Global Digital Assets Digest - April 2025

Welcome to this month's Global Digital Assets Digest. In this month's edition, there are various developments in relation to RTGS. Stateside, there's no let-up in activity, with a number of statements from the SEC on the regulatory treatment of digital assets and associated transactions. In Hong Kong, there's guidance on staking, while the Treasury has issued a statement on the proposed approach to reform for the Australian digital asset industry. In the UK, there are few updates in relation to the digital pound.

Updates and Guidance: International Bodies

1. BIS: Project Meridian FX: exploring synchronised settlement in FX

2. ECB: Danish krone now available in all TARGET Services

3. BIS: Final report: Project Promissa: Tokenisation of promissory notes

4. BIS: Speech by Petra Tschudin, Thomas Moser: Fast and available round the clock - what instant payments mean for households, companies and financial institutions

5. ESMA: Speech by Natasha Cazenave, Executive Director: ECON hearing on cryptoassets and financial stability

6. ECB: Speech by Piero Cipollone, Member of the Executive Board: Empowering Europe: boosting strategic autonomy through the digital euro

7. ECB: Speech by Piero Cipollone, Member of the Executive Board of the ECB: Enhancing cross-border payments in Europe and beyond

8. MICA: Delegated Regulations published in the Official Journal

Updates and Guidance: UK

9. FCA: Speech on global responses to digital assets regulation

10. FCA: Statement: Update on PISCES and pre-application support

11. BoE: Digital pound experiment report: Offline payments

12. BoE: Digital Pound: Design note – Intermediary roles and scheme rulebook

13. BoE: Minutes of the CBDC Engagement Forum - November 2024

14. BoE: Response document to discussion paper on access to RTGS accounts for settlement

15. BoE: Speech by Victoria Cleland: Innovating wholesale payments: building a resilient and innovative future

16. NAO: Work in Progress: The Bank of England’s Real-Time Gross Settlement Renewal Programme

Updates and Guidance: APAC

17. SFC: Guidance on Virtual Assets Staking

18. HKMA: Circular on Virtual Assets Staking

19. PCPD: Checklist on Guidelines for the Use of Generative AI by Employees

20. HKMA: Research Paper on Distributed Ledger Technology

Updates and Guidance: Australia

21. Treasury: Statement on Developing an Innovative Australian Digital Asset Industry

22. Shadow Commonwealth Treasurer: Bill on "Securing Australia as a Financial Centre"

Updates and Guidance: North America

23. SEC: Crypto Taskforce Roundtable – speeches by officials

24. SEC: Statement on offerings and registrations of securities in crypto asset markets

25. House Financial Services Committee: “American Innovation and the Future of Digital Assets: Aligning the U.S. Securities Laws for the Digital Age"

26. DOJ: Memorandum on ending regulation by prosecution

27. House Financial Services Committee: Op-Ed on market structure principles

28. SEC: Statement on stablecoins

29. SEC: Letter from Maxine Waters and Elizabeth Warren on possible conflicts of interest

30. House Financial Services Committee: Letter to federal agencies on recission of Biden administration polices

31. House Financial Services Committee: Digital assets legislation advanced

32. FDIC: Guidance on banks engaging in certain crypto-related activities

33. CFTC Staff Withdraws Advisory on Virtual Currency Derivative Product Listings

34. SEC: Speech by Commissioner Hester M. Peirce before The Digital Chamber's 8th Annual DC Blockchain Summit - Miles To Go

35. SEC Statement on Certain Proof-of-Work Mining Activities

Updates and Guidance: International Bodies

1. BIS: Project Meridian FX: exploring synchronised settlement in FX

On 24 April 2025, BIS issued a report in relation to Project Meridan FX, an initiative to seeking to address some of the action points laid out in the G20 Roadmap on Cross Border Payments (reducing foreign exchange settlement risk using payment-versus-payment transactions and linking wholesale payment infrastructures of different countries).

Synchronisation involves coordinating the movement of central bank money between accounts in wholesale payment infrastructures, including RTGS systems. Stakeholders consider that synchronisation can expand atomic settlement in central bank money to a wide range of assets and funds. Project Meridan FX builds on Project Meridian, which explored the concept of synchronisation, by looking at synchronisation in a multicurrency FX transaction.

