Snapshot of Activity in June

The following events are key, but not comprehensive, events for the month of June.

U.S. Federal Income Tax Developments

IRS extends transitional relief for digital asset broker reporting and backup withholding. On June 12, 2025, the Internal Revenue Service (IRS) released Notice 2025-33 which extends for an additional calendar year the transitional relief initially provided in Notice 2024-56 to brokers required to report digital asset transactions under the Internal Revenue Code (the Code). Previously, such relief only extended through the 2025 calendar year. For an in-depth discussion of Notice 2025-33, please refer to this Vedder Thinking Article.

Industry Developments/Quick-Hits

Circle IPO. On June 5, Circle Internet Group, Inc. (Circle), a cryptocurrency company that manages USD Coin (USDC), the second largest stablecoin, launched its initial public offering (IPO), raising nearly $1.1 billion. After this announcement, Circle’s price per share rose in value by more than 300% from its IPO price per share on its first full day of trading.

SEC Investigations / SEC Developments

SDNY judge rejects the SEC’s and Ripple’s second indicative ruling request. On June 26, the federal district court for the Southern District of New York (SDNY) rejected a second request made by the U.S. Securities and Exchange Commission (SEC) and Ripple Labs Inc. (Ripple) to grant a motion for relief from a final judgment in SEC v. Ripple Labs, Inc., S.D.N.Y. No. 1:20-cv-10832. Judge Analisa Torres of the SDNY stated that Ripple and the SEC “do not have the authority to agree not to be bound by a court’s final judgment” even through a joint motion. This means that the penalty and injunction against institutional sales of the XRP token (but no such bar on programmatic, exchange-based sales of such a token) still stand. 

Final judgment issued in BKCoin suit. On June 4, the federal district court for the Southern District of Florida issued a final judgment against BKCoin Management, LLC’s (BKCoin) cofounder Min Woo “Kevin” Kang in SEC v. BKCoin Management, LLC, S.D. Fla. No. 1:23-cv-20719. The SEC alleged in 2023 that the cryptocurrency investment advisory group and Mr. Kang used approximately $3.6 million of investor funds for payments resembling a Ponzi-scheme, syphoned $371,000 for personal expenses, and falsely represented to investors that funds would be invested in multi-strategy crypto funds. Mr. Kang, without admitting or denying the SEC’s allegations, consented to such final judgment.

Key Remarks from SEC Chair Atkins. Paul Atkins, the Chairman of the SEC, testified before the Senate Appropriations Committee on June 3, 2025, discussing the mission and priorities of the SEC under his term. Regarding digital assets, he made clear that the historical “regulation by enforcement” will be replaced with the traditional practice of notice and rulemaking. Chairman Atkins also noted that the SEC’s fiscal year budget request explicitly includes resources for the Crypto Task Force (CTF), whose mandate is to assist in the development of a regulatory crypto framework.

SEC Director Speaks. Natasha Vij Greiner, Director of the SEC’s Division of Investment Management, spoke at the 2025 Conference on Emerging Trends in Asset Management on June 5, 2025. Director Greiner noted that the total net assets of exchange-traded funds (ETFs) holding cash and derivative crypto assets have increased from $2.1 billion to $12.7 billion between December 2022  and December 2024.

CTF Roundtables – June Roundtable. As part of a five-part series focusing on providing more guidance and clarity to the regulations of digital assets (specifically crypto assets), at the roundtable held on June 9, Chairman Atkins recognized a right to self-custody of one’s own digital assets in a personal digital wallet, characterizing this as a “foundational American value” to self-custody private property. He noted that this will reduce unnecessary transaction costs and enable on-chain activities such as staking. Chairman Atkins also suggested a “conditional exemptive relief framework or ‘innovation exemption’ that would expeditiously allow registrants and non-registrants to bring on-chain products and services to market.” His hope was that such an exemption would lead to the fulfilled vision of America as the “crypto capital of the world.”

DOJ and Other Investigations

Historic cryptocurrency seizure. On June 18, the U.S. Department of Justice (DOJ) filed a civil forfeiture complaint in the U.S. District Court for the District of Columbia seeking over $225 million in cryptocurrency linked to investment fraud and money laundering through “cryptocurrency confidence scams.” The case, led by the DOJ, Federal Bureau of Investigation, and U.S. Secret Service, marks the largest crypto seizure in Secret Service history and involves over 400 suspected victims.

