Senate Fails To Pass CLARITY Act

Happy Tuesday, September 15, 2026.

A Senate vote falls short of 60 votes, halting the CLARITY Act from passing. TheDAO Security Fund launches ETHSecurity Initiatives for critical ecosystem infrastructure. And Aave DAO proposes an isolated V4 hub to enable institutional borrowing against offchain custodied collateral.

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Senate Fails To Pass CLARITY Act

The Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act after a floor procedural vote tallied 49 Yea votes to 51 Nay votes, falling short of the 60 votes required to overcome a filibuster. Introduced in May 2026 by Senate Banking Committee Chairman Tim Scott, the bill proposed a federal regulatory framework splitting oversight between the CFTC for digital commodities and the SEC for digital asset securities. The legislation advanced out of the Senate Banking Committee on a 15-9 vote.

For crypto operations, the bill codifies self-custody rights, banned interest on idle stablecoins while allowing activity rewards, and integrated Blockchain Regulatory Certainty Act language that united founders behind Section 604 protections. The terms would shield non-custodial developers, smart contract deployers, and node operators from financial intermediary registration.

TheDAO Fund Opens ETHSecurity Initiatives

TheDAO Security Fund opened its second funding round, introducing the ETHSecurity Initiatives, a new format to source, evaluate, and fund critical Ethereum infrastructure and security tooling. The round is live with requests for proposals for a formally verified compiler, client-verified ENS resolution, local-first Safe interfaces, and shared fuzzing tooling. Anyone can also submit their own request for proposals. The round runs over a four-month period, with approved RFPs open for receiving direct donations.

In mid-November, ETHSecurity Badge holders will decide how to allocate treasury capital toward top projects, with final matching and fund distributions taking place in January 2027. Unlike previous grants, every initiative requires teams to dedicate at least one-third of their requested budget to measurable adoption milestones. Milestone payouts are managed by Giveth and disbursed only after review by an independent technical evaluator. TheDAO Fund is backed by a 69,000 staked ETH treasury, with generated yield allocated for ecosystem security funding.

Aave Proposes Custodied Collateral Lending

An Aave DAO proposal seeks Custodied Collateral Lending, an integration powered by Aave V4 that allows institutional borrowers to draw stablecoins against assets held offchain with regulated custodian Anchorage. The architecture relies on an isolated Liquidity Hub and a dedicated Spoke governed by the Aave DAO, ensuring custodied collateral remains segmented from main liquidity pools with zero draw caps.

The underlying assets remain with Anchorage throughout the loan lifecycle. The proposed market aims to address legal requirements for institutional funds to hold assets with a custodian. The implementation would use Chainlink to coordinate position state across offchain custody and onchain lending via its CustodySync infrastructure and Proof of Reserve feeds.

Misc News

Bread privacy wallet waitlist is open. L2Beat introduces an ossification score. The EF is hosting an AMA tomorrow. Robinhood employees are charged with insider trading. And Nethermind releases 2.0.0-rc2.

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