The House Financial Services and Agriculture Committees held respective hearings on the CLARITY Act to establish digital assets regulatory market structure. The committees are scheduled to mark up the bill this week.  

The Senate could begin debate this week on the GENIUS Act to establish a regulatory framework for stablecoins, depending on leadership agreement on how to approach consideration of the 80+ amendments that have been filed.

Sen. Cynthia Lummis (R-WY) is encouraging Senate leadership and Senate Finance Committee Republicans to include digital assets tax clarification provisions to the Senate’s tax reconciliation bill.

The SEC issued a statement clarifying certain staking activities are not securities. FSOC received a briefing on digital assets actions from the SEC, CFTC, and the White House.

Read more below

Congress

Hearings

• Last week
  • On June 4, the House Financial Services Committee held a hearing on American Innovation and the Future of Digital Assets: From Blueprint to a Functional Framework.
  • On June 4, SEC Chair Paul Atkins testified before the Senate Appropriations Subcommittee on Financial Services and General Government.
  • On June 5, the House Financial Services Financial Institutions Subcommittee held a hearing on Framework for the Future: Reviewing Data Privacy in Today’s Financial System.
  • On June 6, House Financial Services Democrats held a Minority Day on the implications of Trump’s crypto crimes and the consequences of the market structure bill, which may be marked up by next week.
• This week
  • On June 10, the House Financial Services Committee will hold a markup on various bills, including the CLARITY Act.
  • On June 10, the House Agriculture Committee will hold a markup of the Digital Asset Market Clarity Act of 2025.
  • On June 10, the Senate Agriculture, Nutrition and Forestry Committee will hold a hearing on the nomination of Brian Quintenz to be a commissioner of the Commodity Futures Trading Commission.
• Upcoming
  • On June 26, the House Financial Services Oversight and Investigations Subcommittee will hold a hearing on From Watchdog to Attack Dog: Examining the CFPB’s (Consumer Financial Protection Bureau) Chopra-era Assault on Disfavored Industries.

Legislation

• House Agriculture Chair G.T. Thompson (R-PA), House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development Chair Dusty Johnson (R-SD), House Financial Services Chair French Hill (R-AR), House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chairman Bryan Steil (R-WI), and House Majority Whip Tom Emmer (R-MN) introduced the Digital Asset Market Clarity (CLARITY) Act to establish a regulatory framework for digital assets in the United States. Agriculture Ranking Member Angie Craig (D-MN), Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development Don Davis (D-NC), and Reps. Ritchie Torres (D-NY) and Warren Davison (R-OH) are original cosponsors. (Press release)(Text)(Section-by-section)(One-pager) 

• Rep. Frank Lucas (R-OK) introduced a bill to codify the Office of the Strategic Hub for Innovation and Finance at the SEC and LabCFTC at the CFTC. (Text)

• Sens. Maggie Hassan (D-NH) and John Cornyn (R-TX) reintroduced the Dark Web Interdiction Act to strengthen penalties on drug dealers and target international fentanyl trafficking through the dark web. The bill includes a provision to direct the Department of Justice, Department of Homeland Security, and Treasury Department to issue a report to Congress within one year detailing the use of cryptocurrency in the distribution of opioids on the dark web, as well as provide recommendations for how Congress can address the use of virtual currency for opioid trafficking on the dark web. (Press release)

Correspondence

• House Financial Services Ranking Member Maxine Waters (D-CA) led committee Democrats in a letter notifying Chair French Hill (R-AR) of their intent to call additional witnesses in a “Minority Day Hearing” to continue the June 4 committee hearing on American Innovation and the Future of Digital Assets: From Blueprint to a Functional Framework. (Letter)  

• Waters also sent a letter to Securities and Exchange Commission Chairman Paul Atkins requesting a full technical and impact analysis of the CLARITY Act. (Letter)

