Overview of U.S. Cryptocurrency Regulation Policies: How Far Along Is the Crypto Legislation Process?

Article by: Glendon, Techub News

Over the past year, the development of the crypto industry has been rapid, and the opening and improvement of US regulatory policies have undoubtedly been the main driving forces behind this trend. At the same time, this is also a key factor in market expectations that the industry will enter another upward cycle next year.

Yesterday, Paul Atkins, Chairman of the U.S. Securities and Exchange Commission (SEC), stated at the Blockchain Association Policy Summit in Washington, D.C., “The good show is still ahead; by next year, all the seeds we sowed will sprout and grow, and we will be able to harvest the fruits.” This remark from Paul Atkins hints that at the beginning of the new year, the US will accelerate the focus on crypto regulation agenda. Moreover, he mentioned that one of the top priorities will be to promote the implementation of the “Innovation Exemption” framework for crypto and fintech projects.

The “Innovation Exemption” is one of the core policies of SEC’s “Project Crypto” plan, aimed at providing regulatory flexibility for cryptocurrency and blockchain projects, reducing compliance costs, and allowing them to test and launch new products under supervised conditions without immediately following full securities registration requirements, thereby speeding up the approval process for crypto products. This policy is expected to officially take effect in January 2026, marking a shift in the US crypto regulatory model from traditional “enforcement-based regulation” to a more innovation-supportive approach.

In addition, Paul Atkins also mentioned policies such as the “Token Classification Act” and the “Market Structure Law for Cryptocurrencies.” So, which crypto-related laws have been implemented in the US this year, and which policies are still in progress awaiting approval? This article will provide a comprehensive overview.

US Crypto Regulatory Policy Iteration is Reshaping the Market Landscape

When Trump was re-elected as US President, a major turning point for the future of the crypto industry occurred. Earlier this year, the White House issued the Executive Order “Strengthening America’s Leadership in Digital Financial Technologies,” revoking the crypto policies from the Biden administration, clarifying “protecting and promoting private-sector cryptocurrencies,” and requiring “technologically neutral legal support for crypto development.” The executive order also established the Presidential Digital Asset Market Working Group and banned the issuance of Central Bank Digital Currencies (CBDC), setting the tone for subsequent federal-level crypto policies.

GENIUS Act: The First Federal Stablecoin Regulatory Framework

On February 4, the US Senate proposed the “Guidance and Establishment of the US Stablecoin National Innovation Act” (GENIUS Act), aiming to build a compliant framework for stablecoins from multiple dimensions such as definition, issuing entities, reserves, and transparency. On July 18, Trump formally signed the bill at the White House, marking the first time the US established a regulatory framework for digital stablecoins through federal legislation.

The passage of the GENIUS Act is undoubtedly a milestone in US crypto regulation and digital financial development. It signifies a fundamental shift in US governance thinking towards stablecoins: from the previous “vague regulation” of cryptocurrencies to actively building rules and embracing innovation. The bill provides a “compliance pathway” for stablecoin markets and a “clear runway” for innovators.

Following this, the crypto industry experienced a rapid growth period lasting four months, with many Wall Street institutions entering the market, ETF and DAT sectors experiencing unprecedented enthusiasm, and the crypto market officially entering the “institutional era.” During this period, Bitcoin and Ethereum reached historical highs of $126,000 and $4,956 respectively, under the influence of these policies.

“Strategic Bitcoin Reserves”: From Executive Orders to Local Legislative Practices

On March 6, Trump signed an executive order announcing the establishment of a “Strategic Bitcoin Reserve” and a “Digital Asset Reserve,” explicitly including approximately 200,000 Bitcoin confiscated through judicial procedures and administrative fines into the reserve, and exploring increased holdings of Bitcoin through budget-neutral strategies. Based on this, over 18 US states have proposed laws related to “Bitcoin Strategic Reserves.”

On May 7, New Hampshire officially signed HB 302, becoming the first state in the US to pass legislation on “Strategic Bitcoin Reserves.” Subsequently, Arizona quickly followed suit, passing relevant Bitcoin reserve legislation. On June 21, Texas officially signed the “BTC Reserve Act” (SB 21), becoming the third state to establish a Bitcoin reserve, and launched the Bitcoin reserve plan at the end of November, first investing $5 million to buy into BlackRock’s IBIT. While most US states remained silent, Texas broke the deadlock and ignited a leading “fire” for Bitcoin reserve advancement.

SEC’s “Crypto Project” Plan: Innovation in Regulation and Clarification of Token Attributes

On July 31, SEC Chairman Paul Atkins launched the “Crypto Project” initiative. This plan encompasses multi-dimensional policy innovations, focusing on modernization of regulation, token classification, and boundaries of decentralized regulation, aiming to fundamentally reshape the regulatory logic of US crypto assets, update securities rules and oversight, and promote “moving the entire US financial market onto the blockchain” to modernize the US securities regulatory framework.

Atkins emphasized that the SEC needs to recognize its jurisdiction boundaries, avoid “over-regulation stifling innovation,” and should establish “tailored” standards for digital asset markets through proactive rulemaking, explanatory guidance, and exemptions. In mid-November, Atkins further proposed detailed implementation rules for the “Crypto Project” and a “Token Classification Law” framework to clearly distinguish which cryptocurrencies are securities.

This classification law uses the Howey Test as its core anchor. As the legal standard for determining whether a transaction constitutes an “investment contract” (i.e., a security), this plan introduces reforms to it. The plan considers that investment contracts are not “permanent labels.” If a token was once part of an investment contract, its “securities attribute” can cease as the network matures, code is deployed, and control rights become dispersed. This logical basis is the “maturity hypothesis,” which suggests that as the underlying network develops, functions are established, and governance becomes decentralized, the “securities attribute” of the token may naturally dissipate.

