# Introduction

2025 is seen as a "watershed" year for cryptocurrency regulation in the United States. Prior to this, U.S. regulatory agencies had long wavered in their approach to crypto assets, and the lack of a clear regulatory framework led to a prevalence of "enforcement-style regulation," making it difficult for the industry to progress. However, in 2025, the U.S. federal government and Congress made a series of groundbreaking advancements in crypto legislation and policy: Congress passed the first federal stablecoin bill (the GENIUS Stablecoin Act), the House pushed forward the Digital Asset Market Structure Act (the CLARITY Act), and successfully repealed inappropriate tax regulations targeting DeFi, among other measures. These initiatives not only clarified industry rules and boosted market confidence but also triggered significant price fluctuations and structural changes in the market.

The changing political environment in the U.S. paved the way for crypto-friendly policies: Trump returned to the White House, explicitly stating his intention to make the U.S. the "global crypto capital," and issued an executive order elevating digital assets to a national financial strategy priority, while appointing several officials supportive of crypto innovation to key positions. With improvements in the legislative and regulatory environment, mainstream crypto assets like Bitcoin entered a new bull market in 2024, reaching historical highs in early 2025. Although the market experienced a downturn towards the end of the year due to macroeconomic fluctuations, it can be said that regulatory benefits were a crucial pillar of this market recovery.

This article will delve into the crypto bills and policy measures that the U.S. has passed or is advancing in 2025, analyze market performance before and after these initiatives, and look ahead to regulatory trends and industry impacts in 2026. We will see that, with the support of policy clarity, the short-term sentiment and long-term structure of the U.S. crypto market have undergone profound changes: in the short term, prices react swiftly to policy news, while in the long term, the compliance ecosystem is gradually improving, institutional funds are entering the market at an accelerated pace, and the industry is regaining development momentum. By sorting through this series of events, investors can gain a clearer understanding of the far-reaching impact of regulatory direction on the market.

# The First Federal Stablecoin Bill: GENIUS Act

Source: https://www.congress.gov/bill/119th-congress/senate-bill/1582/text

In June 2025, the U.S. Senate passed the "Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025" (GENIUS Act) with a high vote. This is the first federal-level stablecoin regulatory bill in the U.S. and became the first major crypto legislation passed by Congress. On July 17, the House overwhelmingly approved the bill with 308 votes in favor and 122 against. The next day, President Trump signed the GENIUS Act, making it official law. This series of rapid legislative actions reflects a bipartisan consensus on stablecoin regulation, marking a shift in the U.S. attitude towards digital dollar stablecoins from cautious observation to proactive regulation.

1. Main Content of the Bill

The GENIUS Act establishes a new federal regulatory framework for payment stablecoins. According to the bill, "payment stablecoins" are defined as digital assets pegged to the value of fiat currency, used for payments and settlements, with issuers promising to redeem them at a fixed face value and claiming to maintain value stability.

• Issuer Requirements: Only qualified regulated entities can issue such stablecoins, including bank subsidiaries insured by the Federal Deposit Insurance Corporation (FDIC), non-bank institutions approved by the Office of the Comptroller of the Currency (OCC), and entities authorized by certified state regulatory agencies. The qualification review ensures that issuers have sufficient financial strength and compliance capabilities, meaning mainstream compliant companies like Circle will have clear pathways to obtain federal licenses, while non-compliant firms will be prohibited from issuing stablecoins, preventing risks from disorderly innovation at the source.

• 100% Reserve Requirement for Stablecoins: At least a 1:1 ratio of safe, highly liquid assets must be held as reserves. Eligible reserve assets include U.S. fiat currency (including Federal Reserve deposits), short-term U.S. Treasury securities, high-grade short-term repurchase agreements, and regulated deposits. The bill also allows for the "tokenized form" of these assets to count towards reserves, meaning that as long as these reserve assets themselves comply with regulatory requirements, their blockchain token forms will also be accepted. This provision reserves space for the on-chain circulation of traditional financial assets in the future. Additionally, the bill explicitly prohibits stablecoin holders from earning interest to prevent "shadow banking" risks similar to deposits. Issuers must disclose the number of stablecoins in circulation and the corresponding reserve composition on their official website monthly, and the reports must be audited by independent accounting firms, with the issuer's CEO/CFO required to personally sign to guarantee report accuracy.

