March 16: This week in crypto federal policy
DC Decentralized: A weekly newsletter on developments in digital asset and blockchain federal policy
This week decoded
The era of jurisdictional competition appears to be drawing to a close, as the SEC and CFTC announced a Memorandum of Understanding and Joint Harmonization Initiative to enhance interagency coordination.
Prediction markets are gaining policy traction in Washington, with new legislation and a CFTC Advanced Notice of Proposed Rulemaking signaling regulatory attention.
The SEC confirmed that the long-anticipated innovation exemption will be far narrower than initially envisioned.
The IRS is seeking public comment on its annual Taxpayer Burden Surveys, offering an opportunity to advocate for more comprehensive data collection on digital asset reporting compliance.
Lawmakers on both sides of the aisle increasingly acknowledge that the window for advancing market structure legislation is closing, with late April emerging as the newest deadline for consensus in the Senate. Meanwhile, House Financial Services Chair French Hill (R-AR) suggests shifting the question of stablecoin yields to Treasury rulemaking.
Read more below
Congress
Hearings
This week
On March 17, the House Financial Services Committee holds a hearing on “Updating America’s Financial Privacy Framework for the 21st Century.”
On March 18, the Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Subcommittee hearing on “Revisiting the Treasury-Fed Accord.”
Upcoming
On March 25, the House Financial Services Committee holds a hearing on “Tokenization and the Future of Securities: Modernizing Our Capital Markets.”
On March 26, the House Financial Services Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee holds a hearing on “Innovation at the Speed of Markets: How Regulators Keep Pace with Technology.”
Legislation
Sen. Dick Durbin (D-IL) introduced the No Crypto in Social Security Act to prohibit the Social Security Trust Funds from investing in cryptocurrencies. (Press release)
Sens. Richard Blumenthal (D-CT) and Andy Kim (D-NJ) introduced the Prediction Markets Security and Integrity Act to enact federally-enforced rules on insider trading and market manipulation; ban prediction market listings related to war, death, and military action; require that states offering a sports betting program meet minimum federal standards with respect to advertising, affordability, and artificial intelligence; require age verification and a ban on advertising to underage individuals or individuals on the self-exclusion list; and reverse Commodity Futures Trading Commission preemption of state gambling regulations. (Text)
Trump Administration
Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)
The SEC and the CFTC announced that they have entered into a Memorandum of Understanding (MOU) to guide coordination and collaboration between the two agencies. They also announced a Joint Harmonization Initiative to support coordination across the policymaking, examination and enforcement functions of each agency, particularly for joint applications and shared policy efforts, including “providing a fit-for-purpose regulatory framework for crypto assets and other emerging technologies.” (MOU)
Internal Revenue Service (IRS)
The IRS is seeking public comment on Taxpayer Burden Surveys, specifically on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. The IRS Taxpayer Burden Surveys are designed to gather statistically representative data that allows the IRS to provide accurate estimates of taxpayer compliance burden and help the IRS understand how and why taxpayer burden changes over time, and inform the IRS of the impact of tax law changes and changes in taxpayer behavior, such as use of tax preparation software and services. The comment period closes May 11. (Federal Register)
National Institute of Standards and Technology (NIST)
On April 16, NIST is hosting a workshop to examine the technical architectures, interoperability challenges, operational practices, and security risks that are emerging in real-world blockchain and DLT deployments. (Event)
Department of Justice (DOJ)
The Wall Street Journal reported that DOJ is investigating Binance over allegations that the company facilitated illegal movement of funds to Iran. Binance denied the claims and has sued the Wall Street Journal for defamation. (The Guardian)(WSJ)
Commodity Futures Trading Commission (CFTC)
The CFTC published an Advanced Notice of Proposed Rulemaking seeking public comment on the need to amend or issue new regulations concerning event contracts traded on prediction markets. (Press release)
Noteworthy Quotes and Events
ADMINISTRATION
Securities and Exchange Commission (SEC)
In remarks at a meeting of the SEC Investor Advisory Committee, Commissioner Hester Peirce announced, “Commission staff is working on an innovation exemption to facilitate limited trading of certain tokenized securities—much narrower than the ‘blanket’ exemption mentioned in the draft recommendation.” (Press release)
