Global Digital Assets Digest: March 2025

Welcome to this month's Global Digital Assets Digest. In the UK, the Government has given further detail in relation to the testing DLT in the UK gilt market. At the EU level, official translations of a number of guidelines under MiCA (including on reverse solicitation) have been published. In France, there are a number of developments in relation to MiCA. In the US, the steamrolling of the regulatory framework continues.

1. MiCA: Guidelines on the conditions and criteria for the qualification of crypto-assets as financial instruments

2. MICA: European Commission publishes Delegated Regulations

3. MICA: EBA Opinion on the European Commission’s amendments to RTS on offer to the public/admission to trading of ARTs

4. MICA: ESMA publishes official translations of guidelines on security access, reverse solicitation and transfer services

5. Euroclear: Phase One of project on increasing mobility of collateral assets

6. FSB: Letter to G20 Finance Ministers and Central Bank Governors

7. FSB: Thematic Peer Review on FSB Global Regulatory Framework for Cryptoasset Activities - Summary Terms of Reference

8. Eurosystem: expansion of initiative to settle DLT-based transactions

9. MICA: Regulations on notification of intention to provide cryptoasset published in the Official Journal

10. ESMA: Consultation Paper on the Guidelines for the criteria on the assessment of knowledge and competence under MiCA

11. MiCA: Commission Delegated Regulations published in the Official Journal

12. BIS: Speech on digital payments by Sanjay Malhotra, Governor of the Reserve Bank of India

13. HM Treasury: Additional Information and Engagement on the Digital Gilt Instrument (DIGIT)

14. BoE: Speech by Sasha Mills: Innovation in UK Financial Markets - shortening the settlement cycle

15. FCA/PSR: Feedback Statement: Big Tech and Digital Wallets (FS25/1)

16. BaFin-Circular: Clarification of obligations regarding investments into cryptoassets

17. BaFin supplements Anti-Money Laundering Act interpretation and application guidance (AuAs) to include enhanced due diligence requirements for transfers of cryptoassets

18. AMF: Implementation of MiCA Notification Framework

19. Implementation of French transitional measures for MiCA under a new decree

20. AMF: Updated RCSI Report Template

21. SFC sets out new ASPIRe roadmap on virtual asset

22. Senate Banking, Housing and Urban Affairs Committee: Digital assets legislation advanced

23. House Financial Services Committee: Hearing on the federal framework for payment stablecoins

24. US Senate: Resolution overturning crypto rule passed

25. OCC Classification on engaging in cryptocurrency activities

26. White House: Executive Order establishing a Bitcoin Strategic reserve

27. SEC Crypto Task Force to Host Roundtable on Security Status

28. Federal Reserve: Speech "Promoting Responsible Innovation through the Novel Activities Program"

29. SEC: Staff Statement on meme coins

30. OFSI: Capital and Liquidity Treatment of Cryptoasset Exposures

31. CFTC announces crypto CEO forum to launch digital asset markets pilot

32. House Committee on Financial Services: Letter to FDIC

33. SEC: Cyber and Emerging Technologies Unit (CETU)

34. US Trade Associations: Letter on efforts to maintain US leadership in digital assets

35. DFSA: Recognition of stablecoins

Updates and Guidance: International Bodies

1. MiCA: Guidelines on the conditions and criteria for the qualification of crypto-assets as financial instruments

On 19 March 2025, ESMA published the official translations of its guidelines setting out the conditions and criteria for determining whether a cryptoasset should be deemed a financial instrument (therefore ensuring the consistent application of the provisions in Article 2(4)(a) of MiCA). The guidelines clarify the delineation between MiCA and MiFID, as well as provide clarifications on certain features of utility tokens, NFTs and hybrid tokens.

ESMA published the final report in respect of the guidelines in December 2024.

The guidelines apply from 18 May 2025.

2. MiCA: European Commission publishes Delegated Regulations

On 27 February 2025, the European Commission published a number of Delegated Regulations under MiCA.

• Commission Delegated Regulation (EU) on RTS on records to be kept by CASPs of all cryptoasset services, activities, orders and transactions undertaken. The records check compliance of obligations under MICA, including those concerning clients.
• Commission Delegated Regulation (EU) on RTS concerning the requirements for policies and procedures on conflicts of interest for CASPs, and the details and methodology for the content of disclosures on conflicts of interest. Areas covered by the RTS include: the types of conflicts potentially detrimental to clients; the types of conflicts potentially detrimental to CASPs; and additional requirements concerning types of conflicts of interest arising from providing placing services.

