Crypto Regulations in Focus: U.S. States and FDIC Take Action

Trump Forms Crypto Advisory Council

Trump is also establishing a crypto advisory council expected to include about 24 CEOs and founders.

The council is intended to help shape digital-asset policy, work with agencies including the SEC, CFTC and Treasury, and support legislation covering the crypto industry.

Crypto.com CEO Kris Marszalek and Circle CEO Jeremy Allaire were among the industry figures engaging with Trump.

Former congressional candidate Bo Hines was appointed to lead the council alongside David Sacks, Trump's AI and crypto czar.

New Hampshire and North Dakota Consider Bitcoin Reserves

New Hampshire and North Dakota introduced proposals to create strategic digital-asset reserves.

New Hampshire Republican Rep. Keith Ammon's proposal refers to “digital assets” rather than explicitly naming Bitcoin.

North Dakota's proposal was backed by Reps. Nathan Toman and Josh Christy and Sen. Jeff Barta, with 11 sponsors.

Pennsylvania had introduced a similar proposal in November.

At the time, market pricing suggested a 27% chance that Trump would establish a federal Bitcoin reserve within his first 100 days, down from 45% in November.

Oklahoma Proposes Strategic Bitcoin Reserve Act

Oklahoma also introduced a Strategic Bitcoin Reserve Act.

The bill, authored by Rep. Cody Maynard, would allow state savings and pension funds to invest in Bitcoin and other digital assets.

Supporters presented the proposal as a way to protect public funds against inflation and economic instability.

The measure was scheduled for consideration beginning February 3, with a possible implementation date of November 1.

Texas Introduces Strategic Bitcoin Reserve Bill

Texas Sen. Charles Schwertner introduced Senate Bill 778, which would create a state Strategic Bitcoin Reserve.

The proposal would establish a special fund outside Texas' general revenue fund and allow the state to own Bitcoin and accept BTC donations.

Bitcoin purchases would be capped at 1% of general revenue.

The bill also calls for:

• Cold storage
• Regular audits
• Bitcoin donations
• Separate reserve accounting

Texas Rep. Giovanni Capriglione had introduced a separate proposal, House Bill 1598, involving Bitcoin donations.

FDIC's Travis Hill Calls for Crypto Banking Policy Changes

FDIC Vice Chair Travis Hill criticized restrictions that discouraged banks from working with cryptocurrency companies.

Hill specifically criticized the use of “pause letters,” which asked banks to delay or stop some crypto-related activities.

He argued that regulators should establish clearer rules allowing banks to engage with digital assets while managing risk.

Hill also criticized policies that can encourage banks to close accounts because of Bank Secrecy Act compliance concerns.

His comments followed disclosure of multiple FDIC “pause letters” in a 2023 report.

Senator Lummis Demands Preservation of FDIC Crypto Records

Sen. Cynthia Lummis accused the FDIC of destroying documents connected to what crypto industry figures have called “Operation Chokepoint 2.0.”

She demanded that the agency preserve records involving digital-asset activities, including documents related to Signature Bank and Silvergate Bank liquidation.

Lummis warned that intentional destruction of relevant records could lead to criminal referrals to the Justice Department.

More than 30 crypto founders, including Coinbase CEO Brian Armstrong, had publicly discussed difficulties maintaining banking relationships.

Armstrong also pursued records through Freedom of Information Act requests after receiving heavily redacted FDIC documents.

Elizabeth Warren Calls for Stronger Crypto AML Rules

Sen. Elizabeth Warren called for tighter cryptocurrency rules over national-security and illicit-finance concerns.

In a January 12 letter, Warren urged Treasury to strengthen Anti-Money Laundering and Counter-Terrorism Financing requirements.

She cited concerns involving:

• North Korea
• Ransomware
• Sanctions evasion
• Other illicit financial activity

Warren also called for broader Bank Secrecy Act coverage of international firms serving U.S. customers.

She had previously introduced the Digital Asset Anti-Money Laundering Act in 2022 and 2023.

Trump's SEC Expected to Rethink Crypto Enforcement

Reports on January 15 said Republican SEC commissioners Hester Peirce and Mark Uyeda were preparing to reassess the agency's crypto policies.

Potential changes included:

• Reviewing pending enforcement cases
• Clarifying crypto asset classifications
• Reconsidering non-fraud litigation
• Changing crypto custody requirements
• Holding public consultations on token classifications

Incoming SEC Chair Paul Atkins was expected to take a different approach from outgoing Chair Gary Gensler.