• Regulatory Division and Balance: The GENIUS Act is implemented through cooperation between federal and state regulators. Non-bank issuers must obtain OCC approval and accept federal oversight, while small issuers operating under state regulation must also meet requirements similar to federal ones. Meanwhile, the Federal Reserve is authorized to take enforcement action against state-regulated stablecoin issuers in "special emergency situations" to prevent systemic risks. This "dual-layer regulatory" model ensures that the potential impact of large stablecoin issuers on the financial system is directly controlled by central regulatory agencies, while small innovations can develop in state regulatory sandboxes, thus ensuring both financial stability and encouraging innovation.

• Prohibition on Commercial Companies: The bill also specifically prohibits certain types of businesses from issuing stablecoins. For example, non-financial commercial companies (especially large tech companies) are not allowed to issue payment stablecoins. This move aims to prevent platform tech companies with billions of users from circumventing financial regulation to issue currency directly, thus safeguarding against the impact of "digital monopoly currency" on financial sovereignty and competition. This provision can be seen as a response to Facebook's previous Libra (later renamed Diem) initiative, clearly delineating the boundaries for tech giants in the digital currency space.

• Clarification that Stablecoins Are Not Securities or Commodities: They are not subject to SEC or CFTC regulation but fall under the banking regulatory system. This provides an answer to the long-standing regulatory jurisdiction issue troubling the market: mainstream U.S. dollar stablecoins like USDC and USDT will be recognized as similar to prepaid payment instruments rather than securities, thus avoiding the inappropriate application of complex securities laws.

2. Market Impact of the GENIUS Act

Source: https://defillama.com/stablecoins

The introduction of the GENIUS Act is believed to have significantly enhanced market trust in stablecoins. Following the legislative announcement, the stablecoin market reacted positively: by December 2025, the total market capitalization of global stablecoins had exceeded $300 billion. This growth is partly attributed to the overall recovery of the crypto market, but more directly, it stems from investors' expectations that the implementation of regulations will legitimize stablecoins, leading institutional investors to use and hold stablecoins for transactions and payments with greater confidence, while some traditional financial institutions are also considering entering the stablecoin business.

JP Morgan's research department predicts that the global stablecoin market capitalization could reach between $500 billion and $750 billion in the coming years. Some media outlets have called "2025 the true year of stablecoins." Under the protection of regulations, U.S. dollar stablecoins will accelerate their integration into mainstream finance. For example, payment giants like Visa and Mastercard have begun piloting the use of stablecoins for settling cross-border transactions; some banks are considering issuing their own branded stablecoins or collaborating with existing issuers to provide compliant digital dollar services.

# Digital Asset Market Structure Act: CLARITY Act

Source: https://www.congress.gov/bill/119th-congress/house-bill/3633/text

Following the stablecoin legislation, Congress is also rapidly advancing legislation regarding the broader crypto asset market structure. The focus is on the "Digital Asset Market Clarity Act of 2025" (CLARITY Act), which was proposed and passed by the House. This bill, drafted jointly by the House Agriculture Committee and the Financial Services Committee, is seen as a comprehensive plan to clarify the regulatory boundaries for digital assets.

On July 17, 2025, the CLARITY Act was passed in the House with 294 votes in favor and 134 against. The bill was subsequently sent to the Senate for review. However, just a few days after the House's approval, the Senate Banking Committee also proposed a competing crypto market draft that runs parallel to CLARITY. The Senate Agriculture Committee and Banking Committee held discussions and publicly solicited opinions on their respective digital asset legislation, planning to merge the two proposals into a unified Senate bill for a vote in 2026.

