The new crypto rulebook: how US regulation is taking shape | The Paypers

Ari Redbord, Global Head of Policy at TRM Labs, shares his insights on the evolving US crypto regulatory landscape and its implications for consumers, banks, PSPs, and merchants.

A growing ecosystem meets a turning point

Over the last few years, the digital asset ecosystem has moved from the margins into the mainstream. Global banks are piloting tokenized deposits. Payment service providers are rolling out crypto settlement rails. Merchants are beginning to experiment with digital assets for faster and cheaper payments. And consumers, many of whom may never have owned Bitcoin, are increasingly encountering digital assets through the explosive growth of stablecoins.

Stablecoins have become one of the fastest-adopted innovations in financial services, with volumes now rivalling established payment networks. What started as an experiment on the fringes of crypto markets is now a critical bridge between the digital and traditional economies. This rising adoption has made the question of how to regulate crypto in the United States not just a matter of investor protection, but a matter of financial stability, competitiveness, and consumer trust.

From ambiguity to action

For much of the last decade, the US approach to crypto regulation could be described as reactive — enforcement first, clarity later. Agencies issued speeches, guidance, and lawsuits, while Congress debated bills that rarely advanced. The result was a patchwork that left consumers exposed, innovators uncertain, and financial institutions hesitant. That era is beginning to end. In the summer of 2025, the GENIUS Act became law, giving the United States its first comprehensive framework for payment stablecoins. Just weeks later, the White House released its Digital Assets Report, a sweeping agenda built around stablecoins, market integrity, financial innovation, and illicit finance.

The report emphasises the importance of clear and rapid implementation of the GENIUS Act’s reserve, redemption, and compliance requirements, while also charting a path toward broader market structure reform. It calls for consistent oversight of digital assets, a clear division of responsibility between the SEC and CFTC, and frameworks that foster responsible innovation while protecting investors. Beyond market rules, it urges banking regulators to enable the safe integration of digital assets into payments and custody, and stresses the need for strong AML and sanctions controls to preserve financial integrity. Just as importantly, it highlights the role of public-private collaboration in addressing illicit finance in real time. Taken together, the GENIUS Act and the White House report signal that US policy is shifting from fragmented enforcement toward a comprehensive, forward-looking framework for digital assets.

Stablecoins take centre stage

The GENIUS Act is more than just another bill—it is the first ever meaningful crypto law in the US. It establishes the rules of the road for payment stablecoins, requiring high-quality reserves, redemption rights, and robust oversight. Critically, it clarifies that compliant stablecoins are not securities — resolving a debate that has chilled development for years — and places oversight with banking regulators.
For consumers, this means confidence that a token meant to represent a dollar really is backed one-to-one. For banks and PSPs, it provides a supervised pathway to issue or integrate stablecoins into existing services. For merchants, it creates the possibility of faster, cheaper settlement, provided the infrastructure to support payments at scale is built. In short, stablecoins are no longer a speculative crypto product; they are regulated financial instruments with the potential to reshape how value moves.

Market structure in motion

Stablecoins may now have a rulebook, but the rest of the digital asset market is still waiting. Congress is actively debating market structure bills that would delineate the roles of the SEC and CFTC, create disclosure regimes for token issuers, and establish rules for custody and trading platforms. The House has passed a version of this framework, and the Senate Banking Committee has released two discussion drafts. The details are still contested, but momentum is building.

The debates are not just about definitions; they are about the architecture of future markets. Will digital commodities have pathways to trade on regulated platforms without being shoehorned into securities law? How will disclosures for token issuers compare to those for public companies? And what rules will govern custody of digital assets by banks and brokers? The answers will determine how deeply crypto can be integrated into the financial system.

Regulators aren’t standing still

Even as Congress debates market structure, regulators are moving forward with their own initiatives. One of the hallmarks of the White House’s crypto strategy is to press the financial regulators to closely coordinate and move, on what they can, without Congressional action. In response, the SEC has launched a dedicated Crypto Task Force, designed not just to enforce but to clarify. Its mission is to apply the federal securities laws thoughtfully to the crypto market and recommend practical policy measures that both foster innovation and protect investors. Led by Commissioner Hester Peirce, the Task Force is working to draw clearer lines between securities and non-securities, develop tailored disclosure frameworks, and provide realistic paths to registration for crypto assets and intermediaries. It is also focused on ensuring investors get the information they need while reserving enforcement for cases where it is truly necessary. Chair Atkins has emphasised the importance of consistent rules for platforms, custody, and conflicts of interest—issues that go to the heart of market structure.

