Crypto Regulation in the U.S.: What to Expect by the End of 2025

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The regulatory landscape for cryptocurrencies in the United States underwent a significant shift in 2025. For years, crypto companies faced uncertainty, overlapping enforcement, and fragmented state and federal requirements. This year, though, marks a turning point as the federal government, under the Trump administration, pivots toward a straightforward deregulatory approach. As we move through the second half of the year, here’s what you can realistically expect for crypto policy in the U.S. by December 2025.

A Strong Pro-Crypto Push at the Federal Level

Since President Trump’s return to office, there has been a clear policy pivot in favour of digital assets. Federal enforcement teams, like the DOJ’s National Cryptocurrency Enforcement Team, have been disbanded. Major SEC lawsuits against prominent cryptocurrency players, including Gemini and Coinbase, have been dropped. The administration has even positioned digital assets as a national strategic priority, establishing the Strategic Bitcoin Reserve as part of its broader push to legitimize crypto holdings at a sovereign level.

This trend suggests that further deregulation from Washington is likely to continue through the end of the year.

The GENIUS Act: A New Era for Stablecoins

One of the most significant milestones is the advancement of the GENIUS Act, a landmark piece of legislation designed to establish a clear regulatory framework for stablecoins. The U.S. Senate passed the bill in June, mandating that stablecoins must be backed by highly liquid assets such as U.S. dollars or short-term Treasuries and that issuers must publish monthly reserve disclosures.

The bill is now awaiting passage in the House of Representatives. If signed into law, it would create the first comprehensive, federally recognized stablecoin framework in the U.S., providing clarity for businesses and banks that want to use dollar-pegged tokens in everyday payments or cross-border transactions.

The SEC’s New Stance: Clarity Over Crackdowns

Another significant shift is happening at the SEC. Under the leadership of Commissioner Hester Peirce, the agency has moved away from its old “regulation-by-enforcement” approach. Instead, the new SEC Crypto Task Force is working to clarify what constitutes a security in the digital asset space and where the agency’s jurisdiction begins and ends.

Perhaps most notably, the SEC announced this year that memecoins would no longer be treated as securities. This move removes a vast gray area that caused confusion for developers, exchanges, and investors alike. By year-end, expect more updates from the SEC clarifying custody requirements and disclosure standards for crypto projects.

Banking and Custody: Easier but Not Without Caution

In another nod to deregulation, the FDIC has rolled back earlier rules requiring banks to get special approval before engaging in crypto-related activities. This means FDIC-supervised banks now have more freedom to hold or offer crypto services. However, the FDIC has reminded institutions that it does not insure non-bank crypto assets and that banks must carefully manage third-party risks.

This balance — relaxed oversight but reinforced responsibility — is expected to hold steady through 2025 as banks seek to expand their crypto offerings without exposing themselves to unnecessary risk.

AML and KYC Rules Still Apply

Even with this push for deregulation, the U.S. is not abandoning basic consumer protections. Core anti-money laundering (AML) and know-your-customer (KYC) requirements remain in place, enforced by FinCEN, the SEC, and the CFTC. Crypto firms must continue to comply with licensing requirements at both the federal and state level.

So while some burdens have been lifted, there is no free pass for ignoring compliance when it comes to preventing illicit activity.

The State-Level Patchwork Remains

One thing unlikely to change this year is the patchwork nature of state-level crypto regulations. States like New York still enforce stringent licensing through programs like the BitLicense, while others are moving toward looser rules to attract blockchain businesses. This divide will keep legal teams busy and may push some firms to seek federal clarity through upcoming legislation and court rulings.

What’s Next: A New Framework on the Horizon

President Trump’s January executive order formed an inter-agency task force to propose a more unified federal approach to crypto regulation. The task force’s recommendations are expected to be presented before the end of the year. It is likely to address how the U.S. can stay competitive, attract innovation, and protect consumers without stifling growth.

If the final report includes clear guidance on token classification, tax reporting, and cross-border payments, it could become the backbone of U.S. crypto policy in 2026 and beyond.

Final Thoughts

By the end of 2025, the U.S. is likely to appear more crypto-friendly than it has in years. Federal enforcement is easing, stablecoin legislation is advancing, and the SEC is adopting a clearer and more transparent approach. At the same time, banks and institutions will have more freedom to participate, provided they respect core AML/KYC safeguards.

For builders, investors, and institutions, these changes mean more certainty and fewer roadblocks. But the regulatory environment will continue to evolve, and the state-level maze remains. If you’re in the crypto space, staying informed and ready to adapt will be as important as ever in the months ahead.