Blockchain Legal Resource

Under Chair Tim Scott (R-SC), the Senate Committee on Banking, Housing and Urban Affairs has announced several policy objectives favorable to the digital asset industry. We expect the Committee to take a more favorable view of the industry during the next Congress than in years past.

On January 23, 2025, President Trump issued an executive order on “Strengthening American Leadership in Digital Financial Technology.” Noting that the “digital asset industry plays a crucial role in innovation and economic development in the United States,” the executive order provides a framework for the new administration’s approach to the cryptocurrency sector.

With little fanfare, on January 23, 2025, the US Securities and Exchange Commission (SEC) withdrew controversial Staff Accounting Bulletin 121 regarding custody of digital assets. In its place, new Staff Accounting Bulletin 122 directs registrants to Accounting Standards Codification 450-20, Loss Contingencies and International Accounting Standard 37, Provisions, Contingent Liabilities and Contingent Assets.

On January 21, 2025, the SEC announced the formation of a new Crypto Task Force. Styled “Crypto 2.0” in the SEC press release, the announcement signals a shift in the agency’s approach to the digital asset sector coincident with the change in presidential administrations.