This week in digital assets federal policy, after further bipartisan negotiations on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the Senate took two procedural votes to advance to consider the bill. On Monday, the vote for cloture on the motion to proceed passed by a 66-32 vote, followed by a 69-31 vote on Wednesday to adopt the motion to proceed. Over fifty amendments were filed before Congress adjourned for the Memorial Day recess. Debate on amendments and the underlying GENIUS Act bill is expected to begin when Congress returns.

The House Financial Services Committee announced a full committee hearing on digital assets market structure after the recess, potentially followed by the markup of their market structure bill.

The GAO published several reports highlighting digital assets-related legislative and regulatory recommendations requiring action. Congressional Democrats continue to call for scrutiny of President Trump’s digital assets activities following a private dinner at Mar-a-Lago for the top investors in $TRUMP.

The House-passed reconciliation bill includes an excise tax that could impact digital assets remittances. Reconciliation rules are complicated; for a quick and accessible overview, see my Primer on the reconciliation process.  

Read more below

Congress

Hearings

• Last week
  • On May 20, the House Appropriations Financial Services and General Government Subcommittee held a hearing on Oversight Hearing of the U.S. Securities and Exchange Commission.
• This week
  • Congress is in recess.
• Upcoming
  • On June 4, the House Financial Services Committee will hold a hearing on American Innovation and the Future of Digital Assets: From Blueprint to a Functional Framework.
  • On June 5, the House Financial Services Financial Institutions Subcommittee will hold a hearing on Framework for the Future: Reviewing Data Privacy in Today’s Financial System.
  • On June 10, the House Financial Services Committee will hold a markup on various bills, including potentially digital assets-related legislation.
  • 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

• The Senate voted to proceed to consideration of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. (Text) (Filed amendments)

• The House passed their reconciliation bill, One Big Beautiful Bill Act, including an excise tax on remittance transfers sent abroad by non-U.S. citizens or nationals, which could have an impact on digital assets remittances. (Text)

• Reps. Tom Emmer (R-MN) and Ritchie Torres (D-NY) introduced the Blockchain Regulatory Certainty Act (BRCA), to clarify digital asset developers and service providers that do not custody consumer funds are not money transmitters. (Text)(Press release)

• House Financial Services Ranking Member Maxine Waters (D-CA) introduced the Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025 (Stop TRUMP in Crypto Act) to prevent the President, Vice President, Members of Congress, and their immediate families from owning a proportion of a digital asset that would allow them to unilaterally make changes to the digital asset; serving as an officer, director, or owner of a digital asset issuer; issuing, sponsoring, promoting, or receiving compensation for the sale, marketing, or mining of digital assets; or trading digital assets while in office, if the covered individual has material non-public information about digital assets. (Text)(Press release)

• Sen. Michael Bennet (D-CO) introduced the Stop Trading Assets Benefiting Lawmakers’ Earnings while Governing Exotic and Novel Investments for the United States (STABLE GENIUS) Act to prohibit elected officials and federal candidates from issuing or endorsing digital assets, while also preventing officials from making legislative or policy decisions influenced by the digital assets they hold. (Text)(Press release)

Correspondence

• Reps. Adam Smith (D-WA) and Sean Casten (D-IL) led 35 House Democrats in a letter to the Department of Justice demanding DOJ launch an investigation into whether President Donald Trump’s private dinner for top $TRUMP investors violates federal bribery laws or the foreign emoluments clause of the Constitution. (Letter)(Press release)

• Sens. Elizabeth Warren (D-MA) and Jack Reed (D-RI) sent a letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi requesting information on efforts to combat cyber-attacks by ransomware groups based in North Korea. (Letter)(Press release)

Trump Administration

Department of Treasury

• The Financial Crimes Enforcement Network (FinCEN) published in the Federal Register a 60-day notice seeking public comment on existing regulatory requirements and burden estimates regarding existing regulations requiring specified U.S. financial institutions to file reports with FinCEN of certain transactions with designated foreign financial agencies (FFAs). The comment period ends July 22, 2025. (Notice)

• Treasury hosted a series of closed-door roundtables on stablecoins, decentralized finance, banking relationships, and cybersecurity. (Crypto in America)

Securities and Exchange Commission (SEC)

• The Task Force will hold its next roundtable DeFi (Decentralized Finance) and the American Spirit on June 9.

Government Accountability Office (GAO)

• GAO published Recommendations for Congress: Action Can Produce Tens of Billions of Dollars in Future Financial and Other Benefits,highlighting recommendations for Congress that remain unresolved, including from their report Blockchain in Finance: Legislative and Regulatory Actions Are Needed to Ensure Comprehensive Oversight of Crypto Assets:
  • “Congress should consider legislation that designates a federal regulator to provide for comprehensive regulatory oversight of spot markets for nonsecurity crypto assets, including requirements intended to protect investors from fraud and market manipulation and to promote market integrity.”
  • “Congress should consider legislation providing for consistent and comprehensive oversight of stablecoin arrangements. Such legislation might include provisions identifying which institutions are eligible to issue such stablecoins; establishing minimum requirements for the composition of reserve assets and requirements for regular audits of and public disclosures of reserve assets and audit results; establishing prudential standards; and establishing redemption rights.” (Report)

• GAO sent a letter to SEC Chair Paul Atkins and issued a report highlighting one priority open recommendation before the SEC that “warrants [Atkins’] timely and focused attention. Specifically: Blockchain technology. In 2023, we found that financial regulators lacked an ongoing coordination mechanism for addressing blockchain risks in a timely manner. For example, regulators identified financial stability risks posed by stablecoins in 2019 but did not identify the need for action to address these risks until November 2021. We recommended that SEC and the other federal financial regulators jointly establish or adapt an existing formal coordination mechanism to identify and address risks posed by blockchain-related products and services. Such a mechanism would help SEC and the other regulators collectively identify risks and develop and implement a regulatory response in a timely manner.” (Report)

Commodity Futures Trading Commission (CFTC)

• CFTC Commissioner Kristin Johnson announced she would step down from the CFTC later this year. (Remarks)

