Government Relations Insights: July 17, 2025

TOP LINES

The House of Representatives voted 294-134 to pass the Digital Asset Market Clarity Act (CLARITY Act) securing a strong bipartisan support. 78 Democrats voted in support. The bill will now head to the Senate.

The House passed the GENIUS Act, which establishes a regulatory framework for stablecoins, in a 308-122 vote. 102 Democrats voted in support. The bill is expected to be signed by President Trump tomorrow, July 18.

The House also passed an anti-CBDC bill in a 219-210 vote. Two Democrats voted in support. The bill will now head to the Senate.

These votes follow a turbulent few days in the House when a procedural motion was stalled for more than nine hours (reportedly the longest vote in House history) due to select Republican opposition to the motion, with holdouts flipping their votes from 'no' to 'yes' in the late hours of July 16.

What We’re Reading:

From American Banker: Budget bill, SCOTUS give ‘clear path’ to CFPB firings

From Payments Dive: Fintechs blast JPMorgan over data fees

WEEKLY UPDATE

The Federal Deposit Insurance Corporation (FDIC) Board of Directors voted to approve a notice of proposed rulemaking (NPR) to be issued jointly with the Board of Governors of the Federal Reserve System (Federal Reserve) and the Office of the Comptroller of the Currency (OCC), to rescind the Community Reinvestment Act (CRA) final rule issued on October 24, 2023 and replace it with the prior CRA regulations that were originally adopted by the agencies in 1995, with certain technical amendments. Comments on the NPR are due 30 days after the date of publication in the Federal Register.

Federal bank regulatory agencies (Fed, OCC, and FDIC) issued a joint statement to provide clarity on banks’ engagement in crypto-asset-related activities. The statement highlights for banks potential risk-management considerations related to holding crypto-assets on their customers’ behalf, or crypto-asset safekeeping. The joint statement discusses existing risk-management principles that apply to crypto-asset safekeeping and reminds banks that provide or are considering providing safekeeping of such assets that they must do so in a safe and sound manner and in compliance with applicable laws and regulations.

The FDIC issued a Request for Information (RFI) seeking comments on the FDIC’s approach to evaluating the statutory factors applicable to certain filings submitted by industrial banks and industrial loan companies (ILCs). The feedback will help inform how the FDIC evaluates the statutory factors applicable to each filing, considering the unique aspects of industrial bank business plans and the broad range of companies that may seek to establish an industrial bank in the modern marketplace.

Jonathan Gould was sworn in as the 32nd Comptroller of the Currency. President Trump nominated Comptroller Gould on February 11, 2025, and the Senate confirmed him on July 10, 2025. Gould takes over from Rodney E. Hood, who has served as Acting Comptroller of the Currency for the past five months.

Federal Reserve Governor Lisa Cook delivered a speech at the National Bureau of Economic Research’s Summer Institute 2025 on artificial intelligence (AI) and innovation. Governor Cook noted that AI is beginning to affect the way the Fed conducts economic research, with the potential to make some tasks more efficient, harness nontraditional data in new ways, and broaden and deepen economic analysis.

Federal Reserve Governor Michael Barr delivered a speech at the Fed’s Financial Inclusion Conference on expanding financial inclusion. Governor Barr addressed several ways that the public and private sectors are helping to increase financial inclusion. Those efforts include greater access to bank accounts and financial services, faster payments services, responsible small-dollar lending methods, and the use of alternative data to promote credit access.

The Senate confirmed Luke Pettit by a vote of 69-30 to serve as Treasury’s assistant secretary for financial institutions. Assistant Secretary Pettit is a former senior policy adviser to Sen. Bill Hagerty (R-TN), where he played a key role in shaping the GENIUS Act.

During a Ways and Means Oversight Subcommittee hearing, Rep. Max Miller (R-OH) announced plans to release draft text of a comprehensive digital asset tax bill. The bill would establish a de minimis standard that would exempt small crypto transactions from taxes and clarify the tax implications for mining and staking.  

UPCOMING HEARINGS AND EVENTS

July 22, 2025

SEC Small Business Advisory Committee Meeting. Find more information here.

July 22, 2025

The House Financial Services Committee holds a markup of pending legislation. Find more information here.

July 23, 2025

The House Financial Services Committee holds a markup of pending business. Find more information here.