USDU.S. Crypto Regulation Recap: Stablecoin Laws, SEC Rethink, and Bitcoin Reserves
HUD Explores Cryptocurrency and Blockchain Integration for Grant Monitoring
The U.S. Department of Housing and Urban Development (HUD) is exploring the potential integration of cryptocurrency and blockchain technology in its operations, as reported by ProPublica. HUD has conducted meetings to discuss utilizing blockchain for monitoring grants, which may serve as a pilot for broader federal crypto adoption. Although discussions included the potential use of stablecoins, specific details regarding which stablecoin or blockchain were not disclosed. Some sources suggested that HUD could consider paying grantees in cryptocurrency; however, a HUD spokesperson clarified there are currently no plans for such initiatives. This aligns with President Donald Trump's goal of positioning the U.S. as the "crypto capital of the world." Recently, he signed an executive order to create the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, aiming for stablecoin legislation to be proposed by August and addressing issues related to crypto debanking.
Utah’s HB230 Passes, Removing State Bitcoin Reserve but Upholding Crypto Rights
Utah's HB230, a significant crypto legislation, has advanced without a provision for a state-backed Bitcoin reserve, which was originally intended to allocate up to 5% of public funds toward digital assets with a market cap exceeding $500 billion. Despite this omission, the bill establishes vital crypto rights for residents, including the rights to self-custody, mine Bitcoin, run blockchain nodes, and engage in staking. The legislation prohibits governmental restrictions on the acceptance and management of digital assets. Awaiting Governor Spencer Cox’s signature, it is set to become law on May 7, 2025, amidst a broader national trend of cryptocurrency adoption.
SEC Chairman Uyeda Seeks to Abandon Proposed Crypto Exchange Registration Rule
The acting chairman of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, indicated a shift in regulatory strategy regarding crypto firms during a March 10 speech. He has requested SEC staff to explore options for abandoning a proposed rule change that would expand the definition of alternative trading systems (ATSs) to include crypto exchanges. Uyeda cited substantial negative public feedback on redefining exchanges in this context. Initially crafted in 2020, the rule under former SEC Chairman Jay Clayton targeted U.S. Treasury market participants; however, under Gary Gensler's leadership, the focus broadened in 2022 to encompass crypto. This pivot reflects a recent more amicable stance towards crypto, evidenced by case dismissals against firms like Gemini, Kraken, and Cumberland DRW. A crypto task force led by Commissioner Hester Peirce is also being established to create a regulatory framework for digital assets, signaling a potential turning point in SEC’s approach to cryptocurrency regulation.
Texas Proposes $250 Million Bitcoin Reserve Bill to Boost Digital Asset Investments
Texas has introduced a new bill, HB 4258, aimed at establishing a Bitcoin reserve by allocating up to $250 million from the state’s economic stabilization fund for digital assets, marking a significant move in cryptocurrency integration. This bill follows the earlier SB 778, which has garnered bipartisan support and focuses on enabling tax payments and donations in crypto, with restrictions on selling state-owned Bitcoin. HB 4258 allows municipalities and counties to invest up to $10 million in digital assets, positioning Texas strategically for Bitcoin adoption within the Texas Triangle, consisting of Houston, Austin, and Dallas. If passed, the bill will become effective on September 1, 2025. This initiative aligns with trends in 21 other states exploring similar frameworks for cryptocurrency investment, with Texas aiming to set a precedent for the nation. Texas Lieutenant Governor Dan Patrick emphasizes Bitcoin’s decentralized nature as a valuable asset for the state’s economic future.
House Votes to Repeal Controversial IRS Crypto Tax Rule, Awaiting Trump’s Signature
On March 11, 2025, the U.S. House of Representatives voted 291-126 to repeal a controversial IRS crypto tax rule, initially finalized in December under the previous administration. The bipartisan joint resolution, led by Rep. Mike Carey and Sen. Ted Cruz, requires "DeFi brokers" to collect user data and send Form 1099 tax returns, posing compliance burdens on American companies. Advocates, including White House Crypto Czar David Sacks, argue the rule threatens innovation and privacy, pushing businesses overseas. Although most Republicans supported the repeal, some Democrats, including Chuck Schumer and John Fetterman, crossed party lines. Concerns were raised about the fiscal impact, with Rep. Danny Davis citing an estimated $4 billion deficit increase from taxpayer noncompliance. The resolution will proceed to the Senate again before reaching President Trump's desk, who is expected to sign it.
Senate Banking Committee Advances Bipartisan GENIUS Act for Stablecoin Regulation
On March 13, 2025, the Senate Banking Committee advanced the "GENIUS Act" (Guiding and Establishing National Innovation for US Stablecoins) with an 18-6 vote, establishing a regulatory framework for stablecoins and defining oversight by state or federal authorities. The bill, introduced by Sen. Bill Hagerty, R-Tenn., has bipartisan support from Democrats like Sens. Angela Alsobrooks and Kirsten Gillibrand, but faces criticism from others, including Sen. Elizabeth Warren, who claims it fails to protect consumers and national security. Warren's proposed amendments, including blocking big tech from issuing currencies, were rejected. Concerns about the bill's debate and amendment process were voiced by Sen. Catherine Cortez Masto, while Rep. Stephen Lynch criticized it in the House, urging significant amendments. Supporters in the crypto industry, such as the Blockchain Association, view the GENIUS Act as a positive step for stablecoin innovation in the financial system.
This article has been refined and enhanced by ChatGPT.
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