Noteworthy Quotes and Events

ADMINISTRATION

White House

• White House AI and Crypto Czar David Sacks tweeted, “Amazing job by SenatorHagerty to win over 60 votes for cloture on the GENIUS Act. This legislation creates a legal framework for stablecoins — a big win for crypto. Now it moves to a full floor vote. Thank you also to LeaderJohnThune, SenatorTimScott, SenLummis, SenGillibrand”

• Bo Hines, Executive Director of the President’s Council of Advisors on Digital Assets, tweeted, “Under President Trump, we will ensure that the United States persists as the crypto capital and Bitcoin superpower of the world. This is just the beginning”

Treasury Department

• Treasury Secretary Scott Bessent tweeted, “The Trump Administration is going big on digital assets. Why? Because the previous administration nearly destroyed the industry with its anti-innovation agenda and regulation-by-enforcement approach. No more. Digital asset companies deserve regulatory clarity—and that’s exactly what we are working toward. Passing the stablecoin bill is just the start.”

Securities and Exchange Commission (SEC)

• In remarks at SEC Speaks, Chair Paul Atkins said, “It is a new day at the SEC. While I have directed Commission staff across our policy Divisions to begin drafting rule proposals related to crypto, the staff continue to “clear the brush” through staff-level statements. For example, last week the staff of the Division of Trading and Markets issued a set of FAQs that addressed broker-dealer and transfer agent questions. While the views of the staff are not rules or regulations of the Commission, they can provide useful insights for the public. Ultimately, the Commission is, of course, responsible and must itself squarely address these issues to ensure that the public has clear rules of the road. Last, as I mentioned at a recent Crypto Task Force roundtable, I would like the Commission to allow SEC registrants to custody and trade both securities and non-securities under one roof. Enabling this reality could reduce costs for investors while allowing non-security trading to enter a regulated environment at the federal level expeditiously. This would be an initial step towards the possibility of eventually achieving a ‘super-app’ reality. (Remarks)

• Commissioner Hester Peirce delivered remarks at SEC Speaks, saying, “Forthcoming rulemaking by the Commission and legislation from Congress should continue to provide clarity about which crypto assets are securities. But, as highlighted in the discussion at last week’s roundtable on tokenization, many crypto assets are likely to fall clearly within the “security” definition; traditional securities in tokenized form are still securities. Among other market developments I anticipate is interest in trading tokenized securities alongside non-security crypto assets. Nothing in the federal securities laws or regulations currently restricts broker-dealers with an alternative trading system from offering trading in non-securities alongside securities, but further clarification from the Commission staff on this topic may be helpful to market participants as well. Additional authority from Congress to regulate both sides of these pairs trades could be helpful. I do not know whether blockchain will revolutionize the way our securities markets operate as some people suggest, but we stand ready to work with the public as we have done in the past to incorporate new technologies into our markets.” (Remarks)

• In his remarks, Commissioner Mark Uyeda said, “Since January, the Commission has undergone a major course-correction. Instead of tackling various perceived social ills through financial regulatory tools, the SEC has returned to its core mission of regulating the capital markets. One specific instruction has been to make clear to the SEC staff that they have full authorization to meaningfully engage with market participants. The quality of regulation is vastly improved when the Commission engages with the public—especially when it comes to new technologies and services. Regulators should be constantly seeking out informational inputs rather than reflexively rejecting them. Only by doing so can regulators identify areas of improvement, whether they relate to strengthening investment safeguards, constructing a practical crypto regulation framework, improving access to private investments, or reducing barriers for companies pursuing initial public offerings (IPOs).” (Remarks)

• Commissioner Caroline Crenshaw said, “In the past four months, we’ve used guidance to walk away from rules and upend longstanding practice. Recently, there has been a wave of staff guidance on meme coins, on crypto mining, on investment adviser marketing, on the engagement with management for purposes of Schedules 13D and 13G; and on verification requirements for accredited investors. We have further changed the rules of the road for proxy proposals (issued midway through the proxy season); and effectively amended recently adopted rules on conflicts of interest in securitized transactions. In particular, our statements on these crypto-related issues are the equivalent of a wink and nod intended to convey that we do not plan to rigorously apply our laws in certain, specific situations. For example, the statements pull at the threads of our most foundational case law while meekly suggesting – in footnotes – that we still might do the required facts and circumstances analysis in each case. We take this slipshod approach to stablecoins as well, which have shown their capability of posing systemic risk to our traditional financial system. We’ve done all of the above without Commission vote; without the benefit of analysis from our economists; and, without fulsome opportunity for public comment. I am concerned that staff guidance is not the correct vehicle for declarations of this magnitude, and we need to carefully analyze suggestions that we ought to create some alternative, presumably lesser, regime to accommodate industry and promised innovation.” (Remarks)

