Zero One Strategies

March 10, 2025

Last week marked one of the busiest weeks ever in digital assets policy. The White House hosted the first ever Crypto Summit attended by Administration officials, members of Congress, and digital assets industry executives, with remarks from President Trump. The Summit followed the President signing an Executive Order establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile. The OCC published an interpretive letter confirming crypto custody and activity are permissible and rescinding previous requirements on crypto activities.

In his opening statement at the Summit, Trump called for Congress to pass stablecoin legislation by the August recess. Building momentum toward that goal, the Senate Banking Committee could consider the bipartisan GENIUS Act as early as this week, while the House Financial Services Committee will hold a hearing on the payment stablecoin ecosystem.

Last week, the Senate passed the Congressional Review Act Joint Resolution to rescind the IRS DeFi Broker Rule by a vote of 70 – 27, with 18 Democrats and 1 Independent joining all Republicans on supporting passage. This week, the House is expected to vote on the House version, which if passed, will be sent to the Senate for a repeat vote due to blue slip legislative procedures to comply with the Origination Clause of the Constitution (requiring all revenue measures to originate in the House).

The House has a new Congressional Crypto Caucus with the goal of functioning as a bipartisan pro-crypto voting bloc.

Read more below

Congress

Hearings

  • Last week
    • On March 4, the House Financial Services Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Subcommittee holds a hearing Examining Monetary Policy and Economic Opportunity.
  • This week
    • On March 10, the House Rules Committee will meet to consider H.J.Res. 25, Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales.
    • On March 11, the House Financial Services Committee will hold a hearing on Navigating the Digital Payments Ecosystem: Examining a Federal Framework for Payment Stablecoins and Consequences of a U.S. Central Bank Digital Currency.

Legislation

  • The Senate passed S.J.Res.3 – A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to “Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales”by a vote of 70 – 27. (Text)
  • Senate Banking Chair Tim Scott (R-SC) and Republican members of the Senate Banking Committee introduced the Financial Integrity and Regulation Management (FIRM) Act to eliminate all references to reputational risk as a measure to determine the safety and soundness of regulated financial institutions. (Text)(Press release)
  • The House Energy and Commerce Committee passed the Computer Safety Technology Act, introduced Reps. Darren Soto (D-FL), Kathy Castor (D-FL), and Lori Trahan (D-MA), to direct the Consumer Product Safety Commission to establish a pilot program to explore the use of artificial intelligence in support of the mission of the Commission and to direct the Secretary of Commerce and the Federal Trade Commission to study and report on the use of blockchain technology and tokens. (Text)
  • Reps. Kat Cammack (R-FL) and Darren Soto (D-FL) introduced the Deploying American Blockchains Act to direct the Secretary of Commerce to serve as the president’s principal advisor for policy pertaining to the deployment, use, application, and competitiveness of blockchain technology or other distributed ledger technology, applications built on blockchain technology, or other distributed ledger technology, tokens, and tokenization, and to establish a Blockchain Deployment Program. (Text)(Press release)
  • Sen. Mike Lee (R-UT) introduced the Saving Privacy Act, which includes a prohibition on restricting use of convertible virtual currency by a person to purchase goods or services for the person’s own use and prohibits a CBDC. (Text)(Press release)(Fact sheet)

Correspondence

  • House Financial Services Committee Chair French Hill (R-AR) and Subcommittee Chair of the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Bryan Steil (R-WI), and Chair of the Subcommittee on Capital Markets Ann Wagner (R-MO), sent a letter to Acting Chairman of the Securities and Exchange Commission Mark Uyeda encouraging the Commission to “take additional steps to remove inappropriate hurdles put in by place by the Biden Administration that hinder the digital asset ecosystem.” (Letter)(Press release)

Caucuses

  • Reps. Tom Emmer (R-MN) and Ritchie Torres (D-NY) announced the formation of the Congressional Crypto Caucus as a bipartisan voting bloc to support digital assets policy.

