January 26: This week in digital asset federal policy
DC Decentralized: A weekly newsletter on U.S. policy developments in blockchain and digital assets
This week decoded
This week in federal digital asset policy, Congressional activity remains uncertain as a major winter storm has kept many lawmakers from returning to Washington. The Senate Agriculture Committee’s scheduled markup on digital asset market structure legislation may be delayed as a result. Chair John Boozman (R-AR) has released updated bill text, though it currently lacks support from committee Democrats, setting the stage for a likely partisan markup once it proceeds.
The Senate Banking Committee has indicated it will shift its attention from market structure to housing legislation, planning to return to digital asset legislation later in March. However, the schedule could slip further if Congress fails to pass government funding by Friday, triggering a federal shutdown.
On the regulatory front, the SEC and CFTC will hold a joint event this week focused on interagency coordination and progress toward achieving President Trump’s goal of making the United States the global leader in digital assets.
Read more below
Congress
Hearings
Last week
On January 21, the House Small Business Rural Development, Energy, and Supply Chains Subcommittee held a hearing on Empowering Rural America Through Investment in Innovation.
This week
On January 27, the Senate Agriculture, Nutrition and Forestry Committee is scheduled to hold a markup of crypto market structure legislation.
Upcoming
On February 4, the House Financial Services Capital Markets Subcommittee holds a hearing on A New Day at the SEC: Restoring Accountability, Due Process, and Public Confidence.
On February 4, the House Financial Services Committee holds a hearing on The Annual Report of the Financial Stability Oversight Council.
On February 11, the House Financial Services Committee holds a hearing on Oversight of the Securities and Exchange Commission.
Legislation
The House Financial Services Committee passed the Combating Money Laundering in Cyber Crime Act of 2025 to strengthen the section 1960 authority of the United States Secret Service to investigate various crimes related to digital asset transactions and to counter transnational cyber criminal activity, including unlicensed money transmitting businesses, structured transactions, and fraud against financial institutions. (Text)
Senate Agriculture Chair John Boozman (R-AR) released the Republican draft of his committee’s market structure legislation. (Text)
House Agriculture Committee Ranking Member Angie Craig (D-MN) introduced the Presidential Conflicts of Interest Accountability Act to require the President and Vice President and their immediate family members to disclose financial interests and divest of any financial interest posing a potential conflict of interest. (Text)
Correspondence
The OCC responded to a letter from Sen. Elizabeth Warren (D-MA) regarding concerns with World Liberty Financial’s application to establish a national trust bank. The response from Comptroller of the Currency Jonathan Gould states “…it is vital the OCC return to normal order. This means adhering to the law and reviewing all applications, including applications to establish national banks, in an apolitical, nonpartisan and objective manner, supporting both innovative and traditional approaches to the very old business of banking.” (Letter)
Trump Administration
Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
SEC Chair Paul Atkins and CFTC Chair Michael Selig will hold a joint event on January 27 to discuss harmonization between the two agencies and their efforts to deliver on President Trump’s promise to make the United States the crypto capital of the world. (Register)
CFTC Chair Mike Selig published an op-ed in the Washington Post entitled “America’s Financial Markets are Ready for a Golden Age,” announcing the launch of the “Future-Proof” initiative at the CFTC. (Op-ed)
Noteworthy Quotes and Events
ADMINISTRATION
White House
In remarks at the World Economic Forum at Davos, President Trump said, “I’m also working to ensure America remains the crypto capital of the world… Congress is working very hard on crypto market structure legislation… Which I hope to sign very soon, unlocking new pathways for Americans to reach financial freedom.” (Press release)
The White House posted “Thanks to President Trump, America is the CRYPTO CAPITAL of the WORLD”
White House AI & Crypto Czar David Sacks told CNBC, “We’re not going to have a separate banking industry and crypto industry. It’s going to be one digital assets industry… I bet you over time the banks like the idea of paying yield because they’re going to be in the stablecoin business… Everyone offering the same product should be regulated in the same way.” (CoinDesk)
On market structure legislation, Sacks said, “A good compromise leaves everyone a little bit unhappy.” (CoinDesk)
President’s Council of Advisors for Digital Assets Executive Director Patrick Witt posted “‘No bill is better than a bad bill.’ What a privilege it is to be able to say those words thanks to President Trump’s victory, and the pro-crypto administration he has assembled. But let’s not kid ourselves. There *will* be a crypto market structure bill — it’s a question of when, not if. Assuming a multi-trillion dollar industry will continue to operate indefinitely without a comprehensive regulatory framework is pure fantasy. So, do we take advantage of the opportunity to pass a bill now, with a pro-crypto President, control of Congress, excellent regulators at the SEC and CFTC to write the rules, and a healthy industry? Or do we fumble the ball and allow Dems to write punitive legislation in the wake of a future financial crisis à la Dodd-Frank? You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more. Let’s keep working to improve the product, recognizing that compromises will need to be made in order to get 60 votes in the Senate, but let’s not let perfect be the enemy of the good.”
