First 100 Days: Upcoming Regulatory Signals for Digital Assets

Public-Private Collaboration

• Ending “Operation Chokepoint 2.0” focused on digital assets and related innovation
• Congressional efforts to introduce legislation giving regulatory certainty to dollar-backed stablecoin (see discussion below)

White House, Media Reports

Establishing Executive Oversight

Naming of Special Advisor for AI and Crypto (i.e., the “AI and Crypto Czar”) with responsibilities for overseeing regulatory frameworks and collaborating with officials and stakeholders, including the President’s Council of Advisors on Science and Technology (PCAST).

Establishment of the President’s Working Group on Digital Asset Markets to be led by the Special Advisor for AI and Crypto and to include heads of departments and agencies, including Treasury, SEC, and CFTC. The working group is to submit a report by July 22, 2025, recommending regulatory and legislative proposals on digital assets, including stablecoins.

White House here and here

Congressional Activity

Senate Release

Multiple hearings in the House and Senate focused on digital assets including:

• “Navigating the Digital Payments Ecosystem”
• “Exploring Bipartisan Legislative Frameworks”
• “A Golden Age of Digital Assets: Charting a Path Forward”

Proposed legislation introduced at these hearings covers a variety of areas, including stablecoins. Potential for new legislation on stablecoins by August 2025 (based on media reports).

Industry identified concerns include:

• Treatment of foreign issuers vs U.S. issuers
• Federal vs state authority (e.g., licensing, preemption)
• Consumer protections, including in the event of issuer bankruptcy
• Application of prudential requirements (e.g., AML/CFT, capital/liquidity)
• Restrictions on issuers (e.g., affiliate relationships, investments)
• Enforcement

Hearings and Testimony here, here, and here

CSBS Statement

Senate investigation of the impact of “debanking” (i.e., closure of bank accounts where account holders are perceived to pose financial, legal, regulatory, or reputational risk), based on factors such as business purpose (e.g., digital assets, gun manufacturing).

Potential consideration of legislation to remove reputation risk as a component of supervisory ratings and as a measure to determine the safety and soundness of a regulated financial institution (to include FRB, OCC, FDIC, NCUA, and CFPB).

Senate Banking Committee Hearing  

Senate Banking Committee Release

Modification or Withdrawal of Rules and Guidance

Affirmation of the permissibility of crypto asset custody, distributed ledger, and stablecoin activities.

Recission of requirement for supervisory nonobjection and demonstration that adequate controls are in place before engaging in cryptocurrency activities – no prior approval needed

Withdrawal from Joint Statement on Crypto Asset Risks to Banking Organizations, and Joint Statement on Liquidity Risks to Banking Organizations from Crypto-Asset Market Vulnerabilities - and intent to jointly replace the guidance.

OCC Release

FDIC Release

CFTC Announcements here and here

Recission of SEC Staff Accounting Bulletin (SAB) 121 - financial reporting for companies safeguarding digital assets – and replacement with SAB 122

Amendments to the Call Report instructions to reflect the recission of SAB 121.

SEC Accounting Bulletin 122

FDIC Announcement

Approval of Novel Bank Charters/M&A Transactions

Approval of charter application of fintech acquisitions of national banks. 

Note: Anticipation of a less restrictive approach to bank charter applications/M&A deals.

OCC Release

Potential for increased numbers of M&A transactions as the regulatory environment evolves in areas such as decentralized finance and blockchain infrastructure

Potential for expansion of relationships with fintechs and other innovators, including blockchain infrastructure providers, web3 platforms, and compliance solutions, to accelerate digital transformation to emerging technologies

Media Reports

Taking Steps to Establish a Regulatory Framework

Acknowledged need for Congress to introduce new crypto legislation in order to reduce regulatory uncertainty, regulatory overlap, and disputes by assigning jurisdiction over particular types of crypto assets to particular federal regulators.

SEC Remarks

Rekindled collaboration/ coordination between SEC and CFTC staff to establish crypto regulations.

Actions initiated by the SEC include:

• Formation of a new Crypto Task Force dedicated to developing “a comprehensive and clear regulatory framework for crypto assets”. So far, the Crypto Task Force is:
  • Reviewing public comment on a variety of topics including Security, Public Offerings, Custody, Trading, Crypto Lending, and Tokenized Securities.
  • Conducting a series of five public roundtables covering defining security status, tailoring regulation for crypto trading, and considerations for crypto custody, tokenization, and DeFi
  • Aligned with a new Cyber and Emerging Technologies Unit to enforce against misconduct related to innovation (e.g., fraud through AI, ML, blockchain technology, disclosure)
• Dropping investigations and pausing/closing outstanding lawsuits against multiple crypto firms, noting that the dismissal will facilitate ongoing efforts to “reform and renew its regulatory approach to the crypto industry”

Actions initiated by the CFTC include announced public roundtables on evolving trends and innovation in market structure, including digital assets.

Media Reports

SEC Announcements here and here;

SEC RFI

SEC Roundtables here and here

CFTC Announcement

Response to De-Banking Concerns

Elimination of reputation risk from examinations and removal of references to reputation risk from regulations, examination manuals, guidance, and policy documents (e.g., OCC, FDIC, FRB).

Potential for new rulemaking intended to ensure that supervisors do not criticize activities or actions on the basis of reputation risk

OCC Announcement

FDIC Letter to Congress

Powell Testimony