Publications

  • Sen. Chris Murphy (D-CT) published on Substack Trump’s Biggest Corruption is Flying Under the Radar, in which he concludes, “So, while Trump’s meme coin may seem like some silly, hard-to-understand online fad, it could end up being the most insidious tools of corruption in the history of the presidency. The whole scheme is akin to Trump posting his Venmo or CashApp handle and inviting corporate interests and foreign governments to send him funds. Just in secret. Trump’s crypto scams are just further proof that this administration doesn’t give a crap about you or helping our communities. The only thing they care about is making money for Trump and his billionaire friends.” (Substack)
  • Reps. Tom Emmer (R-MN) and Ritchie Torres (D-NY) published in Coindesk an op-ed Beyond Party Lines: Securing America’s Crypto Innovation Edge on the Congressional Crypto Caucus. (Op-ed)

Trump Administration

Office of the Comptroller of the Currency (OCC)

  • The OCC published an interpretive letter to “confirm that crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks such as distributed ledger are permissible for national banks and federal savings associations” and to rescind the requirement for “OCC-supervised institutions to receive supervisory nonobjection and demonstrate that they have adequate controls in place before they can engage in these cryptocurrency activities,” as well as to withdraw OCC participation in the joint statement on crypto-asset risks to banking organizations and the joint statement on liquidity risks to banking organizations resulting from crypto-asset market vulnerabilities. (Interpretive Letter 1183)(Press release)

White House

  • President Trump issued an Executive Order on the Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile that creates a Strategic Bitcoin Reserve that will treat bitcoin as a reserve asset capitalized with bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings. The EO also established a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin owned by the Department of Treasury that was forfeited in criminal or civil asset forfeiture proceedings. (Executive Order)(Fact sheet)
  • The White House hosted the first Crypto Summit, led by White House AI & Crypto Czar David Sacks, to discuss digital asset regulation, the mechanics of the Strategic Bitcoin Reserve, blockchain technology, financial markets, and other issues with digital assets industry CEOs supportive of the President, members of Congress, and cabinet officials, followed by a larger evening reception with additional members of Congress and industry leaders.
  • The White House issued a Statement of Administration Policy (SAP) in support of the CRA joint resolutions to rescind the IRS DeFi Broker Rule. (SAP)

Securities and Exchange Commission (SEC)

  • The SEC Crypto Task Force Spring Sprint Toward Crypto Clarity roundtable series will begin on March 21 with a roundtable on How We Got Here and How We Get Out – Defining Security Status. (Event page)

Commodity Futures Trading Commission (CFTC)

  • CFTC Acting Chair Caroline Pham hosted the Digital Asset CEO Forum to discuss the launch of the CFTC’s digital asset markets pilot program for tokenized non-cash collateral such as stablecoins, originally announced in February. (X: Eleanor Terrett)(Announcement)

Noteworthy Quotes and Events

ADMINISTRATION

White House

Executive Order on the Establishment of the Strategic Bitcoin Reserve and United States Digital Aset Stockpile