• Sen. Elizabeth Warren (D-MA) sent a letter to Treasury Secretary Scott Bessent and National Security Advisor Marco Rubio requesting information from the Trump Administration regarding reporting that X may be enabling sanctioned terrorists to use the platform for financial gain, including through crypto payments. (Letter)(Press release)

Trump Administration

Securities and Exchange Commission (SEC)

• The Division of Corporation Finance clarified that certain proof-of-stake blockchain protocol staking activities are not securities transactions within the scope of the federal securities laws. (Statement)

• On June 9, the SEC Crypto Task Force will hold a roundtable on DeFi and the American Spirit. (Press release)

Federal Reserve

• The Senate confirmed Michelle “Miki” Bowman as Vice Chair for Supervision by a 48-46 vote.

Treasury Department

• The Financial Stability Oversight Council received a briefing by Treasury staff on the work of the President’s Working Group on Digital Asset Markets and the SEC Chair and CFTC Acting Chair provided updates on their agencies’ recent actions and “discussed ongoing efforts to promote U.S. leadership in digital assets and financial technology and to provide greater regulatory clarity and certainty to digital asset markets.” (Readout) 

Noteworthy Quotes and Events

ADMINISTRATION

Federal Reserve

• Vice Chair for Supervision Michelle Bowman delivered remarks on Taking a Fresh Look at Supervision and Regulation, saying, “Fundamentally, guidance should clarify expectations, and provide answers to industry questions, such as our earlier “office hours” guidance that provided a venue for banks and innovators to share information on new products and services like digital asset activities and artificial intelligence. Changing expectations around the use of guidance, as a tool to promote clarity in supervisory expectations, can encourage innovation in the banking system. Uncertainty in supervisory expectations has long been an obstacle to banks seeking to innovate, including banks engaging in digital asset activities or incorporating new technologies like artificial intelligence to improve efficiency and delivery of products and services. Just as it is imperative that banks innovate to remain competitive in the future, it is critical that bank supervisors enable the adoption of new technologies in a manner consistent with safety and soundness.” (Remarks)

Securities and Exchange Commission (SEC)

• Commissioner Hester Peirce issued a statement on the protocol staking statement saying, “Today’s statement provides welcome clarity for stakers and ‘staking-as-a-service’ providers in the United States. The Division’s statement is applicable to persons who self-stake certain covered crypto assets on a proof-of-stake or delegated proof-of-stake network. It also applies to non-custodial and custodial staking-as-a-service providers that facilitate this type of staking on behalf of others. Additionally, the statement explains that the pairing of certain ancillary services together with non-custodial or custodial staking services, in staff’s view, does not make providing staking services a securities offering. These ancillary services include the provision of slashing coverage, allowing crypto assets to be returned to a staker prior to the end of the protocol’s ‘unbonding’ period, delivering earned rewards based on an alternative rewards payment schedule and in alternative amounts, and aggregating stakers’ crypto assets together for purposes of satisfying a network’s minimum staking requirements.” (Statement)

• Commissioner Caroline Crenshaw issued a dissenting statement on the protocol staking statement, saying, “In sum, this statement fails to deliver a reliable roadmap for determining whether a staking service may be an investment contract. And for all its effort to bring protocol staking outside the scope of the securities laws, it still describes these services with terminology that (wrongly) invokes the imprimatur of regulatory protection. For example, the statement defines any third-party to whom crypto is entrusted for staking as a ‘custodian.’ ‘Custodian’ and ‘custody,’ as used in the securities laws, refer to a host of requirements designed to protect customers against loss by requiring registered entities to hold customer assets fairly and safely. No such protections currently exist for customers of staking services. Nor will they if, as the staff asserts, these services are not subject to the securities laws. It is not clear such protections are even available for staked crypto assets, which are subject to the risk of loss through protocol operation (i.e. ‘slashing’), protocol failure or errors, and hacking or other theft.” (Statement)

