July 13: This week in crypto federal policy
DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy
This week decoded
President Trump’s financial disclosures revealed he earned $1.4 billion from cryptocurrency ventures in 2025, further complicating Senate negotiations over ethics provisions in the CLARITY Act. Limited time remains before the end-of-July target deadline for Senate consideration of the market structure bill.
The 21st Century ROAD to Housing Act, including a provision barring the Federal Reserve from issuing a central bank digital currency through 2030, became law without the president’s signature. The bill took effect after the mandatory 10-day window elapsed, after Trump withheld his signature in protest of Congress’s failure to garner sufficient support for an unrelated voter ID bill.
On the regulatory front, the SEC issued a request for comment on ETFs seeking exposure to innovative asset classes or novel investment strategies, focusing on how to foster innovation in the ETF space while still protecting investors and preserving fair, orderly, and efficient markets. The CFTC proposed revisions to an alternate reporting framework for certain fully collateralized event contracts.
Read more below
Congress
Hearings
This week
On July 17, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence holds a field hearing on “Building the Future of Finance: How the CLARITY Act Unlocks Innovation.”
Upcoming
On July 21, the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions holds a hearing on “Oversight of the Financial Crimes Enforcement Network.”
On July 21, the House Small Business Subcommittee on Innovation, Entrepreneurship, and Workforce Development holds a hearing on “Main Street Meets Crypto: What Digital Assets Mean for Small Businesses.”
Legislation
The 21st Century ROAD to Housing Act, which includes a section prohibiting the Federal Reserve from issuing a central bank digital currency (CBDC) through 2030, became law.
Trump Administration
Securities and Exchange Commission (SEC)
The SEC published a request for comment on exchange-traded funds seeking to invest in innovative asset classes or engage in novel investment strategies, particularly on ways to facilitate innovation in the ETF space while protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. (Notice)
The SEC issued its 2026 priority regulatory agenda. (OIRA)
Commodity Futures Trading Commission (CFTC)
The CFTC published proposed revisions to regulations that would set forth an alternate framework for reporting of data for certain fully collateralized event contracts; revisions would require certain reporting markets, futures commission merchants, clearing members, and foreign brokers to report certain event contracts. (Notice)
Government Accountability Office (GAO) and Office of the Comptroller of the Currency (OCC)
GAO sent a letter to Comptroller of the Currency Jonathan Gould highlighting three open recommendations that should be given high priority, including fintech lending and blockchain technology risks. (Letter)
Federal Reserve
The Board of Governors of the Federal Reserve System published a request for comment on proposed amendments to the April 10 rule that would ensure that Board-supervised banks establish and maintain effective AML/CFT programs, aligning with corresponding changes proposed by the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA). (Notice)
Internal Revenue Service (IRS)
On July 8, the IRS held a public hearing on the notice of proposed rules for electronic furnishing of payee statements by brokers with respect to digital asset sales. (Notice)
Noteworthy Quotes
ADMINISTRATION
Commodity Futures Trading Commission (CFTC)
CFTC Chair Mike Selig posted “Innovators and market participants deserve certainty when it comes to the future of crypto in America. The CLARITY Act provides comprehensive rules of the road that future-proof digital asset regulation. This bill is must-pass legislation if the U.S. wants to remain the crypto capital of the world.”
Selig also posted “Under my leadership, the CFTC will continue to defend our exclusive jurisdiction over all manner of commodity derivatives, including prediction markets. To the states seeking to preempt our authority, we’ll see you in court.”
Selig also posted “The CFTC is pursuing a series of rulemakings that will enhance guidance for prediction market participants and registrants. At the top of the list is our Rule 40.11 NPRM which clarifies the types of events that may underpin event contracts. Regulatory certainty is coming.”
Selig also posted “Just like we saw with the advent of crypto, the use cases for prediction markets, while seemingly narrow in their nascent stages, promise to give rise to myriad products and services that help Americans hedge risk and aggregate information.”
Selig also posted “POTUS’s Working Group on Digital Asset Markets is well aware of the danger that a central bank digital currency poses to everyday Americans who do not want the government monitoring and censoring their economic decisions. Under our watch, there will never be a US CBDC.”