Under the initiative, a synthetic version of the UK RTGS system was connected to three experimental Eurosystem interoperability solutions: DL3S (developed by the Bank of France), TIPS Hash-Link (developed by the Bank of Italy) and the Trigger Solution (developed by the Deutsche Bundesbank). BIS considers that the project demonstrated that FX transactions can be settled across jurisdictions and different types of infrastructures.

The ECB released a statement in respect of Project Meridian.

2. ECB: Danish krone now available in all TARGET Services

On 23 April 2025, the ECB confirmed that Danish Krone is available for settlement Eurosystem’s T2 and TARGET Instant Payment Settlement (TIPS) services. The ECB confirms Danmarks Nationalbank as the first non-euro area central bank to participate in all three TARGET Services and that TIPS supports three currencies: the euro, the Swedish krona, and the Danish krone. Danmarks Nationalbank applied to join T2 and TIPS in 2020, with the currency participation agreement signed in 2024.

3. BIS: Final report: Project Promissa: Tokenisation of promissory notes

On 23 April 2025, BIS issued a final report in respect of Project Promissa, an initiative between BIS Innovation Hub, the Swiss National Bank, and the World Bank. The project looked at how the financial commitments of member countries to multilateral development banks could be managed more efficiently via tokenisation. The project developed a proof-of-concept platform for tokenised promissory notes, automating many manual processes.

4. BIS: Speech by Petra Tschudin, Thomas Moser: Fast and available round the clock - what instant payments mean for households, companies and financial institutions

On 10 April 2025, BIS published a speech delivered by Petra Tschudin, Member of the Governing Board of the Swiss National Bank, and Mr Thomas Moser, Alternate Member of the Governing Board of the Swiss National Bank, at the Money Market Event, Zurich. The speech summarises the latest developments in relation to cashless payments in Switzerland, as well as challenges and opportunities posed by instant payments.

Notable points

• The first major financial and organisational challenge is the adaptation of banks’ IT infrastructure. A second challenge relates directly to the speed of instant payments. A third challenge for financial institutions concerns the management of the liquidity required to settle instant payments.
• RTGS service in Switzerland is being adjusted so that it can operate continuously at weekends and during public holidays.
• To support financial institutions, the SNB will be offering the Payment System Support Facility (PSSF) from the end of 2027, allowing financial institutions to independently access liquidity on a secured basis.

5. ESMA: Speech by Natasha Cazenave, Executive Director: ECON hearing on cryptoassets and financial stability

On 8 April 2025, ESMA published a speech by Natasha Cazenave, Executive Director at the ECON hearing on cryptoassets and financial stability.

• Cryptoassets markets have more than doubled in size in 2024, reaching a market cap of EUR 3.3 trillion at year end. Cryptoassets have since lost more than 20% in value during the first quarter of 2025.
• Risks to financial stability arising from cryptoassets are increasing but are not significant yet, owing to their relatively small size in relation to total global financial assets.
• MiCA may need some adjustments to mitigate new or emerging risks going forward.

6. ECB: Speech by Piero Cipollone, Member of the Executive Board: Empowering Europe: boosting strategic autonomy through the digital euro

On 8 April 2025, ECB published a speech by Piero Cipollone, Member of the Executive Board, examining the meaning strategic autonomy in day-to-day payments and the benefits of a digital euro.

Key points

• European payment service providers often lack the scale to offer their services across the EU, owing to fragmented market structures.
• Excessive reliance on non-European providers undermines resilience of the EU and compromises its monetary sovereignty. Ensuring autonomy in the payments sector is just as urgent as ensuring autonomy in other sectors.
• Measures taken in other jurisdictions to promote cryptoassets and US dollar-backed stablecoins increase concerns for Europe’s financial stability and strategic autonomy.
• The digital euro could shield European merchants from high charges imposed by international card schemes and allow them to better negotiate fees with these schemes.
• The digital euro should allow European payment providers to expand their services across the euro area via open standards and legal tender status of the digital euro.

7. ECB: Speech by Piero Cipollone, Member of the Executive Board of the ECB: Enhancing cross-border payments in Europe and beyond

On 1 April 2025, the ECB published a speech by Piero Cipollone, Member of the Executive Board.