The CFTC has also taken proactive steps, launching a ‘Crypto Sprint’ earlier this year. Acting Chair Caroline Pham has convened the first-ever Crypto CEO Forum, withdrawn outdated staff advisories, and issued new guidance to improve oversight. The Commission has also coordinated closely with the SEC, including a joint statement on the trading of certain spot crypto asset products. Together, these moves show regulators are not waiting for Congress to act. They are charting a parallel path—updating guidance, convening industry, and building supervisory frameworks that will shape the market even before legislation is finalised.

Implications beyond Washington

These changes matter for everyone in the value chain. For consumers, the combination of the GENIUS Act and ongoing market-structure work means stronger protections, clearer rules, and more trustworthy products. For banks and PSPs, it opens the door to issuing or supporting digital assets within a compliance framework they already understand. For merchants, the prospect of faster settlement and lower transaction costs could be transformative, especially if payment stablecoins achieve scale across existing card and acquirer networks.

Around the world, jurisdictions are moving quickly to balance innovation with safeguards — and the US is now working to catch up. The EU’s MiCA framework is already in force, creating a single licensing regime for exchanges and strict issuance requirements for stablecoins. The UK is rolling out reforms in stages, from promotion rules to custody standards to payment stablecoin oversight. In Asia, Singapore’s MAS, a regulatory leader for more than a decade, has finalised a high-integrity stablecoin framework. Meanwhile, Dubai’s VARA, the first regulator dedicated solely to digital assets, has published detailed rulebooks for the sector. Each of these models reflects the same destination: embedding crypto within the financial system safely — though the US is arriving by a more complex, uniquely American path.

Policy meets practice

While the promise of cryptocurrency is cross border value transfer at the speed of the internet for payments, humanitarian aid and remittances, illicit actors have also sought to leverage the transformative technology for scams, weapons proliferation, terrorist financing, sanctions evasion, and other malign activity.

Policy frameworks alone cannot stop illicit activity or protect victims. That is why TRM Labs launched the Beacon Network, a real-time collaboration platform for exchanges, payments firms, and law enforcement. Beacon enables members to share intelligence instantly and stop illicit funds before they exit the crypto ecosystem. It answers a central challenge flagged in the White House report: the need for rapid public-private information sharing to respond to threats in minutes rather than days.

Beacon is not just compliance — it is operational resilience. And it demonstrates how the regulatory clarity emerging in Washington can be paired with technological collaboration to actually protect consumers and the integrity of financial markets.

Conclusion

The US digital asset landscape is no longer defined solely by uncertainty and enforcement. With the passage of the GENIUS Act, the release of the White House Digital Assets Report, and parallel efforts from the SEC and CFTC, the US is building the foundation of a regulatory framework that matches the scale of adoption already underway. Stablecoins have emerged as the first chapter in this new rulebook, but the debates on market structure, custody, and disclosures will shape how deeply crypto can integrate into the broader financial system.

The global race toward regulatory clarity is well underway, with Europe, the UK, Singapore, and Dubai each advancing their own models. The US path is uniquely complex, but it is converging on the same goal: embedding digital assets into the financial system safely, responsibly, and with the safeguards needed to protect consumers and markets.

The next phase will hinge on execution. Implementation of the GENIUS Act, progress on market-structure legislation, and continued regulatory coordination will determine whether the US can both harness innovation and mitigate risk. Combined with operational initiatives like TRM’s Beacon Network, which translates policy into real-world resilience, these developments signal that the US is moving from a patchwork approach to a comprehensive strategy. The rulebook is being written — and how it is applied will define the role of digital assets in the global economy for years to come.

Things to watch

• How quickly agencies finalise and implement GENIUS Act rulemaking.
• Whether Congress can pass a bipartisan market-structure bill defining securities vs. commodities.
• How the SEC and CFTC evolve coordination on custody, platforms, and spot markets.
• How US rules align — or diverge — from MiCA in Europe and stablecoin regimes in the UK and Singapore.
• Whether networks like Beacon measurably reduce response times and prevent victim losses.

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