Lowenstein Crypto advises leading digital asset and cryptocurrency projects, exchanges, and trading firms. Our practice covers regulatory advice, transactions and structuring advice, investigations, and adversarial matters including commercial disputes, bankruptcy, and related litigation. As these markets continue their rapid growth and market participants continue to evolve and mature their businesses, we are providing this weekly digest as a resource that highlights and summarizes a selection of key recent legal regulatory developments.

House Committees Advance CLARITY Act During Markup Sessions

On June 10, the House Agriculture and Financial Services Committees advanced portions of the CLARITY Act, an Act that would create a unified federal framework for digital asset regulation. The Agriculture Committee approved provisions expanding Commodity Futures Trading Commission (CFTC) oversight of digital commodity spot markets, while the Financial Services Committee advanced Securities and Exchange Commission (SEC)-focused provisions. Once both versions are formally reported, they are expected to be combined before advancing to the full House. See a press release by House Committee on Financial Services Chairman French Hill here. For more information on the CLARITY Act, please refer to a Lowenstein Crypto summary here.

GENIUS Act Advanced in the Senate

On June 11, the Senate voted 68-30 in favor of advancing the stablecoin legislation known as the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025, and more commonly known as the GENIUS Act (Act). The Act, as proposed, requires stablecoins to be fully backed by U.S. dollars or similarly liquid assets. With this vote, the Senate invoked cloture, a legislative procedure for ending debate, and set the bill up for a final vote. The text of the proposed legislation can be found here, and the Senate floor proceedings can be viewed here.

SEC Chairman Delivers Remarks Regarding Crypto Market Trends at Crypto Task Force Roundtable

On June 9, SEC Chairman Paul Atkins delivered remarks that indicate that the current trend of relaxed regulation toward crypto innovators will continue. Atkins stated that the American values of economic liberty, private property rights, and innovation are in the DNA of the DeFi movement. While the past actions of the U.S. government discouraged crypto market participation through lawsuits, speeches, regulation, and the threat of regulatory action, according to Atkins, the new administration is supportive toward market participation. Atkins continued by stating that crypto is able to improve the traditional software model, provide stability in crises, eliminate economic frictions, enable new financial products, and enhance liquidity. Atkins concluded his speech by offering the idea of an “innovation exception” to help make the U.S. the “crypto capital of the planet” by encouraging entrepreneurs willing to comply with certain conditions to innovate with on-chain technology in the U.S. See the full statement here.

Nomination Hearing Held by Senate Regarding Brian Quintenz’s Nomination for CFTC Chairman

On June 10, the U.S. Senate Committee on Agriculture, Nutrition, and Forestry held a nomination hearing to question the CFTC chairman nominee, Brian Quintenz. In his testimony, Quintenz emphasized the importance of establishing a comprehensive regulatory framework for digital assets, and asserted that the CFTC is the most equipped financial regulator to handle responsible financial innovation. Further, as the CFTC chairman, Quintenz stated that he would “walk a middle line” between fostering innovation and protecting consumers of crypto products. In the hearing, Quintenz additionally praised the proposed CLARITY Act and stressed the need for “an appropriate market regulatory regime to ensure that this technology’s full promise can be realized ... .” The nomination hearing can be viewed here.

Federal Court Orders $25M Penalty for Digital Asset Fraudsters

On June 11, the U.S. District Court for the District of Massachusetts entered a final judgment against My Big Coin (MBC), related entities, and its two founders for operating a fraudulent digital asset scheme, ordering them to pay over $25 million in penalties and restitution. The matter was brought by the CFTC and related to the fraudulent sale of MBC as a commodity in interstate commerce. Defendants obtained more than $6 million from at least 28 customers by using fraudulent sales practices and false claims that MBC was backed by gold. The ruling concludes one of the CFTC’s earliest crypto fraud enforcement actions. See the CFTC’s press release here.

Connecticut Enacts Crypto Investment Ban for State and Local Governments

On June 10, the state of Connecticut enacted House Bill 7082, which prohibits both state and local government entities from accepting cryptocurrency payments, purchasing or holding digital assets, or creating a state-managed crypto reserve. The bill, which passed unanimously in a 148 to 0 vote, reflects growing caution among state policymakers regarding the use of public funds for crypto-related activities, citing concerns around volatility and regulatory uncertainty. Although Connecticut had not previously held any crypto reserves, this law proactively bars such activity from occurring going forward. The full text of the bill can be found here.

Stripe Acquires Crypto Wallet Developer

On June 11, Stripe Inc. acquired Privy Inc., a crypto wallet infrastructure company that enables Web3 platforms to embed noncustodial wallets directly into their user experience. Privy powers wallet integrations for platforms such as OpenSea and currently serves over 75 million accounts across 1,000-plus developer teams globally. Under the terms of this major acquisition, Privy will continue to operate independently while gaining access to Stripe’s resources, which the company hopes will increase both quality and efficiency. The deal builds on Stripe’s broader push into crypto, following its initiative to accept USDC, a regulated stablecoin backed by USD. See a press release by Privy announcing the acquisition here.