- with readers working within the Healthcare industries
With most federal agencies idled by the ongoing government shutdown, digital-asset policy has entered a holding pattern. Market-structure legislation now appears highly unlikely for this Congress. Comment periods are paused, rulemakings delayed, and some courts are scaling back operations. Even amid the slowdown in Washington, market participants are pressing ahead with regulatory engagement, product development and infrastructure planning.
We also note — with both pride and sadness — that Jonathan Schmalfeld has left Polsinelli and his role on the BitBlog team to become Head of Policy at the Digital Chamber.
Important OCC and Fed Remarks on Stablecoin Oversight – Don't Expect Shocks
Background: Acting Comptroller Jonathan Gould told the American Bankers Association convention in Charlotte that regulators do not expect interest-earning stablecoins to trigger a sudden drain on bank deposits, emphasizing that any shift would be gradual and closely monitored. He added that if deposit flight ever rose to a "safety and soundness" concern, banking agencies would respond. His comments followed those of Federal Reserve Vice Chair Michael Barr, who recently urged Congress to close remaining "gaps" in the pending stablecoin legislation to ensure consistent reserve and supervisory standards.
Analysis: Read together, Barr's and Gould's remarks make clear that while regulators welcome the GENIUS Act as a starting framework, they remain focused on the areas it leaves open — including uneven reserve quality, state-federal chartering inconsistencies and the risk of synthetic-yield structures. Both comments suggest an intent to tighten standards through implementation rather than expand market flexibility. In practice, that means stablecoin issuance and custody are likely to be treated increasingly like traditional bank activities — subject to consolidated oversight, capital and liquidity requirements and limits on where and how yield can be offered — effectively pulling the activity further inside the prudential perimeter rather than leaving it to fintech-style experimentation. Gould's emphasis on allowing smaller banks to participate is notable, but the broader message is that stablecoin operations will face the same discipline expected of insured depository institutions.
Fordham Blockchain Conference: Full House, Even Without Regulators
The Fordham Blockchain Conference once again drew a packed audience of lawyers, policymakers and industry participants. Even without most federal regulators and commissioners — many of whom were grounded by the shutdown — the conference delivered meaningful discussion and debate among many of the leading lawyers and firms in the space.
Special thanks to Professor Donna Redel (Fordham), Greg Xethalis (Multicoin Capital) and Joyce Lai for organizing another thoughtful program. Joyce was absent this year for the best of reasons: welcoming baby Selene, the newest member of the blockchain community.
SEC Chair Paul Atkins attended and spoke, showing the depth of his personal commitment to the space. His participation during a week when most of Washington was shut down underscored how invested he remains in the sector's development.
Jonathan Schmalfeld Joins the Digital Chamber as Head of Policy
We also mark an important transition for the BitBlog team. Jonathan Schmalfeld, our longtime contributor and lead writer, has taken on a new role as Head of Policy at the Digital Chamber, the leading blockchain and digital-asset advocacy organization. Jonathan's analytical approach and ability to connect policy to practice helped define the BitBlog's voice. While we'll miss him on these pages, we look forward to collaborating with him in his new capacity.
Briefly Noted
- Global regulators raise concerns. Both the
Financial Stability Board (FSB) and the International Organization
of Securities Commissions (IOSCO) issued reports this month warning
that uneven national implementation of crypto-asset and stablecoin
frameworks is creating regulatory fragmentation and potential
systemic risks. The FSB's peer review identified
"significant gaps and inconsistencies" across
jurisdictions, while IOSCO reiterated its call for global
convergence under the "same activity, same risk, same
regulation" principle. Together, the statements reinforce
that international coordination remains a top supervisory priority
as crypto activities increasingly intersect with traditional
markets.
(Read the FSB statement | Read the IOSCO release) - Capital-markets activity continues. A major crypto exchange announced plans to go public via a $1 billion SPAC, reflecting continuing investor appetite despite the lack of U.S. market-structure legislation.
- Corporate treasury adoption grows. It has been reported that Newsmax plans to create a corporate crypto reserve composed of Bitcoin and "Trump Coin," continuing the trend of non-financial companies allocating to digital assets — albeit with a distinctly political twist.
Conclusion
With Washington largely shut down, the pace of formal rulemaking has slowed, but the underlying policy work has not. The GENIUS Act's implementation phase is now where the real battles over scope, supervision and access will play out. For the moment, progress in digital assets looks less like forward motion and more like quiet positioning — agencies drafting, industry waiting and everyone trying to read what comes next.
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