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Crypto Policy Crossroads: Senate Pushes Digital Asset Frameworks for Markets and Mortgages
Digital regulation gains momentum as lawmakers weigh oversight frameworks and new use cases
Senate Committee Unveils Digital Asset Regulation Framework
In a pivotal move for U.S. digital asset oversight, the Senate Banking, Housing, and Urban Affairs Committee has released a Discussion Draft aimed at formally regulating the crypto ecosystem. The proposal introduces foundational definitions, seeks jurisdictional clarity between federal agencies, and proposes comprehensive guardrails for stablecoins and digital asset intermediaries.
This marks a shift from fragmented enforcement to a structured legislative path, with implications for how exchanges, custodians, and token issuers will operate in the years ahead.
Key Elements of the Draft Legislation
Defined Classifications of Digital Assets:
The bill distinguishes between payment stablecoins, digital commodities, and securities, creating tailored compliance expectations for each.Clarifying SEC vs. CFTC Authority:
Digital commodities would fall under CFTC jurisdiction, while the SEC would retain authority over assets resembling investment contracts, especially those with profit expectations tied to a third party’s efforts.Stablecoin Oversight and Reserve Requirements:
Issuers would face federal registration and strict prudential standards, including full reserves in eligible assets, regular audits, and anti-money laundering (AML) protocols—drawing parallels with the Lummis-Gillibrand Payment Stablecoin Act.Consumer Disclosures:
Retail-facing platforms would be required to deliver a standardized “digital asset disclosure form,” mirroring mutual fund prospectuses to inform users about risks, fees, and legal standing.Custody and Commingling Protections:
Intermediaries would be barred from mixing customer funds with corporate assets, with enhanced custody and recordkeeping practices designed to avoid failures akin to FTX.
Reactions and Outlook
The industry has responded with cautious optimism, welcoming the move toward regulatory clarity. However, concerns remain over the breadth of federal reach, especially as it pertains to software developers and decentralized protocols.
Regulatory agencies are divided. While the CFTC supports expanded authority over digital commodity markets, the SEC continues to assert a broad view of its existing jurisdiction.
Although still in discussion phase, the draft opens the door for bipartisan negotiations, and could intersect with parallel bills such as the GENIUS Act and the CLARITY Act, both of which aim to modernize digital asset laws.
Crypto Assets in Homeownership? Lummis Targets Mortgages Next
In a surprising intersection of crypto and housing finance, Senator Cynthia Lummis (R-WY) has introduced the 21st Century Mortgage Act, a bill that would allow cryptocurrencies to be considered as assets during mortgage evaluations.
The legislation would codify a June 2025 directive from the Federal Housing Finance Agency (FHFA), which instructs government-backed mortgage purchasers like Fannie Mae and Freddie Mac to explore incorporating digital assets in loan risk assessments.
“This legislation embraces an innovative path to wealth-building, keeping in mind the growing number of young Americans who possess digital assets,” said Senator Lummis.
A Generational Wealth Tool – Or a Risk Factor?
The proposal comes amid generational shifts in asset ownership. According to U.S. Census data, homeownership among Americans under 35 sits at just 36% as of Q1 2025—well below historical averages.
The bill would allow crypto-holding borrowers to leverage their digital wealth without converting to fiat, offering a new route to homeownership. However, Senate Democrats have raised concerns, citing crypto's volatility and liquidity risks that may complicate borrower stability.
In a July 24 letter, several lawmakers urged FHFA Director William Pulte to fully examine the systemic implications of such a move.
Momentum Builds Across Chambers
The 21st Century Mortgage Act is one of several crypto bills expected to be discussed after the Senate’s August recess. Others include:
A market structure bill that defines how crypto assets are traded and regulated.
A House-passed bill barring the Federal Reserve from launching a central bank digital currency (CBDC).
A House companion bill, the American Homeowner Crypto Modernization Act, introduced by Rep. Nancy Mace (R-SC), which also mandates that mortgage lenders consider digital asset balances held on registered exchanges.
Globally, similar initiatives are taking shape. Australia-based Block Earner recently announced Bitcoin-backed mortgage offerings, following a court ruling that its crypto lending services did not qualify as financial products under Australian law.
