It was another busy week in digital assets federal policy. The House passed the CRA joint resolution disapproving of the IRS DeFi broker reporting rules, the Senate will have to vote on the House-passed measure before it is sent to the President for his signature. Senate Banking passed bipartisan stablecoin legislation out of committee. The House and Senate are in recess this week.

The SEC Crypto Task Force will host a roundtable on the regulation of cryptocurrency assets.

I appeared on Bloomberg Technology to discuss the latest developments in digital assets federal policy.

Read more below

Congress

Hearings

• Last week
  • On March 10, the House Rules Committee met 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 held 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.
  • On March 13, the Senate Banking Committee met in executive session to consider the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act and the Financial Integrity and Regulation Management (FIRM) Act.

• This week
  • The House and Senate are in recess.

Legislation

• The House passed 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,” by a vote of 292-132. (Vote)

• The Senate Banking Committee approved the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to establish a regulatory framework for payment stablecoins and 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. (Press release)

• Sens. Cynthia Lummis (R-WY), Jim Justice (R-WV), Tommy Tuberville (R-AL), Roger Marshall (R-KS), Marsha Blackburn (R-TN), and Bernie Moreno (R-OH) and Rep. Nick Begich (R-AK) introduced the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act to establish a Strategic Bitcoin Reserve (SBR). (Text)(Press release)

• Rep. Byron Donalds (R-FL) introduced the Establishment of the Strategic Bitcoin Reserve and United States Digital Asset Stockpile Act (Text)

Correspondence

• Rep. Byron Donalds (R-FL) sent a letter to SEC Acting Chair Mark Uyeda and Commissioner Hester Peirce requesting the SEC dismiss regulation by enforcement actions (Letter)(Press release)

Trump Administration

Securities and Exchange Commission (SEC)

• On March 21, the SEC Crypto Task Force will hold a discussion on How We Got Here and How We Get Out – Defining Security Status, focusing on the regulation of cryptocurrency assets.

Noteworthy Quotes and Events

ADMINISTRATION

Securities and Exchange Commission (SEC)

• In remarks before the 2025 Annual Washington Conference of the Institute of International Bankers, SEC Acting Chair Mark Uyeda said, “I have issued two directions to the SEC staff. First, I have asked them to re-engage with the Treasury Department, the Federal Reserve, and market participants to consider whether the Commission should move forward on regulatory changes for Government Securities ATSs. Second, in light of the significant negative public comment received on the definition of exchange with respect to crypto, I have asked SEC staff for options on abandoning that part of the proposal.” (Remarks)

CONGRESS

• In an interview with Politico, House Financial Services Subcommittee on Digital Assets Chair Bryan Steil (R-WI) discussed bridging differences between the House and Senate stablecoin bills and the status of market structure legislation.

• On the revised stablecoin draft, Steil said, “We’re still receiving feedback. The reason it’s in discussion form is we’re looking for people to come bring us feedback and hear from stakeholders across the spectrum as to what they like or dislike about the legislation and how it would play out. And so we’re really in listening mode and people are still providing feedback, and so I don’t want to commit to what the final product will look like. But we’re kind of updating this to make sure that it’s a transparent process as we get to a good policy end result.”

• On market structure, Steil said, “…when Patrick McHenry brought forward his legislation, he was in a very different political environment than we are today. So for that bill at that time to ultimately become law, he needed President Biden to sign it, who was hostile to the crypto industry and therefore needed to create certain agreements and compromises to have a shot at that level of success. We’re not bound by that, in large part because the political landscape has completely changed in a very positive way, in my opinion… I think we are not bound by the agreements made in the original FIT 21.” (PoliticoPro)

• Sen. Ruben Gallego (D-AZ), Ranking Member of the Subcommittee on Digital Assets, issued a statement in support of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act when it passed out of the Banking, Housing, and Urban Affairs Committee, saying, “It’s clear that digital assets are here to stay. It’s Congress’s job to come together in a bipartisan fashion to ensure this emerging sector is well regulated and safe for consumers. While this bill is not perfect, we have made many improvements through our bipartisan committee work – including better protections for customers in the event of bankruptcy, addressing national security risks, and strengthening guardrails to preserve financial stability – and I believe it is a step in the right direction. I look forward to continuing to improve on this bill as it moves through the Senate.” (Press release)

