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Stratton wins Illinois Senate primary, defeating crypto-backed Krishnamoorthi

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Stratton wins Illinois Senate primary, defeating crypto-backed Krishnamoorthi

Illinois Lieutenant Governor Juliana Stratton is poised to become the next Senator from the state after winning the Democratic primary Tuesday night, defeating Representative Raja Krishnamoorthi.

Krishnamoorthi had received north of $8 million in backing from crypto super-political action committee (PAC) Fairshake, among other entities, while Stratton was backed by Illinois Governor JB Pritzker. Illinois’ senate seat is rated a “Solid Democratic” seat by Cook Political Report, meaning the winner of Tuesday’s primary will most likely win the general election this November and represent the Prairie State in the Senate in 2027.

Fairshake’s ads largely attacked Stratton, rather than supporting Krishnamoorthi directly, a strategy it also employed in the 2024 election. The PAC typically supports candidates in primaries for races they’re likely to win, letting it boast that the vast majority of its backed candidates won elections in 2024.

Stand With Crypto, a Coinbase-backed group that assigns rates to lawmakers based on how crypto-friendly they are, gave Stratton an “F” ranking based on a single statement she made about her primary opponent receiving backing from “MAGA-backed crypto bros.” The rating notes that she has not voted on any crypto bills or otherwise made statements about crypto generally.

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Krishnamoorthi received an “A” rating based on his voting record and his responses to a questionnaire sent out by the group.

Another candidate Fairshake opposed, La Shawn Ford, won his primary race as well, according to the Associated Press. Fairshake spent nearly $2 million opposing Ford’s race for the House of Representatives. Ford’s team sent the PAC a cease-and-desist alleging Fairshake’s ads were “defamatory,” according to the Forest Park Review.

A spokesperson for Fairshake did not immediately return a request for comment on either race, or on Ford’s allegations.

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CLARITY Act Faces Critical April Deadline as Senate Committee Prepares to Vote

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

Key Points

  • Senator Bill Hagerty anticipates the CLARITY Act will advance to the Senate Banking Committee during April
  • The legislation aims to transfer primary crypto regulation from the SEC to the CFTC
  • Disagreements over stablecoin yield provisions have caused delays, but recent discussions suggest a breakthrough
  • Senate Banking Committee Chairman Tim Scott hasn’t announced a markup session date
  • Polymarket traders estimate a 63% probability of Trump enacting the legislation in 2025

During remarks at the Digital Assets and Emerging Tech Policy Summit held at Vanderbilt University on Monday, Senator Bill Hagerty projected that the CLARITY Act would proceed through the Senate Banking Committee over the coming weeks, establishing an April timeframe for the landmark crypto regulation bill.

Hagerty expressed optimism that the legislation could successfully navigate the banking committee before April concludes, provided that lingering concerns are addressed satisfactorily.

“There’s still a lot more work to do,” Hagerty acknowledged, though he emphasized that none of the remaining challenges were “insurmountable.”

The CLARITY Act secured House passage in July under its current title. Senate progress has been hindered by disputes surrounding stablecoin interest payments, ethical considerations, and resistance from certain cryptocurrency industry factions.

The proposed legislation would reallocate crypto market oversight responsibilities primarily from the Securities and Exchange Commission to the Commodity Futures Trading Commission. Given both regulatory bodies’ involvement, the bill requires endorsement from the Senate Agriculture Committee as well as the Senate Banking Committee.

The Agriculture Committee moved its iteration of the bill forward in January. The Banking Committee must still conduct a markup session before the legislation can advance to a full Senate floor vote.

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Progress Emerges on Stablecoin Yield Standoff

The debate over stablecoin yield mechanisms has represented the most significant obstacle. Cryptocurrency firms, notably Coinbase, had raised objections to previous language that imposed sweeping restrictions on stablecoin reward programs.

Sources from both the crypto and banking sectors informed Crypto in America last week that representatives from both industries examined revised stablecoin yield provisions and express cautious optimism about reaching consensus. The specific wording of the updated language remains confidential.

Paul Grewal, Chief Legal Officer at Coinbase, expressed confidence that an agreement would materialize. He indicated to reporters last week that legislators were “close to a deal” on outstanding matters.