3. MICA: EBA Opinion on the European Commission’s amendments to RTS on offer to the public/admission to trading of ARTs

On 27 February 2025, the EBA published an Opinion in response to the European Commission's proposed changes to its draft RTS on the information to be provided to competent authorities when authorising the offer to the public and admission to trading of ARTs under MiCA. In May 2024, the EBA submitted draft RTS to the European Commission. The European Commission later sent a letter to the EBA confirming it would endorse the RTS with amendments and submitted an amended version of the RTS.

The EBA indicates that many of the proposed substantive changes are justified, and also supports the non-substantive changes proposed by the European Commission. It calls for amendments to article 18(5)(a)(b) of MiCA, so that the suitability of the management body of an issuer of ARTs can be comprehensively assessed (to identify risks).

4. MICA: ESMA publishes official translations of guidelines on security access, reverse solicitation and transfer services

On 26 February 2025, ESMA published the official translations of guidelines.

• Guidelines on the EU standards for the maintenance of systems and security access protocols for offerors seeking admission to trading of cryptoassets other than ARTs. In contrast to CASPs and issuers of ART or EMT, offerors and persons seeking admission to trading are not subject to the comprehensive ICT security regime found under DORA. The guidelines, therefore, offer principles for managing ICT risks. The final report in respect of the guidelines was published in December 2024.
• Guidelines on situations in which a third-country firm is deemed to solicit EU clients. The guidelines are intended to provide clarity when the offer/provision of cryptoasset services to EU clients will be viewed as initiated at the own exclusive initiative of the relevant clients. The final report in respect of the guidelines was published in December 2024.
• Guidelines on transfer services for cryptoassets under MiCA. These cover the requirements for CASPs providing transfer services for cryptoassets on behalf of clients, including the rights of clients. ESMA published its final report in respect of the guidelines in December 2024.

The guidelines apply from 27 April 2025.

5. Euroclear: Phase One of project on increasing mobility of collateral assets

On 24 February 2025, Euroclear announced the launch of phase one of a "tokenised collateral mobility initiative" through the Canton Global Collateral Network.

Phase one will involve industry participants and outline a strategic roadmap, addressing:

• how tokenised collateral mobility could enhance efficiency across global markets; and
• how crypto derivatives collateral and margin management services could help achieve 24/7 trading and settlement.

6. FSB: Letter to G20 Finance Ministers and Central Bank Governors

On 21 February 2025, the FSB issued a letter from its chair, Klaas Knot, to the G20 Finance Ministers and Central Bank Governors. The letter refers to changing financial conditions and geopolitical uncertainty, noting that many key reforms are close to completion. The letter outlines key issues the FSB is working on in 2025.

Key areas:

• Cross border payments. Progress has been made on completing the priority actions under the G20 Roadmap to Enhance Cross-border payments but significant work (up to and beyond 2027) needed to address structural issues. National authorities and other need to take steps at local level. FSB will be looking at regional developments, most likely in places most affected by frictions.
• Digital innovation. The FSB will submit a G20 thematic peer review on the implementation of the FSB's cryptoasset recommendations.

7. FSB: Thematic Peer Review on FSB Global Regulatory Framework for Cryptoasset Activities - Summary Terms of Reference

On 21 February 2025, the FSB published its summary terms of reference concerning its thematic peer review on the implementation of its global regulatory framework for cryptoasset activities. The framework consists of recommendations on the regulation, supervision and oversight of cryptoasset activities and markets; and global stablecoin arrangements.

Areas feedback is sought include:

• the impact of jurisdictional regulatory framework on how cryptoasset issuers and service providers (including stablecoin arrangements) decide on location/structure of business;
• experiences and challenges faced by cryptoasset market participants in meeting the relevant requirements;
• variation (if any) in financial stability vulnerabilities of cryptoasset activities, including stablecoins, across jurisdictions (e.g. based on the scale and materiality of the adoption of services); and
• specific market practices and/or trends in certain geographies and/or segments that may pose a threat to financial stability.

The deadline for feedback is 28 March 2025. The FSB plans to publish its peer review report in October 2025.

