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CLARITY Act Timeline Narrows as April Senate Deadline Looms

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Brian Armstrong's Bold Prediction: AI Agents Will Soon Dominate Global Financial

TLDR

  • Senate Banking Committee approval before April’s end is critical, or the CLARITY Act’s 2026 passage probability plummets
  • Prediction markets show declining confidence: Polymarket at 56% (down 9 points), Kalshi at merely 30% by June
  • Central controversy revolves around permitting stablecoin issuers to distribute yield to holders
  • Coinbase withdrew endorsement in January, asserting a flawed bill is worse than no legislation
  • Gnosis co-founder cautions the legislation might consolidate crypto control among centralized entities

Time is running short for the CLARITY Act, America’s proposed cryptocurrency market structure legislation. According to Galaxy Research head Alex Thorn, the bill requires Senate floor consideration by early May to maintain viable 2026 passage prospects. This necessitates Senate Banking Committee clearance before April concludes.

Senate Majority Leader John Thune has publicly acknowledged the April timeline appears unrealistic. Current Senate priorities center on the SAVE America Act, relegating the CLARITY Act to secondary status on the legislative calendar.

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According to Thorn, each day of postponement reduces available time for floor consideration. Without committee approval during April, he characterized 2026 passage prospects as “extremely low.”

Prediction platforms mirror this growing skepticism. Polymarket indicates the legislation’s 2026 enactment probability has declined 9 percentage points to 56%. Kalshi demonstrates greater pessimism, calculating 30% likelihood before June and merely 7% before May.

Stablecoin Yield Remains Central Flashpoint

The most contentious issue involves stablecoin yield distribution. The controversy focuses on whether stablecoin issuers should possess authority to pass interest earnings to users.

Representative French Hill stated that prohibiting stablecoin yield represents a non-negotiable requirement for Senate advancement. Traditional banking institutions contend that interest-bearing stablecoins would divert deposits from regulated financial entities.

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Cryptocurrency firms counter that reward-bearing stablecoins enhance payment utility. Coinbase retracted support during January. CEO Brian Armstrong argued the current draft undermines decentralized finance, prohibits stablecoin yield, and restricts tokenized real-world assets. “We’d rather have no bill than a bad bill,” he declared.

Senator Angela Alsobrooks suggested compromise from both factions may prove necessary. White House crypto adviser and Coinbase CLO Paul Grewal also condemned banks for impeding progress.

DeFi and Regulatory Turf Wars Still Unresolved

Thorn suggested the stablecoin controversy may not represent the final hurdle. He identified outstanding questions regarding decentralized finance regulation, developer liability protections, and SEC-CFTC jurisdictional boundaries.

Attorney Jake Chervinsky noted that banking institutions also express concern about stablecoin liquidity migrating toward DeFi platforms, beyond just yield distribution issues.

Gnosis co-founder Dr. Friederike Ernst cautioned the bill’s present framework threatens to channel all cryptocurrency activity through licensed intermediaries. She expressed concern this could consolidate crypto infrastructure control among a limited group of major institutions.

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Ernst acknowledged the legislation includes positive elements, such as safeguarding peer-to-peer transactions and self-custody rights, plus defining SEC and CFTC regulatory boundaries.

Senator Bernie Moreno expressed continued optimism for April passage and presidential signature. Thorn indicated that schedule now appears increasingly unrealistic.

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Why Bitmine Just Bought Another 61,000 ETH

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Why Bitmine Just Bought Another 61,000 ETH


The company’s total stash is worth $11.5 billion, it said in a recent statement.

The Tom Lee-chaired former Bitcoin mining giant has announced the acquisition of almost 61,000 ETH in the past week, which has pushed its total stash to nearly 4.6 million tokens.

In addition, BitMine said it increased its investment in existing ‘moonshot’ exposures such as Eightco by an additional $80 million to support the latter’s $50 million purchase of OpenAI equity, making it the only publicly listed entity to give investors direct exposure to the company behind ChatGPT.

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“Since the start of the Iran war, crypto prices have outperformed and Ethereum has outperformed the S&P 500 by 2,450bp. This is a meaningful outperformance in a mere two weeks,” said Thomas “Tom” Lee, Chairman of Bitmine.

Lee added that higher oil prices will trigger concerns of slowing growth for the global economy, which would push investors to buy growth stocks such as MAG7, software, and crypto.

In its latest Ethereum acquisition of 60,999 tokens, Lee explained that the firm he chairs has ramped up the pace of such purchases as they believe the asset is in the final stages of the mini-crypto winter.

He asserted that BitMine has “staked more ETH than other entities in the world. At scale, the ETH staking rewards are $272 million annually.”

The company’s total stash, which includes its ETH fortune, 196 BTC, a $200 million stake in Beast Industries, a $83 million stake in Eightco, and $1.2 billion in cash, has risen to $11.5 billion. Its Ethereum holdings represent 3.81% of the entire asset supply.

