Lowenstein crypto Advises the main projects, exchanges and trading companies for digital assets and cryptocurrencies. Our practice covers regulatory advice, transactions and structuring advice, investigations and contradictory issues, including commercial disputes, bankruptcy and related disputes. While these markets are continuing their rapid growth and market players continue to evolve and mature their activities, we provide this weekly digest as a resource that highlights and summarizes a selection of recent key legal developments.
The Committee of the Chamber of Financial Services is hearing on navigation on the digital payments ecosystem
On March 11, the Chamber’s Financial Services Committee held an audience on examining the federal framework for payment on stablescoins and the consequences of a digital currency from the American Central Bank (CBDC). The audience was led by President French Hill (AR-02) with testimonies from Patrick Collison, CEO and co-founder of Stripe, Caroline Butler, chief of digital assets of the New York Mellon Corporation Banque, Charles Cascarilla, CEO and co-founder of Paxos, Randall Guynn, President of Geoeconoms Group of Davis Polk. In the opening remarks of President Hill, he opposed the CBDC, stressing his concern that a digital currency controlled by the government rivals directly with the private sector and compromises the progress of the stablecoins. See the opening remarks of President Hill here and a recording of the hearing here.
President Trump establishes the Bitcoin Strategic Reserve and US digital asset stocks
On March 7, President Donald Trump signed an executive decree establishing the Bitcoin Strategic Reserve (Bitcoin reserve) which will deal with Bitcoin as a reserve asset. President Trump has signed the executive decree to ensure that the United States has a strategic approach to manage digital assets under its control. The Bitcoin reserve will be capitalized with Bitcoin belonging to the US Treasury Department which was lost in the context of the civil or criminal confiscation procedure. As part of an additional part of the decree, President Trump created the stock of the American digital asset, which includes digital assets other than Bitcoin which belong to the US Treasury department which were also confiscated within the framework of the civil or criminal confiscation procedure. The federal government will only acquire digital assets of digital asset stocks that have been collected through these confiscation procedures. By creating the Bitcoin reserve and the storage of digital assets, CBDC cannot be used by a decree that the president of President Trump signed in January. See the new decree here and an overview of the January decree here.
The top of digital assets of the White House
On March 7, President Trump welcomed several cryptographic leaders at the White House for the first summit of digital assets in the White House. Among other things, the cryptographic leaders present were the commissioner of Securities and Exchange Commission (SEC) Hester Peirce, acting president of the Commodity Futures Trading Caroline Pham, and the Czar David Sacks. At the top, President Trump presented remarks in which he congratulated Congress for working on bills that provide regulatory certainty to those in the digital asset market. In addition, President Trump expressed the hope that cryptographic legislation will arrive at his office before the recess of August. See President Trump’s remarks here.
OCS reaffirms the position that banks can engage in certain cryptocurrency activities
On March 7, the office of the controller of the published interpretation letter of the motto (OCS), confirming that national banks and federal savings associations can engage in activities related to crypto-actor police custody (as described in the letter of interpretation 1170), certain activities of Stablecoin (as described in the letter of interpretation 1172), and participation as operators (as described in the letter of interpretation 1174). The letter of interpretation 1183 also cancels the old position of the WC according to which the higher financial institutions of the ACC must receive approval before engaging in these activities related to cryptocurrency. The intention of the Occ is to “reduce the burden, encourage responsible innovation and improve transparency”. The letter of interpretation 1183 positions the federal banking system and its participants to engage in the activity linked to cryptocurrency and a new general innovation in space. See the press release from the West here and a copy of the letter of interpretation 1183 here.
The House of Representatives vote to advance the resolution reversing the Rule of the broker Irs Defi
On March 11, the Chamber of Representatives of the United States (House), by a vote of 292-132 with a majority bipartite, adopted the resolution of the Congress Examination Act aimed at canceling the Rule of the Internal Internal Service (IRS) which would have imposed certain declaration requirements on decentralized financing operators (DEFI). The voting of the House follows the approval of the Senate on March 4 to cancel the rule. The Senate’s second vote will follow, and if it is adopted, President Trump’s approval will determine whether the IRS broker rule will be canceled and if the IRS will be prohibited to adopt a similar rule. See the resolution here And the result of the House vote here.
Singapore and Vietnam agree to collaborate to establish a regulatory framework for digital assets
On March 12, the Singapore monetary authority (Mas) and the State Securities Commission of Vietnam (SSC) agreed to collaborate in the development of the regulatory framework for digital assets for Vietnam. Mas and SSC will share information and experience relating to existing regulatory executives for capital markets and digital assets, laundry whitening and financing the fight against terrorism and supervision functions. The objective of the letter of intent is to promote stable, fair, transparent and sustainable regulatory environments in both countries. See the joint press release here.