Key points

• Digitalisation and reduced costs in IT and telecommunications as not been accompanied by reduction in cross border payments.
• ECB welcomes efforts being made in other western Balkan economies in joining SEPA, following the accession of Montenegro, Albania and North Macedonia.
• High costs and slow transaction times are undermining economic integration and growth, with the world's most vulnerable groups disproportionately affected.
• Promotion of US stablecoin brings unique set of challenges.
• Rising geopolitical tensions are remoulding the foundations of cross-border payments and posing potential challenges to existing correspondent banking networks. Separate platforms are being set up as alternatives to existing global infrastructures (examples include system for Transfer of Financial Messages and the Cross-Border Interbank Payment System).
• The EU is responding to these challenges via a strategy that consists of interlinking fast payment systems, most notably interlinking TARGET Instant Payment Settlement with other fast payment systems to improve cross-border payments globally.
• Examples of interlinking include: cross settlement service for the exchange of cross-border payments between TIPS and other fast payment systems globally; assessing the feasibility of bilateral ink between Eurosystem and India’s Unified Payments Interface (UPI); and work by Banca d’Italia with Balkan central banks to develop an instant multi-currency payment system based on TIPS software.

8. MICA: Delegated Regulations published in the Official Journal

On 31 March 2025, a number of delegated regulations supplementing MICA were published in the Official Journal.

• Commission Delegated Regulation (EU) 2025/300 on information to be exchanged between competent authorities. This relates to the exchange of information and documents on the public offers of cryptoassets to allow competent authorities to effectively carry out their investigation, supervision and enforcement activities under MICA.
• Commission Delegated Regulation (EU) 2025/305 on information to be included in an application for authorisation as a CASP (including details relating to accompanying information,such as the identity of the applicant, the governance arrangements and internal control mechanisms, the suitability of the members of the management body and programme of operations).
• Commission Delegated Regulation (EU) 2025/413 on information needed for assessing a proposed acquisition of a qualifying holding in an issuer of an ART for the prudential assessment.
• Commission Delegated Regulation (EU) 2025/414 on the detailed content of information necessary to carry out the assessment of a proposed acquisition of a qualifying holding in a CASP.
• Commission Delegated Regulation (EU) 2025/422. The consensus mechanism underpinning many cryptoasset transactions requires the use of materials and computing power impacting the climate and environment. MiCA requires the disclosure in relevant white papers of the principal adverse impacts on the on the climate of the consensus mechanisms used to issue a cryptoasset. CASPs are also required to publish similar information on their website. The RTS set out a list of indicators to help investors access accurate, fair, clear, not misleading and comparable information.
• Commission Implementing Regulation (EU) 2025/306. This relates to the standard forms, templates and procedures for the information to be included in the application for authorisation as a CASP.

Updates and Guidance: UK

9. FCA: Speech on global responses to digital assets regulation

On 25 April 2025, the FCA published a speech by Jessica Rusu, Chief Data, Information and Intelligence Officer, on the global responses to digital assets regulation. The speech sets out how the FCA's is supporting growth and innovation through smarter systems and reduced regulatory burdens. The speech refers to the FCA's new five-year strategy and argues that technological changes have led to significant changes in the financial services sector. It refers to various FCA initiatives such as the Regulatory Sandbox, Digital Sandbox and Digital Securities Sandbox.

The speech notes the global nature of the digital assets industry, arguing that the FCA must keep abreast and be involved in efforts being undertaken in other international jurisdictions. Ms Rusu summarises key work the FCA has undertaken to date (including FCA's Crypto Roadmap and the Private Intermittent Securities and Capital Exchange System).

10. FCA: Statement: Update on PISCES and pre-application support

On 10 April 2025, the FCA published a web page in relation to the Private Intermittent Securities and Capital Exchange System (PISCES). PISCES is new type of trading platform enabling intermittent trading of private company shares using market infrastructure. The webpage follows a December 2024 consultation paper (CP24/29) on a regulatory framework (see Ashurst Global Digital Assets Digest January 2025 edition).

The statement sets out the FCA's likely final position and is designed to support firms planning to operate PISCES

Areas covered include:

• operator oversight;
• core disclosures (financial information; significant changes; and post trade event disclosures);
• application of chapter 5 of the Market Conduct Sourcebook in the FCA Handbook MAR 5; and
• permissioned trading events.

