US Crypto Policy Tracker: Legislative Developments

Digital Asset Market Structure Discussion Draft

On May 5, 2025, House Committee on Financial Services Chairman French Hill; House Committee on Agriculture Chairman G.T. Thompson; House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chair Bryan Steil; and House Committee on Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development Chair Dusty Johnson, released a discussion draft of a bill to establish a regulatory framework for digital assets in the US.

One page summary provided by the sponsors

Section-by-section summary provided by the sponsors

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Financial Innovation and Technology for the 21st Century Act (FIT21) [H.R. 4763]

On May 22, 2024, the House passed H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT21). FIT21 would create a regulatory regime for the digital asset industry apportioning regulatory authority with respect to digital assets between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), and clarifying the respective jurisdictions of the two agencies. The CFTC would be granted plenary authority over spot market digital asset commodities, while the SEC would maintain authority over restricted digital assets (i.e., digital assets that constitute securities)

Read more on Latham's Global Fintech & Digital Assets Blog.

Expressing Support for Blockchain Technology and Digital Assets [H.Res. 111]

The resolution expresses the sense of the US House of Representatives (the House) that blockchain technology offers significant opportunities for innovation, enhances efficiency in various sectors, and can contribute to economic growth. It also encourages a regulatory environment that supports and promotes the development and adoption of blockchain technology in the United States.

Securing Innovation in Financial Regulation Act [H.R. 9633]

This discussion draft establishes the SEC Strategic Hub for Innovation and Financial Technology (FinHub). This will assist the agency with its approach to technology and coordinate the SEC’s response to emerging technologies in financial, regulatory, and supervisory systems. The draft also establishes LabCFTC in the CFTC, which will serve as an information source for the CFTC on FinTech innovation.

Bridging Regulation and Innovation for Digital Global and Electronic (BRIDGE) Digital Assets Act [H.R. 9579]

This discussion draft establishes a Joint CFTC-SEC Advisory Committee on Digital Assets composed of digital asset marketplace stakeholders. Among its many duties, the Joint Advisory Committee will provide recommendations to the CFTC and the SEC regarding their respective promulgation of rules for digital assets. The draft also requires the CFTC and the SEC to publicly respond to any recommendations made by the Joint Advisory Committee.

Financial Innovation and Technology for the 21st Century Act (FIT21) [H.R. 4763]

On May 22, 2024, the House passed H.R. 4763, the Financial Innovation and Technology for the 21st Century Act (FIT21). FIT21 would create a regulatory regime for the digital asset industry apportioning regulatory authority with respect to digital assets between the CFTC and the SEC, and clarifying the respective jurisdictions of the two agencies. The CFTC would be granted plenary authority over spot market digital asset commodities, while the SEC would maintain authority over restricted digital assets (i.e., digital assets that constitute securities).

Read more on Latham's Global Fintech & Digital Assets Blog.

Digital Asset Market Structure Bill of 2023

On June 2, 2023, Patrick McHenry, chairman of the House Financial Services Committee, and Glenn Thompson, chairman of the House Committee on Agriculture, published a discussion draft of legislation (the Proposed Bill) that seeks to close regulatory gaps and provide a “functional framework” for digital asset regulation in the US. Unlike several other proposed crypto-focused laws around the world, most notably MiCA in the EU, this Proposed Bill largely draws on existing legal frameworks and standards rather than creating an entirely new regime specifically for regulating cryptoassets. The Proposed Bill grants regulatory authority to the CFTC and the SEC and clarifies the jurisdictional scope between the two agencies. The CFTC would be granted explicit authority over spot market digital asset commodities, while the SEC would maintain authority over digital assets offered as part of an investment contract (i.e., securities). While the Proposed Bill would exclude payment stablecoins from the definition of digital commodity under the Commodity Exchange Act (CEA), the CFTC would still be granted jurisdiction over transactions in payment stablecoins “as if” they were digital commodities when transacted on a CFTC-registered entity.

Read more on Latham's Global Fintech & Digital Assets Blog.

Responsible Financial Innovation Act [S. 2281]

On June 10, 2022, US Senators Cynthia Lummis from the Senate Banking Committee and Kirsten Gillibrand from the Senate Agriculture Committee introduced legislation to create a framework for digital assets, cryptocurrency, and blockchain technology. The much-anticipated bipartisan bill, titled the Responsible Financial Innovation Act (RFIA), is the most ambitious digital asset bill yet put forward to Congress, and covers a broad range of topics. The legislation is designed to balance innovation and responsibility, and seeks to safely integrate digital assets into the existing regulatory fold through definitional and jurisdictional clarity. The sponsors have called the legislation no less than “a complete regulatory framework for digital assets,” although it is by many estimates a work in progress that will benefit from public debate and input.

