Two years ago, the hallmark of cryptocurrency regulation in the United States was uncertainty. The organizers relied heavily on Enforcement Instead of setting formal rules, companies are left to interpret legal limits retroactively through lawsuits and settlements.
For CFOs, this uncertainty translated directly into risk. Treasury teams considering the use of stablecoins or blockchain-based settlement systems have faced unresolved accounting standards, inconsistent banking access and concerns about future compliance obligations. Public companies have been reluctant to deepen exposure to cryptocurrencies for fear that changing regulatory interpretations will create disclosure or governance complexities later.
Today, the regulatory environment remains patchy, but it is physically Less messy. This shift is important because capital tends to follow it Regulatory predictabilityeven more than regulatory leniency.
See also: Cryptocurrencies’ big win in the Senate leaves banks with even bigger concerns
Less alarm bell than market design
Just a few years ago, the US cryptocurrency industry was operating in a state of defensive crouch. Executives talked less about innovation than survival, and aftershocks from the collapse of major cryptocurrency companies including FTX, Celsius and Terra left regulators, lawmakers and institutional investors scrambling for answers.
Biden administration Economic report March 2023 He devotes an entire 35-page chapter to explaining why use cases for blockchain-based digital assets do not deliver on their promises, outlining the various risks they pose to both consumers and the American financial system. The report came after New York Attorney General (NYAG) Letitia James The alleged one The famous cryptocurrency Ether serves as a security in Recently filed lawsuit Against KuCoin, one of the largest cryptocurrency exchanges by transaction volume well behind its similarly beleaguered counterparts Binance, Coinbase and Kraken.
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Federal Reserve president Jerome Powell During that same period (March 2023) as well It’s called encryption “Chaos,” he said, adding, “What we see is too much disruption, we see fraud, we see a lack of transparency, we see risk.”
Moving forward to today, the new administration has restricted the SEC’s broader interpretations of securities law with respect to digital assets. Instead of relying primarily on lawsuits and interpretive guidance, lawmakers have begun creating formal categories for digital assets, stablecoins, decentralized finance platforms, and tokenized securities. The biggest shift occurred last summer (July 2025) when the GENIUS Act for stablecoins was passed. I fell into law by President Trump, marking the first-ever digital asset policy in the United States
The US Senate’s proposed Clarity Act, which passed a key vote on May 14, was also critical reflects This transformation. The legislation as written determines when digital assets fall under securities law, commodity regulation, or separate oversight structures. It also introduces anti-money laundering obligations for cryptocurrency platforms and sets standards around decentralization claims.
the PYMNTS INTELLIGENCE and City a report “Chain Reaction: Regulatory Clarity as a Catalyst for Blockchain Adoption“I find that blockchain’s next leap will be shaped by regulation, and that this evolving guidance is beginning to create the foundations for secure and scalable blockchain adoption.
However, the Clarity Act’s path toward passage is by no means certain Legislator delay Continue to disrupt momentum. Washington has four full work weeks in June and only three weeks in July before the August recess to make progress.
See also: Cryptocurrency regulation went from theoretical to market force this week
Institutional adoption has changed the conversation
What cryptocurrencies have lacked in previous years is a path for responsible institutional participation. Banks, asset managers, and payment companies faced fragmented oversight from the SEC, CFTC, Treasury, Federal Reserve, OCC, FDIC, and state regulators. Perhaps the biggest difference between then and now is the degree Institutional normalization.
“we Don’t start With the assets” Biswaroop Chatterjeeglobal head of partnerships and innovation, Citi Services at Citi, told PYMNTS. “We typically start with our clients’ needs, then look at the pros and cons of each type of asset or financing instrument.”
February of this year, the United States Commodity Futures Trading Commission (That’s enough for you) He explained National credit banks may issue stablecoins for payment. Fidelity Investments It has been officially launched and its stablecoin FIDD on Ethereum; Versabank detailed Plan to save interest-bearing stablecoins and deposit tokens; Goldman Sachs continued to do so He advances Use cases for stablecoins in emerging markets, among other developments.
The SEC also repealed SAB 121 through SAB 122, reversing controversial accounting guidance that made holding cryptocurrencies more expensive for many public companies and banks. In practice, this has removed one of the main barriers separating traditional financial institutions from custody of digital assets.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) did as well I moved towards coordination. In March 2026, the agencies announced a memorandum of understanding to support cooperation in innovation, market integrity and investor protection. Days later, they issued joint interpretive guidance on how federal securities laws apply to certain cryptocurrency assets and transactions.
In previous years, the problem with cryptocurrencies was uncertainty. In 2026, the problem is interoperability. A stablecoin issuer, exchange or bank can no longer claim that there are no rules. The challenge is that rules may vary across markets, products and regulators.
