[News Brief] May 16, morning | U.S. Senate Banking Committee Advances CLARITY Act, a Crypto Market Structure Bill

U.S. Senate Banking Committee Advances CLARITY Act, a Crypto Market Structure Bill

Odaily reported that the U.S. Senate Banking Committee advanced the CLARITY Act, a crypto market structure bill, by a 15-9 vote.

The bill seeks to establish a comprehensive federal regulatory framework for the digital asset industry, and also received support from Democratic Senators Ruben Gallego and Angela Alsobrooks.

However, TD Cowen raised the probability of the bill’s passage from about one-third to 40%, while noting that substantial disagreements still remain. The bill had previously been delayed due to controversy surrounding stablecoin revenue sharing, conflicts of interest, and ethics provisions.

Benchmark analysts also assessed that the current level of support is not enough to guarantee final passage in the Senate.

Intesa Sanpaolo, Italy’s Largest Bank, Expands Crypto-Related Asset Exposure to $235 Million

Intesa Sanpaolo, Italy’s largest bank, expanded its crypto-related asset exposure to $235 million in the first quarter of 2026, according to Wu Blockchain citing Criptovaluta.

This exposure increased significantly from about $100 million in the previous quarter. It is seen as another example of the broader trend of traditional financial institutions increasing allocations to crypto-related assets.

Morgan Stanley’s Spot Bitcoin ETF MSBT Holdings Rise to 3,389 BTC

According to Arkham monitoring data, Morgan Stanley’s spot Bitcoin ETF, MSBT, increased its holdings to 3,389 BTC.

The current value of those holdings is estimated at approximately $273 million. U.S. spot Bitcoin ETFs have become a major investment vehicle for institutional investors, making changes in holdings a key point of market interest.

$114.77 Million USDT Transferred From Cefu to Binance

According to Whale Alert, 114,773,148 USDT, worth approximately $114,715,188, was transferred from Cefu to Binance.

The transaction was confirmed on the Ethereum network. Large stablecoin inflows to exchanges are often interpreted as dry powder for buying or as institutional fund movements.

Gamma Fund-Linked Address Transfers 11,035 ETH to Binance Over Two Days

An address believed to be linked to Gamma Fund transferred 5,480 ETH, worth about $11.93 million, to Binance.

PANews reported on May 16, citing on-chain analyst Eugene, that the address sent a total of 11,035 ETH, worth about $24.46 million, to Binance over the past two days. Most of the amount appears to match 11,215 ETH purchased in March at $1,999, suggesting an estimated realized profit of about $2.4 million if sold.

Lombard to Migrate Over $1 Billion in Bitcoin-Collateralized Assets to Chainlink CCIP

According to Odaily, DeFi protocol Lombard will gradually phase out its use of LayerZero and migrate more than $1 billion in Bitcoin-collateralized assets to Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

Bitcoin-related tokens issued by Lombard include LBTC and BTC.b. The first migration targets are Solana, Etherlink, Berachain, Corn, and TAC, while the use of LayerZero will also be discontinued on Morph and Swell.

Security concerns around cross-chain infrastructure have intensified following a $292 million hack involving Kelp DAO’s LayerZero bridge. Kelp DAO, Solv Protocol, Re, and Kraken have also taken similar migration steps, with total departing assets estimated at around $4 billion.

Hyperliquid Co-Founder Discusses CLARITY Act and On-Chain Derivatives Regulation With U.S. Policymakers

Hyperliquid’s co-founder discussed the CLARITY Act and regulatory approaches to on-chain derivatives with U.S. policymakers. The company said it would continue discussions for a potential U.S. service rollout.

According to PANews, Hyperliquid co-founder Jeff H. said via X that he met with several U.S. policymakers in Washington, D.C. to discuss regulatory directions for introducing the on-chain derivatives market.

He explained that part of the discussion focused on the technical aspects of how on-chain trading can evolve into a financial innovation that meets global user demand. The core principles of DeFi and the future outlook for on-chain markets were also discussed.

These discussions took place during the review process of the CLARITY Act, which addresses the U.S. digital asset market structure. Hyperliquid plans to continue related discussions in Washington as it explores entry into the U.S. market.

Israeli Military Conducts Airstrikes on Hezbollah Infrastructure in Southern Lebanon

According to Odaily, on May 16 local time, the Israeli military said it was conducting airstrikes on Hezbollah infrastructure in several areas of southern Lebanon.

The strikes come amid ongoing military tensions between Israel and Hezbollah, with instability in the Middle East potentially affecting risk-asset investor sentiment.

Bitcoin Falls Below $79,000

PANews reported on May 16, citing OKX market data, that Bitcoin fell below $79,000.

Bitcoin traded at $78,992.60, down 0.21% on the day.

Ethereum Drops Below $2,200

Ethereum fell below $2,200 on OKX, trading at $2,199.45.

PANews reported on May 16, citing OKX market data, that Ethereum was down 1.05% over the day.