CryptoLink is a compilation of news stories published by outside organizations. Akin aggregates the stories, but the information contained in them does not necessarily represent the beliefs or opinions of the firm. Akin's May CryptoLink update includes developments and events that occurred in May 2025.
In May 2025, the leadership from the SEC provided guidance on digital asset regulation in several keynote addresses and round tables. The SEC's activities in May 2025 suggest a deliberate movement towards establishing a more clearly defined regulatory framework for digital assets. On May 12, 2025, SEC Chairman Paul Atkins provided the keynote address at the Crypto Task Force Roundtable on Tokenization. Chairman Atkins focused on the SEC's aim to "develop a rational regulatory framework for crypto asset markets," consistent with President Trump's goal to make the United States the "crypto capital of the planet." Moreover, the SEC dismissed several crypto-related enforcement actions, including cases against Binance and a resolution of the Ripple matter. This aligns with a shift towards regulatory reform rather than solely relying on enforcement to guide the industry. Last, the SEC demonstrated its continued commitment to pursuing fraud-based enforcement actions, as seen by its charges against the founder of Zero Edge, an online casino platform, for misappropriating millions of investor funds, as well as its charges against the crypto start up, Unicoin Inc., and its executives in connection with an offering fraud scheme.
In This Issue
- Key Regulatory and Policy Updates
- Key Developments
- Key Enforcement Actions
- Akin Thought Leadership
Key Regulatory and Policy Updates
After extensive negotiations among House Republican factions, the full House passed H.R. 1, the One Big, Beautiful Bill, on Thursday, May 22, by a vote of 215-214. In accordance with reconciliation directives, the bill pays for immigration, energy, and tax priorities, including the extension of the Tax Cuts and Jobs Act (TCJA) and the addition of other Trump priorities like no tax on overtime, tips, and social security. It will now be considered by the Senate, which has made changes in a number of areas. Although this bill has dominated members' attention, crypto and stablecoin legislation have maintained momentum. On May 29, the House released an updated version of its digital assets regulatory framework bill, the CLARITY Act, and preceded to report the bill out of the Committee by a vote of 32-19. House Financial Services Chairman French Hill (R-AR) said the bill "brings long-overdue clarity to the digital asset ecosystem, prioritizes consumer protection and American innovation, and builds off our work in the 118th Congress." Meanwhile, the Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoin Act (GENIUS; S.394) by a vote of 68-30. President Trump expressed support for the bill in a tweet shortly after the bill's passage. In the coming weeks, the House may take up its own stablecoin bill, the Stablecoin Transparency and Accountability for a Better Ledger Economy Act (STABLE; H.R. 2392), which has already been reported favorably out of committee with bipartisan support. While GENIUS and STABLE overlap in a number of areas, key differences would still need to be ironed out in conference before President Trump can sign any final bill into law.
Key Developments
Akin Partner Brian Daly Named Director of Division of Investment Management at SEC
On June 13, 2025, Akin announced that investment management partner Brian Daly has been named the new Director of the Division of Investment Management at the U.S. Securities and Exchange Commission (SEC). "Brian has been a wonderful colleague and a tremendous counselor for our clients," said Barbara Niederkofler, co-leader of Akin's investment management practice. "He is exceptionally qualified to lead the SEC's Division of Investment Management, and we wish him the very best in his new role." In recognition of his work at Akin, Chambers Global and Chambers USA have ranked Daly as a "leading individual" in investment funds. He has served on the board of directors of the Managed Funds Association and the Alternative Investment Management Association's CFTC Working Group.
Akin's press release can be found here, and the SEC's press release can be found here.
Chairman Hill Unveils Bipartisan Digital Asset Market Structure Legislation
On May 29, 2025, House Committee on Financial Services Chairman French Hill introduced the Digital Asset Market Clarity (CLARITY) Act, which would establish a regulatory framework for digital assets in the United States. House Committee on Agriculture Chairman G.T. Thompson, House Majority Whip Tom Emmer, House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chairman Bryan Steil, House Committee on Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development Chairman Dusty Johnson, Rep. Warren Davidson (R-OH), House Agriculture Committee Ranking Member Angie Craig (D-MN), Rep. Ritchie Torres (D-NY) and Rep. Don Davis (D-NC) are all original co-sponsors. Chairman Hill stated that the bipartisan CLARITY Act "brings long-overdue clarity to the digital asset ecosystem, prioritizes consumer protection and American innovation, and builds off our work in the 118th Congress."
Chairman Hill's press release can be found here.
