USDThis Week’s Global Policy Push: Stablecoin Law Signed, Europe Sanctions
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Trump Signs GENIUS Act, Establishing First Comprehensive U.S. Crypto Framework for Stablecoins
On July 19, 2025, President Trump signed the GENIUS Act into law, establishing the first comprehensive U.S. crypto framework focused on stablecoins. This act mandates 1:1 backing in U.S. dollars or low-risk assets and offers state and federal licensing options for issuers. Following a historic House vote of 273–140, the GENIUS Act includes mandatory audits for issuers over $50 billion and exemptions for tokenized money market funds. The FIT21 package, also encompassing the CLARITY and Anti-CBDC Acts, faces Senate scrutiny but signals a shift toward regulatory clarity and potential institutional adoption in the crypto space.
Trump Backs $600 Crypto Tax Exemption to Boost Digital Asset Use, Opposes CBDC
President Trump has expressed support for a tax exemption on small crypto transactions, specifically a $600 de minimis threshold, to facilitate everyday digital asset use. White House Press Secretary Karoline Leavitt announced that the Trump administration backs the GENIUS Act, designed to regulate stablecoins and reinforce the U.S. crypto industry leadership. A signing ceremony is anticipated following congressional approval. Trump remains opposed to central bank digital currencies (CBDCs) and has taken steps to prohibit their development. Additionally, Senator Cynthia Lummis has introduced legislation for further U.S. crypto tax reforms, aiming to exempt transactions under $300.
US Lawmakers Propose Bill to Include Crypto Holdings in Mortgage Underwriting
On July 14, US lawmakers introduced H.R. 4374, a bill mandating that mortgage lenders consider crypto holdings in brokerage accounts during the underwriting process. This legislation aims to update regulations to include these digital assets, allowing borrowers to utilize their crypto balances directly, without needing to convert to fiat. Key agencies like Fannie Mae and Freddie Mac have been directed to explore integrating regulated crypto holdings into mortgage risk assessments. This move seeks to streamline the mortgage application process, eliminating the current requirement for borrowers to "season" converted funds for months before use.
Federal Agencies Issue Crypto Custody Guidelines to Boost Bank Involvement
On July 15, 2025, the Federal Reserve, FDIC, and OCC issued joint guidelines for banks involved in cryptocurrency custody, marking a pivotal move toward regulatory clarity. This guidance standardizes custodial practices and emphasizes risk management protocols, ensuring safe operations for financial institutions entering the crypto market. Acting Comptroller Michael J. Hsu noted that banks can now engage in crypto custody securely. The announcement has sparked cautious optimism among market participants, highlighting potential boosts in institutional interest and mainstream adoption of digital assets, ultimately positioning banks to enhance their offerings in the evolving cryptocurrency landscape.
California Launches Breakthrough Project to Enhance Government Efficiency with Tech Leaders
California has launched the Breakthrough Project, a new initiative led by Governor Gavin Newsom to enhance government efficiency through collaboration with tech leaders from Ripple, Coinbase, and MoonPay. The advisory group, which first convened on June 6, aims to tackle systemic inefficiencies by modernizing state processes and integrating advanced technologies. Newsom emphasized California's role as a tech leader, seeking transparency and ethical safeguards while addressing operational challenges. The initiative follows previous modernization efforts in various state departments, and an executive order was signed to enhance hiring and procurement processes, alongside the establishment of an Innovative Fellows Program for state staff.
U.S. Ends Investigations into Crypto-Betting Platform Polymarket, Paving Way for Regulatory Re-entry
U.S. authorities, including the DOJ and CFTC, have closed investigations into the crypto-betting platform Polymarket, indicating a regulatory shift under the Trump administration. The probes, which intensified during the Biden administration, focused on Polymarket's potential violations of a 2022 settlement that required it to block U.S. users. This resolution aligns with broader crypto-friendly policy efforts in Washington, coinciding with what some are calling “Crypto Week.” Polymarket, which achieved a $2.6 billion trading volume in November primarily from election bets, may now explore official re-entry into the U.S. market, including potential CFTC registration.
EU Sanctions Crypto-Linked Entities for Election Interference and Disinformation
The EU has imposed sanctions on nine individuals and six entities linked to using cryptocurrencies for election interference and disinformation, notably targeting Kremlin influencer Simeon Boikov for promoting a fabricated voter fraud video in the 2024 US election. The sanctions also affect A7 OOO, a firm implicated in manipulating Moldova’s elections, founded by fugitive Ilan Shor. Connected to a ruble-backed stablecoin, A7 OOO reportedly facilitated illegal fund transfers. This move reflects the EU’s strategy to disrupt funding and operational networks for disinformation campaigns, emphasizing the geopolitical implications of cryptocurrencies in ongoing conflicts.
Thailand Launches Crypto Sandbox for Tourists to Convert Digital Assets to Baht
Thailand has launched a crypto sandbox project enabling tourists to convert cryptocurrencies to baht, enhancing their spending options while visiting. Initially piloted in Phuket, the project aims to boost tourism revenue and establish Thailand as a regional fintech leader. Tourists can convert their digital assets using licensed platforms, with monthly spending limits set at 50,000 bahts for local vendors and 500,000 bahts for certified establishments. The initiative, supported by the SEC and BOT, faces criticism for its lack of educational outreach and clarity on cryptocurrencies involved. Feedback is welcome until August 13, with a potential 18-month duration for the trial.
Hungary’s Crypto Crackdown: Up to 8 Years for Unlicensed Exchanges; Services Suspended
Hungary has enacted strict cryptocurrency regulations, criminalizing the use of unlicensed exchanges and high-value transactions (over 50 million HUF). Penalties include up to five years in prison for users and up to eight for operators. The law, effective since July 1, requires all crypto service providers to obtain a license from the Hungarian National Bank, leaving many operators in limbo. Prominent platforms like Revolut and Bitstamp have suspended services for Hungarian residents. Critics argue that the penalties exceed EU MiCA requirements and that the lack of licensing guidance aims to eliminate rather than regulate crypto trading in Hungary.
This article has been refined and enhanced by ChatGPT.
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