Chair Paul Atkins delivered remarks at the IAC meeting, saying, “The Committee will vote on recommendations regarding the tokenization of equity securities. I want to thank the IAC for engaging thoughtfully with this topic, as well as for your recognition that tokenization can enhance settlement efficiency, reduce settlement risk, and eliminate unnecessary intermediaries. As I have previously discussed, I expect the Commission to soon consider an innovation exemption to facilitate limited trading of certain tokenized securities with an eye toward developing a long-term regulatory framework. To help inform our work in this area and to provide for robust public input, our Crypto Task Force has hosted several roundtables, met with hundreds of market participants, solicited broad public feedback, and received scores of written input submissions over the past thirteen months on how best to calibrate our rules to new and novel types of trading. We continue to welcome comments on the design of a potential innovation exemption, which would be limited in time and scope, but long enough so that we can craft more durable rules that harness the full potential of these new technologies.” (Press release)
At the same meeting, Commissioner Mark Uyeda said, “The Committee will be considering a draft recommendation on the tokenization of equity securities. This recommendation follows the Committee’s discussion of this issue at its last meeting in December. Throughout its history, the SEC has witnessed financial innovation that the federal securities laws did not originally contemplate. In the 1970s, money market funds emerged as a instrument to deal with the sky-high interest rates, prompting the Commission to issue exemptive relief until these products were ultimately codified in Rule 2a‑7. A similar pattern followed with ETFs, which began as a way to provide investors with intraday liquidity. For years, the Commission granted individual exemptions to allow ETFs to operate until adopting Rule 6c‑11. Tokenization of equity securities may be the next example of an innovation that could bring significant benefits to investors but does not fit neatly into the existing regulatory framework. I appreciate the Committee’s efforts to recognize that the advent of new technologies means that our rules may need to evolve but keeping in mind the goals of protecting investors and maintaining fair, orderly, and efficient markets.” (Press release)
Federal Deposit Insurance Corporation (FDIC)
At the American Bankers Association Summit, FDIC Chair Travis Hill delivered remarks entitled “An Update on Reforms to the Regulatory Toolkit,” saying, “The FDIC has also been hard at work on rulemakings to implement the GENIUS Act, which includes a proposal to establish prudential requirements for payment stablecoin issuers supervised by the FDIC. One issue we plan to address in this proposal, which has broader implications beyond just FDIC-supervised stablecoin issuers, is the applicability of FDIC pass-through insurance to payment stablecoins. The GENIUS Act makes clear that payment stablecoins are not ‘subject to deposit insurance’ or guaranteed by the U.S. government. The GENIUS Act further prohibits payment stablecoin issuers or other parties from representing ‘that payment stablecoins are backed by the full faith and credit of the United States, guaranteed by the United States Government, or subject to Federal deposit insurance or Federal share insurance.’ The GENIUS Act is silent on whether FDIC pass-through insurance could apply to payment stablecoins… As a result, the FDIC is planning to propose that payment stablecoins subject to the GENIUS Act are not eligible for pass-through insurance. The FDIC is particularly interested in comments on this aspect of the proposal, and we are open to hearing different perspectives on this issue. In my view, we should answer this question definitively by regulation, rather than waiting until a bank that holds stablecoin reserves fails, when different parties may have different expectations on the availability of FDIC insurance.” (Remarks)
White House
President’s Council of Advisors for Digital Assets Executive Director Patrick Witt posted “Arguably my favorite part of this rewards/yield debate has been when bankers say ‘if we allow this, then we’ll see massive deposit flight.’ Crypto has already been offering rewards/yield on stablecoins FOR YEARS. Where is the deposit flight? Is it in the room with us right now?”
Witt also posted “Lost in the rewards/yield debate is how GENIUS-compliant stablecoins will actually lead to deposit inflows. Global demand for USD is massive. Foreigners exchange local currency for stablecoins from a US-based issuer. That is net new capital entering the American banking system.”
Witt also posted “The CLARITY Act must remain a pro-innovation piece of legislation. Attempts to hijack the legislative process and turn it into an anti-competition bill are shameful.”
