Senate passes GENIUS Act, but the landmark stablecoin legislation could still face challenges in the House
The U.S. Senate has passed the GENIUS Act, marking a major bipartisan milestone for digital asset regulation. With strong support from both sides of the aisle in the Senate (68–30), the bill lays the groundwork for a federal framework governing dollar-backed stablecoins. The bill requires 1:1 reserves, monthly disclosures, and consumer protections, and it designates […]
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Review our Policy Tracker to stay informed about new or potentially forthcoming legislation or regulation affecting blockchain technology and high-tech financial services sectors in the United States. Come back for important updates.
Importantly, we make no representation whatsoever that the DLx Law Policy Tracker is up to date, comprehensive, or accurate, and it should not be relied on as legal or regulatory advice. Read our full disclaimer.
Jun 17, 2025
Senate passes GENIUS Act stablecoin bill, sending it to House for possible vote
On June 17, 2025, the Senate passed the GENIUS Act stablecoin bill in a 68–30 vote, marking the first time either body of the Congress has passed any comprehensive digital assets-focused legislation. The bill now moves to the House of Representatives, where it is undergoing review and markup by the House Agriculture and Financial Services Committees. Here, it could still face challenges, especially if the House passes a substantially modified or competing stablecoin bill (like the STABLE Act, H.R.2392) or rolls it into a broader crypto market infrastructure bill (like the CLARITY act, H.R.3633), in which event the Senate would need to approve again and might be unwilling to vote it through.
The GENIUS Act reflects rare bipartisan cooperation in the Congress and arrives amid growing institutional interest in issuing stablecoins. Several major banks and technology firms have already announced plans to launch dollar-pegged tokens in anticipation of regulatory clarity. The bill would require issuers to maintain minimum reserves, peg tokens to the U.S. dollar, and provide token holders with limited bankruptcy protections. It also prohibits certain forms of advertising. As introduced, the bill closely tracked the Lummis-Gillibrand Payment Stablecoin Act (S.4155), which failed to advance to a full Senate vote during the 118th Congress.
Last updated 06/19/2025.
History:
- Jun 17, 2025: The Senate passes the GENIUS Act with bipartisan support in a 68–29 vote, advancing the landmark stablecoin legislation to the House of Representatives for consideration.
- Jun 11, 2025: The GENIUS Act bill, as modified by the Hagerty amendment, passes through another cloture vote in the Senate, 68 to 30, the final procedural hurdle before a final vote on the Senate floor. S.A.2307.
- May 19, 2025: After managing to gain the support of 16 Democrats, 66 Senators vote to approve cloture on the GENIUS Act bill, a procedural move allowing the legislation to avoid filibuster with the agreement of at least 60% of the Senate.
- May 01, 2025: Sen. Bill Hagerty (R-Tenn.) introduces a new version of the GENIUS Act to the Senate of the 119th Congress. S.1582.
- Feb 04, 2025: Sen. Bill Hagerty (R-Tenn.) introduces the first version of the GENIUS Act to the Senate of the 119th Congress. S.394
Jun 12, 2025
IRS extends reporting requirements deadline for digital asset brokers
United States (Regulatory)
The U.S Treasury Department’s Internal Revenue Service (IRS) issued a public notice on June 12, 2025, extending the deadline for “digital asset brokers” to comply with the agency’s reporting requirements by an additional year, from January 1, 2026, now to 2027. Notice 2025-33. The IRS’s requirements, which were mandated in a July 2024 final rule titled “Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Sales,” originally would have required custodial digital asset brokers to begin reporting crypto sales and exchanges on Form 1099-DA starting January 1, 2025. 89 Fed. Reg. 56480. The IRS first extended the compliance deadline by a year in the same month as when they promulgated the final rule. Notice 2024-56, 29 I.R.B. 64.
Under the IRS’s previous guidance, brokers were also required to include cost basis information beginning in 2026. The biggest contributing factor in the IRS’s decision to delay the compliance deadline by another year was the significant burden digital asset brokers are facing in collecting TINs (‘taxpayer identification numbers’) from existing customers. Before the IRS published its final rule, most brokers had not been required to gather this information. The new notice (Notice 2025-33) now clarifies that brokers making good-faith efforts to comply with the new guidance will not be subject to the regulation’s strict backup withholding rules, which would otherwise require them to withhold 24% of gross proceeds from customers who fail to provide a valid TIN.
Last updated 06/16/2025.
History:
- Jun 12, 2025: The IRS issues a public notice extending by one additional year (until January 1, 2027) the deadline for digital asset brokers to comply with the new reporting requirements. Notice 2025-33.
- Jul 15, 2024: Shortly after publishing the final rule, the IRS issues an internal revenue bulletin extending the deadline for broker compliance from January 1, 2025, by one year. Notice 2024-56, 29 I.R.B. 64.
- Jul 09, 2024: The IRS publishes its final rule requiring digital asset brokers to comply with various tax reporting requirements but exempting certain activities, such as staking and certain DeFi liquidity operations. 89 Fed. Reg. 56480.
