Crypto World
Trump accepts sweeping crypto ethics rules to rescue CLARITY Act
The White House has accepted what it calls the most extensive federal ethics restrictions ever proposed as the CLARITY Act seeks the Democratic votes needed to clear the Senate’s 60-vote threshold.
Summary
- The White House accepted extensive ethics rules addressing Democratic concerns over Trump’s crypto interests.
- CLARITY still needs Democratic support to reach the Senate’s 60-vote threshold.
- Bitcoin topped $66,000, while Polymarket placed the bill’s 2026 passage odds at 48%.
Punchbowl News reported on Tuesday that White House officials reached an agreement on ethics language during talks with Republican Senators Cynthia Lummis and Bernie Moreno. The provision could apply to President Donald Trump’s crypto interests, although neither senator has released its wording or explained how it would be enforced.
A White House official confirmed the concession in a recent statement, describing the proposed language as “the most comprehensive and wide-ranging ethics provision in history.” According to the official, the administration had “bent over backward” to address concerns raised by Democratic lawmakers.
The agreement removes one of the main disputes holding up the Digital Asset Market Clarity Act, but it does not guarantee enough Democratic support for passage. The Senate has not published its final text or placed a floor vote on its calendar, leaving lawmakers with a limited window before the chamber’s August state work period.
Ethics deal removes a key Senate obstacle
Democratic senators have made restrictions on political crypto dealings a condition for supporting the legislation. Elizabeth Warren, Chris Murphy, Jeff Merkley and Chris Van Hollen previously argued that a market structure bill would be “worthless” unless it addressed Trump’s links to the digital asset industry.
Their concerns include Trump’s namesake memecoin and his family’s involvement with World Liberty Financial. Democrats have also requested congressional hearings into the president’s investments and other connections to crypto companies before the Senate holds a vote.
Details of the White House compromise remain unclear, including whether its limits would cover the president’s family and which authority would enforce them. Barron’s reported that some Democrats were concerned enforcement could rest only with the Trump-controlled Department of Justice instead of also allowing action by state attorneys general.
Earlier negotiations had shown how difficult the ethics issue could be. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, told CoinDesk in May that the administration supported rules applying “from the president all the way down to the brand new intern on Capitol Hill,” but opposed provisions written against one official or family.
Senate negotiators have resolved or narrowed some other disputes while the ethics talks continued. Coinbase vice chair Ryan VanGrack recently said that Democrats had secured stronger customer safeguards, giving the Senate legislation “more teeth” than earlier versions.
“At the end of the day, this is about customer protections. The status quo lacks this infrastructure, lacks these protections, and the Democrats used this opportunity, wisely, to make sure that customers were first and foremost in [this bill].”
Stablecoin rewards, anti-money laundering controls, tokenized securities and protections for software developers have also complicated negotiations. As reported by crypto.news in May, the Senate Banking Committee advanced the bill with support from every Republican on the panel and Democratic Senators Ruben Gallego and Angela Alsobrooks, producing a 15-9 vote.
Despite backing the committee action, Gallego and Alsobrooks did not commit to supporting the eventual floor version because negotiations were still underway. Republicans would therefore need to preserve that support and attract more Democrats to reach 60 votes in the full Senate.
The House passed its CLARITY Act version in July 2025 during Republicans’ “Crypto Week.” The proposal would divide oversight of digital assets between federal regulators and set standards for deciding when tokens fall under securities or commodities rules.
Bitcoin rises while passage odds remain below 50%
Crypto-linked markets climbed after reports of the White House agreement. Bitcoin traded above $66,000 on Tuesday and reached a seven-week high, while Coinbase shares rose about 10% and Circle gained roughly 7%.
Prediction-market traders remained less convinced. A Polymarket contract shown on Tuesday assigned a 48% chance that the CLARITY Act would become law in 2026, down 17 percentage points, with about $2.11 million in recorded volume. The contract’s pricing indicated that traders still viewed passage as uncertain despite the reported ethics agreement.