• Crenshaw also issued a statement saying, “How is it that these crypto assets are supposedly not securities when it comes to registration requirements, but conveniently are securities when a registrant sees an opportunity to sell a new product? If you’re confused, join the club. These developments lay bare that we are not actually chasing crypto regulatory clarity — these assets cannot be both securities and not securities at the exact same time. Rather than clarity, it seems we are simply getting out of the way of anything and everything in the crypto space. In so doing, we are thwarting any meaningful attempt to apply a coherent regime to crypto assets and rewarding a maximally aggressive approach to entering our markets. This results in opportunistic – and deeply inconsistent – legal interpretations. Even our staff can’t reconcile these inconsistencies, though their concerns seem to matter less to certain industry participants these days. So far, the Commission and The Crypto Task Force’s journey to clarity has only taken us further and further adrift in increasingly muddy waters of our own making.” (Statement)

CONGRESS

• On including digital assets tax provisions within reconciliation, Sen. Cynthia Lummis (R-WY) said, “That has needed to be fixed — and since this bill is a tax bill, it’s just the right place to do it.” (Semafor)

• On including digital assets tax provisions within reconciliation, Sen. Kirsten Gillibrand (D-NY) said, “It’s so premature.” (Semafor)

• In an interview on BloombergTV, Sen. Bill Hagerty (R-TN) said:
  • On the GENIUS Act: “Conversations are underway. I certainly respect the process that we’re addressing, but right now, this really isn’t about policy, nor is it process. We’re just trying to get floor time right now to get this processed. We have broad agreement, with respect to the content of this stablecoin legislation. My GENIUS Act, and this is going to, I think, take us into the 21st century, in terms of upgrading our payment systems. It’s going to have very desirable effects taking the U.S. economy into the digital assets arena, keeping innovation here, lowering risk here in America, and putting in place guardrails that will protect consumers. Because every one of these stablecoins will be backed up dollar for dollar with U.S. treasuries. [It is a] very positive outcome here; we’ve got very strong support.”
  • On the GENIUS Act timeline: “The timeline is the key issue right now. The window is closing on us to get this done because we’ve got to turn our attention to reconciliation. As I mentioned, we’re going to a conference meeting, our first broad conference meeting to talk about the reconciliation bill. We need to get the GENIUS Act passed. We need to get it on the floor. And that’s where my discussions have been with the leader and with my colleagues, is getting that time on the floor as soon as possible. I’d like to start it today, tomorrow, but I’d like to get that time on the floor as soon as possible, so then we can turn our attention to dealing with the reconciliation and getting more confirmations across the floor.”
  • On market structure legislation: “There’s been a great deal of good work that’s been done in the House. A lot of questions have come up in the process of building the stablecoin legislation that have been more appropriate to market structure. We’re focused on it. We’ve already begun the process of building it here in the Senate. Again, as I mentioned, a lot of it’s a natural outgrowth of the stablecoin legislation that we’ve been pushing forward. So we’re going to turn our attention immediately to that. But I think the most immediate thing that will happen is the reconciliation bill coming to the floor of the Senate. In the meantime, I pledged to President Trump I would get this done in the first 100 days if I possibly could. We’ve exceeded that by a bit, but President Trump wants to see this legislation on his desk. [Vice President] JD Vance was at the Bitcoin conference in Las Vegas just last week, saying he wants to see a clean bill in front of him—on stablecoin legislation—in front of President Trump. And I think we can get there.” (Press release)

• In her opening statement at the House Agriculture hearing on market structure, Ranking Member Angie Craig (D-MN) said, “The CLARITY Act is not a perfect bill. And there are improvements that I hope can still be made. However, I was pleased to join with the Chairman and others on this Committee to put forth the legislation because, at the end of the day, we need to bring consumer protection and a market structure to digital assets in our financial system. Digital assets, including cryptocurrencies, are no longer a novel financial product. They have become and will continue to be integrated with and, in some instances, completely change our financial architecture. I believe it is critical that Congress establish clear protections for consumers and retail investors as well as rules of the road for businesses dealing in digital assets.”