11. BoE: Digital pound experiment report: Offline payments

On 10 April 2025, the BoE published a report looking at whether an offline payment functionality for a digital pound can be implemented. The report defines an "offline payment" as a payment occuring while neither payer nor payee has access to the CBDC network.

The BoE and HMT are currently in the design phase in relation to the UK CDBC, having moved from the research and exploration phase of work. The Technology Working Paper accompanying the consultation paper on digital pound argued that an offline payment functionality could be useful in the event of network disruption or outage of telephony services, as well as promote other objectives.

The report assesses whether offline CBDC payments could achieve: finality and irrevocability; double spend and counterfeit detection; and compliance with fraud and anti-money laundering regulations. It concludes that an offline payment functionality for a digital pound is technically feasible, but that there are challenges (e.g. security, performance, and user experience).

12. BoE: Digital Pound: Design note – Intermediary roles and scheme rulebook

On 10 April 2025, the BoE published a design note on the potential roles and responsibilities of digital pound intermediaries and a preliminary conceptual framework for a digital pound rulebook. Design notes outline emerging thinking of the BoE on specific topics in relation to the design phase of the digital pound. As set out in the initial design note on the digital pound blueprint, work will focus on four pillars: product, vision and strategy; scheme and regulation; technology; and operations.

A scheme rulebook would set out the responsibilities for participants in the digital pound. The design note builds upon earlier work on potential interaction of digital pound intermediaries (PIPs and ESIPs) under a digital pound scheme rulebook and with the digital pound core platform.

13. BoE: Minutes of the CBDC Engagement Forum - November 2024

On 10 April 2025, the BoE published the minutes of the CBDC Engagement Forum held in November 2024. Areas discussed included the National Payments Vision (see briefing here) and findings and recommendations from the Retailer Needs Working Group on the digital pound. This included: the need for the digital pound to support B2B functionality, so as to tackle current frictions in UK retailer payments; and key challenges impacting digital pound adoption from a merchant-perspective (including security and network connectivity).

The Forum also discussed the importance of monitoring the ECB’s work on B2B payments for the digital euro, as well as the delivery of conditional payments functionality by wallet providers.

14. BoE: Response document to discussion paper on access to RTGS accounts for settlement

On 8 April 2025, the BoE published its response to its February 2024 discussion paper on access to RTGS accounts for settlement (see Ashurst Global Digital Assets Digest February 2024 edition). The response document summarises feedback received by the BoE in relation to the following areas: enhancing the BoE/FCA process for consideration of Non-Bank Payment Service Providers (NBPSPs) seeking access to RTGS; understanding the demand for foreign banks for access to RTGS to support payment system settlement; clarifying requirements for FMI to access RTGS; and reviewing of the CHAPS value threshold. The response also sets out other barriers to accessing RTGS identified by respondents.

In light of feedback, BoE has published:

• new RTGS rules, including eligibility criteria for use of RTGS accounts for settlement;
• a revised RTGS access policy combining and updating access policies for settlement and omnibus accounts; and
• a revised guide for NBPSPs seeking access to UK payment systems.

The BoE also sets out areas of future policy outlook, including: settlement accounts with safeguarding facilities for NBPSPs; support of NBPSP regulatory reform; and further industry engagement on the CHAPS direct participation threshold review.

15. BoE: Speech by Victoria Cleland: Innovating wholesale payments: building a resilient and innovative future

On 25 March 2025, the BoE published a speech by Victoria Cleland, Executive Director, Payments. The speech discusses expanding access to the RTGS and ISO 20022.

