Key Legal Updates from Day One Law

gm from the Day One Law team! We hope you’re enjoying a busy summer — we sure are. Earlier this month, we proudly advised on Portal's acquisition by the Monad Foundation, a game-changing deal for the stablecoin and payments space.

As for your legal update, today we cover: 

Let’s quickly discuss.

1/3: "Crypto Week" in Washington

It’s “Crypto Week” on Capitol Hill, which means the House is set to vote on three significant pieces of crypto legislation:

• The GENIUS Act, which would establish a framework for the issuance and regulation of payment and non-yield bearing stablecoins. If it passes the House, this legislation — which originated in the Senate — would move to President Trump’s desk for signature.
  

• The CLARITY Act, which would establish a comprehensive market structure framework for digital assets. The House recently released a revised text of this legislation, which clarified that most staking rewards do not constitute securities and developers of non-custodial blockchain projects are not money transmitters. If the CLARITY Act passes the House, it will move to the Senate, where Senators stated they will formally consider a market structure proposal in September.
  

• The Anti-CBDC Surveillance State Act, which would prohibit the issuance of a U.S. central bank digital currency (CBDC) and restrict its use in monetary policy. Upon House passage, the bill would advance to the Senate.

The House is yet to pass any crypto legislation this week, with Politico reporting that House leaders cut a deal to merge the market-structure-focused CLARITY Act with the Anti-CBDC Surveillance Act.

You should know: With Congress moving quickly on the GENIUS and CLARITY Acts, crypto teams should prepare for regulatory shifts that could reshape stablecoin issuance, staking models, and developer liability.

If you’re issuing non-yield-bearing stablecoins, start evaluating potential licensing paths. For projects relying on staking rewards or building non-custodial protocols, the CLARITY Act offers promising protections; but those are not law yet, and Senate debate this fall could narrow them. DeFi builders should watch for final language around control, fees, and relay infrastructure.

Lastly, while the Anti-CBDC bill may seem symbolic, it reflects growing Congressional skepticism around federal digital currency; potentially locking in the current stablecoin-first environment. Now’s the time to audit your exposure, document design intent, and be ready to respond as the regulatory floor takes shape

2/3: SEC Statement on Tokenized Securities

SEC Commissioner Hester Peirce reminded companies offering tokenized securities that they must adhere to federal securities laws.

In her statement, “Enchanting, but Not Magical: A Statement on the Tokenization of Securities,” Commissioner Peirce noted that issuers of tokenized securities must consider their disclosure obligations, and recommended that they review the Division of Corporation Finance’s recent staff statement on this topic. The statement also mentions that the actions of market participants who distribute, purchase, and trade tokenized securities may implicate securities laws. 

“While blockchain-based tokenization is new, the process of issuing an instrument representing a security is not,” wrote Commissioner Peirce. “The same legal requirements apply to on- and off-chain versions of these instruments.” 

This comes after Robinhood debuted tokenized shares in OpenAI and SpaceX for European investors, and BlackRock CEO Larry Fink called tokenization the “next generation for markets.”

You should know: Commissioner Peirce offers a clear reminder: tokenizing a security doesn’t exempt it from securities laws. If you’re issuing or trading tokenized equity, debt, or fund interests, be prepared to meet full disclosure, registration, or exemption obligations.

The SEC is also watching the actions of secondary market participants, including platforms and liquidity providers, so ensure your roles are clearly defined and compliant. If you’re planning tokenized offerings (even abroad), now is the time to review the SEC’s Division of Corporation Finance guidance and vet whether your structure tracks with existing frameworks

3/3: Banks to offer crypto custody?

America’s federal banking regulators issued a joint statement to clarify how banks can custody crypto assets for customers.

The Office of the Comptroller of the Currency (OCC), which oversees national banks, the Federal Reserve, which oversees the U.S. central bank, and the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits, together published a statement that included the following requirements for banks that wish to offer custody of crypto assets:

• A thorough risk assessment prior to offering custody over a specific asset

• Sufficient crypto expertise among board members, officers, and staff 

• Strong controls and risk governance frameworks

• Secure management of cryptographic keys and sensitive information

• Compliance with all fiduciary or non-fiduciary legal obligations

• Adherence to BSA/AML, CFT, and OFAC compliance requirements

• Provision of clear, accurate disclosures to customers

• Diligence while managing sub-custodians and third-party providers

• Including crypto safekeeping in audit and internal control programs

While the guidance doesn’t introduce new supervisory rules, it underscores the need for strong risk management for traditional financial institutions, especially when working with third-party providers.

You should know: The message is also relevant for crypto companies working with banks or serving as sub-custodians.

If your project provides custody tech, key management, or infrastructure to financial institutions, prepare for heightened diligence: banks are now required to assess your controls, compliance posture, and crypto expertise before onboarding.

This is a signal to vendors and partners in the custody stack - expect more intensive risk assessments and onboarding checklists. If you’re targeting institutional partnerships, now’s the time to strengthen your governance, documentation, and risk frameworks to stay enterprise-ready.

As always, please reach out if you have questions about any of the above.

Talk soon.

Nick Pullman
Day One Law

This article is for informational purposes only and is not legal advice. Please consult with an attorney at Day One Law Corp regarding your specific situation.