Securities and Exchange Commission (SEC)
The SEC posted “Save the Date! We’re partnering with CFTC on Jan. 27 to discuss harmonization between our agencies and our efforts to deliver on realDonaldTrump’s promise to make the US the crypto capital of the world.”
The SEC also posted “NEXT WEEK: We are partnering with the CFTC to hold a joint event on harmonization and U.S. financial leadership in the crypto era. The event, held at CFTC headquarters, will be open to the public and livestreamed on our website.”
Commodity Futures Trading Commission (CFTC)
CFTC Chair Mike Selig posted “There is no better place in the world to build than the CRYPTO CAPITAL of the WORLD. Thanks to POTUS President Trump’s leadership, the CFTC is modernizing its rules and regulations to ensure that the future of crypto and onchain finance is Made in America.”
Selig also posted “Today, I am launching the ‘Future-Proof’ initiative at the CFTC. We are at a pivotal moment in the evolution of American financial markets. The CFTC must be equipped to serve the markets of the future. The same spirit that drove American farmers to cultivate the Great Plains is inspiring today’s innovators to leave tradfi and conquer unexplored territories. They are leveraging technologies like blockchain to modernize legacy financial systems and build entirely new ones. Instead of fostering ingenuity with new rules, the Biden administration regulated by enforcement — subjecting novel products like digital assets and perpetual futures to legacy rules that could not fit the product, but could fit the prosecutor. Under my leadership, the CFTC is charting a new course. Just as American businesses are modernizing legacy financial systems by harnessing new technologies, the CFTC must upgrade its approach to unleash innovation. We will review our existing rules and regulations and modernize these requirements to ensure a level playing field for new entrants and incumbents alike. Our guidelines should not just fit the product, but also serve a tailored regulatory purpose. Markets shunned by the Biden administration are booming today. Prediction markets have exploded in popularity as participants seek to hedge risks and test their abilities to forecast truth. The digital asset economy has grown from a mere curiosity to a $3 trillion market. The Innovation Advisory Committee will play a major role in Future-Proofing the CFTC’s regulatory approach by advising the agency as it develops purpose-fit rules for prediction markets, digital assets and other emerging asset classes. In the days ahead, we will announce additional policy changes at the CFTC designed to Future-Proof it against rogue regulators. We will end regulation by enforcement and ensure new markets flourish at home with tailored rules that keep American markets the best in the world. The CFTC’s approach will be to deliver the minimum effective dose of regulation — nothing more and nothing less. The agency’s policymaking divisions will develop clear rules of the road for market participants that will be codified through notice-and-comment rulemaking. President Trump POTUS has assembled a dream team in the financial regulatory space, including davidsacks47, SecScottBessent and SECPaulSAtkins. I am humbled to be on this roster. The CFTC will seize this generational opportunity to Future-Proof its approach to regulation and ensure that the great innovations of today and tomorrow are made in America.”
CONGRESS
Market Structure
Senate Agriculture Chair John Boozman (R-AR) issued a statement upon release of the Republican market structure legislative text, saying, “I appreciate Senator Booker and his staff for working with us and providing thoughtful additions as we advance consumer protections and provide new authority to the CFTC. While differences remain on fundamental policy issues, this bill builds on our bipartisan discussion draft while incorporating input from stakeholders and represents months of work. Although it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better. It’s time we move this bill, and I look forward to the markup next week.” (Press release)
In response, the spokesperson for Sen. Cory Booker (D-NJ) said the Senator “has been working in good faith with Senator Boozman for months to craft market structure legislation that can get broad support in the Senate. He is committed to the shared goal of passing legislation that can get signed into law. He will continue to work with the Chairman to get there.” (Politico)
On the Senate Agriculture bill, Sen. Kirsten Gillibrand (D-NY) said she is “very optimistic” and added, “Senators have been working on a bipartisan basis for the last six months pretty intensely, and we have two different bills… because these types of digital assets have some characteristics of both commodities and securities, you need regulation under both those committees… I think both senators on the Banking and Ag committee are working in a bipartisan way and in good faith… hopefully the senators will work on a bipartisan basis to amend that draft to make it stronger, to make it better, to continue their negotiations in the areas where there wasn’t resolution… My hope is that those senators can get back to the drawing board and try to re-include some of those compromises that I thought were very strong.” (CNBC)
On the Senate Banking Committee bill, Gillibrand said, “I think that people are going to keep working over the next few weeks… people want to get this done now.” (CNBC)
On the yield issue, Gillibrand said she is “optimistic that we can find some common-sense bipartisan language that satisfies everyone’s concerns on this issue… I thought we had done that in GENIUS, but if it needs more work, we will keep working. We had very strong language to that effect that we were fine with rewards and points and other programs, but that you couldn’t be offering interest-like products on stablecoins. We wanted to make sure that no consumer was confused about what a stablecoin is versus what a dollar sitting in a bank account is because stablecoins are not FDIC insured. We made sure that every stablecoin was backed by a U.S. dollar or a U.S. dollar equivalent and so we thought the compromise and the language that we concluded with in that bill was very strong.” (CNBC)
Gillibrand added, “I don’t want China or Asia or other parts of the world to have the benefit of these industries because we are unwilling or unable to regulate it. If we want to protect consumers and we want to protect the traditional financial services, the best way to do... is to regulate it. It’s the one thing that actually makes it possible to compete worldwide.” (CNBC)
House Financial Services GOP posted “Chairman RepFrenchHill on the CLARITY Act: ‘This is an important priority not only for President Trump, but for Republicans in the House, where we’ve worked for 4 years on market structure legislation and we’ve passed it twice... You cannot pass a bill just for dollar-backed stablecoins, just like the GENIUS Act that President Trump signed into law last year, without market structure. It’s like passing a bill authorizing cell phones, but there’s no cell towers. This bill is very important and I agree with the President that I hope he can sign it soon.’”
