Coinbase CEO Brian Armstrong called on the US Senate to bring the CLARITY Act to a full floor vote, saying negotiations are finished and lawmakers should move to finalize the bill. Armstrong said the current US regulatory status quo is not working.

The Federal Trade Commission has secured permanent bans against three founders of bankrupt crypto lender Celsius, barring them from key crypto activities such as taking deposits, facilitating withdrawals, and enabling trading. The restrictions attach to the individuals and follow them across companies, making them far more consequential than the monetary penalties. Under the orders, former CEO Alexander Mashinsky and co-founder Shlomi Daniel Leon are prohibited from advertising, marketing, promoting, offering, distributing, or otherwise supporting products or services used to deposit, exchange, invest, or withdraw assets. Mashinsky's ban applies broadly to assets, while Leon's explicitly covers cryptocurrencies as well as banking and financial assets. The prohibitions extend to actions carried out directly or through intermediaries. A separate injunction targets co-founder Hanoch "Hank" Goldstein, focused on retail cryptocurrency businesses. He is barred from promoting or selling retail products or services related to buying, selling, depositing, withdrawing, distributing, or trading cryptocurrencies, and from assisting others in sales or marketing of such offerings. All three orders also prohibit material misrepresentations about products and services. They further bar the use of false, fictitious, or fraudulent statements to obtain or attempt to obtain customer information from financial institutions, including bank account details, login credentials, private keys, and wallet information. Mashinsky and Leon must obtain explicit, informed consent before disclosing consumers' nonpublic personal information. The measures align with allegations in the FTC's 2023 complaint, which said Celsius was promoted as safer than banks, promised instant withdrawals, and advertised yields as high as 18.63%. The FTC also alleged that Celsius claimed it had sufficient reserves on June 7, 2022, then froze withdrawals and transfers five days later. Celsius filed for bankruptcy on July 13, 2022. To support enforcement, the founders must submit reports and maintain records over the coming years to provide the FTC with monitoring information and to give courts a basis to police compliance. The FTC set a combined monetary obligation of $16.5 million. Court documents indicate Goldstein's assessed amount is $2.014 million, with the remaining amounts attributed to Mashinsky and Leon. Mashinsky's $10 million obligation may be satisfied through eligible U.S. Department of Justice forfeitures. Leon's $4.1 million obligation and Goldstein's $2.014 million obligation may be offset by payments or releases tied to the Celsius bankruptcy proceedings. As a result, the penalties may be fully covered by assets previously seized by the Department of Justice and by funds flowing through the bankruptcy process, meaning the founders could potentially pay nothing out of pocket. The FTC said any funds it ultimately receives may be used for consumer restitution or related relief; amounts not used for relief would be deposited into the U.S. Treasury. The actions do not, on their own, guarantee additional recoveries for Celsius creditors.

Japan is moving closer to launching its first $BTC ETF.

EU member state envoys have agreed on a 21st sanctions package against Russia, Reuters reported. The measures impose full sanctions on 94 Russian financial institutions and the Moscow Exchange, broaden transaction bans to additional crypto platforms, and for the first time target vessels linked to Russia's "shadow fleet". The package also locks in the Russian oil price cap at $44.10 per barrel for the next 12 months.

