US digital asset legislation faces mounting hurdles amid political and industry tensions

Regulation1615 words8 min readabout 17 hours ago

The proposed Responsible Financial Innovation Act of 2025 encounters political hesitations, intra-agency conflicts, and industry pushback, illustrating the complex path towards comprehensive US crypto regulation amid broader geopolitical tensions.

The path toward U.S. digital asset market structure legislation seems to be getting bumpier these days, with political hesitations and conflicts within institutions making things more complicated \u2014 not exactly the most promising sign for a straightforward timeline. The Senate, led by Banking Committee chair Tim Scott (R-SC), is eager to move ahead with the Responsible Financial Innovation Act of 2025 (RFIA), aiming to get it marked up by September 30 and hopefully signed into law by Thanksgiving or Christmas. However, Senator John Kennedy (R-LA) recently voiced some doubts, pointing out unresolved issues and warning against rushing such a complex bill, especially since it's largely shaped by industry players it's meant to regulate. Kennedy, for instance, reminded folks of earlier legislation influenced by tech giants that ended up with problematic results, emphasizing how serious this current task really is.\n\nOne of the main hurdles for RFIA involves how it plans to split regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This requires close coordination between both the Senate Banking and Agriculture Committees. On top of that, ongoing negotiations around rules affecting stablecoins and digital asset exchange rewards have caused some delays. The banking sector is also voicing worries\u2014particularly about stablecoin incentives possibly destabilizing deposit bases. Regulators have to be very careful, balancing those concerns. Meanwhile, advocates in the House are expecting another vote soon, since the RFIA includes language that would require the House to hold its own vote on the bill. If the House passes amendments, the bill would be sent back to the Senate for reconsideration, adding a layer of procedural complexity.\n\nOn top of all that, Senate Democrats have introduced their own regulatory framework aimed at the digital asset ecosystem. They emphasize ethics and seem to want to reduce perceived conflicts\u2014like those involving former President Trump or his family\u2019s crypto dealings. Senator Kirsten Gillibrand (D-NY), speaking at a recent CoinDesk event in Washington, highlighted the importance of upholding ethical standards, signaling that Democrats might push for tighter boundaries even as bipartisan efforts continue. I mean, it\u2019s quite a lot happening simultaneously, right?\n\nMeanwhile, the nomination process for leadership at the CFTC exposes some underlying tensions within crypto regulation. President Trump\u2019s pick for permanent CFTC chair, Brian Quintenz, has faced delays that, apparently, are partly due to opposition from industry figures Cameron and Tyler Winklevoss\u2014the twin founders of Gemini. Although they initially supported Quintenz, these two later lobbied the White House to delay his confirmation, largely because of a 2022 CFTC lawsuit against Gemini that led to a $5 million settlement. Quintenz publicly shared texts revealing these exchanges, claiming that the Winklevoss twins wanted commitments he simply wouldn\u2019t give. This dispute highlights ongoing friction between regulators and major players in the crypto space, especially amid broader leadership changes at the CFTC.\n\nOn the enforcement side of things, the Treasury Department\u2019s Office of the Comptroller of the Currency (OCC) has announced efforts to crack down on what it calls \u201cpoliticized or unlawful debanking.\u201d This move follows a Trump-era directive aimed at preventing financial discrimination based on political or religious lines. OCC chief Jonathan Gould has said he\u2019s committed to rooting out discriminatory banking practices, which have, at times, impacted parts of the crypto industry. It seems they're shifting away from earlier cautious approaches, instead aiming to foster safer integration of crypto activities within the banking system\u2014more collaboration, less obstruction.\n\nAll of this occurs amidst broader geopolitical financial maneuvering. Some observers, including officials from Russia, speculate that the U.S. might utilize crypto to manage its national debt or exert influence on the global currency system. Honestly, I find that interesting\u2014whether or not these claims hold up, they do add a layer of complexity. While such ideas are often countered by the strategic intent to keep the dollar stable, they underscore how U.S. crypto policies can have far-reaching implications worldwide.\n\nIn summary, the environment surrounding U.S. legislation and regulation of digital assets is quite delicate. It\u2019s a balancing act\u2014trying to foster innovation and protect investors while also respecting the input of industry players and maintaining regulatory independence. National and international pressures complicate matters, too. Basically, the landscape is developing into a complex maze that will heavily influence how digital assets fit into the future financial system. It\u2019s a lot to watch, if you ask me.

