The Senate Banking Committee advanced the bipartisan CLARITY Act, marking progress toward a federal framework for digital asset markets and agency oversight. Supporters say the vote signals momentum after years of uncertainty, while critics note unresolved issues around ethics, enforcement authority and investor protections. The bill now faces further debate as lawmakers weigh amendments ahead of a full Senate vote.

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US Treasury yields reached their highest levels in a year as persistent high oil prices fueled inflation concerns and raised expectations for prolonged elevated interest rates. The yield on the two-year Treasury note rose to 4.05% while the 10-year yield neared 4.52%. The surge in oil prices, driven by the prolonged closure of the Strait of Hormuz, has led to a global bond market sell-off, with Japanese and Australian yields also climbing.

Bond investors are increasingly pricing in the view that the Federal Reserve is behind the curve on inflation, with yields on 2-year Treasurys rising above the federal funds rate, a signal markets may expect tighter policy ahead, according to analaysts. Inflation data showing CPI at 3.8% and wholesale prices up 6% has reinforced expectations that the Fed, now under new leadership with Chair Kevin Warsh, may need to maintain or even raise rates rather than ease policy. Futures markets are now pricing no rate cuts this year, with rising odds of a potential hike as inflation pressures persist.

Financial firms are increasingly integrating operational resilience into their core models, driven by the shift to T+1 settlement and the rise of AI, speakers said at the SIFMA Operations Conference. Jefferies Managing Director Mike Fiscella and DTCC Managing Director Dan Thieke highlighted the need for cross-functional resilience planning to address scenarios including cyberthreats and market disruptions. Todd Klessman of SIFMA emphasized the importance of simplifying processes and expanding automation to quickly restore critical functions.

Kevin Warsh, recently confirmed as the next Federal Reserve chair, has a long history of advocating for central bank independence. Warsh, who joined the Fed in 2006, has expressed concerns about the central bank becoming influenced by politicians. Warsh has criticized the Fed's actions in the past, particularly during the financial crisis, and has recently emphasized the need for the Fed and the government to be more aligned.

Federal Reserve Governor Stephen Miran has resigned, effective when incoming Chair Kevin Warsh assumes office. Miran, who has been a dissenting voice on the Federal Open Market Committee, expressed confidence in Warsh's leadership and highlighted the need for a forward-looking approach to monetary policy, citing the effects of population growth and deregulation.

SEC Chairman Paul Atkins outlined a regulatory agenda at the 2026 FINRA Annual Conference, emphasizing the "minimum effective dose of regulation." Atkins discussed the need for significant restructuring of the Consolidated Audit Trail, a broad review of market structure, and a shift in enforcement focus from minor violations to fraud and investor harm. Atkins also highlighted the importance of IPOs and the need to simplify disclosure frameworks.