On May 14, the Senate Banking Committee advanced the CLARITY Act by a 15–9 vote, as the White House pushes for a July 4 signing timeline. With Republicans holding 53 seats and 60 votes needed for cloture, the bill would need seven Democratic or independent votes, while AML language, ethics concerns, and stablecoin reward provisions remain key sticking points.

Paxos said its subsidiary Paxos Securities Settlement Company (PSSC) has received U.S. Securities and Exchange Commission registration to operate as a clearing agency and central securities depository in the United States. The company described the approval as the outcome of seven years of engagement with regulators, building from a 2019 no-action letter and a live settlement program it has run since February 2020.

Aave Labs said its UK units, Push Labs Ltd. and Push Virtual Assets Ltd., were registered by the FCA as cryptoasset exchange providers, alongside an existing Electronic Money Institution authorization. The company said the setup is intended to support regulated payments infrastructure and a planned zero-fee fiat on- and off-ramp that would let users move funds from bank accounts into Aave within the app.

Base has rolled out its Azul upgrade on mainnet, bringing multiproofs and a rebuilt client stack as the Coinbase-incubated Ethereum layer 2 moves toward Stage 2 decentralization. The multiproof design combines TEE and zero-knowledge proofs and can cut withdrawal finality to as little as one day when both agree. The release also shifts the network to new execution and consensus clients, and Base says it has reduced empty blocks by roughly 99% while sustaining bursts of 5,000 TPS.

ICE CEO Jeff Sprecher said he has met several times over the past month with the Hyperliquid team to discuss possible business collaboration, and described the DEX as "bigger than Nasdaq." The remarks follow reported meetings by ICE and CME executives with CFTC officials in Washington raising concerns about Hyperliquid's offshore structure and its 24/7 oil perpetuals, which were said to average more than $1 billion in daily volume.

Paxos said Thursday that its unit Paxos Securities Settlement Company (PSSC) was registered by the U.S. SEC as a clearing agency under the Securities Exchange Act of 1934. The firm said the registration lets PSSC provide clearing and settlement services for eligible securities trades and described itself as the first blockchain-native company to receive the license.

On May 27, Stake DAO said its Arbitrum deployment was hit by an infinite-mint exploit that inflated vsdCRV supply by 5.4 trillion units, with some reports estimating about $91,000 drained from affected pools. The team disabled the vsdCRV bridge and said Ethereum mainnet backing funds were secured, while the Arbitrum asdCRV Llamalend market will be permanently sunset.

DxSale suffered a $7.3 million drain affecting 1,400 BNBChain LPs after attackers targeted legacy liquidity pools locked in 2021. Investigators say 2,958 BNB ($1.87 million) was funneled to two main wallets and later routed to multiple Binance deposit addresses, while other findings have fueled allegations of insider-level access.