Read more on Latham's Global Fintech & Digital Assets Blog.

Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act of 2025 [S. 394]

The GENIUS Act defines a payment stablecoin as a digital asset used for payment or settlement that is pegged to a fixed monetary value; establishes clear procedures for institutions seeking licenses to issue stablecoins; implements reserve requirements and light-touch, tailored regulatory standards for stablecoin issuers; for issuers of more than $10 billion of stablecoins, applies the Federal Reserve’s regulatory framework to depository institutions and the Office of the Comptroller of the Currency’s (OCC) framework for non-bank issuers; allows for state regulation of issuers under $10 billion in market capitalization and provides a waiver process for issuers exceeding the threshold to remain state-regulated; and establishes supervisory, examination, and enforcement regimes with clear limitations.

Read more on Latham's Global Fintech & Digital Assets Blog.

Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025 [H.R. 2392] 

This discussion draft provides a clear regulatory framework for issuing payment stablecoins. The discussion draft protects consumers by establishing necessary federal guardrails for payment stablecoin issuance, redemption, and reserves, while fostering innovation in the US through a tailored approach for new entrants into the marketplace.

Read more on Latham's Global Fintech & Digital Assets Blog.

On March 26, 2025, A revised bill was introduced in the House. And on April 2, 2025, the House Financial Services Committee held a consideration and mark-up session, and advanced the bill for consideration by the overall House. 

House Financial Services Committee Democrats, led by Congresswoman Maxine Waters, severely criticized the Bill.

Waters Stablecoin Act of 2024 [H.R.#] 

This bipartisan bill would, among other things, create a regulatory framework for both depository institution stablecoin issuers as well as non-bank stablecoin issuers with a central role for the Federal Reserve throughout, that includes strong reserve requirements; protect the separation of banking and commerce by prohibiting non-financial commercial companies from owning a stablecoin issuer; explicitly subject issuers to sanctions laws and requires compliance with anti-money laundering and counter terrorist financing laws; include robust protections for consumer wallets, including risk management and financial resource requirements, as well as back-up examination and enforcement authority for the Federal Reserve; and protect the existing authorities of the US Department of the Treasury (Treasury), the Consumer Financial Protection Bureau (CFPB), SEC, and CFTC with respect to any entity covered by the Act to the extent they engage in activities subject to their oversight and jurisdiction.

Read more on Latham's Global Fintech & Digital Assets Blog.

Clarity for Payment Stablecoins Act of 2023 [H.R. 4766]

On April 15, 2023, the US House Financial Services Committee published a draft bill on the regulation of stablecoins in anticipation of a hearing by its Subcommittee on Digital Assets, Financial Technology and Inclusion (Subcommittee) on April 19.

Read more on Latham's Global Fintech & Digital Assets Blog.

Lummis-Gillibrand Payment Stablecoin Act [S. 4155]

On April 17, 2024, US Senators Cynthia Lummis from the Senate Banking Committee and Kirsten Gillibrand from the Senate Agriculture Committee introduced proposed legislation to create a US regulatory framework for stablecoins. The bipartisan Lummis-Gillibrand Payment Stablecoin Act (the Bill) seeks to promote responsible innovation and preserve US dollar dominance, while protecting consumers and digital asset market participants. The Bill supersedes the pair’s 2022 proposed RFIA, at least with regard to stablecoins. The RFIA proposed a complete regulatory framework for digital assets more generally, whereas the current Bill focuses on the comprehensive regulation of payment stablecoins. As defined by the Bill, a “payment stablecoin” would be any cryptoasset “that is, or is designed to be, used as a means of payment or settlement,” and the issuer of which is obligated to redeem the asset for a fixed amount of US dollars or “represents, or creates the reasonable expectation, that the crypto asset will maintain a stable value relative to the value of a fixed amount of United States dollars.” Accordingly, the Bill does not purport to regulate stablecoins denominated in or redeemable for non-US currencies or other assets.

Read more on Latham Global Fintech & Digital Assets Blog.

