After years of opposition, the United States finally passed crypto regulation in 2025.
The year 2025 has proven to be a defining moment for the US crypto industry. On July 18, President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act, also known as the GENIUS Act, creating the first comprehensive federal framework for dollar-backed stablecoins.
The legislation imposed clear reserve requirements, auditing standards and oversight pathways, repositioning stablecoins from experimental instruments to a regulated financial infrastructure.
From regulatory fog to federal regulation
Before the GENIUS Act, stablecoin issuers operated in a regulatory gray area, with patchy reserve support, limited transparency, and frequent disputes over whether tokens should be treated as unregistered securities or commodities. The collapse of TerraUSD in 2022 exposed the dangers of these risks.
Approved by the Senate in June 2025 by a vote of 68-30 and narrowly passed by the House, the GENIUS Act introduced federal rules governing “payment stablecoins.” The main provisions include:
- Reserve: 1:1 with premium liquidity
- Transparency: Monthly reports, annual audits
- Monitoring: Federal oversight, full AML/KYC
- Issuers: OCC-approved nonbank banks, insured banks, or approved state-owned enterprises
- SEC Exclusions: Not classified as titles
Following this, banks and payment companies began adopting and issuing stablecoins under the new rules. Issuers have begun designing dedicated blockchains for stablecoin settlement to ensure compliance, predictable costs, and institutional appeal.
Tether-aligned stable launched with $28 million in funding, using USDT as a native gas token to reduce fee volatility and congestion on general-purpose networks.
In August 2025, Circle introduced Arc, an enterprise-focused Layer 1 supporting regulated payments, FX, and tokenized marketplaces through USDC.
Crypto ETFs gain traction as rules become clearer
Regulatory dynamics have also boosted crypto ETFs. By October 2025, the SEC has placed ETFs under a generic listing standard, simplifying oversight and facilitating institutional access.
Spot ETF for , , and joined the party at the end of 2025.
A detailed timeline of all important crypto developments in 2025.
The politics of crypto: opposition, surveillance and a new federal path
The GENIUS Act and market structure bills were not passed smoothly. Rep. Maxine Waters argued they favor big industry players, calling it a giveaway to “crypto billionaires” and warning of systemic risks.
Nevertheless, progress towards clearer rules has continued. In July 2025, the House passed the Digital Asset Market Clarity Act to define whether digital tokens fall under SEC or CFTC oversight.
After former SEC Chairman Gary Gensler resigned in January 2025, Acting Chairman Mark Uyeda and new SEC Chairman Paul Atkins pushed for rules-based oversight, mitigating uncertainty and spurring the growth of ETFs and digital assets.
Simultaneously, President Trump’s Executive Order 14178 created a federal “crypto czar” to coordinate U.S. crypto policy across agencies.
What’s next for crypto in 2026?
Crypto appears to be at an inflection point. Stablecoins and ETFs are becoming a valuable part of the traditional financial ecosystem, but the prices of major coins like Bitcoin and Ethereum haven’t really exploded like years past.
Source: McKinsey & Company
The GENIUS Act established a global standard for stablecoins, with the UK, Singapore and the EU’s MiCA framework driving the adoption of compliant tokens. By the end of the year, the market cap of stablecoins exceeded $250 billion and accounted for more than 30% of on-chain transactions.
Will the global crypto market react in 2026? Or is a bear market brewing? Stay tuned.
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