Clarity Act still dragging on
Banks and crypto firms remain deadlocked over stablecoin yield rules ahead of the White House's end-of-month deadline for the Clarity Act. After two meetings without agreement, banks want yield prohibited entirely, while the Digital Chamber – representing over 130 crypto firms – proposes allowing yield in decentralized finance. Another meeting could happen this week, though it remains unclear if a deal will materialize by month's end. Read more →
Meanwhile, U.S. Treasury Secretary Scott Bessent said the passing of the Clarity Act would bring a calm to the markets amid Bitcoin's recent volatility.
Harvard sells some bitcoin
Harvard's endowment sold ~21% of its iShares Bitcoin Trust (IBIT) holdings while making its first ethereum purchase of roughly $86.8 million, according to SEC filings. The move may reflect a strategic unwind as bitcoin prices started to fall off last quarter. Notably, institutions reported owning 230 million IBIT shares in the fourth quarter, down ~44% from 417 million in the third. Read more →
Vitalik tell prediction markets to grow up
According to Vitalik Buterin, prediction markets have become trapped in dopamine-driven sports and crypto bets. He argues that instead they should pivot to hedging - that is, using prediction markets as a sort of insurance. His vision? Replace fiat currency entirely with personalized prediction market baskets tied to individual expenses (like food, gas etc), powered by local AI that understands what each user actually needs to buy. The question: can this shift from entertainment to genuine financial infrastructure actually work? Read more →
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