Committee Markup Timing Remains Uncertain

Senate Banking Committee Chairman Tim Scott hasn’t established a timeline for the markup session. The committee has also remained silent on whether it intends to publish a revised draft for public review.

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Pro-cryptocurrency Senator Cynthia Lummis has suggested a markup could occur this month. However, pro-XRP attorney and Senate candidate John Deaton cautioned that delays extending into summer would likely redirect Congressional attention toward midterm election campaigns, potentially dooming the bill.

Hagerty recognized the political timeline pressure. “If we get this done in April, we can clearly get this taken care of before the midterms,” he stated.

Cryptocurrency-focused political action committees are mobilizing for 2026 campaigns. Fairshake disclosed a $193 million fundraising total designated for the November midterm elections. The Fellowship PAC, which claims to have secured more than $100 million from crypto-supportive donors, announced Tether executive Jesse Spiro as its new chairman this week.

Polymarket trading currently indicates 63% probability of Trump signing the CLARITY Act into law during 2025, although those odds temporarily declined to 50% in recent trading.

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Worldcoin Prices Dips As Sam Altman’s Trust Crisis Deepens With New SBF Comparison

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A New Yorker investigation accuses OpenAI CEO Sam Altman of systematic deception, drawing direct comparisons to Sam Bankman-Fried (SBF) and Bernie Madoff from senior Microsoft executives.

Worldcoin (WLD), the crypto project Altman co-founded, fell 2.9% to $0.2432 as the revelations hit social media. The token is down over 10% in the past seven days.

The SBF Shadow Over Sam Altman

The 15,000-word article by Ronan Farrow and Andrew Marantz draws on interviews with over 100 people. An unnamed OpenAI board member described Altman’s behavior in stark terms.

“He has two traits that are almost never seen in the same person. The first is a strong desire to please people, to be liked in any given interaction. The second is almost a sociopathic lack of concern for the consequences that may come from deceiving someone,” wrote The New Yorker, citing an OpenAI Board Member.

Multiple senior Microsoft executives allegedly told the reporters that OpenAI’s CEO had repeatedly misrepresented agreements and reneged on deals.

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One said there was a real chance Altman would be remembered alongside Madoff or SBF as a major financial fraud.

Katie Miller amplified the comparison on X (Twitter), arguing that those who worked closest with Altman, including Elon Musk and Anthropic CEO Dario Amodei, consistently flagged him as dishonest.

Elon Musk responded to the story by writing that Altman is “not who you want in charge of superintelligence.”

OpenAI’s Financial Cracks Widen

The exposé lands during an already turbulent period for OpenAI. CFO Sarah Friar reportedly told colleagues the company is not ready for its planned 2026 IPO.

Based on reports, she warned that slowing revenue growth may not sustain spending of over $600 billion on committed servers through 2030.

Altman has responded by excluding Friar from key financial discussions, according to The Information.

Since August 2025, she no longer reports directly to him. This structural shift raises governance questions ahead of what could be one of the largest IPOs in history.

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What This Means for Worldcoin

WLD now trades at $0.2432 with a market cap of roughly $790 million. The token faces additional supply pressure from a major cliff unlock on July 23, releasing 52.5% of the total supply.

Worldcoin (WLD) Price Performance
Worldcoin (WLD) Price Performance. Source: Coingecko

Altman’s credibility is not just a corporate governance issue. It directly affects investor confidence in every project tied to his name.

With Worldcoin already near all-time lows, the convergence of founder risk and token dilution creates a challenging environment for holders watching the SBF comparisons gain traction.

The post Worldcoin Prices Dips As Sam Altman’s Trust Crisis Deepens With New SBF Comparison appeared first on BeInCrypto.

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SEC crypo safe harbor framework reaches White House

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SEC crypo safe harbor framework reaches White House

Progress on a potential crypto safe harbor framework is now entering a key regulatory phase as it is up for White review.

Summary

  • SEC has submitted its crypto safe harbor proposal to the White House for review ahead of public release.
  • Framework introduces startup and fundraising exemptions along with a pathway for assets to exit securities classification.

US Securities and Exchange Commission Chair Paul Atkins said the agency’s proposed “Regulation Crypto Assets” package has been submitted to the Office of Information and Regulatory Affairs, placing it under White House review ahead of publication.