  • The White House tweeted, “America will be the Bitcoin superpower of the world. The Golden Age of America has BEGUN!”
  • White House AI & Crypto Czar David Sacks tweeted, “Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve. The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it will not cost taxpayers a dime. It is estimated that the U.S. government owns about 200,000 bitcoin; however, there has never been a complete audit. The E.O. directs a full accounting of the federal government’s digital asset holdings. The U.S. will not sell any bitcoin deposited into the Reserve. It will be kept as a store of value. The Reserve is like a digital Fort Knox for the cryptocurrency often called ‘digital gold.’ Premature sales of bitcoin have already cost U.S. taxpayers over $17 billion in lost value. Now the federal government will have a strategy to maximize the value of its holdings. The Secretaries of Treasury and Commerce are authorized to develop budget-neutral strategies for acquiring additional bitcoin, provided that those strategies have no incremental costs on American taxpayers. IN ADDITION, the Executive Order establishes a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin forfeited in criminal or civil proceedings. The government will not acquire additional assets for the Stockpile beyond those obtained through forfeiture proceedings. The purpose of the Stockpile is responsible stewardship of the government’s digital assets under the Treasury Department. PROMISES MADE, PROMISES KEPT President Trump promised to create a Strategic Bitcoin Reserve and Digital Asset Stockpile. Those promises have been kept. This Executive Order underscores President Trump’s commitment to making the U.S. the ‘crypto capital of the world.’ I want to thank the President for his leadership and vision in supporting this cutting-edge technology and for his rapid execution in supporting the digital asset industry. His administration is truly moving at ‘tech speed.’ I also want to thank the President’s Working Group on Digital Asset Markets — especially Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick — for their help and support in getting this done. Finally Bo Hines played a critical role as Executive Director of our Working Group.”
  • Sacks tweeted, “It’s extraordinary to work for a President who moves at ‘tech speed’ on behalf of the American people.”
  • Sacks also tweeted, “Historic moment! Thank you, President Trump!”
  • Sacks posted an appearance on Bloomberg Technology and tweeted, “1-minute explanation of why we need a Strategic Bitcoin Reserve”
  • Sacks also tweeted, “Over the past decade, the federal government sold approximately 195,000 bitcoin for proceeds of $366 million. If the government had held the bitcoin, it would be worth over $17 billion today. That’s how much it has cost American taxpayers not to have a long-term strategy.”

White House Digital Asset Summit

  • President Trump delivered remarks at the White House Digital Assets Summit (Video)(Transcript)
  • The White House tweeted, “’Last year, I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet and we’re taking historic action to deliver on that promise…’  – President Donald J. Trump, Crypto Making America Great Again”
  • President Trump tweeted, “’Welcome to the first-ever White House Digital Asset Summit. Last year, I promised to make America the Bitcoin superpower of the world, AND WE’RE TAKING HISTORIC ACTION TO DELIVER ON THAT PROMISE.’ –President Donald J. Trump”
  • The White House tweeted a video with, “President Trump Delivers Remarks at the White House Digital Assets Summit”
  • Sacks tweeted, “Incredible event at the White House today. Thank you President Trump for hosting, and all of our distinguished guests for attending.”
  • Sacks also tweeted, “Most of the invite lists circling X are fake but this looks correct (though not yet complete). Note that the Digital Asset Summit is not a conference; it’s a roundtable. We appreciate all of the interest but need to keep it small to have a meaningful conversation.”
  • In his remarks, Treasury Secretary Scott Bessent said, “Much of Treasury’s responsibility in this order relates to the tax code and determinations around risk weightings and I’m here to assure you that we are going to work with the Comptroller of the Currency, the IRS, and we’re going to rescind and amend all applicable previous guidance and we are going to put a lot of thought into the stablecoin regime, and, as President Trump has directed, we are going to keep the U.S. the dominant reserve currency in the world and we will use stablecoins to do that.”

CRA on IRS DeFi Broker Rule

  • White House AI & Crypto Czar David Sacks tweeted, “The White House is pleased to announce its support for the CRA introduced by SenTedCruz and RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th hour attack on the crypto community by the Biden administration.”

