On March 20, a tentative agreement was struck between the White House and Senators on stablecoin yield language in the CLARITY Act. In an interview, Senator Angela Alsobrooks (D-Md.) stated that she has an “agreement in principle” with Senator Thom Tillis (R-N.C.), though details on the compromise between banking and stablecoin interest groups is not yet public. Alsobrooks further mentioned the compromise would include language barring stablecoin yield payments “on a passive balance.” White House policy advisor Patrick Witt credited both Alsobrooks and Tillis for their bipartisanship in moving the CLARITY Act forward.
On March 24, CFTC Commissioner Michael Selig announced the launch of an Innovation Task Force focused on developing a transparent regulatory framework for digital assets, AI, and prediction markets. The Innovation Task Force will work in partnership with the Innovation Advisory Committee and will be led by Michael Passalacqua.
On March 20, the CFTC Market Participants Division and the Division of Clearing and Risk released FAQs on digital assets and blockchain, specifically relating to CFTC Staff Letter 25-39 (Tokenized Collateral Guidance) and CFTC Staff Letter 26-05 (Staff No-Action Position Regarding Digital Assets Accepted as Margin Collateral). The 11 frequently asked questions mainly discuss how merchants and clearinghouses regulated by the CFTC should handle digital asset collateral, and how the FAQs align with the SEC on capital requirements.
On March 23, the Treasury Department announced the launch of the AI Innovation Series, a public-private sector initiative aimed at preparing the U.S. financial system for emerging technologies. The Series will consist of four roundtables with representatives from financial institutions, technology firms, regulators, and experts who will discuss AI in financial services. The discussions are launched by the Office of the Financial Stability Oversight Council (FSOC) and Treasury’s Artificial Intelligence Transformation Office.
On March 23, Senators Adam Schiff (D-Calif.) and John Curtis (R-Utah) introduced a bill banning sports betting in CFTC-regulated prediction markets, as well as broadly banning casino-style gaming bets. In a statement, Senator Curtis said the bill “clarified regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming.” In response to the bill, large prediction markets claim the actions are inspired by casino interests that are threatened by the competition. While this bill is not the first in this Congress to touch on sports betting in prediction markets, it is the first bipartisan bill.