Introduction

The year 2025 was seen as the “waterfall” of United States encrypted currency regulation. Prior to this, the United States regulators' attitude towards encrypted assets had been shaky, and the lack of a clear regulatory framework had led to “enforcement-based regulation” that made industry difficult. In 2025, however, the United States federal government and Congress made a series of breakthroughs in encryption legislation and policy: Congress passed the first Federal Currency Stability Bill (GENIUS), the House of Representatives promoted the Digital Asset Market Structure Bill (CLARITY Bill) and succeeded in repealing inappropriate tax provisions against DeFi. These initiatives, while clarifying industry rules and boosting market confidence, have also led to large fluctuations in market prices and structural changes。

The change in the political environment in the United States has paved the way for a policy of encrypted friendship: Trump returned to the White House, making it clear that the United States would be the “global city of encryption” and issuing an executive order to raise digital assets to the top of the national financial strategy, while appointing a number of officials to key positions in support of encryption innovation. As the legislative and regulatory environment improves, mainstream encrypted assets such as Bitcoin ushered in a new round of cattle markets in 2024, with early 2025 at a historic height. While the end of the year has been affected by macroeconomic fluctuations and has seen some reversals, it can be said that good governance is an important pillar of this round of market recovery。

This paper will provide an in-depth inventory of encryption laws and policy measures adopted or under way in the United States in 2025, an analysis of market performance before and after these initiatives and an overview of regulatory trends and industry impacts in 2026. We will see a profound change in the short-term mood and long-term structure of the encrypted market in the United States, accompanied by policy clarity: rapid price responses to policy messages in the short term, gradual ecological integrity in the long term, accelerated institutional finance, and a return to dynamic industry. By combing this series of events, investors can gain a clearer understanding of the far-reaching impact of regulatory direction on markets。

II. First Federal Stabilisation Currency Act: GENIUS Act

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

 

In June 2025, the Senate of the United States Congress passed the Guiding and Estabilizing National Innovation for U.S. Stablecoins Act of 2025, known as the GENIUS Act. This was the first federal-level stabilization currency regulation bill in the United States and was the first major encryption legislation passed by Congress. On 17 July, the House of Representatives passed the bill by an overwhelming vote of 308 in favour and 122 against. The following day, President Trump signed the GENIUS Act into law. This series of fast-paced legislative moves, reflecting the two parties' consensus on the regulation of stable currencies, marked a move from a wait-and-see approach to the digital dollar to a positive norm。

 

1. Main elements of the bill

THE GENIUS ACT ESTABLISHES AN ENTIRELY NEW FEDERAL REGULATORY FRAMEWORK FOR THE PAYMENT OF STABLE CURRENCY. ACCORDING TO THE ACT, “PAYMENT STABILITY CURRENCY” IS DEFINED AS DIGITAL ASSETS THAT ANCHOR THE LEGAL MONETARY VALUE, ARE AVAILABLE FOR PAYMENT AND SETTLEMENT, AND THE ISSUER IS COMMITTED TO REDEEMING IT AT FIXED FACE VALUE AND CLAIMING TO MAINTAIN A STABLE VALUE。

• Issuer RequirementsOnly qualified regulated bodies can issue such stable currency, including subsidiaries of banks insured by federal deposits, non-banking institutions authorized by the Money Supervisory Authority (OCC), and entities authorized by certified state regulators. Qualifications reviews ensure that issuers have sufficient financial strength and compliance capacity, which means that mainstream compliance companies such as Circle will have a clear way of obtaining federal clearance, while non-qualified enterprises will be barred from issuing stabilization coins to protect themselves from the risks of disorderly innovation at the source。

• Stable currency 100 per cent reserve: SAFE AND LIQUID ASSETS AS RESERVES AT LEAST 1:1. QUALIFIED RESERVE ASSETS INCLUDE UNITED STATES STATUTORY CURRENCY (INCLUDING UNITED STATES FEDERATION DEPOSITS), SHORT-TERM UNITED STATES TREASURY BONDS, HIGH CREDIT RATING SHORT-TERM BUY-BACK AGREEMENTS, REGULATED DEPOSITS, ETC. THE ACT ALSO ALLOWS FOR THE “DIDENTIZATION” OF THE ABOVE-MENTIONED ASSETS TO BE INCLUDED IN THE RESERVE, I.E., THE BLOCK-CODING FORM MAY ALSO BE ACCEPTED AS LONG AS THE RESERVE ASSETS THEMSELVES MEET THE STATUTORY REQUIREMENTS. THIS PROVISION LEAVES ROOM FOR FUTURE CHAIN-UP OF TRADITIONAL FINANCIAL ASSETS. IN ADDITION, THE ACT EXPLICITLY PROHIBITS THE STABILIZATION OF INTEREST PAYMENTS BY CURRENCY HOLDERS IN ORDER TO PREVENT THE RISK OF “SHADOW BANKING” SIMILAR TO DEPOSITS. THE ISSUER IS REQUIRED TO DISCLOSE ON A MONTHLY BASIS THE AMOUNT OF STABLE CURRENCY IN CIRCULATION AND THE COMPOSITION OF THE CORRESPONDING RESERVES ON THE OFFICIAL NETWORK, AND THE REPORT IS AUDITED BY AN INDEPENDENT ACCOUNTING FIRM, AND THE ISSUER CEO/CFO IS REQUIRED TO SIGN THE ASSURANCE REPORT IN WRITING。

