A major U.S. police organization has endorsed the latest CLARITY Act draft, but unresolved disputes over political ethics, DeFi protections and stablecoin rewards continue to threaten its passage before the Senate recess.

Major Cities Chiefs Association backs CLARITY Act

The Major Cities Chiefs Association endorsed the latest version of the CLARITY Act in a letter to Senate Banking Committee Chair Tim Scott and ranking member Elizabeth Warren.

MCCA said recent revisions addressed concerns previously raised by police and prosecutors. The organization specifically pointed to additional law-enforcement provisions and the inclusion of state and local agencies in Sections 10203, 10204 and 10309.

“The inclusion of these provisions represents a meaningful step toward improving the ability of law enforcement to investigate financial crimes involving digital assets,” the association wrote.

MCCA joins several other police organizations that have moved toward supporting the proposed U.S. crypto market structure framework.

The National Organization of Black Law Enforcement Executives became the first major police association to endorse the bill. The Federal Law Enforcement Officers Association later offered conditional support while requesting stronger rules governing accountability in decentralized finance.

The National Fraternal Order of Police, which represents more than 382,000 officers, also reversed its previous opposition after reviewing revisions to the Blockchain Regulatory Certainty Act provisions.

Major County Sheriffs of America has stopped short of endorsing the legislation but withdrew its formal opposition. The group adopted a neutral position while asking Congress to give state and local agencies a role in Treasury studies and advisory panels created under the bill.

Why police groups previously opposed the crypto bill

Earlier law-enforcement resistance focused primarily on the CLARITY Act’s treatment of non-custodial crypto developers.

The Blockchain Regulatory Certainty Act language generally protects developers and infrastructure providers from being classified as money transmitters when they do not control customer funds. Supporters say those protections prevent programmers from being prosecuted solely because criminals use open-source software.

Police groups and prosecutors argued that earlier wording was too broad. They warned that DeFi operators, mixers and other services could use the exemption to avoid registration and accountability, making it harder to trace illicit funds or recover assets for victims.

Revisions clarified that developers may still face prosecution when they knowingly or intentionally facilitate money laundering and other crimes. The updated draft also preserves existing criminal-enforcement powers and gives state and local agencies a larger role.

However, Democrats led by Senator Catherine Cortez Masto and several prosecutors continue to seek additional changes. Their proposal would narrow or remove protections that could shield some crypto service providers from prosecution.

Banks push for tighter stablecoin restrictions

The banking industry supports the broader goal of establishing federal rules for digital assets but wants lawmakers to revise the bill’s stablecoin provisions.

A coalition of 134 banking association officials and senior bank executives has asked the Senate to strengthen Section 10404. That provision restricts stablecoin issuers from paying interest but allows certain rewards tied to payments, memberships and other activities.

Banks argue that exchanges could use those exceptions to provide returns resembling interest on stablecoin balances. They warn that such products could pull deposits away from regulated banks and reduce funding available for mortgages, agricultural credit and small-business loans.

The American Bankers Association and five other financial trade groups have called the legislation an important step toward federal crypto regulation. However, they want Congress to prohibit passive returns tied to the size or duration of stablecoin holdings while preserving legitimate transaction-based rewards.

White House crypto adviser Patrick Witt has disputed the banking industry’s warnings, arguing that banks are seeking protection from competition rather than stronger consumer safeguards.

Ethics dispute leaves passage odds at 30%

Despite growing police support, political ethics remains one of the largest barriers to a Senate agreement.

Democrats want restrictions addressing financial interests in crypto held by elected officials and their families. Republican Senator Thom Tillis has also indicated that he will not support the bill without an acceptable ethics provision.

Tillis reportedly plans to send a bipartisan ethics proposal to the White House for President Donald Trump’s approval. Democrats have not ruled out supporting a vote before the recess, but they are unlikely to back the current text without further changes.

Polymarket traders place the probability of Trump signing the CLARITY Act in 2026 at 30%. The Senate has until its scheduled Aug. 7 recess to reach an agreement and advance the legislation during the current window.

MCCA’s endorsement removes one source of institutional resistance, but it does not resolve the ethics, DeFi and stablecoin disputes. Without a bipartisan compromise, the bill may struggle to secure the 60 Senate votes needed to overcome a filibuster.

