Odds of the CLARITY Act becoming law this year on Polymarket fell sharply again on Monday after spiking the day before, as key Senate Democrats reportedly said they had not been swayed by Republicans’ “final” crypto bill proposal.  Polymarket traders initially saw a newly revised Republican proposal with expanded ethics provisions as a positive sign, sending the odds to 35%. However, their confidence was dashed as reservations about the revised text began mounting, with the odds falling back as low as 16% on Monday. US Senator Mark Warner, one of the Democrats involved in negotiations, reportedly said the revised ethics provision was not “near enough,” while Democrats involved in negotiations began preparing a counterproposal on Monday. Republicans need 60 votes to advance the bill, and failure on Tuesday could stall legislation that would determine how the US Securities and Exchange Commission and Commodity Futures Trading Commission divide oversight of the US crypto market.Key Democrats remain unconvinced by ethics offerPunchbowl News’ Brendan Pedersen reported that Senator Raphael Warnock said Democrats should not advance legislation that fails to address opportunities for corruption that are occurring “in real time.”Pedersen reported that Senator Ruben Gallego said the latest ethics offer left “much to be desired” and that he planned to work on a counterproposal. Pedersen separately reported that staff for Senator Elizabeth Warren on the Senate Banking Committee circulated talking points arguing that the proposed state AG enforcement mechanism could be overridden by a determination from White House ethics officials.Democrats have since sent their counterproposal to Republican negotiators, Politico’s Jasper Goodman reported, citing three people with knowledge of the matter.Not all Democrats oppose advancing the bill toward floor consideration. Senator Kirsten Gillibrand has privately urged colleagues to support the procedural motion, Politico reported. Republican Senator Cynthia Lummis said President Donald Trump had accepted two significant ethics provisions and that there was “nothing left to give” Democrats.The resistance adds to opposition from a coalition of 18 state attorneys general and raises further uncertainty about whether Republicans can assemble the votes needed to advance the bill. Banking and tribal groups challenge latest textThe Indian Gaming Association, a national organization representing tribal gaming interests, urged member tribes to press senators to vote against the bill, saying its proposed decentralized finance changes did not address Indian Country’s concerns about prediction markets. The association called for explicit language affirming that federal commodities law does not preempt tribal or state gaming laws, including the Indian Gaming Regulatory Act.Related: Revised CLARITY Act targets ‘non-decentralized’ DeFi operatorsEight banking trade groups also said the revised text failed to close loopholes allowing stablecoin rewards that function like deposit interest. According to the groups, the proposed regulatory “circuit breaker” would activate only after substantial deposit flight from community banks had already occurred.Crypto industry groups have urged senators to advance the legislation. In a statement on Monday, Blockchain Association CEO Summer Mersinger said the industry had made significant concessions to help build bipartisan support and urged every senator to vote yes. She argued that the bill would provide clear rules, protect consumers and deter illicit activity while preventing crypto jobs, developers and innovation from moving overseas. Magazine: Why are AI’s biggest companies suddenly asking to slow down?

Crypto exchange CoinEx said it is winding down operations, citing a prolonged crypto market downturn, sinking trading volumes and liquidity, and rising regulatory and compliance costs, according to an announcement on Tuesday.As part of the wind-down, CoinEx will halt new user registrations, referral commissions and other rewards. Futures contracts will enter a “Reduce-Only” mode. CoinEx will also stop accepting new orders or subscriptions across its fiat, margin trading, lending, earn, staking and strategic trading services.“After much reflection, I have come to accept a hard truth. CoinEx did not become one of the industry’s leading exchanges, and the security and compliance risks of running a crypto exchange have become increasingly difficult to contain,” CoinEx CEO Haipo Yang said in a post on X. The closure adds to a wave of crypto exchanges that have ceased operations this year for similar reasons, including BitMart, BitMEX and AscendEX. From Sept. 22, CoinEx will discontinue all non-spot services and onchain deposits, with the exception of CET deposits. From Sept. 29, all spot trading services will be discontinued, and non-USDT assets will be processed. From Dec. 22, the withdrawal period will end, and the platform will cease operations. Any unwithdrawn USDT will be transferred to an independent custodian, which will incur a monthly custody fee. CoinEx will also buy back CET at its initial listing price of 0.005 USDT per token, a slightly higher price than it was on Monday before the announcement. Related: BitMEX to shut down after 11 years in crypto derivativesCoinEx Wallet and CoinEx Vault will remain fully operational, as they operate independently of the exchange. CoinEx was launched in December 2017 by crypto mining pool ViaBTC. The crypto exchange is ranked 33rd with $58 million in 24-hour trading volume, according to CoinMarketCap. “To every user who has trusted and supported us over the past nine years, thank you for your trust and support in the past nine years. Thank you for being part of our journey.”Magazine: HYPE price could suffer as Binance takes its revenue: Alice Liu