• Regulatory division and balance:THE GENIUS ACT IS IMPLEMENTED IN COOPERATION WITH FEDERAL AND STATE SUPERVISION, NON-BANK ISSUERS NEED TO OBTAIN THE APPROVAL OF THE OCC AND BE SUBJECT TO FEDERAL SUPERVISION, AND SMALL ISSUERS WHO CHOOSE TO OPERATE UNDER STATE SUPERVISION MUST MEET REQUIREMENTS SIMILAR TO THOSE OF THE FEDERATION. AT THE SAME TIME, THE FED IS AUTHORIZED TO TAKE ENFORCEMENT ACTION AGAINST STATE-SUPERVISED STABILIZERS IN “SPECIAL EMERGENCIES” TO PROTECT AGAINST SYSTEMIC RISKS. THIS “TWO-TIER REGULATION” MODEL ENSURES THAT THE POTENTIAL IMPACT OF LARGE-SCALE STABLE CURRENCY ISSUANCE ON THE FINANCIAL SYSTEM IS DIRECTLY CONTROLLED BY CENTRAL REGULATORS, WHILE SMALL INNOVATIONS CAN BE DEVELOPED IN STATE-CONTROLLED SANDBOXES, THEREBY SAFEGUARDING FINANCIAL STABILITY AND ENCOURAGING INNOVATION。

• Prohibition of commercial companies:The Act also specifically prohibits certain types of enterprises from issuing stable coins. For example, commercial companies of a non-financial nature (especially large technology companies) are not allowed to issue stabilization currency. This is aimed at avoiding the direct issuance of currencies by platform technology companies that bypass financial regulation by billions of users, thus preventing the impact of “digital monopolies” on financial sovereignty and competition. This provision can be seen as a response to the launch of the Libra (later known as Diem) project on Facebook, which clearly delineates the boundaries of the technological giant in the digital currency field。

• Clearly stable currency is not a securities or commodityNOT REGULATED BY SEC OR CFTC, BUT BY THE BANKING REGULATORY SYSTEM. THIS PROVIDES AN ANSWER TO THE QUESTION OF THE REGULATORY ATTRIBUTION THAT HAS PLAGUED THE MARKET FOR SO LONG: THE DOMINANT DOLLAR IS STABLEUSDCI don't knowUSDTThe delay would be regarded as similar to prepaid payment instruments rather than securities, thus avoiding the inappropriate application of complex securities law requirements。

 

2. MARKET IMPACT OF THE GENIUS ACT

Source:https://defilama.com/stablecoins 

 

THE INTRODUCTION OF THE GENIUS BILL WAS SEEN AS A SIGNIFICANT BOOST TO MARKET CONFIDENCE IN THE STABLE CURRENCY. AFTER THE PUBLICATION OF THE LEGISLATION, THERE WAS A POSITIVE REACTION TO THE STABLE CURRENCY MARKET: AS OF DECEMBER 2025, THE GLOBAL MARKET VALUE OF THE STABLE CURRENCY HAD EXCEEDED $300 BILLION. THIS INCREASE IS PARTLY DUE TO THE WARMING OF THE ENTIRE ENCRYPTED MARKET, MORE DIRECTLY BECAUSE INVESTORS EXPECT THAT THE LANDING OF REGULATIONS WILL BE IN THE RIGHT CURRENCY, INSTITUTIONAL INVESTORS ARE BEGINNING TO USE AND HOLD STABLE CURRENCY MORE COMFORTABLY TO TRADE AND PAY, AND SOME TRADITIONAL FINANCIAL INSTITUTIONS ARE ALSO ENGAGED IN STABILIZING CURRENCY OPERATIONS。

The JP Morgan research department predicts that the market value of the global stable currency in the coming years could impact on the scale of $500 billion to $750 billion. According to the media, “2025 is a true year of stability”. Under the legal umbrella, the dollar stabilization currency will accelerate integration into mainstream finance. For example, payment giants such as Visa and MasterCare have started piloting stabilization currency to settle cross-border transactions; some banks are considering issuing stabilization currency for their own brand or working with existing distributors to provide compliance digital dollar services to clients。

The Digital Asset Market Structure Bill: Clarity Act

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

 

Following the stabilization of currency legislation, Congress ' s legislation on a broader network of encrypted asset market structures is moving forward rapidly. The focus is on the Digital Asset Market Clearing Bill 2025 (Digital Assembly Market Strategic Act of 2025) introduced and passed by the House of Representatives, known as the CLARITY Bill. The bill, which was drafted jointly by the Chamber of Deputies Committee on Agriculture and the Financial Services Commission, is seen as a package to clarify the boundaries of regulation of digital assets。

