FinCEN issued a finding and notice of proposed rulemaking calling out Huione Group as a primary money laundering concern and proposing to block it from the US banking system due to its alleged laundering of $4 billion worth of crypto scam and other illicit proceeds. According to a FinCEN release, Huione Group serves as "a critical node" for laundering funds from heists carried out by North Korea and transnational criminal organizations in Southeast Asia perpetrating convertible virtual currency (CVC) scams, known as "pig butchering" scams.

The SEC moved to drop its suit over crypto influencer Ian Balina’s alleged promotion of SPRK tokens. The parties filed a joint stipulation to dismiss the suit that accused Balina of promoting the SPRK tokens without disclosing that he had entered into a compensation agreement with the token's creator, crypto company Sparkster Ltd. The motion does not explicitly say why the SEC moved to drop the suit.

CIA Deputy Director Michael Ellis said in an interview that BTC and other cryptocurrencies are “another tool in the toolbox” the US can use to fight its adversaries. Ellis noted that crypto is "another area of technological competition where we need to make sure the United States is very well positioned against China and other adversaries." He added that crypto can also be a target, highlighting how bad actors have used crypto to launder funds.

The Treasury Department published a report on stablecoins and their potential impact on bank deposits, US Treasuries, monetary supply, and existing market structures. The report highlights four key takeaways: 1) stablecoins could grow to around $2 trillion by 2030 in response to continued market and regulatory breakthroughs, 2) the stablecoin market is primarily comprised of USD-pegged stablecoins, driving near-term focus on potential US regulatory frameworks and the accelerated impact legislation could have on stablecoin growth, 3) stablecoins could disrupt traditional banks by drawing away deposits, but they also present chances for banks and financial institutions to create innovative services, and 4) the ultimate design and adoption of stablecoins will drive the magnitude of impact they have to the traditional banking system.

Rep. Lance Gooden (R-TX) wrote a letter to the General Services Administration (GSA), calling on GSA to install crypto ATMs within federal buildings across the country. In the letter, Gooden notes the rapid evolution of financial technology, arguing that, "By providing access to cryptocurrency ATMs in federal buildings, we have the unique opportunity to ensure that our public spaces reflect this rapidly evolving trend and support the financial needs of a diverse and growing consumer base." Gooden is requesting that GSA initiate the process to explore the feasibility of such an initiative.

Sen. Elizabeth Warren (D-MA) reacted to news that $2 billion worth of a stablecoin issued by the Trump family’s World Liberty Financial was used to fund an investment in Binance by Abu Dhabi’s MGX, calling it “corruption” that “no senator should support.” She called for changes to the GENIUS Act to prevent this kind of activity. Sen. Richard Blumenthal (D-CT) also tweeted about the report, calling it a “catastrophic abuse of power.” The transaction links a company controlled by President Trump's famiy with a crypto exchange that pleaded guilty to AML and US sanctions violations less than two years ago, as well as an investment fund overseen by the brother of the president of the UAE.

Sens. Bill Hagerty (R-TN), Cynthia Lummis (R-WY), and Senate Banking Committee Chair Tim Scott (R-SC) released an updated version of the GENIUS Act ahead of plans to hold a floor vote on the bill. The new version includes changes related to anti-money laundering and consumer protection provisions that Republicans hope will attract support from more Democrats. Other changes surround the certification of state regulatory regimes and foreign issuer enforcement mechanisms. The bill's core framework remains intact.

Senate Majority Leader John Thune (R-SD) initiated the process to expedite a Senate floor vote on the GENIUS Act. Senate Banking Committee Chair Tim Scott (R-SC) and Sens. Cynthia Lummis (R-WY) and Bill Hagerty (R-TN) released a statement praising the move. The bill would establish a clear regulatory framework for stablecoins. Sen. Lummis said in a press release that "President Trump and Leader Thune's decision to bring this important legislation to the floor demonstrates their commitment to maintaining US leadership in financial services while keeping digital asset companies and jobs onshore."

The Senate Commerce Committee advanced the Deploying American Blockchains Act (S. 1492), which would create a National Blockchain Deployment Advisory Committee at the Commerce Department to advise the president on blockchain and applications built on distributed ledger technologies. Sens. Bernie Moreno (R-OH), Lisa Blunt Rochester (D-DE), and Tim Sheehy (R-MT) introduced the bill in April.