President Trump had pressed senators to approve the legislation “in honor of” the late Senator Lindsey Graham, whom he described as a major supporter of the measure. Industry executives, including Coinbase representatives, have also urged Congress to establish federal market rules.
Still, the missing legislative text leaves the effect of the ethics compromise untested. Until Democratic senators review the provision, disclose their positions and help schedule a floor vote, the White House agreement remains a potential route to 60 votes rather than proof that the CLARITY Act will pass.
Blockchain security firms linked the collapse to a suspected attack on 42DAO, the decentralized organization that governs the Balance Protocol ecosystem.
The war against Iran has run up a heavy bill for the United States, now pegged at $37.5 billion.
The estimate, delivered by Defense Secretary Pete Hegseth, arrives as US strikes on Iran continue for an 11th straight night.
US Defence Secretary Puts Iran War Cost at $37.5 Billion
Hegseth presented the figure to the Senate Appropriations Committee on Tuesday. He said the $37.5 billion covered certain aspects of the war plus anticipated costs through September 30.
Cost estimates have risen sharply since the conflict. Reuters reported in March that the administration valued the first six days of fighting at a minimum of $11.3 billion.
The latest $37.5 billion figure sits roughly $12 billion above the $25 billion estimate Hegseth gave in late April. He offered that number just before Trump brokered a temporary ceasefire with Iran.
The administration is also pressing for more money. In late June, it asked Congress for $87.6 billion in extra funding.
The New York Times reported that as much as $70 billion of that would go to emergency military spending. The funds would cover war costs and pay for new weapons and personnel.
The Pentagon wants $46 billion to expand munitions production. That includes precision bombs, hypersonic missiles, and counter-drone systems.
“This is a new request based on new realities of a world we face, stepping up to meet that moment,” Hegseth stated.
Ordinary Americans are absorbing costs too. Brown University’s Watson Institute estimates that higher gasoline and diesel prices have added $71.8 billion in consumer spending since the war began. That works out to about $548 per US household.
Follow us on X to get the latest news as it happens
US-Iran Ceasefire Proposal Lands as Strikes Hit 11th Night
Diplomacy has run in parallel with the fighting. A senior Iranian official told Reuters on Monday that mediators had handed Tehran a de-escalation proposal.
The plan floats a 10-day ceasefire. The pause would create room to revive an interim deal struck last month.
Those talks have not slowed the strikes. CENTCOM said it finished its 11th consecutive night of operations against Iran on Tuesday evening.
According to CENTCOM, the strikes hit military command centers, aircraft hangars, drone storage sites, and naval assets. The stated goal is to blunt threats to shipping in the Strait of Hormuz.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
The post How Much Has the Iran War Cost the US? Defence Secretary Puts a Number on It appeared first on BeInCrypto.
Aztec has launched the alpha version of its v5 execution layer, introducing a programmable privacy framework that allows Ethereum applications to process both public and private state within the same layer-2 environment.
Summary
- Aztec has released the alpha version of its v5 execution layer, bringing programmable privacy to Ethereum through zero knowledge powered smart contracts.
- The new architecture processes private computations on user devices while verifying transactions on chain without exposing sensitive data.
- Aztec said the execution layer supports confidential decentralized applications with features designed to reduce front running and MEV risks.
Aztec Labs announced the alpha release of its v5 execution layer, describing it as a step toward making privacy-native smart contracts practical on Ethereum.
The new architecture allows developers to build decentralized applications that combine confidential user data with public blockchain state while relying on zero-knowledge proofs to verify transactions without exposing sensitive information.
Unlike Ethereum’s base layer, where every validator processes and stores transaction inputs, outputs, and execution data to reach consensus, Aztec’s execution layer moves private computation to the user’s device. Instead of revealing transaction details to the network, the system generates cryptographic proofs locally before submitting them for verification on-chain, reducing the amount of visible transaction data while preserving Ethereum’s security guarantees.
Client-side execution changes how private transactions are processed
At the center of the release is a client-side zero-knowledge execution engine integrated with Noir, Aztec’s domain-specific programming language for private smart contracts. Rather than executing confidential transactions across every network node like the Ethereum Virtual Machine, the system performs private computations on user hardware before generating recursive Succinct Non-Interactive Arguments of Knowledge, or SNARKs.