ON 17 JULY 2025, THE CARITY BILL WAS PASSED IN THE HOUSE OF REPRESENTATIVES BY 294 VOTES IN FAVOUR AND 134 AGAINST. THE BILL WAS THEN SENT TO THE SENATE FOR CONSIDERATION. HOWEVER, ONLY A FEW DAYS AFTER THE CHAMBER OF DEPUTIES PASSED, THE SENATE BANKING COMMISSION ALSO PRODUCED A DRAFT ENCRYPTED MARKET THAT WAS PARALLEL TO CLARITY. THE SENATE COMMITTEE ON AGRICULTURE AND THE BANKING COMMISSION HELD SEPARATE DISCUSSIONS AND PUBLIC CONSULTATIONS ON DIGITAL ASSET LEGISLATION WITHIN THEIR RESPECTIVE JURISDICTIONS, AND ARE PLANNING TO VOTE IN 2026 ON MERGING THE TWO SETS OF PROGRAMMES INTO A UNIFIED SENATE BILL。

 

1. Core Bill: Three Classifications Regulatory System

THE CLARITY ACT SEEKS TO ADDRESS A FUNDAMENTAL PROBLEM THAT HAS PLAGUED THE INDUSTRY FOR SO LONG — WHO IS IN CHARGE OF ENCRYPTED ASSETS? TO THIS END, THE ACT ENVISAGES A “TRIPLE-BASED” FRAMEWORK THAT CLASSIFIES DIGITAL ASSETS INTO THREE CATEGORIES AND DEFINES THE RESPONSIBILITIES OF SEC (THE SECURITIES AND EXCHANGE COMMISSION) AND CFTC (THE COMMODITY FUTURES AND EXCHANGE COMMISSION) ACCORDINGLY:

• Digital commodities:It refers to digital assets “inherent to the block chain system itself, the value of which depends directly on the function or service of the chain”. In short, it is based on the block chain network itself, on payment, governance, access services or functional tokens as incentives, such as bitcoinEthercotWait. The Act expressly excludes items that are not digital, including securities and their derivatives, stable currency, bank deposits, fund shares, collections, etc. This classification corresponds to decentralised, non-profit-producing tokens designed to recognize their commodity properties。

• Investment contract assets:THIS IS A NEW CONCEPT CREATED BY THE ACT, WHICH REFERS TO “DIGITAL GOODS ISSUED OR SOLD THROUGH INVESTMENT CONTRACTS”. GENERALLY SPEAKING, IT IS THE COINS SOLD IN THE CONTEXT OF FUND-RAISING — SUCH AS THOSE SOLD TO INVESTORS BY THE PROJECTOR THROUGH THE FIRST ISSUANCE OF THE ICO. IN ADDITION, THE BILL ESTABLISHES A “CHAIN MATURITY” IDENTIFICATION MECHANISM THAT ALLOWS THE PROJECTOR OR DECENTRIZED COMMUNITY TO APPLY TO THE REGULATOR TO CERTIFY THAT A SECTOR BLOCK CHAIN NETWORK HAS MATURED, THEREBY FORMALLY CONFIRMING THAT ITS TOKEN IS NO LONGER PART OF THE PORTFOLIO. THE CRITERIA FOR NETWORK MATURITY INCLUDE: THE AVAILABILITY OF FUNCTIONAL FEATURES AND SERVICES IN THE BLOCK CHAIN, THE OPEN SOURCE OF CORE CODES, TRANSPARENT RULES THAT ARE PREDETERMINED AND CANNOT BE TAMPERED WITH UNILATERALLY, AND THE ABSENCE OF ANY SINGLE SUBJECT CONTROLLING MORE THAN 20 PER CENT OF THE COIN SUPPLY. THIS DESIGN IS SIMILAR TO THE TRADITIONAL IPO LOCK-IN PERIOD, WHERE THE PROJECT IS SUBJECT TO SECURITIES REGULATION TO PROTECT INVESTORS AT AN EARLY STAGE, BUT ONLY AFTER THE NETWORK HAS BEEN FULLY DECENTRALIZED WILL THE PROJECT WITHDRAW FROM STRICT REGULATION AND CONVERT CURRENCY TO FREE-FLOWING GOODS。

• Licence to pay stable currency:SIMILAR TO THE AFOREMENTIONED DEFINITION OF THE GENIUS ACT, THE CLARITY ACT CLASSIFIES AS ONE THE SEDENTARY CURRENCY, WHICH IS USED TO PAY FOR STABILITY. SUCH ASSETS ARE LINKED TO A LEGAL CURRENCY AND ISSUERS ARE SUBJECT TO THE SUPERVISION OF THE STATE OR FEDERAL AGENCIES AND UNDERTAKE TO REDEEM THEM AT FIXED VALUE. THE STABILIZATION CURRENCY IS NOT ATTRIBUTED TO SECURITIES OR COMMODITIES UNDER THE CLARITY FRAMEWORK BUT IS TREATED AS A REGULATED PAYMENT INSTRUMENT。