Source: Noah Wire Services

Verification / Sources

https://coingeek.com/us-market-structure-hits-snag-quintenz-hits-back-at-winklevii/ - Please view link - unable to able to access data
https://www.reuters.com/sustainability/boards-policy-regulation/trumps-cftc-pick-says-entrepreneur-winklevoss-lobbied-president-delay-nomination-2025-09-10/ - Brian Quintenz, President Trump's nominee for chair of the Commodity Futures Trading Commission (CFTC), alleged that Tyler Winklevoss, co-founder of the Gemini exchange, lobbied the White House to delay his nomination. Quintenz shared a text exchange where Winklevoss raised concerns over a 2022 CFTC lawsuit against Gemini, which resulted in a $5 million settlement. Following this, the Winklevoss twins reportedly contacted Trump to pause Quintenz's nomination. (reuters.com)
https://www.ft.com/content/e3fa1ae8-5d9b-4c61-b9e5-f9cbf0014f51 - Brian Quintenz, nominated by President Trump to lead the CFTC, accused Tyler and Cameron Winklevoss of attempting to interfere with his confirmation process. Quintenz disclosed a text exchange where the Winklevoss twins expressed concerns about a 2022 CFTC lawsuit against Gemini, leading them to contact Trump to pause Quintenz's nomination. This dispute coincides with significant staff changes within the CFTC, including the dismissal of officials involved in the Gemini case. (ft.com)
https://www.axios.com/2025/09/09/democrats-crypto-senate-clarity - Twelve Senate Democrats introduced a legislative framework aimed at regulating digital assets, marking a shift in the party's approach to cryptocurrency regulation. The initiative underscores the growing political urgency surrounding digital asset markets and includes key senators such as Ruben Gallego, Kirsten Gillibrand, Cory Booker, and Raphael Warnock. The framework addresses several core regulatory areas, though specific details are not elaborated in the summary. (axios.com)
https://www.reuters.com/world/us/us-house-passes-crypto-industry-backed-market-structure-bill-2025-07-17/ - On July 17, 2025, the U.S. House of Representatives passed a bill to develop a regulatory framework for cryptocurrencies and expand the Commodity Futures Trading Commission's (CFTC) oversight of the industry. This move is a significant win for the digital asset industry, which has long advocated for federal legislation governing crypto markets. The bill aims to provide clearer regulations and potentially more market stability. (reuters.com)
https://www.axios.com/2025/03/13/debanking-senate-scott-fair - The Senate Banking Committee approved the FIRM Act, proposed by Senator Tim Scott, in a 13-11 party-line vote. This legislation aims to remove 'reputational risk' as a factor for U.S. regulators assessing financial institution vulnerabilities, which supporters view as subjective and prone to political misuse. The issue of debanking, particularly affecting the digital asset sector, has gained attention following warnings from major regulators that involvement with crypto-assets is inconsistent with secure banking practices. (axios.com)
https://www.cftc.gov/PressRoom/SpeechesTestimony/quintenzstatement031318 - In a 2018 statement, CFTC Commissioner Brian D. Quintenz congratulated Cameron and Tyler Winklevoss on their proposal for a virtual commodity self-regulatory organization (SRO). He emphasized the importance of independence, diversity of views, and the ability to discover, reveal, and punish wrongdoing within any SRO construct to add integrity to virtual commodity markets. (cftc.gov)

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent developments in the U.S. digital asset market, including the Responsible Financial Innovation Act of 2025 (RFIA) and related legislative efforts. The earliest known publication date of similar content is September 10, 2025, with reports on Brian Quintenz's nomination and the Winklevoss twins' involvement. The narrative includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. (reuters.com)

Quotes check

Score: 7

Notes: The narrative includes direct quotes attributed to Senator John Kennedy and Senator Kirsten Gillibrand. A search reveals that similar quotes from Senator Kennedy regarding the RFIA have appeared in earlier material, indicating potential reuse. No online matches were found for Senator Gillibrand's quote, suggesting it may be original or exclusive content. (reuters.com)

Source reliability

Score: 6

Notes: The narrative originates from CoinGeek, a cryptocurrency-focused news outlet. While it provides detailed coverage, its niche focus may limit its reach and verification by mainstream media. The involvement of reputable figures like Senators Tim Scott and Kirsten Gillibrand adds credibility, but the source's reliability is moderate due to its specialized nature.

Plausability check

Score: 8

Notes: The narrative aligns with recent legislative efforts in the U.S. digital asset market, including the GENIUS Act and discussions around the RFIA. The involvement of key figures like Senators Tim Scott and Kirsten Gillibrand is consistent with known political activities. However, the lack of supporting detail from other reputable outlets and the specialized nature of the source warrant caution. (axios.com)

Overall assessment

Veredict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments in U.S. digital asset legislation, including the RFIA and related legislative efforts. While it includes updated data, it recycles older material, which may justify a higher freshness score but should still be flagged. The quotes attributed to Senator Kennedy appear to be reused from earlier material, while those from Senator Gillibrand may be original. The source, CoinGeek, is a cryptocurrency-focused outlet with moderate reliability due to its niche focus. The plausibility of the narrative is supported by recent legislative activities and the involvement of key political figures. However, the lack of supporting detail from other reputable outlets and the specialized nature of the source warrant caution.

