The regulatory outlook in the US remains pro-crypto

The regulatory outlook in the US remains pro-crypto

Mar 20, 2025
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The U.S. regulatory landscape for crypto is undergoing a major shift, bringing greater clarity, reduced enforcement risks, and increased institutional adoption. While these changes primarily impact the U.S. market, their ripple effects are significant for investors and businesses involved in crypto worldwide.

Perhaps the most symbolic shift is the creation of a U.S. Strategic Bitcoin Reserve, where seized BTC will be held as a long-term asset instead of being auctioned off. This move solidifies Bitcoin’s legitimacy as a store of value and reduces government-driven selling pressure.

Cases closed – the Securities and Exchanges Commission (SEC) has dropped cases against major firms like Coinbase and Robinhood, signaling a less aggressive approach to crypto litigation. This shift reduces legal uncertainty, benefiting exchanges and projects that operate globally. The rescinding of SAB 121, which required custodians to classify crypto holdings as liabilities, removes a major barrier for traditional financial institutions to offer crypto services.

The U.S. also is reversing restrictive banking policies, allowing banks to hold stablecoin reserves. Stablecoins are cryptocurrencies pegged to a real-world asset, usually a fiat currency. Valued at $235 billion, stablecoins have become a crucial component in the realm of decentralized finance. The U.S. government is now explicitly supporting dollar-backed stablecoins, with clear regulatory standards under the GENIUS Act. This ensures 1:1 reserves and oversight by federal or state regulators, making stablecoins a safer bridge between traditional finance and crypto markets. Stablecoins are fundamental for decentralized finance applications like Uniswap and Aave which operate on Ethereum. 

In addition, U.S. banks are also expanding to offer crypto custody, and provide institutional staking. If U.S. banks expand into crypto services, it could pressure banks around the world to follow suit, creating a more competitive environment where financial institutions may feel compelled to embrace crypto-friendly policies to stay relevant. Additionally, expansion of crypto ETFs (including potential staking and in-kind redemptions) could bring billions in new institutional capital, reinforcing Bitcoin and Ethereum’s position as mainstream assets. If successful, this could influence European regulators to approve similar innovations.

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