Morning Minute: The Clarity Act Markup Comes May 14

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GM!

Today’s apical news:

• Crypto majors are greenish contempt Trump rejecting latest Iran deal; BTC astatine $81k
• VVV posts monolithic +90% week starring each movers, present astatine $17.60
• Circle raises $222M astatine $3B valuation successful Arc presale
• Strategy CEO clarifies the 2 situations wherever they volition merchantability BTC
• Clarity Act goes to markup connected May 14, likelihood scope 79% earlier falling

🗓️ The Clarity Act Will Markup On May 14

The Senate Banking Committee officially announced its markup proceeding day for the Digital Asset Market Clarity Act connected Thursday May 14. That marks the astir factual day this arguable measure has notched to date. The White House has been publically targeting July 4 for afloat passage, and this authoritative measurement puts that people 1 measurement closer.

The stablecoin output question, the cardinal obstacle that has stalled the measure for months, is resolved. Senators Tillis and Alsobrooks locked successful compromise connection 2 weeks agone that bans passive output connected stablecoin balances but permits activity-based rewards tied to existent level participation. Both sides are unhappy with it, which is typically the awesome a woody is real.

Polymarket bettors pushed the likelihood of transition up to 79%, adjacent to arsenic precocious arsenic the likelihood person ever been, earlier falling sharply this greeting to 63%.

The adjacent 5 weeks find everything. Congress breaks for Memorial Day recess May 21, leaving astir 1 week of Senate level clip aft the markup to walk this earlier summer. Four weeks successful June get the occupation done if the Senate moves arsenic rapidly arsenic the White House wants. Any gaffe past mid-June pushes the measure into an August recess model that fewer judge volition nutrient action, and November midterms aft that alteration the legislative mathematics entirely.

💰 BlackRock Leans Deeper Into Tokenization with $7B Treasury Push

BlackRock filed 2 abstracted SEC applications Friday that unneurotic correspond its astir assertive propulsion into tokenized concern since launching its BUIDL money successful 2024.

The archetypal filing proposes the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, a caller money that invests successful cash, short-term US Treasury securities, and overnight repo agreements backed by Treasuries, designed specifically arsenic an eligible reserve plus for stablecoin issuers nether the GENIUS Act. The money issues “OnChain Shares” done a permissioned strategy connected to aggregate nationalist blockchains. The explicit people assemblage is Tether, Circle, and the 20+ banks presently waiting to contented stablecoins nether GENIUS Act rules, institutions which are parking $320 cardinal successful stablecoin reserves that presently gain output done back-channel Treasury holdings. BlackRock is gathering the regulated, onchain yield-generating alternate to that arrangement.

The 2nd filing brings BlackRock’s Select Treasury Based Liquidity Fund onchain, a accepted money-market money with astir $7 cardinal successful assets nether management. Alongside these 2 filings, BlackRock separately expanded its existing BUIDL money to BNB Chain and Solana, and integrated it with DeFi platforms including Uniswap and Euler. Total BUIDL AUM present sits astatine $2.4 cardinal crossed 8 blockchains.

Meanwhile, the broader RWA marketplace has grown 200% year-over-year to surpass $30 billion. The large TradFi tokenization propulsion continues, and BlackRock wants its portion of the pie…

🚩 LayerZero Finally Admits Mistake successful KelpDAO Exploit

Three weeks aft initially blaming Kelp DAO’s configuration choices for the $292 cardinal rsETH exploit, LayerZero reversed course Friday.

The institution published a blog station acknowledging it should ne'er person allowed its ain decentralized verifier web to service arsenic the sole verifier for high-value cross-chain transactions, the nonstop vulnerability that Lazarus Group exploited connected April 18. “We made a mistake by allowing our DVN to enactment arsenic a 1/1 DVN for high-value transactions,” the institution wrote. “We didn’t constabulary what our DVN was securing, which created a hazard we simply didn’t see. We ain that.”

The admittance is simply a important reversal. LayerZero’s archetypal post-mortem placed work squarely connected Kelp DAO, describing the single-verifier setup arsenic a configuration prime made against explicit guidance. Kelp’s effect pointed to 8 integration meetings implicit 2 and a fractional years successful which LayerZero unit ne'er flagged the configuration arsenic a information risk, and cited LayerZero’s ain quickstart documentation and GitHub examples arsenic showing the 1-of-1 DVN arsenic the default setup. A Dune investigation recovered 47% of astir 2,665 progressive LayerZero OApp contracts were moving the aforesaid configuration astatine the clip of the attack, with $4.5 cardinal successful associated marketplace worth astatine equivalent risk.

LayerZero besides conceded it had done “a unspeakable occupation connected comms implicit the past 3 weeks” and said it should person led with directness alternatively than waiting for a broad post-mortem. The fallout is accelerating: Kelp already migrated rsETH to Chainlink’s CCIP. Solv Protocol announced this week it is moving much than $700 cardinal successful tokenized Bitcoin infrastructure disconnected LayerZero pursuing a caller information review. Soon we volition find retired if the apology was excessively little, excessively precocious oregon if they’ve been capable to halt the bleeding.

📈 Zcash Just Announced a Quantum-Proof Roadmap

Zcash CEO Josh Swihart shared a major roadmap update astatine Consensus connected Thursday, including:

• quantum-recoverable wallets launching wrong a month
• full post-quantum readiness by precocious 2027, and
• a scaling people of Visa and Mastercard-level transaction throughput implicit the aforesaid 12-18 period window.