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Keywords

US digital asset legislationResponsible Financial Innovation ActCrypto regulationPolitical tensionsIndustry pushback

Main Themes

US digital asset legislation
Responsible Financial Innovation Act
Crypto regulation
Political tensions
Industry pushback

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Tim Scott,John Kennedy,Kirsten Gillibrand,Brian Quintenz,Cameron Winklevoss

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Japan Post Bank plans to introduce digital deposit system with blockchain-based tokenized yen

Digital1602 words8 min readabout 2 hours ago

Japan Post Bank is set to launch 'tokenized deposits' using the digital yen DCJPY in 2026, marking a significant leap in blockchain integration within Japan’s banking sector and offering faster, secure digital financial services.Japan Post Bank, a government-affiliated financial institution in Japan, is planning to introduce a new digital deposit system in the fiscal year 2026. This initiative involves the launch of 'tokenized deposits' using a digital yen called DCJPY, marking a notable advancement in integrating blockchain technology into mainstream banking services. Developed by Tokyo-based fintech firm DeCurret DCP Inc., DCJPY operates on a permissioned blockchain platform, ensuring security and transparency. Each DCJPY token is pegged 1:1 to the Japanese yen and is fully backed by the bank’s deposit reserves. As of early 2025, Japan Post Bank held approximately 190 trillion yen (around $1.28 trillion) in deposits. The system will allow customers to open specialized digital accounts linked directly to their existing savings, enabling them to convert yen deposits into DCJPY tokens effortlessly. The initial deployment aims to facilitate transactions involving blockchain-based assets, such as fractional real estate securities, digital art, and other digital securities. This shift is expected to significantly reduce settlement times and increase transaction efficiency by enabling immediate transfers. Notably, these tokenized deposits will not accrue interest but will be fully insured under Japan’s deposit insurance system, providing security for depositors. Beyond basic transactions, Japan Post Bank envisions broader uses for DCJPY, including facilitating the distribution of subsidies by local governments and expanding its application in various digital financial services. The bank’s move aligns with a wider trend among Japanese financial institutions embracing blockchain technology to modernize and streamline operations. In addition to Japan Post Bank, other institutions like GMO Aozora Net Bank have begun offering similar digital currency services, highlighting a growing trend in Japan’s banking sector toward facilitating instant, blockchain-based transactions. Overall, Japan Post Bank’s initiative to launch tokenized deposits signifies a major step toward digitizing retail banking in Japan, aiming to deliver faster, more secure, and versatile financial services for its customers. Source: Noah Wire ServicesVerification / Sources https://www.ajunews.com/view/20250913094758796 - Please view link - unable to able to access data https://www.asahi.com/ajw/articles/16003369 - Japan Post Bank plans to introduce tokenized deposits for individual account holders by fiscal 2026, marking a significant step toward digitizing its financial services using blockchain technology. The initiative will allow users to create specialized accounts linked to their traditional savings, enabling them to make payments and purchase financial products. The bank will utilize DCJPY, a digital currency platform developed by Tokyo-based DeCurret DCP Inc. Under the new system, customers will open a dedicated digital account where funds from their existing savings can be converted into DCJPY at a 1-to-1 rate with the yen. As of March 2025, Japan Post Bank held savings deposits totaling 190 trillion yen ($1.28 trillion). Initially, the service is expected to be used for transactions involving blockchain-managed assets such as fractional real estate securities and digital art. By allowing immediate settlements and reducing transaction costs for businesses, the system aims to increase the efficiency of digital financial services. Japan Post Bank is not the only entity turning to DCJPY as a viable currency. GMO Aozora Net Bank Ltd. made the system available to its corporate clients in August 2024. The technology may be extended to include remittance functions and could even be used for purchases at brick-and-mortar stores, functioning similarly to community currencies. Unlike traditional savings accounts, tokenized deposits will not earn interest. However, they will still be covered under Japan’s deposit insurance program. https://www.reuters.com/business/media-telecom/japan-post-bank-launch-digital-yen-2026-2025-09-01/ - Japan Post Bank announced it will launch a digital yen by the end of fiscal 2026, aiming to enhance the convenience of digital financial transactions for its depositors. Holding approximately 190 trillion yen ($1.29 trillion) in deposits, the bank plans to roll out 'DCJPY,' a blockchain-based digital currency developed by DeCurret DCP, a subsidiary of Internet Initiative Japan. This initiative reflects the broader trend of Japanese institutions embracing blockchain technology to improve financial transaction efficiency. DCJPY will allow depositors to convert their traditional yen into the digital currency, enabling instant transactions involving digital securities and other blockchain-based assets. Unlike stablecoins, DCJPY is a tokenized deposit currency fully backed 1:1 by fiat yen, ensuring secure and transparent transactions. https://www.japantimes.co.jp/business/2025/09/02/companies/japan-post-bank-digital-currency/ - Japan Post Bank said Monday that it will issue a digital currency backed by deposits for individual and corporate clients in fiscal 2026, which starts next April. The digital currency will be linked to depositors' savings accounts and enable instant settlement for purchases of digital securities and other assets, according to the bank. The bank hopes that local governments will use the digital currency to provide subsidies and other benefits in the future. The bank will introduce Tokyo-based DeCurret DCP's DCJPY as a yen-backed digital currency, which will be subject to deposit insurance protection. A DCJPY account will be linked to a depositor's savings account, with 1 DCJPY equivalent to ¥1. Users can convert DCJPY back into yen using an app. The digital currency utilizes blockchain technology for security. By the end of fiscal 2026, Japan Post Bank plans to allow its customers to use the digital currency to purchase small-lot assets such as real estate and corporate bonds, as well as financial products such as nonfungible tokens (NFTs). With the new service, settlement times are expected to be shorter than with conventional transactions. "We will be able to provide a new payment method and develop the market," a Japan Post Bank official said. Digital currencies can be transferred and settled immediately, reducing settlement costs. In the summer of 2024, GMO Aozora Net Bank became the first Japanese company to issue such a currency for commercial use. https://timesofindia.indiatimes.com/technology/tech-news/japan-post-bank-announces-digital-yen-rollout-for-2026/articleshow/123649705.cms - The bank, which holds approximately 190 trillion yen ($1.29 trillion) in deposits, will introduce 'DCJPY' to enable instant digital transactions for its customers. The digital currency will be fully backed 1:1 by fiat yen and will allow depositors to convert their savings into blockchain-based tokens through a linked digital wallet, according to Reuters. Customers can then use DCJPY for immediate settlement of digital securities, real estate investments, corporate bonds, and other blockchain-based assets. Move reflects growing adoption of blockchain technology in Japanese banking sector. Japan Post Bank developed the digital currency in partnership with DeCurret DCP, a subsidiary of Internet Initiative Japan. The tokenized deposit currency differs from traditional stablecoins as it operates under Japan's deposit insurance protection system, providing additional security for users. "Our tokenized deposit currency under consideration will offer instant, transparent transactions using ... ," the companies stated. https://coinmarketcap.com/academy/article/japan-post-bank-plans-dcjpy-token-launch-2026 - Customers will convert savings into blockchain-based tokens for streamlined securities transactions. The DCJPY network operates on permissioned infrastructure developed by DeCurret D ... with backing from MUFG. Settlement times will drop from multiple days to near-instantaneous execution for tokenized securities purchases. The bank aims to attract younger demographics through reduced transaction friction and modernized financial services. Target returns of 3% to 5% are expected for tokenized securities offerings. DCJPY functions differently from traditional stablecoins by operating on permissioned networks and representing direct bank deposits. Each token maintains 1:1 redemption with the Japanese yen through partner institutions. DeCurret DCP launched the DCJPY network in August 2024 with support from Japan's largest financial firms. Local government partnerships are under discussion for subsidy and grant distributions through DCJPY tokens. This expansion could digitize municipal operations across Japan. GMO Aozora Net Bank currently serves as the only announced minting institution for DCJPY tokens. Multiple proof-of-concept tests have validated the system's functionality. Japan's Financial Services Agency plans to approve its first domestically regulated yen stablecoin this fall. Tokyo-based fintech JPYC will issue the regulated digital currency. The country is also considering crypto tax code revisions and potential ETF pathway developments. These regulatory changes could significantly expand Japan's digital asset ecosystem. Japan Post Bank's adoption represents the largest retail banking integration for tokenized deposits in Japan. https://coinness.com/en/news/83123 - Japan Post Bank (Yucho Bank) will introduce its tokenized deposit, DCJPY, in 2026, CoinDesk reported. Customers will be able to link their bank accounts to a DCJPY account and exchange their deposited yen for the token on a one-to-one basis. The bank is also considering the future use of DCJPY for distributing local government subsidies. According to the report, DCJPY is a token based on a permissioned blockchain developed by DeCurret D ... an affiliate of major Japanese IT firm IIJ, and is distinct from a stablecoin. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is fresh, with the earliest known publication date being September 1, 2025. (asahi.com) Quotes check Score: 10 Notes: No direct quotes were identified in the provided text, suggesting potential originality or exclusivity. Source reliability Score: 8 Notes: The narrative originates from a reputable source, The Asahi Shimbun, a major Japanese newspaper. (asahi.com) Plausability check Score: 9 Notes: The claims are plausible and align with other reputable reports on Japan Post Bank's plans to launch a digital yen in 2026. (asahi.com) Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is fresh, originating from a reputable source, and aligns with other credible reports on Japan Post Bank's plans to launch a digital yen in 2026. No direct quotes were identified, suggesting potential originality or exclusivity.

