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- The Clarity Act Is Finally Moving Forward
The Clarity Act Is Finally Moving Forward
PLUS: LayerZero Finally Admits Fault in $292M Exploit
Welcome back to The Warmup.
“The crypto natives are completely liquidated, pump Bitcoin”
Here’s what we’re watching:
Market Snapshot
The Clarity Act Is Finally Moving Forward
BTC Trend Continuation Play
LayerZero Finally Admits Fault in $292M Exploit
Calendar
Market: Solana continues showing strength while volatility remains elevated across markets.
The Clarity Act Is Finally Moving Forward
What’s going on:
The Digital Asset Market Clarity Act officially got its markup hearing date: May 14.
That’s the clearest sign yet that major US crypto regulation is advancing.
The White House is reportedly pushing for full passage by July 4.
The biggest roadblock, stablecoin yield, now has a compromise.
Passive yield is banned, but platforms can still offer rewards tied to real activity and participation.
Meanwhile, odds of passage on Polymarket jumped as high as 79% before cooling to 63%.
What it means:
Now the timeline matters.
Congress goes on recess May 21, leaving only a short window to move the bill forward before election season complicates things.
This is the closest the US has ever been to passing major crypto legislation.
If it passes, it could unlock more institutional adoption, clearer rules for builders, and a huge step forward for stablecoins and crypto markets overall.
BTC Trend Continuation Play
What’s going on:
BTC is showing bullish continuation signals after strong 4H and 1H closes.
Price is holding above the 1H EMA200 around $81K, while liquidity continues building above current levels.
Key levels we’re watching:
Support: $80K → key EMA200 support
Resistance: $82.5K → first target/liquidity zone
Breakout target: $83K+ if momentum continues
Breakdown risk: Losing $80K weakens structure
Directional Bias: Cautiously bullish
Momentum still favors upside as long as BTC holds above the EMA200 and keeps printing higher lows.
LayerZero Finally Admits Fault in $292M Exploit
What’s going on:
Three weeks after the $292M rsETH exploit, LayerZero finally admitted it made a major mistake.
The company said it should never have allowed its own verifier network to act as the only verifier for high-value transactions, the exact weakness exploited by Lazarus Group.
That’s a big reversal from its original stance, where it largely blamed Kelp DAO for the setup.
The controversy got worse after analysts found nearly half of active LayerZero apps were using the same risky configuration, exposing billions in value to similar threats.
Now the fallout is spreading.
Kelp DAO already migrated to Chainlink CCIP, and Solv Protocol is moving over $700M in tokenized Bitcoin infrastructure away from LayerZero after its own security review.
What it means:
This exposed how fragile some cross-chain infrastructure still is underneath the surface.
And in crypto, trust disappears fast.
Once major protocols start migrating away, reputational damage can spread even faster than the exploit itself.
 | CRCL: |
 | COIN: |
 | ZEC: |
Key Events this Week
Major token unlocks:
Arbitrum (ARB): ~$14M unlock on May 16 (~2% of supply)
Macroeconomic data calendar:
Mon (May 11):
April Existing Home Sales Data: Tracks sales of pre-owned homes → stronger sales suggest a resilient housing market, while weaker numbers may point to slowing consumer demand and higher-rate pressure.
Tue (May 12):
April CPI Inflation Data: Measures changes in consumer prices across the economy → one of the most important inflation reports for the Fed. Higher CPI can increase chances of higher interest rates.
Wed (May 13):
April PPI Inflation Data: Tracks inflation at the producer level → rising producer costs can eventually pass through to consumers and impact future CPI readings.
OPEC Monthly Report: Key update on global oil supply and demand expectations → can heavily influence oil prices, inflation expectations, and energy stocks.
Thu (May 14):
April Retail Sales Data: Measures consumer spending activity → strong retail sales signal healthy economic demand, while weak spending may hint at economic slowdown.
Fri (May 15):
April Industrial Production Data: Tracks output from factories, mines, and utilities → stronger production suggests economic expansion and industrial strength.
Major Earnings Releases:
Mon (May 11): Hims & Hers, Circle
Can LayerZero recover from this? |
The market may still look uncertain on the surface, but some of Bitcoin’s strongest historical accumulation signals are quietly flashing again.
What makes this cycle different is that crypto is increasingly separating itself from pure speculation and becoming part of the broader institutional portfolio conversation.
Long-term holders, wealth managers, and major firms are no longer asking whether crypto survives, they are figuring out how much exposure they need before adoption accelerates further.
And if liquidity conditions improve while institutional demand keeps slowly building in the background, this next leg higher could catch far more people off guard than expected.
— The Warmup Team
Always do your own research. This newsletter is supplemental material to help educate readers as they make their own decisions. Projects mentioned here are provided to give a potential early-mover advantage.