Commodity Futures Trading Commission (CFTC)
CFTC Chair Mike Selig posted “Prediction markets are one of the most exciting innovations in financial markets. Yet for too long, the CFTC has failed to provide guidance for these markets being used by millions of Americans. This ends today. The CFTC released long-overdue staff guidance and an ANPRM on prediction markets to provide clarity to our exchanges, market participants, and the American people on rules of the road for these markets. This guidance is just a first step, and my staff are diligently working on a formal rulemaking, including through our recent ANPRM submitted to the White House. We look forward to engaging with comments from the public. We want to get this right and ensure we have the gold standard for prediction market regulation here in America. Prediction markets are here to stay and under my leadership, I’ll protect the agency’s jurisdiction over these markets and allow them to flourish in the US.”
Selig also posted “On Bankless, I told TrustlessState and RyanSAdams that we’re in the midst of a global technological revolution. Blockchain, prediction markets, and artificial intelligence are transforming our financial markets. We must ensure that these innovations aren’t strangled with red tape and forced offshore.”
Selig also posted “It’s my hope that, by marrying prediction markets with blockchains, we can see how decentralized trust and truth can act as a check on disinformation, outright falsity, and the threat of debanking.”
CONGRESS
Market Structure
Senate Majority Leader John Thune (R-SD) said, “Market structure is a bill that’s, I’m hoping, going to come out of the Banking Committee soon, probably not before, I would say, the April time period.” (Punchbowl)
At the American Bankers Association summit, Sen. Angela Alsobrooks (D-MD) said, “I think I have to level set that all of us will probably walk away just a little bit unhappy. The compromise that myself and SenThomTillis have been working on is one we believe will help prevent deposit flight and allow innovation to grow at the same time.” (Eleanor Terrett, x.com)
Alsobrooks said to Punchbowl, “We’ve been very clear that we want to make sure that we allow rewards and interest to be paid, but not on a stable balance. We don’t want bank-like products that do not have bank-like protections.” She added, “There are a number of other issues that also have to be resolved, with illicit finance and some other things.” (Punchbowl)
Sen. Thom Tillis (R-NC) said, “If they want to get this done, then we ought to be listening to the concerns of the [global systemically important banks] and the community banks. I mean, we’re not that far apart.” He added, “I’ve been impressed with Brian Armstrong… Some of these other crypto bros, they better learn how to act professionally and how to negotiate, because if they keep swinging for the fences, they’re gonna end up like Babe Ruth. They’re gonna have a big strikeout average.” (Punchbowl)
Sen. Adam Schiff (D-CA) said, “There hasn’t been much progress lately on it. We’re really still waiting for a concrete response from the White House. The last couple of meetings that Senator Gallego and I scheduled with the White House, the White House did not show up for whatever reason. It’s hard for us to move forward unless we hear a response to the proposals we’ve made.” (Punchbowl)
Sen. Cynthia Lummis (R-WY) posted “Thank you, Sen_Alsobrooks, for the reminder that the status quo is worse for banks than a bipartisan compromise in the Clarity Act which prevents deposit flight and promotes innovation. America needs clarity. Let’s get it done.”
Lummis also said, “I don’t know if we’ll get it out of committee until April. And, of course, the first two weeks of April, we’re off on the Easter recess. So it’s getting dicey. We’re putting ourselves in a very dangerous position.” (Punchbowl)
House Financial Services Chair French Hill said, “My recommendation is that all these issues around paying yield or connecting rewards by either a bank or a non-bank issuer should be dealt with in the regulatory proposal that Treasury has to come up with to implement the Genius Act.” (Chad Pergram, x.com)
Rep. Mike Flood (R-NE) said, “When we’re talking stablecoins, I want banks in that lane. We need community banks. We need everybody to play in this, and so I’m supportive of them having a role here. I think this is something that can get worked out.” (Punchbowl)
House Financial Services Ranking Member Maxine Waters (D-CA) said, “Crypto may be inevitable, but it’s got to have guardrails, and they don’t have guardrails yet. The challenge for this, for my side of the aisle, is that we are able to help people understand the possibilities of harm with crypto, and convince them that they’ve got to know what crypto is all about.” (Punchbowl)
House Financial Services GOP posted “ICYMI: Chairman RepFrenchHill joined LizClaman on FoxBusiness to discuss the latest on the CLARITY Act. ‘Last July, we passed the GENIUS Act that created the first dollar-backed payment stablecoin and we passed the CLARITY Act in the House… in both instances, on a bipartisan basis, we said that stablecoins should not pay yield. It’s just a payment device to be used on a blockchain, and we also outlined in the GENIUS Act that both bank and nonbank issuers of a dollar-backed stablecoin would be treated the same way on sales practices, capital, [and] supervision. So, in my view this can be resolved in the CLARITY Act, and I hope soon.’”
