Unlocking Innovation: Harvey Kesner's Insights on Crypto Treasury Compliance and the GENIUS Act

Crypto treasury strategies have recently gained popularity with tickers such as MicroStrategy (NASDAQ:MSTR)) $60 billion, GameStop (NYSE:GME) $500 million, and Trump Media & Technology Group (NASDAQ:DJT) $2.5 billion are planning to establish or expand their crypto treasuries. Lesser-knowns such as MARA Holdings (NASDAQ: MARA), BTCS (NASDAQ:BTCS), DeFi Development Corp (NASDAQ: DFDV), and others have joined this growing trend, setting out plans in their public filings to embrace the current legal, regulatory, and political landscape.

The former SEC staff attorney and lawyer for names such as RIOT, MARA, and BTCS, Harvey Kesner, offers expert insights into how businesses are strategically integrating cryptocurrencies into their treasury while navigating complex regulatory frameworks. Companies are racing to raise as much money as they can to put behind crypto, not just Bitcoin and Ethereum, but a host of stablecoins and other cryptocurrencies. Even companies that had nothing to do with crypto have allocated capital to the strategy. It is a bet that developments like the GENIUS Act signed into law by President Trump on July 18, 2025, will pave the way for market gains, and so far, they have been correct.

Crypto treasury is the accumulation of crypto assets on the balance sheet using capital from a private financing or public offering. The benefits will certainly come with regulatory scrutiny that requires careful legal and financial planning, such as whether the corporate charter and purpose properly include a pivot away from a core business purpose authorized by the board of directors and executed by management. Historically, corporate cash was considered safe only when deployed within stable institutional assets such as bank deposits, US treasuries, or money market funds. Holding cash in highly volatile crypto will put boards of directors in the crosshairs of regulators and investors based upon what they authorized and the process by which they considered and then disclosed the risks.

Kesner emphasizes that successful crypto pivots hinge on compliance with securities laws and regulations. "The regulatory environment for digital assets is evolving rapidly," he explains. "Companies must build frameworks that ensure transparency, satisfy SEC requirements, and protect investor interests while leveraging blockchain assets."

Blending traditional regulatory approaches with emerging technological innovation was central to Kesner's approach with Marathon Digital, Riot Platforms, and BTCS as early adopters of Bitcoin and Ethereum mining. His efforts proved the difficulties that can be encountered when dealing with the SEC, which did not understand either the regulatory overlay or accounting around mining, pooling, and holding crypto ten years ago. Today's landscape demonstrates how technology can be embraced by the US to streamline capital formation and embrace crypto in all its forms without sacrificing regulatory rigor. Previously, countries like Singapore led the way with comprehensive regulation, leading to a wholesale exit from the US markets for blockchain-based business entrepreneurs and crypto funds, forced offshore by the US, which chose to regulate crypto through enforcement of laws designed for another era. The US approach assumed nearly any activity that touched crypto or blockchain violated federal law while bringing civil and criminal lawsuits under the Securities Act of 1933 and the Securities Exchange Act of 1934 against dozens of companies and individuals, while they begged Congress and the SEC to provide sensible regulation and guideposts for lawful activities.

The Genius Act paves the way, Kesner observed after ten years of groping for answers from regulators. According to the White House Fact Sheet, the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) provides the following:

• The GENIUS Act prioritizes consumer protection, strengthens the US dollar's reserve currency status, and bolsters our national security.
• The GENIUS Act will make America the undisputed leader in digital assets, bringing massive investment and innovation to our country.

Regulatory compliance, Kesner argues, should be viewed as a national asset. With clearer SEC guidance emerging and federal frameworks under development, companies that proactively address compliance build trust with investors and regulators alike.

Practically, Kesner highlights several effects of the GENIUS Act adoption according to the White House release:

• Making America the leader in digital assets.
• Protecting consumers in the Digital Market.
• Ensuring US Dollar Global Reserve Currency status.
• Combating illicit activity in digital assets.
• Delivering on promise to make America the Crypto capital of the world.

Looking ahead, Kesner foresees regulatory actions at the SEC, CFTC, and Treasury to provide more certainty and clarity as AI, blockchain, and technology converge to further transform the crypto landscape. "Digital assets will become fully integrated into corporate finance," he predicts. "Companies embracing innovation with strong compliance will lead the market."

"Democratizing access to crypto markets is at the heart of what President Trump set out to do, and he delivered," Kesner says.

Harvey Kesner's insights illuminate the path forward for companies seeking to unlock the full potential of crypto treasury and capital formation. His leadership bridges innovation and regulation, helping businesses navigate the evolving landscape of digital assets.