CONGRESS

GENIUS Act

• Senate Majority Leader John Thune (R-SD) delivered remarks on the Senate floor, saying, “Mr. President, this evening, we’re going to once again vote to begin consideration of the GENIUS Act. And I’m hoping that the second time will be the charm. We were here 11 days ago, Mr. President, in the same place, when Democrats inexplicably chose to block this legislation. The question is: Why? Well, that’s a good question, Mr. President. Stablecoin regulation is a bipartisan issue. This bill reflects the bipartisan consensus on this issue. And it’s had an open and bipartisan process since the very beginning – what we used to around here call regular order. In March, the Banking Committee marked up the bill text, considering 40 amendments. And the bill ultimately passed out of the committee by a vote of 18 to 6, with support from five Democrats. And since then, both Republican and Democrat members have worked to advance this legislation. That is, until a week and a half ago, when Democrats suddenly decided to block it just as we were getting ready to have a debate on the floor. Mr. President, the bill brought up a week and a half ago is the exact same bill that Democrats apparently now are willing to move forward on. And then, as now, Republicans were committed to a full debate on the floor – with the chance for further bipartisan amendment to the already bipartisan piece of legislation. So it’s really hard to understand why we needed to wait an additional 11 days for Democrats to finally agree to move. I’m not sure if Democrats wanted to deny Republicans – and President Trump – a bipartisan legislative victory, and then, perhaps, thought better of their obstruction, or what. But at least we finally seem to be here, Mr. President, ready to take up this bill. Because this is important legislation. The use of cryptocurrency has exploded from the margins to the mainstream, and stablecoins have emerged as a key part of the crypto ecosystem. They offer the speed and security of the blockchain with the stability and usability of the dollar bill. And they provide a business- and consumer-friendly way to make payments. But stablecoin issuers and users face challenges. In the United States, stablecoins have operated in a legal gray zone. There are no clear rules of the road to follow. And between that and the Biden administration’s targeting crypto companies with numerous lawsuits, many U.S.-based crypto companies have contemplated moving overseas – not something we want to see if we want the United States to remain at the forefront of financial innovation. Fortunately, the GENIUS Act addresses these problems by providing a clear regulatory framework for stablecoins – a framework that will protect consumers and our national security while helping to keep the United States at the forefront of financial innovation. The bill will also create demand for the U.S. dollar and U.S. treasuries – a good thing for both our national security and our fiscal house. So this is an important bill, Mr. President. And I’m glad that it looks like we are finally going to be able to take it up. And I hope that in the future, we will be able to take up bipartisan legislation without these unnecessary delays. I want to again thank my colleagues – from both parties – for their work on this bill. Senators Hagerty, Lummis, and Tim Scott have worked tirelessly with Senators Gillibrand and Alsobrooks and their members. And they all deserve a ton of credit for listening to their respective sides of the aisle. So, Mr. President, I look forward to beginning the floor debate later today.” (Remarks)

• Thune tweeted, “Stablecoin regulation is a bipartisan issue, and the GENIUS Act reflects bipartisan consensus. Thanks to SenatorHagerty, SenLummis, and SenatorTimScott, in particular, for keeping the ball rolling on this issue. I hope that in the future we will be able to take up bipartisan legislation without Democrats creating these unnecessary delays.”

• Sen. Bill Hagerty (R-TN) tweeted, “Tonight, the Senate moved forward on the GENIUS Act. This groundbreaking, bipartisan legislation will bring America’s payment system into the 21st century. The GENIUS Act skyrockets the United States with a digital payment framework with the fastest rails possible. It will ensure U.S. dollar dominance. Customers will be protected, the demand for U.S. treasuries will balloon to the tune of more than $1 trillion, and innovation in the digital asset space will thrive in the United States going forward. I look forward to making history with my colleagues this week.”

• Hagerty also tweeted, “Tonight’s vote is a historic opportunity to move toward passing the first major piece of digital asset legislation into law. It is an essential first step that will protect consumers, keep America at the forefront of technological innovation, and further solidify the dominance of the U.S. dollar.”

• Hagerty spoke on BloombergTV about opposition to the GENIUS Act, “[Senator Elizabeth Warren is] absolutely wrong. And what she’s doing is using a political argument to stir up controversy because she’s been focused on the Central Bank Digital Currency by its nature. This is decentralized. She’s been opposed to this from the beginning. She fought this in the Banking Committee, and after close to four hours of debate in the Banking Committee, she was able to hold four Democrats on her side. But five came over with me and voted for us to put this out of the committee. I see a lot of Democrats that see the benefit of this. And if you think about where we are today, the United States is relying on a payment system that was designed in the seventies and eighties. This is an opportunity to modernize our payment system, take us into the 21st century. We trade securities on an instantaneous basis. This would allow us to move currencies and payments at the same rate. It would be based on the U.S. dollar that will extend dollar dominance around the world. It will actually stimulate demand for U.S. treasuries, which given where we are right now, would be a very positive thing in the marketplace. It’s going to protect consumers. These ethics concerns that Senator Warren is raising are dealt with in the Constitution. I think this is just a red herring. It’s a distraction; she needs to focus on the core of this. And the fact is, I think she just doesn’t like the decentralized nature of it, which is exactly why it’s so powerful, and that’s why so many in the American public want to see this happen and bring the United States payment system into the 21st century.” (Press release)

• Hagerty spoke on BloombergTV about potential amendments to the GENIUS Act, “This is a major piece of legislation that’s moving onto the floor. We have a large number of amendments to sort through, and my goal is to make certain that the stablecoin legislation passes and that we avoid a situation where it gets cluttered up or bogged down with a number of amendments that could be unrelated to this. So, we’re going through the process right now to evaluate all of this. Again, we probably have well over a hundred amendments to evaluate, but we will narrow this down and get through it. And I’m appreciative of the fact that Leader [John] Thune is navigating an open process here that’s going to bring us, I hope, to a very successful resolution. But we have had months to work on this bill. We’ve incorporated input from both sides of the aisle and a lot of input from the industry and from the Executive Branch. I feel very good about where we are. We’ve got a great work product right now, and I think we’re very close to seeing it come to final closure.” (Press release)

• Sen. Cynthia Lummis (R-WY) tweeted, “Stablecoins aren’t the future, they’re the present. Digital assets can facilitate payments 365 days of the year, without the extra costs. The GENIUS Act is a game-changer for everyone, from small businesses in Cheyenne, to major companies in New York City.”

• Lummis also tweeted, “Wyoming paved the way for digital asset legislation so America could lead the world. Let’s pass the GENIUS Act and secure our financial future.”

• Lummis also tweeted, “America must lead in digital assets.”

• Lummis also tweeted, “Thank you to LeaderJohnThune, SenatorTimScott, and SenatorHagerty for recognizing America needs to lead in digital assets. Now let’s get GENIUS across the finish line.”

• Lummis also tweeted, “GENIUS establishes America as the leader in digital assets.”

• Sen. Dick Durbin (D-IL) tweeted, “Congress must crack down on crypto ATM scams. My amendment to the GENIUS Act would do just that by providing commonsense guardrails to stop scammers in their tracks and protect hardworking Americans & their life savings.”