Main points

• The renewed RTGS is intended to provide a more resilient, flexible, scalable infrastructure, and promote innovation across the financial sector.
• The first stage of renewing core infrastructure was moving CHAPS to the ISO 20022 global messaging standard. The next is the new core ledger and settlement engine.
• Expanding access to RTGS services globally is one of the key building blocks of the G20 Roadmap to enhance cross-border payments.
• The BoE works closely with the FCA to assess applications from NBPSPs to open an RTGS settlement account. The BoE and the FCA have made some changes to the cooperation framework.
• Responses to the discussion paper indicated more clarity was needed on the costs, benefits, and process for accessing RTGS directly.
• The BoE will be engaging with industry in 2025 on aspects of CHAPS, including financial stability implications of further policy intervention to revise the CHAPS direct participation threshold.
• Collaboration across market infrastructures, financial institutions, and technology providers is essential for ISO 20022. The BoE will mandate the use of ISO 20022 enhanced data for certain CHAPS payments from 1 May 2025.
• Examples of innovation and experimentation being undertaken by the BoE include developing synchronisation capability to connect RTGS with diverse ledgers.

16. NAO: Work in Progress: The Bank of England’s Real-Time Gross Settlement Renewal Programme

The NAO published a webpage on progress made in relation to a study on the RTGS. This will look at how well the BoE is carrying out the renewal programme and will assess whether:

• a clear vision and strategy accompanied the RTGS renewal programme had a clear vision and strategy;
• the management of the RTGS renewal programme was effective and efficient; and
• lessons learnt are informing the future development of the RTGS, as well as its wider digital transformation.

Updates and Guidance: Europe

No new entries.

Updates and Guidance: APAC

17. SFC: Guidance on Virtual Assets Staking

On 7 April 2025, the SFC issued a circular providing guidance to licensed virtual asset trading platforms (VATPs) on the offer of staking services. In parallel, the SFC revised its circular on SFC-authorised funds with exposure to virtual assets to facilitate their engagement in staking. (see SFC news, circular on VATPs and circular on SFC-authorised funds).

18. HKMA: Circular on Virtual Assets Staking

On 7 April 2025, HKMA issued a circular to set out the standards expected of authorised institutions (AI) related to the provision of staking of virtual assets from custodial services to their customers. AIs should maintain internal controls to protect client's' virtual assets, disclose general information and risks about their staking services, and act with due skill, care and diligence when including a blockchain protocol and seeking third-party service providers (see circular).

19. PCPD: Checklist on Guidelines for the Use of Generative AI by Employees

On 31 March 2025, the Privacy Commissioner for Personal Data (PCPD) published guidelines for the use of generative AI by employees. The guideline provides recommendations to organisations on the scope of permissible use of Gen AI, protection of personal data privacy, lawful and ethical considerations, data securities, and consequences of breach of policies and guidelines. It also provides practical tips on supporting employees in using Gen AI tools. (see media statement and Checklist on Guidelines for the Use of Generative AI by Employees).

20. HKMA: Research Paper on Distributed Ledger Technology

On 19 March 2025, the HKMA issued a research paper on DLT in the finance sector. The research paper explores the transformative role of DLT, as well as its benefits, challenges and potential use cases for the financial industry. It also analyses the potential risks associated with the adoption of DLT and offers recommendations on how to mitigate them. (see circular and Distributed Ledger Technology in the Financial Sector: A Study on the Opportunities and Challenges).

Updates and Guidance: Australia

21. Treasury: Statement on Developing an Innovative Australian Digital Asset Industry

On 21 March 2025, the Treasury released a statement with a proposed approach to reform for the Australian digital asset industry.

The Australian Government's proposed approach to Digital Assets

• The proposed approach will focus on the operators of Digital Asset Platforms (DAPs) (platforms that hold people's digital assets for them, also known as crypto exchanges or brokers) and seeks to impose a new regulatory regime for digital asset issuers or the businesses that create or use digital assets for non-financial purposes. According to the statement, the aim is to mitigate risks for consumers to allow the sector to develop.
• The Government also seeks to implement a framework for Payment Service Providers (PSPs) (organisations that provide a stored-value facility or payments facilitation service). The proposed Payments Licensing reforms will revise the existing licensing regime for non-cash payment facilities and cover a wide range of payment products and services now provided in Australia. The proposed reforms aim to cover the holding of monetary value for making payments – whether in traditional account-based stored value facility (SVFs) or in payment of stablecoins.
• According to the statement, the proposed DAP and PSP reforms will leverage the existing Australian Financial Services License (AFSL) regime. Businesses providing these services will be required to comply with certain existing financial obligations, together with additional tailored obligations.

