The Senate passed a joint resolution of the Congressional Review Act by a vote of 70 to 27, which will overturn the IRS's decision on the reporting rule for decentralized finance brokers. The House also passed the corresponding resolution by a vote of 292 to 132. The next step is for the House's approval to return to the Senate and then be sent to the President for final approval.
The Office of the Comptroller of the Currency (OCC) issued an interpretive letter reaffirming that national banks can provide cryptocurrency custody services, hold "reserves" of stablecoins as a service to bank customers, and use independent node verification networks and stablecoins to conduct and facilitate payment activities. The interpretive letter also rescinded the OCC's previous position requiring banks to obtain prior regulatory approval before engaging in these digital asset activities.
The White House hosted its first Cryptocurrency Summit, which included over 20 industry leaders.
Congress
As summarized in the "tl;dr", the Senate passed a joint resolution of the Congressional Review Act by a vote of 70 to 27, which will overturn the IRS's decision on the reporting rule for decentralized finance brokers, and the House also passed the corresponding resolution by a vote of 292 to 132. The next step is for the House's approval to return to the Senate and then be sent to the President for final approval.
Senate Banking Committee Chairman Tim Scott (R-SC) introduced the Financial Integrity and Regulatory Authority Act, which would eliminate the ability of regulatory agencies to use reputational risk as a component of regulation.
Senators Bill Hagerty (R-TN) and others introduced an updated version of the Stablecoin Transparency, Innovation, and Regulatory Clarity Act (GENIUS Act), which would establish a regulatory framework for payment stablecoins. The Senate Banking Committee voted 18-6 to advance the bill.
Senator Cynthia Lummis (R-WY) introduced the Responsible Financial Innovation Act (BITCOIN Act), which would create a strategic Bitcoin reserve.
House Representative Ro Khanna (D-CA) announced that he will introduce the Modernizing Allowances and Misconduct Enforcement Act (MEME Act), which would prohibit "the President, Vice President, Members of Congress, senior executive branch officials, and their spouses and dependent children from issuing, sponsoring, or supporting securities, futures, commodities, or digital assets."
House Representatives French Hill (R-AR) and others wrote a letter to SEC Acting Chair Mark T. Uyeda, encouraging the SEC to abandon several proposed rules issued by the Biden administration and update the agency's 2019 Framework for "Investment Contract" Analysis of Digital Assets.
House Representatives Tom Emmer (R-MN) and Ritchie Torres (D-NY) launched the Congressional Blockchain Caucus, a bipartisan initiative aimed at advancing crypto-friendly policies in the House.
Department of Justice
The Department of Justice announced joint action with Germany and Finland to disrupt and dismantle the online infrastructure used to operate the Garantex cryptocurrency exchange. Since April 2019, the exchange has processed at least $950 million in cryptocurrency transactions and is alleged to have assisted in money laundering and sanctions violations. The DOJ charged two of the exchange's administrators with conspiracy to commit money laundering, with one also charged with conspiracy to violate sanctions and conspiracy to operate an unlicensed money transmitting business.
A New York man was convicted for participating in a scheme that defrauded investors of over $7 million in funds and cryptocurrency, where he posed as a legitimate cryptocurrency trader.
A cryptocurrency entrepreneur was convicted of wire fraud and money laundering charges for his role in selling a cryptocurrency called AML Bitcoin.
The former girlfriend of a cryptocurrency founder agreed to plead guilty, admitting she failed to report about $1.3 million in income on her 2021 tax returns. Her ex-boyfriend evaded taxes through a $36 million hacking scheme, and she admitted to participating in the conspiracy, leading shell companies and paying a Los Angeles County Sheriff's deputy to target his enemies.
Department of the Treasury
The Treasury Department's Office of Foreign Assets Control sanctioned the Iran-based administrator of the Nemesis darknet market, which is associated with fentanyl sales, as well as 49 virtual currency addresses used by the administrator.
💵 Office of the Comptroller of the Currency
As summarized in the "tl;dr", the Office of the Comptroller of the Currency (OCC) issued an interpretive letter reaffirming that national banks can provide cryptocurrency custody services, hold "reserves" of stablecoins as a service to bank customers, and use independent node verification networks and stablecoins to conduct and facilitate payment activities. The interpretive letter also rescinded the OCC's previous position requiring banks to obtain prior regulatory approval before engaging in these digital asset activities.
📈 Securities and Exchange Commission
A federal judge dismissed the SEC's enforcement action against Richard Heart, ruling that the court lacked jurisdiction over the defendant due to insufficient contacts with the United States. The SEC had alleged that the online entrepreneur raised over $1 billion through unregistered cryptocurrency offerings and defrauded investors of $12.1 million used to purchase luxury goods.
The SEC announced the members of its Crypto Assets and Cyber Unit, which will advise the Commission on crypto-related matters.
The SEC announced that its Crypto Assets and Cyber Unit will host a series of roundtables to discuss key areas of crypto asset regulation.
Blockchain-based asset management firm Superstate announced that it has registered its digital transfer agent company, Superstate Services LLC, with the SEC.
The legal counsel for Cumberland DRW, Kraken, and crypto influencer Ian Balina announced that the SEC has agreed to dismiss their respective cases.
Acting Chair Mark T. Uyeda discussed the SEC's pending proposal to expand the definition of an exchange, stating that he believes "it would be a mistake for the Commission to conflate financial market regulation with heavy-handed attempts to suppress the crypto market." He further stated that he has asked SEC staff to provide options for withdrawing that part of the proposal.
White House
As summarized in the "tl;dr", the White House hosted its first Cryptocurrency Summit, which included over 20 industry leaders.
President Donald Trump signed an executive order to establish a strategic Bitcoin reserve and a U.S. Digital Assets Reserve.
🌍 States
🐻 California
The Department of Financial Protection and Innovation announced that through its crypto fraud tracker and new collaboration with the California Department of Justice, the state has shut down 26 different crypto fraud websites and uncovered $4.6 million in consumer losses.
🐝 Nebraska
Nebraska Governor Jim Pillen signed the Uniform Electronic Transactions Fraud Prevention Act, which aims to help combat fraud and protect cryptocurrency ATM/kiosk users.
🌍 International
🇹🇭 Thailand
The Thailand Securities and Exchange Commission added USDT and USDC to its list of approved cryptocurrencies that can be traded on digital asset exchanges.
🇬🇧 United Kingdom
In the UK's first criminal sentencing for unregistered crypto activity, a British man was sentenced to four years in prison for illegally operating a cryptocurrency ATM network, forgery, using false identity documents, and possessing criminal property.
