Introduction
The regulatory landscape for cryptocurrencies and digital assets in the United States is undergoing significant changes with developments at the executive, agency, and legislative levels. The presidential administration promised change, guidance, and clarity to promote innovation and dominance in digital asset markets. This post examines the current state of crypto regulation in America, as well as what businesses and investors can expect in the near future.
Presidential Administration Framework
On January 23, 2025, President Trump issued Executive Order No. 14178 “Strengthening American Leadership in Digital Financial Technology” laying out the administration’s position on cryptocurrencies and digital asset markets, and establishing the Presidential Working Group on Digital Asset Markets.[1] The Working Group was formed to address the growing need for regulatory clarity and to encourage “responsible growth” of digital assets while ensuring the U.S. maintains its leadership in global finance.
The Working Group published a report on July 17, 2025, defining specific administration priorities, desires, and proposals. The report calls for technology-neutral regulations, a consistent taxonomy for digital assets, and clear definitions of which agencies have jurisdiction over certain crypto-related facets. Additionally, the report takes a clear stance against the development of a Central Bank Digital Currency. Instead, the administration favors decentralization and private stablecoin innovation to support the U.S. dollar. Lastly, the report focuses on establishing regulations ensuring law-abiding users have fair access to digital assets without undue censorship or arbitrary restrictions.
As the Working Group’s recommendations seek to align federal agencies, businesses and consumers may see more consistent and predictable guidelines in the digital asset market and less “regulation by enforcement.”
Agency Responses
The Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) have issued responses and initiatives in response to the President’s executive order and the Working Group report. On August 4, 2025, acting CFTC Chairman Caroline D. Pham announced the launch of an initiative for trading spot crypto asset contracts listed on a CFTC-registered futures exchange as her first action in a “crypto sprint.”[2] This initiative will create a federal-level framework for spot crypto asset trading and is taking input from interested stakeholders until August 18, 2025.
The CFTC has also recently completed public comment periods on the benefits and risks of 24/7 trading of CFTC-regulated derivatives and the use of perpetual contracts in the derivatives markets. Both concepts are key crypto market innovations and would provide tools for further innovation.
Further, the CFTC took the step of withdrawing outdated staff advisories that imposed requirements on the listing of digital asset derivatives and the clearing of transactions in such contracts through a derivatives clearing organization.[3]
The CFTC has been clear that it will work hand-in-hand with the SEC to ensure the U.S. becomes “the crypto capital of the world.” This may include joint rulemaking between the CFTC and SEC so that the agencies can align their efforts and reduce duplicative compliance burdens and clarify which assets fall under which agency.[4]
SEC Chairman Paul Atkins has articulated his vision to “modernize the securities rules and regulations” for on-chain markets, aiming to move away from “regulation by enforcement” and toward clear, proactive guidance.[5] He has pledged to provide clear safe harbors, streamline token offerings, and update legacy frameworks to better accommodate digital assets.
The SEC will focus on ensuring clear and simple rules for digital assets that may be classified as securities, including stablecoins and tokenized equities.[6] Although the SEC will remain committed to anti-fraud enforcement, Chairman Atkins has emphasized that regulation shouldn’t stifle U.S. markets.[7] The SEC staff have been directed to propose “purpose-fit disclosures” for crypto asset distributions, custody frameworks, and decentralized finance (DeFi) activities.
Chairman Atkins also clarified the SEC’s evolving approach to token classification at the SALT Wyoming Blockchain Symposium, stating that in his view, “very few” crypto tokens should be considered securities under current law.[8] Chairman Atkins downplayed the significance of “decentralization” as a determinative factor, instead focusing on the statutory definition of investment contracts and reiterating his commitment to providing clear, actionable guidance for market participants.[9] This signals a shift away from ambiguous standards, with the SEC prioritizing regulatory certainty and practical advice for businesses and their counsel.
Additionally, the Federal Reserve has also signaled a more open posture toward digital assets. At the Wyoming Blockchain Symposium, Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman both highlighted the Fed’s commitment to engaging with the crypto industry and fostering private sector innovation. Vice Chair Bowman indicated that the Fed is moving to remove reputational risk as a barrier for banks working with crypto firms which is aimed at addressing longstanding “debanking” concerns. The Fed is updating supervisory materials to reflect this new approach and is considering further regulatory changes to provide greater transparency and certainty for market participants.