Businesses operating DAPs or issuing tokenised SVFs (such as stablecoins) will have to comply with general obligations such as:

• rules for safeguarding customer assets (based on existing "client monies" rules and the existing "minimum standards custodial and depository services"), and requirements for the redemption of stored value represented by tokens; and
• new obligations tailored to address risks of DAPs and Tokenised SVFs (e.g. tailored disclosure rules for digital assets without issuers, disclosure of information about composition of reserves, etc).

The Australian Securities and Investments Commission (ASIC) is currently considering stakeholder feedback on its proposed updates to Information Sheet 225 (INFO 225: Crypto-assets). ASIC will also assist with the transitional arrangements before the legislative reforms take effect.

The statement acknowledges de-banking is a risk to the digital asset industry and intends to implement the recommendations from the Council of Financial Regulators (CFR) paper "Potential Policy Responses to De-Banking in Australia".

The Government also sets out future work streams to be considered such as the Crypto Asset Report Framework, Enhanced Regulatory Sandbox, Central Bank Digital Currencies, Tokenisation and DeFi.

The Government intends to release a draft legislation of the reforms in 2025 for public consultation. See our Ashurst's Financial Services Snapshots for further discussion on this update and its implications.

22. Shadow Commonwealth Treasurer: Bill on "Securing Australia as a Financial Centre"

Shadow Commonwealth Treasurer Angus Taylor announced on 2 April 2025, at the National Press Club, that the Coalition will introduce the "Securing Australia as a Financial Centre" Bill within 100 days following the next Australian federal election, on 2 May 2025. According to Angus Taylor, the Bill is proposed to legislate key financial service reforms ranging from payments system reforms, digital assets regulation and restoring the financial advice profession.

Updates and Guidance: North America

23. SEC: Crypto Taskforce Roundtable – speeches by officials

On 11 April 2025, the SEC published remarks by Commissioner Caroline Crenshaw and Commissioner Mark Uyeda delivered at the SEC's April 2025 crypto roundtable “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading".

Key points from Uyeda

• The Federal framework allows participants to offer trading in tokenised securities and non-security cryptoassets under a single SEC license (as opposed to offering trading in non-security crypto assets under a patchwork of fifty different state licences).
• Broker dealers and national securities exchanges seeking to offer trading in tokenised securities may encounter hurdles when it comes to federal securities law and regulations (most tokenised securities are unregistered but national securities exchanges can only list registered securities).
• Compliance with Rule 611 (order protection rule) may not be possible in relation to customer orders for securities trading in both tokenised and non-tokenised formats in on-and-off chain markets.

Key points from Crenshaw

• Crypto trading platforms may (or may not) fit into the existing regulatory regime for national securities exchanges and alternative trading systems.
• Variety of issues for stakeholders to consider including: crypto exchange registration; how on and off chain transactions comply with broker dealers' and best execution obligations

The SEC's Crypto Task Force is also holding the following roundtables:" Know Your Custodian: Key Considerations for Crypto Custody" ( 25 April 2025); "Tokenization - Moving Assets On chain: Where TradFi and DeFi Meet" (12 May 2025); and "DeFi and the American Spirit" (6 June 2025).

24. SEC: Statement on offerings and registrations of securities in crypto asset markets

On 10 April 2025, the SEC's Division of Corporation Finance issued a statement on how the federal securities law apply to certain offerings and registrations of securities in cryptoasset markets. The statement seeks to set out relevant disclosures to aid investors, including disclosures concerning the development timeline of a crypto network /application, its functions and processes, and the rights of holders of the relevant security (e.g. dividends, profit-sharing, or voting rights). The SEC suggests that the statement may be of use to a company: developing a blockchain and issuing debt or equity; registering the offering of an investment contract in connection with an initial coin offering; and issuing a cryptoasset that is a security.

The statement sets out the SEC's observations on disclosures provided in response to existing disclosure requirements. Areas covered include risk factors; description of securities; rights, obligations and preferences; information on management; financial statements; and technical specifications.

25. House Financial Services Committee: “American Innovation and the Future of Digital Assets: Aligning the U.S. Securities Laws for the Digital Age"

On 10 April 2025, the House Financial Services Committee Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee held a hearing entitled “American Innovation and the Future of Digital Assets: Aligning the U.S. Securities Laws for the Digital Age”. The hearing examined the legal uncertainty on the application of securities laws to digital assets. It looked at which digital asset activities implicate U.S. securities law, why current regulations may not apply, and the legislative actions that can be taken to address the challenges.

