White House by the National Association of Assistant U.S. Attorneys and the National District Attorneys Association. It is backed by Sen. Catherine Cortez Masto of Nevada. - POLITICO
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Sport Leagues, States Urge CFTC to Modify Prediction Market Rule: A bipartisan coalition of 44 state attorneys general submitted a comment arguing the CFTC lacks statutory authority for its rule. - Bloomberg
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The IRS is warning taxpayers who have cryptocurrency that they may be receiving fake letters sent with the intent to steal their data or digital assets. - Bloomberg
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The Senate Finance Committee advanced a bipartisan tax administration package Thursday aimed at modernizing the IRS, improving customer service and strengthening taxpayer rights. – Roll Call
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M&F Bank, North Carolina's oldest Black-owned bank announced that it will merge with South Carolina's Optus Bank in a move that will create the largest Black-owned bank in the country. - Axios
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OCC, FDIC to Propose Easing Anti-Redlining Rule for Small Banks. Regulators to release a proposal that would raise the threshold for banks to fully comply with the Community Reinvestment Act, measuring their lending and investments in low- to moderate-income communities. - Bloomberg
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- Press Release (June 2026): DCG Poll Finds Crypto Is a Major Election Issue for Voters In the 2026 Midterms. - Digital Currency Group
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CLEVE'S HOT TAKE: CLARITY ACT |
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| Are Democrats Dismissive of Financial Inclusion in Crypto?
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When it comes to advancing crypto policy, Democrats are laser-focused on consumer protection, while ignoring economic opportunities and the voices of diverse segments of the ecosystem. Despite their badge of honor as champions of financial inclusion, Democrats are primarily using their political capital to advocate for ethics provisions and illicit finance measures in Clarity Act negotiations - not inclusion. In fact, the only reference is on page 197 of the Senate bill in an illicit finance section. The empty reference has no actual policy mandate. Senate Democrats appear indifferent to the fact that the Clarity Act does not have any financial inclusion mandates, as evidenced by the fact that they have not proposed any financial inclusion measures in the bill. They have actually opted not to advance proposed amendments from advocates.
One could argue that they likely do not want to give the Trump Administration a win by touting financial inclusion in crypto so close to the November midterm election. But history debunks that theory. Democrats also failed to advance any financial inclusion provisions in crypto policy when they controlled the House and Senate. I know this is true because I tried to get Democrats to take action during Trump's first term and the Biden Administration.
The only exception was in 2022 when Senator Cory Booker included a provision in the Digital Commodities Consumer Protection Act directing the CFTC to examine racial, ethnic, and gender demographics of customers participating in digital commodity markets and to use that information to inform its rulemaking and provide outreach to customers. That provision continues to be the only legislative language in a bill focused on inclusion in crypto.
(No, the Kamala Harris campaign's misguided "Crypto For Black Men" debacle does not count.)
Maybe the bigger issue is not that Democrats dismiss financial inclusion in crypto, but rather that diverse stakeholders don't hold them accountable for ignoring the priorities of crypto's earliest adopters and largest segment of the ecosystem.
Sadly, many conflate consumer protection with financial inclusion as if they are one and the same. So, maybe for some, the paternalism of the traditional Democratic approach to protectionism is sufficient.
I have to admit, ignoring financial inclusion does make it easier to craft wedge political crypto narratives. If you take financial inclusion out of the equation, there is not such a glaring redeeming quality to reconcile in contentious political debates. It becomes easier to negotiate around sexier crypto topics without having to deal with that pesky financial inclusion distraction.
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THE GET DOWN: BEYOND BITCOIN PODCAST |
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Stream all episodes from seasons one & two on your favorite platform.
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NEXT WEEK ON MARTHA'S VINEYARD |
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butterscotch is a digital news studio broadcasting stories about Black, Latino, Indigenous DeFi retail investors, Web3 consumers, founders, executives, officials. The virtual newsroom - featuring eNews, Podcast, Live Events – seeks to deepen mainstream understanding of diverse segments of the emerging $3 trillion crypto industry.
Cleve Mesidor, CEO & Managing Editor
Ashlynn Mesidor, CTO & Co-Founder
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