Conclusion: Crypto Enters the Regulatory and Housing Mainstream
From stablecoin regulation to mortgage underwriting, digital assets are entering formal policy discussions across U.S. institutions. The Senate’s regulatory proposals reflect a maturing market landscape—one that increasingly demands legal clarity, consumer protection, and financial integration.
While significant hurdles remain, these legislative developments suggest that digital assets are no longer peripheral. They are becoming part of the financial system’s foundation—not just as speculative investments, but as tools for access, collateralization, and wealth-building.
@ Newshounds News™
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White House Readies Crypto ‘Regulatory Bible’ Amid Push for Strategic Bitcoin Reserve
New report expected to define U.S. digital asset rules for years to come
The White House is preparing to release a sweeping report this week that industry leaders have dubbed a “regulatory Bible”—a document expected to shape U.S. crypto policy and rulemaking for the foreseeable future.
The report stems from a January 2025 executive order by President Donald Trump establishing the President’s Working Group on Digital Asset Markets, tasked with delivering a detailed roadmap on how federal agencies should approach the evolving digital asset economy. The working group includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and SEC Chair Paul Atkins, among others.
While the contents of the report have not been officially released, early insights suggest it will influence every major regulatory decision over the next three and a half years.
“This will dictate every rulemaking or guidance document that comes out,” said Cody Carbone, CEO of The Digital Chamber, in an interview with The Block. “I do think it is a big deal.”
Legislative Context: A Convergence of Bills and Executive Strategy
The timing of the report coincides with a flurry of congressional activity. In mid-July, the House passed both a stablecoin oversight bill and broader digital asset market regulation, sending them to the president’s desk or over to the Senate for reconciliation.
Senate Republicans have targeted September 30 as a date to vote on a companion digital asset bill. The White House report is expected to fill critical regulatory gaps, guiding both federal agencies and lawmakers as they refine legislative proposals like the GENIUS Act, the CLARITY Act, and emerging digital payment infrastructure bills.
Carbone noted that the report may also revisit or repeal prior agency guidance, helping to standardize how platforms, issuers, and consumers engage with digital assets.
Bitcoin Reserve Still Uncertain, But a Priority
One of the more ambitious proposals under discussion is the creation of a U.S. strategic bitcoin reserve—a concept floated by President Trump in a March 2025 executive order. That order tasked key administration officials with exploring budget-neutral strategies to acquire and manage a digital asset stockpile, including bitcoin, without adding cost to taxpayers.
However, sources indicate the upcoming report does not yet include language on the bitcoin reserve, although that could change prior to publication.
“Nothing is set in stone,” Carbone said. “But I’m hoping the report will shed light on how the administration plans to acquire bitcoin and what a stockpile would include.”
Industry Expectations: Tax Policy and Tokenized Securities in Focus
Alongside regulatory clarity, tax treatment of digital assets ranks among the industry’s top priorities.
The Digital Chamber submitted a letter to Bo Hines, Executive Director of the Presidential Council of Advisers for Digital Assets, emphasizing key industry needs:
Clear and consistent tax guidelines for digital asset transactions and holdings.
A legal framework for tokenized securities and digital commodities.
Harmonized federal oversight across agencies, avoiding duplicative compliance burdens.
“Tax clarity is number one,” Carbone said. “That needs to be one of the foundational portions of this report and where Washington leans in.”
A Pivotal Moment for U.S. Crypto Policy
Industry leaders are treating the forthcoming release as a watershed moment in U.S. digital asset policy.
“We look forward to the release tomorrow... a significant milestone following this year’s executive order on digital assets,” said Summer Mersinger, CEO of the Blockchain Association.
“While most of the actions have been agency or Congress driven, the White House’s prioritization of crypto has been evident,” added Ron Hammond, head of policy and advocacy at Wintermute.
A briefing is scheduled for 2:30 p.m. Wednesday, involving both government officials and select industry stakeholders. It remains unclear whether the full report will be released before or after the session.
If fully realized, the report could define a national crypto strategy—from regulatory harmonization to strategic asset acquisition, tax reform, and digital infrastructure development. As the federal government accelerates its crypto policymaking, the industry is now positioned at a critical juncture between legitimacy and liability, growth and governance.
