Despite hosting some of the world’s largest crypto firms, such as Coinbase and Ripple, and having a vast market valued at billions of dollars, the United States has yet to implement comprehensive federal crypto regulation.The SEC and CFTC have competed for jurisdiction over the crypto industry for years, applying their rules to digital assets. The SEC, in particular, has relied on the Securities Act 1933 and the Securities Exchange Act 1934 to enforce actions against crypto businesses, frequently accusing them of operating without proper licences or offering unregistered securities. Coinbase even petitioned the SEC in July 2022 to advocate for regulatory clarity, seeking guidance on how federal securities laws apply to digital assets.With a new administration in office, regulatory winds are shifting. President Trump, within days of taking office, issued the “Strengthening American Leadership in Digital Financial Technology” executive order.Source: © 2025 Digital & Analogue PartnersKey measures include:Rescinding prior executive orders that hindered innovation in digital finance.Establishing the President’s Working Group on Digital Asset Markets, chaired by a Special Advisor for AI and Crypto, to chart a cohesive regulatory strategy.Prohibiting Central Bank Digital Currencies (CBDCs) while promoting dollar-backed stablecoins to reinforce the dollar’s sovereignty.Proposing a federal regulatory framework governing the issuance and operation of digital assets, including stablecoins, in the United States. The framework will consider market structure, oversight, consumer protection, and risk management.Evaluating a national digital asset stockpile, potentially derived from cryptocurrencies lawfully seized by the Federal Government through enforcement actions.At the SEC, Acting Chairman Mark T. Uyeda has also announced the creation of a Crypto Task Force to develop a comprehensive regulatory framework for digital assets. Led by Commissioner Hester Peirce, the task force aims to clarify registration requirements, establish disclosure frameworks, and coordinate with federal, state, and international counterparts to create a balanced regulatory regime that protects investors and supports innovation.Source: © 2025 Digital & Analogue PartnersThe United States has clearly defined three key priorities for digital asset development:1. Enhancing Regulatory TransparencyThe executive order prioritises clear and transparent regulations for digital assets. This includes creating technology-neutral and well-defined frameworks to ensure innovation thrives while maintaining market integrity.It aims to establish jurisdictional boundaries for regulatory bodies like the SEC and CFTC to prevent overlapping enforcement actions. This will ensure businesses and investors know their obligations and can operate confidently.This approach could help mitigate the current regulatory uncertainty and reduce the reliance on “regulation by enforcement,” replacing it with proactive, structured guidance for the crypto industry.Source: © 2025 Digital & Analogue Partners2. Combining Blockchain and AI TechnologiesThe executive order underscores the importance of open public blockchain networks and related technologies as innovation and economic development drivers. It explicitly protects the rights of individuals and private-sector entities to access and use blockchain networks for lawful purposes, including developing software, validating transactions, and self-custody of digital assets.The administration lays the groundwork for integrating blockchain with emerging technologies like AI. This could potentially lead to the development of AI-enhanced blockchain applications, further solidifying the US’s competitive edge in the global digital economy and paving the way for future advancements.Establishing the President’s Working Group on Digital Asset Markets reflects this commitment by encouraging collaboration among experts to explore these synergies.3. Rejecting CBDCs in Favour of Decentralised SolutionsThe executive order explicitly prohibits the development or implementation of a CBDC within the US. CBDCs are viewed as a centralised tool that could grant excessive control over financial systems, undermining individuals’ privacy by enabling the tracking and monitoring of transactions.By rejecting CBDCs, the administration underscores its commitment to preserving individual choice and decentralisation.Instead, the administration supports the growth of dollar-backed stablecoins, which are viewed as a decentralised alternative that aligns with economic liberty and financial innovation principles. By promoting stablecoins, the order aims to strengthen the global dominance of the US dollar while avoiding the perceived pitfalls of centralised control inherent in CBDCs.This new direction represents a turning point for the US digital asset policy, replacing uncertainty with clarity and fostering an environment where innovation can thrive responsibly. While forthcoming regulations are likely to be based on existing financial laws and impose strict compliance requirements, they signify a major victory for the crypto industry in its battle against the SEC’s enforcement-heavy approach. Clear rules allow the industry to operate within a well-defined framework, reducing ambiguity and fostering sustainable growth.This article was written by Liza Lobuteva of Digital & Analogue Partners. Visit dna.partners to learn more about our team and the services.Be digital, be analogue, be with us!
US Crypto Regulation: A New Era?. Despite hosting some of the world’s… | by Digital & Analogue Partners | Coinmonks | Jan, 2025
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