Selig also posted “There are fundamental differences between prediction markets and casinos that make the former subject to the CFTC’s regulatory remit and not that of the states. Watch me break things down on the glennbeck program”
Selig also posted, “Illinois lawmakers have placed the future of Chicago as a financial market hub at risk by instituting a “sin tax” on blockchain technology. The decelerationist law goes so far as to tax transfers of crypto assets that generate no economic gain. Subjecting Illinois residents to property ownership by permission rather than right. As blockchain technology continues to transform our markets, the choice to plunder crypto wallets rather than promote economic growth may go down in history as Chicago’s last trade.”
Securities and Exchange Commission (SEC)
In remarks at the Economic Club of New York, SEC Chair Paul Atkins said, “…And with respect to digital assets—the most consequential financial frontier of our time—uncertainty became the policy. Well, innovation did not wait. It simply left our shores. In a world in which telecommunications know no boundaries, Americans found these assets anyway, but without the standards of American laws. Fortunately, the path forward is illuminated by the light of what we know is true—by the proven approach of the generations of Americans who have gone before us. So, in our nation’s 250th year, we at the SEC are doing what our Founders had faith in us to do: clearing and pruning the overgrowth—not to weaken the framework, but to let it bear fruit again. The path to doing so rests on what I am calling the SEC’s ‘ACT strategy,’ which is comprised of three interlocking aims: to Advance our frameworks into the modern era; to Clarify our jurisdictional lines; and to Transform our rulebook by returning it to first principles. A-C-T. The first—Advance—begins where the cost of complacency is clearest. Under the previous administration, digital asset innovators operated under regulatory ambiguity—and those who sought regulatory certainty from the SEC often found themselves under investigation instead. The market rendered its verdict, and an entire generation of digital asset innovation developed overseas. So, over the past year, we have moved purposefully to answer President Trump’s call to make America the Crypto Capital of the World. Through what we’re calling Project Crypto, we are taking historic steps to modernize our rules and regulations to facilitate markets’ moving on-chain. And after years of obscurity, we have delivered long-called-for certainty to digital asset issuers—so that investors and entrepreneurs today can know, before they act, whether a digital asset is considered a security and therefore subject to SEC oversight. To be clear: this is not a favor to industry—it is what markets require to function: clear rules of the road, applied without preference.” (Press release)
In remarks introducing the SEC’s 2026 regulatory agenda, Atkins said, “This Commission recognizes the importance of advancing our regulatory framework to reflect the realities of today’s operating environment – embracing innovation and new technology. To deliver on President Trump’s goal to ensure that the United States is the crypto capital of the world, we are embracing innovation to bring more products onshore, creating clear rules of the road for capital raising with crypto assets, and providing clarity as to how market participants can custody and facilitate trading of tokenized securities onchain. All while ensuring strong investor protection guardrails are in place and continuing to pursue bad actors who violate the law.” (Press release)
Atkins posted “An entire generation of digital asset innovation developed outside the U.S., not because American entrepreneurs lacked the ambition, or American investors lacked the appetite, but because American regulators lacked the will. Under my leadership at the SECgov, that era is over”
U.S. Securities and Exchange Commission posted “SECGov Chairman SECPaulSAtkins: ‘Over the past year, we have moved purposefully to answer President Trump’s call to make America the Crypto Capital of the World . . . We are taking historic steps to modernize our rules and regulations to facilitate markets’ moving on-chain.’”
White House
President’s Council of Advisors for Digital Assets Executive Director Patrick Witt posted “Another example of how clear rules of the road can unlock massive value. What GENIUS did for stablecoins, the Clarity Act will do for all other digital assets.”
CONGRESS
Prediction Markets
Sen. Adam Schiff (D-CA) posted “Polymarket reportedly paid social media influencers to promote prediction-market trading by creating misleading content and implying false large winnings. SenJohnCurtis and I are calling for an investigation into potential violations of the law.”
