This week in digital assets federal policy, stablecoin legislation stands at a crossroads. Senate Majority Leader John Thune initiated a process to expedite a vote in the Senate on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to create a regulatory framework for payment stablecoins. Over the weekend, a group of Senate Democrats generally supportive of digital assets policy released a joint statement expressing concern with the current bill and indicating they will not vote for cloture without continued bipartisan negotiations. 

Meanwhile, House Financial Services and Agriculture subcommittees will hold a joint hearing to lay the groundwork for digital assets market structure legislation. House Financial Services Chair French Hill predicts market structure legislation will pass the House and Senate this summer.

Democrats continue to call for scrutiny of President Trump’s personal digital assets-related promotions.

Read more below

Congress

Hearings

• On May 6, the House Agriculture Committee Commodity Markets, Digital Assets, and Rural Development Subcommittee and House Financial Services Committee Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee will hold a joint hearing on American Innovation and the Future of Digital Assets: A Blueprint for the 21st Century.

Legislation

• Updated legislative text of the GENIUS Act to create a regulatory framework for stablecoins was made public by Politico. The draft includes new anti-money laundering and consumer protection provisions. (Text)(Politico)

• Sens. Thom Tillis (R-NC) and Chris Coons (D-DE) and Reps. Kevin Kiley (R-CA) and Scott Peters (D-CA) reintroduced the Patent Eligibility Restoration Act to restore patent eligibility, resolve concerns over the patenting of mere ideas, and affirm the principle that the patent system is central to promoting technology-based innovation. The press release on the bill’s introduction says, “…reforms are necessary to restore the United States to a position of global strength and leadership in key areas of technology and innovation, such as medical diagnostics, biotechnology, personalized medicine, artificial intelligence, 5G, and blockchain.” (Text)(Press release)

Correspondence

• Rep. Lance Gooden (R-TX) sent a letter to General Services Administration (GSA) Administrator Stephen Ehikian, calling for the GSA to assess the feasibility of installing cryptocurrency ATMs in federal buildings across the United States. (Text)(Press release)

• Sens. Adam Schiff (D-CA) and Elizabeth Warren (D-MA) sent a letter to the Office of Government Ethics (OGE) requesting an inquiry following President Trump’s announcement that he would hold a private dinner for top investors in his memecoin. (Letter)(Press release)

Trump Administration

Securities and Exchange Commission (SEC)

• The next Crypto Task Force roundtable will be held on May 12 on Tokenization: Moving Assets Onchain: Where Tradfi and DeFi Meet.

Noteworthy Quotes and Events

ADMINISTRATION

Department of Commerce

• In an interview with Bitcoin Magazine, Commerce Secretary Howard Lutnick said, “We’re going to make it so that if you want to mine Bitcoin and you find the right place to do it, you can build your own power plant next to it. You don’t necessarily need to be on the grid, and you are going to see this happen: miners are going to put their data centers on top of gas fields, and then put a plant right next to them so that they won’t be behold to drawing power [from the existing grid]. You’ll see the next generation of miners in America will be able to control their destiny and control the cost of power, [which], I think, is going to turbocharge Bitcoin mining in America.” (Bitcoin Magazine)

• Lutnick also said, “Bitcoin is a commodity, and it should be treated like a commodity. It should be treated like oil. It should be treated like gold. It’s not a currency.” (Bitcoin Magazine)

CONGRESS

GENIUS Act

• Sens. Ruben Gallego (D-AZ), Mark Warner (D-VA), Raphael Warnock (D-GA), Lisa Blunt Rochester (D-DE), Catherine Cortez Masto (D-NV), Andy Kim (D-NJ) Ben Ray Lujan (D-NM), John Hickenlooper (D-CO), and Adam Schiff (D-CA) released a statement expressing concern with the current version of the GENIUS Act, saying, “…the bill as it currently stands still has numerous issues that must be addressed, including adding stronger provisions on anti-money laundering, foreign issuers, national security, preserving the safety and soundness of our financial system, and accountability for those who don’t meet the act’s requirements. While we are eager to continue working with our colleagues to address these issues, we would be unable to vote for cloture should the current version of the bill come to the floor.” (Statement)

• Sen. Bill Hagerty (R-TN) tweeted a response to the Senate Democrats’ statement, “We must advance legislation that enshrines American leadership in the digital asset space and protects the US dollar for centuries to come. That time is now. We have a choice here. Move forward and make any remaining changes needed in a bipartisan way, or show that digital asset and crypto legislation remains a solely Republican issue.”

