Senate Schedules CLARITY Act Markup as Banking Lobby Mounts Resistance — May 12, 2026

CRITICAL

Senate Schedules CLARITY Act Markup as Banking Lobby Mounts Resistance

The Senate Banking Committee has scheduled a markup session for the CLARITY Act, the landmark bill that would establish a comprehensive regulatory framework for digital assets in the United States. The hearing represents a pivotal moment for the crypto industry, which has long called for clear rules of the road.

However, the bill faces mounting opposition from both the traditional banking lobby and Democratic lawmakers. Critics argue the legislation does not go far enough on consumer protection and could create regulatory gaps. The American Bankers Association has been particularly vocal, pushing amendments that would restrict stablecoin issuance to federally chartered depository institutions.

The markup outcome will determine whether the US moves toward a comprehensive digital asset framework or remains in the fragmented regulatory environment that has persisted since the SEC's enforcement-first approach.

— Bitcoin Magazine

American Bankers Launch Last-Ditch Effort to Kill Stablecoin Provisions

The American Bankers Association is lobbying aggressively against provisions of the crypto market structure bill that would permit non-bank entities to issue stablecoins. The banking industry argues that only federally regulated depository institutions should be allowed to issue payment stablecoins, framing the issue as one of systemic financial stability.

The push comes as the stablecoin market has grown to over $200 billion in total market capitalization, with non-bank issuers like Circle (USDC) and Tether (USDT) dominating the space. Banks see stablecoin issuance as a natural extension of their existing payments infrastructure and view non-bank competition as an existential threat to their business model.

— Bitcoin Magazine

IMPORTANT

Bitcoin ETFs Absorb 19,000 BTC in Nine Days of Sustained Inflows

US-listed spot Bitcoin ETFs have absorbed approximately 19,000 BTC over a nine-day stretch, signaling strong and sustained institutional demand for the asset class. The inflow surge coincides with Bitcoin briefly testing $82,000, driven by a combination of macroeconomic tailwinds and expectations of regulatory clarity from the CLARITY Act process.

Crypto investment funds have now recorded six consecutive weeks of net inflows, with BlackRock's iShares Bitcoin Trust (IBIT) maintaining its position as the dominant product in the space.

— openPR.com, thedefiant.io

Ripple Prime Raises $200M From Neuberger Berman for Institutional Lending

Ripple Prime, the institutional lending arm of Ripple, has secured $200 million in financing from Neuberger Berman, one of the world's largest asset managers with approximately $570 billion under management. The capital will be used to expand institutional crypto lending operations, deepening the convergence of traditional finance and digital assets.

The financing round signals growing confidence from traditional asset managers in crypto-native infrastructure providers. Neuberger Berman's participation represents one of the largest single institutional commitments to crypto lending to date.

— Coinpedia, Seeking Alpha

Hawaii Cracks Down on Crypto Kiosks After $240M in Fraud Losses

Hawaii state regulators are imposing new restrictions on cryptocurrency kiosks following reports of over $240 million in fraud losses linked to Bitcoin ATM machines. The regulatory action targets operators who have failed to implement adequate Know Your Customer (KYC) procedures and consumer protections.

The move reflects a growing trend of state-level regulatory action on crypto ATM operators, who have increasingly come under scrutiny for facilitating scams that target elderly and vulnerable populations. Other states are expected to follow Hawaii's lead with similar enforcement actions.

— KITV

Strategy Buys More Bitcoin, Total Holdings Reach $61.9 Billion

Strategy (formerly MicroStrategy) has added more Bitcoin to its corporate treasury, bringing total holdings to approximately $61.9 billion. The company continues to execute its aggressive Bitcoin acquisition strategy, which began in 2020 and has made it the largest corporate holder of the digital asset.

The purchases come despite ongoing market volatility and geopolitical uncertainty, reinforcing Strategy's conviction that Bitcoin serves as a superior long-term treasury reserve asset compared to traditional cash equivalents.

— Decrypt

DOJ Launches Remission Compensation Process for AirBit Club Victims

The US Department of Justice has announced a remission compensation process for victims of the AirBit Club cryptocurrency fraud scheme. The initiative aims to distribute recovered funds back to defrauded investors who lost money in the scheme, which promised guaranteed returns on crypto investments.

The DOJ action underscores continued federal enforcement against cryptocurrency fraud, even as the regulatory landscape shifts toward a more structured framework.

— FX News Group

POSITIVE

BlackRock IBIT Leads Bitcoin ETF Six-Week Inflow Streak

BlackRock's iShares Bitcoin Trust (IBIT) has continued to dominate the spot Bitcoin ETF sector, driving a six-week consecutive inflow streak across all US-listed funds. The sustained demand from institutional investors through IBIT reinforces the growing role of ETFs as the primary entry point for traditional finance into Bitcoin exposure.

Crypto funds overall have now recorded six straight weeks of net inflows, a streak that market participants attribute to improving regulatory clarity and favorable macro conditions.

— crypto.news

Bitcoin Tests $82K on ETF Flows and Regulatory Optimism

Bitcoin briefly touched $82,000 as crypto investment funds recorded their sixth consecutive week of inflows. The move was supported by a combination of ETF demand, optimism around the CLARITY Act legislative process, and broader macro tailwinds. Geopolitical tensions with Iran and US regulatory developments remain the dominant narratives influencing market direction.

— thedefiant.io

Watch List

• Circle shares surged alongside crypto equities ahead of the CLARITY Act hearing — Investor's Business Daily
• Coinbase shares rallied despite reporting a $394M Q1 loss — Investing News Network
• Keel Infrastructure is closing its Bitcoin mining operations to pivot to AI — Decrypt
• BitMine, the largest Ethereum treasury firm, will slow its accumulation pace — Sherwood News
• SEC delays decision on prediction market ETFs, echoing the early Bitcoin fund battle — CNBC

TL;DR

• The Senate has scheduled a CLARITY Act markup as banks and Democrats push back against the crypto regulatory framework bill.
• Bitcoin ETFs absorbed 19,000 BTC in nine days; funds have seen six straight weeks of inflows.
• Ripple Prime raised $200M from Neuberger Berman to scale institutional crypto lending.
• Hawaii imposed new restrictions on crypto kiosks after $240M in fraud losses.
• Strategy increased total Bitcoin holdings to $61.9 billion.