Capitol Hill Preps for Digital Assets Vote While a16z Closes Record $2.2 Billion Fund

Builders and industry leaders aren't backing down, even with Bitcoin sitting roughly 35% off its all-time high. The Crypto Market Structure Bill in the U.S. is now teed up for a legislative vote, while the VC fund a16z just announced a fresh $2.2 billion crypto fund for builders in the digital asset industry.

TL;DR

• The Crypto Market Structure Bill is close to being ready for lawmakers to vote on and approve in the coming months, according to industry leaders. 

• A16z raised $2.2 billion for its crypto fund and is looking to deploy that capital into builders and digital-asset-native companies. 

The Crypto Market Structure Bill Is Edging Closer to the Finish Line 👀

I’ve written extensively about digital asset regulation in the past, including the GENIUS Act, various regulatory efforts, and a potential U.S. strategic Bitcoin reserve. 

One of the biggest remaining regulatory priorities is the Crypto Market Structure Bill, also known as the CLARITY Act.  

It’s a proposed US legislation designed to create a federal regulatory framework for cryptocurrencies. It would clarify oversight between the SEC and CFTC while addressing certain stablecoin-related rules.

Earlier in the year, there was a dispute between the banking and crypto industries over stablecoin yields and whether such yields would harm the banking system’s competitiveness. 

That’s why the vote on the bill was pushed back, but thanks to efforts by the crypto industry on Capitol Hill, we now have an update. 

Faryar Shirzad, Head of Policy at Coinbase, was one of the best accounts to follow the story's developments. 

According to Faryar Shirzad, the final rewards text and the bill's changes are now public, and he was happy to report that both sides have found common ground. 

But he wasn’t the only one to report this. 

Bloomberg was also following up with this article, in which they explained that Coinbase was working hard behind the scenes, taking responsibility for representing the industry as a whole. 

That common ground between the crypto industry and the banks was to scratch the possibility for digital asset providers to offer yield on stablecoins. 

The text said: Prohibiting interest and yield on payment stablecoins states that no crypto firm may pay 'any form of interest or yield' to customers solely for holding stablecoins, akin to a bank deposit or any similar interest-bearing product.

Shirzad was eager to point out that it was a sacrifice they were willing to make to get the bill across the finish line and establish clear rules from A to Z for the entire industry. 

The next step is to mark up the bill so that Capitol Hill can vote on it and eventually turn it into law. 

According to Coinbase, and especially its CEO Brian Armstrong, this could become reality in 2026, and he’s eager to push forward. 

The clarity (no pun intended) behind this law would likely give the crypto industry a boost as a whole and continue the convergence of crypto markets with the financial markets.

We may only need to wait a few months to see whether this becomes a reality.

A16z Raised $2.2 Billion for Their Crypto Fund, the Biggest Fundraising to Date 🚀

There is a saying in the Bitcoin community: Bear markets are for builders. 

It seems like a16z, one of the most prominent VCs in the crypto industry and beyond, is taking this to heart as well. 

A16z was among the first venture capital firms to recognize the vast potential of digital assets and invested early in companies such as Coinbase, Lightspark, and OpenSea. 

Earlier this week, they published a press release stating that the a16z crypto team has raised a new $2.2 billion fund, Fund 5.

In the press release, the team stated that although crypto market sentiment is low, there is a lot happening behind the scenes. 

From the regulatory clarity we’re getting, to the new emergence of stablecoins, prediction markets, and meaningful growth in perpetual futures for price discovery. 

They are also seeing a convergence between the crypto industry and AI, where more agentic payment workflows and intelligent financial systems are being built. 

Which is what the new fund aims to support as well. With Fund 5, a16z wants to support builders and companies who are trying to integrate digital assets and the infrastructure into the existing world. 

Essentially, that’s also what we’re doing at Samara Asset Group with our venture and fund investments.

It may not be flashy, but the goal is to further strengthen the industry while providing valuable guidance for companies that want to make crypto feel more intuitive.

In large parts thanks to the spot Bitcoin ETFs, the entire digital assets community is now maturing, and it’s time to build the next wave of infrastructure and solutions. 

Elsewhere in Bitcoin 📖

A quick look at what else has been happening in Bitcoin: 

• Spot Bitcoin ETFs record five straight net-inflow weeks 

• Bitcoin on-chain data indicates a lot of whale movement

• Money devaluation, aka inflation, is worse than you think

• Bitcoin is outperforming gold by 36% since the Iran conflict started

• JPMorgan is investigating whether they’re accepting Bitcoin as collateral

Your fellow stacker in sats, 

Patrick Lowry

PS: If you want to see how the value of goods and services changes when priced in Bitcoin, check out the Samara Bitcoin CPI. It might give you a new perspective on holding Bitcoin on your company’s balance sheet or just as an individual.

Disclaimer: The opinions expressed in this newsletter are solely those of the author and do not necessarily represent the views of any associated company. This newsletter is for educational and informational purposes only and should not be construed as investment, financial, or any other professional advice. Nothing here is a solicitation, offer, or recommendation to buy or sell any asset or to use any service. Investing in cryptocurrencies is highly speculative and carries a significant risk of substantial financial loss, so you must conduct your own thorough research and consult with independent professional advisors before making any decisions.