Apple faces bipartisan pressure to rule out memory chips from two Chinese suppliers as an AI-driven shortage tightens global supply and raises production costs.

Senators give Apple an Aug. 21 deadline

Six US senators have urged Apple CEO Tim Cook to abandon any plan to source memory chips from ChangXin Memory Technologies, or CXMT, and Yangtze Memory Technologies Co., commonly known as YMTC.

The bipartisan letter was led by Republican Senator Jim Banks of Indiana and Senate Democratic leader Chuck Schumer of New York. Senators Andy Kim, Jeanne Shaheen, Mike Crapo and Pete Ricketts also signed it.

Lawmakers asked Apple to confirm by Aug. 21 that it would not use components made by either supplier, including in devices produced exclusively for the Chinese market. Bloomberg first reported the letter.

“Once a part clears qualification for Apple production, extending it worldwide is a single procurement decision away,” the senators wrote.

The group also asked Apple whether it transferred intellectual property to CXMT or YMTC while evaluating their components. Such transfers could require approval from the US Commerce Department, depending on the technology involved.

Apple had not publicly responded to the letter at the time of writing.

Why US lawmakers oppose CXMT and YMTC

Washington’s concerns center on the suppliers’ alleged links to China’s government and defense industry.

The Pentagon added both companies to its updated Section 1260H list in June. The Defense Department document describes CXMT as affiliated with China’s Ministry of Industry and Information Technology and state-owned asset authorities.

It identifies YMTC as indirectly owned or affiliated with Chinese government and defense agencies. Both companies have denied that they support China’s military.

A Section 1260H designation does not impose the same restrictions as a full trade sanction. However, it limits Pentagon dealings with listed companies and signals possible future procurement or investment restrictions.

YMTC also remains on the Commerce Department’s Entity List, restricting its access to certain US technology, software and chipmaking equipment. CXMT is not currently on that list, although there are reports that a US interagency committee previously approved it for inclusion.

Apple encountered similar opposition in 2022 when it considered using YMTC flash memory in some iPhones. The company dropped those plans after lawmakers raised national security concerns.

AI memory shortage limits Apple’s options

The dispute comes as AI data centers absorb a growing share of global memory production. Samsung, SK Hynix and Micron have directed more capacity toward high-bandwidth memory used in AI accelerators, reducing supplies available for smartphones, computers and other consumer products.

CXMT has become the world’s fourth-largest memory producer, while YMTC has expanded its position in NAND flash storage. The companies are gaining pricing power as buyers compete for limited supply, according to Reuters.

Apple has argued that it needs access to Chinese memory and has sought assurances that CXMT will not be added to the Entity List, Reuters reported, citing people familiar with the discussions.

Blocking both companies would leave Apple more dependent on Samsung, SK Hynix and US-based Micron. That could weaken Apple’s ability to negotiate prices while memory costs remain elevated.

For US investors, the immediate risk is margin pressure. Apple must either absorb higher component costs, pass them to customers through higher product prices, or redesign parts of its supply chain.

Apple stock falls as investors await its response

Apple shares closed at $338.19 on July 29, down 0.56%, after reaching an intraday high of $344.57. The reversal prevented the company from closing above a $5 trillion market value.

AAPL extended the decline during July 30 trading, falling about 1.8% in the morning as investors also prepared for Apple’s quarterly earnings report.

The Aug. 21 response will show whether Apple accepts the senators’ demand or continues evaluating Chinese memory for locally sold devices. Lawmakers also want to know whether Apple sought priority supply from US and South Korean manufacturers, making its answer relevant to the company’s sourcing plans for the 2027 iPhone cycle.

Separately, Apple faces a federal lawsuit from three users who allege that fake apps impersonating Sparrow Wallet appeared on its App Store and caused approximately $1.835 million in Bitcoin losses.

A fake Flare Network staking site robbed 71 investors of 3.4 million XRP worth roughly $8.5 million last year, Seoul police said.

Two men were detained on aggravated fraud charges and a third alleged scammer is on the loose, South Korean news outlet Chosun reported Thursday.

