Category: TDC Update

The Digital Chamber & Digital Power Network Support “America’s AI Action Plan”

by Neil Humphrey

The Digital Chamber (TDC), in partnership with our affiliate, the Digital Power Network (DPN), welcomes the White House’s release of “America’s AI Action Plan,” a vital step toward securing U.S. leadership in artificial intelligence and critical digital technologies. 

We are encouraged by the Administration’s commitment to fostering innovative and resilient AI ecosystems that advance national security, economic competitiveness, and American values. In particular, the Plan’s focus on public-private collaboration, investment in next-generation infrastructure, and modernization of permitting processes on federal lands echoes the policy priorities championed by both TDC and DPN. 

Supporting a Resilient and Open AI Future 

As the leading voice for the digital asset and blockchain industry, TDC has long advocated for a regulatory environment that supports open, decentralized innovation. Our members are at the forefront of building decentralized AI (DeAI) systems – leveraging blockchain technology to promote transparency, resilience, and public trust across the full AI stack. We applaud the Administration’s recognition of the importance of open and secure digital software and infrastructure, and urge continued support for policies that enable the development and deployment of decentralized AI solutions alongside traditional models. 

Empowering American Energy and Compute 

DPN shares the Administration’s view that modernizing our nation’s digital infrastructure is essential for ensuring American energy dominance, as well as our AI leadership. Streamlined permitting, efficient land use, and enhanced domestic manufacturing capabilities are key to the success of the data center industry and to the broader economy. By embracing the critical role of flexible load operations, such as Bitcoin mining and cloud computing, the U.S. can decentralize critical workloads, alleviate grid pressure, unlock new economic opportunities, and increase the resilience of our digital backbone. 

A Call for Balanced, Forward-Looking Policy 

As America advances its AI leadership, we encourage policymakers to ensure that new laws and regulations remain technology-neutral and embrace the full spectrum of AI architectures. By supporting both decentralized and centralized systems, the U.S. can maximize innovation, enhance security, and democratize participation in the AI economy. 

TDC and DPN stand ready to work alongside the Administration and Congress to shape a future where American ingenuity and democratic values define the next era of artificial intelligence. 

For media inquiries, please contact press@digitalchamber.org.

The Digital Chamber Applauds the President’s Working Group on Digital Assets’ Report

by Neil Humphrey

Last Updated: July 23, 2025

The Digital Chamber (TDC) applauds the President’s Working Group on Digital Assets for finalizing its report to the President with recommendations on how to promote growth of digital assets and blockchain technology innovation in the U.S. 

The Working Group’s Executive Director, Bo Hines, led an impressive cross-government effort to bring the President’s vision for U.S. leadership in digital assets one step closer to reality. By integrating input from regulators, agencies, and industry stakeholders, we are confident this report will help build a clear regulatory foundation. We look forward to the swift approval of these policy recommendations that will ensure America’s continued global leadership in digital asset innovation. 

For media inquiries, please contact press@digitalchamber.org.

The Digital Chamber Strengthens Advisory Board with Five Industry Visionaries

by Mary Grace Cooney

FOR IMMEDIATE RELEASE

Washington, D.C. – July 22, 2025 – The Digital Chamber, the leading voice for the blockchain and digital asset industry, proudly announces the appointment of five distinguished leaders to its Advisory Board. These individuals bring deep expertise across legal, regulatory, financial, and technological sectors, further strengthening the Chamber’s mission to promote the acceptance and use of digital assets and blockchain-based technologies.

The new members are:

  • Lilya Tessler, Partner at Sidley Austin LLP and head of the firm’s FinTech and Blockchain group. Tessler is a seasoned legal advisor on securities and regulatory issues facing financial institutions and emerging technology companies.
  • Richard Teng, Chief Executive Officer of Binance. Teng leads the world’s largest cryptocurrency exchange and brings decades of regulatory and financial experience, including former leadership roles at the Abu Dhabi Global Market and the Monetary Authority of Singapore.
  • Jonathan Steinberg, Founder and Chief Executive Officer of WisdomTree, a financial innovator and a pioneer in bridging traditional finance with digital asset infrastructure.
  • Caitlin Long, Founder and Chief Executive Officer of Custodia Bank. A Wall Street veteran and blockchain advocate, Long founded Custodia to serve as a compliant bridge between digital assets and the U.S. banking system.
  • Sergey Nazarov, Co-Founder of Chainlink. Nazarov is widely recognized for his role in developing decentralized oracle networks that are foundational to smart contract functionality and blockchain interoperability.
  • Rachel Anderika, Head of Global Operations and COO at Anchorage Digital. Anderika is a nationally recognized expert in financial regulation and digital asset compliance, with extensive experience building regulatory frameworks for institutional-grade crypto custody.