• Durbin also tweeted, “I have officially filed my amendment to the GENIUS Act to help prevent scammers from stealing Americans’ savings through crypto ATM schemes. These scams have harmed thousands of Americans & cheated them out of their life savings. Enough is enough. I urge my colleagues to support my amendment.”

• Sen. Chris Murphy (D-CT) tweeted, “The Senate has a chance – right now – to shut down Trump’s biggest crypto coin corruption. The pending bill in the Senate regulates a kind of crypto called ‘stablecoin’, but exempts the President from the ethics rules. We shouldn’t pass that bill unless that loophole is closed.”

• Sen. Elizabeth Warren (D-MA) tweeted, “I’m on the Senate floor right now urging my colleagues to vote no on the GENIUS Act. There is no excuse for Congress to pass a crypto bill that will turbocharge Trump’s corruption.”

• Warren said in floor remarks, “Congress should not choose to enable the President’s egregious corruption. Congress should not fuel the next financial crash. Congress should not put consumers at risk for fraud or make it easier to fund terrorist activity. It doesn’t have to be this way. A bill that meaningfully strengthens oversight of the stablecoin market is worth enacting. A bill that turbocharges the stablecoin market, while facilitating the President’s corruption and undermining national security, financial stability, and consumer protection is worse than no bill at all. For these reasons, I urge my colleagues to vote NO on the GENIUS Act.” (Press release)

• Sen. Ruben Gallego (D-AZ) said in a statement, “This evening, I will vote to advance consideration of the GENIUS Act. After weeks of negotiations, we are headed in a direction that addresses many of the concerns my colleagues and I have raised both in committee and with our Republican colleagues. With this vote, I look forward to continuing to work with my colleagues to achieve a final bill that protects consumers and ensures America remains a leader in digital asset innovation.” (Statement)

• Sen. Andy Kim (D-NJ) said in a statement, “While I support innovation and growth in blockchain and crypto, we have to do so in a way that stops terrorist groups, cartels, and rogue states like Iran and North Korea from using this tech to move and hide billions of dollars. I voted yes in committee on this legislation last month with the hope that we could put in the necessary anti-money laundering provisions. I am still in negotiations with my colleagues on that language and hope we can come to agreement.” (Statement)

• Sen. Lisa Blunt Rochester (D-DE) said in a statement, “Last night, I voted to advance the GENIUS Act with the hope that we could make more progress toward improving the bill. While good-faith bipartisan negotiations addressed some of my serious concerns, it does not include all of the necessary changes to protect consumers, protect the stability of the financial system, and prevent fraud and criminal enterprises from using stablecoins. I also believe this legislation still falls short of addressing the clear and obvious potential for corruption and grift by the President and his family. Make no mistake: my vote yesterday represents my willingness to continue negotiating with my Republican colleagues and I’m hopeful that we can engage in a robust floor amendment process. While I am supportive of innovative technology in our financial system, I believe the bill simply must do more to protect underbanked and financially vulnerable Americans from being targeted by deceptive marketing schemes. Additionally, this bill must close loopholes that allow companies affiliated with stablecoin issuers to offer financial incentives that look like interest, without being held to the same protective standard as banks. I’m also interested in seeing stronger language around anti-money laundering protections to ensure foreign or loosely regulated issuers cannot be used by terrorists and criminal organizations to move money around. Finally, I remain seriously concerned about the financial conflicts of interest in the Trump family. Considering President Trump’s most recent bout of self-dealing, we should enact provisions that disallow the President, Vice President, and their immediate families from benefitting financially from any stablecoin or digital asset issuer regulated under the legislation. There is no denying that currently, the stablecoin market is an underregulated landscape with inadequate protections for consumers and could be a breeding ground for bad actors and market instability. Stablecoins are likely to be a growing part of the financial landscape of the 21st century, so it is crucial that Congress gets this right. The GENIUS Act must be improved to receive my support.” (Statement)

• Sen. Adam Schiff (D-CA) said in a statement, “As a leader in innovation, California has been at the forefront of new developments in technology ranging from artificial intelligence to cryptocurrency to blockchain technology. For innovation to thrive, we need clear rules of the road and a fair playing field. Businesses and the fintech industry need regulatory clarity. Californians need strong consumer protections. Regulators and law enforcement need tools and guardrails to crack down on bad actors and illicit financing. And we must ensure that these companies — and the jobs they create — stay and grow here at home, particularly in California. For the past few weeks, I’ve worked with both Democrats and Republicans to improve the GENIUS Act which represents a major step towards establishing a comprehensive regulatory framework for stablecoins, something that has been needed for far too long. I want to particularly thank Senators Warner, Gallego, Gillibrand and Alsobrooks for their leadership. While the final version of this bill is not perfect, I will be voting in favor of this bill because I believe it lays out important groundwork to define the rules governing this industry. And I believe we can’t wait any longer to establish a regulatory structure to protect consumers. But let me be clear: the work to improve the rules governing this industry must continue. I remain deeply disappointed that Republicans would not allow necessary reforms to govern how politicians can use these and other digital assets for their own personal profit. To that end, there is much work to do to enact strong rules to resolve ethics and conflicts of interests so President Donald Trump and other government officials can’t use loopholes for their own personal financial enrichment. I will remain committed to continue working with my colleagues to strengthen these rules, improve consumer protection, and ensure these jobs stay in our country.” (Statement)

• Sen. Mark Warner (D-VA) said in a statement, “The stablecoin market has reached nearly $250 billion and the U.S. can’t afford to keep standing on the sidelines. We need clear rules of the road to protect consumers, defend national security, and support responsible innovation. The GENIUS Act is a meaningful step forward. It sets high standards for issuers, limits big tech overreach, and creates a safer, more transparent framework for digital assets. It’s not perfect, but it’s far better than the status quo. Many senators, myself included, have very real concerns about the Trump family’s use of crypto technologies to evade oversight, hide shady financial dealings, and personally profit at the expense of everyday Americans. We have a duty to shine a light on these abuses and stop Donald Trump from exploiting emerging technologies to enrich himself, dodge accountability, and weaken the safeguards that protect American consumers and the rule of law. But we cannot allow that corruption to blind us to the broader reality: blockchain technology is here to stay. If American lawmakers don’t shape it, others will – and not in ways that serve our interests or democratic values. Innovation in this space is happening, with or without us. We have a responsibility to ensure it happens safely, transparently, and in a way that advances U.S. economic and national security interests. The GENIUS Act will help get us started.” (Statement)

