On February 4, 2025, David Sacks, informally referred to as the “Crypto Czar,” held a press conference to outline the administration’s policy direction for blockchain technology and digital assets. Sacks emphasized the President’s commitment to fostering the responsible growth of digital assets and highlighted the formation of an executive branch working group dedicated to this objective. The administration’s stated goal is to encourage innovation while ensuring regulatory clarity and oversight.

SEC’s “Crypto Task Force” and Emerging Regulatory Framework
As noted in our prior Alert, the SEC has established a dedicated "Crypto Task Force" led by Commissioner Hester Peirce. The Task Force is charged with developing a federal regulatory framework for digital assets, including stablecoins, to provide greater clarity for market participants. Sacks indicated that the administration seeks to move away from the previous regulatory environment’s adversarial stance toward digital asset companies.

The administration’s approach aims to:

establish clear regulatory guidelines for digital asset issuers and financial institutions;
ensure value creation remains within the U.S. market to facilitate oversight and investor protection;
encourage innovation while mitigating risks associated with bad actors in the market.
Sacks further noted that legislative efforts regarding market structure and stablecoin regulation are underway, with bipartisan collaboration anticipated. He underscored the strategic importance of digital asset regulation in reinforcing the dominance of the U.S. dollar and bolstering economic growth. Additionally, the administration has commissioned a feasibility assessment for a potential bitcoin reserve, though this initiative remains in the preliminary evaluation phase.

Legislative Support and Key Stakeholders
Prominent lawmakers participating in the press conference reinforced the administration’s regulatory vision.

Senate Banking Committee Chairman Tim Scott expressed confidence in the coordinated efforts among the White House, Congress, and regulatory agencies, highlighting a 100-day timeframe for tangible progress.
House Financial Services Committee Chairman French Hill underscored the importance of stablecoin legislation and a clear regulatory framework in the 119th Congress.
Senate Agriculture Committee Chairman John Boozman, a long-time advocate for digital asset regulation, acknowledged the sector’s resurgence and stressed the necessity of protecting consumers while ensuring effective collaboration between the CFTC and the SEC.
House Agriculture Committee Chairman Glenn Thompson framed the regulatory initiative within the broader context of financial innovation, likening the digital asset sector’s growth potential to the early internet era. He outlined three core objectives: consumer protection, regulatory robustness, and fostering technological advancement.
A bicameral working group comprising members of the House and Senate Financial Services and Agriculture Committees will spearhead efforts to refine the evolving regulatory framework.

Conclusion
While details remain limited, the press conference underscored a unified effort to establish a structured, innovation-friendly regulatory environment. The administration’s focus on clarity, consumer protection, and financial leadership signals a significant shift in digital asset governance. We will continue to monitor these developments and provide timely updates as the administration's digital asset policies take shape.

Newly Proposed Stablecoin Legislation
Yesterday’s developments also included newly proposed stablecoin legislation from Chairman Scott who was joined by fellow Senate Banking Committee members, Senators Bill Hagerty and Cynthia Lummis, and by Senator Kirsten Gillibrand. They have proposed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which is legislation that would be designed to establish a long-awaited regulatory framework for payment stablecoins.

The legislation defines a payment stablecoin as a digital asset pegged to a fixed monetary value and sets clear licensing procedures for institutions issuing stablecoins. It imposes reserve requirements and tailored regulatory standards, applying the Federal Reserve’s framework to issuers with over $10 billion in stablecoins and the Office of the Comptroller of the Currency’s framework for nonbank issuers. State regulation is allowed for issuers under $10 billion, with a waiver process for those exceeding this threshold to remain state regulated. It also establishes supervisory, examination, and enforcement regimes.

Reshuffle at the SEC
Although there has been no formal announcement by the SEC, it was widely reported in the news yesterday that more than 50 attorneys and staff in the cryptocurrency arm of the enforcement division are being reassigned to other areas of the organization. These changes signal (as expected) that there will be much less enforcement attention on the crypto industry under the acting SEC Chair, Mark Uyeda, and his expected successor, Mark Atkins, whose appointment is pending Senate confirmation.