CONGRESS

EO on Bitcoin Strategic Reserve and Digital Asset Stockpile

  • House Financial Services Committee Chair French Hill (R-AR) released a statement saying, “President Trump is committed to ensuring the U.S. remains a global leader in digital assets. It is critical we ensure proper accountability, accurate tracking, and a unified approach to managing these novel assets. As President Trump works to implement this Executive Order, I encourage his administration to collaborate with Congress, particularly in regard to the structure and any funding related to the Strategic Bitcoin Reserve. Like President Trump, I believe the U.S. must lead in digital assets, and I look forward to working with the administration on the critically important steps of enacting federal stablecoin and digital asset market structure legislation.” (Press release)
  • Rep. Mike Lawler (R-NY) tweeted, “President Trump’s decision to establish the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile will ensure America remains at the forefront of the blockchain and digital asset revolution and deserves praise. I look forward to working with the president and his administration to enact the critical legislation we need to regulate the digital asset market, which is vital to making the United States the global leader in the innovation economy.”
  • Rep. Byron Donalds (R-FL) tweeted, “Last night POTUS took important steps to ensure our nation is proactively prepared for the next evolution of financial tech. Creating a Strategic Bitcoin Reserve & Digital Asset Stockpile promotes growth, innovation, & ensures our financial system remains the envy of the globe.”
  • Sen. Cynthia Lummis (R-WY) tweeted, “This is the most pro-bitcoin and digital asset administration in history.”
  • Lummis also tweeted, “Another promise made, another promise kept. We are becoming the bitcoin and digital asset capital of the world. America is so ₿ack.”
  • Rep. William Timmons (R-SC) tweeted, “President Trump’s new executive order on crypto is a major step toward protecting innovation and financial freedom in America. We must ensure regulations support, not stifle, blockchain technology and digital assets. America First means leading in crypto, not crushing it!”
  • Rep. Mike Collins (R-GA) tweeted, “Biden’s regulatory assault against cryptocurrency left a power vacuum in a $3 trillion dollar global market. While other nations adopted and prospered with crypto, the United States was left behind. This changes things.”
  • Rep. Steve Cohen (D-TN) tweeted, “This act and other support of crypto is putting the United States financial status in jeopardy. It is simply way to pay back a campaign debt to people who otherwise would be investigated by the CFPB and SEC. Politics at it smelliest”
  • Rep. Greg Casar (D-TX) tweeted, “The crypto industry gave Trump millions of dollars through campaign donations, super PACs, inauguration fundraising, & more. Now, Trump wants to create a crypto ‘strategic reserve.’ This isn’t about cryptocurrency. It’s about corruption. Just one more way for Trump to funnel taxpayer money into the pockets of donors & billionaire buddies.”
  • Rep. Shontel Brown (D-OH) tweeted, “Brutal line from this Reuters story on Trump’s crypto scam: ‘It is not clear how such a reserve would work or how it would benefit taxpayers.’ Meanwhile, he wants to fire VA nurses and cut Medicaid and SNAP.”
  • Sen. Elizabeth Warren (D-MA) tweeted, “There are very few people in America who think tax dollars should be spent to juice the net worth of a small handful of crypto billionaires — yet that’s exactly what’s happening here. Donald Trump’s idea of a crypto slush fund is pure corruption.”
  • Rep. Frank Pallone (D-NJ) tweeted, “his might be Trump’s biggest grift yet. He’s pushing a U.S. crypto stockpile while his own meme coin trades on the market, a huge conflict of interest. The gov’t hoarding risky tokens isn’t a strategy — it’s gambling with taxpayer dollars. Insiders profit, while Americans bear the risk.”
  • Rep. Pramila Jayapal (D-WA) tweeted, “Translation: ‘I’m taking your taxpayer dollars, using them to buy crypto that I’m already invested in, and making myself and my rich friends billions of dollars.’”
  • Sen. Patty Murray (D-WA) tweeted, “While he chokes off cancer research and fires VA researchers, the President is using your taxpayer dollars to buy crypto and enrich his personal allies. This is the most corrupt administration in history and it’s not even close.”

