Highlights of the first digital asset conference of the US “Crypto Tsar”: Promoting market structure and stablecoin bills, and evaluating Bitcoin reserves

Here is the English translation of the text, with the specified terms preserved and not translated: The "Crypto Czar" of the United States Held the First Digital Asset Release Conference: Pushing for Market Structure and Stablecoin Legislation, Evaluating Bitcoin Reserves Author: Weilin, PANews Cover: Photo by Drew Dizzy Graham on Unsplash In the early hours of February 5th, White House Artificial Intelligence and Cryptocurrency Czar David Sacks held the first news conference on digital assets with several U.S. congressional lawmakers on Capitol Hill, detailing the latest plans of the White House and Congress to develop digital assets in the United States. Sacks stated at the meeting that he looks forward to working with congressional lawmakers to "create a golden age of digital assets." He revealed that they are evaluating a Bitcoin reserve proposal, although it is still in the early stages. On the Securities and Exchange Commission (SEC) side, there are reports that the commission is downsizing the team responsible for cryptocurrency enforcement actions and reassigning some lawyers, a move that signals a shift in the SEC's approach to cryptocurrency regulation. Meanwhile, the SEC has launched a website for its Crypto Assets and Cyber Unit, and the unit's head, Hester Peirce, has outlined ten priority tasks, focusing on the classification and regulation of crypto assets.

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David Sacks: Expects the "Golden Age of Digital Assets", Evaluating Bitcoin Reserve Proposal

Sacks emphasized at the event that he looks forward to working with Congress to jointly "create the golden age of digital assets". The event also invited Senator Tim Scott, Chairman of the Senate Banking Committee, Senator John Boozman, Chairman of the Senate Agriculture Committee, Representative French Hill, Chairman of the House Financial Services Committee, and Representative G.T. Thompson, Chairman of the House Agriculture Committee.

These committees are forming a bicameral committee to lead cryptocurrency regulatory work, planning to build on the market structure legislation "FIT21" passed in the House Financial Services Committee last year, and combine it with the new stablecoin bill introduced by Senator Bill Hagerty on February 4, to drive new legislation. Senate Banking Committee Chairman Tim Scott said he plans to "push as hard as possible" to get these bills passed in the Senate within the first 100 days.

Sacks also confirmed that the Presidential Digital Assets Working Group established under the Trump executive order will first examine the feasibility of Bitcoin reserves, but he pointed out that the initiative is still in the early stages as some members of the working group have not yet been confirmed.

Senator Bill Hagerty Introduces New Stablecoin Bill GENIUS

As mentioned above, on February 4, U.S. Senator Bill Hagerty introduced a bill aimed at creating a regulatory framework for stablecoins, bringing tokens like Tether and USDC under the Federal Reserve's regulatory rules.

The stablecoin bill aims to create "a safe and growth-friendly regulatory framework to unleash innovation" and advance President Trump's commitment to making the U.S. the "global capital of cryptocurrency".

Hagerty's "Guidance and Ensuring National Stability of Stablecoins (GENIUS) Act" is supported by Senators Tim Scott, Kirsten Gillibrand, and Cynthia Lummis.

Hagerty added on X platform that he looks forward to working with Representative French Hill and the House Financial Services Committee to "get it (the bill) to the President's desk and signed into law".

Hagerty's stablecoin bill builds on the discussion draft he submitted for former Representative Patrick McHenry's "Clarity for Payment Stablecoins Act" last October.

The key elements of the GENIUS Act include:

• Defining payment stablecoins as a digital asset used for payments or settlement that is pegged to a fixed currency value;
• Establishing a clear process for institutions seeking to issue stablecoins to obtain a license;
• Imposing reserve requirements on stablecoin issuers and setting lightweight, customized regulatory standards;
• Applying the Federal Reserve's regulatory framework for depository institutions and the OCC's framework for non-bank issuers to issuers of stablecoins exceeding $10 billion;
• Allowing state-level regulation of issuers with a market cap below $10 billion, with an exemption process for those exceeding the threshold to continue state-level oversight;
• Establishing a clear regulatory, examination, and enforcement mechanism with defined limitations.

According to CoinGecko data, Tether (USDT) and Circle's USD Coin (USDC) are the only two stablecoins with a market cap exceeding $10 billion currently.

Stablecoin issuers will also be required to provide monthly audited reserve reports, with potential criminal penalties for submitting false information.

SEC Launches Crypto-Specific Task Force Website, Adjusts Regulatory Strategy

On February 5, according to the New York Times, five people familiar with the matter revealed that the SEC has downsized a special team of over 50 lawyers and staff that was previously dedicated to cryptocurrency enforcement actions. This is one of the first concrete measures taken by the Trump administration and government to reduce regulation of cryptocurrencies and other digital assets. One of Trump's first executive orders aimed to promote the development of cryptocurrencies and "eliminate overregulation of digital assets".

Sources said some lawyers from the cryptocurrency team are being reassigned to other departments within the U.S. Securities and Exchange Commission. A senior lawyer from the team has been moved out of the enforcement division.

Acting SEC Chair Mark T. Uyeda, while making a series of appointments to other senior SEC positions, has also established a group to review the SEC's approach to digital assets. This working group is led by SEC Commissioner Hester Peirce, an outspoken cryptocurrency supporter.

On February 4, local time, the U.S. Securities and Exchange Commission (SEC) launched a webpage for its Crypto Assets and Cyber Unit, listing 10 priority tasks, including resolving what types of cryptocurrencies should be classified as securities rather than commodities, and creating a more "viable" registration path by amending existing SEC registration routes.

Other priorities include "clarifying whether crypto lending and staking activities are subject to securities laws" and determining which parts of the market fall outside the SEC's jurisdiction.

Currently, as the White House and the U.S. Congress work closely to promote the development of digital assets, the legislative process for cryptocurrency and stablecoin regulation in the U.S. is gradually accelerating. Although many proposals are still in the early stages, the framework for Bitcoin reserves and stablecoins is taking shape. As the SEC's Crypto Assets and Cyber Unit is gradually adjusted, it remains to be seen whether the U.S. can lead global crypto innovation.

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