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July 2026 saw continued momentum toward federal and international digital asset regulation, with market structure, ethics, investor protection and illicit finance risks remaining central themes. In the United States, Senate Digital Assets Subcommittee Chair Cynthia Lummis released updated text for the Digital Asset Market Clarity Act (CLARITY Act), while Senator Elizabeth Warren criticized the proposal as insufficient on conflicts of interest, investor protection and national security.
July 2026 saw continued momentum toward federal and international digital asset regulation, with market structure, ethics, investor protection and illicit finance risks remaining central themes. In the United States, Senate Digital Assets Subcommittee Chair Cynthia Lummis released updated text for the Digital Asset Market Clarity Act (CLARITY Act), while Senator Elizabeth Warren criticized the proposal as insufficient on conflicts of interest, investor protection and national security. Separately, Senator Kirsten Gillibrand renewed her call to bar elected officials and their spouses from issuing or sponsoring digital assets, and the Senate unanimously passed a resolution opposing any pardon or clemency for FTX founder Sam Bankman-Fried.
Regulators also advanced oversight through rulemaking efforts and cross-border policy recommendations. SEC Chairman Paul Atkins identified crypto-related rulemaking as a key part of the SEC’s 2026 Regulatory Agenda, and Commissioner Hester Peirce noted that crypto vaults and onchain lending arrangements may implicate the federal securities laws depending on their structure. Internationally, the U.S. Department of the Treasury and UK HM Treasury issued joint recommendations on cross-border financial activity and tokenized finance, while FATF reported broader Travel Rule adoption and continued illicit finance risks across the virtual asset sector.
Negotiations over the CLARITY Act remain unresolved following the August recess, with ethics, consumer protection, illicit finance, market-integrity and stablecoin yield issues still under discussion. Crypto tax legislation made less procedural progress, although Senator Steve Daines outlined a Senate framework applying traditional tax principles to certain digital assets while addressing stablecoin payments, network fees, staking, lending and other blockchain transactions.
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