8. Eurosystem: expansion of initiative to settle DLT-based transactions

On 20 February 2025, the ECB announced that it was expanding the initiative to settle transactions on DLT in central bank money. The initiative will build on existing work on wholesale central bank money settlement carried out in 2024 (see Global Digital Assets Digest December 2024 edition). The ECB plans to follow a two pronged approach: developing a platform to allow for settlements in central bank money via a interoperability link with TARGET services; and a more integrated, long-term solution for settling DLT-based transactions in central bank money.

AFME issued a statement welcoming the initiative and calling for the ECB to review its collateral eligibility framework to enable DLT-based securities to serve as collateral in ECB credit operations.

ICMA's statement in response to the initiative notes the importance of wholesale CBDC for developing DLT-based securities, citing benefits such as: "next level automation through programmability"; and increasing the efficiency of securities settlement and post-trade processing.

9. MICA: Regulations on notification of intention to provide cryptoasset published in the Official Journal

On 20 February 2025, the following Delegated and Implementing Regulations were published in the Official Journal of the European Union:

• Commission Delegated Regulation (EU) 2025/303 containing RTS on information to be included by certain financial entities in the notification of their intention to provide cryptoasset services.
• Commission Implementing Regulation (EU) 2025/304 containing ITS on standard forms, templates and procedures for the notification by certain financial entities of their intention to provide cryptoasset services.

Both came into force on 12 March 2025.

10. ESMA: Consultation Paper on the Guidelines for the criteria on the assessment of knowledge and competence under MiCA

On 17 February 2025, ESMA published a consultation paper on guidelines for the criteria on the assessment of knowledge and competence of CASPs giving information or advice in relation to cryptoassets or cryptoasset services.

Article 81(7) of MiCA sets out requirements in relation to the knowledge and competence of CASPs. ESMA is of the view that certain aspects of cryptoassets sector make it necessary to introduce safeguards in relation to staff at CASPs.

ESMA is seeking views on the minimum requirements in relation to knowledge and competence of staff; and organisational requirements of CASPs for the assessment, maintenance and updating of knowledge and competence of staff.

The deadline for comments is 22 April 2025. ESMA plans to publish a final report in Q3 2025.

11. MiCA: Commission Delegated Regulations published in the Official Journal

On 14 March 2025, two Delegated Regulations supplementing MiCA were published in the Official Journal.

• Commission Delegated Regulation (EU) 2025/416 on RTS specifying the content and format of order book records for cryptoasset service providers operating a trading platform for cryptoassets. This was adopted by the European Commission in December 2024.
• Commission Delegated Regulation (EU) 2025/417 on RTS specifying the manner in which cryptoasset service providers operating a trading platform for cryptoassets are to present transparency data. This was adopted by the European Commission in November 2024.

12. BIS: Speech on digital payments by Sanjay Malhotra, Governor of the Reserve Bank of India

On 12 March 2025, BIS published a speech by Sanjay Malhotra, Governor of the Reserve Bank of India, at the inauguration of Digital Payments Awareness Week 2025, held at the Reserve Bank of India, Mumbai. The speech provided an overview of the state of play of payments in India.

Key points

• The Reserve Bank has supported various digital payment products.
• As a result of the successful implementation of UPI, India enjoys a leadership position in real time payments by volume.
• As the largest receiver in personal remittances globally, there is need to resolve challenges of high cost, slow speed and insufficient access and transparency in cross-border payments.
• The Reserve Bank will continue to expand the reach of UPI bilaterally, by linking UPI with Fast Payment Systems of other countries. It will also look into linking payment systems other than UPI for promoting efficient cross-border payments.
• Ensuring safety and security of payment systems is an ongoing project, with recent initiatives (e.g. the Framework on Alternative Authentication Mechanisms for Digital Payment Transactions) evidence of this.

Updates and Guidance: UK

13. HM Treasury: Additional Information and Engagement on the Digital Gilt Instrument (DIGIT)

On 18 March 2025, HM Treasury and UK Debt Management Office (DMO published additional information and engagement questions on DIGIT and announced a Preliminary Market Engagement Exercise in relation to the pilot Digital Gilt Instrument (DIGIT).