Those proofs allow the network to verify that state changes are valid without exposing plaintext inputs, transaction values, or account identities. According to Aztec Labs, the model cuts unnecessary data disclosure while maintaining mathematical guarantees that transactions have been executed correctly.
The architecture also introduces a hybrid state model designed to overcome one of the biggest engineering challenges facing privacy-focused blockchains. Purely private execution environments often struggle when multiple users attempt to update the same public state at the same time, creating state contention that limits interaction with shared decentralized finance infrastructure.
To address that limitation, Aztec separates private and public state management. Private assets are stored in UTXO-like note trees, while public data is maintained through key-value trees. During execution, private functions can generate deferred public function calls that are processed later within the same transaction lifecycle, allowing confidential and public operations to work together without sacrificing deterministic execution or creating race conditions.
The execution model is intended to support applications that require confidential computation while still interacting with Ethereum’s public ecosystem, including shared liquidity pools and other decentralized finance protocols.
Privacy model targets decentralized finance and enterprise applications
Beyond transaction privacy, the execution layer introduces features that could reduce several long-standing issues in blockchain execution.
According to Aztec Labs, transaction details remain hidden before state commitment, making it significantly harder for external observers to reorder pending transactions or exploit visible transaction data through Maximal Extractable Value strategies.
The architecture also provides building blocks for applications such as confidential order matching, private liquidity provisioning, and selective compliance systems that disclose only required information through viewing keys instead of exposing complete user records.
Those capabilities build on Aztec’s long-standing focus on programmable privacy rather than simple anonymous token transfers.
Speaking to crypto.news in April 2025, Aztec Labs co-founder and CEO Zac Williamson said blockchain privacy should go beyond hiding wallet addresses.
He described user privacy, confidential transaction data, and private smart contract execution as the three pillars needed for practical on-chain privacy, calling them “the holy grail of blockchain privacy.”
Williamson also argued that privacy should not be treated as a separate segment of the industry, saying, “all crypto will be private” as programmable privacy becomes part of mainstream blockchain applications.
Discussing compliance, Williamson said privacy preserving systems should rely on selective disclosure instead of complete anonymity. He pointed to ZKPassport as an example, explaining that users can tap an NFC enabled passport to generate a zero knowledge proof and choose “what information you want to disclose,” whether it is nationality, age, or other identity attributes.
He said the technology is “permissionless, it’s privacy preserving, and it ensures strong compliance,” adding that such systems are “a lot more powerful” than existing privacy solutions because they combine privacy with programmable compliance.
That vision expanded further in May 2026 when Aztec Labs acquired ZKPassport while committing to keep the passport verification platform open source. The acquisition brought the privacy-focused identity infrastructure directly into Aztec’s ecosystem, allowing developers to combine programmable privacy with zero-knowledge identity verification across Ethereum-compatible networks.
The technology had already been tested on Aztec’s network to help reduce Sybil attacks by allowing participants to prove they were unique individuals without revealing their identities. It was also used during the AZTEC token sale to perform sanctions screening while keeping participant information private.
Alpha release follows security incidents involving legacy products
The execution layer arrives shortly after Aztec Labs dealt with security issues involving products that had already been retired.
Earlier this month, Aztec Labs disclosed that it was investigating a potential exploit involving a deprecated payments product launched in 2021 after roughly $2 million was transferred from an immutable smart contract. The company said the affected system had been discontinued in 2022 and operated without administrator keys, preventing the team from pausing or upgrading the contract.
Separately, another deprecated product, Aztec Connect, lost approximately $2.1 million after attackers exploited an old immutable RollupProcessorV3 contract. Aztec Labs said the incidents were unrelated to the active Aztec network.
The Aztec Foundation also stated that neither exploit had any connection to the current network or the AZTEC ERC-20 token, emphasizing that the affected contracts belonged to legacy infrastructure that had remained live on Ethereum after the products were sunset.
