In This Newsletter

Michael Piwowar on Capitol Hill
Crypto Legislative Momentum
FinTech IPO Boom
 

Michael Piwowar Testifies Before Congress on Digital Assets Regulation

Earlier this month, Milken Institute Executive Vice President Michael Piwowar testified before the House Agriculture Committee during a hearing titled “American Innovation and the Future of Digital Assets.” Drawing on his experience as a former Securities and Exchange Commission (SEC) commissioner and acting chairman, Piwowar made the case for applying SEC consumer protection principles, such as disclosure, investor protection, and fair dealing, to the evolving digital assets ecosystem.

Piwowar’s remarks supported the bipartisan Digital Asset Market Clarity Act of 2025, highlighting its approach to closing jurisdictional gaps between the SEC and Commodity Futures Trading Commission (CFTC), enhancing disclosure for primary digital asset offerings, and extending investor protections consistent with traditional securities.

He also recommended self-effectuating statutory language to streamline implementation and emphasized the need to incorporate SEC staff expertise into the legislative process, referencing joint rule-making challenges from Dodd-Frank as a cautionary tale.

Other witnesses included FinTech Advisory Council Member Avery Ching, CEO and cofounder, Aptos Labs; Ryne Miller, Lowenstein Sandler LLP; and Chelsea E. Pizzola, Willkie Farr & Gallagher LLP.

Crypto Legislation Gathers Momentum in Congress

Crypto legislation continues to advance across multiple fronts in both chambers. Several key bills have moved through committee or procedural floor votes, laying the foundation for a more structured digital asset market:

• CLARITY Act of 2025: The bill advanced out of both the House Agriculture and Financial Services Committees with strong bipartisan support. It establishes regulatory frameworks and responsibilities for digital commodities and investment contract assets and empowers the SEC to tailor disclosure and custody rules for digital assets. It also directs the SEC, CFTC, and Government Accountability Office to conduct studies on DeFi, nonfungible tokens, tokenized securities, and financial literacy. 

• GENIUS Act: This Senate-led bill is focused on stablecoin regulation, reserve transparency, and licensing. It cleared the Senate Banking Committee and is expected to reach a floor vote this summer. If passed, the Act will need to be reconciled with the House’s STABLE Act, which passed committee this spring. Key differences remain between the two bills on issues including federal preemption, transaction-monitoring processes, know-your-customer requirements, and consumer protections.

This legislative momentum comes as more federal financial regulatory leaders are confirmed by the Senate. The Senate Committee on Agriculture held its first public hearing on confirming Brian Quintenz as chair of the CFTC this month. Recently confirmed SEC Chair Paul Atkins, speaking at a Crypto Task Force roundtable, framed the current moment as “a test of how well we can align decentralized innovation with a rules-based financial system.” He emphasized that the SEC’s role is “not to fight the future, but to ensure the integrity of that future for investors.”

FinTech IPO Boom

After several years of an initial public offering (IPO) drought driven by geopolitical uncertainty and monetary tightening, FinTechs are leading the return to public markets. Although buy now–pay later leader Klarna had to walk back its IPO plans in the face of market volatility driven by trade policy, three high-profile listings are reshaping investor sentiment:

• Circle completed its NYSE debut in early June, raising over $1.1 billion and closing at nearly triple its IPO price. The listing solidified the firm’s role as a core player in the stablecoin ecosystem amid ongoing regulatory attention.

• Chime went public on Nasdaq in early June, pricing at $27 and closing above $39 on day one. Backed by strong consumer revenue and partner bank models, Chime is now valued at around $13 billion.

• eToro launched its IPO in May with a $52 share price and a post-IPO valuation north of $5 billion. Known for its social trading platform, the company has benefited from growing interest in fractional investing and crypto exposure.

Additional listings from crypto exchanges, such as Bullish and Gemini, and FinTechs, including Klarna, are expected later this year. The IPO wave marks a turning point in FinTech capital formation and investor risk appetite, catalyzed in part by improving clarity around digital assets regulation.