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.
Crypto Associations Seek Tax Clarity for Mining and Staking Act
On June 21, a coalition of crypto and blockchain industry organizations sent a letter to House Ways and Means Committee (the Committee) Chairman Jason Smith, R-Mo., and Ranking Member Richard Neal, D-Mass., urging passage of H.R. 9175, the Tax Clarity for Mining and Staking Act (the Bill), as introduced by Rep. Mike Carey, R-Ohio. The Bill addresses long-standing uncertainty around the federal tax treatment of mining and staking rewards, an issue compounded by IRS Notice 2014-21 and Revenue Ruling 2023-14, which treat such rewards as immediately taxable income upon creation. The Bill proposes a compromise approach inspired by the traditional treatment of newly created property rather than imposing tax at the moment tokens are generated, which can force taxpayers to liquidate holdings to cover tax on unrealized gains. The Bill defers recognition until sale or death while still ensuring full income recognition, providing a clear and administrable rule for both taxpayers and the IRS. The signatories argue that alternative proposals, including a five-year mandatory recognition cap, would impose significant compliance burdens on taxpayers and the IRS while raising negligible revenue according to the Joint Committee on Taxation. The letter urges the Committee to preserve the Bill’s bipartisan balance and resist reopening the compromise, emphasizing that clear tax rules are critical to keeping blockchain validation and related innovation in the United States. See the letter here.
Bank of England Publishes Stablecoin Policy Statement and Draft Code of Practice
On June 22, the Bank of England (the Bank) published a policy statement and draft code of practice for sterling-denominated systemic stablecoin issuers, marking a significant milestone in the United Kingdom’s stablecoin regulatory framework. Responding to feedback received from its November 2025 consultation, the Bank, among other things, relaxed the backing-asset composition from a 60/40 to a 70/30 split, allowing 70 percent of the underlying assets to be in short-term UK government debt securities and 30 percent in unremunerated central bank deposits, and removed the holding limits (i.e., £20,000 for individuals and £10 million for businesses) in favor of capping each systemic stablecoin at an initial £40 billion cap. The Bank also confirmed a risk-based capital and reserve framework and a requirement to honor redemptions at par as soon as practicable and within 24 hours of a “full redemption request,” with no permitted suspension of redemptions. See the policy statement and draft code of practice here.
Prohibition on the Issuance of CBDCs Moves Forward
On June 23, the U.S. House of Representatives passed the 21st Century ROAD to Housing Act (the Act) by a 358-32 vote, following the U.S. Senate’s approval vote on June 22. Among other things, the Act prohibits the Federal Reserve from issuing or creating a central bank digital currency (CBDC) or a digital asset substantially similar to a CBDC. The ban on the issuance of a CBDC will remain in effect until Dec. 31, 2030. In his January 2025 executive order, President Donald Trump included a directive to take “measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States.” The bill now sits with Trump for approval. The status of the Act can be followed here.
Binance Withdraws MiCA License Application
On June 24, Binance announced that it has withdrawn its Markets in Crypto-Assets (MiCA) application in Greece and will pursue authorization in another EU member state. Binance had submitted a MiCA application with the Hellenic Capital Market Commission in Greece; however, it indicated that it had not received a response ahead of the July 1 deadline. Digital asset firms that seek to provide crypto services within the European Union are required to have a MiCA license by the July 1 deadline or otherwise may be forced to stop providing services to European customers. Binance anticipates securing authorization from another member state in the coming months. See Binance’s press release here.
South Korean Digital Asset Exchange Bithumb Fined for Sharing Data Internationally
On June 25, South Korea’s Personal Information Protection Commission (PIPC) announced it fined South Korea-based digital asset exchange Bithumb for violations relating to the transfer of personal information overseas in connection with order-book sharing and digital asset transfers. The PIPC found that Bithumb shared its USDT order book with overseas exchanges in violation of consent requirements, as well as personal information in connection with overseas transfers of digital assets. Although the PIPC noted that sharing personal information is necessary for anti-money-laundering purposes, South Korean residents have the right to control how their personal data is used. As a result, the PIPC imposed a fine equal to 210 million Korean won (approximately $136,000). The PIPC press release can be viewed here (Korean).
