US Stablecoin and Crypto Market Structure Bills Advance as Industry Navigates Regulatory Milestones
July 2026 is shaping up to be a pivotal month for cryptocurrency regulation in the United States. Two major legislative developments are converging: the CLARITY Act’s progress through Congress and the record-breaking performance of digital asset ETFs, which together signal a maturing market environment.
The CLARITY Act — a comprehensive digital asset regulatory framework — has advanced after reports emerged of a bipartisan agreement between the White House and Republican senators on ethics provisions. This compromise removed a significant legislative hurdle that had stalled the bill for weeks. The agreement addresses concerns about conflicts of interest related to digital asset holdings by lawmakers.
However, the bill’s path is not without obstacles. The CLARITY Act’s approval odds dropped recently as Senate Democrats opposed a new version of the bill, arguing that certain provisions insufficiently protect retail investors. The Stop Insider Trading Act, which would have banned members of Congress from trading individual stocks while in office, also faced resistance — 198 Democrats voted against it, highlighting the politically charged nature of financial reform.
In parallel, Hester Peirce’s Crypto Task Force at the SEC has launched a public comment process on spot Ethereum ETFs, signaling a potential shift toward more constructive engagement between regulators and the crypto industry. The SEC’s request for public input covers proposed rule changes that would allow ETF issuers to engage in staking and in-kind creation/redemption mechanisms — both long-standing industry requests.
The Cboe BZX Exchange and Nasdaq have filed rule change requests to permit staking and in-kind redemptions for spot Ethereum ETFs. If approved, these would allow ETF issuers to earn staking yields on ETH held in the fund, creating a new revenue stream and potentially attracting income-focused investors.
BlackRock’s recent filing to expand its spot Bitcoin ETF to include in-kind redemption options alongside cash redemptions is seen as a significant step toward making crypto ETFs more efficient. In-kind redemptions allow authorized participants to exchange ETF shares directly for the underlying Bitcoin rather than requiring cash conversions, reducing costs and tracking errors.
On the stablecoin front, the American Bankers Association has pushed for amendments to the payment stablecoin provisions of the market structure bill. Their goal is to maintain prohibitions on interest and yield-bearing stablecoins while ensuring banks can participate in stablecoin issuance through proper regulatory channels.
Internationally, Bitget has registered as a financial services provider in New Zealand, joining a growing list of exchanges seeking regulatory approvals in jurisdictions with clear frameworks. The Monetary Authority of Singapore has also updated its Digital Payment Token licensing regime, providing greater clarity for crypto service providers.
MicroStrategy — now rebranded as “Strategy” — continues its Bitcoin acquisition program, holding over 226,000 BTC worth approximately $15 billion at current prices. The company’s continued accumulation demonstrates that corporate treasuries view Bitcoin as a viable reserve asset despite ongoing price volatility.
The convergence of regulatory progress, ETF growth, and institutional adoption creates a fundamentally different market environment compared to previous cycles. While regulatory hurdles remain, the direction of travel is increasingly clear — crypto assets are being integrated into the mainstream financial system through measured, structured channels.