Details of DIGIT were first announced in the Mansion House speech delivered by Rachel Reeves, Chancellor of the Exchequer, in November 2024 (see our briefing here).

HM Treasury and the DMO are looking to understand the available technology for an issuance, and the best design for DIGIT in order to encourage wider development and adoption of DLT infrastructure across UK capital markets.

Certain design decisions have already been adopted in relation to DIGIT, including:

• DIGIT will be an entirely new, digitally native, UK Government debt instrument;
• DIGIT will be issued on a platform within the Digital Securities Sandbox ("unbacked cryptocurrencies" or stablecoins will not be available for the purposes of the payment leg of any DIGIT transaction);
• DIGIT will be short dated; and
• DIGIT will be separate from the Government’s debt issuance programme.

Areas views are sought include the following: types of primary investors for DIGIT; the impact of demand on the design of DIGIT; and the importance of interoperability (e.g. among different DLT platforms as well as between DLT platforms with existing infrastructure).

The closing date for comments is 13 April 2025. A tender notice is expected in late Spring 2025.

14. BoE: Speech by Sasha Mills: Innovation in UK Financial Markets - shortening the settlement cycle

On 20 February 2025, the BoE published a speech by Sasha Mills, Executive Director of Financial and Market Structure, on post trade innovation and encouraging efficiencies in the post-trade settlement process for shares and bonds. This follows the publication of a roadmap on shortening the UK securities settlement cycle to T+1. The speech argues that the move to T+1 settlement should encourage investment in automation and standardisation and states that FMIs will be preparing their T+1 project plans, as recommended by the AST report. Ms Mills urges FMIs to read the implementation plan; produce their own firm-specific project plans; and implement and test changes to systems and procedures in line with the timetable outlined in the report.

The FCA has published a webpage in respect of shortening the settlement cycle in the UK.

15. FCA/PSR: Feedback Statement: Big Tech and Digital Wallets (FS25/1)

On 19 February 2025, the FCA published its feedback statement (FS25/1) on its call for information on digital wallets. Digital wallets exists in the wider context of activity by UK regulators concerning:

• recent UK National Payments Vision;
• the FCA and PSR’s ongoing work developing Open Banking and The Data (Use and Access) Bill;
• digital identity work by the UK Government; and
• work on the digital pound.

The statement concludes that most stakeholders consider that the current regulatory framework is ineffective, including the scope of FCA's regulatory perimeter (especially in areas like operational resilience and consumer protection).

Updates and Guidance: Europe

16. BaFin-Circular: Clarification of obligations regarding investments into cryptoassets

On 25 February 2025, BaFin issued a draft circular (available only in German) seeking consultation on the obligations of depositaries and management companies for investment funds investing into crypto assets. These obligations include organisational measures, such as ensuring that the managing director has the necessary expertise, and providing suitable IT systems, as well as control and audit duties (particularly the control of the market fairness of transactions conducted for the investment fund).

The circular is intended to provide clear regulatory guidelines to ensure the safe and transparent handling of the specific risks of crypto investments.

As a result of the enactment of the Future Financing Act (Zukunftsfinanzierungsgesetz),other domestic open-end AIFs and closed-end AIFs can now directly invest into cryptoassets (in addition to special AIFs without fixed investment conditions and special AIFs with fixed investment conditions). Investment funds are permitted to directly acquire cryptoassets, provided they meet the requirements of Section 192 in conjunction with Sections 193 to 198 of the German Capital Investment Code (KAGB).

Investment funds that invest directly into cryptoassets or crypto securities present new technical and regulatory challenges for both depositaries and the management company. This is particularly true in the face of the significant risks of loss, which could potentially arise from cyberattacks.

17. BaFin supplements Anti-Money Laundering Act interpretation and application guidance (AuAs) to include enhanced due diligence requirements for transfers of cryptoassets

On 6 March 2025, BaFin published further details (available only in German) concerning its interpretation and application guidance to the German Anti-Money Laundering Act (GwG)CASPs and certain issuers of asset-referenced tokens are now also listed among those subject to GwG obligations under BaFin's supervision. Additionally, information on enhanced due diligence obligations for crypto-assets transfers from or to self-hosted addresses has been added (cf. Section 15a GwG). This includes the identification and assessment of risks, as well as the implementation of appropriate risk mitigation measures, including specific measures for the DLT. Control over self-hosted addresses must be demonstrated through suitable methods, such as a reference transfer. Submission of a screenshot of the wallet is, however, not permitted.

