The U.S. Department of Justice has rejected warnings from four major law enforcement organizations, arguing that the CLARITY Act would not weaken criminal investigations and that claims about enforcement loopholes are factually incorrect.

According to the Blockchain Association, a DOJ spokesperson responded on June 24 to concerns raised by the National District Attorneys Association, National Association of Assistant U.S. Attorneys, International Association of Chiefs of Police, and National Sheriffs’ Association. The spokesperson said a recent letter from those groups “contains factual inaccuracies and mischaracterizes Administration policy.”

The dispute comes as lawmakers move closer to finalizing the CLARITY Act, a digital asset market structure bill that Senate negotiators are preparing to release for a final review period before seeking floor consideration later in July.

DOJ says criminal investigations remain unaffected

In a June 23 letter, the four law enforcement organizations urged the White House to reconsider parts of the legislation, including Section 604. The groups argued that certain exemptions could create regulatory blind spots that sophisticated criminal actors might exploit.

According to the letter, broad carve-outs could reduce oversight and accountability for some participants in the digital asset industry. The organizations also warned that the provision could interfere with enforcement structures currently used by investigators and prosecutors.

While raising those concerns, the groups stated that they were not opposed to software development or technological innovation. Instead, they said their objections centered on protections that could shield entities functioning as intermediaries from regulatory scrutiny. The letter also questioned provisions tied to the Blockchain Regulatory Certainty Act.

Pushing back against those arguments, the DOJ spokesperson said the legislation would not limit federal prosecutors or investigators. The spokesperson stated that law enforcement access to relevant information would remain unchanged under the proposal.

The DOJ further said the bill would not restrict its ability to investigate or prosecute criminal conduct involving digital assets, including drug trafficking, human smuggling, and terrorism financing.

Senate review advances as CBDC debate continues

As criticism from law enforcement groups draws attention to the bill, Senate negotiations have entered what lawmakers describe as the final drafting stage.

Senator Cynthia Lummis said negotiators plan to publish updated CLARITY Act text on July 4 after months of discussions involving lawmakers, industry participants, and banking representatives. According to Lummis, the release will allow one final round of feedback before Senate leaders pursue floor action later in July.

Lummis said negotiations have been underway since last Labor Day and have required thousands of hours of work on both the CLARITY Act and the GENIUS Act. She added that lawmakers have spent considerable time addressing concerns raised during the drafting process, including objections from parts of the banking sector.

At the same time, debate over federal digital asset policy continues elsewhere in Washington. President Donald Trump recently postponed signing the 21st Century ROAD to Housing Act, despite the measure passing Congress with 358 votes in the House and 85 votes in the Senate.

Although primarily focused on housing policy, the bill contains language that would prohibit the Federal Reserve from creating or issuing a central bank digital currency through 2030.

Trump said he would instead wait for Congress to advance the SAVE AMERICA Act, while Treasury Secretary Scott Bessent has separately stated that a U.S. CBDC is “off the table” under the current administration and has encouraged lawmakers to continue advancing digital asset legislation, including the CLARITY Act.

SpaceX shares have remained under pressure after short interest jumped to 13% of the publicly tradable float while the stock lost more than 25% over the past five trading sessions.

According to data from Ortex Technologies cited by Reuters, bearish bets against SpaceX have risen rapidly in recent days, pushing short interest from 8% in the previous session to 13% of the company’s public float. The increase comes as SPCX trades roughly 30% below its post-IPO high following a sharp rally after its market debut.

Reuters reported that Ortex co-founder Peter Hillerberg described the pace of short-selling activity as unusual for a company that has been public for only a few weeks.

Hillerberg attributed the move to a growing number of traders positioning for additional downside after the stock’s recent decline.

The selling pressure has coincided with profit-taking in newly listed stocks and a broader retreat across risk assets. Market participants who benefited from SpaceX’s early gains are now reassessing the company’s valuation after the stock’s rapid rise and subsequent pullback.

Limited float keeps short-squeeze risk alive

Despite the increase in bearish positioning, some market observers point to conditions that could make short positions vulnerable if buying demand returns.

Current market data shows approximately 83 million SpaceX shares have been sold short, while average daily trading volume stands near 270 million shares. Under those conditions, a sharp rally could force short sellers to repurchase stock to close positions, potentially accelerating gains through a short squeeze.

At the same time, concerns about future share supply have added another layer to the debate. Economist Peter Schiff argued that SpaceX’s strong first-day performance was partly supported by its relatively small public float. In recent comments, Schiff warned that the number of tradable shares could expand significantly over time.

According to Schiff, the public float may increase from roughly 640 million shares to 7.5 billion shares by Dec. 8, representing an almost twelvefold increase. He argued that a substantial rise in available shares could create additional selling pressure if demand fails to keep pace.