It’s an honor to join The Digital Chamber’s Advisory Board at such a pivotal time for the industry,” said Lilya Tessler, Partner at Sidley Austin LLP. “As regulatory frameworks evolve, collaboration between policymakers and innovators is more important than ever. I look forward to contributing to this important mission.”

“It is an honor to join the Advisory Board of The Digital Chamber and we are committed to our shared mission of championing pro-innovation policies to expand inclusive participation in the digital asset economy,” said Binance CEO Richard Teng. “We as industry leaders play important roles to advance the industry and investor interests. I am looking forward to the positive impact we can achieve together, especially as the industry matures and global regulatory frameworks evolve and become more constructive.”

“I’m excited to join The Digital Chamber’s Advisory Board alongside industry leaders who understand both the scale of the opportunity and the responsibility we have in shaping a global financial system that runs on blockchain technology. The Digital Chamber plays a key role in uniting our industry’s innovators with policymakers, and I look forward to advancing the standards and infrastructure that make secure, compliant, and globally-connected digital assets possible.” — Sergey Nazarov, Co-Founder of Chainlink.

“I’m honored to join The Digital Chamber’s Board of Advisors at such a pivotal moment for our industry,” said Rachel Anderika, Head of Global Operations at Anchorage Digital. “This is an important opportunity to help lead the conversation around blockchain policy and ensure the U.S. remains at the forefront of responsible innovation. I look forward to working alongside my peers to advance thoughtful, forward-looking regulation that supports crypto technological progress and market integrity.”

“We are honored to welcome these visionary leaders to our Advisory Board,” said Cody Carbone, Chief Executive Officer of The Digital Chamber. “Each of them brings unparalleled insight and experience to help shape the future of digital assets, promote sound regulation, and advance blockchain innovation globally.”

The expansion of the Advisory Board reflects The Digital Chamber’s continued commitment to uniting stakeholders across industry and government to drive responsible digital asset adoption and policy.

About The Digital Chamber
The Digital Chamber is a non-profit organization committed to promoting blockchain adoption. We envision a fair and inclusive digital and financial ecosystem where everyone has the opportunity to participate. Through targeted education, advocacy, and strategic collaborations with government and industry stakeholders, we drive innovation and shape policies that create a favorable environment for the blockchain technology ecosystem.

For more information, visit www.digitalchamber.org

Media Contact:
Megan Thorpe
megan@digitalchamber.org

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Leading Digital Asset Trade Associations Urge Congress to Pass CLARITY Act

by Nicole Rankin

WASHINGTON, D.C. (July 11, 2025) – Today, Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber – the three leading trade associations representing the U.S. digital asset industry – join together to call on Members of the U.S. House of Representatives to pass the Digital Asset Market Clarity (CLARITY) Act.

In a joint letter addressed to Speaker Mike Johnson and Minority Leader Hakeem Jeffries, the coalition urged swift passage of this bipartisan legislation to establish a comprehensive regulatory framework for digital assets and ensure continued American leadership in blockchain innovation.

“The CLARITY Act represents meaningful progress toward the regulatory certainty needed for our industry to foster innovation and for blockchain technology to thrive in the U.S.,” the letter reads. “Advancing this bipartisan market structure legislation sends a strong message that the U.S. is committed as the global leader in digital assets.”

The coalition emphasized that this legislation is the result of years of industry engagement and bipartisan collaboration in Congress. It offers long-overdue clarity that will allow the U.S. to harness the benefits of digital asset technology while protecting consumers and supporting responsible innovation.

“This moment is the result of years of tireless advocacy, collaboration, and education,” said Blockchain Association CEO Summer Mersinger. “The CLARITY Act reflects the serious commitment from lawmakers to get digital asset regulation right. It provides the essential guardrails our industry needs to continue building responsibly here in the U.S.”

The joint letter commends the leadership of Chairman French Hill and Chairman Glenn ‘GT’ Thompson, as well as the contributions of Ranking Member Angie Craig and Representatives Don Davis, Ritchie Torres, and Josh Gottheimer, who have worked diligently across party lines to advance the legislation through committee.

