The digital asset policy landscape developed on multiple fronts this week. The House Financial Services and Agriculture Committees voted to advance the CLARITY Act, a bipartisan proposal to establish a regulatory framework for digital assets, moving the bill closer to a vote on the House floor. Both Committees released updated versions of the CLARITY Act, introducing a new category of “tradable assets” that would expand the CFTC’s jurisdiction, exemptions for non-custodial blockchain developers and new provisions on broker-dealer insolvency disclosures.

The Senate advanced a GENIUS Act substitute amendment (SA 2307) by voting 68-30 on the cloture motion, which features changes to gain additional support for the bill, clearing another procedural hurdle for the landmark stablecoin legislation.

Meanwhile, the SEC’s Crypto Task Force hosted a “DeFi and the American Spirit” roundtable, where Commissioners and industry experts debated the applicability of federal securities laws to decentralized systems and the constitutional limits of regulating code publication. SEC Chair Paul Atkins warned against applying securities laws to software developers solely for publishing code. Separately, Chair Atkins testified before the Senate Appropriations Committee, reaffirming that crafting a rational regulatory framework for crypto markets is a top priority of his term. The OCC also laid out its policy agenda for responsible digital asset engagement and innovation-driven banking reform.

On June 3, Hood delivered a speech at the U.S. Chamber of Commerce Capital Markets Summit outlining the OCC’s vision for a modern, inclusive and innovation-driven banking system. Hood emphasized accelerating bank-fintech partnerships and expanding responsible engagement with the digital assets industry.

• Hood highlighted the OCC’s Office of Financial Technology and its use of tools like regulatory sandboxes and virtual office hours to support safe and agile innovation. He pointed to the OCC’s recent conditional approval of a national bank transforming into a tech-enabled small-business lender. He shared insights from his visit to the BIS Innovation Hub in London to inform domestic regulatory approaches.
• Hood stated that digital assets and distributed ledger technologies are “not a passing trend,” but infrastructure for the future of finance. He noted the issuance of Interpretive Letter 1183 in March, which eliminated the requirement for banks to obtain a prior non-objection letter before engaging in digital asset activities. Instead, banks must demonstrate adequate risk management frameworks.

Senate Confirms Michelle Bowman’s Federal Reserve Nomination

• On June 9, Michelle Bowman was sworn in as Vice Chair for Supervision of the Board of Governors of the Federal Reserve System. The Senate voted to confirm Bowman on June 4. Senate Banking Committee Chairman Tim Scott (R-SC) has applauded Bowman’s confirmation.

Senate Agriculture Picks Date for CFTC Nomination Hearing

• On June 10, the Senate Agriculture Committee held a nomination hearing for Brian Quintenz, the President’s nominee to serve as Chair of the CFTC. The hearing follows the announced departures of four of the CFTC’s five commissioners. Senate Agriculture Committee Chair John Boozman (R-AR) told Politico the committee is moving “as quickly as possible” to advance the nomination.