Trump Digital Assets

• In a Senate Foreign Relations Committee hearing on President Trump’s fiscal year 2026 budget request for the U.S. Department of State, Sen. Chris Murphy (D-CT) questioned Secretary of State Marco Rubio on digital assets-related issues:
  • Murphy: “UAE did announce a massive investment in World Liberty Financial, and World Liberty Financial is controlled by the President. And the President does actively engage in these businesses. He uses his social media to market the businesses that are being run by his family. I mean, just go on to his social media feed and you will see him marketing his meme coin. That is the President of the United States, that is not his sons doing it.”
  • Rubio: “But just to be clear, that was not an announcement as part of this trade visit that was conducted into the Middle East.”
  • Murphy: “Well, whether or not it was made during the time the President was there, there are obviously business deals being done between Trump entities and these countries…Murphy: “Let me ask you about the dinner that’s happening this Thursday night. The President has offered access to him to the 200 top purchasers of his meme coin. Reports are that maybe about half or more of those individuals, who will be meeting with him, many in a VIP reception, are foreigners. Do you have a list of those foreign individuals who will be meeting with the President?”
  • Rubio: “I don’t. I don’t know anything about it. I didn’t even know there was a dinner on Thursday night, so I’m not sure what you’re referring to.”
  • Murphy: “So you don’t know whether any of the foreign individuals who are going to be meeting with the President this Thursday night, for instance, are on our list of sanctioned individuals, or whether any of those individuals have connections to, let’s say, terrorist organizations abroad?”
  • Rubio: “Well I think if they had terrorist links the Department of Homeland Security probably would not have allowed them into the country. But, again, I don’t even know there is a dinner on Thursday. You’re asking me about something I don’t know about.”
  • Murphy: “Listen, this is a dinner that the President is having. It is likely going to involve some very significant foreign interests. You have to be pretty wealthy in order to be able to get inside this dinner. Isn’t that a relevant question for the Secretary of State–
  • Rubio: “I’m not the Social Secretary.”
  • Murphy: “–which foreign interests are going to be speaking to the President?”
  • Rubio: “No.”
  • Murphy: “I mean, it’s kind of naive to believe they aren’t going to be in that room talking about national security matters.”
  • Rubio: “I don’t think that that’s the case at all, because I would be aware if it was the case. The truth of the matter is I interact with government officials and others in governments of other countries. You’re asking about a dinner I don’t know anything about. I can’t answer you because I don’t know anything about this dinner. It’s the first I heard of it. Like I said, I don’t keep the President’s social schedule. It’s not on my phone. It’s not in my pocket. I can’t comment on a dinner I know nothing about.”
  • Murphy: “I think that represents a real problem for this Committee, because there is clearly a way around the State Department for foreign individuals of significant influence and wealth, to be able to directly lobby the President of the United States. And so if your answer is that you don’t know this is happening, that in and of itself is a problem.”
  • Rubio: “I don’t think that’s fair. I don’t know that there’s a dinner, and I don’t know what the guest list is, but I can tell you I’ve run into the President of FIFA from the World Cup. He’s here all the time. I see him. He’s a private individual, it’s not a government entity, and he’s met with the President and is friendly with the President. He doesn’t have to go through me to meet with the President. The President has relationships and friends and people he’s known for a long time. Some of them are foreigners. That’s not unusual. But you’re asking me about a specific dinner and implying nefarious impact. I can’t comment on a dinner.” (Press release)

• Murphy also tweeted, “He’s tweeting out advertisements for his crypto coin on his personal account!!!Not blind!!”

• Senate Minority Leader Chuck Schumer (D-NY) tweeted, “It’s pretty rich for Donald Trump to tell retailers that they have to ‘eat the tariffs’ Meanwhile he’s accepting luxury planes and crypto deals in the Middle East Donald Trump does more to help himself than to help America”

• Rep. Sam Liccardo (D-CA) tweeted, “I introduced the MEME Act because we need a clear line. Federal officials shouldn’t be issuing digital assets. Period.”

• Rep. Greg Cesar (D-TX) tweeted, “Last night, Trump met with people who paid him millions of dollars via his crypto scheme. Several said that they ‘attended the event with the explicit intent of influencing Mr. Trump and U.S. financial regulations.’ When the president auctions his time to the highest bidder, the wealthy win and working people get left behind.”

• Rep. Frank Pallone (D-NJ) tweeted, “Call me crazy but the guy selling his own crypto from the Resolute Desk might not be the best judge of improper financial dealings.”

• Sen. Jeff Merkley (D-OR) tweeted, “I was outside Trump’s Crypto Corruption Club to send a clear message: elected officials can’t be allowed to engage in crypto schemes! We need to pass my End Crypto Corruption Act!”

• Merkley also tweeted, “Trump’s crypto coin sounds like a Trump crypto con! I’m fighting back against this blatant corruption.”

• Sen. Richard Blumenthal (D-CT) tweeted, “Last night I joined CNN to discuss Trump’s corrupt crypto dinner & the Administration’s unlawful decision to bar Harvard from enrolling international students—creating fear & anxiety & threatening academic independence.”

