Government Relations Insights: July 24, 2025

TOP LINES

Senator Tim Scott (R-SC), Chairman of the Senate Banking Committee, joined by Senators Cynthia Lummis, (R-WY) Bill Hagerty (R-TN), and Bernie Moreno (R-OH), released a discussion draft of digital asset market structure legislation building on the House-passed CLARITY Act. The draft outlines new definitions, tailored Securities and Exchange Commission (SEC) rules, and disclosure requirements for ancillary assets.

The Trump administration released an AI Action Plan, outlining over 90 federal actions to implement President Trump’s executive order on removing barriers to American leadership in artificial intelligence (AI). The plan is built around three pillars, accelerating innovation, building the U.S. AI infrastructure, and leading in global diplomacy and security and includes initiatives such as fast-tracking data center construction, streamlining federal regulations, and promoting AI exports to allies. The plan also urges the SEC and other federal regulators to establish artificial intelligence-focused regulatory sandboxes.

What We’re Reading:

From The Hill: 5 things to know as the GENIUS Act becomes law

WEEKLY UPDATE

Following President Trump’s signing of the GENIUS Act, Treasury Secretary Scott Bessent called it a pivotal step for digital assets and dollar dominance. He said the law gives stable coins a clear regulatory framework, supports global demand for the dollar, and will boost Treasury markets.

At a Federal Reserve Capital Conference, Treasury Secretary Bessent reiterated his call for a fundamental reset of financial regulation, outlining a strategic vision to modernize capital requirements, support innovation, and strengthen the role of community banks. Bessent criticized regulation by reflex and pledged Treasury-led interagency coordination to align financial policy with growth, national security, and main street interests. He urged bank regulators to abandon a dual-capital framework and consider reforms that would simplify requirements and lower burdens on smaller institutions.

The Federal Reserve (Fed), Office of the Comptroller of the Currency (OCC), Treasury, and Federal Deposit Insurance Corporation (FDIC) jointly issued their fourth public notice under the Economic Growth and Regulatory Paperwork Reduction Act, seeking comment on regulations related to Banking Operations, Capital, and the Community Reinvestment Act. The review aims to identify outdated or overly burdensome rules. The public has 90 days to submit feedback, and outreach meetings will be held to gather additional input.

Following Senate confirmation, Bill Briggs was sworn in as Deputy Administrator of the SBA. A former SBA official and small business owner, Briggs returns to the agency with a focus on advancing President Trump’s agenda to revitalize main street and support small business growth.

Led by Chair Scott, the Senate Banking Committee approved five of President Trump’s nominees for key economic and housing roles, including John Jovanovic for EXIM Bank Chair and Ben DeMarzo and Craig Trainor for senior HUD positions. The nominees now await Senate floor votes.

Senator Catherine Cortez Masto (D-NV) introduced the Stop the Scammers Act to restore specific Consumer Financial Protection Bureau (CFPB) funding and authorize the CFPB to reward whistleblowers who report wrongdoing.

UPCOMING HEARINGS AND EVENTS

The Senate Banking Committee subcommittee on Securities, Insurance, and Investment is holding a hearing on July 30th titled “Guardrails and Growth: AI’s Role in Capital and Insurance Markets" Find more information here.

ICYMI

Last week, President Trump signed the GENIUS Act into law, marking a significant step toward establishing the United States as a global leader in digital assets. The law creates the first federal regulatory framework for stablecoins, requiring issuers to maintain 100 percent reserves in U.S. dollars or Treasuries, submit monthly public disclosures, and adhere to strict consumer protection and marketing rules. It also subjects issuers to the Bank Secrecy Act and other compliance requirements, aiming to safeguard national security, reinforce the dollar’s reserve currency status, and attract investment and innovation in the digital asset sector.

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