Analysts remain divided on valuation

Recent analyst coverage has highlighted the split between bullish long-term expectations and concerns about current pricing.

As crypto.news previously reported, Susquehanna initiated coverage of SpaceX with a neutral rating and a $170 price target. In a research note, the brokerage stated that the company’s valuation depends on aggressive growth assumptions and premium valuation multiples.

While Susquehanna said it would prefer to wait for a more attractive entry point before taking a more constructive stance, the firm also identified several factors supporting the company’s long-term outlook. Those factors include SpaceX’s dominant position in rocket launches, the growth potential of Starlink, early investments in artificial intelligence infrastructure, and the leadership of CEO Elon Musk.

Even with those strengths, Susquehanna cautioned that a significant portion of the expected growth may already be reflected in the current valuation.

Meanwhile, SPCX fell another 1% during the latest session to $154.54, extending its five-day loss to approximately 26%. Despite the recent decline, the company still carries a market capitalization of about $2.03 trillion.

Separately, the company has attracted investor attention after announcing plans to raise $20 billion through a bond offering, a move that adds another closely watched catalyst as traders debate whether the recent selloff has gone too far or not far enough.

World has expanded access to AgentKit, a framework that has enabled verified users to connect AI agents to their digital identities and prove those agents represent real people rather than automated bot networks.

According to World, the rollout comes as AI agents take on a growing number of online tasks, increasing demand for systems that can distinguish between software acting for a specific individual and large-scale automated operations.

The project, backed by OpenAI CEO Sam Altman, said AgentKit allows users to delegate actions to AI tools while keeping identity verification and user controls in place.

The release follows a period of increased attention for the project after major U.S. crypto trading platform Robinhood listed the World token, bringing additional visibility to the ecosystem.

Verified identities allow AI agents to act for users

Details published by World show that AgentKit links supported AI agents to a verified World ID, enabling websites and applications to confirm that an agent is acting on behalf of a unique human user. The company said the system is designed to help businesses enforce user-level rules and reduce abuse associated with automated accounts.

To access the framework, World stated that users need a verified World ID, a World App account, and a compatible AI agent. Supported options currently include Claude Code, Codex, Cursor, Hermes, and OpenClaw.

Through World’s ToolRouter interface, users can create credentials and authorize their agents to interact with supported services. According to the company, this process allows individuals to assign tasks to AI systems without giving up identity verification tied to their accounts.

Rather than relying solely on account credentials, the framework adds proof that an agent represents a verified person, which World said can help online services distinguish legitimate activity from coordinated bot behavior.

Demonstration shows AI agents completing purchases

To showcase the technology, World recently organized a limited-edition sale of 500 “Human in the Loop” hats. According to the company, AI agents handled the entire purchase process for participating users.

World said the agents discovered the product launch, checked eligibility requirements, navigated the online storefront, and completed transactions without direct user involvement during the purchase flow.

Identity checks remained active throughout the event. According to the World, World ID verification ensured that purchase limits were enforced on a one-person-per-item basis, preventing users from bypassing restrictions through multiple automated accounts.

The company reported that all 500 hats were claimed by verified users located in countries including the United States, Germany, Japan, and the United Kingdom. World said the event demonstrated how businesses can permit AI agents to perform online actions while maintaining controls intended to reduce bot-driven abuse and automated farming activity.

As AI-powered software takes on more responsibilities across digital platforms, World said AgentKit provides a way to connect those agents to verified human identities, allowing organizations to verify who is ultimately behind automated actions carried out online.

Quick Summary

• Kalshi launches legal action against Illinois over state prediction market licensing requirements.

• New Illinois statute mandates state licenses for prediction market operators.

• Platform argues existing CFTC regulation preempts state-level requirements.

• Company requests injunction before July 1 implementation date.

• Legal battle intensifies ongoing disputes over sports prediction market jurisdiction.

The prediction market platform Kalshi has initiated legal proceedings against Illinois officials, contesting recently enacted licensing legislation governing prediction markets and imposing fees on specific digital asset activities. The platform maintains that its event-based contracts fall under exclusive federal jurisdiction via the Commodity Futures Trading Commission. The company is pursuing court intervention to prevent the regulations from becoming operational on July 1.

Legal Action Targets State Licensing Framework

This week, Kalshi submitted its legal filing to the U.S. District Court for the Northern District of Illinois. The defendants include Governor JB Pritzker, Attorney General Kwame Raoul, and additional state officials. The case targets specific sections of SB3019, legislation that Pritzker approved as part of a comprehensive budget and revenue package.

Under the statute, operators of prediction markets must secure state authorization before conducting business with Illinois residents. Additionally, the legislation implements a 0.2% fee on designated digital asset transactions and associated services. Kalshi contends these mandates undermine a regulatory domain that Congress designated for federal oversight.