1. Core of the Bill: Three-Class Regulatory System

The CLARITY Act attempts to fundamentally address a long-standing issue troubling the industry—who regulates crypto assets? To this end, the bill designs a "three-part" framework that categorizes digital assets into three classes and clearly delineates the responsibilities of the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission):

• Digital Commodities: Referring to digital assets "intrinsically linked to the blockchain system itself, with value directly dependent on the functionality or services of that chain." In simple terms, these are functional tokens based on blockchain networks used for payments, governance, accessing services, or as incentives, such as Bitcoin and Ethereum. The bill explicitly excludes several categories that do not fall under digital commodities, including securities and their derivatives, stablecoins, bank deposits, fund shares, collectibles, etc. This classification corresponds to decentralized, non-profit generating tokens, aiming to recognize their commodity attributes.

• Investment Contract Assets: This is a new concept created by the bill, referring to "digital commodities issued or sold through investment contracts." In layman's terms, this means tokens sold in fundraising situations—such as tokens sold to investors through initial coin offerings (ICOs) by project parties. Additionally, the bill establishes a "chain maturity" recognition mechanism, allowing project parties or decentralized communities to apply to regulatory agencies for certification that a particular blockchain network has matured, thus formally confirming that its tokens no longer fall under the category of securities. The standards for network maturity include: the blockchain has practical usable functions and services, core code is open source, rules are transparently predetermined and cannot be unilaterally altered, and no single entity controls more than 20% of the token supply. This design is similar to the lock-up period after a traditional IPO—early projects must accept securities regulatory protection for investors, but once the network is sufficiently decentralized, the project parties can exit strict regulation, and the tokens become freely tradable commodities.

• Licensed Payment Stablecoins: Similar to the definition in the GENIUS Act, the CLARITY Act categorizes fiat-pegged stablecoins used for payments as a separate class. These assets must be pegged to a certain fiat currency, with issuers regulated by state or federal agencies, and promise to redeem at a fixed value. Under the CLARITY framework, stablecoins are not classified as securities or commodities but are treated as regulated payment instruments.

Through the above classifications, the CLARITY Act seeks to clarify the regulatory boundaries between the SEC and CFTC. Specifically, the digital commodities sector is primarily under CFTC jurisdiction, the issuance of investment contract assets is regulated by the SEC, and stablecoins are overseen by banking regulatory agencies. This arrangement ensures that each agency performs its duties: the SEC will no longer classify almost all tokens as securities but will focus on combating violations in the fundraising issuance phase; the CFTC will fill the previous gap in direct jurisdiction over the crypto spot market and can actively govern market manipulation and other behaviors.

2. Compliance Path for Exchanges and Practitioners

In addition to defining asset attributes, the CLARITY Act provides clear compliance guidance for market intermediaries and participants.

• Crypto Exchanges: The bill requires digital commodity trading platforms to register with the CFTC as "digital commodity exchanges" and comply with a series of core principles, including: establishing listing standards (ensuring that the issuers of listed tokens have fulfilled necessary information disclosure, such as public source code, issuance volume, and economic models), implementing trading monitoring, preventing conflicts of interest, ensuring fund safety and system security, etc. Exchanges must segregate customer assets from their own assets, ensuring that customer funds are held in qualified digital asset custodians, providing adequate risk disclosures, and joining the futures industry association for self-regulation. The bill even imposes restrictions on innovative services offered by exchanges, such as allowing exchanges to provide staking services to enhance blockchain network security, but prohibiting mandatory user participation or mixing with their own trading activities to prevent conflicts of interest.

• Brokers/Dealers: The bill breaks down the existing barriers between digital asset and securities businesses, encouraging compliant brokers and exchanges to incorporate digital assets into their business scope. The bill requires anyone engaged in digital commodity brokerage to register with the CFTC as a digital commodity broker and meet corresponding capital, reporting, and customer protection requirements. The SEC is required to allow its registered brokers, exchanges, or alternative trading systems (ATS) to handle transactions and custody of digital commodities and stablecoins, and cannot reject their registration or exemption applications solely because the platform simultaneously offers securities and digital asset trading. The SEC is also granted discretionary authority to use existing exemptions, allowing for special exemptions for certain decentralized financial activities to avoid inappropriate regulation stifling new developments.

