Senate Banking Chair Meets Crypto Leaders as Market Structure Markup Delayed
The meeting takes the place of a formal markup hearing, rescheduled for early 2026
Welcome to the Wednesday edition of the Crypto In America newsletter!
What you’ll read: A crypto market structure meeting with industry leaders is taking place on Capitol Hill, Custodia isn’t done fighting the Fed, the FDIC kicks off GENIUS rulemaking, top stories this week, and the SoFi CEO joins the podcast.
In lieu of a market structure markup, Senate Banking Committee Chair Tim Scott (R-SC) and his staff is set to meet with a handful of crypto industry leaders on Capitol Hill this morning to review the latest text the committee and their Democrat colleagues have been working on.
The meeting, first reported by Politico, is expected to include representatives from leading crypto firms such as Coinbase, Kraken, Chainlink, a16z, and Ripple, Crypto In America has learned. At least one industry trade association is also expected to attend.
The update follows confirmation from a committee spokesperson on Monday that the Banking Committee will not hold a hearing to mark up the text before leaving for Christmas break tomorrow, instead planning to track it for early 2026.
It remains unclear whether this version of the text will be released for wider industry review or if further changes will be made following today’s meeting.
Custodia Seeks Rehearing in Fight Over Fed Master Account
Wyoming crypto bank Custodia is not ready to throw in the towel in its fight to secure a Federal Reserve master account. On Monday, the bank filed a petition for rehearing en banc, asking the full Tenth Circuit to reconsider its October decision that sided with the Fed in denying Custodia a master account.
The petition argues the original panel of three judges misinterpreted the Monetary Control Act, which Custodia says gives any eligible bank a right to a master account, and instead improperly grants the Fed “unreviewable discretion” over access to its payments rails. The bank contends this interpretation undermines state banking authority and raises serious constitutional concerns under Article II, which establishes the executive branch and presidential powers.
While it’s unclear whether the full Circuit will agree to hear the case, it marks another chapter in Custodia’s ongoing legal battle with the central bank, a fight it’s been waging since 2022.
In the meantime, Governor Christopher Waller, who is set to interview with President Trump later today for the role of Fed Chair, has proposed granting companies like Custodia access to a so-called “skinny” master account, a limited version of a full master account that would allow crypto firms to participate in the payments system with reduced risk.
Guidelines for how the Fed plans to implement this new kind of license are expected in the new year.
FDIC Kicks Off GENIUS Rulemaking Season
The FDIC’s Board of Governors voted Tuesday morning to open a 60-day public comment period on its process for banks seeking to issue stablecoins through their subsidiaries.
The proposal lays out how insured banks can apply, how the agency will review applications, and what appeal options exist for those that are rejected. Acting Chair Travis Hill, who could be confirmed by the Senate as soon as this week, said this rulemaking will be followed in the coming months by a more detailed framework establishing the FDIC’s capital, liquidity, and risk management requirements for stablecoin issuers.
It marks the first official rulemaking proposal stemming from the GENIUS Act, the landmark law passed this summer that establishes a regulatory framework for stablecoins in the U.S., and it’s expected to prompt similar action from other regulators empowered by the bill.
Kyle Hauptmann, Chair of the National Credit Union Administration, revealed that his agency will be rolling out a similar rulemaking “shortly.”
SoFi’s Crypto Comeback: CEO Anthony Noto on Stablecoin Launch and Banking Strategy
This week on the pod, we’re joined by Anthony Noto, CEO of fintech bank SoFi, who shares an exclusive look at the mechanics behind the firm’s new stablecoin, SoFi USD, set to launch in the coming days.
After being forced to exit crypto in 2023 to secure its national bank charter, SoFi has re-entered the market as the first nationally chartered U.S. bank to offer in-app crypto trading to customers. Anthony explains why the pause was necessary and why SoFi now believes it is well positioned to fill the gap left by the now-defunct crypto banks Signature and Silvergate.
We discuss the rush of crypto firms seeking trust charters, and Anthony explains why he believes those licenses fall short of insured depository institutions, arguing that true safety, soundness, and scalability require FDIC-insured deposits, access to a Fed master account, and zero credit or duration risk on reserves.
He also shares insights on the open banking debate, how macro conditions and credit trends are shaping the company’s outlook, and an update on SoFi Stadium.
Watch this episode on all platforms here.
Midweek Recap
Here’s a look at some of the stories making headlines so far this week:
Stani Kulechov, founder of decentralized lending protocol Aave, announced that the SEC has concluded its four-year investigation into the entity with no charges recommended.
A delayed November jobs report showed that the U.S. unemployment rate rose to 4.6%, its highest since September 2021.
Nasdaq plans to extend trading to 23 hours a day, five days a week, seeking approval to meet growing international demand for overnight access to U.S. stocks.
Visa is launching an advisory practice to help institutions develop stablecoin strategies.
PayPal announced that it filed applications with the Utah Department of Financial Institutions and the FDIC to create PayPal Bank.
JPMorgan has launched its first tokenized money market fund, MONY, on Ethereum.
Crypto wallet provider Exodus is partnering with MoonPay to launch a fully reserved, USD-backed stablecoin.
President Trump says he will consider a pardon for Keonne Rodriguez, the founder of the privacy-focused Bitcoin wallet Samourai.
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