26. DOJ: Memorandum on ending regulation by prosecution

On 7 April 2025, the Deputy Attorney General Todd Blanche of the DOJ issued a memorandum in relation to enforcement policy for cryptoassets. This follows the executive Order on digital assets signed by President Trump in January 2025 (see Ashurst Global Digital Assets Digest February 2025 edition). The memorandum notes that the Order requires the DOJ to prioritise investigations and prosecutions involving conduct causing financial harm to investors; or the use of digital assets to further criminal conduct. Accordingly, prosecutors are not to pursue regulatory violations of registration requirements under various legislation where this would lead to the DOJ deciding whether a digital asset is a security or a commodity; and where there is alternative criminal charge available. The memo also confirms that the DOJ will be disbanding the National Cryptocurrency Enforcement Team.

In response, the CFTC published a statement from acting chairman, Caroline Pham welcoming the approach and confirming that the CFTC’s enforcement resources would focus on cases involving fraud and manipulation. Pham confirmed that the CFTC would deprioritise actions involving violations of registration requirements under the Commodity Exchange Act, unless there is evidence of wilful violation.

27. House Financial Services Committee: Op-Ed on market structure principles

On 4 April 2025, Chairman of the House Financial Services Committee, French Hill, and House Committee on Agriculture, Chairman G.T. Thompson, published a CoinDesk Op-Ed on market structure legislation. This sets out core principles to be included in digital asset legislation: promote innovation; provide clarity for the classification of assets; codify a framework for the issuance of new digital assets; establish the regulation of spot market exchanges and intermediaries; establish best practices for the protection of customer assets; and protect innovative decentralised projects and activities and an individual’s right to self-custody their digital assets.

28. SEC: Statement on stablecoins

On 4 April 2025, the SEC's Division of Corporation Finance issued a statement in relation to the regulatory treatment of certain stablecoins. These are termed covered stablecoins (i.e. stablecoins designed to maintain a stable value relative to the US dollar, on a one a one-for-one basis, backed by assets held in a reserve considered to be low risk and liquid). The statement assesses whether covered stablecoins are notes or debt instruments under the test set out in Reves V Ernst & Young, as well as whether they amount to "investment contracts" under the test set out in SEC v W.J Howey (Howey Test) and therefore whether associated transactions require registration.

The Division explains that the Reves test involves a holistic assessment of four factors: motivation of seller and buyer; plan of distribution of the instrument; reasonable expectations of the investing public; and risk reducing features. The Division concludes that covered stablecoins are not securities under Reves because: the proceeds are used by sellers to fund a reserve and buyers are not motivated by an expected return on their funds; the manner in which covered stablecoins are distributed does not encourage trading for speculation or investment; a reasonable buyer would likely expect that covered stablecoins are not investments; and the availability of a reserve is a risk-reducing feature.

The Division also concludes that covered stablecoins are not offered or sold as investment contracts for the purpose of the Howey Test, as the purchase of covered stablecoins does not involve "a reasonable expectation of profit derived from the entrepreneurial or managerial efforts of others" (as the instruments are not marketed as investments).

The statement confirms that offer and sale of covered stablecoins in the manner and under circumstances discussed does not amount to offer and sale of securities within the meaning of Section 2(a)(1) of the Securities Act of 1933 or Section 3(a)(10) of the Securities Exchange Act of 1934.

29. SEC: Letter from Maxine Waters and Elizabeth Warren on possible conflicts of interest

On 2 April 2025, Senator Elizabeth Warren and Representative Maxine Waters sent a letter to the SEC Acting Chair, Mark Uyeda, calling for transparency regarding potential conflicts of interest in relation to certain cryptocurrency entities and their impact on SEC decision making. The letter requests various communications and records from the SEC.