• Technology Developers: It is reported that the final text of the CLARITY Act explicitly states that individuals engaged in blockchain development, node operation, wallet development, and other non-custodial activities do not need to obtain state or federal licenses. This provision is crucial for the U.S. blockchain technology development ecosystem, meaning that pure technology providers will not bear heavy regulatory obligations due to financial activities occurring on-chain by users, thus clearing the legal uncertainties that previously loomed over miners, nodes, and smart contract developers.

3. Market Impact: Positive Expectations and Increased Volatility

Source: https://coinmarketcap.com/currencies/bitcoin/

As the House announced mid-July 2025 as "Crypto Week," preparing to vote on the CLARITY Act, anti-CBDC provisions, and the stablecoin bill, market investor sentiment turned bullish. In fact, a significant catalyst for the strong performance of the crypto market in mid-year was this series of positive news: Bitcoin's price reached a rebound high in July, its market share increased, and many blockchain concept stocks listed in the U.S. recorded phase gains. After the legislation passed, the industry widely believed that the long-standing unresolved issues in the U.S. crypto industry finally saw a glimmer of hope for resolution, enhancing traditional institutions' willingness to enter the market. Trading platforms like the New York Stock Exchange and Nasdaq, which had previously shelved digital asset trading or custody plans due to regulatory uncertainty, began reassessing the possibility of launching.

However, due to the slow and uncertain pace of policy advancement, the market also experienced news-driven fluctuations. For instance, after the House passed the CLARITY Act and submitted it to the Senate, investors were once hopeful that the Senate would quickly follow suit, leading to the bill's enactment by the end of the year, which pushed Bitcoin's price to reach an all-time high of approximately $126,000 in early October. However, in mid-October, following the President's sudden announcement of a new round of tariffs on China, global market risk aversion increased, causing Bitcoin to plummet alongside the stock market, with the day's leveraged positions liquidating at a record high of $19 billion in crypto history. Subsequently, the negative impact of macro factors made it difficult for the crypto market to remain insulated. Bitcoin's price recorded its largest monthly decline since 2021 in November, and as of now, it still hovers below $90,000. This indicates that crypto assets, as risk assets, are heavily influenced by macroeconomic conditions and overall market sentiment, with the correlation coefficient between Bitcoin and the S&P 500 index rising to 0.5 in 2025, significantly higher than 0.29 in 2024.

# Other Representative Crypto Policies

In addition to heavyweight legislative projects, the U.S. government also took significant actions on some crypto-related policies in 2025, further improving the compliance environment for the crypto ecosystem.

1. Anti-CBDC Bill: Protecting Financial Privacy

After the Trump administration took office, its attitude towards central bank digital currencies (CBDCs) underwent a 180-degree shift. In January 2025, President Trump signed an executive order directly prohibiting any federal agency from promoting, issuing, or advertising CBDCs. This tone was later reinforced by the legislative body: the House attached Title VI, the "Anti-CBDC Surveillance State Act," to the CLARITY Act. The core content is to legally prevent the Federal Reserve from launching CBDC accounts or products for individual consumers, emphasizing the importance of privacy and freedom and preventing the government from using CBDCs to obtain citizens' transaction data. During "Crypto Week" in 2025, the House voted separately on this bill and passed it. Although the Senate has not yet completed its review of the bill, considering the new government's and House leadership's clear opposition, the door for the U.S. to launch CBDCs has effectively been closed.

Supporters argue that banning CBDCs helps protect citizens' financial privacy and private sector innovation. Once CBDCs are issued, the government could monitor in real-time and even restrict individuals' use of funds, which contradicts the U.S. emphasis on free markets and privacy rights. In this atmosphere, the Federal Reserve noticeably slowed its research progress on the digital dollar in 2025, focusing only on wholesale (interbank settlement) CBDCs. This means that private sector stablecoins will dominate the digital dollar process, aligning with the GENIUS Act's policy direction encouraging banks and compliant institutions to issue stablecoins.

