CLARITY Act sees major breakthrough. Franklin Templeton partners with Ondo Finance to bring tokenised ETFs to the blockchain. David Sacks steps down as AI and Crypto Czar.
Crypto markets fell to multi-week lows as the ongoing conflict in the Middle East continues to rattle investor confidence, writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro.
With oil prices rising, traders and investors have scaled back their expectations for interest rate cuts this year. Bond yields have been climbing, with the benchmark 10-year Treasury returning to levels last seen in July 2025, putting pressure on risk-asset prices.
Looking ahead, the latest non-farm payrolls and unemployment rate data are due to be released on Friday. However, whether the jobs report comes in weak or strong, it could further fuel the market sell-off.
A strong labor market may suggest that the Fed can remain hawkish and potentially start to consider interest rate hikes. Weak jobs data may increase stagflation concerns and prompt investors to further rotate out of risk assets.
BIGGEST MOVERS
$CHZ was one of the biggest movers this week, up 27%, driven by speculation of increased fan token activity as the FIFA World Cup approaches.
Chiliz is the company responsible for the development of Socios.com; the world’s first blockchain-based sports fan engagement and rewards platform. Built on Chiliz blockchain technology, CHZ is the exclusive on-platform currency.
Chiliz also recently activated a deflationary mechanism where 10% of the revenue from fan token sales will be used to buy back and burn CHZ tokens, which could continue to positively impact the underlying price as the ecosystem grows.
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
CLARITY Act sees major breakthrough
The potential passing of the CLARITY Act saw a major breakthrough last week as an agreement in-principle was reached between the White House and key Senators over yield on stablecoins.
The bill’s new draft language would prohibit passive yield on stablecoin balances, which prevents them from competing with traditional bank accounts, but does allow for rewards to be earned if tied to specific activities, such as payments, transfers and trading.
Speaking on Fox News, Senator Tim Scott who heads the Senate Banking Committee, said that whilst bipartisan support has been reached, agreement with the crypto industry is the next step, but noted that “Everyone is still at the table”.
Looking ahead, the Senate Banking Committee has targeted the second half of April for the markup of the CLARITY Act. Should it pass, it would then need to be combined and reconciled with the Senate Agriculture Committee bill, which passed earlier this year, before a full Senate floor vote.
With midterm elections in the United States happening later this year, and a potential change in the makeup of the House and Senate, the pressure is on to get CLARITY passed as soon as possible.
Franklin Templeton partners with Ondo Finance to bring tokenised ETFs to the blockchain
Franklin Templeton, one of the world’s largest asset managers, announced a partnership with Ondo Finance last week to bring tokenised versions of its exchange-traded funds to the blockchain.
Initially, five tokenised ETFs will be launched providing exposure to US equities, gold, and fixed income. FFOG Franklin Focused Growth ETF, FLQL Franklin U.S. Large Cap Multifactor Index ETF, FGDL Franklin Responsibly Sourced Gold ETF, FLHY: Franklin High Yield Corporate Bond ETF and INCE: Franklin Income-oriented U.S. strategy fund.
These tokenised ETFs will trade 24/7 directly through crypto wallets and be available in Europe, Asia-Pacific, the Middle East and Latin America, with US availability coming at a later date, depending on further regulatory clarity around how third parties can distribute registered funds on-chain.
Following the announcement, $ONDO jumped to a weekly high of $0.29 but has since fallen with the broader decline in cryptoasset prices.
David Sacks steps down as AI and Crypto Czar
David Sacks stepped down from his role as the White House AI and Crypto Czar last week after completing his 130 day term as a special government employee.
During his tenure as AI and Crypto Czar, Sacks was instrumental in the GENIUS Act, which established a regulatory framework for stablecoins in the US, as well as championing the creation of a strategic bitcoin reserve and digital asset stockpile.
Sacks has now transitioned to a new role as co-chair of the President’s Council of Advisors on Science and Technology, PCAST.