New Frontiers in Technology (NFT) Act [H.R. 10544]

This discussion draft clarifies that a covered non-fungible token (NFT) is not an investment contract nor a transaction in a security. The draft also requires the Government and Accountability Office (GAO) to conduct a comprehensive study on NFTs that will be made publicly available one year after enactment.

Evaluating DeFi Opportunities Act [H.R. 9758]

This discussion draft would require the Secretary of Treasury, in coordination with the SEC and CFTC, to issue a report on decentralized finance. The draft also requires a separate report by the GAO to be submitted within one year to the relevant committees.

California Adopts Digital Financial Assets Law

On October 13, 2023, California Governor Gavin Newsom signed California State Assembly Bill 39, which establishes the Digital Financial Assets Law (DFAL). The new law, which goes into effect on July 1, 2025, makes California only the second state after New York to adopt comprehensive regulation of digital financial assets and associated service providers. The DFAL authorizes the California Department of Financial Protection and Innovation (DFPI) to administer its provisions and requirements, which apply to the digital asset business activity of a person or entity (Covered Persons) engaging in, or holding itself out as being able to engage in, activities with California residents relating to the exchange, transfer, storage or “administration” of a digital asset, whether indirectly or through a vendor. Issuing a digital asset does not in itself require licensure, unless such asset is redeemable for legal tender, bank credit, or another digital asset. Issuers of stablecoins would therefore need to be licensed unless they block California residents, but not issuers of utility tokens or creators of tokenized real-world assets. Instead, the DFAL puts the burden on exchanges to ensure that digital assets they list meet specific requirements, including those related to disclosure.

Read more on Latham's Global Fintech & Digital Assets Blog.

NYDFS Issues Guidance Regarding Customer Service Requests and Complaints

The New York State Department of Financial Services (NYDFS) issued guidance to virtual currency entities (VCEs) to emphasize the Department’s expectations regarding the resolution of customer service requests and complaints. VCEs must address and resolve customer service requests and complaints in a timely and fair manner. NYDFS expects a VCE’s policies and procedures to provide for the maintenance and monitoring of, at a minimum, a phone number and an electronic text communication function (either email- or chat-based) for customers to make customer service requests and complaints with the VCE.

Visit the NYDFS website for more information.

NYDFS Issues Alert on Proliferation of Meme Coins

NYDFS issued guidance to all virtual currency business entities licensed under 23 NYCRR Part 200 or chartered as limited purpose trust companies under the New York Banking Law. NYDFS is closely monitoring the rapid proliferation of sentiment-based virtual currencies (memecoins). According to NYDFS, memecoins are generally incompatible with the department’s Guidance on Coin-Listing and on Market Manipulation, in that they carry significant regulatory, market, and legal risk, and may be favorable instruments to facilitate illicit finance. NYDFS will continue to closely monitor its regulated entities and, as appropriate, will take supervisory and enforcement action to ensure Virtual Currency Business Entities follow all applicable laws and regulations.

Visit the NYDFS website for more information.

NYDFS Proposes Updated Guidance on Crypto Listing

On September 18, 2023, NYDFS issued Proposed Updates to Guidance Regarding Listing of Virtual Currencies (the Proposed Guidance) pursuant to its ongoing VOLT initiative to strengthen the oversight of virtual currencies. The Proposed Guidance updates NYDFS’s general framework for the creation of firm-specific policies by VCEs with respect to the adoption, listing, or delisting of a virtual currency. It provides for a self-certification process for listing coins provided such VCE has an NYDFS-approved coin-listing policy. Notably, VCEs that do not have an approved coin-listing policy may only list coins that are included in the NYDFS virtual currency “Greenlist” or that are individually approved by NYDFS for listing by such VCE as part of an application for a material change to business under NYCRR 200.10. However, NYDFS may at any time and in its sole discretion require VCEs to delist or limit New Yorkers’ access to specific coins.

Read more on Latham's Global Fintech & Digital Assets Blog.

NYDFS Issues Crypto Custody Guidance

On January 23, 2023, NYDFS published Guidance on Custodial Structures for Customer Protection in the Event of Insolvency (the Guidance). It guides virtual currency entities (VCEs) acting as custodians (VCE Custodians) on how to appropriately custody customer assets and properly disclose such holdings and arrangements. Issued in the wake of numerous connected crypto industry insolvencies that imperiled customer assets and funds due to commingling and rehypothecation, the Guidance instructs VCEs to put customer protection first. NYDFS emphasized “the paramount importance of equitable and beneficial interest always remaining with the customer.” The Guidance is addressed to VCE Custodians that are either licensed under New York’s BitLicense regulation (23 NYCRR Part 200) or New York state-chartered limited purpose trust companies (Regulated VCE Custodians), but reads as a broad statement of policy.

