In this first May edition of crypto regulatory affairs, the CLARITY Act advanced through the U.S. Senate Banking Committee on a 15-9 partisan vote, marking a critical step toward comprehensive U.S. crypto regulation. The bill now faces hurdles including bipartisan disagreements over ethics provisions and DeFi treatment before a full Senate vote. Meanwhile, Canada's Liberal government proposed a total ban on crypto ATMs in its spring economic update, citing fraud and illicit finance concerns. The ban would close a primary scam vector, though current law already requires ATM operators to register as money service businesses. Abu Dhabi also finalized a staking framework, while Japan and South Korea pursue tighter rules on cryptoasset use and AML compliance.

Key facts

• CLARITY Act passed Senate Banking Committee 15-9, mostly along party lines.
• Compromise language prohibits yield on passive stablecoin holdings but allows rewards on other activities.
• Canada proposes total ban on crypto ATMs to combat fraud and illicit finance.
• Abu Dhabi finalizes staking framework; Japan and South Korea tighten crypto rules.