U.S. Congress Archives - Coin Engineer

Regulatory Uncertainty Continues in the Crypto Space

Emre Yumlu — Fri, 01 Aug 2025 10:00:38 +0000

As the crypto market continues its rapid growth in recent years, regulatory uncertainty remains one of the biggest obstacles facing the industry. Most recently, a notable call for reform came from Michael Saylor, founder and executive chairman of Strategy. Saylor urged the U.S. government to clearly define the difference between digital securities and digital commodities, and to establish precise conditions under which securities can be tokenized.

A Clear Digital Asset Classification is Essential

Speaking during Strategy’s second-quarter earnings call, Saylor emphasized the importance of a well-defined classification system for digital assets, stating:

“In my opinion, the greatest contribution to the market would come from clarifying the taxonomy of digital assets.”

He pointed to several critical questions that still need answers:

Under what conditions can a security be tokenized?
What exactly constitutes a digital security?
What distinguishes an asset with no issuer from a digital token?

Until regulators provide clear answers to these questions, Saylor warned that regulatory confusion in the crypto space will continue to pose serious challenges. He also noted that the U.S. Securities and Exchange Commission (SEC) has already formed a Crypto Task Force in an effort to address some of these uncertainties.

White House and SEC Begin to Respond

Saylor’s remarks come at a time when the White House Working Group on Digital Asset Markets has also begun pushing for clearer guidelines. In a statement released Wednesday, the group urged federal regulators to take faster action on key issues such as custody, trading, registration, and recordkeeping for crypto assets.

On Thursday, SEC Chairman Paul Atkins acknowledged that much of the innovation around tokenization is happening outside the United States due to existing regulatory hurdles. However, he revealed that numerous companies are currently “lined up at our doors with tokenization requests.” In response, Atkins said he has directed SEC staff to “offer relief where appropriate” to ensure that the U.S. remains competitive in the evolving digital asset landscape.

Crypto Legislation on the Horizon

In parallel with these regulatory developments, the U.S. Congress is working on a new legislative proposal aimed at clarifying key definitions in the crypto industry. Titled the Digital Asset Market Clarity Act of 2025, the bill is scheduled for review in Congress this September.

Saylor expressed strong support for this initiative, saying it could create a comprehensive framework not only for the crypto sector but also for traditional businesses. He even envisioned a scenario where 40 million businesses could issue a token in just four hours for $40, underscoring the transformative potential of blockchain technology in bridging digital assets and real-world finance.

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Trump’s Crypto Ties Spark Chaos in U.S. Congress

Yigit Taha OZTURK — Tue, 06 May 2025 19:00:01 +0000

On May 6, U.S. Representative Maxine Waters, ranking member of the HFSC, led several Democratic lawmakers in walking out of a joint digital assets hearing. Waters accused former President Donald Trump of serious conflicts of interest regarding his crypto ownership and influence over regulators, calling the event tainted by “crypto corruption.”

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

In response, Republican lawmakers rebranded the hearing as a “roundtable” to bypass procedural rules and continued discussions.

Crypto Regulation Becomes a Political Battlefield

Despite the political tension, HFSC Chair French Hill pushed forward with calls to build a lasting crypto regulatory framework. Democrats, however, raised concerns about Trump’s memecoin, his family’s ties to crypto firms, and a $2 billion investment involving USD1 stablecoin and Binance.

In protest, Democrats released draft legislation to ban the President, Vice President, members of Congress, and their families from owning or profiting from crypto. The bill also restricts them from holding leadership positions at digital asset companies.

As crypto legislation collides with politics, progress on the market structure bill may face serious delays. The battle over Trump’s crypto connections signals deeper divisions over the future of digital assets in the U.S.

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Why Institutions Are Hesitant About DeFi?

Yigit Taha OZTURK — Sun, 30 Mar 2025 14:00:20 +0000

Institutional investors remain cautious about adopting decentralized finance (DeFi) solutions. SilentSwap founder Shibtoshi highlighted key concerns preventing institutional DeFi adoption: lack of privacy, unstandardized compliance regulations, and legal uncertainties.

Challenges of DeFi for Institutional Players

According to Shibtoshi, the high transparency of blockchain transactions clashes with corporate needs to protect sensitive information, such as trading strategies, payroll details, and B2B agreements.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

“The main concerns — regulatory uncertainty, privacy limitations, and complex user experience — are real, but solvable. Innovations in privacy-preserving protocols are making DeFi increasingly compatible with enterprise needs.”

Regulatory inconsistencies across jurisdictions further hinder adoption. Are DeFi tokens securities? How are DAOs legally accountable? These questions remain unanswered.

The Risk of Overregulation in DeFi

The U.S. Congress recently repealed the IRS broker rule, which required DeFi platforms to report customer transactions. However, DeFi still faces major regulatory threats.

Crypto entrepreneur Artem Tolkachev warned that strict compliance measures could undermine decentralization in DeFi:

“Overregulation increases censorship risks and shifts control from users to third-party intermediaries and large institutions.”