Negotiations over the CLARITY Act's ethics language have stalled as the White House and Senate Democrats clash on two core issues. Democrats want state Attorneys General (AGs) to help enforce the bill's ethics provisions. A White House-backed proposal instead would give the Department of Justice (DoJ) sole enforcement authority in ethics-related matters. A second sticking point is Democrats' push to hold U.S. President Donald Trump accountable for past crypto activity. Trump reportedly made more than $1.4B in crypto profits in 2025, while holders of his memecoins and tokens suffered losses. The White House has rejected that approach, with Chief Crypto Advisor Patrick Witt calling it "blatantly unconstitutional" in a statement. Criticism of the proposed ethics framework has also come from Democratic-aligned voices. Former SEC Chief of Staff Amanda Fischer described the deal as "laughable," arguing it leaves significant gaps: it reportedly gives the president a one-year window to place crypto ventures into a blind trust, does not prohibit interest income, and caps penalties for ethics violations at $500K. Fischer said it "doesn't change much at all" about Trump's existing crypto dealings, adds no divestment requirement, and would rely on Trump's personal attorney Todd Blanche for enforcement. She also pointed to an amnesty provision taking effect once a new president is inaugurated. The proposal bars the president, administration officials, and members of Congress from certain activities but does not cover their children. Senate Democrats including Angela Alsobrooks, Ruben Gallego, and five others have opposed the current ethics language along with other CLARITY Act provisions. In a joint critique, they said the Republican text "falls short" and called for stronger rules around ethics for elected officials, consumer protection, illicit finance, conflicts of interest, and market integrity. Alsobrooks and Gallego were the only Democrats to back the bill during committee markup. With Republicans needing roughly 7–10 Democrats to reach the 60-vote threshold on the Senate floor, Democratic holdouts could prove decisive. The legislative uncertainty has coincided with a modest pullback in crypto markets. Bitcoin (BTC) eased to about $65.7K after climbing to nearly $67K earlier in the week, highlighting how closely near-term sentiment is tied to progress on the bill. Key Takeaways • Senate Democrats are rejecting the White House-backed ethics deal and pressing for broader changes to the CLARITY Act. • The White House appears unwilling to accept Democrats' demands on ethics enforcement and accountability provisions.

Kazakhstan has approved a new set of strategic rules for digital mining, aimed at helping finance the country's national crypto reserve.

UK lawmakers have opened an inquiry into whether banks and payment providers are placing disproportionate barriers on crypto-related firms and users, including blocked transfers, transaction limits and account closures. The Crypto and Digital Assets All-Party Parliamentary Group (APPG) began the review on July 21, 2026, as the UK prepares to roll out a broader regulatory framework for crypto. The group is seeking evidence from banks, payment providers, fintechs, crypto companies, academics and consumer bodies. Written submissions are open for six weeks, with a deadline of Aug. 31, 2026. According to the APPG, some businesses say they have struggled to open or keep bank accounts. Others report difficulty accessing merchant services, payment rails, insurance and professional support. Lawmakers are also examining restrictions on crypto payments, including blocked transfers to certain platforms and limits on customer transactions, and how banks apply those controls and assess risk. The inquiry will consider impacts on consumers, investment, competition, innovation and day-to-day business operations. Lord Vaizey of Didcot said concerns about banking access have been raised repeatedly. He co-chairs the APPG with Labour MP Gurinder Singh Josan. The call for evidence asks for practical examples with supporting documentation, as well as views on legal, regulatory, commercial and operational factors driving restricted access. The UK Parliament describes APPGs as informal, cross-party groups with no official parliamentary status. They cannot pass legislation or issue binding regulatory instructions, but their recommendations can influence policy. Government departments, regulators and parliamentary committees may take the findings into account in future work. The APPG said it will assess submissions before publishing a report, but has not set a publication date. The effort follows a 2022–2023 APPG inquiry into UK crypto policy, which highlighted banking access as a major hurdle for digital asset businesses. This time, the review aims to broaden the evidence base beyond the crypto sector. Banks and payment providers are expected to address compliance controls, customer risk assessments and transaction policies, while noting that account closures raise separate legal and commercial considerations. UK providers remain responsible for risk management under anti-money laundering and fraud rules. The Financial Conduct Authority (FCA) reviewed payment-account access and closures in 2023, including issues raised by cryptoasset businesses and payment companies. The inquiry also comes after the government put a formal regulatory regime in place for certain crypto activities. The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 became law in February, with HM Treasury saying the framework will take effect in October 2027. Once implemented, firms carrying out covered activities will need FCA authorization. That timeline, the APPG argues, makes it important to address banking access before authorization requirements begin. Even regulated firms need accounts to receive funds, pay employees and settle suppliers. Lawmakers are also asking for international examples where jurisdictions have improved access while keeping safeguards. Banks may argue transaction controls protect customers from scams and unauthorized transfers. Crypto firms may counter that broad restrictions can treat licensed and unlicensed businesses alike. The evidence will inform whether the APPG recommends clearer guidance, better communication or changes to banking practices. Any outcome would still require action by government, regulators or financial institutions. The banking review sits alongside a wider UK push on digital finance. Authorities are advancing rules for stablecoins, tokenized payments and digital securities. In June 2026, the Bank of England and the FCA set out a joint approach for stablecoins: the FCA would supervise qualifying UK-issued stablecoins and their use in retail payments, while the Bank of England would share oversight when HM Treasury designates an issuer as systemic. HM Treasury has also said it supports a combined framework spanning traditional and tokenized payment services, including stablecoins and tokenized deposits. As regulation expands, demand for formal banking relationships could rise because authorized firms depend on banking infrastructure for customer funds, payroll, tax and operating costs. The inquiry will not compel banks to provide services to specific companies, but its findings could influence how institutions document and apply risk-based decisions. Stakeholders have until Aug. 31, 2026, to submit evidence, after which the APPG will review responses and publish recommendations without a confirmed reporting date. This article is for informational purposes only and does not constitute legal, regulatory or financial advice.