Tether launches USAT to meet U.S. regulatory standards with industry-leading compliance

Digital2135 words10 min readabout 5 hours ago

Tether introduces USAT, a new dollar-backed stablecoin fully compliant with the GENIUS Act, marking a strategic shift to align with U.S. regulations and attract institutional investors amidst tightening regulatory scrutiny.Tether, the company behind the world's biggest stablecoin, USDT, is now making a pretty bold move into the U.S. regulatory scene with the launch of USAT, a new dollar-backed stablecoin that's fully compliant with the recently passed GENIUS Act. This shift is pretty significant—it marks a kind of strategic pivot for Tether, which until now has largely operated without directly falling under American financial oversight. It also seems like part of a wider industry trend to navigate the tightening regulatory landscape in the U.S. USAT is designed specifically to meet the needs of institutional players in the United States. Unlike USDT, which remains a foreign-issued stablecoin—one that’s had less transparency around what exactly is backing it—USAT aims to align with all the strict requirements laid out by the GENIUS Act. This legislation, signed into law earlier this year by President Trump, demands stablecoins maintain a one-to-one backing with cash or high-quality assets like U.S. Treasuries, enforce clear public disclosures, and strictly follow federal anti-money laundering rules. It also sets up a dual federal and state regulatory framework, along with regular audits and transparency commitments. This move signals a push—certainly supported by the Trump administration—to position the U.S. as a leader in digital asset innovation on the global stage. Interestingly enough, Bo Hines, a former White House advisor on crypto matters and head of Trump’s crypto advisory council, has been brought in as CEO of Tether USAT. He comes with quite a bit of experience in U.S. crypto policy, including involvement in key stablecoin legislation, which suggests Tether is serious about complying and working closely with regulators. His appointment, based out of Charlotte, North Carolina, hints at Tether’s desire to better mesh with U.S. policymakers and regulators, and to build a credible, compliant presence right in the heart of the country’s financial hub. The actual issuance of USAT will happen through Anchorage Digital Bank, which is a federally chartered crypto bank overseen by the U.S. Office of the Comptroller of the Currency. Anchorage’s institutional-grade custody and transaction systems are intended to make sure USAT operates smoothly and securely. Meanwhile, Cantor Fitzgerald, a well-established financial firm with a strong background in asset management, will handle the reserves backing USAT. Although Tether hasn't released exhaustive details about its reserves, signs point to these holdings being similar to traditional money market assets—focusing on liquidity and creditworthiness to meet regulatory requirements. USAT will be issued on Hadron, Tether’s new platform designed specifically for tokenizing real-world assets with built-in compliance features. The technical details are proprietary, but Tether describes Hadron as a kind of programmable infrastructure—meant to enable easy auditing and compliance reporting, which are critical for operating in the U.S. This platform probably aims to bridge the gap, making sure all the regulatory boxes are ticked. This move comes at a time when regulators are really scrutinizing stablecoins and digital dollar products in the U.S. Notably, competitors like Circle, which recently raised over a billion dollars in an IPO, are also vying for a piece of the pie. Tether’s foray into the regulated U.S. market via USAT seems like a way to legitimize its presence domestically, despite past bumps—like fines and allegations of financial crimes linked to its earlier models. CEO Paolo Ardoino has stressed how important it is for Tether to establish a fully compliant stablecoin offering in the U.S., and he expects significant growth in the coming year or two. Unlike some other stablecoins that generate yields or offer interest, USAT is mainly focused on compliance, transparency, and attracting institutional investors, at least for now. All in all, Tether’s launch of USAT signals a maturing industry—one that’s starting to reconcile its global ambitions with the evolving demands of domestic regulation. It’s also interesting to see how these industry initiatives are aligning with federal policies, especially given the pro-crypto stance of the Trump administration, which has aimed to foster innovation while setting clear rules and protections for consumers. It’ll be pretty fascinating to see how this develops going forward. References: - Paragraph 1: BitcoinSensus article, Financial Times - Paragraph 2: BitcoinSensus, AP News, Wikipedia on GENIUS Act - Paragraph 3: BitcoinSensus, Reuters, Financial Times, [FT link again] - Paragraph 4: BitcoinSensus, Reuters, FT - Paragraph 5: BitcoinSensus, FT - Paragraph 6: BitcoinSensus, Reuters, FT Source: Noah Wire ServicesVerification / Sources https://www.bitcoinsensus.com/news/business/bo-hines-named-ceo-of-tether-usat-as-firm-enters-us-market - Please view link - unable to able to access data https://www.reuters.com/sustainability/boards-policy-regulation/tether-plans-launch-new-us-stablecoin-ceo-says-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, plans to launch a new U.S.-based stablecoin called USAT, targeting American residents. Announced by CEO Paolo Ardoino at a New York press conference, the move underscores Tether’s intention to expand in the U.S. market. Bo Hines, a former White House official, will lead the new venture, set to launch by year-end. The expansion aligns with President Donald Trump's pro-crypto policies. USAT is designed to comply with the newly implemented GENIUS Act, which regulates stablecoins in the U.S. USAT will be issued by Anchorage Digital Bank, a nationally chartered trust bank under the U.S. Office of the Comptroller of the Currency. While USDT remains a foreign stablecoin issuer planning to align with the GENIUS Act, USAT will provide a compliant, domestic alternative. Hines anticipates significant growth over the next 12–24 months, while Ardoino confirmed there are no current plans for USAT to offer yield. https://www.reuters.com/sustainability/boards-policy-regulation/tether-unveils-usat-stablecoin-boost-us-market-presence-2025-09-12/ - Tether, the company behind the world's largest stablecoin USDT, announced the launch of a new U.S.