Launchy Regulatory Roundup #112 - Binance Hack Revives Clarity Act Push

CFTC Takes Utah to Court

Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
November 01, 2026

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In Today's Edition:

Headline: Binance Hack Revives Clarity Act Push
Global Legal Roundup
Case Study: CFTC Takes Utah to Court

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HEADLINE

Binance Hack Revives Clarity Act Push

State of play: Washington is using the Binance hack to restart the stalled Clarity Act, even though issuers froze about $3B without it and the bill has been stuck in the Senate over Trump’s own crypto wealth.

Trump said he is looking into the hack and called crypto “a little bit dangerous,” while TRM Labs attributed the attack to TraderTraitor, a North Korean hacking unit.
CFTC Chair Michael Selig said the hack proves the case for the agency’s Oct 5 framework, blaming offshore exchanges that operate outside US safeguards.
Sen. Cynthia Lummis said the bill would let firms freeze funds the moment law enforcement calls; Better Markets says a court order would still be needed, and Solana Policy Institute says it would not.
The Digital Chamber urged Congress to pass a bill before it adjourns that would give the CFTC authority over exchanges and keep customer funds separate from company funds in bankruptcy.
Rep. Tom Timmons raised national security concerns, warning that rogue regimes are using stolen digital assets to fund nuclear and missile programs.

What’s Next: Pressure is building to pass the Clarity Act before Congress adjourns, though the Senate standoff over Trump’s crypto wealth remains unresolved.

Why it Matters: The biggest hack in crypto history has handed regulators and lobbyists a concrete case for federal oversight of exchanges.

Our Take: Binance.com is an offshore exchange, so a US law would not have covered it. The hack makes a better argument for bringing exchanges onshore than for the Clarity Act itself.

GLOBAL LEGAL ROUNDUP

America:

🇺🇸 Ripple gains final OCC approval to launch national trust bank.
🇺🇸 CFTC sues Utah as battle over prediction market regulation intensifies
🇺🇸 OCC calls on community banks to enter the stablecoin payments market.
🇺🇸 Crypto braces for potential shift in congressional oversight after midterms.
🇺🇸 Trump says they're looking into Binance hack as calls grow for crypto rules.
🇨🇦 Canada opens consultation on draft stablecoin rules, maintains ban on yields.

Europe:

🇬🇧 HTX exits the UK after settling with the FCA.
🇫🇷 French Senate adopts bill for automatic sharing of crypto tax data.

APAC

🇰🇷 South Korea weighs fourth delay of crypto gains tax, eyes 2029 start.
🇹🇭 Thai Supreme Court rules bitcoin is property after thief challenges conviction.

CASE STUDY

CFTC Takes Utah to Court

State of play: The CFTC is defending Kalshi against the states while investigating Polymarket, a split that shows the agency fighting less for prediction markets as a whole than for its exclusive jurisdiction and for keeping US activity onshore.

The lawsuit names Utah and its Attorney General Derek Brown, coming after the state sued Kalshi and called it a “public nuisance” that breaks gambling laws on sports, elections and politics.
Utah is the CFTC’s tenth state lawsuit, following Arizona, Connecticut, Illinois, New York, Wisconsin, Minnesota, Rhode Island, New Mexico and Kentucky.
Chair Michael Selig says Congress gave the CFTC sole oversight of commodity derivatives, and he is pressing that claim through rulemaking as well as litigation.
States argue sports betting falls under their authority and accuse the platforms of operating illegally and dodging taxes, a dispute that could reach the Supreme Court.
Reuters reports the CFTC is investigating whether Polymarket broke its 2022 settlement, under which it agreed to keep US users off its offshore platform.

Our Take: With ten lawsuits filed, the CFTC is acting more like Kalshi’s defense counsel than its regulator. If the Supreme Court sides with the states, the agency will have spent its credibility on a fight it lost.

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