Balaji Srinivasan’s Network School is looking to expand into Kazakhstan after regulators moved against its Malaysia operations, according to a memorandum of understanding announced by Kazakhstan’s Ministry of Digital Development, Innovation and Aerospace Industry. The deal, signed with minister Zhaslan Madiyev, aims to establish what the ministry describes as the first Network School campus in the country.
The Kazakhstan announcement comes as Network School’s Forest City-area presence faces escalating regulatory pressure. Malaysia’s local authorities revoked the business license of the operator, NSO Malaysia Sdn Bhd, prompting the Malaysia Digital Economy Corporation (MDEC) to begin steps to remove the company’s Malaysia Digital status. The situation raises the question of how easily Network School can restart and maintain immigration- and incentives-related arrangements across borders.
Key takeaways
- Kazakhstan’s ministry says it has signed an MoU with Balaji Srinivasan to create the first Network School campus in the country.
- Malaysia’s Iskandar Puteri City Council revoked NSO Malaysia Sdn Bhd’s business license over alleged licensing and premises-use breaches.
- MDEC says it is taking immediate steps to revoke NSO Malaysia’s Malaysia Digital status, which comes with benefits such as tax incentives and employment flexibility.
- Local officials in Johor have urged federal authorities to keep investigating whether Network School violated immigration laws.
- Srinivasan has framed the developments as consistent with the “network state” concept, while also saying Malaysia issues are being addressed through a remedial process.
Kazakhstan MoU opens a new front for Network School
In a statement from Kazakhstan’s Ministry of Digital Development, Innovation and Aerospace Industry, the government said an MoU was signed with Zhaslan Madiyev and Network School founder Balaji Srinivasan to establish a campus in Kazakhstan. While the document signals a strategic expansion, details of implementation—such as timeline, campus location, and regulatory steps—were not included in the provided reporting.
Network School’s Kazakhstan pivot matters for prospective residents and investors because campus operations are closely tied to host-country regulatory conditions, especially around visas, employment rules, and corporate status benefits. Srinivasan has previously described Network School as a community built around attracting globally distributed talent and capital, and the Kazakhstan proposal positions the group to potentially preserve momentum rather than waiting for a resolution in Malaysia.
Kazakhstan has also been positioning itself as a technology hub, including plans connected to a “crypto city” in Alatau, as referenced in the source material. Against that backdrop, Network School’s presence could be marketed as part of a broader attempt to draw innovation-driven communities and companies to the region.
Malaysia: revoked license and a threat to Malaysia Digital status
Malaysia’s regulatory actions began after the Iskandar Puteri City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, the entity operating the Network School’s Johor-area campus. MBIP cited alleged breaches of licensing conditions and requirements related to how premises were used, according to a report linked in the source material from mediadigitaljohor.gov.my.
Following the license revocation, MDEC announced it was taking immediate steps to revoke NSO Malaysia’s Malaysia Digital status. The Malaysia Digital program recognizes qualified technology and digital companies and is described in the source material as offering incentives such as tax advantages, ownership flexibility, and permission to employ both local and foreign workers—benefits that can be critical for international communities that rely on a steady inflow of talent.
MDEC’s stated rationale is that Malaysia Digital status requires companies to comply with local and federal laws. Removing that status could complicate Network School’s ability to operate smoothly if the campus depends on the program’s employment and incentives framework.
Johor officials push for immigration-law scrutiny
The stakes extend beyond corporate licensing. The source material says Johor Chief Minister Onn Hafiz Ghazi urged Malaysia’s federal authorities to continue investigating whether Network School violated immigration laws. He characterized Johor as a “strategic entry point” because the state borders Singapore and therefore argued that any weaknesses or abuse of the immigration system should be addressed promptly and firmly.
That emphasis highlights a common tension for border-adjacent technology hubs: even when a concept has strong global appeal, enforcement actions tied to immigration compliance can quickly affect day-to-day operations, staffing, and residency arrangements for community members.
Earlier coverage referenced in the source material indicates that scrutiny has been ongoing, including questions about how the campus fits within existing legal frameworks. The current license revocation and the potential loss of Malaysia Digital status suggest authorities are not treating the matter as purely procedural.
