On May 3-4, 2026, the cryptocurrency market saw significant regulatory and institutional developments, primarily centered on U.S. legislation for digital assets, the New York Stock Exchange's move toward tokenized securities, and major venture capital fundraising.
CLARITY Act Moves Forward
Coinbase reported that Senate negotiators reached a compromise on a disputed stablecoin rewards provision tied to the CLARITY Act. The agreement could allow the bill to move to a markup in the Senate Banking Committee as soon as May 11, after months of delay. The dispute centered on whether crypto firms and stablecoin issuers can offer rewards to users. Banks argued that yield-like rewards could pull deposits away from lenders, while crypto firms said they need room to reward real platform use.
Coinbase Chief Policy Officer Faryar Shirzad stated: “In the end, the banks were able to get more restrictions on rewards, but we protected what matters.” He confirmed that crypto platforms retained the ability to offer rewards based on real network and platform activity. The compromise was reportedly negotiated by Senators Thom Tillis and Angela Alsobrooks. The language would ban rewards that work like interest or yield on a bank deposit, giving banks part of what they wanted while leaving a path for crypto rewards tied to user activity.
Coinbase Chief Legal Officer Paul Grewal commented on X: “Judging by my feed, the rewards language released last night was either a complete giveaway to Coinbase, a complete capitulation by Coinbase to the banks, or had nothing whatsoever to do with Coinbase. I’d say that means it’s the right language. Onward.” Grewal previously stated the outcome “preserves activity-based rewards tied to real participation on crypto platforms and networks, which is what the bank lobby said they wanted.”
The reported structure for stablecoin yield includes: a prohibition on rewards “economically or functionally equivalent to the payment of interest”; permissible reward programs tied to “bona fide platform activity” or “activity-based participation”; and a directive for regulators to establish a disclosure framework and catalog of permissible reward activities. The bill still requires resolution with the Senate Ag Committee, a full Senate vote, and alignment between House and Senate versions before reaching the White House.
NYSE Files for Tokenized Securities Trading
The New York Stock Exchange filed a proposed rule change with the SEC to allow tokenized versions of eligible securities to trade on its market. The plan would operate under DTC’s three-year tokenization pilot. Eligible tokenized securities must keep the same CUSIP, ticker, rights and privileges as their traditional versions. They would trade on the same order book with the same execution priority, with clearing and settlement through DTC on a T+1 basis. The NYSE also stated it is “assessing various methods of tokenization” and may file more proposals if it chooses another structure.
Founders Fund Raises Record $6 Billion
Peter Thiel’s Founders Fund closed a new $6 billion fund, the largest raise in the firm’s history. The vehicle will focus mainly on late-stage startup investments. Approximately $4.5 billion came from limited partners, including sovereign wealth funds, while Thiel, management, and employees contributed the remaining $1.5 billion.
Tether Backs Bitcoin Merger Plan
Twenty One Capital shares rose after Tether backed a merger plan involving Strike and Elektron Energy. The proposal would combine Bitcoin treasury exposure, payments, and mining infrastructure. Strike would add payments and financial services, while Elektron would add mining operations. Tether said the deal could bring together “Mallers’ product, brand, and consumer Bitcoin leadership” with Raphael Zagury’s operating and capital markets experience.
