US Crypto Regulations to Watch for in 2025
This article explores the key regulatory trends, potential legislation, and strategic considerations for crypto founders.
US crypto founders are navigating a shifting regulatory landscape shaped by new appointments, overhauled enforcement priorities, and legislative developments.
This article explores the key regulatory trends, potential legislation, and strategic considerations for crypto founders.
Summary
2025 presents a unique regulatory landscape for crypto founders—one of opportunity but also complexity.
Clearer regulatory frameworks and reduced enforcement risks provide a more stable environment for innovation.
A critical factor in 2025 will be how key vacancies are filled and whether Congress advances meaningful legislation.
Founders should stay informed, proactive, and move quickly to capture the opportunities in licensing, new financial products, and capital inflows.
Regulatory Landscape: Clear Rules & Defined Boundaries
The narrative around deregulation often evokes images of a regulatory free-for-all, but the current trajectory suggests otherwise. For crypto, US Federal regulatory agencies will remain focused on fraud and illicit finance, rather than technical compliance actions. This marks a departure from the previous administration’s stance, such as the SEC’s sweeping enforcement actions against major crypto exchanges alleging that they operated as unregistered securities exchanges.
Key Developments So Far
Executive Order on Digital Financial Technology – A recent Executive Order (EO) established a working group with clear deliverables and tight timelines, signaling structured engagement with the industry. This directive revokes the previous administration's Executive Order 14067 and prohibits the establishment of a Central Bank Digital Currency (CBDC) in the US. It also establishes the President's Working Group on Digital Asset Markets, tasked with recommending regulatory proposals and exploring the creation of a national digital-asset stockpile. (Avichal’s summary, White House Announcement: Strengthening American Leadership in Digital Financial Technology)
Special Advisor for AI and Crypto – The appointment of a dedicated advisor underscores the administration’s commitment to engaging with digital assets and artificial intelligence at the policy level. (White House Announcement: President’s Council of Advisors on Science and Technology)
Signaling a Bitcoin Reserve – David Sacks press conference signaled a Bitcoin reserve following President Trump’s Executive Order calling for the creation of an American Sovereign Wealth Fund. (Video: David Sacks signals Bitcoin Reserve at press conference on Digital Assets)
SEC's Crypto Task Force Led by Hester Peirce – The SEC has formed a new Crypto Task Force under the leadership of Commissioner Hester Peirce, known as "Crypto Mom." This move signals a shift in the regulatory approach toward a more structured and transparent framework for crypto regulation. (SEC Press Release: SEC Crypto 2.0)
Hester Peirce’s Vision for Crypto Regulation – In her statement, "The Journey Begins," Hester Peirce introduced the newly established Crypto Task Force and outlined her vision for fostering innovation within a responsible regulatory framework. She outlines several key areas of focus, including clarifying the status of crypto assets under securities laws, providing temporary relief for certain token offerings, and exploring updates to existing regulations to accommodate crypto-related activities. (SEC Statement: The Journey Begins)
Rescinding SAB 121 – The reversal of the controversial SEC Staff Accounting Bulletin 121 lifts strict regulatory capital and disclosure requirements on banks. This move enables banks and financial institutions to offer crypto custody services, signaling a broader shift toward a more accommodating stance on digital assets. (SEC Announcement: Staff Accounting Bulletin No. 122)
GENIUS Act (New Stablecoin Bill) – A bipartisan stablecoin bill is being pushed in Congress as part of the Trump administration’s broader pro-crypto stance. The bill aims to create a standardized framework for stablecoin issuance and oversight, providing regulatory clarity for issuers and users. (Bloomberg Report)
Legislation & Regulations to Watch
Republican control of the White House and both houses of Congress has increased legislative momentum for crypto-friendly policies. However, industry progress also depends on appointments to key agencies.
Executive Actions
Updates to President Trump’s Position on Tariffs – President Trump’s tariff policies could fuel inflationary pressures, prompting the Federal Reserve to adjust interest rates. If tariffs drive higher consumer prices, the Fed may maintain or raise rates to control inflation, potentially dampening risk asset investments, including crypto. Conversely, economic slowdowns from trade disruptions could push the Fed toward rate cuts, boosting liquidity and risk appetite, which may benefit crypto markets. The interplay between tariffs, inflation, and Fed policy adds uncertainty, influencing investor sentiment and regulatory focus on digital assets.
Potential Legislative & Regulatory Changes
GENIUS Act – This proposed legislation aims to provide a comprehensive regulatory framework for digital assets and could shape how crypto firms operate within the U.S. regulatory environment.