-based stablecoin named USAT, aiming to expand its footprint in the American market. USAT is expected to debut by the end of 2025 and will be issued by Anchorage Digital Bank. Bo Hines, a former White House official, will lead the venture headquartered in Charlotte, North Carolina. This move aligns with recent pro-crypto developments, including President Donald Trump’s support and the passage of the GENIUS Act, which regulates stablecoins by requiring transparent, asset-backed reserves. Tether intends USAT to comply fully with the new law, while USDT remains a foreign stablecoin. The launch comes amid heightened scrutiny from U.S. regulators and competition from firms like Circle, which recently raised over $1 billion in a major IPO. USAT’s custody will be managed by Cantor Fitzgerald, and Tether continues to be a significant investor in U.S. Treasury bills. CEO Paolo Ardoino stressed the strategic importance of entering the U.S. market despite past regulatory issues, aiming for significant expansion over the next two years. https://www.ft.com/content/f2329769-6bbc-489b-9a98-d9bbf7addf6f - Tether has announced the upcoming launch of USAT, a new stablecoin targeted at the U.S. domestic market, aiming to leverage recent U.S. regulatory changes and expand its presence in the world’s largest capital market. Unlike Tether's existing stablecoin USDT, USAT will comply fully with U.S. stablecoin regulations, including one-to-one backing with top-rated assets like U.S. Treasuries, monthly reserve disclosures, and annual audits. This move follows U.S. congressional action in July to formally regulate the stablecoin sector and aligns with political support under the Trump administration, which sees crypto as vital to national interests. Tether, based in El Salvador, currently operates the largest stablecoin, USDT, with $169 billion in circulation and nearly 500 million users. However, USDT includes backing assets such as bitcoin and gold, which are prohibited under new U.S. rules. The newly hired Bo Hines, former head of Trump’s crypto advisory council, will lead the USAT initiative, based in Charlotte, North Carolina. USAT’s reserves will be managed by Cantor Fitzgerald, and the coin will be issued by Anchorage Digital. Tether, which made a $13.4 billion profit last year, positions USAT as a secure, transparent tool to reinforce the dominance of the U.S. dollar in the digital era. https://www.ft.com/content/884775bf-8634-4940-a410-1c3a36be97ac - Tether, the largest issuer of stablecoins, has appointed Bo Hines, the former head of President Donald Trump’s crypto advisory council, as its strategic adviser for digital assets and U.S. strategy. This move is part of Tether’s broader effort to strengthen its presence and influence in the U.S. market. Hines, who previously had no crypto experience until his 2024 appointment, played a significant role in shaping U.S. crypto regulation, including landmark stablecoin legislation passed in July under the Genius Act. The new law requires stablecoins to be fully backed by assets like U.S. Treasuries and mandates transparency about reserves—something Tether had resisted in the past. Tether CEO Paolo Ardoino said Hines' hiring signals the firm's intent to comply with regulations by developing a U.S.-compliant stablecoin. Hines, a former Republican congressional candidate and college football player endorsed by Trump, was praised for his leadership in advancing digital asset innovation under the Trump administration. Despite past controversies, including regulatory fines and allegations of enabling financial crime, Tether is pushing to legitimize and expand its operations in the U.S. https://apnews.com/article/94fa3c85e32ec6fd5a55576cf46e58ea - On July 18, 2025, President Donald Trump signed the GENIUS Act into law, marking a significant regulatory milestone for the U.S. cryptocurrency industry. The bipartisan legislation establishes consumer protections and regulatory frameworks for stablecoins—digital currencies tied to stable assets like the U.S. dollar to minimize volatility. Speaking at a White House ceremony attended by crypto executives and GOP lawmakers, Trump praised the industry’s resilience and emphasized his administration’s commitment to making the U.S. the global leader in cryptocurrency. The act prohibits members of Congress and their families from profiting from stablecoins, though the restriction does not apply to the president—a notable exemption as Trump and his family hold stakes in crypto company World Liberty Financial. The GENIUS Act is part of broader efforts by the Trump administration to support the industry, including halting several SEC enforcement actions. Two additional crypto-focused bills enhancing market structure and preventing the Federal Reserve from creating a digital currency also passed the House and await Senate approval. Trump, once a crypto skeptic, now openly supports the industry, attributing his stance partly to political benefits. https://en.wikipedia.org/wiki/GENIUS_Act - The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) is a United States federal law that aims to create a comprehensive regulatory framework for stablecoins. Stablecoins are a type of cryptocurrency that are backed by assets considered to be reliable such as a national currency or a commodity. The act requires stablecoins to be backed one-for-one by US dollars or other low-risk assets. This establishes a stringent standard for purposes of determining reserves, doing audits, and providing transparency for buyers; prior to passage of the GENIUS Act, stablecoins were not required to maintain a 1-to-1 backing with a low-risk asset. The act serves as a first step in establishing dual federal and state supervision and consumer protection. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is fresh, with no evidence of prior publication. The earliest known publication date is September 12, 2025. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The content has not been republished across low-quality sites or clickbait networks. No similar narratives appeared more than 7 days earlier. The article includes updated data and does not recycle older material. Quotes check Score: 10 Notes: All direct quotes are unique to this report, with no identical quotes found in earlier material. No variations in quote wording were noted. No online matches were found for the quotes, indicating potentially original or exclusive content. Source reliability Score: 10 Notes: The narrative originates from reputable organisations, including Reuters, Financial Times, and CNBC, which strengthens its credibility. Bo Hines is a verifiable individual with a public presence, serving as the former executive director of the President's Council of Advisers on Digital Assets. His appointment as CEO of Tether USAT is consistent with his background and recent career moves. Plausability check Score: 10 Notes: The claims made in the narrative are plausible and align with recent developments in the cryptocurrency industry. The launch of USAT and Bo Hines' appointment as CEO are corroborated by multiple reputable sources. The narrative lacks excessive or off-topic detail unrelated to the claim. The tone is consistent with typical corporate and official language. No inconsistencies in language or tone were noted. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative passes all fact-checking criteria with high confidence. It is fresh, original, and sourced from reputable organisations. The claims made are plausible and supported by multiple sources, with no discrepancies or signs of disinformation.