Authorities said investigations are ongoing as they believe the scam is much larger than they have been able to prove so far, adding that the scammers might have robbed up to $19 million worth of XRP, Chosun stated.

The Cyber Crime Investigation Unit at the Seoul Metropolitan Police said the scammers ran the fake investment site from Oct. 16 to Oct. 23 and tricked victims into believing that if they deposited “Rippke, you will receive a return of 1.5% to 1.8% every month,” Chosun said.

Police officials investigating the case said the alleged scammers created the fraudulent website using the name of a genuine blockchain project. They then disseminated false advertising through Naver blogs, online news articles, Wikipedia and YouTube, the news outlet said.

South Korean crypto markets saw a sharp burst in activity after the KOSPI suffered steep losses this week, highlighting how equity sell-offs can quickly redirect attention toward digital assets—and related products traded overseas. According to data from Upbit, trading between the Korean won and Tether (USDT) accelerated rapidly during the index’s decline.

Meanwhile, analysts are pointing to a different storyline in parallel: despite the macro pressure weighing on risk assets, Bitcoin has shown relative strength compared with large U.S. stock benchmarks. Bitwise’s latest research argues that the cryptocurrency’s performance is increasingly notable as financial conditions tighten.

Key takeaways

• Upbit KRW/USDT volume nearly hit 200 billion won (about 140 million USDT) on July 29, up from roughly 20 million USDT on July 25—about a 600% jump.
• Local analysis linked the surge to fund rotation away from Korean equities and toward crypto trading or stock-linked derivatives available through overseas venues.
• Prior KOSPI volatility showed a similar pattern: Upbit recorded a volume spike after a 10% one-day drop on July 14.
• Bitwise says Bitcoin has outperformed major U.S. mega-cap stocks and has remained comparatively “flat” since late June’s semiconductor peak.

KRW/USDT trading surges as equities slide

Upbit’s exchange data shows the most direct evidence of the equity-to-crypto link. Trading volume between KRW and USDT climbed rapidly between July 25 and July 29, according to the figures cited in reporting that referenced Upbit’s KRW/USDT market. On July 29, the volume approached 200 billion won (around 140 million USDT), compared with about 20 million USDT on July 25.

That surge arrived alongside a broader wave of downside momentum in South Korea’s KOSPI. The index’s sharp weekly decline—described in the coverage as close to 18% over the period—was tied to weakness in chip-related equities, particularly chip-maker stocks. The implication for investors is straightforward: when liquid, familiar markets begin to fall quickly, some participants look for alternatives that can be traded at any hour and can offer both spot exposure and leveraged strategies.

Local reporting cited analysis from Seoul Economic Daily suggesting that capital may have rotated out of stocks into crypto during the sell-off, or that traders sought access to derivatives tied to Korean equities through overseas exchange platforms. The same coverage also highlighted a possible preference for moving funds to overseas venues or personal wallets to trade perpetual equity futures.

“There is a possibility that demand increased for moving funds to overseas exchanges or personal wallets to trade perpetual stock futures,” said Cho Yoon-sung, a senior researcher at Tiger Research, according to the publication.

In other words, the KRW/USDT spike appears less like random day-trading noise and more like a measurable byproduct of stress in traditional markets. Traders can reposition quickly when the equity tape deteriorates—especially in environments where crypto already functions as a high-velocity risk market.

Stock sell-offs and “overseas” trading pathways

South Korea’s crypto ecosystem continues to be closely intertwined with how local investors express risk. The coverage emphasized that the country’s market remains highly active, with younger participants in particular showing a taste for leveraged products. That appetite tends to amplify volume responses when shocks hit adjacent assets like equities.

There is also a structural element: some investors may prefer to access certain equity-linked exposures through crypto-native derivatives offered by overseas platforms. When KOSPI volatility rises, the willingness to shift capital—either to trade crypto directly or to use perpetual contracts tied to equity themes—can increase.

What’s notable here is that the surge wasn’t entirely new behavior. Earlier in the month, Upbit reportedly registered a conspicuous volume spike after the KOSPI fell 10% in a single day on July 14, as described in earlier coverage referencing Yahoo Finance. That establishes a pattern: large, fast equity moves have previously coincided with elevated crypto trading activity.