THROUGH THE ABOVE CLASSIFICATION, THE CLARITY ACT SEEKS TO CLARIFY THE REGULATORY BOUNDARIES OF THE SEC AND THE CTC. IN PARTICULAR, THE AREA OF DIGITAL GOODS IS MAINLY UNDER THE JURISDICTION OF THE CFTC, THE ISSUANCE OF INVESTMENT CONTRACT ASSETS IS UNDER THE SUPERVISION OF THE SEC AND THE MONITORING OF THE STABILITY CURRENCY BY THE BANKING REGULATOR. THIS ARRANGEMENT ENSURES EACH DIVISION: THE SEC NO LONGER TREATS ALMOST ALL TOKENS AS SECURITIES, BUT FOCUSES ON COMBATING IRREGULARITIES IN THE FINANCING DISTRIBUTION CHAIN; AND THE CTC FILLS THE GAPS IN THE PAST THAT LACKED DIRECT JURISDICTION IN THE ENCRYPTED SPOT MARKET AND COULD ACTIVELY GOVERN TRADING MARKET MANIPULATION。

 

2. Access to exchanges and practitioners

IN ADDITION TO DEFINING ASSET ATTRIBUTES, THE CLARTY ACT PROVIDES CLEAR GUIDELINES FOR COMPLIANCE BY MARKET INTERMEDIARIES AND PARTICIPANTS。

• Encryption ExchangeThe Act requires that a digital goods trading platform must be registered as a “digital goods exchange” in the CTC, and adheres to a number of core principles, including the establishment of currency standards (to ensure that the issuer of the registered currency has complied with the necessary information disclosures, such as open source codes, distribution and economic models, etc.), transaction monitoring, conflict of interest, financial security and system security. Transactions require the segregation of customer assets from their own assets, ensuring that customer funds are held in a qualified digital asset custodian, providing adequate risk disclosure and joining futures industry associations for self-regulatory management. The Act even imposes restrictions on the innovative business of exchanges, such as allowing exchanges to provide pledge (Staking) services to enhance the security of the block chain network, but not forcing users to participate or to mix with their own trading activities to prevent conflicts of interest。

• Brokers/dealersTHE BILL BREAKS THE BARRIER BETWEEN DIGITAL ASSETS AND SECURITIES OPERATIONS UNDER THE CURRENT SYSTEM AND ENCOURAGES BOND AND EXCHANGE OPERATORS TO INCLUDE DIGITAL ASSETS IN THEIR OPERATIONS. THE ACT REQUIRES THOSE ENGAGED IN DIGITAL COMMODITY BROKERING TO REGISTER AS DIGITAL COMMODITY BROKERS AND MEET THE CORRESPONDING CAPITAL, REPORTING AND CUSTOMER PROTECTION REQUIREMENTS. THE SEC IS REQUIRED TO ALLOW ITS REGISTERED VOUCHER, EXCHANGE OR ALTERNATIVE TRADING SYSTEM (ATS) TO HANDLE TRANSACTIONS AND HOSTING OF DIGITAL GOODS AND STABLE CURRENCY, AND NOT TO REFUSE ITS APPLICATION FOR REGISTRATION OR EXEMPTION ON THE BASIS THAT THE PLATFORM PROVIDES BOTH SECURITIES AND DIGITAL ASSETS. THE SEC HAS ALSO BEEN GIVEN THE COMPETENCE TO USE EXISTING IMMUNITIES, WHERE APPROPRIATE, TO GRANT SPECIAL EXEMPTIONS FOR CERTAIN DECENTRIZED FINANCIAL ACTIVITIES IN ORDER TO AVOID UNDUE REGULATION TO STIFLE NEW DEVELOPMENTS。

• Developer:IT IS ALLEGED THAT THE FINAL TEXT OF THE CLARITY ACT EXPRESSLY STATES OR FEDERAL PERMITS ARE NOT REQUIRED FOR PERSONS ENGAGED IN NON-CUSTODIAL ACTIVITIES SUCH AS BLOCK CHAIN DEVELOPMENT, NODAL OPERATION, WALLET DEVELOPMENT, ETC. THIS PROVISION, WHICH IS ESSENTIAL FOR THE DEVELOPMENT OF THE ECOLOGY OF THE UNITED STATES BLOCK CHAIN, MEANS THAT PURE TECHNOLOGY PROVIDERS WILL NOT BE BURDENED WITH HEAVY REGULATORY OBLIGATIONS BECAUSE OF THE FINANCIAL ACTIVITIES OF USERS IN THE CHAIN, THUS CLEARING THE SHADOW OF LEGAL UNCERTAINTY THAT HAD PREVIOUSLY GRIPPED MINERS, NODES AND SMART CONTRACT DEVELOPERS。

 

3. Market impact: expected gains and increased volatility

Source:https://coinmarkcap.com/currences/bitcoin/ 

 

