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Federal Legislative Proposals

Lummis-Gillibrand Bill 

Lummis-Gillibrand Bill, proposed in June 2022, is officially called the Bipartisan Responsible Financial Innovation Act, it is the first comprehensive regulatory proposition for the digital assets in the United States. It aims to provide regulatory clarity for agencies charged with supervising digital assets markets and a comprehensive framework for digital assets – integrating them into existing tax and banking laws. The legislations intends to spur innovation, develop clear standards, define appropriate jurisdictional boundaries and protect consumers. It defines which assets are commodities and securities by looking at the purpose and use of the asset. The bill also gives the CFTC authority where digital assets are more similar to commodities rather than securities. It also introduces rules on stablecoins – among others, guaranteeing that a stablecoin holder will always be able to redeem the equivalent stablecoin value in dollars, or introducing a framework for banks and credit unions to issue payment stablecoins. Other aspects of the Bill include disclosure requirements on digital asset service providers, a study on digital asset energy consumption, a study on the development of a self-regulatory organization and provides a regulatory sandbox for state and federal regulators to collaborate on innovative financial technologies, as well as creates a structure for the taxation of digital assets. Introduction of the bill would bring about necessary clarity and certainty in the area.

 

McHenry Bill

In November 2021, Patrick McHenry together with Congressman Tim Ryan and a group of lawmakers, introduced the Keep Innovation in America Act. The legislation aims to fix the digital asset reporting provision in existing law and provide legal clarity in order to encourage technological innovators and entrepreneurs. The changes will include an alteration to the section 80603 of the Infrastructure Investment and Jobs Act, which due to a limited understanding of the digital assets ecosystem, stifles innovation and raises concerns of privacy. The new proposal creates an alternative definition of ‘broker’ – capturing only those entities which should qualify under it and promises that a study be conducted on the expansion of the definition of ‘cash’ onto ‘digital assets’.

July 2025 Commodity Futures Trading Commission (CFTC)

Commodity Futures Trading Commission Acting Chairman Caroline D. Pham issued a statement following the  passage of digital asset legislation by the House of Representatives.

July 2025 U.S. Securities and Exchange Commission (SEC)

SEC Chairman Paul S. Atkins issued a statement on the GENIUS Act after it was signed by President Trump.

Chairman Atkins said the GENIUS Act "provides necessary guidance for a crucial element of the emerging cryptoasset ecosystem. Clear payment stablecoin regulation allows companies and individuals to transact in ways that boost efficiency and lower costs. Payment stablecoins will play a significant role in the securities industry moving forward, which is why I have asked SEC staff to consider whether guidance, rulemaking, or other steps may be helpful to accommodate SEC registrants utilizing payment stablecoins, including for settlement and margining."

July 2025 U.S. Congress

H.R.4438, which prohibits the Board of Governors of the Federal Reserve and the Secretary of the Treasury from issuing a central bank digital currency, and for other purposes, was introduced and referred to the House Committee on Financial Services.

June 2025 U.S. Congress

On 17 June 2025, the U.S. Senate passed a cryptocurrency bill that would establish the first regulatory framework for issuers of stablecoins. 

The vote on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act was 68-30, with 18 Democrats joining most Republicans in favour of the bill. The GENIUS Act will now go to the House of Representatives.

May 2025 U.S. Congress

U.S. Senate Democratic Whip Dick Durbin (D-IL) called on his colleagues to support his amendment to the GENIUS Act (a bill meant to establish federal rules for stablecoins), which would help prevent scammers from stealing Americans’ savings through cryptocurrency schemes.

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.
April 2025 U.S. Congress

S.B. 1273, which strengthens the authority of the United States Secret Service to investigate various crimes related to digital asset transactions and to counter transnational cyber criminal activity, including unlicensed money transmitting businesses, structured transactions, and fraud against financial institutions, and for other purposes, was introduced and referred to the Committee on Banking, Housing, and Urban Affairs.

March 2025 U.S. Congress

Congressman Tom Emmer (R-Minn) reintroduced his bipartisan Securities Clarity Act with Congressman Darren Soto (D-Fla). The legislation aims to bring "regulatory clarity to the digital assets ecosystem."

The Securities Clarity Act creates a distinction between "an asset and the securities contract it may or may not be a part of and will enable digital asset projects to reach their full potential in a regulatory-compliant way."

The Act specifies that "any asset sold as the object of an investment contract, now defined as an 'investment contract asset' is distinct from the securities offering it was originally a part of. This definition is technology-neutral and applies to all assets sold or offered that would only be considered a 'security' because of their inclusion in an investment contract."

Congressman Emmer said: "Until we have a clear definition of what is a commodity and what is a security, American innovation will continue to suffer. Entrepreneurs need clarity to calculate risk accurately, create new investment opportunities and grow our economy. Our legislation will help provide these answers and allow American investors to fully participate in digital asset technology without sacrificing consumer protections." 

Congressman Soto said: "This bill will add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States—an important step in maximizing the potential of virtual currencies for the U.S. economy while protecting customers and the financial well-being of investors." 

The full text of the bill is available here.

March 2025 U.S. Congress

On 26 March, the US House of Representatives introduced an updated version of the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which revises the 5 February draft. 

The full text of the bill is available here

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