Illinois Introduces Track on Crypto Transfers; FinCEN Issues New Proposed Rule on Customer Identification Under GENIUS Act; Congressional Hearings; and more

FinCEN Issues New Proposed Rule on Customer Identification Under the GENIUS 

On June 22, 2026, FinCEN, the Federal Reserve, the Office of the Comptroller of Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Association issued a Notice of Proposed Rulemaking (“NPRM”) on the implementation of customer identification program (“CIP”) requirements outlined in the GENIUS Act. Under the NPRM, Permitted Payment Stablecoin Issuers (“PPSIs”) would be required to collect the name, date of birth, address, and an identification number for any new account opened with the PPSI. 

As drafted, the CIP requirements would apply to only “primary market” interactions, such as when a PPSI issues or redeems a stablecoin on behalf of an individual. The current construction does not include secondary market activity, e.g., the purchase of stablecoins from third-party exchanges or peer-to-peer transactions. However, the NPRM requests public comment on whether customer identification should be extended to secondary markets, a potential concern for DeFi users and developers. 

Comments on the proposed CIP framework are due on August 21, 2026. You can read the full NPRM here. 

DEF Launches OPSeC with Security Alliance and Asymmetric Research

On June 23, 2026, DEF announced OPSeC—Open Protocol Security Coalition—a new industry-wide initiative in partnership with Security Alliance (SEAL) and Asymmetric Research to promote operational security across blockchain ecosystems and onchain software. 

We invite builders, developers, and investors that are committed to strengthening onchain security to pledge to join us. If you’re reading this and are curious to learn more about OPSeC, please email info@defieducationfund.org.   

You can read the press release announcing OPSeC here.

Senate Banking Committee Holds ‘Affordability’ Hearing

On June 23, 2026, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing on the “Affordability Agenda.” The hearing focused on the high cost of housing, access to credit, and innovations in the digital asset space that may help to increase affordability. Notably, in his opening statement, Chairman Tim Scott (R-SC) applauded the GENIUS Act’s impact on “fueling financial innovation in America and creating economic opportunity” and encouraged the Committee to push the Clarity Act over the finish line. 

Cody Carbone, CEO of The Digital Chamber, highlighted the important role that crypto can play in tackling affordability issues: “digital assets and blockchain are the first real chance in decades to help people move the money they’ve earned more easily to make sending money as simple and efficient as sending an email…” 

You can listen to the full hearing here. 

HCFS Holds ‘Future of Payments’ and ‘Wall Street to Main Street’ Hearings

This week, the House Committee on Financial Services (HCFS) held two hearings on the future of payments and investments in America. 

On June 24, 2026, the full committee discussed the challenges of the current payment system, including fractured oversight and the bank charter process for digital assets. The Committee and witnesses engaged in significant debate regarding “skinny” master accounts with the Federal Reserve, and the possibility of providing eligible payment-focused providers (e.g., stablecoin issuers) with access to Fed-operated infrastructure. You can listen to the full hearing on the future of payments here. 

On June 25, 2026, the Subcommittee on Capital Markets heard testimony on shifts in the managed funds landscape, SEC proposals on reducing disclosure obligations, and the role of legislative changes in providing everyday Americans access to capital markets. Of note, Rep. Steil (R-WI), Chairman of the Subcommittee on Digital Assets, credited digital assets for lowering costs for consumers. You can listen to the full hearing on the future of investment here. 

DEF’s CCO Jenn Rosenthal Hosts Developer Panel at Solana Policy Institute’s Chicago Summit 

On June 16, 2026, DEF’s Chief Communications Officer Jenn Rosenthal moderated a panel about building onchain infrastructure at the Solana Policy Institute’s Chicago Summit: Washington x Wall Street. Jenn spoke with a panel of developers on how onchain innovations are redefining traditional finance, the current state of U.S. policy and its potential impact on innovating in the U.S., and what developers are thinking about related to future tech trends and innovations. 

Illinois Introduces Track on Crypto Transfers 

On June 16, 2026, Illinois Governor JB Pritzker signed S.B.3019, as part of the state’s 2027 budget, which requires brokers and exchanges to impose taxes on all crypto transfers—including network fees. In other words, beginning on January 1, 2027, Illinois will impose a new tax of 0.2% on all crypto transfers.

Reporting requirements  fall on brokers operating in Illinois and on out-of-state brokers that meet certain requirements. The bill includes strict enforcement mechanisms: failure to appropriately register or comply with recordkeeping requirements will expose brokers to criminal liability. 

The bill has rightfully been met with sharp criticism for its far-reaching and punitive nature. S.B.3019 conspicuously removes DeFi-specific protections included in digital asset legislation passed by the state assembly earlier this year. 

As Max Levally, CLO at GFX Labs, explained in a recent Substack post: “Illinois taxes digital-asset activity while leaving functionally equivalent banking, brokerage, payment, custody, and settlement activity untouched…The statutory choices show that Illinois knew how to spare DeFi, software development, validators, nodes, and peer-to-peer activity because it had just done so in [previous digital asset legislation]—and then chose not to do so here.”

You can read the full bill here. 

Notable and Quotable

“The Genius Act is working, and finishing the job through the Clarity Act is the best chance Congress has had to set clear rules of the road. Clarity is closer than it’s ever been, and I urge the Senate to finish it this year. Clear US-based rules are what unlock tokenization for ordinary Americans, keeping this activity on shore and creating good paying jobs. Because in the end, the cost of moving money and moving assets is real, and it shows up in every household budget.”

—Cody Carbone, CEO, Digital Chamber

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