CLARITY Act Stalls in Senate, Threatening CFTC Market Framework
The odds of the CLARITY Act passing before the August recess have plummeted. Senate Majority Leader John Thune signaled on Friday that the crypto market-structure bill is likely stalled after Democrats rejected the GOP's ethics language. Analysts have slashed the odds of passage, reversing optimism from earlier in the week when Bitcoin reclaimed $66,000 on reports of a White House-circulated ethics deal.
The delay is a significant blow to regulatory clarity for event contracts. Just days prior, a lawyer testifying before a House subcommittee argued that the CLARITY Act could grant the CFTC the necessary authority to manage the "explosive growth of prediction markets." As regulatory frameworks hang in the balance, traders tracking legislative outcomes and platform volumes can monitor shifts using Prediction Markets Tools.
Mysterious $9M Trump Bet Cashes Out on Polymarket
In market-specific news, a Polymarket account operating under the name "GCottrell93"—a moniker tied to a backer of British politician Nigel Farage—has drawn scrutiny after taking in $9 million in crypto from unknown sources. According to reports from the Financial Times, the account placed massive bets on Donald Trump winning the election and has since cashed out the profits, leaving the origin of the initial funds and the ultimate beneficiary unclear.
Institutional Expansion for Kalshi and Hyperliquid
Despite regulatory hurdles in Washington, institutional infrastructure continues to expand. On Wednesday, digital asset trading technology provider Talos announced an integration to bring institutional trading tools to Kalshi, granting clients access to Kalshi’s event contracts and crypto perpetuals via existing Talos infrastructure.
Meanwhile, decentralized exchange Hyperliquid is launching its own on-chain event contracts. The platform will open HIP-4 Prediction Markets backed by a 500,000 HYPE stake. Under these preliminary terms, market deployers can charge fees up to 50% but risk having their stake slashed by validator votes if they create poorly defined or unsettled markets.