In 2025, the US crypto landscape braces for potential regulatory reform as President Trump’s administration pivots towards support for digital assets. With Congress facing pressure to establish clear frameworks amid bipartisan support, significant developments include two proposed stablecoin bills and the SEC halting a lawsuit against Binance. However, the ticking clock of the midterm elections makes swift progress critical to avoid a lengthy legislative stall.
The atmosphere in Washington is changing regarding cryptocurrency. President Trump’s second term has pivoted dramatically; the administration now favours crypto, viewing digital assets as essential financial infrastructure. This shift is significant but, crucially, Congress still holds the keys to establishing a solid and enduring regulatory framework. Industry leaders are urging lawmakers to act promptly to create guidelines that reflect the lessons learned as the crypto market evolves.
Notably, Richard Teng, CEO of Binance, spoke at the DC Blockchain Summit on 26th March 2025 about how the landscape has changed since 2017, when crypto adoption was barely 1%. He highlighted the shift from a nonchalant regulatory stance to a more engaged one and mentioned Binance’s commitment to regulatory compliance, employing nearly 25% of their workforce for this purpose across 22 jurisdictions.
For years now, Congress has faced challenges in producing effective crypto legislation. However, 2025 presents a new chance for change—but Congress must act quickly as time runs short on this opportunity.
One major indicator of the policy shift is the SEC’s halt of its civil lawsuit against Binance in February, which was partly due to the creation of a new Crypto Task Force. Led by Commissioner Hester Peirce, this initiative signals a departure from the enforcement-heavy methodology that has characterised much of the agency’s approach.
In March, Ripple settled with the SEC for $50 million, underscoring the ongoing changes within the regulatory landscape. The SEC also dropped its appeal regarding a ruling on XRP’s status when traded publicly, signalling a softer stance that likely follows Trump’s January executive order that made digital assets a national priority.
This order focused on openness in blockchain technology and stablecoins while explicitly rejecting developments in central bank digital currencies (CBDCs). Trump’s administration also established a President’s Working Group on Digital Asset Markets to streamline policy development across agencies, marking a clear intent to treat crypto more as a national asset.
In further developments, Trump issued another executive order creating a Strategic Bitcoin Reserve and a US Digital Asset Stockpile. These initiatives are designed to utilise seized BTC as a long-term asset, showcasing a significant strategic shift in how the administration looks at digital currencies.
At the SEC, Acting Chair Mark Uyeda’s formation of a Crypto Task Force reflects a commitment to rethinking their approach. Trump’s choice for the SEC’s permanent chair, former Commissioner Paul Atkins, signals a likely push for clearer regulatory frameworks if confirmed.
Currently, Congress is under pressure to act fast, especially after the 2024 elections reshaped the political landscape. With a Republican majority that leans towards crypto-friendly policies, it’s being called the most pro-crypto Congress yet.
Two significant stablecoin bills are at the forefront: the STABLE Act and the GENIUS Act. Both introduced in early 2025, they aim to regulate payment stablecoins and establish necessary responsibilities for federal and state oversight. The STABLE Act focuses on reserve standards and issuer criteria, while the GENIUS Act aims to delineate regulatory roles while accommodating smaller issuers under state regulations.
This framework aims to strike a balance—larger issuers faced with federal regulations, while smaller firms can still operate with state oversight. As global competitors like the EU refine their stablecoin rules, time is of the essence for the US to establish its framework.
In addition, a modified version of the Financial Innovation and Technology Act (FIT21) is being discussed, which seeks to clarify roles between the SEC and CFTC regarding digital assets. However, its complex nature may hinder progress. As Congressman French Hill noted, stablecoin legislation may move quicker than broader oversight measures.
The chance for reform is on the table but may slip away soon. The current Republican majority is quite slim, and with midterms coming in 2026, any delay might shut down opportunities for reform for a long while. However, there’s some cautious optimism; even figures like Senator Elizabeth Warren are receptive to discussions around regulatory measures. Recent congressional hearings featured digital asset discussions that suggest a newfound seriousness around regulatory frameworks.
Nonetheless, agencies like OFAC and the Treasury will likely remain vigilant regarding compliance and sanctions. A friendly regulatory environment doesn’t imply a free pass for all; the industry must still work to uphold standards of compliance and integrity to build trust long-term.
