Overviewing Current Crypto Legislative Efforts In The US
The Daily Crypto Update for Institutional Investors
In this AM’s note, we review the ongoing legislative efforts related to crypto in the US
BTC & crypto tax amendments in the ‘Big Beautiful Bill:’ Earlier in June, details emerged on a crypto-focused ‘legislative package’ set to be included in Big Beautiful Bill, i.e. a proposed budget reconciliation bill being voted on in Congress today. The amendments includes highly accommodative measures for the crypto industry:
Taxation on mining and staking rewards would be postponed until the assets are sold, allowing income to be recognized only in the year of disposal;
US-based asset managers would be able to execute digital asset trades on behalf of foreign clients without triggering U.S. income tax obligations for those clients;
Capital gains on digital asset transactions valued under USD 600 would be exempt from taxation, subject to some restrictions.
Stablecoin legislation, AKA the Genius Act: According to reporting from Bloomberg, House Republicans aim to have the Genius Act, ready for President Trump to sign into law by July 7. The Genius Act passed the Senate earlier this month via a 68-30 vote, underscoring significant bipartisan support for the bill. Following the bill’s passage in the Senate, President Trump urged the House to move 'LIGHTNING FAST, and pass a clean GENIUS Act.' Commenting on the bill’s passage, Bessent posted on X that the stablecoin market could grow to USD 3.7T by the end of the decade.
Crypto market framework, AKA the Clarity Act: The second prong of ondoing crypto regulatory legislation in the US is the Clarity Act. In broad terms, the bill aims to have the CFTC govern spot markets, exchanges, brokers, and dealers for ‘digital commodities.’ The SEC would retain authority over securities, including certain stablecoins and investment contract assets. Among other provisions, the Clarity Act provides statutory definitions distinguishing digital commodities, securities, and stablecoins. According to White House’s Crypto and AI Czar David Sacks, the Clarity Act will be introduced ‘before August recess’ and ‘Done by end of September.’
Establishing US ‘Bitcoin Strategic Reserve,’ AKA the Bitcoin Act: According to Senator Cynthia Lummis, who introduced the bill in September 2024, the Bitcoin Act will become the focus of legislative efforts following the full passage of the Clarity and Genius Acts. Lummis believes the Bitcoin Act will be harder to pass in comparison to the two aforementioned bills: ‘It’s going to be a heavier lift than I thought because so many people don’t understand the use case for Bitcoin or the strategic importance of Bitcoin.’
CRYPTO HEADLINES
Responding to a question regarding crypto legislation, President Trump made a number of comments regarding digital assets and BTC. Trump pointed out that ‘Bitcoin and all of that went down much less than’ equities during recent volatility. The President explained that he has noticed ‘more and more you pay in Bitcoin’ and that ‘people are saying it takes a lot of pressure off the dollar and it's a great thing for our country.’ - link - @BitcoinMagazine
Kazakhstan's National Bank announced plans to establish a state-managed crypto reserve, according to a government-linked report translated by Cointelegraph. The reserve is expected to be financed through expropriated digital assets and state-run crypto mining operations. - link - @Cointelegraph
China broker TF International Securities Group Ltd., a unit of Tianfeng Securities (SHA: 601162), applied to Hong Kong’s Securities and Futures Commission for licenses to provide virtual asset services. The planned services include enabling clients to deposit and withdraw cryptocurrencies and issuing tokenized real world assets. Last week the firm revealed that its Hong Kong unit received approval to offer virtual asset trading services. - link - @Bloomberg
Crypto market maker Wintermute received a BTC-backed credit line from Cantor Fitzgerald. Cantor's new BTC Financing Business is expected to provide up to USD 2B in initial financing, though the size of the deal with Wintermute was not disclosed. Wintermute is expanding in the US, citing increased institutional demand for digital assets and noting that the facility will help manage trading risks. - link - @Wintermute
Edelman Financial Engines founder Ric Edelman recommended that investors allocate 10-40% of portfolios to crypto assets, claiming that not owning crypto is riskier than owning it. Edelman asserted that the traditional 60/40 stock-bond model is outdated and that portfolios with BTC have delivered higher returns and lower risk metrics over 15 years. - link - @CNBC
The Bank of Korea suspended its CBDC project, according to a report from Business Times citing an unidentified official. The project had developed to the pilot program stage with banks, but discussions have been paused. President Lee Jae-myung has promised support for a won-based stablecoin market, and a bill has been submitted to enable stablecoin issuance. - link - @CoinDesk
Strategy (NASDAQ: MSTR) bought an additional 4,980 BTC for USD 531.9M. The company now owns 597,325 BTC which it acquired at an average cost of USD 70,982 per coin. - link - @MichaelSaylor
Metaplanet (TYO: 3350) acquired an additional 1,005 BTC, bringing its total holdings to 13,350 BTC. The company also announced plans to issue USD ~208M of 0% bonds for further BTC purchases. Metaplanet is now ranked the fifth largest publicly traded holder of BTC, surpassing Galaxy Digital (NASDAQ: GLXY) and CleanSpark (NASDAQ: CLSK), according to Bitcoin Treasuries. - link - @CoinDesk
TOP ARTICLES
WSJ: A Remote Himalayan Kingdom Bet Big On Bitcoin Mining. So Far, It Has Paid Off.
Bloomberg: Trump-Fueled Bitcoin Mania Leaves Most Of Crypto In The Dust
OPEN-SOURCE RESEARCH / LONG-READ OF THE DAY
Bull Market Just Getting Started, London Crypto Club, June 27, 2025
The London Crypto Club discusses ongoing crypto market dynamics.
CRYPTO MULTIMEDIA
How Texas Got Bipartisan Support To Buy $10 Million Worth Of Bitcoin, Unchained Podcast, June 27, 2025
Lee Bratcher, president of the Texas Blockchain Council, discusses how the state has become the first to establish a publicly funded BTC reserve after Governor Greg Abbott signed Senate Bill 21 into law last week.
CHART OF THE DAY
The ETH/BTC ratio, seen as a proxy for demand for BTC vs the broader universe of digital assets, has failed to mount a sustained recovery over the past year. ETH, priced in BTC, is down ~60% of the past year. As Bloomberg wrote this AM, '[m]ost of the so-called altcoins once touted as competitors to the original cryptoasset are nursing steep declines, with more than $300 billion of market value wiped out so far this year.'
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