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On November 18, the OCC issued Interpretive Letter 1186 confirming that a national bank may, as an activity incidental to the business of banking, pay crypto-asset network fees to support otherwise permissible banking activities. The letter also states that a bank may hold, as principal, limited amounts of crypto-assets on its balance sheet when needed to cover these fees. In addition, the OCC confirmed that banks may hold small quantities of crypto-assets as principal for purposes of testing crypto-asset platforms.Continue Reading OCC Confirms Bank Authority to Hold Crypto-Assets as Principal for Paying Network Fees

On November 12, SEC Chair Paul Atkins delivered remarks at the Federal Reserve Bank of Philadelphia describing the SEC’s direction for digital asset oversight under “Project Crypto.” The speech previewed a forthcoming “token taxonomy” grounded in the Supreme Court’s Howey investment-contract analysis and emphasized that most tokens currently trading are, in his view, not securities under existing law.Continue Reading SEC Chair Outlines “Project Crypto” Framework for Digital Asset Regulation

On October 30, the California DFPI announced a consent order against a Nevada-based crypto kiosk operator for alleged violations of the Digital Financial Assets Law and the California Consumer Financial Protection Law. The action follows a DFPI investigation into widespread noncompliance among crypto ATM operators, which the agency has identified as a growing consumer-protection concern.Continue Reading DFPI Fines Kiosk Operator $675,000 for Alleged Violations of the Digital Financial Assets Law

On October 6, the DFPI issued a Desist and Refrain Order against a digital-asset ATM operator for alleged violations of the California Digital Financial Assets Law (DFAL) and the California Consumer Financial Protection Law (CCFPL). The DFPI alleged that the company, which operates cryptocurrency kiosks throughout Northern California, repeatedly accepted and transmitted cash in excess of statutory transaction limits, charged unlawful fees, and failed to provide required disclosures and receipts to consumers in connection with the purchase and sale of digital assets.Continue Reading DFPI Orders Crypto Kiosk Operator to Cease Operations for Alleged Violations of Digital Financial Assets Law

On September 26, Arizona Attorney General Kris Mayes announced that the new Cryptocurrency Kiosk License Fraud Prevention Law took effect, establishing new safeguards for consumers using cryptocurrency ATMs. The law, enacted through House Bill 2387, amends the state’s money transmission statutes to require enhanced disclosures, transaction limits, and refund rights for fraud victims.Continue Reading Arizona Cryptocurrency Kiosk Law Takes Effect

On October 8, the payment processor and North Dakota’s only state-owned bank announced the “Roughrider Coin,” the state’s first stablecoin. The initiative will make Roughrider Coin available to North Dakota banks and credit unions in 2026 as part of the state’s effort to modernize interbank and merchant payments.Continue Reading North Dakota Launches State’s First Stablecoin

On September 17, the New York Department of Financial Services (NYDFS) issued a notice advising all state-chartered banks, credit unions, and foreign bank branches licensed in New York to consider integrating blockchain analytics into their compliance and risk frameworks when engaging in virtual currency-related activity. The notice builds on the Department’s 2022 blockchain analytics guidance for virtual currency licensees and its prior requirement that banks seek approval before launching new or significantly different virtual currency activities.Continue Reading NYDFS Directs Banks to Incorporate Blockchain Analytics Into Virtual Currency Risk Programs

On September 8, the D.C. Attorney General filed a lawsuit in D.C. Superior Court against a crypto ATM operator alleging violations of the Consumer Protection Procedures Act and the Abuse, Neglect, and Financial Exploitation of Vulnerable Adults and the Elderly Act. The suit also alleges unlicensed money transmission activity in the District.Continue Reading D.C. Attorney General Sues Crypto ATM Operator for Alleged CPPA and Elder-Exploitation Violations

On August 18, Illinois Governor JB Pritzker announced the signing of two measures establishing comprehensive digital asset safeguards. The Digital Assets and Consumer Protection Act (SB 1797) and the Digital Asset Kiosk Act (SB 2319) create a licensing and supervisory framework for digital asset businesses and impose specific protections for cryptocurrency kiosk users.Continue Reading Illinois Enacts Digital Asset Consumer Protection and Kiosk Laws

On August 19, the Wyoming Stable Token Commission announced the launch of the Frontier Stable Token (FRNT), making Wyoming the first public entity in the United States to issue a state-backed, blockchain-based stablecoin. The program is authorized under the Wyoming Stable Token Act and chaired by Governor Mark Gordon.Continue Reading Wyoming Launches First State-Issued Stable Token

On August 15, the Federal Reserve Board announced that it has rescinded its 2023 supervisory letter establishing the Novel Activities Supervision Program (NASP). The program had focused on overseeing banks’ involvement in crypto assets, distributed ledger technology, and fintech partnerships. The Fed explained that it has “strengthened its understanding” of these activities and will return to supervising them through the standard supervisory process.Continue Reading Federal Reserve Ends Novel Activities Supervision Program for Crypto and Fintech Oversight