The week distilled the crypto market to a single process — the U.S. government apparatus is integrating the sector into formal law. A Senate bill on market structure is moving forward with a hundred amendments and an unresolved ethical conflict. The regulator is expanding crypto powers with only one out of five commissioners. Both the U.S. and the UK are simultaneously easing rules for stablecoin issuers. Institutional capital is flowing into settlement infrastructure rather than tokens. The Structure of the Crypto Market is Being Written into Law — Along with a Conflict of Interest The Senate Banking Committee backed the 309-page Clarity Act with a 15 to 9 vote, now also supported by Coinbase. By May 14, over 100 amendments had been introduced: Jack Reed tightened the definition of yield, Chris Van Hollen demanded a ban on officials and their families owning digital assets, and Elizabeth Warren called for closing their accounts at the Federal Reserve. In the Q1 2026 declaration, Donald Trump's family purchased Coinbase shares nine times, the largest deal being up to $250,000. Ruben Gallego threatened to withdraw support without ethical standards. According to Polymarket, there is a 69% chance of adoption in 2026. CFTC Gains Crypto Powers but Loses Quorum The U.S. Commodity Futures Trading Commission (CFTC) on May 14 exempted prediction markets from swap reporting — 19 companies, including Polymarket US and Kalshi, received the exemption, and the commission contested Ohio's lawsuit against Kalshi. House Agricultural Committee heads Glenn Thompson and Angie Craig called for filling all five seats: since December 2025, Michael Selig has been the sole commissioner. Amy Klobuchar introduced an amendment to the Clarity Act, freezing new CFTC rules until at least four commissioners are appointed. The Race for Stablecoin Issuers Is Easing Regulators on both sides of the Atlantic are relaxing requirements, competing for issuers. Bank of England Deputy Governor Sarah Breeden admitted on May 15 the need to reconsider ownership limits — £20,000 ($25,000) for individuals and £10 million ($13 million) for companies — and the requirement to hold 40% of reserves in interest-free central bank deposits. In the U.S., the Clarity Act allows for yield on stablecoins tied to balance and term, opposed by the American Bankers Association.