• Gallego then tweeted, “This isn’t some reversal out of nowhere by Dems. The fact of the matter is, Dems, including me and my team, were trying to negotiate with the Republicans for weeks. The bill that was introduced for floor consideration back-pedaled on a lot of the progress we made and did not include other improvements we sought. It seems they want us to suck it up and vote for this bill without our input. That’s not what we expected during this negotiation and not how I operate. Our statement makes clear we won’t let them jam us. Looking forward to continuing to get this bill to a better place.”

• Senate Banking Chair Tim Scott (R-SC) and Sens. Cynthia Lummis (R-WY) and Bill Hagerty (R-TN) released statements praising Senate Majority Leader Thune on expediting a vote on the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. (Press release)
  • Lummis said, “Our landmark stablecoin legislation is a huge victory for the digital asset industry and a critical step in securing our nation’s financial future. The GENIUS Act strikes the balance of establishing proper guardrails that protect consumers while preserving financial innovation and America’s dollar dominance in the global financial system. President Trump and Leader Thune’s decision to bring this important legislation to the floor demonstrates their commitment to maintaining U.S. leadership in financial services while keeping digital asset companies and jobs onshore. I want to thank Senator Hagerty and Chairman Scott for their leadership on this and look forward to getting this legislation across the finish line.”
  • Scott said, “The GENIUS Act is a critical first step towards delivering on President Trump and the American people’s mandate to advance a regulatory framework for digital assets —and will protect consumers and expand financial inclusion across the country. I look forward to voting for the bill on the floor and the Senate taking historic action to provide the industry with the clarity it deserves.” 
  • Hagerty said, “The GENIUS Act establishes a clear, pro-growth, and secure regulatory framework to modernize our payments system and cement U.S. dollar dominance. I look forward to passing the GENIUS Act in short order to keep digital asset innovation in America, protect customers, and make sure foreign companies are playing by the same rules.” 

• Lummis also tweeted, “Our landmark legislation is a huge victory for the digital assets industry and a critical step in securing our nation’s financial future. I want to thank SenatorHagerty, SenatorTimScott for their leadership & LeaderJohnThune for bringing this important legislation to the floor”

• Hagerty tweeted a quote by Senate Majority Leader John Thune, “‘I look forward to passing the GENIUS Act in short order to keep digital asset innovation in America, protect customers, and make sure foreign companies are playing by the same rules.’”

Trump Administration First 100 Days

• Sen. Cynthia Lummis (R-WY) delivered floor remarks on President Donald Trump’s first 100 days, saying, “After years of the Biden administration’s unbridled hostility toward digital assets and cryptocurrency, President Trump is fulfilling his promise to lead the most pro-digital asset administration in history. And I could not be more proud. We know that we are moving into a digital future, a digital economy. It is something that we should embrace, it’s something that we can include into a new modern 21st century economy.” (Press release)

• Lummis tweeted, “In 100 days, POTUS: Brought accountability and transparency to Operation Chokepoint 2.0; Appointed a crypto czar; Hosted the  first ever White House crypto summit; Established a strategic bitcoin reserve; Declared America will be the crypto capital of the world.”

• Sen. Elizabeth Warren (D-MA) delivered remarks on the Senate floor on One Hundred Days, One Hundred Acts of Corruption, listing various actions in President Donald Trump’s first 100 days, including, “Launched crypto memecoin right before inauguration to make millions of dollars, then increased the value of those coins by signing executive orders making crypto a priority… Launched a meme coin for Melania, too…Appointed Howard Lutnick, who has billions invested in companies accused of illegally facilitating crypto money laundering, to lead the Commerce Department… Tapped Paul Atkins, a former crypto lobbyist, to lead the SEC… Handed power over crypto policy to a White House crypto czar who leads a venture capital firm that heavily invests in crypto… Disbanded DOJ’s crypto unit after business talks between Binance and a Trump-backed crypto company ramped up…Halted SEC enforcement actions against crypto companies that enriched Trump…Met with crypto executives who are asking Treasury to back off of oversight of their companies — all while exploring a deal to list a Trump-linked crypto company’s new stablecoin.” (Press release)

