Author: Gabby

The CLARITY Act faces a critical deadline on May 21, after which the window for passage may close until 2030. Ripple CEO Brad Garlinghouse emphasized at XRP Las Vegas on April 30 that the current political alignment—with the House, Senate, and White House united on crypto legislation—is exceptionally rare and could dissolve after the midterm elections.

The bill has garnered over 120 supporters, including major firms like Coinbase, Kraken, Circle, and Andreessen Horowitz, along with backing from the White House, SEC Chair Paul Atkins, and Treasury Secretary Bessent. Despite this broad support, the legislative path remains arduous. Senators Cynthia Lummis and Bernie Moreno have independently warned that if the bill doesn’t pass in 2026, the next opportunity won’t arise until 2030.

Several procedural steps must be completed before May 21: a Banking Committee markup, a committee vote, a 60-vote Senate floor threshold, reconciliation between Senate Banking and Agriculture Committee versions, and final reconciliation with the House text from July 2025—all followed by the President’s signature. With the Senate returning on May 11, only about eight working days remain.

The April markup deadline was missed due to the Kevin Warsh confirmation hearings consuming the Banking Committee’s schedule. Now, the compressed timeline leaves little room for delay. Senator Tillis has indicated he will request committee chair Tim Scott to schedule a markup promptly.

Senator Lummis, chair of the Banking Subcommittee on Digital Assets, stressed at the Bitcoin 2026 Conference on April 27 that the simultaneous alignment of all three branches on crypto legislation is unprecedented and fragile. She is not seeking re-election, removing personal political motives from her advocacy. Meanwhile, Mike Novogratz expressed optimism on a recent podcast, suggesting the bill could pass in May, but Galaxy Research places the odds at 50-50 or lower, and Polymarket gives it approximately 46% probability.

The crypto market has been watching the CLARITY Act closely, as its passage could significantly boost institutional adoption. The coming days will determine whether the bill advances or stalls for nearly four years.

The path for interest rate reductions in 2026 has become clouded, according to Minneapolis Federal Reserve President Neel Kashkari. While he previously anticipated one or two cuts later this year, recent geopolitical developments have forced a more measured stance. The escalating conflict with Iran and the resulting surge in oil prices have introduced significant uncertainty into the inflation outlook, prompting Kashkari to emphasize a data-dependent approach rather than committing to a fixed timetable.

Kashkari noted that before the Iran war intensified, he believed inflation would moderate sufficiently to allow for one or two rate cuts in 2026. However, the conflict now represents a new shock that complicates the economic landscape. He stressed the need to evaluate both the duration and magnitude of the war’s impact on energy prices before making any firm decisions. This marks a shift from his earlier, more optimistic view expressed in early March, when he suggested a single cut could be plausible as inflation pressures eased.

Recent inflation and growth data from March, while not alarming, are insufficient to alter the Federal Open Market Committee’s policy statement, Kashkari argued. He maintained that officials require more information before adjusting their stance, whether it be toward combating inflation or supporting the labor market. This cautious perspective aligns with his earlier warnings that inflation remains “excessively high,” even as the economy has proven more resilient than anticipated.

The central question for policymakers, Kashkari emphasized, is how persistent higher oil prices will be and whether they will materially slow progress toward the Fed’s 2% inflation target. He highlighted energy costs as a key swing factor, noting that the war has obscured the policy outlook. At the same time, he urged the Fed to watch both sides of its dual mandate, cautioning against keeping rates too high for too long, which could unnecessarily harm the labor market.

Before the latest geopolitical shock, Kashkari had projected inflation running between 2.5% and 3%, with a downward trend. Now, he has adopted a more explicitly data-dependent stance, stating it is too soon to know if the rate cuts he once penciled in for 2026 can safely occur. With tariffs and war-driven oil prices adding to uncertainty, the path forward remains unclear.

