Patrick McHenry Sees a Lame-Duck Window for CLARITY

— UK's FCA opened its crypto firm authorization process this week, marking a regulatory advance while the U.S. Senate stalled the CLARITY Act amid election-year politics.

— The SEC published an FAQ on crypto asset classification and federal securities law, notably revising its guidance on token buybacks to clarify that a "central party" restriction applies.

— Robinhood launched AI agents that trade autonomously for retail customers without per-trade approval, raising questions about liability allocation when automated systems execute trades.

— Former House Financial Services Committee Chairman Patrick McHenry argued the CLARITY Act could still pass in a post-election lame duck session and discussed how AI should be treated as core financial infrastructure.

— Sports prediction markets face Supreme Court review; McHenry distinguished between trivial bets and economically significant contracts, suggesting the CFTC likely has authority under current law.

— Outgoing SEC Commissioner Hester Peirce was named Person of the Week for her principled advocacy for investor freedom and her lasting impact on the agency, leaving the SEC with a critically depleted commissioner roster.

— Comment on the SEC's regulation crypto assets proposal by October 20th if you want to shape durable rules; treat staff FAQs as guidance maps, not legal shields, since they carry no binding force.

— Monitor how liability allocation evolves between AI trading platforms—Robinhood's model puts trade risk on users, while Coinbase registered its agent as an investment advisor—as this determines your exposure.

— Expect legislative momentum on crypto in the post-election lame duck if political conditions align; narrow bills are unlikely before then, making comprehensive framework passage more probable than incremental reforms.