US CLARITY Act Stalled Amid Prediction Market and Wash Trading Controversies

The US CLARITY Act, aimed at regulating digital assets, appears to be moving backwards despite increasing urgency among stakeholders. With time running out before November's midterms, a deal has yet to be reached.

Coinbase's chief legal officer expressed optimism about the bill's chances, but some analysts are becoming increasingly pessimistic. The CFTC is taking action against prediction markets, accusing three states of interfering with its jurisdiction. The DoJ is also targeting market makers for wash trading, having indicted 10 individuals associated with four different crypto exchanges.