U.S. Senate Republicans on Sept. 10 released a 630-page revised version of the Digital Asset Market Clarity Act, or CLARITY Act, as they prepare to replace the House-passed H.R.3633 with a substitute amendment. The new text keeps the bill’s core goal of splitting oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, while adding a clearer route for certain non-decentralized DeFi protocols to fall under CFTC registration. The proposal says protocols may be treated as non-decentralized if a controller can change functionality, operating methods or consensus rules, if trading is not carried out entirely under transparent pre-written code, or if someone can restrict, censor or block user access. Operators retaining upgrade keys, pause switches, transaction censorship powers or control over assets could face registration, disclosure, recordkeeping, supervision and Bank Secrecy Act compliance duties. Other contested provisions remain largely intact, including limits on passive yield paid on payment stablecoins and ethics restrictions on public officials. According to The Block, citing Politico, the revised text still lacked Democratic support as of Sept. 10. The Senate is scheduled to hold a cloture vote at 2:15 p.m. Eastern on Sept. 15 to decide whether debate can begin, with 60 votes required.

The U.S. Commodity Futures Trading Commission, or CFTC, said fund managers reduced their net long positions in S&P 500 futures to the lowest level seen last week, according to a newsflash published by ChainCatcher. The brief did not provide the size of the position, the scale of the reduction, or any added market context. No other data points, timing details beyond the reference to last week, or comments from named individuals were included in the source material. The update was categorized under policy and regulation in the original item.

Crypto Banter founder Ran Neuner said Hyperliquid’s strongest threat comes from regulation rather than rival platforms, arguing that decentralized exchanges may be next in line for tighter government scrutiny. Speaking on Cointelegraph’s Chain Reaction podcast, Neuner said regulators have already started setting rules for centralized crypto exchanges and that decentralized venues could eventually face similar treatment. At the same time, he described Hyperliquid’s network effects as a major competitive moat, saying rivals cannot simply copy the platform’s technology and expect to win users away. According to DeFiLlama, Hyperliquid’s decentralized perpetual futures exchange handled about $223 billion in trading volume over the past 30 days, leading the sector. The report also noted signs of a possible compliant route into the US market. In August, President Donald Trump said CFTC Chair Michael Selig was working to bring Hyperliquid into the country in a “fully compliant and legal fashion.” HYPE rose about 20% in the 24 hours around those remarks. As of Friday, CoinGecko data showed HYPE trading near $82, up more than 220% year to date, with a market capitalization of about $18.2 billion and a fully diluted valuation of roughly $78.4 billion.

Miles Jennings, head of policy and general counsel at a16z crypto, said in an interview that some banks may not want the CLARITY Act to become law and that he has not seen evidence supporting claims that stablecoin rewards would trigger deposit outflows. He also argued that administrative action by the U.S. Securities and Exchange Commission alone cannot give founders the long-term certainty they need across political terms, warning that the Gary Gensler-era approach of regulation through enforcement could keep pushing crypto startups out of the United States. The comments came as Senate Republicans released a revised version of the CLARITY Act ahead of a procedural vote set for Sept. 15. The updated bill says it incorporates 114 amendments proposed by Democrats and adds provisions for so-called non-decentralized finance trading protocols, including CFTC registration requirements and joint rulemaking by the CFTC and the Treasury Department. Even so, the bill still faces uncertainty, with disputes over ethics rules, stablecoin yield, illicit finance and conflicts tied to Donald Trump’s crypto holdings still standing in the way of bipartisan support.

Senior officials from the U.S. Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, the Board of Governors of the Federal Reserve System, and the Bank of England held a tabletop exercise on Sept. 3, 2026 to discuss the resolution of central counterparties, or CCPs. According to the SEC, the session focused on strengthening transatlantic cooperation so regulators on both sides can coordinate effectively if a CCP comes under stress or fails. Participants also reaffirmed the central role CCPs play in financial markets and said they will continue discussions on resolution frameworks and cross-border cooperation. The meeting centered on coordination and preparedness rather than announcing a new rule or policy change.

The European Securities and Markets Authority said prediction markets are "rife with inside trading" in a risk monitor that gave the sector its own chapter, laying out three episodes that regulators say exposed core weaknesses in how these platforms operate. The report cited wallets that made $1.2 million hours before the February strike on Iran, with Bubblemaps later tracing nine linked accounts to $2.4 million in Iran-related bets that won 98% of the time. It also pointed to charges against a U.S. Army master sergeant over more than $400,000 in Polymarket profits tied to the capture of Venezuelan president Nicolás Maduro, and to a suspected attempt to tamper with weather sensors used to settle Polymarket contracts, which led Météo-France to file a police complaint. ESMA said platform responses are mostly reactive and often begin only after profits have already been taken. The regulator also argued that prediction markets have seen limited uptake in the European Union because of legal treatment under MiFID II, MiCA, and national gambling laws. It noted that Kalshi and Polymarket restrict users in some EU countries but not all, while the effectiveness of VPN bans remains uncertain. The report also highlighted rising volumes, concentrated gains, and sharp differences between Europe and Washington over how event contracts should be regulated.

Tax reporting for gains tied to Kalshi’s Bitcoin perpetual contracts remains unsettled even after the U.S. Commodity Futures Trading Commission approved the product as a futures contract, according to a post from Bitcoin News on X. The key issue is whether the contract would qualify as a regulated futures contract under Section 1256 of the U.S. tax code. If it does, gains would generally receive 60% long-term capital gains treatment and 40% short-term treatment regardless of how long the position was held. CME has argued that Kalshi’s perpetual contract is effectively a swap, and swaps are explicitly outside the scope of Section 1256. While the CFTC’s classification supports the view that the product is a futures contract, that determination does not bind the Internal Revenue Service. Until the IRS, Congress, or a court directly addresses how Bitcoin perpetual contracts should be taxed, the reporting treatment for traders remains unresolved.

BitoGroup said it has launched the pilot phase of Bito.ONE, an enterprise-grade stablecoin settlement solution, with O-Bank selecting the company to build an institutional stablecoin settlement service. The two sides have also introduced a corporate cross-border stablecoin collection service and moved into the validation and implementation stage. According to the announcement, the pilot covers a collaboration model between a virtual asset service provider and a bank, including corporate collections, transaction verification, stablecoin-to-fiat exchange, and settlement. Companies will be able to receive and send USDT and USDC through an existing corporate online banking portal, without building their own wallets or handling private keys. BitoGroup said Bito.ONE includes stablecoin payment functions, wallet and on-chain transaction management, AML and CFT controls, on-chain fund flow analysis, sanctions screening, transaction monitoring, and fiat settlement. The company added that it launched its Bito.Enterprise brand this year after Taiwan’s virtual asset special act passed its third reading, and said it plans to continue expanding cooperation with financial institutions and corporate users.