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While being the first in the Ethereum treasury world, BitMine is the second overall in crypto, trailing only to Michael Saylor’s Strategy, which announced its latest gigantic BTC purchase earlier today.

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Whitehat hacker accuses Injective of ghosting after $500M bug disclosure

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Whitehat hacker accuses Injective of ghosting after $500M bug disclosure

A whitehat hacker has gone public over a months-long feud with the team behind Injective over its response to a critical bug disclosure.

According to the report, the vulnerability in question put $500 million at risk via a faulty validation system.

The pseudonymous crypto security researcher, who goes by the moniker al_f4lc0n, has accused Injective of ghosting them for three months, despite fixing the bug, and later lowballing the bounty payout.

Read more: Ethereum address poisoning spike, ‘wallets aren’t ready’ says researcher

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The bug

The bounty hunter uploaded a full bug report to a GitHub repository called “injective-wall-of-shame.”

In the repo’s readme, entitled “I Saved Injective’s $500M. They Pay Me $50K,” they explain that the vulnerability allowed “any user to directly drain any account on the chain. No special permissions needed.”

The more detailed technical report describes how a faulty subaccount validation system allowed for an attacker to submit market orders on other users’ behalf.

The bug was exploitable by an attacker creating a worthless token and creating a spot market, pairing it with USDT. Both these actions are permissionless on Injective.

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Then, by creating a sell order of the fake token, the attacker could force victim accounts to buy the worthless token for USDT, “at the attacker’s chosen price.” The USDT could then be permissionlessly bridged off Injective, to Ethereum.

The report claims this put all value on the blockchain at risk, and that the total was over $500 million at the time of disclosure.

The figure currently sits at $280 million, the vast majority of which is in the INJ token.

Embed: Oracle error adds to turmoil at DeFi giant Aave

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The bounty

Injective is a blockchain network which lists the likes of Binance, Jump, Google and Pantera as partners, claiming “institutional and government players are joining us.”

Bug bounties are a common way for organizations to crowdsource continuous security monitoring from specialist whitehat bounty “hunters.”

Injective’s ImmuneFi page lists a maximum bounty of $500,000 for critical threats related to its blockchain and smart contracts.

The researcher claims, “a mainnet upgrade to fix the bug went to governance vote. The Injective team clearly understood the severity.”

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They also allege that injective “ghosted” for three months after the fix, before offering a bounty 10x lower than the maximum. “To be clear: the $50K has not been paid either,” they stress. 

Protos has reached out to Injective for comment on al_f4lc0n’s claims, but hadn’t received a response before publication. This article will be updated should we receive one.

Got a tip? Send us an email securely via Protos Leaks. For more informed news, follow us on XBluesky, and Google News, or subscribe to our YouTube channel.

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South Korea Hits Bithumb With $24.5M Fine Over AML Violations

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South Korea Hits Bithumb With $24.5M Fine Over AML Violations

South Korea has fined crypto exchange Bithumb 36.8 billion won (about $24.5 million) and imposed a six-month partial business suspension after finding widespread violations of Anti-Money Laundering (AML) rules, according to a Yonhap News Agency report. 

According to Yonhap, regulators identified about 6.65 million violations during an AML inspection, including failures related to customer identity verification, transaction restrictions and record-keeping requirements. Authorities found Bithumb facilitated 45,772 crypto transfers involving 18 unregistered overseas virtual asset service providers (VASPs), in violation of South Korea’s AML rules. 

The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) reportedly decided on the penalties following a sanctions deliberation committee meeting reviewing the exchange’s compliance with the Act on Reporting and Use of Specific Financial Transaction Information. 

The sanction includes the largest fine yet imposed on a South Korean crypto exchange, following an ongoing regulatory crackdown on AML compliance.

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South Korea imposes a six-month partial ban on Bithumb

Under the measures, Bithumb will be banned from processing external crypto transfers for new customers for six months, from March 27 to Sept. 26.

However, existing users will face no trading restrictions, while new customers can still buy or sell crypto and deposit or withdraw Korean won from the exchange. 

Related: South Korea plans to use AI for crypto tax enforcement

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The FIU said it had repeatedly warned Bithumb to halt transactions with unregistered overseas crypto firms. However, the regulator said the exchange failed to comply and was unable to implement effective blocking measures. 

On March 9, the FIU gave Bithumb a preliminary notice of a six-month partial suspension, citing its concerns over Bithumb’s violations before determining the final sanctions.

South Korea’s broader AML enforcement drive

Apart from Bithumb, the FIU has also previously penalized other South Korean exchanges for AML violations.

In February 2025, the regulator imposed a three-month restriction on crypto deposits and withdrawals for new Upbit customers after finding violations tied to dealing with unregistered VASPs. Upbit also received a 35.2 billion won (about $23.5 million) penalty.

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The crackdown later reached crypto exchange Korbit. In December 2025, the FIU imposed a 2.73 billion won (about $1.8 million) fine and an institutional warning on the exchange over AML and customer-verification breaches.