Open USD rattled Circle's stock, but its key backers still support USDC
The launch of Open USD, supported by Coinbase, Visa, and Mastercard, initially caused concerns about competition with Circle's USDC stablecoin. Following the announcement, Circle's market value dropped by billions, with shares falling as much as 20% and not yet recovering. Despite this, executives from Coinbase, Visa, and Mastercard emphasized a multi-stablecoin, multi-chain approach rather than favoring a single winner. Coinbase's CFO Alesia Haas confirmed the exchange met conditions to renew its commercial agreement with Circle and will continue expanding the USDC ecosystem. Coinbase CEO Brian Armstrong described the platform as multi-stablecoin, supporting whichever stablecoins customers choose to use. Visa CEO Ryan McInerney stated the company is multi-coin and multi-chain, aiming to help clients connect to stablecoins gaining adoption. Mastercard CEO Michael Miebach said Mastercard supports USDC, Paxos-led USDG, and other stablecoins, calling Open USD another coin enabled on their network. Miebach described Open USD as a payments-focused utility with shared economics, noting governance would not involve all 140-plus partners. Visa launched its Visa Stablecoin Platform last month, initially supporting Open USD to enable banks and fintechs to access and move stablecoins. Analysts noted many Open USD partners have made light commitments, emphasizing that execution and existing liquidity in USDC and USDT matter more. An Open Standard spokesperson declined to comment on governance details but promised more information at Open USD's launch later this year. The stablecoin market is shifting as banks, payment networks, and fintech firms increasingly seek to issue or distribute digital dollars amid clearer regulation.
Republicans Continue To Blame Democrats Over Stalled Crypto Clarity Act
Senator Bill Hagerty emphasized on Fox News that the U.S. cannot afford to lag behind global digital asset regulation efforts as the Senate recess approaches. The Clarity Act has faced a deadlock throughout 2026, partly due to banking lobby concerns regarding stablecoin yields. An updated version of the Clarity Act was introduced in July, which now prohibits government officials and their families from issuing or promoting cryptocurrencies. Major financial institutions, lawmakers, and companies have supported the bill, which passed the House last year with strong bipartisan backing. Despite this support, several Democrats have expressed concerns about the bill's wording, stating it requires further refinement. Republicans continue to blame Democrats for delaying the Clarity Act, urging swift passage before the Senate recess begins. A bipartisan draft circulates among lawmakers, but some Republicans claim Democrats are being overly particular about the bill's language. Republican Majority Leader John Thune stated the bill would likely receive an initial vote this week despite legislative congestion. Thune highlighted the importance of passing the legislation promptly, citing blockchain technology's transformative potential for finance and the economy. Senator Hagerty also noted the need to follow up the Genius Act with comprehensive digital market regulation through the Clarity Act. Republicans accuse Democrats of political maneuvering, with Senator Cynthia Lummis alleging deliberate obstruction of the bill's progress. Former Republican Senator Pat Toomey stressed the urgency of passing the Clarity Act within the current week to advance crypto market clarity.
BitGo Names Chainlink CCIP Exclusive Cross-Chain Provider for $7.7 Billion WBTC
BitGo announced on August 4 that it will make Chainlink's Cross-Chain Interoperability Protocol (CCIP) the exclusive cross-chain infrastructure for Wrapped Bitcoin (WBTC). This migration involves more than $7.7 billion worth of WBTC, which BitGo calls the largest omnichain fungible token by market capitalization. BitGo stated that all future BitGo-issued assets will use CCIP by default, marking a significant shift from their previous cross-chain provider. The previous provider, LayerZero, was not mentioned by name in BitGo's announcement, which referred to it only as a "legacy solution." BitGo emphasized that verifier configuration is now a regulated issuer's responsibility to defend to clients, rather than an implementation detail. LayerZero had experienced a $292 million exploit in April involving a single-verifier configuration, which allowed unauthorized token unlocking. LayerZero committed to refusing to sign as the sole required attestor on any channel and updated Endpoint v2 defaults to a 3-of-3 configuration by July 10. BitGo highlighted four reasons for switching to Chainlink CCIP, including its institutional adoption, controls, reliability, and risk management. Chainlink's CCIP is secured by at least 16 independent node operators diversified across regions and holds SOC 2 Type 2 and ISO 27001 certifications. BitGo retains full ownership of its token deployments and does not rely on CCIP-specific code within its smart contracts. Chainlink reports that $15 billion in value has migrated to its infrastructure across 13 teams, with BitGo accounting for over $7.7 billion of that amount.