Senate Votes to Push Forward GENIUS Act
On May 19, 2025, the U.S. Senate voted 66-32 to advance the GENIUS Act, a bill which establishes a regulatory framework for payment stablecoins. Under the bill, only permitted issuers may issue a payment stablecoin for use by U.S. persons, subject to certain exceptions and safe harbors. The bill specifies requirements for (1) reusing reserves; (2) providing safekeeping services for stablecoins; and (3) supervisory, examination and enforcement authority over federal-qualified issuers. On May 21, 2025, a motion to proceed passed 69-31 (51 Republicans and 18 Democrats voted in favor), moving the bill closer to a vote on final passage, which is expected following Congress's Memorial Day recess. Additionally, an amendment was circulated that would include negotiated changes into the bill, and is still subject to change, ahead of a final floor vote.
The bill and voting results can be found here.
President Trump Urges Swift Action on Genius Act
On June 18, 2025, President Trump took to Truth Social to applaud the Senate's recent passage of the GENIUS Act, calling it "an incredible Bill" that will make America the "UNDISPUTED Leader in Digital Assests." He also stressed the need for urgency and a clean version of the bill, with no delays or additional provisions.
President Trump's post can be found here.
Digital Asset Market Structure Discussion Draft Introduced by House Republicans
On May 5, 2025, a group of House Republicans including representatives from the House Committee on Financial Services Chairman French Hill, House Committee on Agriculture Chairman G.T. Thompson, House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence Chair Bryan Steil, House Committee on Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development Chair Dusty Johnson, released a discussion draft of a bill to establish a regulatory framework for digital assets in the United States (the Draft Digital Assets Bill). The Draft Digital Assets Bill aims to close regulatory gaps in a number of ways, including establishing clear lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the Draft Digital Assets Bill, digital asset developers will also be required to provide accurate, relevant disclosures, including information relating to each digital asset project's operation, ownership and structure. Additionally, market participants will have a clear process to register with the CFTC for digital commodity trading.
Chairman Hill's press release can be found here.
Senators Urge Treasury to Exempt Digital Assets from Unrealized Gains Rule
On May 12, 2025, Senators Cynthia Lummis (R-WY) and Bernie Moreno (R-OH) sent a letter to the Secretary of the Treasury, Scott Bessen, urging the Department of the Treasury to revise tax regulations that currently subject U.S. companies to taxation on unrealized gains from digital assets. The Senators maintained that the current tax policy "undermines fairness, distorts markets and penalizes U.S. companies for adopting innovative financial strategies."
Senator Lummis' announcement and letter can be found here.
Chairman Atkins' Keynote Address at the Crypto Task Force Roundtable on Tokenization
On On May 12, 2025, SEC Chairman Paul Atkins provided the keynote address at the Crypto Task Force Roundtable on Tokenization, which focused on the migration from traditional (or "offchain") databases to blockchain-based (or "on-chain") ledger systems. During the keynote, Chairman Atkins stated that a key priority of his Chairmanship "will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law." In addition, he noted that it is a "new day at the SEC" and policy-making will no longer result from ad hoc enforcement actions. Instead, the SEC "will utilize its existing rulemaking, interpretive, and exemptive authorities to set fit-for-purpose standards for market participants. The Commission's enforcement approach will return to Congress' original intent, which is to police violations of these established obligations, particularly as they relate to fraud and manipulation."
The text of the keynote address can be found here.
CFTC Commissioner Romero Issues Statement on Evaluation of Cases & Cooperation Credit
On May 21, 2025, CTFC Commissioner Christy Goldsmith Romero issued a statement to provide a "general explanation as to how one Commissioner evaluates cases and cooperation credit", supplementing the February 2025 CFTC Division of Enforcement Advisory on Self-Reporting, Cooperation and Remediation. In the statement, she proposed that "the CFTC as an agency increase transparency in public documents about enforcement decisions in specific cases, rather than rely on public documents with limited information supplemented by individual Commissioner statements." Specifically, Commissioner Romero overviewed seven important factors that she considers when making determinations regarding how to proceed in an action including the following: Factor 1: Recidivist, Repeat Defendant, Parallel Defendant; Factor 2: The Harm Posed; Factor 3: Scienter; Factor 4: The Nature of Charges and Who is Charged; Factor 5: Acceptance of Responsibility; Factor 6: Accountability and Deterrence; and Factor 7: Other Remedies and Undertakings.
The statement can be found here.
