Regulatory and Legislative Context
A significant shift is underway in the United States’ approach to digital asset regulation. The Securities and Exchange Commission (SEC) is taking a more measured stance on oversight, while simultaneously, the White House is advancing a cohesive legislative package. This tandem effort combines agency rulemaking with administration policy to redefine how crypto products enter and operate within U.S. markets.
Internally, the SEC’s “Project Crypto” aims to modernize outdated rules and accelerate the path to market for new products. One proposal under consideration is an “innovation exemption” that would permit limited launches without the burden of full registration. This reflects a changing philosophy, with leadership drawing parallels to the early, formative days of the New York Stock Exchange.
This regulatory evolution is being matched by legislative action. Following a March 2025 Executive Order that signaled a coordinated approach, the White House issued a detailed pro-innovation report in July. Congress then passed key laws: the GENIUS Act, which establishes federal charter and reserve requirements for payment stablecoins, and the CLARITY Act, which clearly divides regulatory oversight of different token types between the SEC and the CFTC. Adding an international dimension, the Crypto-Asset Reporting Framework (CARF) will impose new cross-border customer data reporting requirements for crypto brokers starting in 2026.
Implications and Next Milestones
These changes have concrete operational consequences for everyone from issuers to compliance teams.
The push for modernization is expected to speed up the listing process for tokenized securities like stocks and bonds, potentially reducing approval times from years to weeks. However, this comes with a cost. The new rules around stablecoin reserves, customer asset segregation, and enhanced KYC/AML checks will significantly increase compliance spending for custodians and issuers.
The new framework also reshapes market structure. While the GENIUS Act’s requirements may reduce bank-run risk for stablecoins, they could also create a “Tether loophole” by limiting the reach of offshore coins. Furthermore, the CLARITY Act’s clear jurisdictional assignments will require DeFi protocols to adapt their margin and collateral terms accordingly.
The immediate milestones to watch are the finalization of the stablecoin issuer rule, the SEC’s vote on the innovation exemption, and the new listing standards for tokenized securities. These decisions, expected within the next six months, will ultimately set the compliance cost and define the liquidity landscape for the entire U.S. digital asset market.