The platform functions as a designated contract market with CFTC registration under the Commodity Exchange Act. Kalshi maintains that Illinois lacks authority to establish an independent licensing framework for its federally supervised event contracts. The company asserts that such measures generate contradictory obligations and undermine consistent standards for nationwide derivatives platforms.

Jurisdictional Conflict Between Federal and State Regulators

According to Kalshi, the Commodity Exchange Act grants the CFTC sole jurisdiction over contracts executed on registered exchanges. State authorities, however, classify certain sports-related event contracts as gambling instruments subject to state gaming statutes. This fundamental disagreement has generated multiple legal confrontations between prediction platforms and state enforcement agencies.

The company indicates that adhering to state requirements would necessitate discontinuing specific sports contracts for Illinois customers. Such action could potentially violate federal uniformity standards applicable to products on designated contract markets. Kalshi would also incur significant expenses for geographic restriction technology, regulatory compliance infrastructure, and jurisdiction-specific product modifications.

A jurisdiction-by-jurisdiction regulatory approach could compel nationwide platforms to customize offerings based on individual customer locations. As a result, operators might require distinct licenses, contract portfolios, and access management systems across multiple states. Kalshi contends that Congress established federal derivatives oversight specifically to avoid such fragmented market conditions.

Platform Pursues Emergency Relief Before Deadline

Kalshi has filed for a temporary restraining order preventing Illinois from implementing the challenged provisions. The company also pursues preliminary and permanent injunctive relief pending resolution of its federal preemption arguments. The platform asserts that enforcement would inflict immediate business damage and generate irreversible operational costs.

This legal challenge emerges amid broader litigation concerning sports-focused prediction markets and federal regulatory jurisdiction. The CFTC has contested measures by nine states, including Illinois, while asserting its authority over registered exchanges. States maintain that local consumer safeguards and gaming statutes govern sports outcome contracts.

Illinois officials have previously stated their intention to uphold state authority and pursue consumer protection efforts within their borders. Neither Pritzker nor Raoul have provided immediate statements regarding Kalshi’s current legal filing. The judiciary must now determine whether federal derivatives legislation supersedes the newly established state licensing requirements.

U.S. President Donald Trump has halted the signing of a housing bill that includes a temporary ban on central bank digital currencies (CBDCs), citing a need to prioritize another piece of legislation he is pushing in Congress. The development adds uncertainty to the near-term U.S. regulatory path for digital assets, even as lawmakers move forward on separate crypto bills.

Trump said on Wednesday that he would cancel the signing ceremony for the “21st Century ROAD to Housing Act” and hold it “until such time as we pass the desperately needed SAVE America Act,” according to a post on Truth Social. The housing measure—already passed by both chambers—contains a CBDC restriction through the end of 2030, but also includes a carve-out for certain stablecoins.

Key takeaways

• Trump has delayed signing the 21st Century ROAD to Housing Act due to his insistence that Congress pass the SAVE America Act first.
• The housing bill bans the Federal Reserve from issuing or creating a CBDC (or a substantially similar digital asset) until the end of 2030, while allowing “dollar-denominated” stablecoins that are open, permissionless, and private.
• Trump’s stance raises uncertainty over how (and whether) he will handle other digital-asset legislation pending in the Senate.
• The Digital Asset Market Clarity (CLARITY) Act remains awaiting a potential Senate vote, and Trump has previously signaled support for codifying a “future-proof” market structure.
• If Trump vetoes related legislation, Congress could potentially override with a two-thirds vote in both chambers.

Housing bill stalled despite approval from both chambers

The “21st Century ROAD to Housing Act” passed the U.S. House on Tuesday and had previously cleared the Senate. While many observers expected Trump to sign the bill without delay, his Wednesday announcement suggests he may treat the SAVE America Act as a prerequisite for other legislation.

In his Truth Social post, Trump linked the cancellation directly to the need to pass the SAVE America Act. The bill he referred to is associated with changes to voting procedures, including a requirement that voters provide proof of U.S. citizenship in person to register—an approach that critics have argued could disenfranchise eligible voters.

This is not the first time Trump has floated a broader “no other bills” condition. Earlier this year, he said he would not sign other measures until the SAVE America Act is enacted, a position that now appears to be affecting the timeline for the housing package as well.

What the housing bill does on CBDCs—and where stablecoins fit

Supporters of the housing bill included a CBDC-limiting provision that would restrict U.S. central bank digital currency issuance. As reported in earlier coverage by Cointelegraph, the legislation bars the Federal Reserve from issuing or creating a CBDC or “any digital asset that is substantially similar” until the end of 2030.

At the same time, the bill includes a narrow exception for stablecoins. The text described in Cointelegraph’s coverage allows “dollar-denominated currency that is open, permissionless and private,” a carve-out designed to permit certain stablecoin models even under the broader CBDC restriction.

