What has changed in the crypto regulatory landscape in the US

As crypto is becoming more widely adopted by people and companies, the regulatory landscape is bound to change worldwide. The United States of America is a well-known country for its loose regulation of financial assets, and with the recent changes in Government taking place in early 2025, there already have been a few updates to the ongoing legal requirements.

As technology continues to evolve, legislation follows. With MiCA taking into effect on December 30, 2024, as we’ve explored in this article, the United States (US) has also made some changes to regulation earlier this year, namely through legislative actions, executive orders, and shifts in agency leadership. Additionally, new developments in the private sector and economic policy have further impacted the crypto space.

Established regulation

In 2022, the US Government issued SAB 121, a bill that states clearly that companies are “responsible for safeguarding the crypto assets held for its platform users, including maintaining the cryptographic key information necessary to access the crypto assets”, and must report the liability on their balance sheet.

More recently, in May 2024, the US House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21), a more comprehensive regulatory framework for digital assets that imported key concepts of blockchain and crypto assets into legislation. The bill classifies digital assets based on the decentralization of their underlying blockchains while also creating two different organisms to manage crypto rules: the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The document also clarifies the scope of each entity, granting the CFTC authority over digital commodities and the SEC over securities. 

Recent updates

As a new US Administration stepped into office, several developments have been made in the crypto space, as promised by President Trump.

1. Executive Order "Strengthening American Leadership in Digital Financial Technology"

President Donald J. Trump signed Executive Order Number 14178, titled “Strengthening American Leadership in Digital Financial Technology”, on January 23rd, 2025. This new bill establishes an updated framework for crypto asset policy in America. The document revokes prior executive order 14067, dated March 9, 2022 and titled "Ensuring Responsible Development of Digital Assets", and the Department of the Treasury’s “Framework for International Engagement on Digital Assets”, issued on July 7, 2022.

This action intended to dismantle the previous Administration’s vision of crypto and all the regulations in place regarding this subject. The new directive outlines a comprehensive strategy to promote the growth and integration of digital assets and blockchain technologies in the US economy while safeguarding economic liberties and ensuring regulatory clarity.

The Executive Order above furthermore states the deployment of a Working Group on Digital Asset Markets, chaired by David Sacks as the Special Advisor for AI and Crypto and intended to develop a federal regulatory framework for crypto assets, including stockpile, and explore the possibility of a national crypto asset stockpile.

2. New Crypto Task Force

As the Securities and Exchange Commission (SEC) assumes increased responsibility, acting Chair Mark Uyeda has established a crypto task force that aims to develop “a comprehensive and clear regulatory framework” for crypto assets in the United States. Led by Commissioner Hester Peirce, the workgroup will clarify legislation and regulatory boundaries for crypto holders, provide registration pathways for crypto declaration with SEC, craft frameworks for disclosure requirements, and oversee judicious enforcement of new rules.

3. Updated SAB 121 to SAB 122

Simultaneously, in January 2025, the SEC rescinded SAB 121, in force since 2022, and issued SAB 122. This new regulation states that an entity previously required to recognize a liability on its balance sheet while upholding crypto assets will, from now on, follow the guidelines under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 450, Contingencies. This means they will assess the liability related to the risk of loss under the recognition and measurement principles for contingencies of these regulatory frameworks.

4. GENIUS Act in Senate for debate

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is an overarching legislative proposal introduced in the Senate on February 4, 2025. It intends to create a comprehensive federal framework for the regulation of stablecoins and digital assets.

The Act defines a "payment stablecoin" as a digital asset used for payment or settlement purposes, pegged to a fixed monetary value. This classification distinguishes payment stablecoins from securities or commodities, placing them under a specialized regulatory framework.

On March 13, 2025, the Senate Banking Committee passed the GENIUS Act with an overwhelming 18-6 vote, including support from five Democrats. As part of the follow up process, the bill will now proceed to the full Senate for debate.

Market Developments and Private Sector Impact

Beyond regulatory changes, the US crypto market is experiencing significant private sector movements:

• Crypto traders are in a wait-and-see mode ahead of a major policy announcement from the Trump administration. This initiative, expected to be dubbed "Liberation Day", may include tariff changes that could impact international crypto trading and mining operations. The market is closely monitoring how potential changes in trade policy could affect the liquidity and valuation of digital assets.

• Adding to the bullish sentiment on crypto, the Trump family has announced a partnership with Hut 8 to launch a US-based Bitcoin mining venture. The move signals the administration's commitment to strengthening domestic crypto infrastructure and fostering innovation in blockchain technology. The venture aims to increase US dominance in bitcoin mining, reduce reliance on international operations, and strengthen the role of crypto in the American economy.

Recent regulatory updates and private sector initiatives highlight the US government's evolving approach to integrating and protecting cryptocurrencies into the mainstream financial system. These initiatives aim to strike a balance between fostering innovation and widespread adoption, while ensuring consumer protection and financial stability in the rapidly evolving digital asset landscape.

As new regulations and frameworks continue to develop, we will closely monitor updates and ensure crypto compliance in the US, as we do in the rest of the world, with our payment solutions.