Rep. Greg Landsman (D-OH) posted “No Supreme Court Justice - or anyone working for them - should be betting on prediction markets.”
Landsman also posted “We introduced the No Profiting from Public Service Act with repkmr, RepKiley, and RepVindman. This bill would stop politicians, Supreme Court Justices, and other federal officials from being able to trade stocks and use prediction markets to wager on government and politics.”
Landsman also posted “Americans see a system that’s broken, and we’re determined to be part of the generation that fixes it. That’s why we led efforts this week in Congress to ban SCOTUS and other federal officials from using prediction markets and trading stocks.”
Landsman also posted “Following the bill, we sent a letter to the Supreme Court calling on them to immediately take action and ban prediction market participation for all justices and their staff. Court employees - justices, law clerks, and other staff - have inside information on critical decisions and operations. There are serious conflicts of interest and it undermines public trust. Folks deserve to know everyone in government is acting in their best interest.”
Sen. Dave McCormick (R-PA) posted “Prediction markets are here to stay. Responsible growth here in the United States will ensure these markets develop under our rules instead of offshore. Proud to have introduced bipartisan legislation to bolster consumer protection and defend market integrity.”
House Judiciary Dems posted “NEW: Ranking Members RepRaskin and RepHankJohnson call for strong safeguards against insider trading, urging the Judicial Conference to ban federal judges, clerks, and staff from participating in prediction markets.”
CLARITY Act
Sen. Cynthia Lummis (R-WY) posted “Leaving digital asset rules unsettled has not protected anyone. Instead, it’s left consumers and the industry vulnerable and has pushed innovation, investment, and jobs somewhere with clearer answers.”
Lummis also posted “This is likely our last chance to get real legislation for digital assets on the books before 2030. If we fail to pass the Clarity Act, we are ensuring another country will write the rules for digital assets and we spend the next decade catching up.”Lummis also posted “The Clarity Act is not just a ‘crypto bill.’ It’s a decision about whether America leads the next financial system or watches from the sidelines.”
Lummis also posted “America has led every great technological revolution — the railroad, the internet, the smartphone. Digital assets are next. The Clarity Act makes sure we don’t hand that lead to someone else.”
Lummis also posted “The Clarity Act has 16+ illicit finance safeguards, not loopholes: Sec 201: BSA/AML applies to crypto; Sec 303: new sanctions to hit Iran; Sec 305: exchanges can freeze dirty money If you don’t like crypto, then say it, but stop these baseless attacks.”
Lummis also posted “Our Founding Fathers created the most innovative economy in human history because they believed free people build better things. Digital assets are proof that spirit is still alive.”
Senate Banking Chair Tim Scott (R-SC) posted “Opportunity is created when innovators have clear, predictable rules. The Clarity Act provides clear rules of the road for digital assets, protecting consumers and helping keep the future of finance in America. #Opportunity250”
Senate Banking Ranking Member Elizabeth Warren (D-MA) posted “ Any crypto legislation that does not stop Donald Trump and his family from continuing to profit off of crypto is failing the American people.”
Ethics
Sen. Kirsten Gillibrand (D-NY) issued a statement supporting a ban on elected officials, and their spouses, from issuing or sponsoring their own digital assets, “This is a commonsense requirement that should get broad bipartisan support – public officials and their spouses should not be issuing memecoins. We cannot let self-dealing destroy an opportunity to strengthen consumer protections, crack down on illicit finance, and expand economic opportunity for the millions of Americans our financial system has left behind,” said Senator Gillibrand. “The time to act is now — and that must include ethics reforms that prohibit members of Congress, the president, and their spouses from cashing in on their office.” (Press release)
Industry Spotlight
On July 16, Injective Summit 2026 will bring together policymakers, global financial institutions, market infrastructure leaders, and innovators shaping the future of digital assets and tokenized markets. To join leaders across policy, finance, and technology in exploring how American leadership can advance responsible innovation and strengthen the competitiveness of U.S. financial infrastructure, apply at https://injective.com/summit.
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
Check out our other newsletter, DC/ai Decoded: A weekly newsletter on developments in artificial intelligence and quantum federal policy.