18. AMF: Implementation of MiCA Notification Framework

On 6 March 2025, the Autorité des Marchés Financiers (AMF) published Instruction AMF DOC-2025-01 to implement the notification framework for public offerings and trading admissions of crypto-assets (excluding asset-referenced tokens and e-money tokens), in accordance with MiCA.

The instruction outlines requirements for notifying the AMF of (i) the white paper, commercial communications, and any modifications to these documents, (ii) exemptions related to limited networks, and (iii) delayed disclosure of privileged information.

This instruction applies where the AMF is the "competent authority" and where France is the "home Member State" under MiCA.

19. Implementation of French transitional measures for MiCA under a new decree

On 21 February 2025, a decree on crypto-asset markets was adopted in application of Ordinance No. 2024-936 of 15 October 2024, adapting French law to MiCA. The decree introduces transitional measures to facilitate the shift from the national framework for Digital Asset Service Providers (DASPs) to the MiCA regime for CASPs, who will benefit from an AMF-issued licence and a European passport.

To support this transition, the decree adapts the simplified authorisation procedure available for DASPs applying for a CASP licence between 30 December 2024 and 1 July 2026, as permitted under MiCA. Additionally, it provides for the repeal of various regulatory provisions relating to DASPs as of 1 July 2026.

The decree also sets the fixed fee for notifying a white paper on cryptoassets (other than asset-referenced tokens or e-money tokens) at €3,000, payable within six months of notification to the AMF. Furthermore, CASPs licensed in France as of 30 December 2024 must pay an annual contribution of €10,000, with additional fees applicable to those providing custody services based on the value of assets under custody.

The decree entered into force the day after its publication.

20. AMF: Updated RCSI Report Template

The indicative template for the RCSI report has been updated on the AMF website to assist Compliance and Internal Control Officers (RCSI) in preparing their responses to the annual report to the AMF. The latest update introduces a new section on cryptoasset services, including additional questions on this topic.

Updates and Guidance: APAC

21. SFC sets out new ASPIRe roadmap on virtual asset

On 19 February 2025, the SFC announced a new regulatory roadmap, which sets out 12 major initiatives to enhance the security, innovation, and growth of Hong Kong’s virtual asset market under a five-pillar "ASPIRe" roadmap, which stands for Access, Safeguards, Products, Infrastructure and Relationships. The initiatives will streamline access for global liquidity, enable adaptive compliance and product frameworks focusing on security, and drive infrastructure upgrades for traditional finance to tap into blockchain efficiency.

Updates and Guidance: Australia

Updates and Guidance: North America

22. Senate Banking, Housing and Urban Affairs Committee: Digital assets legislation advanced

On 13 March 2025, the Senate Banking, Housing and Urban Affairs Committee announced that it had advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act). The bipartisan legislation sets out a regulatory framework for payment stablecoins.

The Financial Integrity and Regulation Management Act, which removes references to reputational risk as a measure for determining the safety and soundness of regulated financial institutions, also passed.

23. House Financial Services Committee: Hearing on the federal framework for payment stablecoins

On 11 March 2025, the House Financial Services Committee, led by Chairman French Hill, held a hearing on a federal framework for payment stablecoins, including examining the updated STABLE Act bill text, and the consequences of a US CBDC.

24. US Senate: Resolution overturning crypto rule passed

In March 2025, the US senate passed a resolution prepared by Senator Ted Cruz to nullify the rule, submitted by the Internal Revenue Service, relating to ‘‘Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales". The rule required DeFI brokers to report certain information on digital asset sales to the IRS.

The resolution was co-sponsored by senators Cynthia Lummis, Thom Tillis, Tim Sheehy, and Ted Budd. The House of Representatives later approved the joint resolution.

25. OCC Classification on engaging in cryptocurrency activities

On 7 March 2025, the OCC published an Interpretive Letter 1183, rescinding OCC Interpretive Letter 1179 (IL 1179). It also withdrew two interagency statements. The letter also reaffirms that cryptoasset custody, DLT, and stablecoin activities discussed in prior letters are permissible.

