Congress exempts most crypto tokens from SEC oversight, restricts Fed digital currency.

What it does

This bill creates a federal regulatory framework for digital assets (cryptocurrencies and tokens) by splitting jurisdiction between the SEC and CFTC. It treats most network tokens as non-securities (removing SEC oversight) if they meet certain conditions, requires disclosure from token originators about their business activities and the underlying technology, and amends the Federal Reserve Act to prohibit Federal Reserve banks from offering digital currency services directly to individuals and to ban using central bank digital currency for monetary policy.

Why we flagged it

The bill's operative mechanism exempts most digital tokens from securities law (deregulation) while simultaneously restricting Federal Reserve authority over digital currencies. The crypto framework is the primary focus; the CBDC restrictions are a secondary but significant constraint on government monetary tools.

• Federal Reserve Act amendments prohibiting Fed banks from offering CBDC services or using CBDC for monetary policy are substantively unrelated to digital asset market regulation.

What the text implies

• The 'ancillary asset' definition and certification process create a safe harbor for token issuers to avoid securities registration, but the 60-day deemed-approval mechanism means the SEC has limited time to challenge questionable tokens before they trade.
• Digital asset intermediaries (exchanges) can file disclosures on behalf of token originators, shifting compliance burden and liability to intermediaries rather than issuers—creating a regulatory arbitrage opportunity.
• The bill preempts state securities laws that treat tokens differently than commodities, potentially overriding state-level investor protections and creating a federal floor below which states cannot regulate.
• Gratuitous distribution carve-outs (staking rewards, airdrops, liquid staking) are presumed not to be securities offerings, which may allow token originators to distribute value without disclosure if structured as 'programmatic' distributions.
• The CBDC prohibition is permanent and extraterritorial, preventing the Federal Reserve from issuing a digital dollar even if Congress later authorizes it, effectively locking in a policy choice.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Citizens gain clarity and reduced regulatory friction for crypto innovation, but lose SEC investor protections (disclosure, anti-fraud enforcement) for most token offerings. The CBDC restrictions protect financial privacy but may limit future monetary policy tools. Token originators and intermediaries benefit from lighter compliance; retail investors face higher information asymmetry and fraud risk.

Who stands to gain

• cryptocurrency exchanges and trading platforms
• token issuers and crypto project developers
• digital asset custodians and service providers
• crypto venture capital and investment firms

Named in the bill

Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Federal Reserve, Federal Reserve banks, digital asset intermediaries, ancillary asset originators, decentralized governance systems

Where it stands

21 cosponsors: 14 Republicans, 7 Democrats.

• May 29, 2025 — Introduced · Congress.gov: “Introduced in House”
• May 29, 2025 — Referred to House Committee on Agriculture and House Committee on Financial Services · Congress.gov: “Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a…”
• Jun 10, 2025 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Jun 10, 2025 — Reported out of committee · Congress.gov: “Ordered to be Reported (Amended) by the Yeas and Nays: 32 - 19”
• Jul 17, 2025 — Passed the House · Congress.gov: “On passage Passed by the Yeas and Nays: 294 - 134 (Roll no. 199).”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

169 lobbying clients named this bill on 231 disclosure filings across 4 quarters, Sep 2025 to Jun 2026. Those filings disclosed $55,388,124 in lobbying spend. A filing names 3 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 100% of bills with at least one filing.

J. Hill, the sponsor, reported $1,558,189 in PAC receipts in the 2026 cycle. $81,000 of that came from 11 PACs tied to these lobbying clients.

• Securities Industry and Financial Markets Association — $5,090,000 on 2 filings
• American Association for Justice — $3,610,000 on 2 filings
• Independent Community Bankers of America — $2,170,000 on 1 filing
• Visa, Inc. — $2,150,000 on 1 filing
• Investment Company Institute — $2,106,510 on 2 filings

Lobbying Disclosure Act filings through Jul 23, 2026. A filing shows who paid to lobby on a bill it names, not what changed.