For crypto market participants, the carve-out matters because it frames how Congress could draw a line between CBDC-style instruments and private stablecoin systems. However, with Trump delaying signing, that legal boundary is not yet locked in—meaning the practical effect of the CBDC timeline could remain uncertain until the housing bill becomes law.

Regulatory ripple effects: CLARITY and the broader “market structure” debate

Trump’s insistence on prioritizing the SAVE America Act has also introduced questions about how he might act on crypto-related legislation that is still moving through Congress. As of Wednesday, the U.S. Senate was reportedly awaiting a potential vote on the Digital Asset Market Clarity (CLARITY) Act, a bill intended to reshape how regulators handle and enforce digital asset-related rules.

Cointelegraph previously reported that Trump said in May he intended to codify a “future-proof digital asset market structure,” which was widely understood as aligning with proposals like CLARITY. While the housing bill’s CBDC provision reflects Congress carving out limitations on central bank-backed digital currency efforts, CLARITY is aimed at defining regulatory roles and enforcement frameworks for the broader digital asset ecosystem.

Given the president’s stated approach of linking bill signings to passage of the SAVE America Act, the immediate risk for crypto policy timelines is straightforward: even if Congress passes measures, final enactment may still depend on executive scheduling and broader political leverage.

Lawmakers may still be able to override a veto

If Trump ultimately vetoes the housing bill or any other digital-asset-related legislation, Congress has a constitutional route to respond. As noted in the source coverage, lawmakers could override a veto by securing a two-thirds majority in both chambers.

That possibility means the outcome is not solely dependent on presidential action. Still, the delay itself can be meaningful for the market: regulatory certainty affects compliance planning, investment decisions, and how institutions allocate resources toward particular product or infrastructure strategies.

For now, investors and builders should watch whether the Senate brings CLARITY to a vote and, crucially, whether Trump’s SAVE America Act condition changes execution timelines for bills affecting the digital asset sector.

Michelle Bond has lost her bid to dismiss criminal charges, with a federal judge setting her trial to begin on Nov. 9 after rejecting arguments tied to her husband Ryan Salame’s plea agreement.

According to an order from Judge George Daniels in the U.S. District Court for the Southern District of New York, Bond will face trial on four campaign finance-related charges in November. The ruling came one week after the court denied her request to throw out the indictment, which argued that federal prosecutors had agreed not to charge her if Salame pleaded guilty.

The case remains one of the last criminal proceedings connected to the collapse of cryptocurrency exchange FTX, which entered bankruptcy in 2022. Several former executives have already been prosecuted following the exchange’s failure.

Bond will face campaign finance charges in November

According to the August 2024 indictment, prosecutors allege that Bond and Salame illegally financed her 2022 campaign for the U.S. House of Representatives in New York’s 1st Congressional District.

Prosecutors claim Salame used about $400,000 originating from FTX through what they described as a sham payment to support the campaign in violation of federal campaign finance laws.

Federal prosecutors have charged Bond with conspiracy to cause unlawful political contributions, causing and receiving a straw donor contribution, causing and accepting excessive campaign contributions, and causing and accepting an unlawful corporate contribution. Each count carries a maximum prison sentence of five years.

The indictment further alleges that Bond tried to conceal the source of the campaign money by making false statements to a congressional committee and the Federal Election Commission. Bond has pleaded not guilty, and the allegations remain accusations that must be proven in court.

Earlier filings from Bond’s legal team argued that prosecutors had broken an agreement allegedly made during Salame’s plea negotiations by later bringing charges against her. Judge Daniels rejected that argument, allowing the prosecution to proceed toward trial.

Bond unsuccessfully sought the Republican nomination for New York’s 1st Congressional District in 2022, losing the primary election to Nicholas LaLota.

Most FTX criminal cases have already concluded

Meanwhile, Salame is serving a 90-month prison sentence after pleading guilty to conspiracy to make unlawful political contributions. After his sentencing, he attempted to withdraw his plea, arguing that prosecutors had misled him about whether Bond would face charges. He later abandoned that effort and reported to prison in October 2024, leaving the legal dispute to be addressed through Bond’s case.

Among senior FTX executives, Salame, former CEO Sam Bankman-Fried, and former Alameda Research CEO Caroline Ellison received prison sentences. Former FTX engineering director Nishad Singh and co-founder Gary Wang were sentenced to time served after cooperating with prosecutors and testifying during Bankman-Fried’s trial.

Apart from Bond’s upcoming proceedings, Bankman-Fried remains the only former FTX executive whose case was decided by a jury. He was convicted on seven felony counts and sentenced to 25 years in prison in 2024.

More recently, the Second Circuit Court of Appeals rejected Bankman-Fried’s appeal against his conviction and sentence. Court records leave a review by the U.S. Supreme Court or a presidential pardon as his remaining legal options. Bankman-Fried has also reportedly sought a pardon from President Donald Trump.