2. Repeal of Strict Reporting Rules for DeFi

As early as 2021, the U.S. "Infrastructure Investment and Jobs Act" (IIJA) included a controversial provision requiring broadly defined "digital asset brokers" to report user transaction information to the IRS. This definition was overly broad and could classify miners, nodes, and smart contract developers in the decentralized finance space as "brokers," forcing them to comply with burdensome customer identification (KYC) and tax reporting obligations. In 2025, both houses of Congress passed Joint Resolution 25 (H.J. Res. 25), which was signed into law by President Trump on April 10, 2025 (Public Law 119-5). This law formally repealed the Treasury Department's implementation rules for Section 80603 of the IIJA (digital asset broker information reporting).

After the repeal of the rules, the IRS clarified that purely automated DeFi platforms operating on the blockchain without providing fiat conversion do not need to submit 1099-DA transaction reports to tax authorities, nor are they required to collect user identity information. In contrast, centralized exchanges and service providers (holding customer assets and providing fiat exchange) still need to comply with information reporting obligations: they will record user digital asset transactions starting January 1, 2025, and submit new Form 1099-DA to users and the IRS in early 2026. This means that U.S. licensed exchanges like Coinbase and Kraken will still need to file on time, while decentralized protocols like Uniswap are exempt. Additionally, payment processors and institutions that frequently issue or redeem their own tokens continue to be regarded as "brokers" and must fulfill reporting obligations, primarily targeting stablecoin issuers with centralized entities.

3. Regulatory Personnel and Enforcement Shift

In addition to legislation and macro policies, the noticeable improvement in the U.S. crypto regulatory environment in 2025 is also reflected in personnel adjustments in regulatory agencies and changes in enforcement styles. After the new government took office, a number of officials with an open attitude towards crypto were appointed to key positions. Among them, the most significant is the appointment of former SEC Commissioner Paul S. Atkins as the Chairman of the SEC. Upon taking office, Atkins immediately launched an internal project dubbed "Project Crypto," aimed at establishing formal token classification standards and guiding rules for digital assets, and formed a "Crypto 2.0" special task force. The new task force's mission is to assist the commission in formulating a "comprehensive and clear regulatory framework" and to use enforcement resources more judiciously.

Accompanying the personnel adjustments is a rapid shift in the SEC's enforcement orientation. Since Trump took office in early 2025, the SEC has suspended or withdrawn approximately 60% of investigations and lawsuits related to crypto cases. Some high-profile cases, such as the lawsuit against Ripple and enforcement actions against Binance, have shown significant signs of easing. For example, in July 2025, the SEC reached a settlement with Ripple, dropping charges against its executives; the investigation into Binance is reportedly no longer being actively pursued. The SEC even ended a four-year investigation into the decentralized lending platform Aave without taking any punitive measures. The SEC's changes have greatly alleviated industry pressure, and the new enforcement relaxation allows them to shift their focus from litigation back to operations. This has, to some extent, contributed to the market's recovery in 2025, and U.S. projects are no longer fleeing abroad in large numbers.

At the same time, the previously strict attitude of banking regulators towards banks' involvement in crypto business has also begun to ease moderately. The newly appointed Treasury Secretary Scott Bessent has expressed a welcoming attitude towards digital assets. Travis Hill, acting chairman of the Federal Deposit Insurance Corporation (FDIC), issued a public statement in January promising to adopt "a more transparent approach to fintech collaboration and digital asset tokenization" and is considering issuing additional guidance to clarify the compliance pathways for banks participating in digital asset businesses. The Federal Reserve, OCC, and other agencies have gradually withdrawn some of their previous restrictive statements regarding banks engaging in crypto business in 2025, shifting to a case-by-case review of specific businesses. As a result, some small and medium-sized banks in the U.S. are reconsidering providing account services for crypto companies, and cooperation between banks and crypto firms is beginning to warm up. After several "crypto-friendly banks," including Signature and Silvergate, collapsed, crypto companies had difficulty obtaining basic banking services, but this situation is expected to improve.

4. Executive Orders and Bitcoin Reserve Exploration

On January 23, President Trump signed an executive order titled "Strengthening U.S. Leadership in Digital Financial Technology," announcing that "supporting the responsible growth and use of digital assets, blockchain technology, and related technologies across all economic sectors" would be national policy. This order established a presidential digital asset market working group, comprising over a dozen high-ranking officials, including the SEC Chair, CFTC Chair, Treasury Secretary, Commerce Secretary, and Attorney General, and may invite leaders from the private sector in digital assets to participate in consultations. The President has requested the working group to submit a report within 180 days, proposing a comprehensive federal regulatory framework for digital assets and assessing the feasibility of establishing a national "digital asset reserve."