“The CLARITY Act is a pivotal step forward in ensuring the U.S. continues to lead in the global digital economy,” said Ji Hun Kim, President and Acting CEO of the Crypto Council for Innovation. “We commend Congress for working across the aisle to address the complexities of digital asset markets and create a comprehensive framework that supports both innovation and investor protection.”

As the legislation moves toward a House floor vote, the coalition is also encouraging the Senate to build on this progress and work with industry stakeholders to craft and pass complementary legislation.

“By passing the CLARITY Act, Congress moves one step closer to ending the regulatory uncertainty that has stifled American leadership in this space,” said Cody Carbone, CEO of The Digital Chamber. “This legislative effort affirms the U.S. commitment to responsible innovation and signals to entrepreneurs, developers, and investors that America is open for blockchain business.”

This joint effort underscores the shared priorities of the digital asset industry and marks a significant milestone in the push for thoughtful, bipartisan regulation that fosters U.S. innovation, consumer protection, and global competitiveness.

Defending Innovation: The Digital Chamber Joins Amicus Brief to Protect Non-Custodial Software Developers

by Cody Carbone

The Digital Chamber is proud to join a coalition of leading industry organizations—Solana Policy Institute, DeFi Education Fund, Paradigm, Bitcoin Policy Institute, Blockchain Association, Crypto Council for Innovation, and Uniswap Foundation—in filing an amicus brief in the case of Lewellen v. Bondi. This case carries profound implications for the future of blockchain innovation in the United States.

At the heart of the case lies a critical question: Should non-custodial software developers be treated as “money transmitters” under federal law simply for creating tools that allow others to transact on a peer-to-peer basis? The Department of Justice (DOJ) has taken the position that they should. We strongly disagree.

Non-custodial developers build software; nothing more, nothing less. They do not take custody of, control, or transmit customer funds. Applying federal money transmission laws to these developers is a dangerous overreach that misinterprets both the letter and the spirit of the law.

The DOJ’s position is equivalent to holding car manufacturers responsible for speeding tickets or telecom providers liable for fraud committed over phone calls. This logic not only defies common sense but also threatens to criminalize software development, stifle open-source innovation, and drive blockchain leadership out of the United States.

The amicus brief we joined seeks to make clear that Section 1960 of the federal code, which governs unlicensed money transmission, was never intended to apply to software developers who build non-custodial tools. The case’s outcome could set a precedent impacting not just the digital asset ecosystem, but the broader tech and open-source communities as well.

At The Digital Chamber, we believe that innovation must be protected, and that builders should not face criminal prosecution for creating tools that empower users to control their own assets. A vibrant digital economy depends on clear, fair, and reasonable regulations that distinguish between those who provide infrastructure and those who provide financial services.

We are committed to ensuring that the United States remains a welcoming environment for blockchain development and responsible innovation. This case is a key step in that fight.

You can read the full amicus brief here.

The Digital Chamber’s Statement and Brief of Amicus Curiae in the Samourai Wallet Case, United States v. Rodriguez & Hill

by Neil Humphrey

The Digital Chamber was disappointed that the Southern District of New York declined to accept our amicus curiae brief in the Samourai Wallet prosecution. Courts ordinarily welcome amici briefs, especially where highly technical questions intersect with novel applications of federal criminal law. While we hope that our brief will ultimately be allowed as a combined brief, delivered to the court, we are releasing it today so that stakeholders can evaluate our analysis and understand what is at risk. We encourage regulators, legislators, and fellow industry groups to read it closely and join us in calling for clarity, proportionality, and respect for constitutional due-process limits. 

Why this Matters

  1. FinCEN, not DOJ, sets the line between innovation and illicit finance. For more than a decade, FinCEN has said that only entities that accept and transmit customer funds – or exercise “total independent control” over them – are “money transmitters” subject to Bank Secrecy Act registration. Software developers who never touch user assets are not. That bright-line standard is the foundation on which legitimate wallet, payments, and privacy-enhancement tools have been built.
  2. DOJ is trying to redraw that line by indictment. The government now claims that merely facilitating peer-to-peer transactions can be criminal money transmission, even when the developer lacks custody of the funds. This about-face contradicts FinCEN’s rules, overwhelms due process notice requirements, and risks criminalizing software-as-speech.
  3. The chilling effect is real and immediate. If writing non-custodial code can trigger felony liability, the United States will continue to bleed talent, capital, and strategic advantage to friendlier jurisdictions – a trend already reflected in the 51% drop in the U.S. share of blockchain developers since 2015.

