Launchy Regulatory Roundup #80 - Stablecoin Yield Deal Reached in Senate

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Welcome to our 80th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: Stablecoin Yield Deal Reached in Senate 👀 

• Global Legal Roundup

• Case Study: Kalshi Faces Multi-State Legal Battle 🔎 

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HEADLINE

Stablecoin Yield Deal Reached in Senate

State of play: Senators Angela Alsobrooks and Thom Tillis, alongside the White House, reached an "agreement in principle" on stablecoin yield treatment, clearing one of the last major sticking points blocking a broader crypto market structure bill.

• GENIUS bans direct yield payments to holders but allows third-party platforms like Coinbase to offer rewards, sparking the debate.

• Banking advocates warned stablecoin yield could pull deposits from community banks, while crypto firms argued restrictions would stifle innovation.

• The White House hosted three brokerage meetings before the breakthrough, with Patrick Witt calling it a "major milestone" toward passing the CLARITY Act.

• The Senate Banking Committee plans an amendment and vote hearing in April after Easter recess, per Sen. Cynthia Lummis.

• A floor vote requires 60 yes votes, needing Democratic support and reconciliation with the Senate Agriculture Committee.

What’s Next: Senate Banking Committee votes in April, then reconciliation with the Agriculture Committee before a full floor vote.

Why it Matters: The deal balances innovation with deposit flight concerns, though ethics and illicit finance issues remain unresolved.

Our Take: Real progress, but ethics and illicit finance issues remain, and the 60-vote threshold means Democrats can still kill this.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 SEC approves Nasdaq tokenized equities trading pilot.

• 🇺🇲 Kentucky crypto ATM bill adds hardware wallet clause.

• 🇺🇲 CFTC details how to use digital assets as derivatives collateral.

• 🇺🇲 CFTC won’t pursue broker registration action against Phantom.

• 🇺🇲 Gemini hit with investor lawsuit over strategy shift, stock slump.

• 🇺🇲 SEC encourages firms exploring tokenization to ‘come in and talk to us.’

• 🇺🇲 Senate Banking Committee eyes April vote on crypto market structure bill.

• 🇺🇲 SEC & CFTC unveil guidance declaring most digital assets are not securities.

• 🇦🇷 Argentina orders nationwide block of Polymarket.

• 🇧🇷 Brazil's finance minister shelves crypto tax consultation.

• 🇨🇦 Canada revokes 47 crypto money licenses, vows to continue.

Europe:

• 🇬🇧 UK lawmakers urge 'immediate ban' on crypto political donations.

Middle East & Africa:

• 🇰🇪 Kenya seeks public comment on rules covering licensing and stablecoin backing.

APAC:

• 🇻🇳 Vietnam prepares to restrict overseas crypto trading.

• 🇰🇷 South Korean lawmakers push to abolish upcoming 22% crypto tax.

• 🇦🇺 Senate committee backs crypto bill requiring platforms to get licensed.

CASE STUDY

Kalshi Faces Multi-State Legal Battle

State of play: Kalshi is under fire across multiple states as Arizona filed 20 criminal charges against the platform for illegal betting on sports and elections, while Nevada issued a two-week temporary restraining order halting its operations.

• Arizona AG filed 20 criminal charges, including 4 counts of election wagering on races like the 2028 presidential and 2026 Arizona gubernatorial contests.

• An Ohio judge also denied Kalshi's motion for a preliminary injunction, ruling there is no evidence Congress intended to preempt state sports gambling laws.

• Nevada's restraining order stems from a cease-and-desist issued last year, and the Ninth Circuit denied Kalshi's motion to stay the case ahead of the ruling.

• The CFTC has asserted federal jurisdiction over prediction markets, filing an amicus brief and releasing guidance on list event-based contracts.

• Kalshi called Arizona's charges "seriously flawed," claiming they were filed four days after it sued in federal court to short-circuit the judicial process.

Our Take: Kalshi is playing a federal preemption strategy across every state simultaneously, but it's losing in court so far. Until the CFTC's authority is explicitly affirmed by a federal court or Congress, the multi-state pile-on will keep coming.

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