ZEC has rallied much than 110% successful the past 30 days, partially connected its post-quantum narrative, partially connected its privateness communicative and partially connected a Multicoin Capital concern disclosure that sent sentiment sharply higher.

The quantum-recoverable wallet, launching successful June, is the archetypal applicable step. It isn’t a afloat quantum-proof system, but it is simply a modulation mechanics that gives users a betterment way if existent cryptographic methods are yet broken. The broader 2027 people involves integrating NIST-standardized post-quantum signature schemes crossed the full protocol stack done the Tachyon upgrade, addressing not conscionable wallets but the underlying transaction validation architecture.

Zcash’s vantage successful this upgrade is its existing usage of zero-knowledge proofs. Its shielded transaction furniture already uses a antithetic cryptographic stack than transparent transactions, giving developers a stronger basal to physique quantum absorption from than protocols relying wholly connected classical ECDSA.

The web is besides showing meaningful adoption momentum autarkic of the quantum narrative. Zcash’s shielded excavation present holds astir 30% of each circulating ZEC, up from 11% astatine the commencement of 2025. Delphi Digital cited that maturation arsenic grounds of genuine idiosyncratic request for backstage transactions alternatively than speculation. Between $600 and $700 cardinal has moved into shielded ZEC via cross-chain swaps done Near Intents. A assemblage connection to chopped artifact clip from 75 seconds to 25 seconds is successful progressive discussion, with Solana and Hyperliquid bridges already live.

🌎 Macro Crypto and Markets

• Crypto majors are somewhat greenish despite Trump rejecting the latest Iranian bid woody offer, starring to different lipid spike; BTC adjacent astatine $81k; ETH +1% astatine $2,330; SOL +2% astatine $95; HYPE -3% astatine $41.50
• VVV (+20%), SUI (+14%) and XDC (+9%) led apical movers
• Oil rebounded 3% astatine $96; Gold -1% astatine $4,670
• Stock futures are level premarket
• Strategy’s CEO Phong Le clarified that they volition lone merchantability BTC 1) to wage STRC dividends and 2) if its makes consciousness for taxation optimization purposes
• Coinbase suffered a work outage Thursday linked to an AWS cooling failure astatine a information center
• Coinbase CEO Brian Armstrong sold $540 cardinal successful COIN stock crossed 88 trades betwixt April 2025 and January 2026
• Sen. Elizabeth Warren sent a missive to Mark Zuckerberg demanding afloat disclosure of Meta’s stablecoin integration plans earlier the Senate votes connected the Clarity Act
• SEC Chair Paul Atkins called for caller rulemaking Friday to clarify however exchange, clearing agency, and broker definitions use to onchain systems and DeFi protocols
• Kraken genitor Payward filed an exertion with the OCC for a nationalist spot institution charter, for organization integer plus custody; if approved, Payward would clasp the afloat CFTC derivatives stack, OCC spot charter, stablecoin outgo rails successful Asia (Reap), and retail trading (NinjaTrader) simultaneously
• Rain’s caput of strategical partnerships John Timoney told Consensus Miami that stablecoin paper walk grew 105% year-over-year and stablecoin cards could deed double-digit marketplace stock successful immoderate Latin American markets wrong years; Rain, a Mastercard Principal Member valued astatine $1.95 billion, uses existing paper infrastructure truthful merchants person fiat portion users walk stablecoins
• ECB President Christine Lagarde warned Friday that adjacent euro-denominated stablecoins could endanger fiscal stableness and monetary argumentation transmission
• XRP web progressive addresses and progressive proviso fell sharply successful Q1 2026, with caller wallet instauration down astir 40% quarter-over-quarter contempt XRP ETF inflows of $1.24 cardinal since precocious 2025

Corporate Treasuries & ETFs

• The Bitcoin ETFs saw $146M successful nett outflows connected Friday, inactive with a caller $632M successful nett inflows connected the week; the ETH ETFs saw $3.6M successful inflows connected Friday and $70M connected the week
• Morgan Stanley’s MSBT ETF saw $194M successful nett inflows successful its archetypal period with nary outflows
• TeraWulf posted a $427 cardinal Q1 nett loss, up from $61.4 cardinal a twelvemonth agone arsenic Bitcoin mining gross fell 50% to $13 million; AI and HPC lease gross jumped 117% sequentially to $21 million, present 60% of full revenue

Meme Coin Tracker

• Meme leaders were mixed; DOGE +2%, SHIB +2%, PEPE +2, PENGU -2%, TRUMP -1%, BONK +3%, SPX +5%, FARTCOIN +1
• TROLL (+30%), Goblin (+140%), and TripleT (+20%) led notable movers

📈 Myriad Market of the Day

💰 Token, Airdrop & Protocol Tracker

• Circle raised $222M for its ARC token successful a presale valued astatine $3B, led by a16z, BlackRock, Apollo and others
• Digital Asset Holdings is looking to rise ~$300M astatine a $2B valuation arsenic it builds retired its blockchain utilized by large banks and trading firms

🚚 What is happening successful NFTs?

• NFT leaders were mostly greenish implicit the weekend; Punks -1.5% astatine 30.5 ETH, BAYC +6% astatine 10.6 ETH, Pudgy +6% astatine 5.56 ETH; Hypurr’s -2% astatine 310 HYPE
• Chimpers (+18%), Normies (+30%) and Deadfellaz (+18%) led notable movers