SEC Speaks Annual Conference Held
On May 19, 2025, the SEC hosted the annual "SEC Speaks" conference in which the Head of the SEC's Crypto Task Force, Hester M. Peirce, stated that "the Commission's approach to crypto in recent years has evaded sound regulatory practice and must be corrected. The Commission has relied on enforcement actions to tell people how it views the application of securities laws to crypto and as a substitute for notice-and-comment rulemaking. It has provided little useful guidance about how the securities laws apply under the facts and circumstances of crypto." However, Peirce noted that now the "Task Force is considering how to establish clear rules of the road for crypto asset transactions." Peirce further discussed how a key challenge for crypto market participants is "determining when a non-security crypto asset subject to an investment contract separates from the investment contract." Peirce then announced that "many crypto assets are likely to fall clearly within the "security" definition; traditional securities in tokenized form are still securities."
Commissioner Peirce's speech can be found here.
SEC Statement on Certain Protocol Staking Activities
On May 29, 2025, the SEC Division of Corporation Finance issued a statement on certain protocol staking activities as part of an effort to provide greater clarity on the application of the federal securities laws to crypto assets. The statement addresses the staking of crypto assets that are "intrinsically linked to the programmatic functioning of a public, permissionless network, and are used to participate in and/or earned for participating in such network's consensus mechanism or otherwise used to maintain and/or earned for maintaining the technological operation and security of such network." According to the statement, it is the Division's view that "Protocol Staking Activities" (as defined in the statement) "do not involve the offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 (the Securities Act) or Section 3(a)(10) of the Securities Exchange Act of 1934 and, accordingly, "participants in Protocol Staking Activities do not need to register with the SEC transactions under the Securities Act, or fall within one of the Securities Act's exemptions from registration in connection with these Protocol Staking Activities."
The SEC's statement can be found here.
SEC Announces Agenda and Panelists for Roundtable on Crypto DeFi
On May 28, 2025, the SEC's Crypto Task Force announced the agenda and panelists for its June 9 roundtable, "DeFi and the American Spirit." The roundtable, announced in March as part of a series, was open to the public and webcast live on the SEC's website. The roundtable was the fifth and last roundtable in the Task Force's "Spring Sprint Toward Crypto Clarity" series addressing the regulation of crypto assets.
The SEC's press release can be found here.
Dubai Enables Cryptocurrency Payments for Government Fees
On May 12, 2025, the government of Dubai announced that the Department of Finance had signed a memorandum of understanding with Crypto.com, a globally recognized cryptocurrency trading platform, to enable the payment of government service fees using cryptocurrencies. According to the press release, the partnership supports the implementation of the "Dubai Cashless Strategy" by enabling secure financial transactions through cryptocurrencies and also paves the way for Dubai's transition to a fully digital, cashless society.
The government of Dubai's announcement can be found here.
Dubai VARA Issues Updated Activity Rulebooks to Strengthen Market Integrity and Risk Oversight
On May 19, 2025, Dubai's Virtual Assets Regulatory Authority (VARA) announced the publication of Version 2.0 of its activity-based Rulebooks, marking the latest milestone in Dubai's ongoing commitment to delivering a future-proof regulatory framework that balances innovation with robust market safeguards. The updated Rulebooks include enhanced supervisory mechanisms across a number of regulated virtual asset activities. According to VARA's press release, key refinements in Version 2.0 include strengthened controls around margin trading and token distribution services, clearer definitions for collateral wallet arrangements and harmonized compliance requirements across all licensed activities. The updates are designed to promote greater market discipline, risk transparency and operational resilience across Dubai's virtual assets ecosystem.
VARA's press release can be found here.
UK to Require Crypto Firms to Report Customer Transactions
On May 14, 2025, the United Kingdom HM Revenues and Customs (HMRC) announced that UKbased "reporting cryptoasset service providers" (RCASPs) will need to report certain information to HMRC. U.K.-based RCASP will need to start collecting information about users and their transactions beginning on January 1, 2026. Depending on the information collected, RCASPs may need to submit a report to HMRC; if required, a first report will need to be submitted by May 31, 2027. By January 31, 2027, RCASPs also need to register with the online service (which is not yet live) and inform users that the RCASP will be reporting their details. Penalties of up to £300 can be imposed per user. Businesses are considered an RCASPif they (i) transact cryptoassets (defined in the announcement as "digital representation of value that uses a cryptographically secured distributed ledger (or similar technology) to validate and secure transactions") on behalf of users or (ii) provide a means for users to transact cryptoassets. Examples of an RCASP include cryptoasset exchanges, brokers and dealers.
HMRC's announcement can be found here.
Pakistan Creates Digital Asset Authority to Regulate Cryptocurrency
On May 21, 2025, Pakistan's Ministry of Finance endorsed the creation of Pakistan's Digital Assets Authority (PDAA). Muhammad Aurangzeb, Federal Minister for Finance and Revenue, announced that "Pakistan must regulate not just to catch up — but to lead. With the PDAA, we are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation."
A local news report can be found here.
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