Prediction Markets
Sen. Dave McCormick (R-PA) posted “This is an important step in the evolution of prediction markets. I commend ChairmanSelig for acting quickly to reinforce regulatory requirements and provide clarity for these markets.”
Sen. Adam Schiff (D-CA) posted “I’m introducing a bill to ban bets on war and death in prediction markets. Betting on war and death creates an environment in which insiders can profit off of nonpublic information, our national security is jeopardized, and violence is encouraged. Congress must act.”
Miscellaneous
On a digital asset tax bill, Sen. Steve Daines (R-MT) said he is “making progress now at the committee level.” On bipartisanship, he said, “You saw the difficulty of getting a bipartisan market structure bill together. But clearly, to get an outcome it’s going to have to be bipartisan. So we’re gonna have to find a way to get to 60.” (Punchbowl)
Sens. Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), and Ruben Gallego (D-AZ) issued a statement on the Wall Street Journal report that the Department of Justice is investigating potential Binance sanctions violations, “Binance has an established track record of putting profits ahead of the law. Recent reports raise serious concerns that the firm is again violating U.S. sanctions laws, recklessly helping bankroll the activities of terrorist groups connected to Iran. We will conduct oversight to ensure the Department of Justice conducts a serious investigation into Binance and holds the company accountable for any wrongdoing. This scrutiny is particularly important given recent reports that Binance is engaging in increasingly risky activity in countries through which illicit actors are known to evade U.S. sanctions and export controls.” (Press release)
House Foreign Affairs Committee Democrats posted “Trump likes to appear tough on Iran. But he pardoned the founder of Binance—whose crypto exchange pleaded guilty to sanctions violations and is now being investigated for helping Iranian terror networks move money. Guess ‘maximum pressure’ doesn’t apply to crypto billionaires.”
Sen. Richard Blumenthal (D-CT) posted “Binance thinks its crypto connections to Trump’s family will get it a pass, just as its former CEO got a Presidential pardon. In fact, we can’t trust this DOJ to hold Binance accountable. That why I’ll continue investigating through PSI.”
Sen. Dick Durbin (D-IL) posted “This week the Senate will consider a bill to help address the housing affordability crisis in America. I introduced five amendments to this bill to ensure homes are safe and affordable and to secure our financial markets from the volatility of crypto or scammers.”
Floor Statements
Sen. Adam Schiff (D-CA) said at a Punchbowl News conference, “We shouldn’t preempt certain basic protections that states want to put in place for the very reason you mentioned, which is we proved utterly incapable of regulating tech. If we move with the same speed we have moved to deal with Section 230 or all the ills that have come about through social media, then we will never, it feels like, regulate AI. So, before we tell the states back off, we have to show we’re capable of doing something, and that hasn’t happened.” He added, “What the administration is doing right now to Anthropic is so completely self-destructive. It’s destructive of the AI in America, because this is one of the preeminent AI companies. It’s even more broadly destructive over national security, because they’re a leader in this area, so they’re going to undermine our own national security. But it is also a just a direct assault on the whole idea of free enterprise. And I don’t know why all of corporate America isn’t screaming right now, except maybe that they’re terrified. But if the President of the United States can pick an AI company and say, we’re going to give you the death sentence because you dared insist on something that ought to be common sense anyway, then the administration can kill any company in America, and it can extort any company in America, and it’s already extorted a great many. And the only way we stop this is if there is some collective action among corporate America, among our universities and our law firms and our media organizations that push back and say, no. I admire what Anthropic is doing, because, among other things, it is exceedingly rare how many companies are actually standing up to the president right now as he’s trying to tell a company like Microsoft, you got to fire this person, or we won’t do business with you, or this person is on your board Netflix, so that we’re not going to support a merger. What kind of backward country are we becoming? And if corporate America thinks this is good for business, it may be good for a particular company in the very short term, but it is death to the economy in the longer term. And I wish we had more voices like Anthropic out there.” (Press release)
