Clarity Act Advances as Galaxy Wins BitLicense and Bitcoin Depot Collapses
The U.S. Senate Banking Committee handed the cryptocurrency industry a major legislative victory last week, advancing the Clarity Act on a 15-to-9 vote. The bill, widely considered the industry's top regulatory priority, cleared the panel with two Democrats crossing the aisle to join all committee Republicans in support. If enacted, the legislation would establish the Commodity Futures Trading Commission as the primary regulator for large portions of the crypto market while the SEC retains authority over digital securities.
The path to becoming law remains long and uncertain. The bill still needs to clear the full Senate, where 60 votes will be required, and then reconcile with a separate House version before reaching the president's desk. Banks, labor groups and law enforcement agencies have lined up against it, warning that certain provisions could harm consumers and destabilize financial systems. Nevertheless, the bill's advancement marks the most concrete legislative progress crypto has seen in years, and Coinbase shares rallied on the news.
Galaxy Digital Secures New York BitLicense for Institutional Push
On the institutional front, Galaxy Digital received a BitLicense and money transmitter license from New York regulators, clearing a significant hurdle for Mike Novogratz's firm to expand its crypto trading and custody services in the state. New York's BitLicense is among the most demanding and coveted regulatory approvals in the U.S. digital asset space, and the green light positions Galaxy to deepen its footprint with institutional clients at a pivotal moment for regulated crypto services.
Not all corners of the industry are thriving, however. Bitcoin Depot, one of the largest U.S. crypto ATM operators, filed for Chapter 11 bankruptcy protection, with state-level regulatory pressure cited as a key driver of the company's financial deterioration. While the federal government has grown notably more accommodating toward crypto since early 2025, state attorneys general have moved in the opposite direction, creating a fragmented compliance burden that smaller operators have struggled to absorb. The filing underscores how uneven the regulatory landscape remains even as Washington edges toward sweeping federal reform.
Taken together, Monday's headlines capture a market defined by sharp contrasts: landmark legislation inching forward in Congress, institutional players locking in hard-won licenses and retail-facing businesses buckling under a patchwork of state enforcement.