Substance of the Brief

Samourai’s code never controlled user Bitcoin and therefore cannot be a “money transmitting business” under 18 U.S.C. § 1960; criminal liability built on a brand-new interpretation of FinCEN’s regulations violates both the statute’s text and basic principles of fair notice.

The Path Forward

  • Courts should dismiss Count II and reaffirm that custody, not code, triggers money-transmitter status.
  • Congress should codify market structure through the CLARITY Act to eliminate regulatory whiplash and preserve the United States as a hub for responsible digital-asset innovation.
  • FinCEN should restate, publicly and unequivocally, that software alone is not money transmission, ensuring that developers operate under clear, consistent rules rather than shifting prosecutorial theories.

Commitment to Constructive Engagement

The Digital Chamber is a non-profit trade organization committed to promoting blockchain adoption. We envision a fair and inclusive digital and financial ecosystem where everyone has the opportunity to participate. Access to digital assets is not merely a technological advancement but a fundamental human right, crucial for economic and social empowerment. Through targeted education, advocacy, and strategic collaborations with government and industry stakeholders, we drive innovation and shape policies that create a favorable environment for the blockchain technology ecosystem.

For media inquiries, please contact press@digitalchamber.org.

The Blockchain Regulatory Certainty Act (BRCA) Joint Statement

by Mary Grace Cooney

Last Updated: June 5, 2025

We are united in our commitment to protecting the software developers building our financial future. Today, DeFi Education Fund, Coin Center, Solana Policy Institute, The Digital Chamber, Blockchain Association, Crypto Council for Innovation, and Bitcoin Policy Institute speak to Congress with one voice: include the bipartisan Blockchain Regulatory Certainty Act (BRCA) in market structure legislation. 

As much-needed digital asset regulation develops in the United States, it is critically important to remember that developers creating peer-to-peer, non-custodial software and the infrastructure providers who enable decentralized networks have little in common with traditional financial institutions and should not be treated as such. The BRCA acknowledges this reality and ensures that when software developers or blockchain service providers do not control or custody customer funds, they are not inappropriately required to register as “money transmitting businesses” or liable for failing to do so. 

Thank you to Rep. Tom Emmer, Rep. Ritchie Torres, and their staff for their leadership on this issue. We strongly encourage the House of Representatives to include the BRCA in the Digital Asset Market Clarity Act of 2025, and ensure that innovators across America can safely build financial infrastructure here – at home. 

The Corporate Alternative Minimum Tax (CAMT) The Digital Chamber & Digital Power Network’s Opposition

by Neil Humphrey

Last Updated: June 4, 2025

What is CAMT?

The Corporate Alternative Minimum Tax (CAMT), created by the Inflation Reduction Act of 2022, sets a 15% minimum tax for large corporations that earn more than $1 billion per year on average. Instead of relying on the traditional tax system, which allows companies to lower their taxable income through deductions and credits, the CAMT is based on the income they report to investors in their financial statements. This new system was designed to ensure that highly profitable companies can’t reduce their tax bills to near-zero using accounting strategies, and that they contribute a baseline amount in federal taxes each year.

How Did CAMT Come to Include Unrealized Crypto Gains?

In December 2023, the Financial Accounting Standards Board (FASB) updated its rules to require companies to report the fair market value of digital assets on their financial statements.

This shift means that unrealized gains and losses must now be reflected in a company’s reported income, even if those assets haven’t been sold. Because CAMT calculations are tied to this financial statement income, these paper gains can now trigger real tax obligations. As a result, companies with significant crypto holdings may find themselves liable for taxes on value they have not yet realized in cash, raising concerns about liquidity, fairness, and unintended consequences for digital asset innovation.

Who is Affected?

The intersection of CAMT and the new accounting standards primarily impacts large corporations with significant digital asset holdings. These companies may face substantial tax bills based on paper gains, without having liquidated the assets to generate cash. This scenario raises concerns about liquidity and financial planning, especially in volatile markets.

Legislative Response

Senators Lummis (R-WY) and Moreno (R-OH) have called on the Treasury to issue guidance that excludes unrealized crypto gains from CAMT calculations. They argue that taxing unrealized gains is inconsistent with traditional tax principles and could hinder innovation in the digital asset space. The senators suggest that the Treasury has the authority to adjust CAMT regulations to prevent unintended consequences and maintain a fair tax environment for U.S. companies.

