What Birdai follows and why.

On July 29, 2026, the European Securities and Markets Authority published a new Q&A document sharpening compliance expectations under the Markets in Crypto-Assets Regulation. The guidance addresses ESG ratings, MiFIR-related considerations, and MiCA-specific obligations applicable to crypto-asset service providers. As of the Q&A's release, over 270 crypto-asset service providers are registered under MiCA within the EU.

New York Attorney General Letitia James argued that the pending CLARITY Act could weaken states' ability to prosecute crypto fraud by potentially preempting state investor protection laws and limiting local enforcement powers. James urged Congress to strengthen, rather than weaken, state oversight provisions in the bill. The comments came as the CLARITY Act's Senate floor prospects stalled ahead of the August recess.

As of July 27, 2026, the Senate is expected to hold a procedural motion to proceed on the Digital Asset Market Clarity Act (H.R. 3633) as early as July 27-28, with the bill reaching the floor during the week of August 3. The legislation outlines CFT (Countering the Financing of Terrorism) safeguards and defines SEC-CFTC jurisdictional roles over digital assets. Prediction markets are assigning only a 41% likelihood the bill actually passes, reflecting continued uncertainty over the 60-vote cloture threshold.

On July 27, 2026, the United States District Court for the District of Minnesota granted a preliminary injunction against Minnesota's prediction market statute, which had been set to take effect August 1, 2026. The ruling temporarily halts state-level restrictions on prediction market operations pending further litigation. The decision adds to the growing body of state-versus-federal conflict over jurisdiction of novel market structures like event contracts and prediction markets.

A CoinDesk analysis published July 26, 2026 argues that MiCA has moved regulatory focus beyond initial licensing toward whether smaller crypto firms can sustain the ongoing cost of long-term compliance. Lawyers quoted in the piece suggest the UK's proposed crypto framework could prove similarly demanding, and that banks with existing compliance infrastructure may become acquirers of smaller crypto firms unable to bear the costs. The piece frames this as a new phase of MiCA's rollout reshaping industry ownership structure.

Davis Polk published a client update on July 26, 2026 marking just over one year since the enactment of the GENIUS Act, the federal stablecoin framework. The update notes that the latest possible effective date of the Act remains uncertain, reflecting ongoing implementation questions a year after passage. No new rule text or enforcement action accompanied this anniversary commentary.

The SEC published a Federal Register notice granting accelerated approval of a MEMX LLC proposed rule change amending Rule 19.3(i) to permit listing of options on shares of commodity-based trusts holding multiple crypto assets. The filing establishes specific listing and withdrawal criteria, including a methodology for calculating total crypto asset supply that excludes unissued tokens. This adds to the growing regulated derivatives infrastructure referencing crypto assets.

On July 24, 2026, the National Fraternal Order of Police submitted a letter to the Senate Banking Committee endorsing the CLARITY Act, citing the bill's law enforcement and illicit-finance provisions. The letter notes that while the revised text reflects significant compromises made throughout the legislative process, it preserves the bill's critical developer protections and further strengthens its law enforcement provisions, including the AML/illicit-finance sections (Title II and Title III) that now total 25 sections related to sanctions and AML. This adds a notable law-enforcement voice to the coalition pushing the bill toward a Senate floor vote.

The CFTC issued an advisory on July 24, 2026 warning listed exchanges that some broad template self-certifications for event contracts have not included required terms and conditions or explanations of the underlying commodity and legal compliance for each contract version. The advisory does not name a specific platform or announce an enforcement case, but signals heightened scrutiny of how prediction market operators file new contract listings. This follows growing regulatory attention to fast-growing onchain and offchain prediction markets.

The EU announced sanctions banning 14 cryptocurrency exchanges based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan, and Belarus for allegedly helping Russia evade sanctions, according to reporting dated July 24-25, 2026. The action is part of ongoing EU efforts to close off crypto-based sanctions evasion channels. Details on specific enforcement mechanisms were not fully specified in available coverage.

On July 24, 2026, FINRA published a notice requesting comment on modernizing its best execution guidance, listed among the regulator's 'What's New' technical notices. The request signals FINRA may update longstanding interpretive guidance on best execution, potentially affecting how order routing quality is assessed across asset classes, including digital assets. Full text detailing whether digital-asset-specific provisions are included was not available in the retrieved notice, but the initiative follows heightened scrutiny of execution quality across brokerage models.

A July 24, 2026 analysis detailed the consequences of MiCA's transitional period ending on July 1, 2026, which forced unlicensed exchanges out of the EU market and removed USDT from regulated venues. Roughly 240 firms made ESMA's interim authorized register by the cutoff, with Binance's application through Greece's securities regulator stalling and the exchange withdrawing on June 24, 2026 and ceasing EU services on July 1, though it has signaled plans to reapply via France. Tether never applied for EMT authorization, meaning a stablecoin with roughly $184 billion in circulation cannot be listed on any MiCA-compliant EU platform.

An analysis published July 24, 2026 details the consequences of the July 1, 2026 expiration of MiCA's national transitional periods: any platform serving EEA customers without a MiCA license is now operating illegally. Roughly 240 firms held ESMA-registered licenses at the cutoff, while Binance withdrew its Greek MiCA application on June 24, 2026 and ceased EU service on July 1. Tether, with roughly $184 billion in stablecoin circulation, never applied for EMT authorization over objections to reserve requirements, meaning it cannot be listed on any MiCA-compliant EU platform.

Senate Majority Leader John Thune said the crypto Clarity Act will not find enough floor time to pass before the Senate's summer break, though he hopes to at least start the floor process beforehand. White House crypto adviser Patrick Witt pushed back, saying the first week of August still has potential, with negotiators eyeing August 7 as the deadline for a realistic chance at 2026 passage. The bill remains stuck over ethics-related disputes tied to presidential crypto conflicts.