New Housing Law Bars a CBDC Through 2030, OCC Advances Stablecoin Trust Bank Charters, Senate to Focus on Clarity Act and Court Certifies Crypto Securities Question for Appeal

The U.S. House and Senate returned from recess on July 13. Senate leaders have called for the chamber to take up the Digital Asset Market Clarity Act, while some members continue to raise questions regarding certain bill provisions. The 21st Century ROAD to Housing Act, which became law on July 11, includes a prohibition on issuing a central bank digital currency (CBDC) through Dec. 31, 2030.

The Office of the Comptroller of the Currency granted a U.S.-based stablecoin issuer final approval to establish a national trust bank, converting a conditional approval the agency had issued in December 2025. Separately, the OCC granted preliminary conditional approval to a national trust bank subsidiary of the online banking unit of a foreign financial group that plans to issue a dollar-backed stablecoin.

In litigation, a federal court in the Southern District of New York denied a prediction markets platform’s request to block state gambling enforcement against its sports-related event contracts. A federal court in Connecticut certified for interlocutory appeal the question of whether a crypto lending program constitutes a security under the Howey and Reves tests.

Regulatory Updates

OCC Grants Stablecoin Issuer Final Approval to Establish a National Trust Bank

• On July 10, a U.S.-based stablecoin issuer received final approval from the OCC to establish a national trust bank that will provide fiduciary custody of digital assets. The approval converts a preliminary conditional approval the OCC granted in December 2025.
• The bank will initially provide custody services for the issuer and its affiliates. Under its OCC-approved business plan, it may later offer custody services to a limited number of institutional customers, including banks and other financial institutions such as regulated derivatives organizations.

OCC Grants Preliminary Conditional Approval to a Foreign-Owned Stablecoin Trust Bank

• In a July 6 corporate announcement, the bank stated it submitted an application to the OCC for the establishment of the trust subsidiary and has obtained conditional approval as part of the OCC’s review process. The bank plans to establish a trust subsidiary and proceed with preparations for the commencement of business. Until all approvals and other authorizations, including the OCC’s final approval, have been obtained, no business activities, including the issuance of stablecoins, will be conducted.

Congressional Updates

New Housing Law Bars a CBDC Through 2030

• On July 11, the 21st Century ROAD to Housing Act (H.R. 6644) became law without the President’s signature. The bill includes a prohibition on the issuance of a CBDC until Dec. 31, 2030. Additional details can be found here.

Senate to Potentially Consider the Clarity Act Following Recess

• The Digital Asset Market Clarity Act (H.R. 3633), which passed the House in July 2025 and was reported to the Senate calendar on June 1, is expected to receive floor consideration after the Senate returns on July 13 and before lawmakers retreat for August recess. That would give lawmakers just three weeks to iron out concerns some Democrats have expressed, including the treatment of illicit finance and ethics. Members have discussed an updated draft coming soon.

Additional Updates

Prediction Markets Platform Denied Injunction in New York

• On July 7, the U.S. District Court for the Southern District of New York denied a prediction markets platform’s motion for a temporary restraining order and preliminary injunction seeking to block New York from enforcing its gambling laws against the platform’s sports-related event contracts. The court held that the platform had not shown a likelihood of success on its claim that the Commodity Exchange Act preempts the state laws, reasoning that the CEA’s savings provisions reflect congressional intent to preserve certain state authority.

Court Certifies Crypto Securities Question for Interlocutory Appeal

• On July 2, the U.S. District Court for the District of Connecticut granted defendants’ motion for interlocutory appeal to the 2nd Circuit the question of whether a crypto lending program constitutes a security. The court had previously held that the plaintiffs adequately alleged the program was a security under both the Howey investment-contract test and the Reves note test.
• The court held: “cryptocurrency investment schemes like the Genesis Yield program fit awkwardly within the Howey framework ... if Howey, and by extension federal securities laws, do not apply to and regulate the Genesis Yield program, what does? ... That is a question that deserves the Second Circuit’s attention.”
• The court described the question as controlling and one on which there is substantial ground for difference of opinion, noting the absence of 2nd Circuit guidance on applying those tests to cryptocurrency transactions.