30. House Financial Services Committee: Letter to federal agencies on recission of Biden administration polices

On 1 April 2025, it was announced that Members of the House Committee on Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence had sent letters to the Federal banking agencies and the Consumer Financial Protection Bureau. The letters call for a withdrawal of certain regulatory actions said to restrict financial institutions’ engagement in digital assets. Rules cited in the correspondence include: CFBP Final Rule on Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications; and the Federal Reserve's SR 22-6 (engagement in cryptoasset-related activities by Federal Reserve-supervised banking organisations) and SR 23-8 (supervisory nonobjection process for state member bank engagement in dollar token activities).

In April 2025, the Federal Reserve announced that it had withdrawn both SR 22-6 and SR 23-8.

31. House Financial Services Committee: Digital assets legislation advanced

In April 2025, the House Financial Services Committee voted to advance digital assets legislation. This includes the Stablecoin Transparency and Accountability for a Better Ledger Economy Act (the STABLE Act,), the Anti-CBDC Surveillance State Act and the Financial Technology Protection Act.

This follows the Senate Banking Committee's recent passage of the GENIUS ACT.

32. FDIC: Guidance on banks engaging in certain crypto-related activities

On 28 March 2025, the FDIC issued a Financial Institution Letter (FIL-7-2025) rescinding FIL-16-2022 and confirming that FDIC-supervised institutions may carry out permissible crypto-related activities without receiving prior FDIC approval. The FDIC confirms that it will continue to work with the President’s Working Group on Digital Asset Markets and may issue further guidance on banks’ engagement in particular crypto-related activities.

33. CFTC Staff Withdraws Advisory on Virtual Currency Derivative Product Listings

On 28 March 2025, the CFTC's Division of Market Oversight and Division of Clearing and Risk confirmed that CFTC Staff Advisory No. 18-14, Advisory with Respect to Virtual Currency Derivative Product Listing would be withdrawn. The DMO and DCR determined that the advisory was obsolete in light of developments.

34. SEC: Speech by Commissioner Hester M. Peirce before The Digital Chamber's 8th Annual DC Blockchain Summit - Miles To Go

On 26 March 2025, the SEC issued a speech, delivered by Commissioner Hester M. Peirce at Digital Chamber's 8th Annual DC Blockchain Summit, on how US Congress can create an effective regulatory framework for digital assets in light of regulatory overlap and regulatory overload. Peirce suggests that Congress could:

• work with existing regulators rather than creating a new one;
• (in relation to interstate commerce) pre-empt state regulation over areas covered by federal regulators to reduce overlap with 50 state regulators;
• assign jurisdiction over particular types of crypto assets to particular federal regulators; and
• apply lessons from the SEC’s and CFTC’s regulatory experience in traditional markets to the regulation of cryptoassets and to relevant platforms with targeted adjustments to address unique features of digital assets.

35. SEC Statement on Certain Proof-of-Work Mining Activities

On 20 March 2025, the SEC's Division of Corporation Finance issued a statement on the regulatory treatment of certain proof of work mining activities, namely whether certain activities meet the definition of "investment contract" under the test set out in SEC v. W.J. Howey Co (the “Howey test”).

The statement refers to mining of cryptoassets "intrinsically linked to programmatic functioning of a public, permissionless network, and are used to participate in and/or earned for participating in network's consensus mechanism or otherwise used to maintain and/or earned for maintaining the technological operation and security of such network" (Covered Cryptoassets). The SEC confirms that mining of Covered Cryptoassets on proof of works networks in the manner described in the statement does not involve the offer and sale of securities within the Securities Act of 1933 and the Securities Exchange Act 1934. The statement only applies to the following activities:

• Self (or Solo) Mining, a process where a miner mines Covered Crypto Assets using its own computational resources (whether working alone or together with others to operate a node and mine Covered Crypto Assets);
• Mining Pool, where miners combining their computational resources with other miners and mine new blocks on the network.

The statement does not, however, discuss proof-of-stake networks/other consensus mechanisms.

In response, the SEC issued a statement by Commissioner Caroline Crenshaw criticising the approach adopted and cautioning against the statement being viewed as a wholesale exemption for mining activities. It calls for market participants to note the various caveats outlined in the statement.

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Editor: Bisola Williams, Expertise Legal Manager

Contributors: Michelle Lee, Trainee; Julian Pipolo, Senior Associate; Angelique Nelis, Associate; Anson Chan, Junior Associate; Meredith Yip, Trainee; Anna He, Associate