However, the current token classification law is still in the proposal stage and has not been officially approved. Currently, the SEC has initiated supporting work for the “Crypto Project,” including drafting rules and opening public comments, but policy implementation still requires SEC to further finalize details and promote execution. Additionally, the previously mentioned “Innovation Exemption” policy will also be implemented early next year.

CFTC’s “Crypto Sprint” Program: Steadily Advancing in Phases

On July 31, Acting Chair Caroline D. Pham of the US Commodity Futures Trading Commission (CFTC) announced the 12-month “Crypto Sprint” plan, aiming to implement policies in phases and build a comprehensive regulatory framework for crypto assets. The plan includes three main components: first, allowing trading of spot crypto contracts on CFTC-registered futures exchanges (such as designated contract markets); second, enabling tokenized collateral (including stablecoins) in derivatives markets; third, drafting rules for technical revisions to CFTC regulations regarding collateral, margin, clearing, settlement, reporting, and record-keeping to support market use of blockchain technology and infrastructure (including tokenization).

The first measure of this plan was officially implemented this month. On December 4, the CFTC approved regulated platforms to open trading of spot digital assets, with crypto derivatives platform Bitnomial set to launch leveraged spot markets first.

Additionally, regarding the policy of “enabling tokenized collateral in derivatives markets,” the CFTC expects to release guidance by the end of the year and formally introduce it early next year. Notably, this week, the CFTC launched a pilot program allowing certain digital assets such as Bitcoin, Ethereum, and USDC to be used as collateral in the US derivatives market. This program is part of the initiative to establish rules for the use of tokenized collateral (including tokenized versions of real assets like US Treasuries). Currently, only qualified futures commission merchants (FCMs) that meet specific standards can participate.

“CLARITY Act”: The Top-Level Design of the Crypto Market Structure

Compared to the policies already implemented or partially enacted above, the most anticipated policy in the market now is the “Digital Asset Market Clarity Act” (“CLARITY Act”), which is a crypto market structure law.

The CLARITY Act was proposed on May 29 by French Hill, Chair of the US House Financial Services Committee and a Republican Congressman from Arkansas. It is a legislative framework tailored for the US digital asset market. The act focuses on core issues such as classification of digital assets, division of regulatory responsibilities, and market access rules, aiming to clarify the “structured” regulatory logic of the crypto market through legislation.

Regarding the regulatory framework, the bill first precisely delineates digital asset categories and regulatory responsibilities. Securities tokens (such as fundraising tokens) are regulated by the SEC and must comply with securities registration and disclosure requirements; meanwhile, digital commodities like Bitcoin and Ethereum fall under CFTC jurisdiction. The bill also clearly defines the scope of regulation: SEC handles securities tokens registration and anti-fraud enforcement, while CFTC oversees spot and derivatives markets for digital commodities, requiring exchanges, brokers, and intermediaries to register and keep client funds separate. It plans to clarify responsibilities through a “dual-agency division” model, eliminating regulatory ambiguity.

Moreover, the bill further subdivides digital assets into categories such as digital commodities and stablecoins, tailoring specific regulatory rules for different types and establishing a “classification-based” market structure. It also introduces DeFi and infrastructure exemptions, and sets up blockchain “maturity” certification mechanisms. These innovative measures aim to protect investors thoroughly, combat fraud vigorously, while reserving space for industry innovation and research.

The CLARITY Act is of extraordinary significance to the crypto industry, comparable to the profound impact of the 1933 Securities Act in establishing investor protection mechanisms for the US capital markets. Once passed, it will become another “milestone” legislation in the crypto field.

Regarding the implementation of this bill, Paul Atkins revealed in a Fox News live interview that the CLARITY Act is about to pass and will bring much-needed regulatory clarity to the crypto industry. On Tuesday, Sen. Kirsten Gillibrand (D-New York) and Sen. Cynthia Lummis (R-Wyoming) also spoke at the Blockchain Association Policy Summit, saying “Negotiations on the crypto bill between Democrats and Republicans have been steadily progressing, and the first bipartisan meeting last week was very successful, with no factors hindering the bill’s advancement.”

Lummis further stated that the US Senate version of the crypto market structure bill is expected to be unveiled this weekend, with hearings scheduled next week, and amendments and votes on the bill.

Additionally, Bloomberg reported that CEOs of US banks—Brian Moynihan of Bank of America, Jane Fraser of Citigroup, and Charlie Scharf of Wells Fargo—are scheduled to meet with bipartisan senators on December 11 to discuss upcoming crypto market structure legislation. Key topics include opposition to allowing stablecoins to pay interest, banks’ competitive position in crypto, and preventing crypto assets from being used for illegal activities. These positive developments indicate that the legislation may be entering its final countdown, with the crypto industry standing at a critical juncture of transformation.

Summary

The steady advancement and imminent implementation of multiple US crypto laws and policies undoubtedly clear obstacles for innovation and point to a clear direction, promoting the market toward a more orderly and prosperous future.

As SEC Chairman Paul Atkins said in a Fox News interview: “With the development of digital assets, market digitization, and tokenization, it is expected that the entire US financial market will be on-chain within the next two years.” This trend not only provides a clear path for compliant development in the crypto industry but also will drive the deep integration of traditional finance and innovative technology, reshaping the global financial ecosystem. Under this trend, the crypto industry is also expected to迎来 another “summer” next year.