Srinivasan denies shutdown claims and points to remediation
As the regulatory situation unfolded, Srinivasan denied reports that Network School was shutting down. According to the linked social media statement in the source material, he said Network School had received two notices: one reportedly requiring “change the text of a sign,” and another related to a coworking setup formed by combining two adjacent units, where one side had a valid license but the other did not.
Srinivasan said the issues fell within a remedial period and that the organization would remediate them, adding that its members were otherwise unaffected. Cointelegraph also notes that it reached out to Srinivasan and Network School for comment, but the provided text does not include any additional responses beyond the denial and remediation framing.
Interpreting these statements alongside the MBIP and MDEC actions reveals an important asymmetry: public guidance from local authorities and program administrators may move faster than a company’s internal remediation plan. In practical terms, even if a remedial path exists on paper, the uncertainty can still disrupt hiring, occupancy, and community planning—especially for international residents who rely on predictable compliance timelines.
Meanwhile, Dragonfly Capital managing partner Haseeb Qureshi, quoted in the source material, linked the “Malaysia drama” to the broader “network state” argument. He suggested that the outcome could be used to negotiate new arrangements with other jurisdictions—an interpretation Srinivasan appears to be leaning into as the Kazakhstan MoU emerges.
What to watch next for Network School
Readers should focus on two tracks as the story develops: whether MDEC’s Malaysia Digital revocation proceeds and how quickly Malaysia’s immigration inquiries translate into enforceable outcomes, and—on the other side—how Kazakhstan operationalizes the MoU into concrete regulatory approvals for a Network School campus. Until those details are clear, Network School’s ability to retain its community and recruitment momentum will likely depend on jurisdiction-by-jurisdiction compliance rather than a single global brand narrative.
The Digital Chamber sued the Illinois Department of Revenue on Tuesday, asking a Sangamon County court to strike down the state’s new Digital Asset Tax Act before it takes effect.
The trade group represents more than 250 blockchain firms. It argues the 0.2% levy unfairly singles out digital assets based on the technology used to record ownership.
Inside Illinois’ Digital Asset Tax Act
Illinois enacted the Digital Asset Tax Act as Article 3 of Public Act 104-0468. The measure sets a 0.2% tax on the exchange, transfer, or storage of a customer’s digital asset.
Brokers must also register with the Department of Revenue. Violating the Illinois statute exposes them to Class 3 felony charges. The tax takes effect January 1, 2027.
Governor JB Pritzker signed Senate Bill 3019 into law in June. It drew heavy backlash from the crypto industry at the time, and the courts are now involved.
Follow us on X to get the latest news as it happens
Illinois Crypto Tax Faces Legal Challenge Months Before Launch
The Digital Chamber’s lawsuit raises six claims under state and federal law. It argues that the tax treats identical property differently based only on how ownership is recorded.
“Put simply, this tax discriminates against people who transact in digital assets,” the group said.
A tokenized Treasury and a book-entry Treasury carry the same rights, the suit says. However, only the blockchain version is subject to tax. The filing compares the setup to taxing one email system but not another.
The group also warns that the definition could stretch far beyond crypto. It says future state taxes could reach AI-enabled settlement systems and cloud-based payment networks.
“Taxes should be carefully considered, not only for the revenue they produce but for the fairness of those being taxed. That was not the case here, as the provision slipped into legislation the night before the bill’s final consideration,” CEO Cody Carbone said.
The suit asks the court to declare the Act void and block enforcement. A repeal bill, House Bill 5798, remains pending in the legislature.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
The post Digital Chamber Sues Illinois Over 0.2% Crypto Tax Law appeared first on BeInCrypto.