Bitcoin’s resilience amid semiconductor pressure

While won-based volumes rose sharply in response to South Korean equity turmoil, analysts elsewhere were examining whether macro weakness would “spill over” into crypto performance. Andre Dragosch, European head of research at Bitwise, argued that Bitcoin has not behaved like a fragile extension of the semiconductor trade.

In commentary shared on social media and referenced by the reporting, Dragosch suggested that Bitcoin has been largely range-bound—“essentially flat”—since semiconductors peaked in late June. His framing is that the expected contagion from a semiconductor-driven risk repricing did not materialize in the way some market participants may have anticipated.

Bitwise’s broader analysis, released earlier in the week, reinforced that view through relative performance. The firm attributed what it called “remarkable outperformance” to Bitcoin versus a set of U.S. mega-cap stocks. In the coverage, Bitwise pointed to comparison benchmarks including large-cap tech exposure and even SpaceX (SpaceX was referenced as part of the comparison set in the text).

Bitwise’s argument went beyond simple relative returns. It linked Bitcoin’s strength to the possibility that the asset may already be pricing early signals of future monetary-policy easing—even while inflation remains a concern and near-term interest-rate hike risks persist. The firm also used the well-known “canary in the macro coal mine” metaphor to describe Bitcoin’s sensitivity to macro conditions.

Bitwise stated in its analysis that Bitcoin continues to show “remarkable outperformance and resilience” versus U.S. mega-cap stocks such as the Magnificent 7 and SpaceX (as cited in the coverage), calling the relative strength “all the more notable” amid tightening financial conditions.

For investors, this matters because it suggests crypto’s behavior is not simply being dictated by the same narrative driving equities. If Bitcoin’s relative strength persists, it may indicate that markets are treating Bitcoin less as an equity proxy and more as a separate macro instrument responding to different expectations—particularly around future policy.

What traders should watch next

The near-term question is whether the KOSPI-driven volume spike is a one-off reaction to a violent week, or a sign that equity volatility is again feeding crypto activity in South Korea. Traders should watch whether KRW/USDT volumes remain elevated through subsequent market days and whether Bitcoin’s outperformance versus U.S. mega-cap benchmarks holds as the macro narrative shifts.

Bitcoin traded with subdued volatility on Thursday as a rebound in US equities and a softer read on inflation reduced the pressure investors had placed on risk assets. In late US trading, BTC held near $64,500, largely steady from the prior day, after market attention shifted to June’s US Personal Consumption Expenditures (PCE) inflation release.

The PCE report showed inflation cooling to 3.7% year-on-year—matching expectations—while S&P 500 and Nasdaq Composite gains reflected a broader “risk-on” tone. Even so, commentators cautioned that the numbers still sit well above the Federal Reserve’s 2% target, keeping the longer-term debate about the inflation path alive.

Key takeaways

• Bitcoin largely shrugged off Thursday’s macro-driven volatility, holding around the $64,500 area as US stocks rebounded.
• June PCE inflation came in at 3.7% year-on-year, in line with forecasts, ending a short-term uptrend in the data.
• Despite the cooler print, inflation remains materially above the Fed’s 2% target, limiting “all clear” confidence.
• Bitwise CIO Matt Hougan argued that future interest-rate moves may be smaller—potentially reducing how strongly BTC reacts to rate headlines.

BTC stays range-bound as equities recover

Charting from TradingView showed BTC/USD action focusing around $64,500, with price behavior described as broadly unchanged versus the previous day. Earlier in the week, crypto had faced a headwind from a broad sell-off in semiconductor stocks, a move that spilled into other risk assets during US trading. That pressure eased on Thursday, helping keep Bitcoin from forcing a sharp reaction to the day’s macro catalyst.

At the time of writing, the S&P 500 was up about 1% and the Nasdaq Composite gained roughly 2.3%, reflecting improving sentiment across markets following the inflation data release.

