Lorenzo Letter #14: 100+ Crypto Firms Urge Senate Progress
Crypto firms push senate for Clarity Act decision, Tether freezes $344M, Kalshi & Polymarket race for perps integration, and enzoBTC goes live on Monad
Welcome back to the Lorenzo Letter, your weekly update on stablecoins, DeFi, tokenization, crypto legislation, and more.
In This Issue:
- 100+ Crypto Firms Push Senate to Advance Clarity Act
- Tether Freezes $344M in USDT Tied to Illicit Activity
- Kalshi Eyes Perps Expansion as Polymarket Moves First
- Lorenzo Update: enzoBTC Goes Live on Monad
100+ Crypto Firms Push Senate to Advance Clarity Act
More than 100 crypto firms are pushing the Senate Banking Committee to advance digital asset legislation, warning that delays could drive innovation and capital offshore.
In a joint letter organized by the Crypto Council for Innovation and Blockchain Association, signatories including Coinbase, Ripple, Kraken, and Circle argued that enforcement by the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission cannot replace clear law.
The proposed Clarity Act would define digital commodities vs. securities and split oversight between regulators. The group also called for protections for non-custodial developers, tailored disclosure rules, and a unified federal standard.
Treasury Secretary Scott Bessent emphasized the urgency, but no markup has been scheduled, leaving the industry awaiting direction.
Full Story:
Bart Hillerich
Tether Freezes $344M in USDT Tied to Illicit Activity
Tether has frozen $344 million in USDT linked to illicit activity, one of its largest enforcement actions to date, following information shared by U.S. authorities.
The company restricted flagged wallet addresses to prevent fund movement, part of its ongoing cooperation with global law enforcement. Tether says it has supported over 2,300 cases and helped freeze more than $4.4 billion in assets.
CEO Paolo Ardoino reiterated that stablecoins are not a safe haven for illicit use, pointing to blockchain transparency as a key advantage for tracking and intervention.
The move comes amid heightened scrutiny of crypto security. Recent incidents, including the exploit of Kelp DAO, highlight evolving attack vectors, while Tether has also stepped in to support recovery efforts, committing $147 million to Drift Protocol with plans to integrate USDT as its settlement layer.
Full Story:
Bart Hillerich
Kalshi Eyes Perps Expansion as Polymarket Moves First
Kalshi is preparing to launch crypto perpetual futures, setting up direct competition with exchanges like Binance and Coinbase, while intensifying its rivalry with Polymarket.
The move follows signals from the Commodity Futures Trading Commission that regulated perpetual futures could be allowed in the U.S., positioning Kalshi to potentially bring perps onshore using its existing licenses and recent margin approval.
Polymarket moved first, announcing its own perpetual futures product that allows continuous long and short positions on prediction outcomes, extending its core market model into derivatives.
The race highlights a broader convergence across crypto and prediction platforms, as firms expand into overlapping products and compete to build full-service trading stacks.
Full Story:
Bart Hillerich
Lorenzo Update: enzoBTC Goes Live on Monad
enzoBTC is now live on Monad, allowing users to mint and redeem using cbBTC, transfer assets cross-chain, and access the network’s growing DeFi ecosystem with Bitcoin-backed liquidity.
The launch comes as Monad gains traction, with TVL rising from roughly $246 million to over $400 million in 2026, signaling increasing developer activity and user demand despite broader market conditions.
“We’re excited to bring enzoBTC to a network where momentum is strong and real use cases for BTC-backed liquidity are emerging,” said Fan Sang, co-founder & CTO of Lorenzo Protocol. "Despite the bear market, the network's DeFi TVL reached a new ATH alongside a committed user base, rising institutional interest, and increasing developer activity. That combination makes it a natural next chain for enzoBTC integration.”
Full Announcement:
Bart Hillerich