Uniswap said its Continuous Clearing Auctions, known as CCA, and Uniswap Auctions tool are now live on Robinhood Chain, letting teams run fully onchain token sales on the network. The official Uniswap account said the launch lets teams "run fully onchain token auctions," "discover a credible market… Read the full story at The Defiant
Sablier Labs, the token-streaming and vesting infrastructure company, has stopped active product development and entered maintenance mode until June 2028, co-founder and CEO Paul Berg announced Monday. Existing streams, vesting plans and airdrops are unaffected, Berg said, because "the Sablier… Read the full story at The Defiant
Bonzo Lend, a lending protocol on the Hedera network, lost approximately $9.05 million after an attacker exploited a verification flaw in a third-party Supra oracle contract on July 11. The attacker deposited 250 SAUCE tokens worth a few dollars as collateral, then submitted a manipulated price… Read the full story at The Defiant
The founder of Cap, a Franklin Templeton-backed stablecoin protocol, apologized for cutting a promised user reward to $4.2 million from the roughly $12 million the project had committed to in February, and denied accusations that he directed funds to a wallet linked to his former employer. Cap said… Read the full story at The Defiant
OpenAI called it an “unprecedented cyber incident” after its AI models broke out of their sandbox to hack an AI startup during a security evaluation.
Samsung’s free storage doubling for preorders is gone in Austria, and the replacement isn’t as sweet
Ripple XRP: The ‘SpaceX IPO’ INSANE Conspiracy Changes EVERYTHING in July 2026 (HOLY CRYPTO TRINITY)
Cher Lloyd needs to ‘stop airing her dirty laundry in public and talk to her husband’ says friend – a day after she revealed she had ‘thrown her wedding ring in the bin’ amid split
Renter of Home in Anne Heche Crash Denies Settlement With Son
No Jackpot Winner as $257 Million Prize Rolls Over to $269 Million Monday Draw
Weekend Open Thread: Staud – Corporette.com
Ripple XRP: The ‘SpaceX IPO’ INSANE Conspiracy Changes EVERYTHING in July 2026 (HOLY CRYPTO TRINITY)
Financial Audit Reveals Shocking Salary #shorts
Ripple XRP BYEBYE USDT WE CALLED IT $100 FIRST THEN COLLAPSE INSTITUTIONS CONFIRMED CHOSEN ONE YES!
-
NewsBeat6 days agoLondon Mayor Sadiq Khan handed a peerage by Keir Starmer alongside 15 other Labour figures… just days before the PM leaves No10
-
Fashion4 days agoWeekend Open Thread – Corporette.com
-
Politics4 days agoThe House | The City of London can help the new chancellor deliver growth in every postcode
-
Politics7 days agoYoung campaigners urge incoming PM to act on outdoor junk food ads
-
Crypto World5 days agoTwo July Windows Left: The CLARITY Act’s Senate Fight and What Failure Means
-
Crypto World6 days agoCFTC blocks Kalshi from unwinding Michigan trades after court order
-
Crypto World4 days agoRipple Payments Joins MiCA With 14 Firms, Does It Mean Anything For XRP?
-
Business6 days agoNvidia Stock Slips After Big Tuesday Rally as Huang Confirms Vera Rubin Chip Is Now in Production Today
-
Politics3 days agoDemocrats look to World Cup watch parties to register thousands of voters
-
Entertainment6 days agoDisney’s Most Ambitious Failed Star Wars Attraction Is Coming to SDCC
-
Crypto World4 days agoRipple wins EU-wide access as ESMA adds it to MiCA register
-
Crypto World19 hours agoGrayscale Files For Worldcoin ETF, WLD Registers Sharp Rise
-
Crypto World5 days agoInjective Submits SEC Transfer-Agent Registration to Onchain Ownership Records
-
Business6 days agoPalantir Shares Rise After Expanded Nvidia Partnership and Fresh Analyst Upgrades Ahead of Earnings Day
-
Tech1 day agoSail Virtually Aboard The “Itanic” With IA-64 Emulator
-
Tech1 day agoTurtle Beach Command Series KB7 review: a nifty screen-equipped gaming keyboard
-
NewsBeat5 days agoRegistration is now open for March for Men with Kev 2026
-
NewsBeat2 days agoUnregistered fitter used Gas Safe logo on business flyers
-
Sports6 days agoNew Cornerback Enters Vikings Trade Rumor Mill
-
News Videos5 days agoMoney | Class 12 Economics | CBSE Board Exam 2026-27
You must be logged in to post a comment Login