The Chopping Block: The CLARITY Act, Hyperliquid vs CME, and the Prediction Market Supreme Court Showdown

Unchained

Laura Shin

News, Tech News, Business News

4.6 • 1.3K Ratings

🗓️ 21 May 2026

⏱️ 74 minutes

🔗️ Recording | iTunes | RSS

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Summary

Rebecca from Jito Labs joins Haseeb, Tom, and Tarun for a regulation deep-dive covering the CLARITY Act's stablecoin yield compromise and presidential ethics sticking points, CME and ICE's lobbying war against Hyperliquid's RWA perps, the prediction market legal battle heading to the Supreme Court, and whether the SEC's tokenized securities innovation exemption will actually matter. Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest in crypto. This week, joining us is Rebecca Rettig, Chief Legal Officer at Jito Labs, who's here to help the crew make sense of the absolute regulatory tornado tearing through the industry. First up: the CLARITY Act. It just got out of Senate Banking Committee, but the road to passage is anything but smooth. The stablecoin yield fight with banks ended in a "do stuff yield" compromise, but presidential ethics provisions remain the last polarizing hurdle. Rebecca breaks down what actually changes for token founders if it passes — spoiler: not much immediately, since rulemaking alone could take years. Then: CME and ICE have declared war on Hyperliquid, lobbying the Hill to force CFTC registration on the decentralized perps giant. The crew debates who actually wins US regulated perps, whether Hyperliquid's pre-IPO markets represent a genuine threat to investment banking, and Rebecca introduces "on-chain finance" — a distinction the panel immediately roasts her for. Finally: prediction markets are in a legal bloodbath across state courts with a Supreme Court showdown likely by 2027, and the SEC's tokenized securities innovation exemption has Twitter buzzing but Rebecca skeptical. Let's get into it. Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform. Show highlights 🔹 CLARITY Act Passes Senate Banking – Landmark crypto bill advances with bipartisan support, but presidential ethics provisions remain the final sticking point before a full Senate floor vote. 🔹 Stablecoin Yield Compromise – Banks screamed bloody murder, but the "do stuff yield" deal means transaction-based rewards are in and bank deposit lookalikes are out. 🔹 CME & ICE vs Hyperliquid – Traditional exchanges lobby Congress to force CFTC registration, KYC/AML, and trade surveillance on the decentralized perps giant. 🔹 Hyperliquid Prices Cerebras Better Than Bankers – Pre-IPO market nails the opening price while investment banks undershoot by over 100%, raising questions about the future of book building. 🔹 Rebecca Rettig Returns – Jito Labs CLO breaks down what CLARITY actually means for token founders (spoiler: not much changes immediately — rulemaking takes years). 🔹 Prediction Markets Head to SCOTUS – Legal bloodbath across state courts likely culminates in a Supreme Court showdown by 2027 over CFTC vs state gaming jurisdiction. 🔹 The Super Bowl Coin Toss Traded at 58/42 – Tarun surfaces the most absurd prediction market of the year, and the CFTC chair basically says it shouldn't exist. 🔹 Who Wins US Regulated Perps? – Haseeb bets on Coinbase and Robinhood, Tarun argues there's an opening for a dark horse, and Rebecca flags HIP 4's unified margin as a game-changer. 🔹 SEC Innovation Exemption Buzz – Twitter is hyped about tokenized securities guidance, but Rebecca is skeptical it drops before CLARITY is resolved. 🔹 OnFi Is Not Going to Happen – Rebecca tries to coin "on-chain finance" as distinct from DeFi. The panel roasts her. Mean Girls memes are inevitable. Hosts ⭐️Haseeb Qureshi, Managing Partner at Dragonfly ⭐️Tarun Chitra, Managing Partner at Robot Ventures ⭐️Tom Schmidt, General Partner at Dragonfly Guest⭐️ Rebecca Rettig, Jurisprudential Genius at Jito Labs Timestamps 00:00 Intro 02:10 The CLARITY Act: Banks vs Crypto 05:21 The "Do Stuff Yield" Compromise 07:18 The Compromise: Transaction-Based Rewards 10:22 Presidential Ethics: The Last Sticking Point 12:26 What Actually Changes If CLARITY Passes? 16:01 Token Founders: What Do You Have to Do? 18:41 Developer Protection & DeFi Activity 20:15 CME & ICE Lobbying Against Hyperliquid 26:05 On-Chain Finance vs DeFi 29:57 Who Wins US Regulated Perps? 34:39 ETF Options vs Crypto Perps 40:24 What Hyperliquid Means for Investment Banking 44:50 Retail IPO Participation & Dynamic Share Counts 49:25 Prediction Markets: Kalshi & Polymarket vs the States 51:40 Supreme Court Showdown: CFTC vs State Gaming Laws 58:30 Economic Impact Test 01:01:47 Tokenized Securities & the SEC Innovation Exemption 01:06:41 Do Issuers Actually Care About Tokenization? Disclosures Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I think we're robber. We're here.
0:02.1	Yeah.
0:02.7	This is actually ironically the one time that there's something useful to say. I know. That's true. That's true. Well. This topic, sorry, sorry. I'm trying to. Wow. Are we not rolling? We should tell us it to roll to them. I'm trying to bond. You are rolling? Great. That's the intro. That's the intro. Not a dividend. It's a tale of two Kwan. Now, your losses are on someone else's balance.
0:23.8	Generally speaking, aircrafts are Great, that's the intro. That's the intro. Not a dividend. It's a tale of two clon.
0:21.0	Now, your losses are on someone else's balance. Generally speaking, air drops are kind of pointless anyways.
0:26.3	Unnamed trading firms who are very involved.
0:29.3	I like that eight is the ultimate puns.
0:31.5	D5 protocols are the antidote to this problem.
0:35.3	Hello everybody. Welcome to the chopping block. Every couple weeks the four of us get together and give the industry insider perspective
0:40.3	on the cryptot topics of the day.
0:41.3	So quick intro, this first we got Tom, the Defy Maven and Master of Memes. Hello, everyone. And then we got Tarun, the Giga Brain and Grand Puba at Gauntlet. Yo. Joining us today, once again, we've got special guest, Rebecca,
0:53.1	Jurisprudential Genius at Gito Labs.
0:55.3	Oh, that's a good one.
0:56.4	Hey, everybody.
0:56.9	Thanks for having me.
0:57.7	Thanks for being here. And I'm a C of the Head Hype Man at Dragonfly. We're early-stage investors in crypto, but I want to caveat that nothing we say here is investment advice, legal advice, or even life advice. Please see chopping blocks at XYZ from our disclosures. So we've been out of pocket for a couple weeks.
1:11.8	We decided that crypto was too depressing,
1:13.6	and so we wanted to escape through.
1:15.4	That's not true.
1:16.4	That's not true.
1:17.4	We were just very busy, and it's hard to coordinate schedules.
1:19.6	But we are now, the whole industry is busy
	...

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