@ Newshounds News™
Source: The Block
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BlackRock Endorses Stablecoins as Key to Strengthening U.S. Dollar Dominance
GENIUS Act Seen as Dual Catalyst for U.S. Treasury Demand and Global Dollar Supremacy
BlackRock, the world’s largest asset manager with over $12.5 trillion in AUM, has added its voice to a growing chorus of analysts and policymakers suggesting that stablecoins could significantly enhance the U.S. dollar’s dominance in a rapidly digitizing global economy.
In a recent weekly commentary, BlackRock strategists praised the newly established U.S. stablecoin regulatory framework as a "step in the right direction" for the dollar. Their position reinforces the narrative that tokenized versions of the U.S. dollar, under proper regulation, could extend the reach of America’s fiat currency into new international use cases—including on-chain institutional settlement.
“Tokenized forms of the U.S. dollar will bolster its dominance, especially as institutional transactions move on-chain,” BlackRock noted.
“Stablecoins are part of the future of finance.”
GENIUS Act Ushers in First-Ever Federal Crypto Framework
The commentary follows passage of the GENIUS Stablecoin Act, the first federal crypto bill to be signed into law in the United States. The bipartisan legislation provides a regulatory blueprint for stablecoin issuers and outlines strict reserve requirements intended to strengthen market confidence and tie stablecoins directly to U.S. financial infrastructure.
BlackRock analysts highlighted that the law’s mandate for stablecoin issuers to hold reserves in U.S. Treasuries, money market funds, and repurchase agreements will generate a dual benefit:
Boost demand for short-term U.S. debt instruments, and
Enhance the credibility and attractiveness of stablecoins in both domestic and international markets.
From Under $50B to $273B: Stablecoins Enter Institutional Era
The stablecoin market has expanded from under $50 billion in 2021 to $273 billion as of July 2025, with rapid institutional integration now underway. The two largest stablecoin issuers—Tether and Circle—currently hold a combined $120 billion in U.S. Treasury bills, already representing 2% of the $6 trillion Treasury market.
As stablecoins gain traction across emerging markets, cross-border payments, and decentralized finance, BlackRock expects their share of Treasury demand to grow significantly, potentially reshaping liquidity flows in short-term government securities.
Dollar’s Digital Edge: First-Mover Advantage in Global Payments
While the U.S. dollar already dominates global trade, the rise of Bitcoin and other non-sovereign digital assets poses new challenges to fiat relevance. Stablecoins, especially those pegged to the U.S. dollar, offer a strategic counterbalance—allowing the greenback to maintain its primacy within blockchain-based financial systems.
“Stablecoins expose the dollar to entirely new digital use cases,” BlackRock stated, especially in jurisdictions where local currencies are unstable or access to U.S. dollars is restricted.
However, the firm cautioned that a prohibition on interest-bearing stablecoins—included in the GENIUS Act—could limit their appeal in certain major markets, particularly those where competitive yield is essential for adoption.
Bitcoin's Parallel Role: Risk, Return, and Digital Hedging
In the same analysis, BlackRock acknowledged that Bitcoin will also play a crucial role in the digital financial future—but as a risk asset rather than a stable store of value. While the firm has promoted BTC through its iShares Bitcoin Trust (IBTC) and other financial instruments, BlackRock continues to position Bitcoin as complementary to stablecoins, not a replacement for fiat.
The firm’s growing footprint in both tokenized assets and digital infrastructure aligns with its broader push to modernize capital markets through blockchain rails, tokenized securities, and programmable money.
Conclusion: GENIUS Act as a Catalyst for U.S. Financial Dominance
BlackRock’s analysis underscores a broader reality taking shape: stablecoins, when regulated effectively, are not threats to sovereign money—but vehicles for extending its reach. The GENIUS Act represents not only a breakthrough in digital asset policy, but also a strategic maneuver in currency diplomacy, ensuring the U.S. dollar remains embedded in the next generation of global finance.
As demand for digitally native, regulated, dollar-backed assets rises, the GENIUS framework—and the market it enables—could redefine the contours of both monetary power and international trade.
@ Newshounds News™
Source: The Crypto Basic
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