Mirae Asset Group, South Korea's $1 trillion financial conglomerate, has acquired a 97% stake in Korbit. The transaction marks the first time a traditional Korean financial group has taken a controlling interest in a domestic cryptocurrency exchange.

The U.S. Securities and Exchange Commission is broadening its oversight from crypto tokens to the mechanisms that put them to work, with DeFi vaults and on-chain lending protocols now drawing closer attention. SEC Commissioner Hester M. Peirce said shifting financial activity on-chain does not sidestep federal securities laws. In her view, the regulatory outcome turns on how a vault is built and run, including how it allocates assets, generates and manages yield, and distributes decision-making authority. Peirce also pointed to lending protocols that set interest rates, loan-to-value ratios, and liquidation thresholds as potential candidates for treatment under existing securities or investment adviser frameworks. She stressed that regulators should not apply a one-size-fits-all label. Each structure requires a fact-specific review before determining which rules apply. The implication is that enforcement and supervision may increasingly examine protocol design and governance, not only the underlying crypto asset. Bitcoin-backed lending gains momentum Rising regulatory scrutiny is nudging Bitcoin-backed lenders toward products and custody setups positioned as safer and more protective. Demand is being driven by long-term Bitcoin (BTC) holders seeking fiat liquidity without selling. Ledn says it has about $714 million in outstanding BTC-backed loans, collateralized by 19,685 BTC. The company reports it has processed more than $10 billion in loans since 2018 and separates customer collateral from other operating activities. Strike is targeting a different risk set. It says its "volatility-proof" loans remove price-triggered liquidation, and borrowers can repay at any time without missing a payment. Unchained is emphasizing custody transparency through multisig arrangements that provide borrowers with verifiable on-chain control. These structural differences continue to shape activity across crypto credit markets. Centralized BTC-backed lenders remain a draw for long-term holders seeking fiat without selling BTC. In DeFi, lending markets are supporting a broader range of collateral, led by Bitcoin, Ethereum (ETH), and stablecoins. As utilization rates and borrow APRs move with market conditions, capital is rotating more actively across DeFi, supporting higher trading activity. By contrast, CeFi borrowers tend to prioritize capital preservation, underscoring the market's increasing specialization. Summary DeFi vaults and on-chain lending are facing tighter SEC scrutiny as protocol design becomes a bigger driver of regulatory treatment. Crypto lending is evolving toward more specialized models that balance compliance, capital efficiency, and custody transparency.