• Sen. Andy Kim (D-NJ) said of his agreement with Sen. Bill Hagerty (R-TN) to introduce an amendment to the GENIUS Act that would deter bad actors’ use of stablecoins in illicit activities and further legislative action to establish a comprehensive anti-money laundering and illicit finance framework, “I must express my deep concern with the evidence showing that cryptocurrencies, particularly stablecoin have been utilized by numerous bad actors including by drug cartels, foreign terrorist organizations to finance their illicit activities. There needs to be deterrence under law to ensure stablecoin issuers do not engage in any activities that would facilitate funds to any such cartels or foreign terrorist organizations… I’m going to keep fighting to finalize my amendment as this bill moves out of committee to deter issuers from engaging in illicit finance acts. I am also going to keep fighting to establish a comprehensive AML/BSA finance framework beyond just issuers in the crypto ecosystem in future pieces of legislation, including a market structure bill.” (Press release) 

• Hagerty added, “I agree with Senator Kim that illicit activities by drug cartels, foreign terrorist organizations, and state actors are a serious issue that cannot be ignored. As such, we must ensure that just as in traditional finance, there is deterrence under law that ensure stablecoin issuers don’t in any way inadvertently facilitate these sorts of activities. I want to make it clear I commit to working with Senator Kim to finalize an amendment as the bill moves forward to ensure issuers annually certify that they are not enabling such activity subject to civil and criminal penalties. I also commit to working with Senator Kim to establish a comprehensive anti-money laundering and illicit finance framework that would be applicable to the entities beyond the issuer in the digital assets ecosystem in future pieces of legislation that would include but not be limited to a forthcoming market structure bill.” (Press release) 

• Rep. Young Kim (R-CA) tweeted, “Digital assets & cryptocurrencies are another option to help Americans unleash wealth creation. I asked in FinancialCmte how we can provide clarity & promote innovation without leaving traditional dollar transactions behind.”

• Rep. Byron Donalds (R-FL) tweeted, “For years, Democrats waged war on crypto. Now is the time for Congressional Republicans to decisively end this war. My bill, “The Reserve & Stockpile Act” cements POTUS’s EO establishing a Strategic Bitcoin Reserve & Digital Asset Stockpile INTO LAW. In Florida, we’ve seen firsthand, the growth and prosperity of innovation generated by this next generation financial technology. POTUS has pledged to make America the crypto capital of the world and codifying this important policy win for America into law will do just that.”

• Rep. William Timmons (R-SC) tweeted, “Friday 5! A look at some of the work we accomplished this week! Spoke at FinancialCmte’s hearing on the importance of a regulatory framework for digital assets. Voted YES to pass the CR and support President Trump’s America First agenda. Introduced legislation repealing Biden-era regulations. Opened an investigation into the Mid-Air Collision of a U.S. Army UH-60 Black Hawk Helicopter and American Airlines Flight 5342 near DCA. Sent a letter with DOGECommittee requesting AGPamBondi & FBIDirectorKash investigate attacks on Tesla as domestic terrorism.”

• Sen. Cynthia Lummis (R-WY) tweeted, “Say it with me: this is the year for bitcoin and digital assets.”

• Lummis also tweeted, “Digital assets are the future. The GENIUS Act is innovative legislation that secures America’s place as a global financial leader. The race is on, and having comprehensive digital asset framework is how we win.”

• Lummis also tweeted, “The Banking Committee’s strong bipartisan passage of the GENIUS Act out of committee brings us one step closer to providing stablecoin issuers with choice between state and national charters & will secure our nation’s competitive edge in the rapidly evolving digital asset space.”

• Rep. Troy Downing (R-MT) tweeted, “I don’t trust the federal government with any of my data, let alone my sensitive financial data. Authoritarian technology like central bank digital currencies represent one of the greatest threats to civil liberties in our lifetime.”

• Downing also tweeted, “H.J. Res. 25 will make America competitive and unleash innovation. HouseGOP is passing legislation to reverse bloated Biden-era bureaucratic rules on digital asset sales.”

• House Republicans tweeted, “Today, the House passed H. J. Res. 25 to reverse a Biden-era regulation that expanded the federal government’s ability to track individuals’ financial activities and placed extensive burdens on cryptocurrency exchanges. House Republicans are undoing Biden’s burdensome regulations that increased IRS’ power, invaded Americans’ privacy, and crushed American innovation.”

