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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’.

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

March 2025 U.S. Congress

H.R.2112, which gives the force and effect of law to the Executive Order issued on March 6, 2025 entitled "Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile", was introduced and referred to the House Committee on Financial Services.

See also: Fact Sheet: President Donald J. Trump Establishes the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile

February 2025 U.S. Congress

H.R.1430, which amends the Federal Reserve Act to limit the ability of Federal Reserve banks to issue central bank digital currency, was introduced and referred to the House Committee on Financial Services.

February 2025 Government of the United States / U.S. Congress

On 23 January 2025, President Trump signed an Executive Order on digital assets.

The Executive Order sets out the policy of the Administration to support the digital asset industry, including by:

  • promoting use of public blockchain network;
  • promoting the sovereignty of the United States dollar, including through actions to promote the development of dollar-backed stablecoins worldwide;
  • protecting and promoting fair and open access to banking; and
  • providing regulatory clarity and certainty on technology-neutral regulations.

It also establishes a Presidential Working Group on Digital Asset Markets, which is tasked with submitting a report to the President (within 180 days) recommending regulatory and legislative proposals, including: (i) proposing a regulatory framework for the issuance and operation of digital assets, including stablecoins; and (ii) evaluating the potential creation and maintenance of a national digital asset stockpile and proposing criteria for establishing such a stockpile (e.g. from cryptocurrencies seized by law enforcement).

In addition, the Executive Order prohibits the issuance, circulation or use of central bank digital currencies (CBDCs) and terminates any plans or initiatives to create a CBDC in the United States.

Also of note is that recently both chambers of Congress presented drafts of legislation for regulating stablecoins in the U.S.:

  • On 4 February 2025: the GENIUS Act, presented by Sens. Tim Scott, Bill Hagerty, Cynthia Lummis and Kirsten Gillibrand. A one-page overview of the legislation can be found here.
  • On 6 February 2025:  the STABLE Act, introduced by House Financial Services Committee Chairman French Hill and Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee Chairman Bryan Steil.
January 2025 U.S. Congress

H.R.148, which prohibits Federal agencies from restricting the use of convertible virtual currency by a person to purchase goods or services for the person's own use, and for other purposes, was introduced and referred to the House Committee on Financial Services.

September 2024 U.S. Congress

U.S. Representative John Rose (TN-06), a member of the House Committee on Financial Services, introduced the Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets Act or the “BRIDGE” Digital Assets Act (H.R. 9579), which would establish a Joint Advisory Committee on digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The purpose of the Joint Advisory Committee would be to provide "both the SEC and the CFTC with advice on their respective rules, regulations, and policies related to digital assets."

July 2024 U.S. Congress

S.B. 4830, which strengthen 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, read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

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