The OCC had issued three interpretive letters in 2020 and early 2021 on whether banks may engage in crypto-asset activities:

• OCC Interpretive Letter 1170 (July 2020) on whether banks may provide cryptoasset custody services;
• OCC Interpretive Letter 1172 (September 2020) on whether banks may hold dollar deposits serving as reserves backing stablecoins in certain circumstances; and
• OCC Interpretive Letter 1174 (January 2021) on banks verifying customer payments using DLT and engaging in certain stablecoin activities to facilitate payment transactions on a distributed ledger.

26. White House: Executive Order establishing a Bitcoin Strategic reserve

On 6 March 2025, President Donald Trump signed an Executive Order establishing a Strategic Bitcoin Reserve and a U.S Asset Stockpile. This follows an Executive Order in January 2025 aimed at promoting US leadership in digital assets (see Global Digital Assets Digest February 2025 edition). The President also appointed a "crypto czar" and held a crypto summit at the White House in the same week.

Key aspects

• The Strategic Bitcoin Reserve is to be capitalised with Bitcoin forfeited via criminal/civil asset forfeiture proceedings. Bitcoin in the reserve will not be sold.
• Secretaries of Treasury and Commerce are to develop budget neutral strategies for additional Bitcoin.
• The US Digital Asset Stockpile will consist of digital assets other than Bitcoin forfeited in criminal/civil asset forfeiture proceedings.
• Agencies are to provide accounting of their digital asset holdings to the Secretary of the Treasury and the President's Working Group on Digital Asset Markets.

27. SEC Crypto Task Force to Host Roundtable on Security Status

On 3 March 2025, the SEC announced that its Crypto Taskforce would be holding roundtables on regulation of cryptoassets. The “Spring Sprint Toward Crypto Clarity” series will begin on 21 March 2025, starting with a roundtable “How We Got Here and How We Get Out – Defining Security Status.”

28. Federal Reserve: Speech "Promoting Responsible Innovation through the Novel Activities Program"

On 27 February 2025, the Federal Reserve published a speech by Michael S Barr, Vice Chair for Supervision, titled "Promoting Responsible Innovation through the Novel Activities Program". The speech reiterates the benefits that innovation in finance can bring and the responsibilities of banks. The speech refers to the Federal Reserve's Novel Activities Supervision Program, Barr focusing on two aspects of the program: clarity; and collaboration.

Key points

• Early open dialogue allows supervisors to give feedback to bank on risk management frameworks early. The Federal Reserve will issue guidance as novel activities become more developed.
• The Federal Reserve does not prohibit/discourage banking organisations from providing banking services to customers of any specific class or type, where permitted by law or regulation; banks supervised by the Federal Reserve provide services to the digital assets sector.
• The Federal Reserve monitors banks from a safety and soundness and financial stability perspective and not to dictate the types of customers to serve.
• Interagency coordination and knowledge-sharing with federal and state regulators and the private sector helps to encourage discussion, engagement, and knowledge-building.

29. SEC: Staff Statement on meme coins

On 27 February 2025, the SEC's Division of Corporate Finance issued a statement in respect of meme coins. The statement considers whether transactions in these coins involve the offer and sale of securities, and also whether participating in the offer and sale of these coins requires registration under the Securities Act 1933. The statement discuses features of the Howey test for determining whether something can be deemed an investment contract, stressing that the Division will always consider the economic realities of a transaction rather than how it is labelled.

The statement notes that fraudulent conduct concerning the offer and sale of meme coins may result in enforcement action.

The SEC also published a statement by Commissioner Caroline Crenshaw, which calls the Division's stance in relation to meme coins and the application of the Howey test as "incomplete" and "unsupported". The statement argues that the Division's approach allows for decades of case law to be bypassed, concluding that the agency's stance offers little in the way of predictability or clarity.

30. OFSI: Capital and Liquidity Treatment of Cryptoasset Exposures

On 20 February 2025, Canada's Office of the Superintendent of Financial Institution (OFSI) published a guideline on the Capital and Liquidity Treatment of Crypto-asset Exposures. This includes information on the regulatory capital and liquidity treatment of exposures to cryptoassets for banks (including federal credit unions), bank holding companies, federally regulated trust companies, and federally regulated loan companies.