In a significant move underscoring its commitment to frontier technologies, 137 Ventures has secured over $700 million across two new funds. This injection brings the firm’s total assets under management to more than $15 billion as of March 2026, establishing it as a major player in late-stage tech investing. The growth-stage firm, founded in 2010 by Justin Fishner-Wolfson and S. Alexander Jacobson, focuses on providing liquidity to early stakeholders and primary capital to what it calls ‘generational technology companies.’

The newly raised capital is earmarked for high-impact bets in artificial intelligence agents, robotics, advanced industrial systems, and novel aerospace propulsion. Recent additions to its portfolio include Cognition, Impulse Space, Hadrian, and Physical Intelligence—companies specializing in AI copilots, in-space logistics, automated manufacturing, and embodied AI. Over the last year, 137 Ventures has deployed more than $1.7 billion, concentrating its investments in a select few high-conviction opportunities rather than spreading resources thinly across numerous early-stage deals.

A standout in its portfolio is SpaceX, where 137 Ventures has invested across roughly 24 rounds since 2010. Founder Fishner-Wolfson revealed to Bloomberg that the firm now holds over $10 billion worth of SpaceX shares, representing more than 1% of the company. This stake could become one of venture capital’s most lucrative positions if SpaceX proceeds with an initial public offering at a valuation exceeding $1 trillion, as speculated by bankers and secondary-market indicators.

Beyond space, 137 Ventures has backed companies like Anduril, Gusto, and Ramp, reflecting a thesis that AI-powered defense, fintech, and enterprise infrastructure will drive outsized returns as automation reshapes industries. For founders developing AI agents, robotics platforms, or space-adjacent ventures, the new funds signal that 137 Ventures will be an active late-stage partner, particularly for those requiring patient capital for capital-intensive, long-duration projects.

The crypto venture capital landscape experienced a sharp contraction in April, with total funding falling to just $659 million across 63 deals. This represents a dramatic 74% decline from March’s $2.6 billion spread over 84 rounds, bringing monthly investment levels to their lowest point since 2024. The downturn signals a significant shift in investor sentiment after a period of relative optimism earlier in the year.

According to data aggregated by Cointelegraph, year-to-date crypto VC funding for 2026 now stands at approximately $5.64 billion. While still substantial, this figure trails the pace set in late 2025, particularly after October 2025 saw a monthly peak of $3.84 billion. Since then, funding volumes have steadily declined, mirroring a broader pullback in token prices and a roughly 37% drop in global crypto market capitalization over the same window. This environment has forced late-stage investors to reevaluate valuations and contend with markdowns.

The downward trend was already evident in February, when Phemex reported about $866 million raised across 62 transactions, a 46% decrease from January. Despite the pullback, certain sectors continued to attract capital, albeit at smaller ticket sizes. April’s numbers confirm that the market has entered a full-blown reset, characterized by fewer large growth-stage rounds and heightened scrutiny for new token launches. Industry data indicates that roughly 85% of tokens launched in 2025 are now trading below their initial issue price, further dampening enthusiasm.

Within this challenging environment, decentralized finance (DeFi) protocols led the pack with 12 deals, followed by blockchain infrastructure and services with eight, and AI-adjacent crypto projects also securing eight rounds. These areas remain focal points for investors seeking projects with tangible utility. On the investor side, GSR’s venture arm emerged as the most active participant in April, backing four separate transactions related to trading infrastructure and liquidity solutions. Major players like Tether, Animoca Brands, and Coinbase Ventures each contributed to three deals, though they tended to favor smaller, earlier-stage investments rather than the massive growth checks typical of previous cycles.

For founders, the message is clear: while capital remains accessible, investors are more selective and price-sensitive, prioritizing products that can endure lean conditions and demonstrate real-world usage over those driven solely by narrative. A slower pace of VC funding typically translates to fewer new token listings on exchanges, shifting the focus toward proving existing projects can deliver on their roadmaps without relying on another wave of easy money.