US and UK regulators are strengthening cross-border coordination on cryptocurrency oversight following the passage of the GENIUS Act.

The Senate's CLARITY Act could stall at the next procedural hurdle. Senate Democrats expect the bill's cloture vote to fall short, Punchbowl News reported. The measure needs 60 votes to move forward toward final passage. Talks have reportedly bogged down over ethics provisions and broader bipartisan disputes. "Without signs of progress from the White House on a bipartisan ethics deal and other breakthroughs, Senate Democrats will deny cloture for the crypto bill," Punchbowl wrote, citing four people involved in the process. A cloture vote is still expected before the Senate leaves Washington.

Chaoxiang Research cited a Reuters report dated August 4 saying the Trump administration and the Federal Communications Commission (FCC) are preparing measures that would curb the entry of Chinese-made data center components into the U.S., explicitly including optical modules. Morgan Stanley said in a note released the same day that InnoLight and Eoptolink together control roughly 50% of the optical module market. If restrictions take effect, the bank expects demand to migrate to non-Chinese suppliers. Coherent (COHR) is viewed as the main beneficiary. Lumentum (LITE) could see indirect upside as ongoing EML supply tightness persists. Applied Optoelectronics (AAOI) and Fabrinet (FN) are also seen as having capacity to take on incremental demand. Morgan Stanley flagged two near-term obstacles to rapid implementation. First, non-Chinese manufacturers may not be able to scale quickly enough to close the supply gap. Second, indium phosphide (InP) substrates still rely on China's AXTI. Lumentum signed a new supply agreement last week, and Morgan Stanley noted that one key goal of Coherent's CEO visiting China months ago was to secure InP supply. The bank said any near-term move would likely trigger a supply shock, while a longer runway could accelerate the build-out and rebalancing of non-Chinese supply chains.

UPDATE: The U.S. Court of Appeals for the Second Circuit has rejected Sam BankmanFried's appeal and formally left his fraud and conspiracy conviction intact, according to a mandate filed on August 4.

Taiwan's Financial Supervisory Commission (FSC) said virtual asset service providers (VASPs) will be required to apply the Travel Rule to virtual asset transfers beginning in October 2026, according to Yahoo Finance. For any single transfer above NT$30,000, the originating VASP must provide the customer's date of birth and address so the receiving side can complete identity verification. The rollout will be phased. From this October, the requirement will first cover transfers between VASPs operating in Taiwan. For transfers involving VASPs outside Taiwan, implementation is expected by the end of 2027. Under Taiwan's AntiMoney Laundering Act, VASPs that fail to incorporate the procedures into internal controls or do not properly transmit the required information may face fines ranging from NT$500,000 to NT$10 million.

Taiwan's Financial Supervisory Commission (FSC) said local Virtual Asset Service Providers (VASPs) will be required to comply with the "Travel Rule" when transferring virtual assets starting in October 2026, according to Yahoo Finance. Under the rules, any single transfer above NT$30,000 will require the sender to provide not only core transaction information, but also the client's date of birth and address so the receiving party can verify identity. Implementation will be phased. Beginning this October, the requirement will first cover transfers between VASPs within Taiwan. Transfers involving overseas or external VASPs are expected to be brought under the framework by the end of 2027. The FSC warned that VASPs that fail to incorporate the procedures into internal controls or do not properly transmit the required data could face penalties under the AntiMoney Laundering Act, with fines ranging from NT$500,000 to NT$10,000,000.

The US and the UK said they will deepen cooperation on financial regulation following the 13th UK-US Financial Regulatory Working Group meeting. Officials met in London on July 8, focusing on stablecoins, digital-asset market structure and tokenization. A joint statement released Aug. 4 said US regulators briefed their UK counterparts on steps to implement the GENIUS Act. Both sides reiterated support for responsible innovation while prioritizing financial stability. Discussions also addressed cross-border payments and ongoing regulatory coordination. No new policy measures were announced.

THE BLOCK: Rep. Bill Huizenga, a pro-crypto Republican, is projected by the Associated Press to have won the GOP primary in Michigan. Tech Influencer Watch reports Huizenga's campaign received nearly $512,000 from a Fairshake affiliate. A16z, Winklevoss Capital and Coinbase also supported his bid.

The United States, Iran, and Oman are nearing a final temporary transit arrangement for the Strait of Hormuz, as reported by Axios. Washington aims to announce the 60-day plan as early as Wednesday, following several rounds of high-level talks between U.S. envoy Steve Witkoff, Iranian Foreign Minister Abbas Araghchi, and Omani Foreign Minister Badr al-Busaidi. Under the proposed terms, ships entering the Persian Gulf would utilize the northern passage through Iranian waters, while outbound traffic would navigate the southern route via Omani waters. The agreement stipulates that no transit fees will be charged and mandates the clearance of naval mines from the central channel within 30 days. Iran reportedly completed its internal approval process on Tuesday, signaling a significant diplomatic de-escalation in the critical maritime corridor.