Cryptocurrency + FinTech

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In two recent litigation status reports, the Consumer Financial Protection Bureau (CFPB or Bureau) indicated that it is working to issue interim final rules for both Section 1071 and Section 1033 in light of an opinion from the U.S. Department of Justice’s Office of Legal Counsel (OLC) concluding that the Bureau cannot lawfully draw funds from the Federal Reserve Board at this time. Specifically, as discussed here, the OLC concluded that the Federal Reserve System presently has no “combined earnings” from which the CFPB may lawfully draw funds under the Dodd‑Frank Act, and the CFPB has publicly stated it anticipates having sufficient funds to continue normal operations through at least December 31, 2025.

On November 25, the House Financial Services Committee majority staff published Operation Chokepoint 2.0: Biden’s Debanking of Digital Assets, a detailed account of how, in the Committee’s view, federal prudential regulators between 2021 and early 2025 discouraged banks from serving lawful digital asset businesses through informal guidance, supervisory posture, and enforcement.

On September 29, the California Department of Financial Protection and Innovation (DFPI) announced significant modifications to the proposed regulations under the Digital Financial Assets Law (DFAL) and the Money Transmission Act (MTA). These changes are part of an ongoing effort to refine the regulatory framework governing digital financial assets and ensure clarity in the application of these laws.

On September 19, the U.S. Department of the Treasury issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public input on the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This ANPRM builds upon the Request for Comment on Innovative Methods to Detect Illicit Activity Involving Digital Assets issued by Treasury on August 18, which remains open for comment until October 17, 2025.

Last week, Illinois Governor JB Pritzker signed two landmark pieces of legislation aimed at protecting consumers from cryptocurrency scams and fraud. The Digital Assets and Consumer Protection Act (SB1797) and the Digital Asset Kiosk Act (SB2319) establish comprehensive regulatory frameworks for digital asset businesses operating in Illinois.

As digital assets continue to reshape the financial landscape, regulatory clarity around stablecoins is increasingly vital. The GENIUS Act, signed into law by President Trump in July, establishes the first-ever federal regulatory system for stablecoins and aims to position the U.S. as the global leader in digital assets. This is a historic shift in U.S. digital asset policy, prioritizing consumer protection, financial stability, and national security, while aiming to cement America’s leadership in the global digital currency revolution.

On August 18, the U.S. Department of the Treasury issued a Request for Comment, inviting interested members of the public to provide input on innovative methods to detect and mitigate illicit finance risks involving digital assets. This initiative fulfills the GENIUS Act directive for the Secretary of the Treasury to seek public comment on methods to detect illicit activity involving digital assets, complements the January 23, 2025 Executive Order 14178 on “Strengthening American Leadership in Digital Financial Technology” to promote responsible digital asset growth and U.S. leadership in digital finance, and aligns with the July 30, 2025 report from the President’s Working Group on Digital Assets advocating enhanced anti-money laundering/countering the financing of terrorism (AML/CFT) measures through public-private collaboration. In conjunction with the SEC’s “Project Crypto,” this Request for Comment bolsters the Administration’s commitment to fostering responsible innovation in digital finance while addressing potential risks and misuses by illicit actors.

On July 31, the Securities and Exchange Commission (SEC) Chairman Paul Atkins (Chair Atkins) presented “Project Crypto,” an initiative aimed at positioning the U.S. as the global leader in the digital finance world. In his address, Chair Atkins outlined his vision to modernize securities rules and regulations, enabling America’s financial markets to fully embrace blockchain technology and move on-chain. This plan solidifies President Trump’s vision of making the U.S. the crypto capital of the world and signals a new era of regulatory clarity and innovation for the crypto industry within the U.S.

Since the House passed the CLARITY Act on July 17, the U.S. Senate Banking Committee, which has oversight of the Securities and Exchange Commission (SEC), has been busy working on its own version of the U.S. crypto regulatory framework. Chairman Tim Scott (R-SC), along with Senators Cynthia Lummis (R-WY), Bill Hagerty (R-TN), and Bernie Moreno (R-OH), released a discussion draft of the “Responsible Financial Innovation Act of 2025.” This comprehensive legislation aims to provide regulatory clarity, encourage innovation, and address key risks in the rapidly evolving digital asset ecosystem. This blog highlights critical elements of the draft bill, offering an overview of its major provisions and implications. Alongside the draft, the Senate Banking Committee has issued a broad Request for Information (RFI) to solicit feedback from the public, with responses due by August 5, 2025.

On July 16, TradeStation Securities, Inc., a member firm of the Financial Industry Regulatory Authority (FINRA), submitted a Letter of Acceptance, Waiver, and Consent (AWC) to FINRA’s Department of Enforcement. This AWC proposes a settlement for alleged rule violations concerning retail communications related to crypto assets. The acceptance of this AWC by FINRA ensures that no future actions will be brought against TradeStation Securities based on the same factual findings.