• Rep. Tom Emmer (R-MN) tweeted, “Yesterday, HouseGOP approved RepMikeCarey’s resolution to roll back an overreaching Biden rule that would have crippled the digital asset industry and stifled American innovation. The Biden administration’s assault on America’s digit asset industry is OVER.”

• Emmer also tweeted, “A new day has arrived. With a POTUS who is focused on bringing our financial system into the twenty-first century, opportunities for American innovation and participation in the digital asset ecosystem are limitless.”

• House Financial Services Chair French Hill (AR-02) issued a statement on the passage of H.J. Res 25, saying, “The Biden Administration’s controversial ‘Broker Rule’ is a clear example of government overreach that threatens to push American digital asset development overseas. I was proud to protect America’s leadership in the digital asset ecosystem and vote to overturn this harmful, anti-innovation midnight rulemaking. I look forward to working in a bipartisan manner to ensure the digital asset reporting requirements from the Infrastructure Investment and Jobs Act match the technology’s operation. We must bring legal and regulatory certainty to ensure these technologies and entrepreneurs can flourish here in the United States.” (Press release)

• Rep. Tim Moore (R-NC) tweeted, “In its final days, the Biden Administration rushed through a rule imposing impossible IRS reporting requirements on digital assets — crippling innovation and driving business overseas. On the House floor, I strongly advocated for H.J. Res. 25 to stop this blatant government overreach and keep the U.S. competitive.”

• Moore also tweeted, “Today, FinancialCmte held a hearing on navigating the digital payments ecosystem. During this hearing, I announced that I’ll be introducing legislation to create a federal sandbox to ensure proper oversight without stifling innovation.”

• Rep. Nick Begich (R-AK) tweeted, “The BITCOIN Act establishes a Strategic Bitcoin Reserve and ensures America will remain the dominant player in the digital financial era by strengthening our national economic security and spearheading innovation.”

• Rep. Dan Meuser (R-PA) tweeted, “Properly regulated stablecoins can provide fast, efficient payment solutions and ensure the U.S. dollar remains a global financial leader. Unlike Central Bank Digital Currencies (CBDCs), stablecoins achieve these goals without compromising privacy or market freedom. To unlock the full potential of payment stablecoins, Congress must establish a federal framework for their issuance. In today’s FinancialCmte hearing, I questioned witnesses on how stablecoins can preserve individual privacy rights and maintain the U.S. dollar’s status as the leading global currency.”

• Meuser also tweeted, “The Biden administration’s push for a Central Bank Digital Currency (CBDC) threatened Americans’ financial privacy. CBDCs give the federal government unprecedented control over our financial transactions. That’s why I strongly support GOPMajorityWhip Tom Emmer’s Anti-CBDC Surveillance State Act to permanently ban unelected bureaucrats from creating a government-controlled digital currency. Tomorrow, FinancialCmte will explore why we need payment stablecoins for innovation and financial freedom, instead of a government-controlled CBDC that could be used to track and restrict lawful purchases.”

• Financial Services GOP tweeted, “As Chairman RepFrenchHill, RepAnnWagner, and RepBryanSteil expressed in their letter to Acting SECGov Chair Mark Uyeda last Friday, the Commission should take steps to remove inappropriate hurdles put in place by the Biden Admin that would hurt the digital asset ecosystem. The Committee welcomes this news from Acting Chair Uyeda.”

• Sen. Elizabeth Warren (D-MA) said of the GENIUS Act, “I am worried about the United States moving forward on a stablecoin bill that opens up opportunities for drug traffickers and terrorists to evade every other part of the finance system.” (PoliticoPro)

• Warren also issued a press release entitled Current Stablecoin Bill Risks Americans’ Money, our Economy, and our National Security, saying, “Let me be direct. We all know that there are stablecoin issuers making money off facilitating crime and funding Iran and North Korea. We know there are stablecoin issuers making money off cheating consumers. And we’re pretty sure that Elon Musk would love to issue his own currency to compete with the U.S. dollar. But we were not sent here to work for North Korea, or Iran, or Elon Musk, or a bunch of scammers. Innovative blockchain companies that want regulatory certainty and a vibrant and innovative marketplace deserve better than we’re giving them in this bill and so do the American people.” (Press release)

Highlights of the Week

• Last week, I appeared on Bloomberg Technology to discuss the latest developments in digital assets federal policy. Watch the clip here.

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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