SEC Chair Testifies That Digital Asset Regulation Is a Key Priority, Congress Advances Financial Reform Bills, and the CFTC Signals Progress on Perpetual Futures

Recent legislative activity continued to shape the trajectory of U.S. crypto policy, even as Congress is out of session this week. Lawmakers advanced several financial reform bills before the recess, while federal regulators signaled plans to clarify digital asset rules, modernize oversight, and support responsible market innovation.

In a May 21 congressional hearing, SEC Chair Paul Atkins outlined his vision for a “new day at the SEC.” He indicated that a “key priority” will be to develop a rational regulatory framework for crypto asset markets that establishes clear rules for issuing, custody of and trading crypto assets while continuing to discourage bad actors from violating the law.

Meanwhile, during a two-day markup, the House Financial Services Committee advanced several financial reform bills. These included the Equal Opportunity for All Investors Act (H.R. 3339), which would allow individuals to qualify as “accredited investors” under Regulation D by passing a financial sophistication exam, and the Financial Integrity and Regulation Management Act (the FIRM Act) (H.R. 2702), which would prohibit federal banking agencies from using “reputational risk” as a basis to restrict access to financial services, aiming to prevent a resurgence of “Operation Choke Point” practices.

At the CFTC, outgoing Commissioner Summer Mersinger stated that perpetual crypto futures contracts could soon launch in the United States. She noted that applications are pending and suggested these products may be approved for trading in the near future. Mersinger, whose final day at the CFTC is May 30, will become CEO of the Blockchain Association, a digital asset trade association.

Congressional Updates

SEC Chair Atkins Testifies Before Congress: Focus on Clarity, Capital Formation, and Crypto Reform

• On May 21, the House Appropriations Subcommittee on Financial Services and General Government held an oversight hearing with SEC Chair Paul Atkins entitled “Oversight Hearing of the U.S. Securities and Exchange Commission.”
  • Reaffirming SEC’s Core Mission. Chairman Atkins, sworn in on April 21, declared it a “new day at the SEC” and emphasized a return to the agency’s three-part mission: protecting investors; facilitating capital formation; and maintaining fair, orderly, and efficient markets.
  • Establishing Clear Rules for Digital Assets. Atkins stated that a “key priority” will be developing a sensible regulatory framework for crypto-asset markets that establishes clear rules for issuing, custody of and trading crypto assets while continuing to discourage bad actors from violating the law. The SEC will use existing statutory authority to establish fit-for-purpose standards for crypto market participants. He welcomed input from industry participants ahead of the next roundtable on decentralized finance.
  • Promoting Innovation Through Regulation. Atkins emphasized that entrepreneurs across the U.S. and globally are leveraging blockchain to modernize the financial system. He cited expected benefits such as enhanced efficiency, reduced costs, improved transparency, and better risk mitigation.
  • Reorganization. Atkins announced plans to disband the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub), asserting that innovation should be integrated across the agency, rather than confined to a single office. He highlighted the rapid development of distributed ledger technology, including digital assets, artificial intelligence, and machine learning, as necessitating a centralized effort to build understanding at the SEC.

House Financial Services Committee Advances Key Financial Reform Bills in Markup Hearing

• On May 20 and 21, the House Financial Services Committee, under the leadership of Chairman French Hill (R-AR), held a two-day markup hearing to consider and advance a series of legislative proposals aimed at enhancing financial regulation, improving capital formation, and tailoring oversight to institutional risk profiles, including the following:
• • Equal Opportunity for All Investors Act of 2025 (H.R. 3339). Sponsored by Representatives Mike Flood (R-NE), Cleo Fields (D-LA), Michael Lawler (R-NY), Sarah McBride (D-DE), and Shri Thanedar (D-MI), this bipartisan bill would expand the definition of “accredited investor” under Regulation D to include individuals who pass a certification exam established by the SEC. The exam would test for financial sophistication and require demonstrated competency in areas such as different types of securities, disclosure obligations under federal securities laws, corporate governance, unregistered offerings, and conflicts of interest. The bill passed the Committee with a 49-2 vote.
• • Financial Integrity and Regulation Management (FIRM) Act (H.R. 2702). Introduced by Representatives Andy Barr (R-KY), Ritchie Torres (D-NY), Lisa McClaim (R-MI), Frank Lucas (R-OK), and others, the FIRM Act aims to prohibit federal banking agencies from using “reputational risk” when examining, supervising, and regulating depository institutions. The legislation references practices such as “Operation Choke Point” and seeks to ensure that financial institutions are not penalized based on subjective criteria. The bill passed the Committee with a 33-19 vote. The Senate version of the legislation (S.875) advanced out of Committee in March. The legislation has not yet been scheduled for a vote in the House or Senate.

Representatives Emmer and Torres Reintroduce the Blockchain Regulatory Certainty Act to Protect Non-Custodial Developers

• On May 21, Representatives Tom Emmer (R-MN) and Ritchie Torres (D-NY), co-chairs of the Congressional Crypto Caucus, reintroduced the Blockchain Regulatory Certainty Act. The bill aims to clarify that blockchain developers and service providers who do not custody consumer funds (such as miners, validators, wallet developers, and node operators) should not qualify as money transmitters.
  • Clarifying Non-Custodial Roles. The bill seeks to exempt non-custodial blockchain participants from being classified as money transmitters, relieving them of associated licensing requirements.
  • “Control” Defined. “Control” is defined as having “unilateral and independent legal right, authority, or ability to obtain upon demand data sufficient to initiate transactions spending an amount of digital assets, without requiring approval, consent, or discretion of any other third party.”
  • Industry Support. The bill's reintroduction has garnered support from various digital asset industry groups.

Agency Updates

CFTC Commissioner Mersinger Signals US Regulatory Oversight of Perpetual Crypto Futures May Be Imminent

• On May 22, outgoing CFTC Commissioner Summer Mersinger indicated in an interview with Bloomberg TV that crypto perpetual futures contracts could soon launch in the United States. “We’re seeing some applications,” she said, “and I believe we’ll have some of those products trading live very soon,” emphasizing the benefits of bringing such products under U.S. regulatory oversight.
  • Mersinger also reaffirmed that the CFTC is well-positioned to serve as a primary regulator of the crypto markets, citing its existing jurisdiction over futures trading and its enforcement authority.
  • The Commissioner is stepping down from her role at the end of the month, with her final day on May 30. She will become CEO of the Blockchain Association, a digital asset trade association, continuing her involvement in crypto policy from the private sector.