Trump himself has shown a keen interest in establishing a national Bitcoin reserve, hoping to utilize the government's existing Bitcoin holdings as a basis (from law enforcement seizures) to explore diversifying part of the national reserves into digital assets. On March 6, he further issued Executive Order 14233, directing the establishment of a strategic Bitcoin reserve and a U.S. digital asset inventory.

It can be said that the U.S. has officially embraced Bitcoin at the government level, which is not just an economic decision but also a geopolitical consideration: ensuring the dollar's dominant position in the future digital economy and preventing other countries' digital currencies or gold from gaining strength. Although this idea is controversial among traditional financial officials, at least in 2025, it has moved from science fiction to reality.

Overall, the policies and measures of 2025 demonstrate the U.S. government's comprehensive embrace of crypto innovation: establishing rules through legislation, changing regulatory tones through personnel adjustments, and setting strategic directions through executive orders. This top-level design and strong execution send a clear signal to the global crypto industry: the U.S. aims to actively participate in and lead this financial revolution. While a more regulated market may reduce some speculative bubbles, in the long run, it will attract larger and more rational funds, and crypto assets are expected to gradually become a regular part of global asset allocation rather than an alternative asset wandering in gray areas.

# Outlook for 2026: New Regulations and Industry Changes

Looking ahead to 2026, U.S. crypto regulation will continue to deepen and refine along the tone set in 2025. Here are several directions worth paying attention to:

1. Legislative Implementation and Rule Refinement

The digital asset market structure legislation is expected to achieve final passage in 2026. The two Senate committees have planned to integrate their respective drafts before the end of the year and push for a full Senate vote in early 2026. Considering that the House version has received significant support and the cooperation of the executive authorities, the industry predicts a high likelihood of the Senate bill passing.

Once both chambers reach an agreement on the final text, the CLARITY Act and related provisions (such as anti-CBDC) may be formally signed into law in the first half of 2026. Subsequently, the SEC and CFTC will enter a busy rule-making period. During this process, industry associations and large enterprises will engage in negotiations to secure favorable terms.

The final details of the new regulations will determine the specific direction of market participants' adjustments to their business models. For example, if the exchange registration process and requirements are relatively relaxed and transparent, we may see exchanges like Coinbase in the U.S. take the lead in applying to become CFTC-registered platforms, and even overseas exchanges considering applying for U.S. licenses.

2. Formation of a Compliance Ecosystem and Accelerated Institutional Entry

Once the regulatory framework is clear and supporting rules gradually take shape, the U.S. crypto compliance ecosystem will begin to take form. Legally operating exchanges, custodians, brokers, stablecoin issuers, and others will successively obtain formal registrations or licenses from regulatory agencies, and institutional investor participation will rapidly increase.

Currently, large asset management firms (such as BlackRock and Fidelity) have already brought some traditional funds into the market through products like ETFs. As regulations further clarify in 2026, these institutions may engage in more diversified businesses, such as establishing crypto hedge funds, providing custody, and trading derivatives. For example, Wall Street banks like Goldman Sachs may launch digital asset trading and custody services. In the stablecoin sector, qualified bank subsidiaries like JPMorgan may issue payment stablecoins, providing pathways for non-bank institutions like PayPal to issue stablecoins through OCC approval.

The large-scale entry of traditional institutions will bring incremental funds and more mature risk management, which will help reduce the volatility of the crypto market in the long term and enhance market depth and pricing efficiency.

3. Industry Competition and Restructuring

The arrival of the compliance era also means a restructuring of the industry. Those willing and able to meet regulatory requirements will prevail, while those resisting regulation or unable to meet standards will be eliminated. For example, compliant pioneers like Coinbase are expected to further expand their market share, while some trading platforms that have not obtained any licenses and operate in gray areas will find it difficult to continue serving U.S. customers.