Market Structure Revival – The Financial Innovation and Technology for the 21st Century Act (FIT21) could re-emerge, potentially providing clearer regulatory frameworks for digital assets.
Expressing Support for Blockchain Technology and Digital Assets – This resolution recognizes the significant opportunities blockchain technology provides for innovation and economic growth. It also encourages a regulatory environment that fosters the development and adoption of blockchain in the U.S.
Securing Innovation in Financial Regulation Act – Establishes the SEC Strategic Hub for Innovation and Financial Technology (FinHub) and strengthens the SEC’s approach to emerging financial technologies. It also establishes LabCFTC in the Commodity Futures Trading Commission (CFTC) to assist in regulatory oversight.
New Frontiers in Technology Act – Clarifies that non-fungible tokens (NFTs) are not securities and mandates a comprehensive study by the Government Accountability Office (GAO) on NFTs' economic impact.
BRIDGE Digital Assets Act – Creates a Joint CFTC-SEC Advisory Committee on Digital Assets, composed of industry stakeholders, to provide recommendations on regulatory rules.
Decentralized Finance Study Act – Mandates a Treasury-led study, in coordination with the SEC and CFTC, on decentralized finance (DeFi), with findings to be publicly reported.
STABLE Act of 2025 – Establishes federal guidelines for stablecoin issuance, redemption, and reserve requirements, aiming to protect consumers while fostering innovation.
Taxation & IRS Regulations
IRS Broker Regulations – Enacted in late 2024, these rules significantly impact DeFi platforms by broadening tax reporting requirements. Republican lawmakers, including Senator Ted Cruz and Representative Mike Carey, are seeking to repeal a Biden-era tax-compliance rule that mandates decentralized finance (DeFi) platforms to report transactions to the IRS. They argue that the rule exceeds congressional intent and imposes undue burdens on companies.
Capital Gains Tax – Discussions around a potential 0% capital gains tax for digital assets remain speculative but would require extensive IRS rulemaking.
Clarification of Reporting Obligations – Expect adjustments in tax reporting rules for digital assets, including potential relief from burdensome reporting standards introduced in previous years.
Regulatory and Enforcement
Trust Charters Expansion (OCC) – The Office of the Comptroller of the Currency (OCC) may further expand access to trust charters for digital asset custodians, following precedents set during the previous administration.
SEC Enforcement Approach – The SEC looks to provide greater oversight for enforcement actions by requiring permission before launching formal probes.
State Level Actions
State Actions – State legislatures are actively regulating cryptocurrency, with 179 digital asset bills introduced already this year. These bills aim to complement or challenge federal efforts by addressing gaps or taking different approaches. Key trends include licensing, consumer protection, money transmitter laws, mining regulation, taxes, disclosure requirements, and kiosk oversight. This creates a complex regulatory landscape for crypto businesses and highlights the tension between state and federal power in digital finance.
Key Appointments: As Important As Regulation
Personnel changes at key regulatory agencies will have a more immediate impact on the industry than sweeping legislation. Critical vacancies include:
FTC Chair – The Federal Trade Commission (FTC) plays an underappreciated role in shaping the competitive landscape for all startups, particularly regarding mergers and acquisitions.
CFTC Chair – The Commodity Futures Trading Commission (CFTC) holds jurisdiction over commodities and derivatives, and could be the future regulator of crypto spot markets. We expect a shift toward a more industry-friendly approach.
SEC & CFTC Enforcement Heads – These roles determine enforcement priorities, and set the tone for regulatory enforcement actions against industry participants.
How Founders Should React
1. Stay Proactive and Engaged
Engage with regulators and policymakers to provide expertise and shape upcoming regulations.
Participate in industry groups and advocacy efforts, for example those led by the Crypto Council for Innovation, to influence the development of clear and supportive regulations.
2. Secure Regulatory Approvals Quickly
The next two years are a good time to obtain regulatory licenses, such as trust charters or banking licenses, which can provide long-term operational stability.
Monitor potential expansion of Federal Reserve master accounts and position your firm for access.
3. Adapt Business Models to Compliance Shifts
Be prepared for changes in tax reporting and broker regulations by implementing robust compliance frameworks. Move quickly to stay ahead of the competition, especially incumbents.
Be prepared for market structure changes that change regulatory oversight and requirements. Do not overly invest time or money in anticipating what may happen, but be ready to adapt quickly.
4. Leverage Market Optimism and Investment Trends
With a more favorable regulatory environment, anticipate increased institutional investment in crypto and crypto companies.
Explore new financial products beyond crypto ETFs and other onchain vehicles that may benefit from clearer regulations.
Be proactive about partnerships and business development opportunities that may take time to close but benefit from tailwinds of regulatory clarity and market optimism.