BlackRock brings $311B money market funds onchain with Europe launch
BlackRock has launched tokenized money market fund share classes on Ethereum, covering $311 billion in institutional liquidity assets across Europe. The initiative includes 12 tokenized share classes across multiple funds such as ICS Euro Government Liquidity and Sterling Government Liquidity. Kinexys by JPMorgan provides the tokenization platform linking blockchain activity with the existing fund register for these on-chain tokens. Each tokenized share represents ownership of an underlying ICS fund share, while the official shareholder register remains off-chain. Approved institutional investors can transfer tokenized shares directly between eligible wallets anytime through smart contracts. This structure combines yield-bearing money market fund exposure with near real-time on-chain visibility and maintains compliance controls. The rollout extends BlackRock's tokenization efforts beyond the U.S., following two blockchain-based money market products introduced earlier. One U.S. product, BSTBL, offers tokenized shares of the Select Treasury Based Liquidity Fund on Ethereum, differing from stablecoins by ownership structure. BRSRV, designed for stablecoin reserve management, reinvests dividends daily and supports multi-chain use for institutional users. The European launch makes on-chain share classes initially available in Bermuda, Estonia, France, Germany, Ireland, Lithuania, Luxembourg, Malta, the Netherlands, Spain, Sweden, Singapore, and the United Kingdom. BlackRock's tokenized money market funds are intended for institutional uses such as corporate treasury operations and digital collateral management. The company has continued adding blockchain-based products alongside its regulated cryptocurrency business, participating in DTCC pilots for tokenized assets.
Odds of CLARITY crypto legislation passing sink to 27% as Treasury, White House, SEC, and Senate leads quit
The CLARITY Act passed the Senate Banking Committee with a 15-9 vote but still requires a floor vote and 60 votes to overcome a filibuster in the Senate. Cynthia Lummis, chair of the Senate Banking Committee's digital assets subcommittee, will not seek re-election and will leave the Senate in January 2027. This departure is part of a broader succession issue affecting Treasury, the White House, the SEC, and the Senate during ongoing CLARITY negotiations. The House passed its own version of the legislation, H.R. 3633, by a 294-134 vote in July 2025, but ethics provisions and banking opposition remain obstacles. Market structure oversight remains unresolved in Congress, with CLARITY aiming to define SEC and CFTC jurisdiction over digital assets and commodity spot markets. The Senate version of CLARITY would establish registration rules for digital commodity exchanges, brokers, and dealers, including disclosures and cybersecurity requirements. Four key crypto allies—Tyler Williams, Harry Jung, Hester Peirce, and Cynthia Lummis—are leaving influential federal roles amid the rulebook's unfinished status. Tyler Williams coordinated Treasury's stablecoin implementation and bank guidance, while Harry Jung linked the White House, Congress, and agencies daily. Harry Jung announced on July 20 that he would leave the White House Crypto Council within two weeks, ending his coordination role in digital asset policy. Hester Peirce, who leads the SEC's Crypto Task Force, plans to leave the agency later this year, further draining expertise during critical negotiations. Tyler Williams is set to leave his Treasury post on July 31, marking the fourth senior crypto departure from federal power this year. Without the CLARITY statute, platforms continue making listing and custody decisions under shifting agency interpretations and state rules without Congressional votes.
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