White House Crypto Summit

  • Rep. Bryan Steil (R-WI) also tweeted, “At the White House Digital Asset Roundtable today. I’m working to write clear rules for innovators in the US that support competition, prevent fraud, and give investors certainty.”
  • Steil also tweeted, “The Golden Age of Digital Assets is here, thank you POTUS and davidsacks47 for the invitation and your leadership on this issue. Looking forward to a great conversation.”
  • Steil also tweeted, “Ready to work with President Trump to make the U.S. a leader in digital assets”
  • Rep. Tom Emmer (R-MN) tweeted, “Promises made, promises kept. A few years ago, a WhiteHouse Crypto Summit was nothing more than a dream. Now, we have a POTUS who is positioning America to be the crypto capital of the world.”
  • Emmer also tweeted, “I was honored to participate in POTUS’ White House Crypto Summit today. He has been an incredible leader in this space, assembling a team of the most informed policy experts while taking decisive action to ensure the U.S. remains at the forefront of innovation. America is back!”
  • Sen. Cynthia Lummis (R-WY) tweeted, “Best wishes for a great crypto summit at the White House today. I’m home sick with pneumonia this week and sad that I won’t be there. We hope to get bitcoin and digital asset legislation to your desk soon, President Trump!”
  • Rep. Dan Meuser (R-PA) tweeted, “Great evening following the White House crypto roundtable, where President realDonaldTrump’s Administration is stepping up to ensure the U.S. remains the global leader in crypto innovation. It was great to hear from Treasury Secretary Scott Bessent, who understands how crypto can help reprivatize the economy. I also had insightful conversations with Michael Saylor and Avalanche CEO Emin Gün Sirer, both of whom are driving the next wave of technological progress. Additionally, Coinbase CEO Brian Armstrong and White House Crypto Czar David Sacks delivered a strong message on the need to fight back against debanking and regulatory overreach, ensuring that innovation stays in the U.S. America must embrace digital assets—not push them offshore. Pro-crypto policies mean economic growth, financial freedom, and a stronger future. FinancialCmte Republicans will keep fighting to ensure the U.S. is the crypto capital of the world. That starts with House leadership on stablecoins and market structure.”