PCE cools to 3.7%—but remains far above the Fed target

June’s PCE inflation print provided the day’s primary momentum. The year-on-year reading of 3.7% matched market expectations, while May’s figure had been 4.1%, which was described as the highest in three years. PCE is widely treated as the Federal Reserve’s preferred inflation measure because it is based on a broad basket of consumer spending and updates more quickly as consumer choices shift in response to prices. The Federal Reserve Bank of Cleveland describes this framing as a key advantage of the PCE approach.

In its release, the US Bureau of Economic Analysis (BEA) attributed the month’s increase in current-dollar PCE to higher spending—most notably services. The BEA said the $65.2 billion rise in current-dollar PCE reflected increases of $58.2 billion in spending on services and $7.0 billion in spending on goods.

Even with the cooling headline number—and the BEA noting a month-on-month decline—some market watchers treated the report as cautiously supportive rather than decisive. The Kobeissi Letter highlighted that the 3.7% rate was still the second-highest result since October 2024. The account also argued that inflation was running at nearly double the Fed’s 2.0% target.

Economist Steve Hanke also pushed back against complacency, describing inflation as a “genie the Fed just can’t put back in the bottle,” while emphasizing the mismatch between current inflation and the Fed’s goal.

Fed policy uncertainty persists—Bitwise expects weaker rate sensitivity

Beyond the inflation print, Thursday’s narrative also centered on interest-rate expectations. The Federal Reserve left rates unchanged at its latest meeting on Wednesday, with an emerging split among Federal Open Market Committee (FOMC) members over the appropriate policy path.

Matt Hougan, chief investment officer at Bitwise, argued that Bitcoin’s sensitivity to future rate announcements may be lower than what investors have historically experienced. On social media, Hougan pointed to the pattern of rate swings during Bitcoin’s history—ranging across very wide levels—and suggested that future changes may be more incremental. His comment referenced CME Group’s FedWatch Tool, which implies a smaller trajectory for rates over the coming year compared with prior cycles.

Hougan also tied his view to expectations around leadership. He stated that new Fed chair Kevin Warsh is likely to echo former chair Alan Greenspan in terms of the scale of policy moves, contrasting that with Jerome Powell. In addition, he referenced earlier signals from US President Donald Trump suggesting Warsh would take a more dovish stance on policy, a development that, if realized, could support risk-asset performance and reduce the market’s fear of abrupt tightening.

What investors should watch next

Bitcoin’s muted reaction to Thursday’s macro headlines suggests investors are still willing to hold through volatility when equities stabilize, but the debate over whether inflation is truly on a sustainable path remains unresolved. The next key factor will be whether incoming PCE reads continue to ease toward the Fed’s target and whether rate expectations—tracked via tools like CME FedWatch—continue to shift more gradually rather than re-pricing abrupt policy changes.

Bitcoin (BTC) shook off volatility on Thursday as US stocks rebounded on the back of inflation-data relief.

Key points:

• Bitcoin avoids a snap reaction to US personal consumption expenditures (PCE) inflation data, which reverses a local uptrend.
• Analysis remains wary of inflationary tendencies despite PCE conforming to expectations.
• Bitwise predicts that going forward, Bitcoin will become less sensitive to Fed interest-rate changes.

PCE ends uptrend while staying above Fed inflation target

Data from TradingView showed BTC price action focusing on $64,500, broadly unchanged from the day prior. 

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

The major risk-asset headwind from earlier in the week in the form of a mass sell-off in semiconductor stocks eased on the day, sparing crypto during the US trading session. The S&P 500 index and Nasdaq Composite index were up 1% and 2.3%, respectively, at the time of writing.

Nasdaq Composite Index one-day chart. Source: Cointelegraph/TradingView

The June print of the US Personal Consumption Expenditures (PCE) index added another positive catalyst, this coming in at 3.7% year-on-year — in line with market expectations. May’s PCE print, at 4.1%, was the highest in three years.

PCE is considered the Federal Reserve’s preferred inflation measure as it offers a broader and more comprehensive measure of inflation and more quickly picks up adjustments in consumers’ choices in response to price changes, according to the Federal Reserve Bank of Cleveland.

