NASAA said the SEC should keep the following principles in mind when it forms its recommendations in order to achieve a "stable evolution of regulation that embraces cryptoassets while preserving the essential features of effective regulation":

• Investor protection must be the central part of any proposed regulation.

• Robust disclosures must be simple enough for novice investors to understand the risks of buying and trading cryptoassets and should be available on a trusted site
administered by a regulator.

• Exemptive frameworks for cryptoassets and businesses are better than jurisdictional exclusions because they can be tailored and adjusted as circumstances change.

• State antifraud and examination authorities must be preserved.

Senator Durbin’s amendment is based off his Crypto ATM Fraud Prevention Act, which aims to crack down on crypto scams by adding layers of protections to crypto ATM transactions and requiring greater transparency from cryptocurrency ATM operators. Senator Durbin will offer his amendment with Senators Jack Reed (D-RI) and Richard Blumenthal (D-CT). 

Specifically, Senator Durbin’s amendment will:

• Require warnings about the risk of fraud: This amendment would require cryptocurrency ATM operators to provide clear warnings to consumers about the risk of fraud, including warnings of common types of scams and that consumers should never send money to someone they have never met.

• Require operators to develop an anti-fraud policy: Cryptocurrency ATM operators would be required to appoint a chief compliance officer and develop a comprehensive anti-fraud policy, which must be submitted to the Financial Crimes Enforcement Network. Operators also would be required to provide live customer support during all operating hours.

• Protect new customers: New customers, defined as a customer within 14 days of their first transaction, would be protected by the following provisions:
  • Transaction limits of $2,000 per day, and $10,000 total over the first 14 days.
  • Full refunds for fraudulent transactions if the customer makes a report within 30 days.
  • Requiring live, verbal confirmation for any transaction greater than $500.

• Require crypto ATM operators to register and disclose ATM locations: Cryptocurrency ATM operators would be required to register with the Treasury Department and to disclose and regularly update the locations of all their ATMs. Operators would also be required to provide a point of contact to relevant regulators and law enforcement agencies.

• Require receipts and information sufficient to trace the transaction: Operators would be required to provide receipts for each transaction, including information sufficient to trace the transaction, such as the time, place, and amount of the transaction, and a transaction hash. Receipts also would have to include contact information for relevant law enforcement and a link to the operator’s refund policy.

SEC Commissioner Hester M. Peirce published a statement regarding the FAQs.

The SEC also published a speech by Commissioner Caroline Crenshaw 'Tokenization: Our Field of Dreams?'.

The OCC published Interpretive Letter 1184 to confirm that national banks and federal savings associations may buy and sell assets held in custody at the customer’s direction and are permitted to outsource to third parties bank-permissible cryptoasset activities, including custody and execution services, subject to appropriate third-party risk management practices. This authority was also addressed in OCC Interpretive Letters 1170 and 1183.

According to the press release, these actions "ensure the Board's expectations remain aligned with evolving risks and further support innovation in the banking system."

The Board is rescinding its 2022 supervisory letter establishing an expectation that state member banks provide advance notification of planned or current cryptoasset activities. As a result, the Board will no longer expect banks to provide notification and will instead monitor banks' cryptoasset activities through the normal supervisory process.

The Board is also rescinding its 2023 supervisory letter regarding the supervisory non-objection process for state member bank engagement in dollar token activities.

The Board, together with the Federal Deposit Insurance Corporation is joining the Office of the Comptroller of the Currency in withdrawing from two 2023 statements jointly issued by the federal bank regulatory agencies regarding banks' cryptoasset activities and exposures. The Board will work with the agencies to consider whether additional guidance to support innovation, including cryptoasset activities, is appropriate.

Attorney General James urged Congress to pass legislation that would require cryptocurrency companies to "make a series of commitments, including registering with a regulatory body and actively identifying and preventing fraud and scams." 

To address the risks associated with some cryptocurrencies, Attorney General James asked Congress to pass legislation that would:

• require issuers of stablecoins to have a presence in the U.S. and be subject to regulation;
• require backing stablecoins with U.S. dollars or treasuries;
• require platforms to only conduct business with anti-money laundering compliant platforms;
• require issuers and intermediaries to register to ensure accountability, transparency, and basic protections to the public;
• protect against conflicts of interest;
• promote price transparency;
• require platforms and intermediaries to actively identify and prevent fraud and scams; and
• disallow digital assets in retirement accounts. 

These offerings and registrations may involve equity or debt securities of issuers whose operations relate to networks, applications, and/or cryptoassets. These offerings and registrations also may relate to cryptoassets offered as part of or subject to an investment contract.

The statement notes that the Division recognizes that Acting SEC Chairman Mark T. Uyeda formed the Crypto Task Force to help the Commission develop a comprehensive and clear regulatory framework for cryptoassets, including addressing applicable registration and disclosure requirements. The Division is issuing this statement to provide its views during the pendency of these deliberations.