Similarly, in terms of crypto projects, high-quality projects will be more willing to issue tokens compliantly in the U.S. If the SEC successfully establishes a token registration exemption system in 2026, we may see the first batch of tokens registered with the SEC, sold to the public and monitored by regulatory agencies. This would be a revolutionary change, meaning that crypto startups could raise funds compliantly like publicly listed companies through IPOs, while investors would enjoy corresponding information transparency and legal protection.

At the same time, some emerging models in the decentralized space will further develop and thrive, as safe harbor provisions protect developers. For instance, decentralized exchanges, lending, and derivatives platforms may flourish even more after obtaining clear exemption boundaries and gradually connect with traditional finance.

4. Government Strategy and International Competition

From a governmental perspective, the Trump administration will continue to promote the strategic goal of "making the U.S. a global leader in crypto and blockchain innovation," ensuring that it holds a voice in international standard-setting, including designating FATF digital asset regulatory standards and cross-border payment frameworks. In 2026, the U.S. may seek to strengthen dialogue and cooperation with advanced regulatory economies like Europe, the U.K., and Japan to form a certain degree of regulatory equivalence or mutual recognition. This will facilitate cross-border business operations, allowing legitimate and compliant crypto companies to operate smoothly in major markets.

At the same time, the U.S. may increasingly incorporate crypto into its financial diplomacy agenda, promoting the use of dollar stablecoins in developing countries to solidify the dollar's position. At the end of 2025, newly appointed Treasury Secretary Bessent praised the liquidity of the U.S. Treasury market and pointed out that the growth of stablecoins is expanding demand for U.S. Treasuries. This indicates that officials are beginning to recognize the potential benefits of stablecoins and other crypto products for the U.S. financial market.

5. Risks and Challenges

Of course, even with a bright outlook, 2026 is not without risks. On the macro front, the U.S. economy may face new uncertainties, such as changes in interest rate cycles and geopolitical conflicts, which could still impact the crypto market.

Additionally, regulatory goodwill does not mean a relaxation of vigilance. If a major crypto security incident occurs in 2026, regulators may quickly tighten policies and severely punish those involved to deter others. This raises higher demands for industry self-discipline: companies must strengthen security and risk control while enjoying policy benefits.

Moreover, the political cycle in the U.S. is also worth noting. 2026 is a midterm election year, and if the political landscape changes again, it remains uncertain whether the current crypto-friendly stance will reverse. However, at least during the 2025-2026 cycle, both parties have reached a consensus on supporting reasonable regulation and encouraging innovation.

# Conclusion

Looking back at 2025, the U.S. experienced a significant transformation in cryptocurrency regulation, moving from chaos to clarity and from passive to proactive. This year, Congress and the government jointly launched a series of milestone initiatives, including the stablecoin bill and market structure bill. In the short term, these policy announcements significantly impacted market sentiment and trends. While macroeconomic headwinds compounded, the market still experienced intense fluctuations. However, the more profound impact lies in the changes to the industry ecosystem and landscape: clear rules have removed obstacles to compliant operations, traditional financial institutions can enter the market with peace of mind, and innovators are no longer deterred by regulatory uncertainties, allowing the U.S. to regain its status as a hotbed for crypto entrepreneurship and funding.

As regulatory clarity increases, the industry itself must also place greater emphasis on compliance and risk control to match the trust of regulators. Only through a positive interaction between regulation and the industry can crypto technology truly integrate into the socio-economic landscape and unleash its transformative potential. For investors, it is crucial to closely monitor policy directions, as regulation is becoming an important variable driving crypto market trends. Positive policy developments can not only lead to price increases but, more importantly, reduce long-term risk premiums and enhance the intrinsic value and sustainability of assets.

Looking ahead, the U.S. regulatory exploration will provide valuable examples for the world: how to maximize the vitality of digital financial innovation while maintaining financial stability and security. It is foreseeable that in 2026, the crypto industry will continue to advance on a more solid legal foundation, and the U.S. is expected to solidify its position as a global center for crypto capital and technology. There may still be bumps along the way, but the direction is clear: crypto assets will emerge from the gray area and participate openly in shaping the future financial landscape.

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