AS THE HOUSE OF REPRESENTATIVES DECLARED MID-JULY 2025 AS “ENCRYPTED WEEK”, MARKET INVESTORS LOOKED UP TO THE HEAT AS THEY WERE PREPARING TO VOTE ON THE CARITY BILL, THE ANTI-CBDC CLAUSE AND THE STABILIZATION CURRENCY BILL. INDEED, AN IMPORTANT CATALYST FOR THE STRENGTH OF THE ENCRYPTED MARKET IN THE MIDDLE OF THE YEAR IS THIS GOOD NEWS: BITCOIN PRICES HIT THE BACKLASH IN JULY, WITH A HIGHER MARKET VALUE RATIO, AND A PHASED RISE IN THE CONCEPT OF BLOCK CHAINS IN MANY PARTS OF THE US MAINLAND. FOLLOWING THE ADOPTION OF THE LEGISLATION, THERE WAS A GENERAL PERCEPTION WITHIN THE INDUSTRY THAT MANY YEARS OF UNRESOLVED ISSUES IN THE UNITED STATES ENCRYPTION INDUSTRY HAD FINALLY SEEN THE DAWN OF SOLUTIONS AND THAT THERE HAD BEEN AN INCREASED WILLINGNESS TO ENTER TRADITIONAL INSTITUTIONS. THE NEW YORK STOCK EXCHANGE AND NASDAQ TRADING PLATFORMS HAD PREVIOUSLY SET ASIDE DIGITAL ASSET TRADING OR HOSTING SCHEMES DUE TO REGULATORY UNCERTAINTY, BEGINNING TO REASSESS THE POSSIBILITY OF START-UP。

HOWEVER, BECAUSE OF THE SLOW AND UNCERTAIN PACE OF POLICY ADVANCEMENT, MARKETS HAVE ALSO EXPERIENCED NEWS-DRIVEN BOOMS AND DROPS. FOR EXAMPLE, AFTER THE CHAMBER OF DEPUTIES PASSED THE CARITY BILL AND SUBMITTED IT TO THE SENATE, INVESTORS HAD HOPED THAT THE SENATE WOULD QUICKLY FOLLOW UP SO THAT THE BILL WOULD ENTER INTO FORCE BEFORE THE END OF THE YEAR AND MOVE FORWARDBitcoinPrices climbed to a historic high of about $126,000 in early October. But in mid-October, when the President suddenly announced a new wave of tariff shocks to China, the global market became more risky, bitcoin fell with the stock market, and the leverage position stoked the largest one-day record in the history of encrypted liquidation ($19 billion). The negative effects of macro-factors have since made it difficult for the encryption market to stand alone. Bitcoin prices recorded the largest single-month decline since 2021 in November and still hovered below $90,000 to date. This shows that encrypted assets, as risky assets, are heavily influenced by macroeconomic and large-scale sentimentI don't knowThe coefficient associated with the Bitcoin and PIN 500 index increased to 0.5 in 2025, well above the 0.29 in 2024。

 

Other representative encryption policies

In addition to the heavy-weight legislative project, the United States Government took important action in 2025 on a number of encryption-related policies to further improve the encryption ecological compliance environment。

 

ANTI-CBDC ACT: PRESERVATION OF FINANCIAL PRIVACY

When the Trump government came to power, there was a 180-degree shift in attitude towards the central bank digital currency (CBDC). In January 2025, President Trump signed an executive order directly prohibiting any federal agency from promoting, issuing or publicizing CBDC. This must have been further reinforced by the legislature: the Chamber of Deputies added to the CLARITY bill title VI, “Anti-CBDC Control State Act”. The central element is to legally prevent the Federal Reserve from introducing CBDC accounts or products targeted at individual consumers, emphasizing the importance of privacy and freedom and preventing Governments from using CBDC to obtain citizen transaction data. The bill was voted on and passed by the House of Representatives separately during the “encrypted” week in 2025 and, although the Senate had not yet completed its consideration, the United States door for the introduction of the CBDC was effectively closed, given the strong opposition of the new Government and the House leadership。

PROPONENTS BELIEVE THAT BANNING CBDC HELPS TO SAFEGUARD CITIZENS ' FINANCIAL PRIVACY AND PRIVATE SECTOR INNOVATION. BECAUSE ONCE THE CBDC WAS ISSUED, THE GOVERNMENT WOULD BE ABLE TO MONITOR AND EVEN RESTRICT THE USE OF INDIVIDUAL FUNDS IN REAL TIME, CONTRARY TO THE FREE MARKET AND THE RIGHT TO PRIVACY EMPHASIZED BY THE UNITED STATES. IN THIS CONTEXT, THE FEDERAL RESERVE SIGNIFICANTLY SLOWED DOWN THE DIGITAL DOLLAR RESEARCH PROCESS IN 2025, FOCUSING ONLY ON WHOLESALE (BANKING) CBDC. THIS MEANS THAT THE PRIVATE SECTOR WILL DOMINATE THE DIGITAL DOLLAR PROCESS AND IS IN LINE WITH THE POLICY DIRECTION OF THE GENIUS ACT TO ENCOURAGE BANKS AND COMPLIANCE AGENCIES TO ISSUE STABILIZATION CURRENCY。

 