• Craig said in a statement, “Digital assets, including crypto currencies, are moving from a unique, novel financial product to becoming more and more integrated with our current financial architecture. I believe it is critical that Congress establish clear protections for consumers and retail investors as well as rules of the road for businesses dealing in digital assets. The bipartisan CLARITY Act will ensure oversight and regulation of digital assets in our financial system so that business owners, innovators and consumers can engage with in these markets knowing what is expected of them. While I agree we can no longer wait to regulate digital assets – and we must act to protect consumers – I intend to lead the effort under the law to prevent this President – or any future President – from participating in this space. We should all be able to agree that actions prohibited by members of Congress should also not be allowed by administration officials, including the President.” (Press release) 

• Rep. Don Davis (D-NC) said in a statement, “Families, entrepreneurs, and small businesses across our country, including rural areas in eastern North Carolina, seek ways to engage in the modern economy. Digital assets present a chance for a more inclusive financial future, but we need clear rules and fair oversight for innovation to thrive. Congress must ensure that America shapes digital finance, creates opportunities, protects consumers, and supports overlooked communities.” (Press release) 

• Sen. Chris Murphy (D-CT) tweeted, “I think stopping Donald Trump’s corruption and assault on democracy should be our number one priority. We shouldn’t pass a bill regulating crypto that allows Donald Trump use of meme and stable coin to enrich himself and corrupt our foreign policy.”

• Rep. Andy Barr (R-KY) tweeted, “This week, Democrats hijacked our FinancialCmte hearing on making the USA the crypto capital of the world to take cheap shots at President realDonaldTrump. The President’s assets are in a blind trust and are a non-issue. I’m leading and working with the Trump Administration to make the United States the global leader in digital assets, blockchain and DeFi.”

• Rep. Gregory Meeks (R-NY) tweeted, “I wish we could be debating the merits of the CLARITY Act, but the President and his family’s egregious crypto conflicts of interest cannot be ignored.”

• Rep. Dan Meuser (R-PA) tweeted, “In today’s FinancialCmte hearing, I pushed back on the Biden SEC’s lawsuit-first crypto approach and voiced support for the Clarity Act—legislation that sets clear rules, empowers innovation, and ensures strong protections. As President Trump said, America must lead the world in crypto. This bill doesn’t just help us get there, it ensures we lead.”

• Rep. William Timmons (R-SC) tweeted, “The crypto industry is no exception to President Trump’s promise to bring jobs back to the United States. For too long, innovators have fled to countries with more clear regulatory regimes. It is vital that Congress passes the CLARITY Act and brings talent back to the U.S!”

• Rep. David Scott (D-GA) tweeted, “At today’s USHouseFSC hearing, I raised concerns about the CLARITY Act. Crypto firms must meet SEC-level standards, not bypass oversight. With a history of misconduct and collapse, we must prioritize fairness, accountability, and investor protection.”

• Rep. Sylvia Garcia (D-TX) tweeted, “Meme coins and unstable markets put everyday investors at serious risk, and the Republican Calamity Crypto bill only makes it worse. I’m fighting in USHouseFSC to make sure we have real regulations that protect consumers from scams, fraud, and financial chaos. People deserve security.”

• Rep. Jamie Raskin (D-MD) tweeted, “Trump once attacked crypto as a danger. Now he’s made billions from it. His meme coin allows any foreign state, King, pardon seeker or criminal org to secretly put money directly in his pocket. And Trump’s SEC mysteriously dropped 13 investigations against crypto fraudsters.”

• Rep. Frank Pallone (D-NJ) tweeted, “Trump should be strengthening the U.S. dollar, not scheming to profit off crypto at the expense of American stability. An American president moving our Treasury toward a speculative currency he’s personally invested in is corrupt and it puts our economy at risk.”

• Sen. Elizabeth Warren (D-MA) tweeted, “The GOP slipped a last-minute carveout for crypto wallets into the GENIUS Act—and now the Trump family is planning to launch one. I’ll introduce an amendment to close this loophole, but this bill shouldn’t pass without serious anti-corruption fixes.”

