Government and Policy Sector

India launched a limited tax amnesty scheme allowing small taxpayers to report undisclosed foreign assets and income by December 31, 2026. The Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS), initially outlined in the 2026–27 Union Budget by Finance Minister Nirmala Sitharaman, opened for online filings on August 16. The mechanism provides a structured route to bring overseas holdings into the tax net while offering immunity from further penalties and prosecution under the Black Money Act. For taxpayers with undisclosed foreign income or assets up to Rs10m, the scheme levies a 30% tax alongside an equal penalty amount, creating a 60% effective rate. A separate track covers specified foreign assets worth up to Rs50m—such as holdings acquired while non-resident or from previously taxed income that were omitted from return schedules—which can be regularized for a flat fee of Rs100,000. The fair market value for all declared assets is computed as of March 31, 2026. The initiative targets students, young professionals, technology sector employees, and non-resident Indians, explicitly excluding proceeds tied to ongoing money laundering proceedings or completed Black Money Act assessments.

The Office of the Comptroller of the Currency granted conditional approval to World Liberty Trust Company to establish a national trust bank charter. The Trump family-backed crypto venture will use the charter to directly issue and manage its USD1 stablecoin, moving operations in-house from BitGo Bank and Trust. The approval requires a $20 million minimum capital requirement and satisfies preopening conditions, though the trust cannot take deposits, issue loans, or join the Federal Reserve system. An entity tied to President Donald Trump and his family owns a 38% stake in World Liberty Financial. Senator Elizabeth Warren condemned the decision as a conflict of interest and introduced the Ending Presidential Corruption in Banking Act to ban federal regulators from approving bank applications tied to the president, vice president, or members of Congress. World Liberty defends the charter as a permanent framework for regulatory oversight that outlasts the current administration.

Chainalysis has sued the U.S. government over a sole-source contract Immigration and Customs Enforcement awarded to rival blockchain analytics firm TRM Labs. Chainalysis Government Solutions filed the challenge in the U.S. Court of Federal Claims on July 27, alleging that the Department of Homeland Security and ICE bypassed normal competitive procurement procedures. The one-year contract runs from July 1, 2026, to June 30, 2027, and provides forensic software and support services for Homeland Security Task Force investigations, including cybercrime and scam disruption. Chainalysis argues the decision was arbitrary, capricious, and unreasonable, though portions of the complaint remain sealed to protect confidential trade secrets. TRM Labs intervened in the lawsuit on July 28 to defend the government's award. Judge Stephen S. Schwartz has scheduled oral arguments for September 2 at the National Courts Building in Washington, D.C., with the government requesting a final decision by September 10.