Good morning and happy Friday. Before breaking for the Memorial Day recess, lawmakers packed in a flurry of crypto-related activity—from Senate movement on GENIUS to House action on debanking and a hearing with SEC Chair Paul Atkins.

Top Points

• After two bipartisan supermajority votes on procedural motions, the Senate is poised to consider the GENIUS Act when it returns from Memorial Day recess, with Senators already filing a range of amendments addressing ethics, illicit finance, and consumer protections.

• The House Financial Services Committee advanced a bill to prohibit federal banking agencies from considering “reputational risk” when supervising, examining, or regulating depository institutions, in a slightly bipartisan 33-19 vote.

• A House Appropriations subcommittee discussed crypto regulations, SEC funding, and conflicts-of-interest concerns with SEC Chair Paul Atkins.

• GOP Majority Whip Tom Emmer (R-MN) and Rep. Ritchie Torres (D-NY) introduced a bill to clarify that blockchain developers and service providers are not required to register as money transmitters if they do not take control of users’ digital assets.

• An exclusive dinner for $TRUMP memecoin holders triggered further outcry from Democrats on Capitol Hill, including a new bill from Rep. Maxine Waters (D-CA) and a letter from 35 Democrats calling for a DOJ investigation.

The Week

Congress

GENIUS Act Update: On Monday, the Senate invoked cloture on the motion to proceed to the GENIUS Act by a 66-32 vote. This limited debate on the motion to proceed, paving the way for Wednesday’s vote. On Wednesday, the Senate voted to adopt the motion to proceed by a 69-31 vote. Now, GENIUS itself is ripe for consideration, though timing remains unclear. Rather than turning to consideration of amendments, the Senate pivoted to consideration of a series of Congressional Review Act resolutions and executive nominations to close out the week. Senators have already filed dozens of amendments, including measures addressing ethics rules, consumer protections, illicit finance, and more. More detailed analysis of votes, process, and amendments in Pro.

HFSC Advances Debanking Bill: On Wednesday, the House Financial Services Committee advanced H.R. 2702, the FIRM Act in a slightly bipartisan 33-19 vote. The bill would prohibit federal banking agencies from considering “reputational risk” when supervising, examining, or regulating depository institutions.

SEC Chair Atkins Testifies on Hill: On Tuesday, SEC Chair Paul Atkins testified before the House Appropriations Subcommittee on Financial Services and General Government. The hearing featured significant discussion of digital assets, with Subcommittee Chair Dave Joyce (R-OH) emphasizing the importance of regulatory clarity for crypto and Democrats flagging President Trump’s ties to crypto. Full summary in Pro.
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​Blockchain Regulatory Certainty Act: On Wednesday, GOP Whip Tom Emmer (R-MN) and Ritchie Torres (D-NY) introduced the Blockchain Regulatory Certainty Act. The bill would clarify that blockchain developers and blockchain service providers are not required to register as a money transmitter business if they do not control users’ digital assets in the regular course of business.

Letter to DOJ re $TRUMP: Rep. Sean Casten (D-IL) led a group of 35 Democratic Congressmen in a letter to the head of the DOJ’s Public Integrity Section, calling for an immediate investigation into President Trump’s offer for the top investors in his $TRUMP memecoin to attend a private dinner.

Stop TRUMP In Crypto Act: Rep. Maxine Waters (D-CA) and 11 cosponsors introduced the Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act, a bill to bar covered officials and their families from receiving compensation tied to digital assets.

Senate Resolutions re: “Financial Entanglements”: Senator Richard Blumenthal (D-CT) introduced two resolutions condemning President Trump’s crypto ties: (1) S. Res. 243: A resolution condemning the financial entanglements of World Liberty Financial, Inc. with President Donald J. Trump, the Trump family, and the Trump Administration; and (2) S. Res. 245: A resolution condemning the financial entanglements of President Donald J. Trump with the $TRUMP memecoin.

Administration

SEC Charges Unicoin: The SEC charged Unicoin and top executives with making false and misleading statements in connection with an offering of certificates that purportedly conveyed rights to receive Unicoin tokens and an offering of Unicoin, Inc.’s common stock.

CFTC Commissioners to Depart: CFTC Acting-Chair Caroline Pham will return to the private sector after Brian Quintenz is confirmed as the new Chairman. Commissioner Kristin Johnson also plans to step down.

Interpretive Letter re: Susquehanna Crypto: The CFTC published an interpretive letter finding Susquehanna Crypto is a non-U.S. person under the Commodity Exchange Act and regulations issued thereunder.

Courts

Privacy/Fourth Amendment: A federal district court in Texas granted a preliminary injunction against Treasury’s enforcement of a Geographic Targeting Order (“GTO”) requiring money services businesses located near the southwest border to file Currency Transaction Reports with FinCEN at a $200 threshold, rather than historic threshold of $10,000, citing in part a likely Fourth Amendment violation.

Look Ahead

• The House and Senate are in a Memorial Day recess.

• The House is scheduled to return on Tuesday, June 3, the Senate on Monday, June 2.

• A House hearing on market structure is scheduled for June 4 at 10am.

Trivia

Last Week’s A: William T. Bagley was the first Chairman of the CFTC.

This Week’s Q: Since 1948, the Tomb of the Unknown Soldier at Arlington National Cemetery has been guarded 24/7 by soldiers of which U.S. Army Infantry Regiment, also known as “The Old Guard”?

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Hope you enjoy a restful Memorial Day weekend, and a special thank you to all who served our country in uniform.

-GSL

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