Balancer, a decentralized exchange and automated market maker, has proposed winding down the protocol after its post-exploit restructuring failed to generate enough revenue, with its leader saying he underestimated how much a $128 million exploit in November would continue to weigh on adoption. The proposal was authored by Balancer Labs CEO Marcus Hardt and published on the Balancer governance forum on Monday. It calls for an orderly wind-down of the protocol and the distribution of its remaining treasury, currently worth more than $9 million, to BAL tokenholders.The proposal comes after Balancer Labs shut down in March, when executives opted to continue operating the protocol under a leaner structure. Hardt said Monday that while the restructuring succeeded in cutting costs and delivering the products promised to tokenholders, the revenue side of the plan fell short, echoing profitability challenges faced by several other DeFi protocols this year. “What did not come was enough revenue. Most of the protocol’s revenue still comes from v2, and v3 revenue has not grown to replace it. The product worked. It did not sell enough,” Hardt said in a statement on X. Data from DefiLlama show that Balancer’s monthly protocol revenue fell to $371,000 in November from $1.13 million in October after an exploit affecting composable stable pools on its legacy v2 protocol. Revenue continued to trend downward into 2026, with August revenue at just $56,781. “The November 2025 exploit hit legacy v2 pools. v3 is a different architecture, but the event followed the name into every conversation since and made traction harder to build,” Hardt said on the Balancer forum. “I underestimated how much the exploit would continue to limit adoption,” he added in a separate post on X. Balancer wind-down proposalUnder the proposal, Balancer would begin a phased shutdown next month, with new business development ending and liquidity providers given until Oct. 30 to prepare to exit the protocol. Meanwhile, pools that can be paused would move to withdrawal-only, while those that can’t be paused will continue working but have the protocol fee set to zero where contracts allow it. From Nov. 1, Balancer would operate only the minimal infrastructure needed to support withdrawals, and the DAO would be wound down, with a small team to manage the transition. The proposal sets aside up to $400,000 for the wind-down process.Related: Balancer Labs shuts down 4 months after $100M+ exploit, protocol to continueBAL holders would receive the remaining treasury on a pro-rata basis, with the first distribution scheduled for May 2027, when holders would burn their BAL in exchange for their share of the treasury assets. A second distribution would return unspent wind-down funds, unclaimed assets from the first distribution, followed by a “final sweep” six months later. Hardt said delaying a wind-down would eat into the treasury without changing the ultimate outcome.  “Continuing on the current path spends the treasury to arrive at the same place later. That treasury belongs to BAL holders. The question is whether what remains reaches holders while it is still substantial, or is spent first on a path that has already been tried,” he said. The wind-down requires approval from BAL holders, with a snapshot vote scheduled for Sept. 25 to 29. A rejection would leave Balance’s existing operating framework in place. Magazine: Why are AI’s biggest companies suddenly asking to slow down?

Cointelegraph is committed to providing independent, high-quality journalism across the crypto, blockchain, AI, and fintech industries.All news, reviews, and analyses are produced with full journalistic independence and integrity. For more details on our standards and processes, please read our Editorial Policy.

Crypto exchange Kraken has launched onchain yield vaults for select tokenized stocks and ETFs, allowing clients to earn returns by lending the assets through decentralized finance protocols, according to a Monday announcement.The new xStocks vaults support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx) and Nvidia (NVDAx), with yield generated by lending the assets through onchain markets. Yield is paid in the deposited xStocks, while withdrawal requests are processed within three days.The vaults use the same infrastructure as Kraken DeFi Earn, which launched in January and has since attracted more than $800 million in deposits, according to the company.The xStocks vaults are powered by Veda, with Sentora designing and managing the lending strategies used to generate yield. Assets are lent through DeFi markets such as Kamino on Solana, with Sentora setting exposure limits and monitoring collateral, liquidity and oracle conditions.The vaults are available to eligible Kraken clients in the European Economic Area and other markets, but are excluded in the United States, United Kingdom, Canada, Australia and the United Arab Emirates.Kraken’s launch comes amid rapid growth in tokenized equities. The distributed value of tokenized stocks and ETFs has climbed to about $2.84 billion, up from roughly $540 million a year ago, according to RWA.xyz data.Tokenized equities. Source: RWA.xyzCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.