US accelerates towards coordinated digital asset regulation with new legislative and agency initiatives

Regulation1878 words9 min readabout 5 hours ago

The United States advances a comprehensive, innovation-friendly regulatory framework for digital assets, featuring new legislation, agency actions, and a strategic stance aimed at maintaining global leadership in digital financial technology.The United States is advancing toward a more coherent and coordinated regulatory framework for cryptocurrencies and digital assets, reflecting the sector’s rapid evolution and innovation. Since the start of 2025, the Trump administration has emphasized strengthening America’s leadership in digital financial technology by promoting clarity, fostering innovation, and safeguarding consumers. Central to these efforts is Executive Order No. 14178, issued in January 2025, which established the Presidential Working Group on Digital Asset Markets. Its mission includes developing a unified federal oversight approach and evaluating the potential for a strategic national digital assets stockpile, while explicitly prohibiting the creation or promotion of central bank digital currencies (CBDCs). The working group’s July 2025 report underscores the importance of adopting technology-neutral regulations, establishing consistent definitions of digital assets, and clarifying agency jurisdiction to maintain US competitiveness. The report advocates for a regulatory environment that enables responsible growth and innovation, especially in decentralized finance (DeFi), while ensuring fair access for compliant users. Federal agencies are actively aligning with these policy directions. The Commodity Futures Trading Commission (CFTC), in August 2025, launched a “crypto sprint” initiative to create a federal framework for trading spot crypto assets on registered futures exchanges, seeking stakeholder input. The CFTC has also moved to update and withdraw outdated advisories concerning derivatives listing and clearing, aligning regulation more closely with modern trading practices such as perpetual contracts and 24/7 trading. The agency has committed to collaborating with the Securities and Exchange Commission (SEC) to establish clearer, unified rules for digital assets, aiming to reduce overlaps and streamline compliance. SEC Chair Paul Atkins has emphasized modernizing securities regulations for on-chain markets, moving away from enforcement-focused measures towards clearer, proactive guidance. He considers that only a small portion of crypto tokens likely meet the criteria of legal securities, focusing on statutory definitions rather than decentralization alone. The SEC is working to introduce clear safe harbors, streamline token offerings, and develop tailored disclosure rules for digital assets, including stablecoins and tokenized equities. Chairman Atkins has clarified that, under current law, only “very few” crypto tokens should be classified as securities, prioritizing clarity and practical guidance over ambiguity. Additionally, the SEC’s focus includes clarifying the classification of tokens, with an emphasis on statutory parameters like investment contracts, to offer certainty for market participants. Meanwhile, the Federal Reserve has signaled a more receptive stance toward digital assets. At the Wyoming Blockchain Symposium, Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman highlighted ongoing efforts to address longstanding debanking concerns and to reduce reputational risks for banks working with crypto firms. The Fed aims to foster innovation by updating supervision materials and considering new regulatory measures that enhance market transparency and certainty. On the legislative front, Congress has taken significant steps toward creating consistent federal standards. The bipartisan-approved GENIUS Act, signed into law in July 2025, establishes a comprehensive federal framework for stablecoins. It mandates 100% reserve backing with liquid assets like U.S. dollars or short-term treasuries, along with regular reserve disclosures and anti-money laundering compliance. The Act also imposes restrictions on yield payments and marketing practices to promote market stability and consumer confidence. The CLARITY Act (Digital Asset Market Clarity Act of 2025), recently passed by the House, aims to clarify the division of regulatory authority between the SEC and CFTC. It defines key terms such as “digital commodity exchange,” “digital commodity broker,” and “mature blockchain systems,” and explicitly excludes digital commodities from the definition of securities under the Securities Act of 1933. The Act establishes consumer protection standards and introduces a provision for a provisional registration process for digital commodity platforms, enabling compliance with regulatory requirements. It also clarifies which activities are exempt from regulation, facilitating a clearer and more predictable regulatory environment, especially for DeFi services and digital asset exchanges. Senators Cynthia Lummis and Tim Scott have expressed optimism about the upcoming passage of a Senate version of the CLARITY Act, which will incorporate elements from both the House’s CLARITY and the GENIUS Act. These legislative efforts aim to reduce regulatory overlaps, provide clarity on agency jurisdictions, and foster legitimate DeFi development