- Aug 29, 2023: The IRS issues a notice of proposed rulemaking (NPR) outlining draft digital asset broker reporting rules, triggering over 44,000 public comments from industry stakeholders. 88 Fed. Reg. 59576.
Jun 10, 2025
House FS and Ag Committees advance amended crypto market infrastructure bill
United States (Legislative)
On June 10, 2025, the House Financial Services and Agriculture Committees made significant advancements on the CLARITY Act, a comprehensive market infrastructure bill for digital assets. In a 32-to-19 vote, the Financial Services Committee adopted an amendment to the bill that creates a catch-all category for “tradable assets” (covering digital assets that fall outside the bill’s definition of “digital commodities”) that would be regulated by the Commodity Futures Trading Commission (CFTC) under the framework. Other changes include new broker-dealer disclosure requirements (which would require firms to explain how digital assets are treated in insolvency) and exemptions from money transmission licensing for developers and decentralized protocols that have no control over consumer funds.
Originally introduced on May 29 by House Financial Services Committee Chair French Hill (R-Ark.), the bipartisan CLARITY Act (also known as the “Digital Asset Market Clarity Act of 2025”) would divide oversight of digital assets between the CFTC and the Securities Exchange Commission (SEC). The bill would give the CFTC primary authority over most secondary market trading of digital assets, while preserving SEC jurisdiction at the inception stage of certain cryptocurrency projects. It would also create a CFTC-led registration regime for exchanges and intermediaries, mandate disclosures and asset segregation, and prohibit staking as a condition of access. The legislation aligns with the GENIUS Act (the federal stablecoin legislation currently being considered in the Senate) and reflects growing bipartisan support for a comprehensive regulatory framework.
Last updated 06/16/2025.
History:
- Jun 10, 2025: The House Financial Services and Agriculture Committees advance key amendments to the CLARITY Act bill before moving it to the floor of the House of Representatives for a vote.
- May 29, 2025: House Financial Services Committee Chair French Hill (R-Ark.) introduces the bipartisan CLARITY Act, a bill that would allocate digital asset oversight between the SEC and CFTC and establish a maturity framework for when cryptocurrency projects would shift between the two agencies. H.R.3633.
Jun 6, 2025
MAS makes sudden move to restrict crypto licensing for foreign firms
Singapore (Regulatory)
The Monetary Authority of Singapore (MAS) has tightened its approach to the regulation of Digital Token Service Providers (DTSPs) under the 2022 Financial Services and Markets Act (FSMA). On June 6, 2025 the MAS announced that DTSPs operating in Singapore but serving only foreign customers must obtain a license by June 30, 2025, or shut down. Citing money laundering risks, the MAS emphasized the licensing threshold would be high but that the agency “will generally not issue a license.” Failure to comply or cease operations is punishable by heavy fines and imprisonment. The new requirement does not apply to licensed DTSPs serving customers in Singapore (who are already regulated) or only distributing utility or governance tokens.
Singapore had a reputation as a hub for the digital assets industry, but many firms could now be forced to exit the jurisdiction on relatively short notice. The MAS issued a consultation paper in October 2024, outlining newly proposed FSMA requirements for DTSPs. Although the comment period on the MAS’s proposed rules closed in November, the MAS has yet to finalize the rules.
Last updated 06/13/2025.
History:
- Jun 06, 2025: MAS announces that unlicensed DTSPs serving only foreign customers must obtain a license under the FSMA by Jun 30, 2025, or cease operations.
- Nov 04, 2024: The comment period for the proposed regulation closes without any further announcements from the MAS as to implementation. MAS has said that they will give four weeks notice before the enactment of the proposed regulation.
- Oct 04, 2024: The MAS issues a consultation paper with proposed regulations for Digital Token Service Providers (DTSPs) under the Financial Services and Markets Act (FSMA).
Court Tracker
Consider DLx Law a source for updates on recent legal outcomes and ongoing cases that are shaping the landscape of blockchain and the financial services industry. With our Court Tracker, you can closely monitor other legal developments that are noteworthy for many of our clients and the industry as a whole. Check back in from time to time to stay informed about some recent regulatory enforcement actions and notable court cases.
Importantly, we make no representation whatsoever that the Court Tracker is up to date, comprehensive, or accurate, and it should not be relied on as legal or regulatory advice. Read our full disclaimer.
Notable Decisions
SEC v. Terraform Labs PTE Ltd. & Do Hyeong Kwon
S.D.N.Y. (Fed. Trial Ct.)
Filed: Feb 16, 2023
Description: The SEC charged Terraform Labs PTE Ltd and Do Hyeong Kwon with a multibillion-dollar crypto asset securities fraud. The SEC alleged that from April 2018 to May 2022, Terraform and Kwon raised billions of dollars from investors by offering and selling digital asset securities, including an algorithmic stablecoin called Terra USD (UST) and other crypto asset securities, many in unregistered transactions. In its complaint, the SEC alleged the following digital assets are unregistered securities: UST, LUNA, MIR.