• Sen. Chris Murphy (D-CT) also delivered remarks on the Senate floor on President Trump’s first 100 days, saying, “March 2nd, Trump launches a crypto reserve fund. This is going to involve government taxpayer dollars purchasing and holding a variety of digital assets in a strategic reserve fund –a move that definitely inflates and protects Trump’s investment portfolio, [which], by now, you understand, [is] very heavily dependent on crypto assets. This normally wouldn’t be a problem because normally when somebody takes a high position like president or governor or mayor, they divest from their own personal assets, or they put it all in a blind fund. Trump does none of that. He’s controlling his own assets, his family is controlling their own assets, while he makes policy that benefits himself and his family financially.” (Press release)

• Rep. Jaime Raskin (D-MD) tweeted, “Trump has spent 100 days on get-rich-quick crypto schemes, plunder of the people’s data, pillage of the government, and trade war against the world (except for Russia). He’s slashing Medicaid, Social Security, and Head Start and the federal workforce. It’s a war on the people’s government by billionaire narcissists.”

• Financial Services GOP tweeted, “As we celebrate POTUS’ first 100 days, the Financial Services Committee continues to work toward fulfilling his vision to make America the crypto capital of the world.”

Trump Digital Assets

• Sen. Elizabeth Warren (D-MA) tweeted, “Donald Trump’s latest corruption? A $2 BILLION stablecoin deal with a foreign crypto company that will benefit the Trump family business. And it gets worse — the Senate is getting ready to bless this kind of grift. But it’s not too late to make changes.”

• Sen. Richard Blumenthal (D-CT) tweeted, “Arrogant&avaricious beyond words, crypto corruption in Trump’s aspiring autocracy cries out for Congressional investigation. The public needs to know how Trump&his sycophants are brazenly, blatantly exploiting power&self-enriching. Trump’s DOJ, SEC can’t be counted on to stop it. No ordinary entrepreneur would even dream of this kind of crypto deal. Crypto may seem complex&confusing but this catastrophic abuse of power is very simple. It’s undisguised greed.”

• Sen. Chris Murphy (D-CT) tweeted, “Trump’s crypto coin scam is the biggest corruption scandal in the history of the American presidency and we should start treating it that way.”

• Sen. Chris Van Hollen (D-MD) tweeted, “Donald Trump is auctioning off presidential face time to the biggest investors in his personal crypto coin scheme and using the White House for personal profit. Despicable.”

Miscellaneous

• Sen. Bill Hagerty (R-TN) tweeted, “America no longer stifles and regulates the crypto industry. President Trump has allowed digital assets to flourish in our markets.”

• Sen. Cynthia Lummis (R-WY) tweeted, “The Fed shuttered banks that weren’t failing and assassinated them just because they dealt in digital assets. This isn’t the American dream. This is just wrong.”

• Lummis also tweeted, “President Trump is building a stronger financial future. It’s time for America to embrace financial innovation by creating a common sense regulatory framework for digital assets and establish a strategic bitcoin reserve.”

• Lummis told Bitcoin Magazine, “The BITCOIN Act is the only solution to our nation’s $36T debt. I’m grateful for a forward-thinking president who not only recognizes this, but acts on it.” (Bitcoin Magazine)

• House Financial Services Chair French Hill (R-MO) tweeted, “We need the permanence of a legislative solution for a digital asset framework, and that’s what we’re going to deliver in the House and Senate this summer.”

• Rep. Warren Davidson (R-OH) tweeted, “Great thread explaining the Federal Reserve’s crypto announcement. What was seen: end Chokepoint and open banking for crypto. What went unseen: help the biggest banks. They’ve concluded they can’t kill crypto, but they still seek to keep it account-based. Protect self-custody.”

• Davidson also tweeted, “When I say, “Central Bank Digital Currency is the one ring to rule them all.”, or *CBDC corrupts money from its proper role into a tool for surveillance, coercion, and control.” It’s their vision and objective”

• In a House Education and the Workforce Subcommittee Health, Employment, Labor and Pensions Subcommittee hearing on the future of ERISA, Rep. Bobby Scott (D-VA) asked about cryptocurrency:
  • Rep. Bobby Scott (D-VA): “Can you discuss some of the high-fee private equity investments are cryptocurrency investments that have higher fees and ESG funds.”
  • Brandon Rees, Deputy Director for Corporations and Capital Markets, AFL-CIO: “It’s deeply ironic that Republicans would seek to prohibit actively managed ESG funds in retirement plans at the end 401k plans at the exact same time that they’re pushing for expensive, risky private equity investments to be permitted in 401K plans, it’s hypocritical, and it’s not good retirement security policy.”

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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