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Democrat Lawmaker Opposes Trump’s Bitcoin Reserve Plans!

Yigit Taha OZTURK — Fri, 14 Mar 2025 09:30:40 +0000

U.S. House Representative Gerald E. Connolly has sent a letter to the U.S. Treasury Department, urging it to halt the Donald Trump administration’s plans to establish a Bitcoin reserve. Connolly argued that this initiative does not serve the public interest and would instead enrich Trump and his donors.

Bitcoin Reserve Controversy

In his letter to U.S. Treasury Secretary Scott Bessent, Gerald E. Connolly stated that the proposed cryptocurrency reserve by the Trump administration lacks economic justification. He further warned that the government favoring specific digital assets through social media could disrupt the market.

According to Connolly, establishing such a reserve holds no strategic benefit for taxpayers. The Federal Reserve (FED) also criticized the initiative, calling it “the dumbest idea ever.”

Trump and Crypto Conflict of Interest

Connolly pointed out that the Trump administration did not consult Congress before moving forward with the Bitcoin reserve plan and did not receive any official authorization. He also accused Trump of a conflict of interest, as the Trump Organization owns the crypto platform World Liberty Financial and has profited significantly from the Official Trump (TRUMP) memecoin.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

The Democrat lawmaker described the TRUMP token as “Trump’s most lucrative get-rich scheme yet.” Other Democrats, including Maxine Waters, also criticized the token, arguing that Trump’s crypto initiatives do not serve the public good.

Treasury Department’s Response Awaited

Connolly has requested the U.S. Treasury Department to provide documents detailing the creation of the Bitcoin reserve and to clarify what steps the Trump administration has taken to prevent conflicts of interest. He also inquired about which crypto assets the government currently holds.

Meanwhile, the White House stated that the Strategic Bitcoin Reserve would only consist of cryptocurrencies seized in federal criminal or civil cases and would be managed through budget-neutral strategies. The Digital Asset Stockpile, on the other hand, would include non-Bitcoin cryptocurrencies, such as XRP, Solana, Cardano, and Ethereum.

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U.S. Congress Overwhelmingly Rejects SEC’s SAB 121: What’s Next?

Tanju Akbıyık — Sat, 18 May 2024 12:00:05 +0000

On May 16, 2024, the U.S. Senate took a big step by passing the Congressional Review Act (CRA) to review the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 121 (SAB 121). The resolution, H.J. Res. 109, was backed by a great number of people, and it passed with a vote of 60 to 38, which shows that both parties were working together for this cause. This vote had 21 Democratic Senators who did not follow their party’s line and voted for the bill, which is proof that there is a political consensus on crypto regulation.

Biden’s Veto Threat

Although the Congress had approved it, President Biden had earlier said that he would veto the resolution, which was to be aimed at overturning the SEC’s policy. The White House said that it is “firmly against” the actions of those who are trying to disrupt the SEC measures, which were designed to protect investors in crypto-asset markets while at the same time safeguarding the whole financial system. This position emphasizes the government’s will to have strict regulatory frameworks in the financial sector.

Crypto Bill Receives Wide Approval

Perianne Boring, the founder and CEO of the blockchain trade association Digital Chamber, stressed that it was necessary for Congress to pass H.J. Res. 109 with strong support. Boring pointed out that SAB 121 was so controversial that it made 21 Democratic Senators support the bill, among them Senate Majority Leader Chuck Schumer. This bipartisan support means that the Biden administration may have to change its cryptographic regulations.

The White House’s Dilemma

The Biden administration is in a dilemma. The vetoing of the resolution could result in a civil war within the Democratic Party, especially with the next U.S. elections approaching. Patrick Kirby, the policy lead for the Crypto Council for Innovation, said that the President has ten days (except Sundays) to sign a resolution and make it law without his signature or veto. Another option is a “pocket veto,” in which the president can let the bill die if Congress is not in session.

External Pressures and Political Maneuvers

The Biden administration is not only faced with political pressure but also social pressure. The American Bankers Association has asked President Biden to sign the resolution so that it can be a law and protect American consumers, as well as support, through this, the banking sector’s interest in offering custody services for cryptocurrencies. Furthermore, former President and presidential candidate Donald Trump’s pro-crypto stance is a political strategy in itself. The change of Trump from his anti-Bitcoin position to his support for crypto can affect the voter mood before the November 2024 elections.

Potential SEC Reconsideration

The solution to the conflict is possibly in the SEC itself. Commissioner Hester Pierce was a part of the Blockchain Summit, and she said that SAB 121 has been criticized heavily and may even make industry participation decrease. If the SEC annuls SAB 121, President Biden will not have to make a tough veto decision.

Awaiting the Next Move

The SEC’s decision on SAB 121 is a crucial point in the Biden administration’s choice of action. The controversy shows the never-ending fight between regulations and innovations in a very fast-growing cryptosphere. Being broadly supported by the Congress and being of great public and industry interest, the next steps taken by both the White House and SEC will be observed very closely by all concerned.

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