Read more on Latham's Global Fintech & Digital Assets Blog.

New York Attorney General Proposes Stringent Crypto Bill

On May 5, 2023, New York Attorney General (NYAG) Letitia James introduced a bill that, if passed, would increase New York’s oversight of digital assets market activity. The Crypto Regulation, Protection, Transparency and Oversight Act (the CRPTO Act, or the Bill) would provide the NYAG’s office with greater enforcement powers to police the digital asset industry. It would also expand NYDFS’s authority to regulate individuals and businesses engaging in digital asset transactions. The CRPTO Act comes on the heels of several high-profile NYAG enforcement actions against digital asset businesses. The CRPTO Act creates five classifications for commercial actors engaged in the sale, trade, and promotion of digital assets: (1) Digital Asset Issuers create, issue, or offer to issue a digital asset to the public (2) Digital Asset Brokers effect transactions in digital assets on behalf of others. (3) Digital Asset Marketplaces are providers of, or substantial participants in (or any system that provides), a marketplace or facilities for connecting purchasers and sellers of digital assets. (4) Digital Asset Investment Advisers engage in the business of advising members of the public on the value of digital assets and the advisability of investing in digital assets. (5) Digital Asset Influencers are those that widely encourage investment in a digital asset while not purporting to offer the digital asset for sale, receive compensation of any sort, or own more than $25,000 in the asset.

Read more on Latham's Global Fintech & Digital Assets Blog.

Wyoming Decentralized Unincorporated Nonprofit Association (DUNA) Act

On March 7, 2024, Wyoming Governor Mark Gordon signed into law a new legal framework for decentralized autonomous organizations (DAOs), allowing them to be recognized as “decentralized unincorporated nonprofit associations” (DUNAs). The DUNA Act was adopted with bipartisan support, reflecting Wyoming’s progressive stance on blockchain technology and its applications. It took effect on July 1, 2024. DAOs typically have a diffuse group of members that make decisions on behalf of a blockchain ecosystem “on-chain” through code and smart contracts. They have struggled to fit into traditional legal frameworks due to their decentralized nature and their often anonymous member base. The DUNA Act addresses this by allowing DAOs to engage in legal contracts, acquire and transfer property, open bank accounts, appear in court, and pay taxes, all while aiming to preserve their decentralized natures and provide certain legal protections to their members.

Read more on Latham's Global Fintech & Digital Assets Blog.

Wyoming Stable Token Act Enacted Into Law

For the last few years, Wyoming has been a leader among US states at the intersection of digital asset innovation, adoption, and regulation. In July 2021, Wyoming became the first state in the nation to allow DAOs to obtain legal company status by registering in Wyoming as limited liability companies (LLCs). More recently, on March 17, 2023, Wyoming became the first state to enact a bill allowing it to create its own stablecoin. After vetoing the original version of the bill in March 2022, Governor Mark Gordon allowed the updated version SF0127 — Wyoming Stable Token Act (the Act) to go into law, albeit without his signature. The stable token and the corresponding trust account that backs the stable token established by the Act will function as follows:

• An individual stable token is a virtual currency representation of $1.
• A token shall be redeemable upon demand for $1 (except when the US short-term Treasury rate falls below zero, or the value of the assets held in the trust account falls below $1 per stable token outstanding).
• The notional value of all outstanding tokens will be held 100% in the newly-established Wyoming stable token trust account (although the trust does not create any fiduciary duty between the state and token holders).
• Funds held in the trust will be invested only in low-risk short-term US Treasuries.
• Any investment earnings generated above 102% of outstanding token value will be deposited into a separate Wyoming stable token administration account, to cover operational costs and fund other state endeavors.
• The Act establishes a Wyoming Stable Token Commission with the ability to issue and oversee the program.

The Act provides that the Commission “shall endeavor to issue at least one Wyoming stable token not later than December 31, 2023.” The Wyoming state treasury will provide startup costs of $500,000 for issuing and administering the tokens, although such funds are expected to be repaid, presumably from anticipated interest income.

Read more on Latham's Global Fintech & Digital Assets Blog.