Ten news facts: CLARITY Act, OpenAI and Ethiopian mining ban

The CLARITY Act fails to secure the required 60 votes in the US Senate, OpenAI is in talks over a funding round above a $1.2 trillion valuation and Ethiopia cuts 75% of the power supply for Bitcoin miners because of a water shortage for its hydroelectric dams. These are three of the ten most notable news items of the day, as summarised by Cointelegraph.

In brief:

• The CLARITY Act stalls in the Senate; Coinbase CEO Brian Armstrong says crypto will get clarity regardless.
• OpenAI is in early-stage talks with investors about a valuation above $1.2 trillion, ahead of a possible IPO.
• Ethiopia cuts power supply to Bitcoin miners by 75% as a result of El Niño and falling water levels at hydroelectric dams.

CLARITY Act stalls, Coinbase CEO responds

The CLARITY Act has failed to clear the 60-vote threshold needed to steer the bill through the US Senate. The bill was intended to provide clarity on the regulation of crypto in the United States.

Coinbase CEO Brian Armstrong responds with the message that the sector cannot wait for Congress. According to Armstrong, the desired clarity for crypto will come regardless, with or without the bill. In the background, two crypto tax bills are also being considered in the House of Representatives.

X, Elon Musk’s platform, is meanwhile launching the US Cashtag Partner Program. Through that programme, users can trade directly via brokers such as Coinbase, Kraken, Gemini, Interactive Brokers and Moomoo, straight from supported Cashtags on the platform.

Ethiopian miners lose three-quarters of their power

Ethiopia is cutting power supply to Bitcoin miners by 75%. The cause is El Niño, which is causing a sharp fall in water levels at the country’s hydroelectric dams. In recent years, Ethiopia had grown into a popular location for miners because of the relatively cheap hydropower. Bitcoin miners therefore face additional pressure again, especially now that the Bitcoin price stands at $76K, a fall of 2.1% over the past 24 hours.

Two Robinhood engineers have been charged with using confidential company information to trade perpetual futures on Hyperliquid. That is one of the most notable legal cases of the day.

OpenAI, Trump and an expected rate move

OpenAI is holding early talks with investors about a new funding round. That could give the company a valuation above $1.2 trillion, ahead of a possible IPO. By way of comparison: that would instantly make OpenAI one of the most valuable companies in the world.

Furthermore, according to Bloomberg, President Trump trades on the financial markets more than all members of Congress combined, counting from his return to the White House. Nvidia CEO Jensen Huang is expected to join Trump’s state dinner for Chinese President Xi Jinping in Washington later this month.

On the macroeconomic front, 19 of the 22 major Wall Street banks expect a rate increase in September. The majority expects a move of 50 basis points. The European Union will discuss with member states on Thursday how global AI rules can be shaped, Politico reports.