31. CFTC announces crypto CEO forum to launch digital asset markets pilot

On 7 February 2025, the CFTC announced that It would be holding a CEO forum to discuss the launch of the CFTC's digital asset markets pilot program for tokenised non-cash collateral such as stablecoins. In December 2024, the CFTC's Global Market Advisory Committee issued a recommendation by its Digital Asset Markets Subcommittee on expanding the use of non-cash collateral via DLT.

32. House Committee on Financial Services: Letter to FDIC

The House Committee on Financial Services announced that Chairman French Hill and a number of other individuals had sent a letter to the FDIC on better understanding the FDIC's plan for the regulatory and supervisory work concerning digital assets activities of regulated financial institutions. The letter also discusses the access of digital asset service firms to banking services. The letter follows a hearing held by the Subcommittee on Oversight & Investigations of the House Committee on Financial Services on the access of digital asset service firms to banking services.

The letter sets out recommendations for the FDIC to clarify the regulation in relation to digital assets, including requiring all banking supervisory guidance to be written and publicly disclosed (with limited redactions), ending informal “verbal-only” directives; subjecting all supervisory guidance to an external periodic review; and ensuring all supervisory guidance applies equally to all institutions.

33. ICYMI: Chairman Hill, Rep. Steil Publish Op-Ed on the Importance of Congressional Action on Digital Assets

Bryan Steil, Chairman of the Financial Technology, and Artificial Intelligence Subcommittee has written an opinion piece in Coindesk on the need for timely digital asset legislation. The publication refers to a "Golden Age" for digital assets in the US, noting the recently established Bicameral Working Group for Digital Assets, with Senate Banking Committee Chairman, Tim Scott, and a number of individuals (including White House Crypto Czar David Sacks). The publication cites statistics relating to holdings of Bitcoin in the US, arguing that the current administration is to have a more accommodative approach to digital assets and to DLT. Responding to concerns raised in relation to digital assets sector, the piece argues that effective legislation and regulatory engagement can ensure adequate consumer protection.

Steil's piece also refers to the recent discussion draft on establishing a framework for the issuance and operation of dollar-denominated payment stablecoins in the United States, as well as the Financial Innovation and Technology for the 21st Century Act.

34. SEC: Cyber and Emerging Technologies Unit (CETU)

On 20 February 2025, the SEC announced the creation of the Cyber and Emerging Technologies Unit (CETU). The CETU, led by Laura D’Allaird, replaces the Crypto Assets and Cyber Unit. It will focus on cyber-related misconduct and protecting retail investors, tackling (among other things) fraud involving blockchain technology and cryptoassets.

35. US Trade Associations: Letter on efforts to maintain US leadership in digital assets

On 20 February 2025, it was announced that a number of financial services trade associations (including the Securities Industry and Financial Markets Association and American Bankers Association) had written to the President's Working Group on Digital Asset Markets to express support for the workplan outlined in the President's Executive Order on Digital Assets (see Digital Assets Digest February 2025 edition). The letter calls for the recission/substantial revision of a number of policy statements and guidance documents issued by federal banking agencies that restricted bank participation in the digital assets sector.

The letter also calls for the Working Group to include the prudential banking agencies in its work in order to secure leadership in the digital assets sphere.

Documents to be revised/rescinded

• Federal Reserve. SR 22-6 "Engagement in cryptoasset related activities by Federal Reserve Supervised Banks"; Policy Statement on Section 9(13) of the Federal Reserve Act; SR 23-7 "Creation of a Novel Activities Supervision Program".
• FDIC. FIL-16-2022, “Notification of Engaging in Crypto-Related Activities”.
• OCC. Interpretive Letter #1179, “Chief Counsel’s Interpretation Clarifying: (1) Authority of a Bank to Engage in Certain Cryptocurrency Activities; and (2) Authority of the OCC to Charter a National Trust Bank”.

Updates and Guidance: Middle East

36. DFSA: Recognition of stablecoins

On 17 February 2025, it was announced that the Dubai Financial Services Authority has recognised stablecoin (USDC and EURC) within the Dubai International Financial Centre (DIFC).

Press/Articles

No new update.

Contributors: Francesco Assi, Senior Associate; Tobias Bauerfeind, Senior Associate; Anna He, Associate; Anson Chan, Junior Associate; Bisola Williams, Expertise Legal Manager; Meredith Yip, Trainee; Joeil Benkada Lorimier, Trainee; Laura Wagner, Trainee