• Blumenthal also tweeted, “Tonight, Trump is hosting an exclusive dinner for the top holders of his meme coin—opening the door for individuals that are competing to line his pockets to buy access to the President. Here are some of those individuals: Justin Sun, Tron founder & HTX advisor, dropped $75M into World Liberty Financial & holds over $18M in $TRUMP, making him the guest of honor. All while Trump’s SEC pauses its probe into Sun’s fraud allegations. ‘Ice’ is a pseudonym for a co-founder of the Singapore-based company MemeCore. MemeCore’s chief business developer said in an interview that ‘Ice’ hopes to shape Trump’s views on the crypto industry—presumably to his own advantage & gain. Sheldon Xia is the founder of BitMart, a crypto exchange registered in the Cayman Islands. Xia posted on X celebrating his spot on tonight’s guest list, saying he was proud to support Trump’s pro-crypto vision. A crypto investor known as ‘Ogle’ has worked as an advisor for Trump’s crypto venture World Liberty Financial—a company I have launched a PSI inquiry into following reporting that the firm may be enabling the violation of government ethics requirements. Foreign governments & shady figures have figured out how to get to Trump: through his wallet. As he auctions off access to himself & his office, Trump becomes beholden to foreign power through private benefits—all while selling out the American public.”

• Blumenthal also tweeted, “Trump’s corrupt schemes put a ‘For Sale’ sign on the White House, including his dinner tonight with the biggest investors in his crypto coin. I sought votes on four of his self enrichment ploys, but Republicans blocked it.”

• Blumenthal also tweeted, “Trump’s crypto dinner is a pay-to-play scheme to provide access to the Presidency to the highest bidder—even if the highest bidder happens to be a foreign national who was sued by the SEC for fraud.”

• Blumenthal also tweeted, “If ever a ‘pump & dump’ scheme or insider trading scandal warranted investigation, this one would be it. Americans deserve to know about Trump’s crypto currency buyers— because they’re a powerful potential threat to national security. Many are foreign investors, possibly with ties to China & other adversaries. Trump has put Presidential access & influence on the auction block. A President beholden to foreign interests is exactly what the Founders feared most when they barred any payment or benefit to any federal officer— it’s the Constitution’s emoluments clause. On the Senate floor Wednesday I asked for a vote. Republicans blocked it. More smaller buyers of Trump’s meme coins will now lose millions, joining ten of thousands of others. They trusted Trump—proving again, Buyer Beware. I’ll continue my investigation, demanding facts about the biggest, most blatant, brazen corruption in our nation’s history— but don’t expect even a hint of investigative interest from federal law enforcement leaders, who are totally under Trump’s thumb. Among my demands, lists of everyone who attended & other details about Thursday night’s crypto bash. Republicans are complicit in Trump’s ongoing grossly illegal emoluments. Qatar’s $400 million plane gift, UAE’s $2 billion investment in his World Liberty Financial venture, other countries’ support for real estate deals—& more. All add to the meme coin corruption, funneling money into his pockets.”

• House Judiciary Dems tweeted, “Welcome to Trump’s Gangster State Dinner with a Pay-to-Play Buffet! Tonight 220 lucky crypto buyers who’ve paid roughly $1M each for a $TRUMP meme coin now enjoy a private, closed-door all-you-can-cheat dinner with Trump the Plunderer-in-Chief. One guest already got Trump’s SEC to drop his criminal fraud investigation! What will others get in exchange for their lavish payments to the President and and his family?   It’s so glaring even Tucker Carlson is calling out Trump’s corruption.”

• Sen. Michael Bennet (D-CO) tweeted, “Today, I introduced the STABLE GENIUS Act to ban federal officeholders and candidates from profiting off digital assets like crypto. We have seen rampant corruption in the highest levels of government that can no longer go unchecked.”

• Bennet also tweeted, “Tonight, Trump is hosting over 200 anonymous crypto investors to thank them for their nearly $400M investment in his personal memecoin. This type of corruption is offensive to the American people. It’s why I introduced the STABLE GENIUS Act, to restore Americans’ trust in our political institutions by ensuring that no federal official can profit from their position of power.”

• Rep. Nydia Velazquez (D-NY) tweeted, “A sitting president launching a crypto coin, pocketing millions, & giving top buyers private access is pure corruption. No president should be allowed to run a pump-and-dump operation from the White House. I’m proud to co-sponsor this bill to create needed guardrails.”

• House Financial Services Democrats tweeted, “RM RepMaxineWaters & Cmte Democrats introduce H.R. 3573, the ‘Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025,’ landmark legislation that will put an end to Trump’s crypto corruption & protect America’s investors.”

• Sen. Elizabeth Warren (D-MA) tweeted, “Americans didn’t send us to Congress to help Trump turn the White House into a crypto cash machine. We can’t look the other way when the President hosts a private dinner for his top meme coin buyers—or pass crypto bills like the GENIUS Act that would further line his pockets.”

• Rep. Sean Casten (D-IL) tweeted, “President Trump auctioned off a private dinner with him to the top buyers of his cryptocurrency token, dozens of which are foreign nationals. I’m demanding that the Department of Justice investigate whether this dinner violates federal bribery laws or the emoluments clause of the Constitution.”

• Rep. Bonnie Watson Coleman (D-NJ) tweeted, “Tonight, Trump is hosting a private dinner exclusively for the biggest buyers of his personal crypto coin. It’s pay to play, plain and simple. I proudly signed onto RepCasten’s letter demanding an investigation into this brazen display of naked corruption.”

• Rep. Veronica Escobar (D-TX) tweeted, “Crypto bros who paid almost $150 million to go to Trump’s dinner said that they “attended the event with the explicit intent of influencing Mr. Trump and U.S. financial regulations.” The White House is for sale and people know it.”

House Appropriations Committee Financial Services and General Government Subcommittee hearing on SEC Oversight

• In his opening statement, Chair David Joyce (R-OH) said, “I’m glad to see the commission has already taken steps to rollback some of these regulations that would have made American companies less competitive in an ever changing global economy. In addition, advancements in blockchain technologies and digital assets also present an incredible opportunity for American entrepreneurs, businesses and our economy. We don’t take the lead in making the United States a hub for digital asset innovation, our global competitors will markets thrive the most when they can rely on regulatory fairness and certainty. regulation by enforcement is not just unfair, it is counterproductive. It also ignores Congress and the legal limits of places on regulatory bodies. As lawmakers continue bipartisan conversations around the market structure frameworks and digital assets more broadly, the SEC and other regulators should work to provide as much clarity to market participants as soon as possible. To that end, the newly created crypto taskforce at the SEC has provided a forum for regulators, innovators and market participants to collaborate and provide recommendations on the regulatory framework for the digital asset ecosystem. I’m looking forward to hearing more about the taskforce progress so far as and how we appropriators can support their continued work.”