In remarks on the Senate floor, Sen. Dick Durbin (D-IL) said, “In the aftermath of the 2008 financial crisis spurred by lax lending standards, the Consumer Protection Bureau was created. Dodd Frank placed parameters to prevent this from happening again. The consumer protection Bureau has been gutted while promoting one industry over that almost exclusively. Which industry is that? The cryptocurrency industry. This administration is playing with fire. Dropping lawsuits, hollowing out enforcement, and curtailing bad actors while cozying up to donors. Cryptocurrency is a highly risky volatile asset. Take the bitcoin. The gold standard of crypto. It has fallen in value nearly 50% since hitting a record high last October. And it’s not just bitcoin. The total value of the crypto market has dropped from 4 trillion in October of 2025 to 2.36 trillion today. All the gains from last year have been wiped out investors in that cryptocurrency. Crypto has developed a troubling reputation for fraud, including scams by crypto ATM’s, which target seniors. In 2025, last year alone, the FBI received more than 12,000 complaints of crypto ATM fraud that resulted in more than $333 million in losses. How does it work? A senior citizen get as telephone call -- get as telephone call and is told that you were supposed to show up for jury duty. The senior says, I don’t know about that. Well, that’s a fact. A warrant is going to be served on you unless you pay a fine. I will save you the embarrassment. Go to a -- embarrassed with their kids. Just like that goes to the cryptomachine. Does that happen very often? 12,000 complaints of crypto ATM fraud. $333 million. Seniors convinced by scammers to plug money into the cryptomachines. The President has used crypto to enrich himself and his family. Fresh off returning to the Oval Office for a second time, Donald Trump launched a meme coin that generated more than $280 million in profit. President Trump issued a meme coin that generated more than $280 million in profit since he was reelected as President. And his family’s crypto firm, World Liberty Financial, has brought in approximately $1 billion in revenue, the family firm. President Trump’s crypto dealings reportedly account for more than 20% of his net worth. In one year, President Trump and his family have increased their family fortune to the tune of $1.4 billion, primarily through crypto. My First Amendment would crack down on what some call, quote, the getaway vehicle for criminals, talking about crypto ATMs. You might not know that they’re there. But the next time you go to a grocery store and look at an ATM machine, look at what’s next to it. It’s a crypto ATM. I’m talking about crypto ATM’s that are all around America, 30,000 of that’s machines. If you look at your gas station or grocery store, you are going to see them. They’re being used to cheat senior citizens of their life savings. I’ve spoken about this before. Because of the untraceable and anonymous nature of crypto, one the victim deposits cash into a crypto ATM, sends it to the scammer’s wallet, it is virtually impossible to follow. It would require crypto ATM operator to provide fraud warnings, impose daily transaction limits and provide refunds for customers who are scammed. I’ve also filed an amendment that would prevent crypto companies from receiving a taxpayer-funded bailout. Imagine these crypto operations don’t pay deposit insurance like banks and others and when it comes to the crisis like the one we had in 2008, that insurance becomes important in saving those institutions. Currently crypto is considering asking for that kind of protection without paying any insurance premiums. If and when a crypto crash occurs, American taxpayers should not be the ones on the hook for these crypto ventures that are owned by President Trump and his family. Two in three Americans oppose a government bailout of the crypto industry while only 9% support one. My colleagues on the other side talk a lot about 80-20 issues. This is a 90-10 issue. There should never be a crypto bailout. We cannot discuss retirement security in the United States without mentioning Social Security. While the Social Security can only invest in government bonds, I have filed an amendment to make it explicitly clear that the trust funds cannot currently and can never invest in crypto. Social security ensures our seniors have food on their table and colonials on their backs. It is backed by U.S. Treasury bonds, the safest asset in the world, because of the full faith and credit of the United States backing it up. If the trust funds were exposed to the volatility of the crypto market, the financial security under Social Security that our seniors depend on could be pulled out from under them, rising and falling with the swings of this risky asset. Here’s the bottom line -- do we want to expose the bedrock promise of Social Security to risky assets like crypto? If your answer is no, I hope you’ll support my amendment. When the GENIUS Act came up last year, I voted no because it gave Congress -- I intend to submit these amendments to the bill to fully place meaningful guardrails on this industry. The American consumer is not aware of what’s going on with crypto.”
