The past week has seen a flurry of crypto policy and regulatory moves in the U.S., showing both momentum and division in Washington.
The Treasury Department is seeking public feedback on the newly passed GENIUS Act, hailed by SEC Chair Paul Atkins as a “seminal” step, while Wyoming has made history with the launch of the first state-issued stablecoin.
Meanwhile lawmakers remain split on broader market structure legislation: Senator Tim Scott accused Elizabeth Warren of blocking progress, even as Senator Cynthia Lummis set a Thanksgiving deadline for passage.
U.S. Treasury Calls For Comments On GENIUS Act
The U.S. Treasury has taken the next step in implementing the recently passed GENIUS Act, formally requesting public comments on how financial institutions can strengthen protections against illicit finance risks tied to digital assets.
In its August 18 notice, the Treasury Department invited individuals and organizations to share insights on the effectiveness, costs, and risks of tools used to detect unlawful activity in crypto. Officials said the process is designed to help shape future research and regulation, ensuring that methods are not only innovative but also compliant with cybersecurity and privacy standards.
“This request for comment offers the opportunity for interested individuals and organizations to provide feedback on innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets,” the department stated.
Investor and hedge fund manager Scott Bessent praised the law as an “essential” policy for modernizing U.S. financial oversight. With regulators seeking more public-private collaboration, industry participants are now faced with an opportunity to influence how Washington balances innovation with enforcement.
Wyoming Launches First State-Issued Stablecoin
In a landmark moment for state-level crypto adoption, Wyoming has officially launched the Frontier Stable Token (FRNT), the first state-issued stablecoin in the U.S.
The token, rolled out on mainnet by the Wyoming Stable Token Commission, is pegged to the U.S. dollar and backed by short-term Treasury assets.
Governor Mark Gordon described the launch as a natural extension of Wyoming’s leadership in digital asset regulation. Since 2016, the state has passed more than 45 crypto-related laws, building a reputation as one of the most blockchain-friendly jurisdictions in the country.
The FRNT stablecoin shows how U.S. states may carve out their own role in shaping crypto adoption, even as federal lawmakers continue to wrangle over market structure.
Elizabeth Warren Stands In Way of Market Structure Bill, Sen. Tim Scott Says
Senate Banking Committee Chairman Tim Scott (R-SC) used the SALT Wyoming Blockchain Symposium to double down on his support for the Digital Asset Market Clarity (CLARITY) Act. Scott predicted that as many as 12 of the 18 Democrats on the committee could be open to supporting the bill, suggesting momentum is building for bipartisan progress.
Still, he acknowledged that opposition remains, particularly from Senator Elizabeth Warren (D-MA), who he said is “standing in the way” of Democratic consensus.
“The forces against it, let me just say clearly, like Senator Elizabeth Warren, standing in the way of Democrats wanting to participate, it is a real force to overcome,” Scott remarked.
The CLARITY Act aims to define which digital assets fall under securities or commodities laws, providing long-awaited rules for exchanges, custodians, and token issuers. But with Warren maintaining a tough stance on crypto, the political path forward remains complicated.
Chair Paul Atkins Praises The GENIUS Act As A ‘Seminal’ Step For Crypto
SEC Chair Paul Atkins also addressed the symposium, hailing the GENIUS Act as a “seminal” moment in U.S. crypto regulation. Atkins highlighted the importance of moving beyond fragmented case law and inconsistent court rulings toward a more unified framework.
“You’ve needed it so badly, you’ve paid enough in legal fees and whatnot,” he said, acknowledging industry frustration. He added that the SEC is preparing new approaches to help streamline oversight, though he admitted “a lot of spring cleaning” still needs to be done within the agency.
Atkins’ remarks show a shift in tone at the SEC, a potential pivot away from years of enforcement-first strategies toward more constructive engagement with Congress and industry.
Senator Lummis Eyes Thanksgiving Deadline For Crypto Market Structure Bill
Senator Cynthia Lummis (R-WY), one of the most vocal crypto advocates in Congress, said she expects market structure legislation to reach President Biden’s desk before the end of the year.
Speaking at the Wyoming symposium, Lummis stressed that her goal is to see a finished bill by Thanksgiving. She noted that the proposal is slated to move through the Senate Banking Committee in September, before heading to the Agriculture Committee in October.
“We will have the market structure to the president’s desk before the end of the year,” she said. “I hope it’s before Thanksgiving. That’s our goal.”
Her remarks reflect growing urgency among lawmakers to address crypto oversight in a more comprehensive way, particularly as state-level initiatives like Wyoming’s stablecoin gain traction and global rivals press ahead with digital asset frameworks.
Outlook
The week’s developments highlight the stark divide in Washington over how to regulate digital assets. While the Treasury and SEC seek to align frameworks through the GENIUS Act, lawmakers remain split over market structure reforms. At the same time, Wyoming’s stablecoin launch demonstrates how state-level innovation can outpace federal action.
With Senators Scott and Lummis pushing for near-term progress — and Warren still standing firm in opposition — the remainder of 2025 will be pivotal for U.S. crypto policy.
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