The US is poised to reshape its cryptocurrency landscape through a series of legislative and executive actions, including a draft market structure bill, the GENIUS Act for stablecoins, and the creation of federal and state Bitcoin reserves, all aimed at providing regulatory clarity and fostering innovation while drawing mixed international reactions.
Draft Crypto Market Structure Bill
The US Senate committee has taken a pivotal step toward establishing a robust regulatory framework for cryptocurrencies with the release of a draft bill that seeks to classify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). According to the proposed legislation, cryptocurrencies operating on decentralized networks would fall under the jurisdiction of the CFTC, while tokenized projects linked to specific entities would be overseen by the SEC. This bill is expected to pass before the end of 2025, and aims to provide clearer boundaries that have been lacking in the fragmented regulatory landscape.
Lawmakers and industry advocates have highlighted that the confusion regarding whether digital assets are securities or commodities has hampered institutional participation in the market. Senator Cynthia Lummis emphasized the urgency of the bill, stating,
“We will have market structure to the president’s desk before the end of the year.”
Lummis confirmed plans to pass the bill through the Senate Banking Committee by the end of September, aligning with broader global initiatives from powers like the EU and Japan seeking to clarify cryptocurrency regulations.
GENIUS Act and Stablecoin Framework
The recently enacted GENIUS Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, marks a significant milestone in the regulation of stablecoins within the United States. Signed into law by President Trump on July 18, 2025, the act establishes a federal framework requiring stablecoins to maintain a one-for-one backing by U.S. dollars or low-risk assets. This legislation received bipartisan support in Congress, reflecting a collective recognition of the importance of stablecoins in the evolving digital economy.
The International Monetary Fund (IMF) has lauded the efficiency of the US Congress in passing this act, highlighting the balance it strikes between consumer protection and fostering innovation. A federal framework not only aims to protect consumers but also serves as a catalyst for technological advancement in the cryptocurrency sphere. The establishment of clear guidelines around stablecoins is set to encourage growth, make the market safer for participants, and enhance public confidence in these digital assets.
Federal and State Bitcoin Reserves
In a bold move, President Trump signed an executive order establishing the Strategic Bitcoin Reserve, positioning the United States as the largest state holder of bitcoin. This reserve is capitalized with bitcoin already owned by the federal government, reflecting a strategic pivot towards digital assets. Alongside federal initiatives, states like Texas and New Hampshire have enacted similar legislation to create their own Bitcoin reserves, mirroring the federal strategy. Governor Greg Abbott of Texas recently signed the Texas Strategic Bitcoin Reserve into law, allowing the state to hold and acquire bitcoin as a strategic asset.
The administration aims to declare the US as the “crypto capital of the world,” emphasizing a focus on private-sector stablecoins and deliberately avoiding a central bank digital currency (CBDC) to maintain financial stability and individual privacy. This decision has sparked discussions around the implications of state-level reserves and how they might influence both domestic and international economic landscapes.
International Reactions
The US’s crypto regulatory advancements have elicited varied reactions from the global community. While some countries welcome the move as a step towards mainstream acceptance of cryptocurrency, others express skepticism. For instance, the European Central Bank’s President firmly stated,
“Bitcoin will not enter the reserves of any of the central banks of the [EU].”
This remark underscores concerns among EU officials regarding the potential implications on monetary sovereignty. Additionally, countries like India and Pakistan are reassessing their own approaches to cryptocurrencies in light of the evolving landscape.
While some nations express apprehension over the US’s strategy, others, such as Belarus, view it as a signal of growing global importance placed on cryptocurrencies. Economic leaders in India have acknowledged the need to adapt their policies to align with the favorable view growing around digital assets, proving that the US’s decisions may set a precedent influencing other nations’ crypto frameworks moving forward.
Regulatory Coordination
To bolster the institutional framework, the SEC and CFTC have recently issued a joint statement clarifying that registered exchanges can facilitate trading of certain spot crypto products. This initiative evidences a new era of cooperation aimed at promoting market choice and innovation in cryptocurrency trading. SEC Chairman Paul Atkins remarked on the significance of this collaboration, describing it as a “significant step forward in bringing innovation in the crypto asset markets back to America.”
Under this new collaborative framework, both agencies aim to empower market participants by providing clarity and operational options not previously available. CFTC Acting Chairman Caroline D. Pham echoed this sentiment, emphasizing that
“Under the prior administration, our agencies sent mixed signals about regulation and compliance in digital asset markets, but the message was clear: innovation was not welcome. That chapter is over.”
The current administration is set to build an environment where American innovation in cryptocurrencies can thrive.
The Future of Crypto Regulation in the US
The impending changes in the US cryptocurrency regulatory environment not only promise enhanced clarity but also foreshadow a significant turning point in the digital asset space. With an increasing number of institutional stakeholders entering the crypto market, the necessity for comprehensive and robust regulatory frameworks is paramount. Both industry players and consumers stand to benefit from these legislative maneuvers, as they pave the way for a safer and more transparent market.
As the legislative process unfolds, stakeholders will be keenly watching to see how these regulations will evolve and what impacts they may have on both the domestic and international cryptocurrency landscape. The US’s approach to regulation could serve as a model or a cautionary tale for other jurisdictions navigating the challenges posed by digital currencies, setting the stage for a more integrated global financial ecosystem.
