This week in digital asset federal policy, with the Republicans’ massive tax and spending cut package signed into law, Congress returns to priorities including stablecoins and market structure. The Senate Banking Committee will hold its first full committee hearing on market structure this week, while the House Ways and Means Committee will prepare to kick off Congress’s first consideration of digital asset tax policy. 

The issue of digital asset tax clarity was teased last week during Senate debate of the reconciliation bill, when Sen. Cynthia Lummis (R-WY) attempted to negotiate for inclusion of a crypto tax title. Ultimately, no digital asset provisions made it into the final bill, including an amendment that would prohibit certain government officials from owning and promoting digital assets. Lummis subsequently introduced her tax bill as standalone legislation.

Looking ahead, House Leadership announced that the week of July 14 will be “Crypto Week,” during which they expect to vote on the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate-passed GENIUS Act.

Read more below

Congress

Hearings

• Last week
  • There were no hearings scheduled for the July 4 recess.
• This week
  • On July 9, the Senate Banking, Housing and Urban Affairs Committee will hold a hearing on From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.
  • On July 9, the House Ways and Means Oversight Subcommittee has announced a hearing on Making America the Crypto Capital of the World: Ensuring Digital Asset Policy Built for the 21st Century, although House cancellation of votes could prompt the committee to reschedule.
  • On July 8-11, the Senate Armed Services Committee will mark up the FY2026 National Defense Authorization Act (NDAA).

Legislation

• Sen. Cynthia Lummis (R-WY) introduced a bill to address major digital asset taxation issues, including setting a $300 de minimis rule, ending the double taxation of digital asset miners and stakers, establishing parity with other financial assets such as digital asset lending, wash sales, mark-to-market tax treatment, and providing that charitable contributions do not require an appraisal. (Text)(Press release)

• Sens. Jeff Merkley (D-OR), Elizabeth Warren (D-MA), and Jack Reed (D-RI) introduced an amendment to the One Big Beautiful Bill Act to insert a Preventing Cryptocurrency Corruption section that would prevent covered special Government employee, or their spouse or child from directly or indirectly owning, controlling, or promoting any covered cryptocurrency, during their term of service and, for those associated with the Executive Office of the President, for one year following their last day of service. (SA 2446)

Events

• The House Committee on Financial Services Chair French Hill (R-AR), House Committee on Agriculture Chairman GT Thompson (R-PA), and House Leadership announced that the week of July 14th will be “Crypto Week.” The House plans to bring for a vote the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate-passed GENIUS Act. (Press release)

Trump Administration

Securities and Exchange Commission (SEC)

• The SEC Division of Corporation Finance published disclosure rules for offerings and registrations of crypto asset ETPs. The statement reflects observations regarding disclosure practices in reviews of crypto asset ETP filings, addresses views about certain specific questions that market participants have presented to the staff, and addresses views about certain disclosure requirements set forth in Regulation S-K and Regulation S-X as they apply to Securities Act registration forms such as Form S-1. (Press release) 

Internal Revenue Service (IRS)

• The Treasury Inspector General for Tax Administration (TIGTA) published a report on Improvements Are Needed to Accurately Track and Safeguard Seized Digital Assets, finding the IRS did not consistently follow established guidelines when seizing and safeguarding digital assets. TIGTA recommended the IRS ensure personnel are familiar with and adhere to seizure memorandum requirements; establish an inventory system that can manage seized digital assets to include accurately tracking the quantity of digital assets and ensure the consistent treatment of all seized digital assets and update internal guidelines to include time frame requirements for preparing the seizure memorandum and updating records in its inventory tracking system. (Report)(Press release)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• White House AI & Crypto Czar David Sacks tweeted, “Congratulations to President Trump, the House & Senate leadership, and White House staff for passing One Big Beautiful Bill. Historic victories on border security, tax cuts, welfare reform, deregulation. Next up: Crypto Week in the House (July 14). GENIUS Act (stablecoins) is heading to the President’s desk. CLARITY Act (market structure) is heading to the Senate. Amazing progress in 6 months, with more victories to come!”

• Executive Director of the President’s Council of Advisers for Digital Assets Bo Hines tweeted, “Congratulations to President Trump and the House for passing the historic Big Beautiful Bill — delivering tax cuts, securing the border, ending the tax on tips, and making the American economy stronger than ever. Next up: Crypto Week in the House (week of the 14th). GENIUS is heading to the President’s desk. The Clarity Act — a phenomenally crafted market structure bill — is heading to the Senate. Clarity to the President’s desk next. We will not slow down. We will keep winning!”