Judgment entered
(Jun 12, 2024 )
Summary: The defendants entered a settlement agreement with the SEC, and the judge entered the consent order on June 12, 2024, with civil penalties, including just under $4.5 million in total monetary remedies against Terraform Labs, to be allocated under the organization’s Chapter 11 plan in U.S. Bankruptcy Court.
SEC v. Beaxy Digital, Ltd., et al.
N.D. Ill. (Fed. Trial Ct.)
Filed: Dec 25, 2023
Description: The SEC charged Beaxy (a digital asset trading platform) and its executives and founders with (1) raising $8 million in an unregistered securities offering (BXY tokens), misappropriating $900,000 of it for personal use, and (2) failing to register as a national securities exchange, broker, and clearing agency when facilitating the purchase and sale of digital assets as securities. The SEC alleged in its complaint that BXY tokens are securities.
Judgment entered
(Feb 13, 2024 )
Summary: The court entered default judgment against the defendants after they failed to make an appearance or respond to the SEC’s complaint.
In re: Coinbase Inc.
3d Cir. (Fed. Appeals Ct.)
Filed: Apr 24, 2023
Description: In spring of 2023, Coinbase filed an appellate-level petition seeking a writ of mandamus to compel the SEC to act on Coinbase’s pending rulemaking petition to provide clarity for the crypto industry.
Judgment entered
(Dec 18, 2023 )
Summary: Considered to be in large part the result of Coinbase’s mandamus petition seeking to compel a decision, the SEC on December 15, 2023, finally issued a formal decision denying Coinbase’s petition to have the SEC engage in rulemaking to clarify its interpretation of how securities laws can be applicable to business activities involving cryptocurrencies. As a result, the judge denied Coinbase’s mandamus petition as moot. Although it is not the outcome Coinbase sought, it now has a judicially reviewable decision to move forward with.
Ongoing Cases
U.S. v. Iurii Gugnin
E.D.N.Y. (Fed. Trial Ct.)
Filed: Jun 9, 2025
On June 9, 2025, the Department of Justice (DOJ) unsealed a 22-count indictment against crypto executive Iurii Gugnin, charging him with laundering over $500 million through cryptocurrency exchanges and U.S. banks. Prosecutors allege that Gugnin primarily acted on behalf of sanctioned Russian financial institutions, using his company, Evita, to facilitate transactions for various sanctioned entities worldwide. The DOJ also charged Gugnin with wire fraud, conspiracy to defraud the United States, and operating an unlicensed money transmitter business. Although Evita held a money transmitter license in Florida, the DOJ asserts that Gugnin secured it through fraudulent representations. If convicted, Gugnin faces a potential life sentence. Prosecutors claim Gugnin used Evita to facilitate purchases for foreign clients, including U.S. electronics and components (including those subject to export controls) for Rosatom, Russia’s state-owned nuclear technology company. Gugnin allegedly knew authorities were investigating him; the DOJ states he searched the web for “how to know if there is an investigation against you” and “evita investments inc. criminal records search.”
Status: DOJ prosecutors unsealed the 22-count indictment against Iurii Gugnin on June 9, 2025, and Gugnin was immediately arrested and now awaits trial. Updated 06/11/2025.
SEC v. Consensys Software Inc.
E.D.N.Y. (Fed. Trial Ct.)
Filed: Jun 28, 2024
Description: The SEC charged Consensys Software Inc., the development company behind MetaMask, for allegedly conducting unregistered offers and sales of securities by facilitating investments by MetaMask users into certain cryptocurrency staking protocols, namely, Lido and Rocket Pool. According to the SEC’s complaint, Consensys failed to register as a broker and did not meet the legal requirements for offering staking services while it collected more than $250 million in fees. The SEC’s complaint comes shortly after Consensys sued the SEC in April following its receipt of a Wells notice from the agency, challenging its attempts to classify ETH tokens and related staking service protocols as being unregistered securities.
Status: In anticipation of forthcoming guidance from the SEC’s Crypto Task Force, the SEC and Consensys jointly agreed to dismiss the case with prejudice. The move signals a strategic retreat in the agency’s approach to crypto infrastructure. It marks a win for firms that provide foundational services such as wallets and developer tools, rather than issuing or promoting tokens, and suggests that future enforcement may be reshaped by evolving internal policy. Updated 03/27/2025
SEC v. Celsius Network Limited, et al.
S.D.N.Y. (Fed. Trial Ct.)
Filed: Jul 13, 2023
Description: SEC charged Celsius and its founder and CEO (Alex Mashinsky) with engaging in unregistered offers and sales of securities and four counts of fraud in connection with allegations they raised billions from the sale and price manipulation of unregistered securities (CEL tokens) as part of its “Earn Interest Program.”
Status: On April 23, 2024, the Court ordered the parties to file a joint status report following the resolution of the criminal case against Mashinsky. On May 8, 2025, Mashinsky was sentenced to 12 years in prison. No status report has been filed yet in this matter. Updated 05/29/2025
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