December 1: This week in digital asset federal policy
DC Decentralized: A weekly newsletter on blockchain and digital asset federal policy
This week decoded
This week in digital asset federal policy, Congress returns from the Thanksgiving recess for the legislative sprint to the end of the year. While finalizing legislative priorities like the National Defense Authorization Act (NDAA) will dominate attention, Congress will also attempt to catch up on lost time from the government shutdown. Among Senate priorities will be resolving the bracketed tough provisions in the Senate Agriculture market structure draft and readying both the Senate Banking and Agriculture bills for markup, as well as continuing to educate tax writers on both sides of the Capitol on digital asset tax policy.
Read more below
Congress
Hearings
Last week
Congress was in recess for the Thanksgiving holiday.
This week
On December 2, the House Financial Services Committee holds a hearing on Oversight of Prudential Regulators.
Legislation
Reps. Chris Pappas (D-NH) and Tony Gonzales (R-TX) introduced the Dark Web Interdiction Act of 2025 to prohibit the delivery of opioids through the dark web and establish the Joint Criminal Opioid and Darknet Enforcement Task Force within the FBI to detect, disrupt, and dismantle illicit marketplaces. The bill includes a mandated report to Congress on virtual currency use in opioid trafficking. (Text)
Reports, Meetings, and Events
House Judiciary Committee Ranking Member Jamie Raskin (D-MD) released a staff report on “how President Donald Trump and his family have transformed the presidency into a personal money-making operation, adding billions of dollars to his net worth through cryptocurrency schemes entangled with foreign governments, corporate allies, and criminal actors.” (Report)
Trump Administration
Securities and Exchange Commission (SEC)
On December 4, the SEC’s Investor Advisory Committee holds a virtual meeting on Regulatory Changes in Corporate Governance and the Tokenization of Equity Securities. (Event)
Commodity Futures Trading Commission (CFTC)
Acting Chair Caroline Pham announced that the CFTC is seeking nominations for the CFTC CEO Innovation Council, which will advise on digital asset policy. The deadline for submissions is December 8. (Press release)
Consumer Financial Protection Bureau (CFPB)
On December 10, the CFPB holds a virtual meeting of the Consumer Advisory Board to discuss fair lending and debanking. (Register)
Noteworthy Quotes and Events
ADMINISTRATION
Securities and Exchange Commission (SEC)
Commissioner Hester Peirce posted “ICYMI: the SEC staff recently issued a common-sense no-action letter for another DePIN project, this one related to decentralizing the provision of energy and optimizing its use”
Commodity Futures Trading Commission (CFTC)
Acting Chair Caroline Pham posted “Are you locked in? CFTC CEO Innovation Council will ensure we hit the ground running to take on our expanded mission over crypto and prediction markets with responsible regulation. America’s Golden Age of Innovation is here. Nominations due Dec 8.”
In a statement, Pham said, “The U.S. is leading a new era in market structure, and the CFTC is at the forefront of this renaissance accelerated by innovation and technology. The CFTC stands ready to carry out our mission over expanded markets and products, including crypto and digital assets, and ensure our markets remain vibrant and resilient while protecting all participants. In order to hit the ground running, it is critical that the CFTC drives public engagement with the support of expert industry leaders and visionaries who are building the future. That is why today I am calling upon CEOs to join us in shaping responsible regulations that will lay the foundation for America’s Golden Age of Innovation.” (Press release)
CONGRESS
House Judiciary Dems posted “An explosive new House Judiciary Committee report exposes the Trump family’s multi-billion-dollar crypto empire, fueled by self-dealing and corrupt foreign interests, the dismantling of anti-corruption safeguards, and pardons for corporate cronies.”
Rep. Young Kim (R-CA) posted “Crypto innovation shouldn’t be crushed by unclear rules. That’s why I backed the CLARITY Act and its fix to protect everyday developers and blockchain users. Encouraged to see Chairman Scott preparing a vote in the Senate.”
Sen. Cynthia Lummis (R-WY) posted “Operation Chokepoint 2.0 regrettably lives on. Policies like JP Morgan’s undermine confidence in traditional banks and send the digital asset industry overseas. It’s past time we put Operation Chokepoint 2.0 to rest to make America the digital asset capital of the world.”
What I’m Reading This Week
IRS crackdown on popular crypto ‘tax cheat’ begins with 2025 filing year, Cheryl Winokur Munk, CNBC.
Cryptoasset Taxation and Market Structure Developments, Lee A. Sheppard, Tax Notes.
The Fashion in Crypto Staking Accommodation, Lee A. Sheppard, Tax Notes.