Key Legislative Developments
Congress has similarly recognized the need for consistent national-level rules to further the administration’s agenda on digital assets. Congress has already acted in a bipartisan manner to pass the GENIUS Act and is currently developing the CLARITY Act.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (the GENIUS Act) was signed into law on July 18, 2025. This Act creates the first comprehensive federal regulatory regime for stablecoin issuers. It requires 100% reserve backing with liquid assets such as U.S. dollars or short-term treasuries.
The GENIUS Act establishes strict requirements for stablecoin issuers. Stablecoin issuers must disclose their reserve composition monthly, are prohibited from paying interest or yield to stablecoin holders, face clear prohibitions on marketing stablecoins in certain ways, and are subject to other market restrictions to prevent consumer confusion. Further, issuers must comply with anti-money laundering requirements and be able to freeze or seize stablecoins when ordered by law enforcement.
While the GENIUS Act sets several restrictions and disclosure burdens on issuers, it provides the significant benefit of predictability, clarity, and guidance in the world of stablecoins. The GENIUS Act is intended to serve as both a floor and a ceiling for issuer and business compliance.
The Digital Asset Market Clarity Act of 2025 (the CLARITY Act),[10] which recently passed the U.S. House of Representatives, is aimed at the division of authority between the SEC and CFTC. The CLARITY Act does this through defining key terms such as “digital commodity exchange,” “digital commodity broker,” and “mature blockchain systems.” The Act importantly clarifies that digital commodities are excluded from the definition of “security” for the purposes of the Securities Act of 1933.
In addition to clarifying definitions and agency authority, the Act imposes consumer protection standards and provides for a statement of provisional registration that a digital commodity platform can file to comply with the Act. However, the Act is clear about which actions are exempt from regulation and do not rise to the level of typical DeFi activities. This gives innovators a more clear and predictable path to compliance.
Recent remarks from key lawmakers and regulators at the SALT Wyoming Blockchain Symposium have reinforced the sense of urgency and bipartisan momentum behind crypto market reform. Senator Cynthia Lummis (R-Wyo.) announced that the Senate is working to deliver comprehensive market structure legislation. Sen. Lummis stated that she expects the Senate’s version of the CLARITY Act to pass the Senate’s Banking Committee by the end of September so that it can move into the Senate Agriculture Committee in October and be sent to the President’s desk by the end of the year.[11] Sen. Lummis stated that the Senate’s bill will capture the bipartisan aspects of the House-passed CLARITY Act, while incorporating provisions from the GENIUS Act. Senate Banking Committee Chair Tim Scott (R-S.C.) echoed this optimism, suggesting that a significant number of Senate Democrats may ultimately support the effort.[12]
By drawing clearer lines between the SEC and CFTC, the CLARITY Act reduces overlapping regulation and confusing enforcement actions. It also encourages legitimate DeFi services while maintaining protection for consumers.
Stablecoin issuers, trading platforms, and DeFi developers stand to benefit from the clarity and legitimacy provided by the GENIUS Act and the CLARITY Act. Stakeholders can expect reduced enforcement risk, clear expectations, and improved consumer acceptance.
Conclusion
America’s approach to crypto regulation is rapidly evolving in a way that prioritizes innovation and entrepreneurship in the market. Businesses and investors will be expected to comply with the new framework and regulations coming out of Congress and the federal agencies as Washington looks to provide the groundwork for the U.S. to strengthen its leadership in digital finance.
For assistance navigating this new landscape or to answer further questions, please reach out to Kyle Gilster, Kip Randall, Casey Kidwell, Jordan Beck or your Husch Blackwell attorney.
[1] Exec. Order No. 14178, Strengthening American Leadership in Digital Financial Technology, 90 Fed. Reg. 8647 §§ 1, 4 (Jan. 31, 2025).
[2] CFTC Release Number 9105-25.
[3] CFTC Release Number 9104-25
[4] CFTC Release Number 9102-25.
[5] SEC Speech, Paul S. Atkins, July 31, 2025.
[6] Id.
[7] Id.
[8] Keely, A. (2025) GOP Sens. See Path to Crypto Market Structure Law this Year, Law360. Available at: https://www.law360.com/banking/articles/2379294?utm_source=shared-articles (Accessed: 29 August 2025).
[9] Id.
[10] H.R. 3633 (2025-2026).
[11] Keely, A. (2025) GOP Sens. See Path to Crypto Market Structure Law this Year, Law360.
[12] Id.