Zero One Strategies

CONGRESS

• Senate Majority Whip Dick Durbin (D-IL) delivered remarks on the Senate floor on his intention to introduce legislation next Congress to establish a federal antifraud baseline for Bitcoin ATMs, saying, “As I start to develop this bill, there are a few things that strike me as absolutely necessary. First, Bitcoin ATMs should have daily transaction limits, particularly for new customers.  As these machines are increasingly used to perpetrate fraud, we should limit potential losses. Second, any transactions initiated by a new customer should be held for some reasonable period before they are processed. This will allow new customers to cancel their transactions—particularly if they learn they were the victim of fraud. Minnesota and Connecticut recently passed legislation requiring Bitcoin ATM operators to wait 72 hours before processing a new customer’s transaction.  This seems like a good place to start. Third, Bitcoin ATM operators should be required to use analytics to screen for fraudulent or otherwise illicit transactions. Many Bitcoin ATM operators already employ this technology, and there is no reason it shouldn’t be used across the board. Fourth, Bitcoin ATMs should be required to provide transaction receipts that include transaction hashes. This will allow law enforcement to more easily trace the transaction, collect evidence of the crime, and, maybe even, recover the stolen funds. These are a few pillars that this legislation will include.” (Press release)

• In the press conference for the release of the House Task Force to Combat the Mexican Drug Cartels End of Congress Report, Rep. Dan Crenshaw (R-TX) said, “We can trace and seize crypto transactions, we can expand our intelligence collection capabilities, we can increase penalties on falsified manifests that conceal fentanyl precursors coming into our country.” (Transcript)

White House AI and Crypto Czar Nominee David Sacks

• Speaker Mike Johnson (R-LA) tweeted, “Great to sit down with some of my colleagues and DavidSacks, Trump’s AI & Crypto Czar. We discussed how Congress and the Administration can work together to jumpstart the AI and crypto industries. With certainty, not overregulation, we can ensure America leads both industries.”

• Senate Banking Ranking Member Tim Scott (R-SC) tweeted, “Crypto has the potential to democratize the financial world. I look forward to working with President Trump, David Sacks, and my colleagues in Congress to develop a regulatory framework for digital assets that encourages innovation here in the United States, not overseas.”

• Sen. Cynthia Lummis (R-WY) tweeted, “2025 will be the year for bitcoin & digital assets. With David Sacks as Crypto Czar, this will be the most pro-digital asset administration ever! I look forward to working closely with DavidSacks to pass comprehensive digital asset legislation & my strategic bitcoin reserve.”

• Sen. Rick Scott (R-FL) tweeted, “Enjoyed meeting with realDonaldTrump’s White House Al & Crypto Czar, DavidSacks. David is a business guy with the knowledge & expertise to create a framework that will protect free speech, end censorship & make America a leader in this space.”

• Rep. Claudia Tenney (R-NY) tweeted, “Honored to have met DavidSacks, the Trump administration’s AI and Crypto Czar.  As a member of HouseScience, I look forward to ensuring America remains a leader in these critical industries.”

More Incoming-House Financial Services Chair French Hill (R-AR) In His Own Words

• Politico published an interview with Incoming-House Financial Services Chair French Hill (R-AR) in which he said,
  • About crypto legislation: “A market structure bill for digital assets and dollar-backed stablecoin under federal law are both priorities. I think what’s nice now, but will be different from the 118th Congress, is … the Trump administration … and the fact that we have Senate participation and engagement led by [incoming Senate Banking Chair Tim] Scott and [incoming Senate Agriculture Chair John] Boozman. Those are big changes, which means that, yes, sure, you could end up with modestly some differences in theme — but I’m not focused on that. I’m focused on the big picture, which is that we laid that groundwork. They are, in my view, are going to be reintroduced in some form or fashion in this Congress. We can obtain a good outcome in this strategically important category of digital assets by working with the Senate and the Trump administration. And it may not, at the end of the day, be identical to the work we accomplished in the House.”
  • Other digital assets actions: “Going through the [Operation] Choke Point documents that we’ve gotten in the 118th Congress and drawing some conclusions from that will be the early priority of our committee. But I can’t tell you where it fits on the schedule, because we want the staff to do the work.”
  • On process: “You’ll have this legislative agenda that you’re going to see a parallel track, that there’s going to be some discrete changes in regulatory policy that complement that legislative work, or vice versa. … I think there’s a way to do some of both. Making a statutory change gives you permanence, gives you great defense from a litigation point of view, and certainty for people in a very complicated, longer time, that makes sense.” (PoliticoPro)

Miscellaneous

• Sen. Bill Hagerty (R-TN) tweeted, “Today, my Republican colleagues and I blocked Banking Democrats’ 11th-hour attempt to install an anti-crypto, climate activist at the SEC. Thank you to incoming Chairman SenatorTimScott BankingGOP for his efforts to block radical nominees from getting confirmed.”

• Hagerty also tweeted, “With President Trump in the White House and Republicans in control of Congress, the future is bright for the digital asset community.”

• Rep. Young Kim (R-CA) tweeted, “Amazing to speak to female leaders in the digital asset industry on how emerging technologies help entrepreneurs of all backgrounds achieve their dream. I’ll continue to fight for a regulatory framework that enables American innovation.”

What I’m Reading This Week

• 2025 DeFi Preview: Policy and Beyond, Rashan Colbert, dYdX