US Advances Toward Clearer Crypto Regulations
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The United States has recently taken significant steps towards creating a more favourable regulatory environment for cryptocurrencies and digital assets.
President Donald Trump signed an executive order establishing a new working group tasked with developing recommendations for a federal framework governing digital assets.
This group, known as the President’s Working Group on Digital Asset Markets, includes key financial regulators such as the Treasury Secretary, Attorney General, and heads of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
The executive order sets a clear federal policy in support of the digital assets industry, with objectives including promoting USD-backed stablecoins, achieving regulatory clarity, and establishing well-defined jurisdictional boundaries for crypto regulation.
This marks a significant shift from the previous administration’s approach and signals a more crypto-friendly stance from the federal government.
The crypto industry’s political efforts appear to have paid off, with reports indicating that nearly 300 pro-crypto candidates from both parties were elected to Congress.
This shift in the political landscape has led to increased optimism within the crypto community, as reflected in rising bitcoin prices following the election.
Many anticipate that the new administration will implement policies more favorable to the crypto industry and adopt a lighter touch in terms of enforcement.
As we enter 2025, the legal landscape for digital assets is at a critical juncture. Several important cases are expected to reshape how these assets are governed, traded, and regulated in the US.
These cases span various areas of law, including securities regulation, administrative procedure, and federalism, and present opportunities to clarify how traditional legal frameworks apply to digital assets.
The Trump administration has pledged to be “pro-crypto,” promising to drive the SEC towards a more industry-friendly stance and to have cryptocurrency rules and regulations crafted by individuals who are supportive of the industry.
These regulatory shifts have been well-received by the market, with Bitcoin trading near all-time highs and the total market capitalisation of digital assets exceeding $3 trillion.
The positive sentiment has also led to increased funding for crypto projects and the return of development teams to the US, reversing a trend of crypto businesses moving offshore due to regulatory uncertainty.
With crypto-friendly legislators now in key positions, including Representative French Hill as chair of the House Financial Services Committee and Senator Cynthia Lummis heading the Senate Banking Committee’s subcommittee on digital assets, there is growing confidence in a crypto-forward agenda.
However, questions remain about what success on the regulatory front will look like in practice and how these changes in US policy will impact the global crypto landscape.
These developments collectively signal a significant shift towards a more supportive regulatory environment for cryptocurrencies and digital assets in the US, potentially positioning the country as a leader in this rapidly evolving sector.
Image: CoinMarketCap