• During the hearing, several members asked SEC Chair Paul Atkins about digital assets:
• Chair Dave Joyce (R-OH): “You said that one of your top priorities is develop a rational regulatory framework for crypto asset markets, that establishes clear rules of the road? What does the regulatory framework look like to you? And what type of clarity is needed for market participants?”
  • Paul Atkins: “Well, that’s a very good question. And I could answer take a long time to do it. Well, suffice to say that, you know, the I think the problem is right now that there’s a lot of uncertainty in the marketplace as to what’s the security, what’s not. And so that affects innovation. And so it goes beyond crypto assets, it goes to the blockchain and the potential ramifications of for efficiency and safety in the marketplace is that blockchain distributed ledger technology can do. But if lawyers cannot even write opinions for their clients as to, you know, what’s the security and what’s not, which is, you know, the situation right now, that just inhibits everything, because capital doesn’t flow, the words might be needed and be, you know, soundly fostered for capital formation and new products. It’s just inhibited. It’s everything. So that’s what I mean, by trying to get, you know, a rational framework, I think we have the authority at the SEC, under the various securities acts, and I intend to work with Congress. And with my colleagues in that vein, thank you.“
• Rep. Dave Joyce (R-OH): “What tools did the SEC currently have to develop a regulatory framework for digital assets? And what additional resources do you believe might be needed from this Committee?”
  • Paul Atkins: “Well, we have the biggest tool, we have a lot of good smart folks at the SEC, and many of the offices and divisions. And so that’s, you know, we’ll definitely use that number one resource will also be through roundtables. And as I mentioned, as we do concept releases, and proposals, we’ll be taking comments from those outside of the SEC. So those are the main tools the Exchange Act and the Securities Act. And the 240 gives us a pretty broad exemptive authority and authority within the public interest to make changes to our forms and to accommodate this new technology, which the SEC has done in the past, not for crypto, but for other aspects.”

• Rep. Sanford Bishop (D-GA): “Thank you I’ve watched with interest was Chairman the evolving lamps landscape of cryptocurrency. And I understand that you’re interested in loosening restrictions on crypto and the exchanges through the rulemaking process. What do you see as SEC’s role in regulating cryptocurrency? And what aspects of cryptocurrency do you think are the most important to address the cut down on the prevalence of fraud and what are effectively useless and valueless coins?”
  • Paul Atkins: “Well, I share your concern about fraud in any market and but, you know, we have a lot of fraud in the traditional financial markets as well. And I think in many respects, you know, on the digital asset side, and the blockchain side, it’s there’s more transparency frankly, than, for example, over cash and other sorts of things. So, so that’s one important thing. Innovation is another that, you know, we need to foster. But the real rub right now is that there really are no rules that are tailored for this. This part of the market, which has grown and burgeoned and if we don’t have firm rules that invites fraud because investors can’t tell the wheat from the chaff as things go so what I think we have to have is firm rules that give people direction and lanes to stay in and outlines our jurisdiction as well. And that then we can, you know, take action against fraudsters and others who are trying to scam people. So I share that concern and I want to address it.”

• Rep. Glenn Ivey (D-MD): “So it’s got a separate line for you. And this involves Justin Sun And who was had a case that the SEC brought charges against him in March of 2023. The charges were fraud and other securities law violations. The case moved forward and was continuing to move forward. President Trump was elected in November of 2024. And as you may know, the Trump family has begun meme coin investments of some kind. The WLFI coin in particular, Mr. Sun bought $30 million dollars in that coin on November 25 2024. On January 17 2025, Mr. Trump posts a tweet and launches the Trump coin. That’s the dollar sign with Trump after it all in quotes or caps. Then jet in January 19. Sun bought another 45 million of the WLFI coin. And just so we’re clear, the WLFI piece is sort of, I guess, the umbrella group, and he’s got these other meme coins underneath that Trump, Melania and the like. January 20, which is Inauguration Day, after he’s sworn in, and after he does the parade, he then does a tweet, retweeting the January 17. Post that launches the Trump coin. And on February 26, the FTC filed just a stay is the joint stay motion it was joint between the the plaintiffs and the defendants. But SEC joining this, to stay the cases against Mr. Suns businesses. You assumed office after all of this happened. So that’s April 21. April 23, Mr. Trump Announces a dinner for top investors in the Trump coin. And then WLF, on May one announces a new coin USD1, which the Trump family also benefits from. And this is being used by an Abu Dhabi investment firm for its $2 billion dollar investment in crypto exchange with finance. They’ll skip ahead, I’m running out of time, May 20. Mr. Sun tweets that he’s the top holder in the in the Trump coin. So in the bidding process, he ends up coming out on top. And this I guess this morning, he announced this on Twitter, and then the dinner that they’re going to have with for the highest bidders is two days from now. So from my perspective, you know, these are concerning things, I didn’t really get to the 320 million and trading fees at the Trump family is a crude since he launched these meme coins in January. Along the lines of what Mr. Pocan was asking, because this, frankly, to me, smells very bad. And my hope would be that the SEC would be investigating that piece. But it’s especially problematic here because it’s intertwined, apparently, at least chronologically, with the decision that the SEC made jointly with the defendants to pause that civil case. So I was wondering if you could share any information with us about the status of that decision? And where things are going from your perspective with respect to the SEC.”
  • Paul Atkins: “Okay, well, thank you, Congressman. Well, first of all, I don’t know anything about that case. So I can’t speak to it. And obviously, it’s an active case anyway. But as far as you know, the more general proposition of these meme coins and whatnot, they are collectibles. Before I got to the SEC, the staff of Corporation Finance came out with guidance and basically saying that meme coins are collectibles and not securities.”