2. Repeal of DeFi ' s stringent declaration rules

As early as 2021, the United States Infrastructure Investment and Employment Act (IIJA) contained a controversial provision requiring the broadly defined “digital asset broker” to report user transactions to the IRS. This definition is too broad and may consider miners, nodes, smart contract developers in the centralized financial sector as “brokers”, forcing them to enforce onerous customer identification (KYC) and tax reporting obligations. In 2025, the Houses of Congress passed Joint Resolution No. 25 (H.J. Res. 25), signed into law by President Trump on 10 April 2025 (Public Law 119-5). The Act formally repeals the rules of the Ministry of Finance for the implementation of article 80603 of IIJA (Reporting of digital asset brokering information)。

After repealing the rule, IRS made it clear that the DeFi platform, which operates purely automatically on block chains and does not provide for the transfer of French currency, does not require the submission of 1099-DA transaction reports to tax authorities and does not require the compulsory collection of user identification information. Centralized exchanges and service providers (carrying of customer assets and providing the exchange of French currency) are still required to comply with information reporting obligations: They will record user digital asset transactions from 1 January 2025 and send new forms 1099-DA to users and IRS in early 2026. This means that United States-owned exchanges such as Coinbase, Kraken and others are still on schedule, but decentrization agreements such as Uniswap are exempted. In addition, payment processors and agencies that regularly issue or redeem their own currency continue to be regarded as “brokers” who are required to fulfil their reporting obligations, mainly for stable money distributors with centralized subjects。

 

3. Transfer of personnel and enforcement to regulatory bodies

In addition to legislation and macro-policies, the notable improvement in the United States encryption regulatory environment in 2025 was also reflected in the change in the style of personnel adjustment and enforcement of regulatory bodies. Upon taking office, the new Government appointed a group of officials who are open to encryption. The most important of these was the appointment of Paul S. Atkins, former SEC Commissioner, as Chairman of the Securities and Exchange Commission. Upon taking office, Atkins launched an internal project, code-named Project Crypto, which envisages the establishment of formal token classification standards and guidelines for digital assets, and the establishment of a “Crypto 2.0” task force. The task of the new working group is to assist the Commission in developing a “comprehensive and clear regulatory framework” and to make more careful use of law enforcement resources。

The adjustment of personnel was accompanied by a rapid shift in the orientation of SEC law enforcement. Since Trump took office in early 2025, the SEC has suspended or withdrawn approximately 60 per cent of the encryption-related investigations and proceedings. Some high-profile cases, such as proceedings against Ripple and enforcement actions against the Currency Exchange, showed significant signs of easing. For example, in July 2025, the SEC entered into a settlement with Ripple to withdraw the charges against its senior officials; the investigation into Bian was also reportedly not actively pursued. The four-year investigation into the decentralised lending platform Aave was even concluded without any punitive measures. The changes in the SEC have greatly eased industry pressure, and the new deregulation has allowed them to shift the focus back from litigation. This contributed in part to the recovery in the market in 2025 and to the absence of large-scale flight from United States projects。

At the same time, bank regulators with a strong attitude towards the involvement of banks in encryption have begun to moderately untie. The new Minister of Finance, Scott Bessent, welcomed digital assets. The Acting Chairman of the Federal Deposit Insurance Corporation (FDIC), Travis Hill, issued a public statement in January committing to “a more transparent approach to financial science and technology cooperation and digital asset monetization” and considering issuing additional guidance to clarify the way banks engage in digital asset operations. In 2025, the Fed, OCC and others withdrew a number of previously issued restrictive declarations regarding the conduct of bank encryption operations, replacing them with case-by-case reviews of specific operations. As a result, some small and medium-sized banks in the United States have reconsidered the provision of account services to encrypted companies and cooperation between banks and encrypted enterprises has begun to warm up. The situation is now expected to improve as encryption companies had difficulty accessing basic banking services following the collapse of earlier “encrypted friendly banks”, including Signature and Silvergate。

 

4. Executive Orders and Bitcoin Reserve Exploration

ON 23 JANUARY, PRESIDENT TRUMP SIGNED AN EXECUTIVE ORDER ENTITLED “STRENGTHENING UNITED STATES LEADERSHIP IN DIGITAL FINANCE SCIENCE AND TECHNOLOGY”, DECLARING “SUPPORT FOR RESPONSIBLE GROWTH AND USE OF DIGITAL ASSETS, BLOCK CHAIN TECHNOLOGIES AND RELATED TECHNOLOGIES IN ALL SECTORS OF THE ECONOMY” AS A STATE POLICY. THE DECREE ESTABLISHED THE PRESIDENTIAL DIGITAL ASSETS MARKET WORKING GROUP, WHICH INCLUDES MORE THAN A DOZEN HIGH-RANKING OFFICIALS, INCLUDING THE CHAIRMAN OF THE SEC, THE CHAIRMAN OF THE CTC, THE MINISTER OF FINANCE, THE MINISTER OF COMMERCE AND THE MINISTER OF JUSTICE, AND MAY INVITE DIGITAL ASSET LEADERS FROM THE PRIVATE SECTOR TO PARTICIPATE IN CONSULTATIONS. THE PRESIDENT REQUESTED THE WORKING GROUP TO SUBMIT ITS REPORT WITHIN 180 DAYS, TO PROPOSE A COMPREHENSIVE REGULATORY FRAMEWORK FOR FEDERAL DIGITAL ASSETS AND TO ASSESS THE POSSIBILITY OF ESTABLISHING A NATIONAL “DIGITAL ASSET RESERVE”。