Securities and Exchange Commission (SEC)

• The SEC tweeted, “Part 2: SEC Chairman Paul Atkins joined SquawkCNBC this morning to discuss his top priorities, including clear rules of the road for the crypto industry.”

• Commissioner Hester Peirce tweeted, “Wondering how to raise a crypto issue at the SEC? Here’s a list of points of contact: https://www.sec.gov/about/crypto-task-force/crypto-points-contact-secgov.”

CONGRESS

• Sen. Cynthia Lummis (R-WY) said about her digital asset tax bill, “In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users. This groundbreaking legislation is fully paid-for, cuts through the bureaucratic red tape and establishes common-sense rules that reflect how digital technologies function in the real world. We cannot allow our archaic tax policies to stifle American innovation, and my legislation ensures Americans can participate in the digital economy without inadvertent tax violations.” (Press release)

• Lummis also tweeted, “For years, miners and stakers have been taxed TWICE. Once when they receive block rewards, and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower.”

• Lummis also tweeted, “The tax code shouldn’t punish Americans for using new technology. My bill fixes the broken rules around bitcoin and digital assets.”

• Lummis also tweeted, “I appreciate my colleagues’ concerns about ethics, but SenWarren and SenJeffMerkley’s amendment would seriously harm American innovation and competitiveness. If we are serious about ethics, let’s ensure digital assets receive the same treatment as other financial assets.”

• Lummis also tweeted, “America leads in financial innovation, and thanks to President Trump, we are keeping it that way! I am working on an OBBB amendment to ensure Americans can use digital assets without fear of tax violations. More to come soon!”

• House Financial Services Chair French Hill (R-AR) tweeted, “In two weeks, we’ll bring the CLARITY Act and GENIUS Act to the House Floor, which give rules of the road for digital assets and dollar-backed payment stablecoins.”

• On signing on to the Ban Congressional Stock Trading Act, the Curbing Officials’ Income and Nondisclosure (COIN) Act, and the End Crypto Corruption Act, Sen. Ruben Gallego (D-AZ) said, “As elected officials, the American people deserve to know that every decision we make is in the best interest of the country – not the best interest of our own bank accounts. Whether it’s Members of Congress trading stocks on inside information or the Trump family profiting off so-called Meme Coins, it’s clear that more must be done to prevent corruption. I’m proud to back these bills to do so.” (Press release)

• Rep. Jake Auchincloss tweeted, “The Secretary of Commerce is too conflicted on Tether & crypto to be entrusted, as a recent bill proposes, to ‘pursue U.S. leadership of blockchain technology’. He will pursue personal profit, not the public interest.”

• Sen. Adam Schiff (D-CA) tweeted, “It’s midnight in Washington, and in case you’re catching up… Tonight Republicans have blocked amendments that would: – Protect food assistance for veterans and families with children – Stop tax cuts for multi-billionaires – Save 20 million people from losing healthcare – Prevent crypto corruption by the President – Stop the defunding of Planned Parenthood – Ensure veterans aren’t fired en masse from the federal government – Preserve Medicaid for those getting substance use disorder treatment – Protect small businesses from Trump’s trade war.”

• Sen. Jeff Merkley (D-OR) tweeted, “Republicans BLOCKED my amendment to end crypto corruption. They’re more interested in protecting the Trump family crypto scam than doing right by the American people.”

• Sen. Chris Van Hollen (D-MD) tweeted, “Senate Rs blocked SenJeffMerkley’s amendment to prevent officials from selling access and enriching themselves with crypto schemes. They’re very busy cutting health care to pay for billionaire tax cuts, but still found time to protect the Trump family’s corruption. Outrageous.”

• Sen. Dick Durbin (D-IL) tweeted, “Republicans voted against protecting American consumers from big corporations and crypto scams. Once again, Billionaires win, families lose.”

• Sen. Elizabeth Warren (D-MA) tweeted, “USD1—a stablecoin linked to President Trump and his family—is now the second most traded in the world. Next week, the House is voting on a bill that would let Trump’s crypto cash machine keep growing with no guardrails. Congress can rein in this corruption—or greenlight it.”

About Zero One Strategies

Zero One Strategies is a boutique government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.

The practice focuses on key areas such as artificial intelligence, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.

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