“We will have reg crypto that we will be proposing here shortly. It’s in fact at OIRA right now, which is the next step before being published,” Atkins said during remarks at the Digital Assets and Emerging Technology Policy Summit.

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The regulatory process now moves through OIRA review before publication in the Federal Register, where it will be opened for public comment. That stage often determines how proposals are adjusted before any final adoption.

As previously reported by crypto.news, Atkins first detailed plans for the framework earlier this month. The proposal outlines a three-part framework designed to address how crypto projects raise capital and transition out of securities classification. 

One component introduces a startup exemption, allowing early-stage ventures to raise funds over a four-year period with lighter disclosure requirements. Another creates a fundraising exemption that permits issuers to raise capital within a 12-month window while maintaining access to other registration exemptions under federal securities laws.

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A central feature of the package is an investment contract safe harbor. Under this approach, certain digital assets could fall outside securities classification once project teams step back from managerial roles that were previously promised or implied during fundraising.

Atkins indicated that parts of the framework are still being refined, with the SEC seeking industry input to ensure the rules are workable in practice. Additional elements, including exemptive relief and safe harbor protections, are being built into the proposal as the agency shapes the final structure.

Meanwhile, the commission, led by Paul Atkins, has also stepped up efforts to ease its enforcement-first approach and clarify other parts of the crypto market.

The SEC has signed a Memorandum of Understanding with the Commodity Futures Trading Commission. Both agencies have agreed to eliminate any friction that could hamper rule-making in the future.

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Lawmakers are also negotiating whether the Digital Asset Market Clarity Act should allow stablecoin yields.

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Grayscale Says Bitcoin’s Quantum Problem is Mostly a Social One

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Grayscale Says Bitcoin’s Quantum Problem is Mostly a Social One

The challenge to solving the quantum threat to Bitcoin could be more social than technical, according to Grayscale’s head of research, especially if the community fails to come to an agreement on certain contentious issues.

Google released a paper that shook the crypto industry on March 30, suggesting that a quantum computer could potentially crack the cryptography protecting Bitcoin (BTC) using far fewer resources than previously thought.

Grayscale head of research Zach Pandl, however, suggested the problem for Bitcoin doesn’t come from its technical solution, as “bitcoin has lower risk than other cryptocurrencies” because it uses a UTXO model and proof-of-work consensus, does not have native smart contracts and certain address types are not quantum vulnerable.

Instead, the challenge would be for the community to reach a decision on the way forward, said Pandl. 

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The Bitcoin community has been fiercely debating what to do about old dormant coins, particularly the roughly 1.7 million BTC locked in early P2PK addresses, including Satoshi’s estimated 1 million BTC stash, currently worth about $68 billion. 

The Bitcoin community has three options 

The Bitcoin community needs to decide what to do about coins where the private key has been lost or is otherwise inaccessible, wrote Pandl. 

They have three main options: burning the coins, deliberately slowing their release by limiting the rate of spending from vulnerable addresses or doing nothing. 

“All are conceptually doable, but the challenge is reaching a decision, and the Bitcoin community has a history of contentious debates over protocol changes, including last year’s dispute around image data stored in blocks.”

Pandl was referring to a big fracas that erupted in 2023 over the use of blockspace for Bitcoin Ordinals, technology that enables inscribing data such as text and images to a satoshi, the smallest unit of Bitcoin. 

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Two years later, the debate may have quietened down, but the two sides continue to hold opposing views.

Related: Researchers say quantum computers could, in theory, be ready by 2030

About 1.7 million BTC is vulnerable to the quantum threat. Source: Grayscale

No threat now but time to get started

Pandl cautioned that it was “time to get started” and that blockchains need to adopt post-quantum cryptography, echoing the sentiment from Google. 

Both Solana and the XRP Ledger are already experimenting with post-quantum cryptography, wrote Pandl. Meanwhile, the Ethereum Foundation released its post-quantum roadmap in February.

Pandl concluded that investors “should not fret” for now, but it is time to accelerate efforts to prepare for our post-quantum future. 

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“In our view, there is no security threat to public blockchains from quantum computers today.”

Magazine: Nobody knows if quantum secure cryptography will even work