Trump himself has shown a strong interest in the establishment of a national Bitcoin reserve and hopes to use the Government ' s existing Bitcoin hold (law enforcement confiscation proceeds) as a basis for exploring the diversification of some national reserves into digital assets. On 6 March, he issued further executive order 14233 instructing the establishment of strategic bitcoin reserves and United States digital asset inventories。

It can be argued that the official United States embraces bitcoin at the governmental level, rather than being an economic decision-making and more a geostrategic consideration: To ensure the dominance of the dollar in the future digital economy and to guard against the growth of other countries ' digital currencies or gold. While this idea is controversial in the eyes of traditional financial officials, it has moved from science fiction to reality at least in 2025。

Taken together, these policy initiatives in 2025 demonstrated the United States Government ' s all-round embrace of encryption innovation: establishing rules through legislation, changing the regulatory tone through personnel adjustments, and setting strategic directions through executive orders. Such top-level design and robust implementation send a clear signal to the global encryption industry that the United States is actively involved and leads this financial innovation. While more regulated markets will also reduce some speculative bubbles, in the long run they will attract larger and more rational inflows of capital, and it is expected that encrypted assets will gradually become a regular feature of global asset allocation rather than an alternative asset that wanders around grey areas。

 

V. Looking ahead to 2026: New scenarios and industry changes

Looking ahead to 2026, encryption regulation in the United States will continue to deepen and refine along the tone laid in 2025. The following are areas of concern:

 

1. Landing of legislation and detailed rules

The digital asset market structure legislation is expected to be finalized by 2026. Two Senate committees have planned to consolidate their respective drafts before the end of the year and to move forward with a full House vote in early 2026. In view of the large percentage of support for the Chamber of Deputies version and the cooperation of the executive branch, there is considerable hope in industry that the Senate bill will be passed。

ONCE THE SENATE AND THE SENATE HAVE AGREED ON THE FINAL TEXT, THE CLARITY BILL AND RELATED PROVISIONS (E.G. ANTI-CBDC) MAY BE FORMALLY SIGNED INTO LAW IN THE FIRST HALF OF 2026. SEC AND CFTC WILL SOON ENTER A BUSY RULE-MAKING PERIOD. IN THIS PROCESS, INDUSTRY ASSOCIATIONS AND LARGE ENTERPRISES ARE INVOLVED IN THE GAME FOR THEIR OWN BENEFIT。

The final new details will determine the specific direction of market participants in adjusting their business models. For example, if exchange registration processes and requirements are relatively liberal and transparent, we may see Coinbase and others like US exchanges taking the lead in applying for CFTC registration, or even overseas exchanges considering applying for US plates。

 

2. Conformity ecological formation with accelerated institutional entry

When the regulatory framework is clear and the accompanying rules gradually land, the encryption compliance ecology of the United States will begin to take shape. Legally operated exchanges, trustees, issuers, stable currency issuers, etc. will continue to be formally registered or licensed by the regulatory authorities, and institutional investor participation will rapidly increase。

Currently, large asset management companies (e.g., Belet, Fuda, etc.) have brought some of their traditional funds to the market through products such as ETF. As the 2026 regulations become clearer, these institutions may be more diversified, such as the establishment of encrypted hedge funds, the provision of custodianship and derivative transactions. For example, Wall Street banks like Goldman Sachs may introduce digital asset trading and hosting services. In the area of stabilization currency, eligible bank subsidiaries, such as Morgan Chase, can issue payment stabilization currency and provide a path for non-soldier institutions, such as PayPal, to approve the issuance of stabilization currency through the OCC。

The large-scale entry of traditional institutions will lead to increased funding and more mature risk management, long-term help to reduce the volatility of encrypted markets and increase market depth and pricing efficiency。

 

3. Industry competition and card shuffles

The advent of the era of compliance also meant that the industry was shuffled. Those who are willing and able to meet regulatory requirements will win, and those who resist regulation or fail to meet standards will be eliminated. For example, some compliance pioneers such as Coinbase are expected to further expand their market share; and some trading platforms without any licence, with a grey business model, will have difficulty continuing to serve United States clients。

SIMILARLY, IN THE CASE OF ENCRYPTION PROJECTS, HIGH-QUALITY PROJECTS PREFER TO ISSUE TOKENS FOR COMPLIANCE IN THE UNITED STATES. IF, IN 2026, THE SEC HAD SUCCESSFULLY ESTABLISHED A SYSTEM OF TOKEN REGISTRATION EXEMPTIONS, WE MIGHT HAVE SEEN THE FIRST TOKENS REGISTERED WITH THE SEC ISSUED FOR PUBLIC SALE AND MONITORED BY REGULATORY BODIES. THIS WOULD BE A REVOLUTIONARY CHANGE, MEANING THAT ENCRYPTED START-UPS CAN BE FINANCED IN COMPLIANCE AS LISTED COMPANIES IPO DO, AND THAT INVESTORS ALSO ENJOY THE CORRESPONDING TRANSPARENCY OF INFORMATION AND LEGAL PROTECTION。

