Congress and Legislative Developments
The National Sheriffs' Association has moved from active opposition to a neutral position on the CLARITY Act, stating it will "step back and allow the legislative process to proceed." The organization had previously warned the bill would shield cryptocurrency-related criminal activity. This shift removes a significant law enforcement objection that had complicated passage.
Rep. French Hill signaled that Democrats and Republicans have narrowed their differences on the CLARITY Act ahead of a September vote, suggesting a path toward bipartisan consensus. The legislative momentum appears strengthened by the withdrawal of organized law enforcement opposition, though consumer protection concerns that initially drove the Sheriffs' Association stance remain subject to ongoing negotiation.
Regulatory and Court Disputes
The CFTC has filed to dismiss a CME Group lawsuit over crypto perpetual futures regulation, with the agency's lawyers characterizing the case as "much ado about nothing" and arguing that CME lacked standing to file suit. The filing represents a direct regulatory confrontation over jurisdiction and the classification of crypto derivatives products.
Kalshi, a prediction market platform, faces intensifying legal pressure despite a 1,500% surge in U.S. web traffic over less than a year. Michigan authorities are pursuing efforts to block the platform's operations in the state as the company faces a potential Supreme Court conflict, after federal authorities previously directed Kalshi to disregard a Michigan restraining order issued in June. The competing jurisdictional claims highlight unresolved questions about federal versus state regulatory authority over digital asset trading platforms.