Under Gensler, the SEC had brought 83 crypto-related enforcement actions, including cases involving Coinbase and Kraken.

Trump's Treasury Nominee Opposes a U.S. CBDC

Scott Bessent, Trump's nominee for Treasury Secretary, opposed creating a U.S. central bank digital currency.

“I see no reason for the US to have a central bank digital currency,” Bessent said.

He argued that CBDCs may be more relevant in countries where people have fewer reliable investment options.

The U.S. had previously studied a possible digital dollar as governments worldwide examined CBDCs and China's digital yuan expanded.

IRS Crypto Reporting Begins in 2025

New IRS crypto reporting requirements begin in 2025 for custodial crypto platforms.

Centralized exchanges must file Form 1099-DA covering qualifying digital-asset transactions.

Cost-basis reporting is not required until 2026.

For decentralized and peer-to-peer platforms, reporting requirements begin in 2027.

DEXs such as Uniswap would report total transaction amounts without cost basis because they do not take custody of customer assets.

Singapore Blocks Polymarket

Singapore restricted access to prediction market Polymarket as part of its crackdown on unlicensed online gambling.

The Gaming Regulatory Authority warned on January 12 that using Polymarket was illegal.

Possible penalties include:

• Fines of up to SGD 10,000
• Up to six months in prison

Singapore had shut down more than 3,800 gambling websites since the beginning of 2025 and blocked more than $37 million in transactions.

Singapore Pools remains the country's only licensed online gambling provider.

Thailand Moves Against Polymarket While Considering Bitcoin ETFs

Thailand also announced plans to block Polymarket over illegal online gambling.

At the same time, the country was considering allowing local exchanges to list Bitcoin ETFs.

Thailand was also planning a crypto-payment pilot in Phuket and discussing gambling legalization that could potentially generate $4 billion in tax revenue.

The country's active crypto accounts stood at about 270,000 in November 2024.

New York and Bank of England Launch Regulatory Exchange

The New York Department of Financial Services and Bank of England launched the Transatlantic Regulatory Exchange.

The program is scheduled to begin in February 2025.

It will allow regulators with experience in digital payments and distributed ledger technology to work across both organizations.

The exchange will last at least six months, with the option to extend it to one year.

NYDFS Superintendent Adrienne A. Harris said the program would help strengthen regulation while protecting consumers and supporting innovation.

Bank of England Deputy Governor Sarah Breeden emphasized financial stability and international regulatory coordination.

South Korea Advances Second Phase of Crypto Rules

South Korea's Financial Services Commission moved forward with the second phase of its cryptocurrency regulatory framework.

The work focuses on:

• Stablecoin regulation
• Token issuance
• Distribution
• Disclosure requirements
• User protection
• Market transparency

The FSC discussed disclosure requirements similar to those used in traditional capital markets.

Local exchange Upbit was also facing scrutiny involving 600,000 potential KYC violations.

Corporate crypto investment rules were delayed as regulators continued developing policy.

Real-name corporate crypto trading accounts were expected during 2025.

Malaysia Studies New Crypto Regulatory Framework

Malaysia's Prime Minister Anwar Ibrahim discussed crypto regulation with Binance founder Changpeng Zhao and officials from the United Arab Emirates.

Anwar described the initiative as a “radical departure from old ways.”

Malaysia's Treasury, Securities Commission and Bank Negara Malaysia were expected to study possible regulatory changes.

Digital assets remain classified as securities under Malaysia's existing framework, while the ringgit remains the country's only legal tender.

Officials were also considering problems including tax evasion and illegal crypto mining.

Dubai Announces Crypto Tower

Dubai announced plans to build a Crypto Tower designed for blockchain and digital-asset businesses.

The Dubai Multi Commodities Centre project will offer 150,000 square feet of leasable space.

Plans include:

• Nine floors of crypto office space
• Blockchain incubator facilities
• Venture capital offices
• AI innovation space
• 10,000-square-foot indoor event area
• 3,500-square-foot outdoor event area
• 30,000-square-foot crypto club
• NFT art gallery
• Gold bullion shop
• Exotic car dealership
• 5,000-square-foot secure vault

The project is part of Dubai's broader effort to attract blockchain and digital-asset companies.