Weekly Roundup 09/18/26 (Clarity fails to advance, Caroline Ellison's new job, AI leaking MNPI, Poland's oil snafu) (EP.740)

The Clarity Act has stalled in the Senate, with a recent cloture vote resulting in a narrow 49-50 outcome. This setback is attributed to Democratic hesitance to grant a legislative victory to Trump and last-minute compromises from the White House regarding ethics. Despite this, eight Democratic senators have expressed a willingness to engage in further discussions about the Act.

In the cryptocurrency sector, Coinbase has responded to the Clarity Act's failure by increasing the yield on stablecoins. The SEC and CFTC are actively working on rulemaking to clarify regulations for the crypto industry, but the regulatory environment remains fragmented, particularly concerning tokenized equities.

Caroline Ellison has accepted a position at Mana Fund, which is associated with the effective altruism movement and was initially funded by FTX. The fund received $1.5 million from FTX, and there is an ongoing effort to recover a $500,000 donation. There is ongoing debate about whether her new role can be classified as finance.

Poland's state-owned oil company has been defrauded of $230 million in an oil transaction involving USB sticks containing Tether. This payment method has drawn criticism for being unnecessarily theatrical. The company was reportedly attempting to purchase oil from Venezuela to bypass sanctions.

In funding news, Tari raised $13 million, Velocity secured $10 million, Fin.com obtained $20 million, and Deadstock raised $2.5 million from various investors. On-chain collectibles are gaining traction, although skepticism persists regarding their viability compared to traditional collectibles.

The Department of Energy has launched a $215 million competition aimed at accelerating the development of fault-tolerant quantum computers, signaling a strong U.S. commitment to advancements in quantum technology. AI is anticipated to play a crucial role in this acceleration and may also be employed to decode historical ciphers.

The episode highlights ongoing challenges related to the Clarity Act, with claims that Congress may continue to mislead the public about its implications. There is speculation that future rulemaking could address significant aspects of the Clarity Act, potentially enabling asset managers to issue products on-chain if the rulemaking is sufficient. However, uncertainty remains regarding the authenticity of discussions surrounding the Act, raising questions about their depth and substance.

Additionally, concerns are raised about artificial intelligence leaking material non-public information (MNPI), underscoring the risks associated with AI in financial contexts. Poland's oil supply issues are also noted, which could have broader market implications.