Sen. Dan Sullivan (R-AK) delivered remarks on the Senate floor, saying, “Because these technologies in which we are in a race with China in terms of their development might determine who controls the entire 21st Century between the United States and China. Fortunately, Mr. President, we’re starting to focus on these. I’m starting to focus on these, and I would say there are three main areas, digital currency, and blockchain technology, artificial intelligence, and biotech. So if you’re on the hill on different committees, and I’m on the Commerce Committee as well as Armed Services, we are doing hearings, we are doing markups, we established commissions. There’s a lot of work, a lot of debate. I would say, Mr. President, a lot of it is bipartisan, which I think is good, to focus on these emerging technologies because in some ways they’re just as important as our military competition with the Chinese Communist Party. And in my view, Mr. President, it is becoming increasingly clear that we are in a race with the Chinese Communist Party on who will control these critical technologies. The economic resilience and financial strength and productivity of our economy, and, yes, the national security of our citizens increasingly depends on who wins these races in these critical emerging technology areas. A couple of things related to that, Mr. President, I just want to touch on. And I’m going to come down to the floor and speak more and more on these and what we need to do. But make no mistake, as I dig into these issues deeper, as we get the briefings from the experts, it has become clear that we should not -- should not underestimate the Chinese Communist Party in these areas. They can compete. They are competing. I think sometimes in the area of technology, we think, well, we’re the United States, we’re the top dog. But we need to take them very seriously. And in some areas, in these technologies, subcomponents of these technologies, say, for example, like robotics, I think you could make a good case that the Chinese are already in the lead. And we have to take that very seriously. Another thing, Mr. President, is that a fundamental component of competing successfully against China in at least two of three of these technologies, blockchain technology and A.I. is that we have to have abundant American energy to power in advance in these technological areas. Again, for the benefit of our own citizens and our own national security, it is critical that we unleash American energy, all forms of American energy. I am an all-of-the-above energy proponent -- oil, gas, coal, renewables, nuclear. We used to talk about the energy transition, Mr. President, but in terms of winning the race on these kind of technologies, we really need to be talking about energy addition, because we’re going to need all forms of American energy, American energy dominance, when it comes to blockchain technologies, crypto, and A.I. so, in these areas, Mr. President, I believe that, for example, in blockchain technology, when developed properly, it can not only help but ensure our economic resilience, our economic competitiveness and, very importantly, Mr. President, as it relates to competing with China, the continued dominance of the U.S. dollar as the world’s reserve currency, which, as I mentioned, Mr. President, is a critical comparative advantage we have over the Chinese and which they are trying to erode, both in terms of their own digital currencies, but in other ways in terms of working with other countries that want to erode the dollar’s preeminence. Related, blockchain technology can make sure the U.S. is more resilience to economic warfare. Again, only if we are the leaders related to China. In these areas, I think we’re off to a pretty good start, Mr. President, by actually passing laws that are beginning to establish the rules of the road for these technologies, like stablecoin, when we recently passed the GENIUS Act. Next up, as we’re working on additional rules for the road, to establish the strength of these technologies based in America, not China, is the market structure legislation that we are working on. As some of you know, the CLARITY Act passed the House. We’re continuing to move that legislation forward here in the Senate, splitting some of it apart with legislation, such as the digital commodity intermediary act, that recently passed out of the Agriculture Committee. This is also bipartisan legislation, Mr. President. And again, it’s a good start, but we have a long way to go, but I think it’s critical to keep in mind one of the most important elements of this is to beat China, for our economic security, for our national security, and that includes, of course, Mr. President, in the area of A.I. and biotech, as I mentioned. Again, the race against China here is critical. Who wins these technological races will almost certainly dominate key elements of the 21st Century. We need to optimize the full promise of A.I. while protecting our citizens against some of the related harms, particularly protecting our children when it comes to this new technology. Smart regulation and legislation and well-thought-out legislative actions from Congress should focus on empowering our people and accelerating societal benefits that result from the use of A.I., like especially, Mr. President, in health care, in education, where I believe the promise of artificial intelligence is immense and transformative in a very positive way, for our country and our citizens. When I talk to the experts, they believe that we are winning the A.I. race with China, but we can’t be complacent at all. As I mentioned, they can compete, and every day we need to keep moving forward and recognizing that this is a critical competition that we cannot let the CCP dominate and control.”