• Sen. Cynthia Lummis (R-WY) tweeted, “There’s no place like home! Wyoming is ranked the 2nd best state for crypto, with the best regulatory framework and most crypto jobs per capita.”

• Lummis issued a statement on the confirmation of Michelle “Miki” Bowman as Vice Chair of Supervision at the Federal Reserve Board, “I’m thrilled that the Senate has confirmed Miki Bowman as Vice Chair of Supervision at the Federal Reserve. Her confirmation represents a turning point for digital assets and brings much-needed balance and accountability to Fed banking supervision. Miki’s commitment to evidence-based regulation over political considerations will strengthen America’s financial system. I’m excited to see the positive impact she’ll have in this crucial role.” (Press release)

• Sen. Dick Durbin (D-IL) tweeted, “I’m on the Senate floor pushing for a vote on my Crypto ATM amendment to protect Americans from crypto ATM fraud. Watch.”

• Sen. Jack Reed (D-RI) tweeted, “It might look like a normal ATM. But Bitcoin ATM scams conned Americans out of more than $114 million in 2023 alone. These largely unregulated machines are a huge hit with fraudsters & scammers. I’m leading the effort to protect consumers & crack down on Crypto ATM bad actors.”

• Sen. Roger Marshall (R-KS) tweeted, “America pays nearly five times more than anywhere else in the world in credit card fees. The average American family pays $1,200 in swipe fees each year. If we can move on crypto legislation, we will also move on swipe fee legislation to immediately give financial relief to working American families. This will be a double win for President Trump that puts Main Street over Wall Street.”

• Rep. Katherine Clark (D-MA) tweeted, “While millions of Americans struggle with soaring prices, Trump and his allies rake in billions from their crypto-meme coin con.   They get richer. You get left behind.”

• Rep. Sam Liccardo (D-CA) tweeted, “President Trump is using crypto and $TRUMP to supercharge his grift—over 760,000 Americans have lost more than $2 billion collectively on his meme coin scam. We must make corruption criminal again. #MEMEAct”

• Rep. Young Kim (R-CA) tweeted, “Allowing Kim Jong Un’s cronies to steal millions in cryptocurrency to fund the North Korean government’s schemes without consequences is unacceptable. We must tighten the leash on sanctions against North Korea & ensure safeguards on our digital asset ecosystem to prohibit malign activities by our adversaries.”

• Financial Services GOP tweeted, “Currently, there is no federal framework for non-security digital assets. Under the CLARITY Act, all digital asset companies will be subject to the rules and regulations within the bill – rules and regulations that currently do not exist for these assets.”

• House Committee on Agriculture tweeted, “The CLARITY Act gives digital asset firms real rules of the road: Clear lines between SEC & CFTC oversight. Legal pathways to serve customers Clarity means confidence for innovators and investors alike.”

• Rep. Byron Donalds (R-FL) tweeted, “The digital assets industry in America is growing, but Capitol Hill is getting in the way. We must bring clarity to the regulatory structure of this burgeoning industry so fledgling entrepreneurs can understand the basic rules of the road. The Clarity Act will do just that.”

• Rep. Bryan Steil (R-WI) tweeted, “The Golden Age of Digital Assets is here. It’s time to rise to the challenge.”

• Rep. Warren Davidson (R-OH) tweeted, “Tolkien was a genius. Lord of the Rings conveys inevitable truths… We cannot allow one ring to rule them all to be built – or, having been built, it must be defeated and destroyed. No digital ID. No CBDC. No surveillance state.”

• Davidson also tweeted, “It’s hard to implement CBDC without Digital ID… They’re building the Death Star and promising to get permission before turning it on. The surveillance state must be dismantled. No CBDC – ever. No Digital ID – ever. Get a warrant, and Drain the Swamp!”

