- The GENIUS Act updates stablecoin oversight by dividing regulatory authority between state and federal levels while imposing stricter transparency and compliance rules.
- Trump plans to reverse “Operation Choke Point 2.0” via an executive order, aiming to improve banking access for crypto firms and push for Federal Reserve master accounts for crypto banks.
- The House repealed an IRS rule requiring brokers to report crypto user data, with bipartisan support; the resolution now awaits Trump’s signature to finalise the rollback.
A lot has happened in the past couple of days in the legal landscape of the cryptocurrency industry.
First, lawmakers have introduced a fresh draft of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. According to a report from CoinDesk, the new version seeks to reshape stablecoin oversight by dividing regulatory duties between state and federal authorities while tightening enforcement and transparency rules for issuers.
The draft would allow states to supervise stablecoin issuers with market caps up to US$10B (AU$15B) in partnership with federal regulators. It also introduces a waiver process for larger issuers, permitting them to remain under state oversight if they can demonstrate strong capital, a proven track record, and are monitored by an experienced state regulator.
Some additional provisions require stablecoin issuers to publish monthly liquidity reports detailing reserve compositions and the total number of stablecoins in circulation. All reserves must be held in US currency, demand deposits, treasuries, or other approved assets.
Related: Ohio Legislators Propose Bill to Ban Crypto Taxation on Digital Asset Payments
Trump to Overturn Operation Chokepoint 2.0?
In the meantime, Donald Trump is set to sign an executive order to overturn what the crypto community calls “Operation Choke Point 2.0”, a series of measures limiting the integration of crypto platforms with traditional financial systems.
As sources familiar with the matter told Decrypt, This would also offer crypto-friendly financial institutions a broader range of banking opportunities with key industry players.
Proponents argue that these restrictions have unfairly denied legitimate crypto businesses access to essential banking services. The order is anticipated to direct regulatory agencies to adopt a more accommodating stance, ensuring that crypto firms receive comparable financial support to other industries.
A significant aspect of the proposed changes is the push to grant Federal Reserve master accounts to crypto banks, which would allow direct transactions with the Fed and therefore reduce reliance on intermediaries — a hurdle that has plagued institutions like Custodia under the previous administration.
But the move could face resistance, as the Federal Reserve operates independently and may challenge any directive that could impact financial stability and risk management.
Related: Texas Advances Bill to Senate as Some US States Drop Bitcoin Reserve Efforts
The House Repeals IRS Rule
Moreover, the US House of Representatives voted Tuesday to repeal an IRS regulation that required custodial brokers to collect and report user data to the Internal Revenue Service. The measure garnered bipartisan support from 291 House members and now moves to President Trump’s desk for a signature.
The joint resolution, introduced by Representative Mike Carey (R-Ohio) and Senator Ted Cruz (R-Texas), seeks to overturn an IRS rule finalised last December, which blockchain groups strongly opposed.
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