Rep. Al Green (D-TX) delivered floor remarks in the House, saying, “It’s amazing how this corruption now brings in the crypto industry. The crypto industry has decided that they are going to target people around the country, spending not a million, but millions of dollars. The crypto industry would if they could control the Congress of the United States of America. I am one of the people standing in their way. I will continue to stand in their way. They graded me out and I got an F. I am as proud of that f as I am of any a I’ve ever received in life. I’m very proud to say that the crypto industry does not find favor with me. They believe that those who receive a’s from them should be rewarded by eliminating the opposition in Congress. That is to them, the opposition to them in Congress. So the crypto industry is on a roll now. They’re going to go around the country going to buy Congressional seats. And that’s what they’re doing. They buy Congressional seats. They buy a reputation for people who are running on their side of the ledger, and they then spend just millions of dollars on ads to try to remove people who are in antithetical to what they’re doing with their crypto program. The program which entails as little regulation as possible. The best use of crypto right now, cryptocurrency seems to be that of allowing those who are engaging in blackmail and extortion to move large sums of money, move large sums of money without it being traced. There are billionaires who would love and are enjoying knowing that they can move large sums of money without it being traced, because these large sums of money can be used for nefarious purposes, or they can be used for evasive purposes, evading taxes, large sums of money unregulated because it can just move from one person to another in a flash. Blockchain technology is a wonderful thing, but the problem that we have is and the thing that I consider a problem for this country is the impact that crypto may have on the dollar, and the fact that these dollars do not move through a central bank, meaning from one person, through a central bank to another person. At some point we will find that cryptocurrency can be used to fund nefarious operations against this country. But how do you prove it right away? When the money moves from one person to another without going through a central bank? Well, I want to see this regulated. I do, and I’m going to continue to want to see it regulated, and I’m going to continue to fight to have it regulated. This is something that I believe is going to injure our interest rates when we borrow from other countries, if it has an adverse impact upon the dollar, the dollar is the reserve currency of choice across the globe, meaning countries hold dollars in reserve in their coffers. This is something for us to cherish and to protect the dollar as a reserve currency. Well, there are some people who are trying to knock the dollar out of this place. There’s a war for currency supremacy, and in so doing, the dollar, if it is diminished in some way, our interest rates could go up. So, we’ve got to be careful in terms of having the supremacy of the dollar continue. Cryptocurrency could conceivably have an impact on the dollar. I’ve had some to tell me that it can and they are concerned about it. These are experts. My hope is this, that we will wake up and understand what is happening with the cryptocurrency purveyors, the people who want to take control of Congress, anyone who is antithetical to them. They’re willing to spend millions, untold millions to remove people from office. And we have to take a stand against this. I will take that stand. There are many who will stand with them. But in doing this, something else is occurring when they can take the Congressional seats by drawing lines and simply taking them. And then if they can take them by using cryptocurrency. And these are friends of the President. They’re friends of the President. They all in this together. The President with the cryptocurrency persons who would desire to control Congress as the President would desire to control it. And for the most part, right now, he does. Well, these people, when they use this cryptocurrency, they’re using it to take away seniority, seniority. They want to get rid of senior Members of Congress, and they’re using their crypto dollars. They’re really American dollars, but they’re using this money to remove people from office, and they’re going after senior leadership in Congress. Now, senior leadership is important in Congress. Senior leadership means that persons have been here. They’ve served, and they understand much of how this great institution functions. And they understand also how to get things done. Efficaciously. But there is something more important than all of this as it relates to senior leadership. If we decide that seniority no longer has any merit in the Congress of the United States of America, and that’s the direction we’re moving in. If we decide that seniority no longer has any merit in the Congress of the United States of America, money will rule. And when money rules, many persons will lose, a good many of them will be people who just don’t have access to billionaires, millionaires, people who are exceedingly wealthy, who can fund their campaigns.”
What I’m Reading This Week
A Crypto Coin Is Gobbling Up U.S. Treasuries, Talmon Joseph Smith, The New York Times.
Taxing Digital Assets: Applying Principles to Policies, Michael Kaercher and Sophia Yan, NYU Tax Law Center.
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