Conclusion

The application of CAMT to unrealized cryptocurrency gains has sparked debate over tax fairness and economic competitiveness. As the Treasury considers potential adjustments, stakeholders await clarity on how digital assets will be treated under the evolving tax landscape.

The Digital Chamber and Digital Power Network oppose CAMT and urge for its swift repeal.

If you have any questions, please reach out to Policy@digitalchamber.org

The Digital Chamber Files CFTC Comment Letters on Perpetual Derivatives and 24/7 Trading

by Cody Carbone

On May 21, 2025, The Digital Chamber (TDC) submitted two comprehensive comment letters to the Commodity Futures Trading Commission (CFTC). The filings respond to the Commission’s April 21 requests for comment on (1) the regulatory treatment of perpetual derivatives and (2) the feasibility of 24/7 trading and clearing in CFTC-regulated markets. Together, the letters urge a modern, principles-based approach that embraces innovation while preserving market integrity and customer protection.

1. Perpetual Derivatives: Enabling Modern Risk-Management Tools

Why it matters
Perpetual derivatives—or “perps”—have become the most liquid crypto-linked futures products globally. They allow investors to maintain continuous exposure to an underlying asset without the need to roll contracts every month, mirroring the 24/7 nature of the spot crypto markets.

Key points from TDC’s letter

Recommendation
Working definitionA perp is a margined contract with no fixed expiration, priced to spot via a funding-rate mechanism.
BenefitsEnhances price discovery, offers round-the-clock hedging, and lowers rollover costs for both retail and institutional traders.
Risk controlsMargin limits, funding-rate caps, circuit breakers, and real-time surveillance should be standard.
DisclosuresAdditional language on funding-rate volatility, leverage, and liquidity dynamics is needed in customer risk documents.
Regulatory clarityThe CFTC should clarify whether perps are swaps, futures, or warrant a bespoke classification—especially for DeFi-native implementations.

2. 24/7 Trading & Clearing: Aligning Regulation With Reality

Why it matters
Crypto spot markets operate nonstop. Extending that model to regulated derivatives would level the playing field for U.S. platforms and traders, unlock new liquidity, and reduce weekend “gap risk.”

Key points from TDC’s letter

Recommendation
Operational readinessDCMs, SEFs, and DCOs should adopt active-active architecture, cloud-native deployments, and geo-redundant hosting to guarantee uptime.
Automated risk managementReal-time margin checks, auto-liquidation with customer alerts, and continuous collateral valuation are essential for safety.
Updated customer disclosuresRegulation 1.55 risk statements should spell out off-hours volatility, liquidity conditions, and banking-rail constraints.
Modernized rule setCFTC should allow regulated stablecoins or tokenized fiat as acceptable collateral and revisit capital-reporting timelines that assume bank-hour settlement.
Market surveillanceAI/ML-driven tools that detect spoofing and wash trades must run continuously, with standardized data feeds across venues.

These submissions reinforce The Digital Chamber’s core mission: championing a regulatory environment that allows the U.S. to remain the global leader in digital-asset innovation while safeguarding market participants. We look forward to collaborating with the CFTC and other stakeholders to turn these proposals into actionable, forward-looking policy.

CFPB Withdraws Flawed Rule Impacting Self-Hosted Wallets and Blockchain Gaming

by Nicole Rankin

The Consumer Financial Protection Bureau recently withdrew its interpretive rule on the Electronic Fund Transfer Act and its related Regulation E that would have brought serious implications to self-hosted wallets and blockchain gaming platforms. 

TDC’s Gaming Workstream, in effort with our partners at the Blockchain Game Alliance, submitted comments to the CFPB in March outlining how the rule, which miscategorized self-hosted wallets as “financial accounts” operated by “financial institutions” was technically incorrect and would place onerous and undue regulatory burdens on self-hosted wallet providers and gaming platforms. If this miscategorization had been implemented, self-hosted wallet providers and blockchain gaming platforms would have been subject to significant KYC requirements and counterparty transaction data collection and reporting practices. 

Self-hosted wallets don’t collect counterparty information, and blockchain gaming platforms — which standardize a “bring your own wallet” approach — do not collect or have access to this data either. In practice, the rule misunderstood how this setup and the technology behind self-custody function and would have applied rules meant specifically for financial intermediaries to non-intermediated technology providers, giving wallet providers and gaming platforms no way to comply. We are pleased to see the CFPB now recognizes this key distinction. 

See the announcement here.

If you have any questions, please reach out to policy@digitalchamber.org