Miscellaneous

  • Rep. Nick Begich (R-AK) tweeted, “It’s time for America to become the first BITCOIN superpower. I am working on something ₿ig with @SenLummis. Stay tuned for next Tuesday. @btcpolicyorg”
  • Financial Services GOP tweeted, “Committee Chairman RepFrenchHill, RepBryanSteil, and RepAnnWagner today sent SECGov Acting Chair Mark Uyeda a letter encouraging the Commission to remove digital asset hurdles put in place by the Biden Administration.”
  • Senate Banking Chair Tim Scott (R-SC) tweeted, “I’m grateful to USOCC Acting Comptroller Hood for taking much-needed action to rescind harmful Biden-era guidance which made it difficult for the digital assets industry to access financial services. Let’s make the U.S. the crypto capital of the world”
  • Rep. Brandon Gill (R-TX) tweeted, “Unelected bureaucrats have NO right to track, monitor, or control your money. I’m proud to cosponsor GOPMajorityWhip Emmer’s Anti-CBDC Surveillance State Act to stop a government-controlled digital currency before it can strip away our financial freedom.”
  • Regarding the Financial Integrity and Regulation Management Act, Sen. Cynthia Lummis (R-WY) tweeted, “Americans deserve a transparent regulatory framework that fosters innovation in digital assets instead of smothering it with government overreach. We’re putting rogue regulators on notice—their days of unchecked power are over.”
  • Rep. Sam Liccardo (D-CA) tweeted, “Even most corrupt politicians have enough shame to avoid blatant self-dealing of this sort, but here’s one more reason why this President’s issuance of a digital asset would have given rise to impeachment in any other Congress and corruption charges in any other country (e.g., Argentina)”
  • Regarding the SEC dropping its lawsuit against Kraken, Sen. Cynthia Lummis (R-WY) tweeted, “A HUGE win for the digital asset industry! We are closing the door on regulation by punishment and welcoming home American innovation. This. Is. Huge.”
  • Rep. Tom Emmer (R-MN) tweeted, “Millions of American voters made their voices heard at the ballot box in November. You elected the most pro-crypto Congress and Presidential Administration in history. To capitalize on this opportunity, RepRitchie and I have launched the Congressional Crypto Caucus. The Crypto Caucus will serve as a unified voting bloc in Congress – a nonpartisan group of members ready to mobilize to support and defend open, permissionless, and private innovation in the United States.”
  • Emmer also tweeted, “Digital asset technology represents a fundamental shift in how we think about finance. As Chairmen of the Congressional Crypto Caucus, Rep Ritchie and I will ensure the United States doesn’t just participate in the future of finance but defines it.”
  • Rep. Ritchie Torres (D-NY) tweeted, “Excited to announce that today, GOPMajorityWhip and I are launching the Congressional Crypto Caucus. We hope to build a unified, bipartisan coalition to cement America’s leadership in the future of digital assets and blockchain innovation.”
  • Sen. Chris Murphy (D-CT) tweeted, “I wrote a short explainer for my Substack of the biggest (but strangely under the radar) corruption of the Trump White House: the Trump crypto coin. A conduit for secret, shameless bribery of the President.”
  • Murphy also tweeted, “I went to the Senate floor to lay out for my colleagues the stunning story of brazen, open corruption during the first 6 weeks of the Trump presidency. I think it’s a story everyone needs to know. The Trump crypto coin scam – maybe the biggest corruption story of them all.”
  • Rep. Jake Auchincloss (D-MA) tweeted, “Trump is transactional. He’s trying to sell out Ukraine. So, the question is—who’s buying Trump? The Kremlin, by buying the Trump crypto coin. And if the president wants to prove me wrong, then release the records like I asked.”
  • Rep. William Timmons (R-SC) tweeted, “America First means leading in crypto, not crushing it! Thank you, POTUS.”
  • Rep. Mike Collins (R-GA) tweeted, “Thank you POTUS for officially ending the federal bureaucracy’s war on crypto.”
  • Sen. Ted Cruz tweeted, “The Senate passed my CRA to protect DEFI brokers — this legislation will allow for crypto innovation to flourish in the Lone Star State.”
  • Sen. Cynthia Lummis (R-WY) tweeted, “The IRS rule on DeFi fundamentally misunderstands how decentralized technology works. Wyoming has been at the forefront of responsible digital asset regulation, and I’ve seen firsthand how regulatory clarity– not overreach– fosters innovation. These heavy-handed federal rules threaten to drive American crypto entrepreneurs overseas at a time when we should be cultivating this industry at home. Proud to join SenTedCruz in rescinding this attack on the crypto community.”
  • Sen. Markwayne Mullin (R-OK) tweeted, “We’re committed to undoing every useless 11th hour Biden-era regulation one step at a time. At 11am tomorrow, we’ll advance SenTedCruz’s CRA to reverse a burdensome IRS rule on digital-assets.”
  • Rep. Mike Carey (R-OH) tweeted, “The IRS ‘DeFi’ rule burdens taxpayers with extra, unnecessary paperwork and limits the crypto industry’s ability to grow. It’s misguided and needs to go. I’m proud to help lead the effort to overturn it.”
  • Sen. Elizabeth Warren (D-MA) delivered floor remarks and issued a press release saying, “‘Vote yes if you want more Americans to get scammed, vote no if you don’t. Vote yes if you want Elon Musk to have a Get-Out-of-Jail-Free card when he scams people on X money, vote no if you don’t.’  Warren warns on next Republican giveaway to Elon: Legislation moving next week that will allow Musk to issue X Money as his own stablecoin without any guardrails to protect consumers.” (Press release)

Highlights of the Week

  • I attended the Milken Institute 3rd Annual Future of Fintech Symposium, which featured roundtable and panel discussions on emerging technologies changing the landscape of financial services, including AI, digital assets and blockchain, and quantum.

What I’m Reading This Week

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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