“The increase in current-dollar personal income in June primarily reflected increases in compensation, personal income receipts on assets, and government social benefits that were partly offset by a decrease in farm proprietors’ income,” the US Bureau of Economic Analysis (BEA) said. The BEA said in its data release: 

“The $65.2 billion increase in current-dollar PCE in June reflected increases of $58.2 billion in spending on services and $7.0 billion in spending on goods.”

US PCE data percentage change (screenshot). Source: BEA

While ending an uptrend in PCE numbers and showing the first month-on-month decline since 2020, the June print sparked conservative reactions. Trading resource The Kobeissi Letter noted that the 3.7% figure was still the second-highest result since October 2024.

“US inflation continues to run at nearly double the Fed’s 2.0% target,” it said on X.

Johns Hopkins economist Steve Hanke described inflation as “the genie the Fed just can’t put back in the bottle,” while also noting the mismatch with its 2% target.

Bitwise CIO sees BTC brushing off future rate cues

The Federal Reserve left interest rates unchanged at its latest meeting on Wednesday, with an emerging split among the Federal Open Market Committee (FOMC) members regarding appropriate policy.

Related: South Korean crypto trading surges amid stock market plunge

Following the event, Matt Hougan, chief investment officer at crypto asset manager Bitwise, forecast that future interest-rate announcements would have less impact on BTC price performance.

“Rationale: Throughout bitcoin’s history, interest rates swung wildly — from 0% to 2.5% to 0% to 5% to 3.5%.  Changes have been measured in whole percentage points. But future changes seem likely to be more modest; the CME expects a 50bps rise over the next year,” he told X followers, referring to rate expectations as measured by CME Group’s FedWatch Tool.

Fed target-rate probabilities (screenshot). Source: CME Group

Hougan said that new Fed chair, Kevin Warsh, will likely echo former chair Alan Greenspan with the scale of rate changes, diverging from his immediate predecessor, Jerome Powell.

Prior to Warsh’s appointment, US president Donald Trump gave repeated signals that he expected Warsh to adopt a dovish stance on the issue, a move that would bolster risk-asset performance.

Asset management giant BlackRock has continued to expand into the Ethereum ecosystem, dipping its toes in Ethereum DeFi, and launching staked ether ETFs, while JPMorgan deepened its blockchain-based settlement initiatives. Together, these efforts illustrate a broader institutional shift toward using Ethereum as the base layer for tokenized real-world assets, drawn by its security, composability and mature developer ecosystem.

TradFi’s growing acceptance of Ethereum is also evident in the markets. Since their launch in 2024, spot U.S. Ethereum spot exchange-traded funds (ETFs) have accumulated more than $11.23 billion in net inflows, reflecting steadily increasing institutional demand for exposure to ETH. Just as importantly, institutions are no longer limiting their relationship with Ethereum to holding its native asset. They are increasingly issuing financial products directly on the network itself.

That contrast may ultimately define Ethereum’s eleventh year. Internally, the ecosystem has experienced one of the most consequential periods of introspection in its history, forcing its leading institution to rethink its structure, leadership and purpose. Externally, Ethereum has never appeared more firmly embedded within the global financial system.

For much of its first decade, Ethereum’s challenge was proving that decentralized infrastructure could work. Its second decade begins with a different challenge: ensuring that the institutions surrounding that infrastructure can evolve without compromising the decentralized principles that made Ethereum possible in the first place.

Tokenized asset specialist Ondo Finance is evaluating a potential acquisition of between $250 million and $500 million, according to a person with knowledge of the matter.

The New York-based company is considering wealthtech targets, among other subsectors, said the person, who spoke on condition of anonymity because the matter is private.

Ondo has not yet appointed any formal advisers, the person said.

Founded in 2021 by former Goldman Sachs executives, Ondo Finance is a tokenization platform that brings traditional financial assets onchain. The company issues tokenized U.S. Treasuries and stocks and has become one of the largest providers of tokenized real-world assets, with more than $2.5 billion across its products.

“As a fast-growing company, Ondo regularly evaluates the market as part of normal business operations. We are not in conversations with any party at this time,” an Ondo representative said in emailed comments to CoinDesk.

Crypto dealmaking has remained strong in 2026 as traditional financial firms and larger digital-asset companies use acquisitions to add licenses, technology and distribution.