• Davidson also tweeted, “Central Bank Digital Currency (CBDC) is the creepiest surveillance tool ever developed. It corrupts money from its proper role as a stable store of value and efficient means of exchange into a tool for surveillance, coercion, and control. CBDC is what globalists have in store. Watch for a central bank and bank regulator led financial crisis, where the only solution they offer is CBDC. CBDC poses an existential threat to Western civilization. It must be defeated.”

• Rep. French Hill (R-AR) tweeted, “I hope before the end of the summer, the American people will have clear rules of the road for digital assets to protect consumers and entrepreneurs who want to be in this new, dynamic fintech business.”

• Rep. Nick Begich (R-AK) tweeted, “America finally has a Bitcoin champion in the White House! VP TheBitcoinConf Unlike traditional fiat currencies, Bitcoin is open to all, resistant to centralized control, and built for the digital age. At its core, it’s about personal freedom and financial sovereignty. Proud to continue working with SenLummis to advance the BITCOIN Act in Congress and help lead America into a new era of digital assets.”

• Rep. Troy Downing (R-MT) tweeted, “Clarity cannot come soon enough! Could not be more excited to continue the bipartisan work of the last Congress to deliver clear rules of the road for the digital asset ecosystem.”

• Rep. Dusty Johnson (R-SD) tweeted, “America should be the global leader in the digital assets marketplace – but we can’t do that without establishing a clear regulatory framework. Our bill will give the market clarity it needs to thrive. I’m grateful for the work and leadership of my colleagues on this important piece of legislation.”

• Rep. Don Davis (D-NC) tweeted, “The Digital Asset Market Clarity (CLARITY) Act establishes a regulatory framework for digital assets in the United States, and I am co-leading it to ensure that America leads and shapes the future of digital finance.”

• Sen. Michael Bennet (D-CO) delivered remarks on the Senate floor, saying, “Thank you, Mr. President. I offer my amendment to prevent the President and Vice President from using their public office for personal enrichment. Donald Trump has already benefited enormously from his ability to issue stablecoins, as everybody in the world knows. His world liberty financial of which he and his family have an overwhelming stake issued a stablecoin just the other month. This stablecoin was chosen by companies throughout the Middle East to facilitate a $2 billion investment in ByteDance. The President’s company will reap interest in trading fees on billions of dollars while also raising concerns about undue influence and our national security. We shouldn’t have to wonder if the President of the United States is favoring the interests of a foreign nation or a private crypto exchange like ByteDance because he stands to profit. I believe this prohibition should extend to all digital assets, including the President’s meme coin. In other words, Mr. President, I believe the President and the Vice President and everybody who is a member of this body and in the House of Representatives should not be in the business of speculating and issuing cryptocurrency. Stablecoins, meme coins, any coin. The Senate should not continue with the GENIUS Act unless the opportunities for corruption and conflict of interest on the part of executives are fully addressed. thank you, Mr. President.”

• During the House Financial Services Minority Day hearing, Rep. Ayanna Pressley (D-MA) asked questions about intimate partner violence, saying, “Today, I’d like to speak not about market structure but actually about people. Specifically, women and survivors of intimate partner violence. Now we already know financial abuse is a core component of intimate partner violence. Abusers frequently control bank accounts, restrict access to money, stalk survivors through financial transactions, or drain shared assets to leave their partner economically trapped. With traditional financial systems, there are red flags and mechanisms to detect this such as bank alerts and flagged withdrawals. But in the crypto world, these protections vanish. Abusers can stash funds in anonymous wallets, bypass court-ordered freezes, or empty crypto accounts without a trace. We’ve seen reports where a husband hid $500,000 in Bitcoin during divorce proceedings and abusers used blockchain tools to exert coercive control.” (Press release)

• Pressley also said, “Under Trump, the SEC isn’t protecting anyone. It’s not regulating. Its cases are being dictated by whoever is paying the president tens of millions of dollars’ worth of crypto bribes…If this isn’t the definition of corruption, then what is?” (Press release)

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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