Key Highlights
- In 2025 and 2026, the cryptocurrency sector witnessed a remarkable regulatory development, finally getting much-needed regulatory clarity
- Governments around the world have intensified their legislative efforts to regulate the rapidly growing digital asset market
- Regulatory guidelines will allow crypto-based companies to operate freely without fear of enforcement actions
For years, the cryptocurrency sector operated under a cloud of uncertainty. But the cryptocurrency sector finally saw a ray of hope in 2025 after U.S. President Donald Trump took the presidential oath. The United States moved forward with its first major bipartisan crypto laws, while the European Union fully adopted its comprehensive regulatory framework.
A report from blockchain analysis firm Chainalysis noted that over 50 countries advanced crypto regulations during this period.
The U.S. became the epicenter of major regulatory developments that gained the attention of the crypto sector. In the U.S., the government under Trump’s administration has changed its stance from enforcement actions by agencies like the Securities and Exchange Commission (SEC) to creating structured laws.
This new regulatory clarity gave traditional banks and financial institutions the confidence to integrate the crypto-based services.
However, these regulatory developments are still facing hurdles. Some important bills faced delays, and regulatory enforcement remained active, with the Commodity Futures Trading Commission (CFTC) alone bringing over 100 cases in 2025.
Crypto Sector Gains Regulatory Clarity in the Form of New Regulations
In 2025, governments around the world intensified legislative efforts to bring regulatory clarity to the digital asset sector with proper guidelines.
1. GENIUS Act
On July 18, 2025, U.S. President Donald Trump signed the GENIUS Act, turning it into the first federal law for the stablecoin market. Its full name is the Guiding and Establishing National Innovation for U.S. Stablecoins Act. This law created the first full federal framework for payment stablecoins, which are digital tokens like USDC that are pegged to the USD.
The GENIUS Act says that compliant stablecoins are not securities. It requires issuers to be regulated entities, either subsidiaries of banks or specifically licensed non-banks. They must hold cash or extremely liquid assets matching the value of the stablecoins in circulation to keep a 1:1 backing ratio.
2. CLARITY Act
Another major U.S. bill is the CLARITY Act, formally known as the Digital Asset Market Clarity Act of 2025. It passed the House of Representatives in July 2025. Its main purpose is to settle the long-running dispute between the SEC and CFTC over who regulates which digital assets.
— Senator Cynthia Lummis (@SenLummis) January 15, 2026
The CLARITY Act categorizes assets as commodities, investment contracts, or stablecoins. It grants the CFTC clear authority over digital commodities, which are defined as assets integral to a blockchain’s function. The bill also includes exemptions for smaller fundraising efforts. However, its progress was delayed in January 2026 when the Senate postponed its review after crypto exchange Coinbase withdrew its support, citing concerns over rules for tokenized stocks.
3. Markets in Crypto-Assets (MiCA)
Across the Atlantic, the European Union’s Markets in Crypto-Assets (MiCA) Regulation became fully applicable on December 30, 2024. MiCA has established a clear guideline for all 27 EU member states, covering token issuance, trading, and service providers. Like the GENIUS Act, it has strict rules for stablecoin reserves and transparency. All Crypto-Asset Service Providers (CASPs) are required to register and comply with anti-money laundering laws.
4. Updates on Crypto Taxation and Guidelines for Agencies
Apart from new laws for the crypto sector, important updates have come from tax authorities and regulatory agencies themselves. In the U.S., the Internal Revenue Service (IRS) has reaffirmed that rewards from crypto staking are taxable as income at the moment they are received. In response to the complexity this creates for small transactions, Senator Cynthia Lummis introduced the Digital Asset Tax Legislation in July 2025.
Her proposal includes a key “de minimis” exemption, which would eliminate tax reporting for transactions under $300, up to $5,000 per year. It would also delay taxes on mined or staked digital assets until they are sold.
While not yet law, this proposal influenced the debate, leading the U.S. Treasury to soften some of its reporting stances in October 2025.
Regulatory agencies have also issued crucial guidance. In May and August of 2025, the SEC’s Division of Corporation Finance stated that certain staking activities, such as self-staking, non-custodial staking, and some forms of liquid staking, “do not constitute” securities offerings. This provided much-needed clarity for an important function of many blockchain networks.
Then, in January 2026, CFTC Chairman Mike Selig announced the launch of “Future Proof Program for Digital Asset Regulation.” This program will aim to review and update old rules to better fit new technology, including allowing the use of tokenized assets as collateral in derivatives markets.
Similarly, the SEC rolled out its own “Project Crypto” in July 2025. Led by Chairman Mark Uyeda, the project is expected to create a clear taxonomy for different digital assets, acknowledging that most tokens are not securities. It also proposed new categories like “digital commodities” to develop dedicated rules for companies in the sector.
Summing Up
The new rules and proposed regulatory framework are providing a much-needed legitimacy that attracts large, traditional investors. These regulatory developments will also provide basic protections that can help prevent fraud and build public trust. However, there are still some challenges, including legislative delays and their implications for crypto investors.
All in all, new regulatory guidelines will help crypto businesses to run their operations without any fear of abrupt enforcement actions, like the Gary Gensler era. Also, crypto regulations will provide protection to crypto investments and avoid unfortunate incidents like the FTX collapse.
Also Read: How to Spot a Crypto Scam: 5 Red Flags to Watch For
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