The House Committee on Agriculture posted “RepFrenchHill is spot on—it’s time to get CLARITY to the President’s desk. This bipartisan bill will give clear rules of the road to developers and users of digital assets and unlock innovation in our financial markets. It’s an honor to partner with RepFrenchHill on this.”
Rep. Tom Emmer (R-MN) posted “Agree with our Chairman RepFrenchHill. We need to get market structure legislation to President Trump’s desk ASAP. The House passed the CLARITY Act in July 2025 with the support of every Republican and nearly 80 Democrats. The Senate must get this done.”
Sen. Cynthia Lummis (R-WY) posted “The U.S. doesn’t sit on the sidelines—we lead. The CLARITY Act ensures we stay ahead in digital assets instead of watching from the bench while other nations set the rules. With a pro-crypto president ready to sign, let’s remind the world what American leadership looks like.”
Lummis also posted “Real progress requires real coalition-building. The CLARITY Act brings together voices across the digital asset ecosystem who are ready to move forward. We have the administration. We have the momentum. What we need now is action before the opportunity slips away.”
Miscellaneous
Rep. Scott Perry (R-PA) posted “‘If you have 51 people on the floor of the Senate doing their job, they can demand a vote on any measure.’ Chip Roy is spot on - and it’s really that simple. The Senate must vote on the SAVE Act - along with other no-brainer bills, like eliminating Central Bank Digital Currency.”
Rep. Warren Davidson (R-OH) posted “There is no more consequential difference between patriots and globalists. The globalists cannot control the money by winning CBDC and digital ID. It is “’one ring to rule them all.’”
Financial Services GOP posted a quote from Rep. Scott Fitzgerald (R-WI) supporting the Combating Money Laundering in Cyber Crime Act of 2025, “’The United States Secret Service plays a critical role in investigating cyber enabled financial crime, including the illicit use of digital assets through its global network of cyber fraud task forces and its long standing expertise in financial investigations. Today, a growing share of cyber crime involves unlicensed money transmitting businesses, structured transactions designed to evade reporting requirements, and fraud targeting financial institutions, as defined under the Bank Secrecy Act, which are generally not federally insured.’”
Sen. Bill Hagerty (R-TN) posted “The GENIUS Act, which I proudly sponsored, is now law. This framework makes the U.S. the crypto capital of the world, strengthens US dollar dominance, protects consumers, and fuels innovation.”
Sen. Elizabeth Warren (D-MA) released a statement on the response letter received from the OCC, stating, “President Trump’s unprecedented crypto corruption has metastasized to the banking system. Comptroller Jonathan Gould – who serves at the pleasure of President Trump – is refusing to delay the review of World Liberty Financial’s bank charter application until Trump and his family divest from the company. The OCC’s review is a sham. We have never seen financial conflicts of this magnitude and no crypto market structure legislation should pass Congress without guardrails to stop this kind of corruption.” (Press release)
What I’m Reading This Week
An Unlikely Source of Crypto Innovation: Afghanistan, Emile Ducke, The New York Times.
Quantum Computing Is Already Hitting Bitcoin—Here’s How, Lockridge Okoth, beincrypto.com.
About Zero One Strategies
Zero One Strategies is a specialized government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.
The practice focuses on key areas such as artificial intelligence, digital assets, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.
Contact us at Stacey@ZeroOneStrategies.com