North Korean cryptocurrency scam. On June 5, the DOJ filed a civil forfeiture complaint targeting over $7.74 million in cryptocurrency allegedly laundered by North Korean IT workers who posed as remote developers to obtain illegal employment with U.S. and international companies. The scheme involved fraudulent use of American identities, stablecoin payments, and complex laundering tactics, including “chain hopping,” “token swapping,” and NFT purchases, to obscure the origin of the funds and funnel them back to the North Korean government in violation of U.S. sanctions.

CSBS

CSBS issues money transmitter guidance on virtual currency. On June 26, the Conference of State Bank Supervisors (CSBS) released nonbinding advisory guidance on how to consider virtual currency under the Money Transmission Modernization Act. Under this guidance, virtual currency can count towards a money transmitter’s total assets when calculating tangible net worth. Also, if a currency is held to meet a matching customer obligation in the same currency, such currency may remain in the calculation of total assets.

State Activity

Texas establishes a bitcoin reserve. On June 20, Texas Governor Greg Abbott signed S.B. 21 into law, establishing a publicly funded state-managed Bitcoin reserve

California launches crypto pilot program. The California State Assembly unanimously passed AB 1180 on June 4, 2025, authorizing the Department of Financial Protection and Innovation to launch a pilot program allowing crypto payments beginning July 1, 2026, with oversight and reporting continuing through January 1, 2028. This program will sunset on July 1, 2031. AB 1180 also establishes the Digital Financial Assets Law (DFAL), which imposes recordkeeping requirements, restricts stablecoin usage to those issued by licensed entities or banks, and includes new consumer protection and disclosure provisions.

OECD

OECD releases unofficial consolidated text of the CRS. On June 2, the Organisation for Economic Cooperation and Development (OECD) released an unofficial consolidated text of the Common Reporting Standard (CRS), encompassing reporting requirements for investments in cryptocurrency assets. The new revisions include, among others, that indirect investments in cryptocurrency-assets are generally subject to the CRS and require stricter due diligence and reporting obligations.

Snapshot of Activity in July 

SEC signals openness to novel crypto ETPs and shares disclosure guidance for crypto ETPs. The SEC staff has made explicit previously unwritten, albeit understood, rules around exchange-traded products (ETPs) such as the importance of including authorized participants, agreements with third parties, and custody arrangements in ETP filings. To provide more clarity to such filings, the SEC released a statement for evaluating ETF filings, noting that the risks discussed in the filings should focus on the products themselves, and not just generically to issuers. While the statement does not have legal force or effect, it is advisable to follow the guidance as the SEC seeks to move to a standardized review process. In addition to the SEC’s ETP filings statement, the REX-Osprey Solana + Staking ETF, which launched on July 2, became the first U.S.-listed ETF to allow investors to invest in Solana, and to offer crypto staking awards. This is also a unique approval, as it is the first time the SEC has permitted an ETF registered under the Investment Act of 1940 to hold spot crypto.

Senator Cynthia Lummis (R-WY) introduces digital asset tax legislation in line with September deadline. On July 3, Senator Lummis introduced a standalone digital asset tax reform bill that aims to clarify current tax issues with respect to the treatment of digital assets. Specifically, the bill, if enacted, would apply existing rules under the Code on securities lending, wash sales, and mark-to-mark treatment for dealers to digital assets. In addition, the bill would introduce a $300 de minimis rule with respect to gain from the sale or exchange of digital assets (subject to an overall $5,000 cap), defer taxation of mining and staking rewards until those rewards are sold, and exempt actively traded digital assets from qualified appraisal requirements for charitable contributions. 

IRS revokes final regulations on DeFi Reporting Requirements. On July 10, the IRS and U.S. Department of the Treasury announced that T.D. 10021 (the Final DeFi Regulations), published in December 2024, will be removed from the underlying regulations of the Code. The Final DeFi Regulations would have required digital asset brokers who participate in decentralized finance transaction to report their proceeds to the IRS on Form 1099-DA, but as described in a previous Vedder Thinking Article, the Final DeFi Regulations were nullified by Congress. 

Legislative Events – GENIUS Act. On June 17, the Senate passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The GENIUS Act would establish a regulatory framework for stablecoin payments (i.e., digital assets pegged to the value of another asset, such as the U.S. dollar). The GENIUS Act will task federal financial regulators with approving and overseeing most stablecoin issuers, with smaller tokens having the option of opting into state regulation. On July 17, the GENIUS Act passed in the House.

If you have any questions about this article, please contact Tom Geraghty at tgeraghty@vedderprice.com, Megan L. Jones at mljones@vedderprice.com, Todd Lurie at tlurie@vedderprice.com, Nitya Bhardwaj at nbhardwaj@vedderprice.com, Alexander Madias at amadias@vedderprice.com, or any other Vedder Price attorney with whom you have worked.