• Rep. Marie Gluesenkamp Perez (D-WA): “Just following up on what my colleague Mr. Ivey was saying, So, I heard you say that meme coins are essentially collectibles. So would you would you say it’s the opinion of the SEC that these meme coins are equivalent to like Beanie Babies?”
  • Paul Atkins: “That’s essentially what the Corporation Finance staff came out with this in their guidance back in I believe, January, so and I in so, you know, collectibles come in all sorts of things. I mean, coins are not aimed at being sort of like Bitcoin or something like that. And so people collect all sorts of things. And, you know, it’s, it’s, it’s a new, obviously collectible type of genre, but I, you know, it’s if it doesn’t have the attributes of the securities, as our staff has outlined. So that’s one thing that, you know, I want to explore as we go forward, you know, with respect to trying to carve out, you know, clear, as I talked about clear rules of the road that will help guide this and govern this digital asset space and working with the CFTC, for example, where they might have jurisdiction over digital assets that are commodities and not securities. So it’s this whole welter of, you know, potential rules and uncertainty out there between what people as they try to parse Supreme Court rulings, like the 80 year old, how we test and others that are not really tailored to the 20th century, 21st century. And so we need to think that’s what we can do at the SEC to provide certainty.“

• Rep. Dave Joyce (R-OH): “Chairman Atkins, a crypto taskforce was created earlier this year to provide regulatory clarity and develop potential frameworks to regulate digital assets. Would you describe the taskforce work up to date and the lessons learned, if any, if the task force working with the CFTC? And if not, do you anticipate them working with them in the future?”
  • Paul Atkins: “Oh, well, thank you for that question. So after inauguration, Acting Chairman Uyeda named Commissioner Peirce to be head of that crypto Taskforce, I think she’s, you know, super qualified to do that. And so she’s formed a team and they have gone after this to explore and prepare for, you know, potential rulemaking in this area, and so they’ve done a lot of work. I’m not completely familiar with that just now…So far, I think that’s produced a lot of good testimony from, from people, you know, outside of the building, we definitely will work with the CFTC. And I’m looking forward to Brian Quintenz becoming Chairman if the Senate confirms him. And so I think he’s very qualified for the job. And I’ve known him for a while. So I think we can work really well together. And so it’s good to have the SEC and the CFTC kind of working cheek to jowl with respect to these issues, so that nothing falls through the cracks as far as whatever the framework that we come up with, to make sure that spot market is looked at and the security side and commodity side.”
• Rep. Dave Joyce (R-OH): “Do you plan to create a new division or office within the SEC dedicated specifically to digital assets?”
  • Paul Atkins: “Well, I at this time, no, I think that, you know, digital assets are another part of the financial marketplace. And then so they should fit in, you know, with the current divisions that we have. And that’s one reason when I mentioned about fin hub, you know, this the focus on innovation, and new technologies should be dispersed throughout the agency. So every part of the agency is focused on things. You know, the agency is organized pretty much by statute now, which is is a bit antiquated, because in the old days, brokers were brokers and investment advisors were investment advisors and, and whatnot. Now, there’s a lot of fluidity between that just the way the market has evolved. So when, you know, the questions come up about, you know, potential reorganization, who knows, but I think we I look forward to working with my colleagues, I want to optimize the efficiency and the focus of the agency so we can catch criminals and deal with them and make referrals to the Department of Justice where necessary into the states, and then to have good efficient rules that provide people certainty about how they can run their business and develop new products.”
• Rep. Dave Joyce (R-OH): “In preparation for today. Have you given any thought to what resources would be required to fund the crypto Task Force for 2026?”
  • Paul Atkins: “Not in specifics. So we but you know, we still have 2026 budget is, is under, you know, study and development, I guess that the administration, and so looking forward to working with them and, and discussing, you know, with them what our needs are?”

• Rep. Chuck Edwards (R-NC): “Chairman Atkins, earlier this month, you stated that a key priority of your chairmanship would be to develop a rational regulatory framework for crypto assets. That establishes clear rules the road for the issuance, custody and trading of crypto assets while continuing to discourage those bad actors from violating the law. In order to fulfill that mission. Former Acting Chairman Mark Uyeda established a crypto Task Force on January 21. How much funding will that task force require?”
  • Paul Atkins: “Oh, well, I’m not sure exactly. It’s staffed by current employees and Commissioner Peirce is leading it. I’s not taking any additional funding these people have been, you know, parts of the workforce. Now for a while they’re experienced.”
• Rep. Chuck Edwards (R-NC): “Despite the task force only being assembled a few months ago, in January, have there been any notable findings thus far that you can report?”
  • Paul Atkins: “Well, that’s still under development. They are engaging in roundtables, and we’ve had, I believe, three or so of them so far. And, and so with another couple to come. And then, you know, we’ll be huddling internally to, you know, figure out, you know, steps forward after that, but this is part of an ongoing process. And but I really salute Commissioner Peirce for and her team for, for focusing on this. It’s, it’s way overdue. And I think I think we’ll be able to make progress. And then whatever happens in Congress, you know, that will help undergird what we do, and we’re, you know, ready, willing and able to work with you all.”
• Rep. Chuck Edwards (R-NC): “When do you expect the first report from that taskforce?”
  • Paul Atkins: “I don’t know. I’d have to talk to Commissioner Peirce about that. And but our steps for but you know, we should have be having something I think in the next few months. And with proposed steps forward.”

Miscellaneous

• House Financial Services Chair French Hill (R-AR) tweeted, “My goal is to have legislation for a dollar-backed stablecoin and market structure for digital assets passed that President Trump can sign into law.”

• Rep. William Timmons (R-SC) tweeted, “Bitcoin just hit an ALL-TIME HIGH! President Trump’s pro-crypto, pro-freedom policies are restoring American leadership in the digital economy.”

• Rep. Dan Meuser (R-PA) tweeted, “Today in the FinancialCmte, I spoke in strong support of H.R. 2702—the FIRM Act. It ends the use of ‘reputational risk’ by regulators to de-bank lawful industries like crypto, energy, and firearms. Financial regulation must be fair and free from ideological political bias. RepAndyBarr’s FIRM Act does just that.”

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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