At the same time, a number of emerging models in the area of decentrization will grow further, as safe harbour provisions protect developers. For example, de-centre exchange, lending, derivative platforms may become more dynamic after clear exemption borders have been secured and gradually linked to traditional finance。

 

4. Government strategies and international competition

AT THE GOVERNMENT LEVEL, THE TRUMP GOVERNMENT WILL CONTINUE TO PROMOTE THE STRATEGIC GOAL OF “MAKING THE UNITED STATES A GLOBAL LEADER IN ENCRYPTION AND BLOCK CHAIN INNOVATION” TO ENSURE VOICE IN INTERNATIONAL STANDARD-SETTING, INCLUDING THE DESIGNATION OF FATF STANDARDS FOR THE REGULATION OF DIGITAL ASSETS, CROSS-BORDER PAYMENT FRAMEWORKS, ETC. IN 2026, THE UNITED STATES MAY SEEK TO STRENGTHEN DIALOGUE AND COOPERATION WITH ADVANCED REGULATORY ECONOMIES SUCH AS EUROPE, THE UNITED KINGDOM AND JAPAN, LEADING TO A DEGREE OF REGULATORY EQUIVALENCE OR MUTUAL RECOGNITION. THIS WOULD FACILITATE CROSS-BORDER OPERATIONS AND ALLOW LEGITIMATE COMPLIANCE ENCRYPTION COMPANIES UNHINDERED ACCESS TO MAJOR MARKETS。

At the same time, the United States may be increasingly integrating encryption into its financial diplomacy agenda and promoting the use of dollar stabilization currencies in developing countries to consolidate its position. By late 2025, the new finance minister, Becent, praised the liquidity of the United States Treasury debt market and noted that stable currency growth was increasing demand for United States debt. This suggests that official recognition of the potential benefits of encryption products, such as stable currency, to United States financial markets has begun。

 

5. Risks and challenges

Of course, even with bright prospects, 2026 is not without risks. At the macro level, the United States economy may face new uncertainties, such as changes in interest rate cycles, geo-conflicts, and external shocks to encrypted markets。

At the same time, good regulation does not mean a relaxation of vigilance. In the event of a major encryption security incident in 2026, the chain of custody may quickly tighten its policy and severely punish the parties involved for example. This places greater demands on industry self-regulation: enterprises must benefit from policy dividends while effectively enhancing safety and control。

The political cycle in the United States is also noteworthy. The year 2026 is the mid-term election year for the National Assembly, and if the political situation changes again, it is difficult to conclude whether the current state of encryption and friendship will be reversed. However, during the 2025-2026 cycle at least, there was a consensus between the two parties on the broader direction of supporting rational regulation and encouraging innovation。

 

Concluding remarks

Looking back at 2025, the United States experienced dramatic changes ranging from confusion to clarity, from passivity to active regulation of encrypted currency. This year, Congress and the Government joined forces to launch a series of landmark initiatives, such as the currency stabilization bill and the market structure bill. In the short term, these policy messages have significantly affected market sentiment and behaviour. The market continues to fluctuate sharply when macro-profits are added. However, the more far-reaching implications lie in changes in industry ecology and patterns: clear rules clear the barriers to compliance, traditional financial institutions secure entry, innovators are no longer deterred by regulatory uncertainty, and the United States is back to being a hotbed for encrypted entrepreneurship and finance。

While regulatory clarity has improved, the industry itself must focus more on compliance and wind control to match the trust of regulators. Only through a virtuous interaction between regulation and industry can encryption technology truly integrate into the economy and unleash its transformative potential. For investors, policy direction needs to be closely followed, as regulation is becoming an important variable driving the trend of encrypted markets. Better policies not only lead to higher prices, but, more importantly, lower long-term risk premiums and increase the intrinsic value and sustainability of assets。

Looking ahead, United States regulatory exploration will provide a valuable global example of how to maximize the dynamism of digital finance innovation while maintaining financial stability and security. It is foreseen that the encryption industry will continue to move forward on a more solid legal basis in 2026, and the United States is expected to consolidate its position as a global centre for encryption capital and technology. There may also be a ripple, but the direction is clear: encrypted assets will move out of the grey area and will participate in shaping the future financial landscape。

About us

Hotcoin ResearchAs the core investment agency of the Hotcoin Exchange, it is committed to transforming professional analysis into your operational tool. We've analyzed the market for you through the Weekly Insight and the Insight, and we've identified potential assets and reduced trial error costs through the exclusive " Hot Currency Selecting " (AI+ Dual Screening by Experts). Every week, our researchers will also meet you face-to-face, reading hot spots, predicting trends. We believe that warm company and professional guidance can help more investors cross the cycle and take advantage of the value opportunities of Web3。

Risk tip

The encrypted currency market is more volatile and investments carry risks themselves. We strongly recommend that investors invest in strict risk management frameworks based on a full understanding of these risks to ensure financial security。