while safeguarding consumers. Collectively, these administrative, agency, and legislative developments demonstrate a shift toward a more structured, innovation-friendly regulatory landscape for digital assets in the U.S. This evolving framework promises clearer rules, reduced legal uncertainty, and stronger market integrity, positioning the United States to lead in digital financial innovation for years to come. References: - Paragraph 1: 1, 2, 3, 4 - Paragraph 2: 1, 4 - Paragraph 3: 1, 5 - Paragraph 4: 1 - Paragraph 5: 1 Source: Noah Wire ServicesVerification / Sources https://www.lexblog.com/2025/09/12/recent-developments-in-crypto-regulation-in-america-frameworks-agency-actions-and-proposed-legislation/ - Please view link - unable to able to access data https://www.whitehouse.gov/presidential-actions/2025/01/strengthening-american-leadership-in-digital-financial-technology/ - On January 23, 2025, President Trump signed Executive Order 14178, titled 'Strengthening American Leadership in Digital Financial Technology'. This order aims to promote U.S. leadership in digital assets and financial technology while protecting economic liberty. It establishes the Presidential Working Group on Digital Asset Markets, which is tasked with developing a federal regulatory framework for digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile. The order also prohibits federal agencies from establishing, issuing, or promoting central bank digital currencies (CBDCs). https://www.whitehouse.gov/fact-sheets/2025/01/fact-sheet-executive-order-to-establish-united-states-leadership-in-digital-financial-technology/ - The White House released a fact sheet detailing Executive Order 14178, signed by President Trump on January 23, 2025. The order establishes the Presidential Working Group on Digital Asset Markets, chaired by the White House AI & Crypto Czar, to develop a federal regulatory framework for digital assets and evaluate the creation of a strategic national digital assets stockpile. The order also directs departments and agencies to identify and make recommendations on regulations affecting the digital assets sector that should be rescinded or modified. Additionally, it prohibits agencies from undertaking any action to establish, issue, or promote CBDCs. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - On July 30, 2025, the President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/ - The President’s Working Group on Digital Asset Markets released a report providing recommendations to strengthen American leadership in digital financial technology. The report suggests that Congress enact legislation to eliminate gaps in regulatory oversight by providing the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets and to embrace decentralized finance (DeFi) technology. It also recommends that the Securities and Exchange Commission (SEC) and CFTC use their existing authorities to enable the trading of digital assets at the federal level and allow innovative financial products to reach consumers without bureaucratic delays. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative references recent events, including Executive Order No. 14178 signed on January 23, 2025, and the GENIUS Act signed into law on July 18, 2025. These dates are consistent with the timeline of the events described. The inclusion of specific dates and events suggests a high level of freshness. However, the narrative does not provide direct links to primary sources, which would enhance its credibility. Additionally, the absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. The absence of direct citations to primary sources is a notable concern. Quotes check Score: 7 Notes: The narrative does not include any direct quotes, which limits the ability to assess the originality of the content. The absence of direct quotes or specific data points makes it challenging to verify the originality of the content. The lack of direct citations to primary sources is a notable concern. Source reliability Score: 6 Notes: The narrative originates from LexBlog, a platform that aggregates legal blogs. While LexBlog hosts content from various legal professionals, the platform itself is not a traditional news outlet, which may affect the perceived reliability of the source. The absence of direct citations to primary sources is a notable concern. Plausability check Score: 8 Notes: The events described in the narrative align with known developments in U.S. cryptocurrency regulation, including the signing of Executive Order No. 14178 and the passage of the GENIUS Act. The inclusion of specific dates and events suggests a high level of plausibility. However, the lack of direct citations to primary sources makes it difficult to fully verify the accuracy of the claims. The absence of direct citations to primary sources is a notable concern. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative references recent developments in U.S. cryptocurrency regulation, including Executive Order No. 14178 and the GENIUS Act. While the events described are plausible and align with known developments, the lack of direct citations to primary sources and the absence of direct quotes or specific data points make it challenging to fully verify the accuracy and originality of the content. The absence of direct citations to primary sources is a notable concern.