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U.S. Senator Hagerty introduced the Bill for the U.S. Stablecoins (GENIUS) Act, in collaboration with co-sponsor Senators Tim Scott, Kirsten Gillibrand (Democrat) and Cynthia Lummis, aimed at regulating stablecoins by establishing clear issuance procedures and designating federal and state regulators based on the issuer's size. For example, the Bill allows state regulators to supervise payment stablecoins of under $10 billion. Reserve requirements would limit the type of backing collateral to commercial bank deposits, short-term Treasuries, repo and reverse repo involving short-term Treasuries, similar money market funds and central bank reserve deposits. https://www.hagerty.senate.gov/wp-content/uploads/2025/02/GENIUS-Act.pdf

The Banque de France carried out two transactions involving tokenised assets: a reverse repurchase agreement with Société Générale and an outright securities purchase with BNP Paribas. Société Générale pledged bonds issued in 2020 on the public blockchain Ethereum as collateral, in exchange for CBDC tokens issued by the Banque de France on the DL3S interoperability solution (distributed ledger). Both parties used the technological capabilities of the Société Générale Forge platform, which acted as registrar for the issuer. The Banque de France purchased a tokenised euro area sovereign bond in the secondary market, and successfully tested two corporate actions - coupon payment and redemption - both of which were settled on the Banque de France DL3S platform. BNPP's securities business acted as subscriber and registrar for the Banque de France, operating on the Neobonds blockchain.

The New York Federal Reserve Bank (NY Fed) published an article that discusses the evolution and growth of stablecoins, noting their significant increase in market capitalization since 2019, primarily concentrated in Tether and USDCoin. It highlights a shift in collateral towards U.S. Treasury securities and reverse repurchase agreements and finds that stablecoins, especially riskier ones, experience capital inflows following large increases in bitcoin prices, reflecting a link between stablecoin demand and overall crypto ecosystem activity, which updates previous findings about outflows during negative bitcoin price shocks for riskier stablecoins.

The U.S. Federal Deposit Insurance Corp. (FDIC) will no longer instruct banks to get prior sign-off before they engage in crypto-related activities - a standard that was set in 2022 that effectively blocked FDIC-supervised institutions from engaging in such activities as they waited for approvals that never came. Earlier in March 2025, the Office of the Comptroller of the Currency (OCC) rescinded its similar 2022 guidance. https://www.fdic.gov/news/financial-institution-letters/2025/fdic-clarifies-process-banks-engage-crypto-related https://www.occ.gov/news-issuances/news-releases/2025/nr-occ-2025-16.html

Valor Economico is reporting that some of the firms involved in the Banco Central do Brasil Drex (BCB) wholesale central bank digital currency (CBDC) project are reducing resource commitments to it. This is reportedly due to frustrations with the BCB's privacy requirements to hide transaction data from all the banks involved except the one that is executing it, while allowing the BCB to see everything and be able to reverse transaction with a court order to that effect. All this must be achieved without harming the digital currency's programmability and composability allowed by its distributed ledger technology (DLT) based platform.

On March 21, 2025, the U.S. Treasury delisted Ethereum coin mixing service Tornado Cash from its list of parties sanctioned by the Office of Foreign Assets Control (OFAC) reversing course after first blacklisting the service in 2022. The removal was actually a bit tardy because the Treasury had been required to remove it by March 17, 2025. In November, a fifth circuit judge ruled that the Treasury had overstepped its authority by targeting Tornado Cash's smart contracts. The judge wrote that autonomous software cannot be classified as property and therefore cannot be sanctioned. Subsequently, Department of Justice prosecutors asked for and given until March 17, 2025 to remove Tornado Cash from the OFAC black list.

The U.S. Court of Appeals for the Second Circuit revived the Office of the Comptroller of the Currency's (OCC) controversial special-purpose national bank charter that had been challenged by the New York Department of Financial Services (NYDFS) and effectively suspended by a ruling from the U.S. District Court for the Southern District of New York.

"A lucrative arbitrage opportunity formed the foundation of much of the cryptocurrency industry. When it turned bad, it brought the whole house of cards down with it."