The Future of Crypto Regulation in the US: A Game-Changer on the Horizon?

Cryptocurrency has been the digital Wild West for years—thrilling, unpredictable, and often lacking clear-cut rules. But that might be about to change. US lawmakers are gearing up to pass crucial legislation on stablecoins and cryptocurrency market structure, potentially as soon as August. This could be a defining moment for the industry, bringing long-awaited regulatory clarity.

The Push for Clear-Cut Crypto Laws

At the recent 2025 Digital Asset Summit in New York, Kristin Smith, CEO of the Blockchain Association, shared her optimism. “I think we’re close to getting this done by August,” she stated, emphasizing the behind-the-scenes efforts currently unfolding.

Her forecast isn’t a solo prediction. Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, has echoed a similar expectation, indicating that stablecoin legislation is on the near horizon. The convergence of political will, bipartisan cooperation, and widespread acknowledgment of crypto’s role in financial markets is driving this forward.

US President Donald Trump sits beside Treasury Secretary Scott Bessent at the March 7 White House Crypto Summit.
Source: The Associated Press

A Rare Moment of Bipartisan Agreement

When it comes to US politics, bipartisan consensus is a rare sight. But crypto seems to be one of those few issues where both sides see a path forward. Congressman Ro Khanna, a Democrat, is optimistic about getting stablecoin and market structure bills passed by 2025.

Why does stablecoin legislation matter? According to Khanna, around 70 to 80 Democrats recognize that stablecoins can expand global access to US dollars, boosting American financial influence. That alone is a strong incentive for lawmakers to craft sound policy.

Kristin Smith has emphasized that support in the Senate is growing, with five Democratic votes already secured at the committee level. For the legislation to pass, they’ll need at least seven. Given the momentum, this goal appears within reach.

What’s Inside the Proposed Laws?

So, what exactly is in these proposed policies?

• GENIUS Act – This bill lays out collateralization guidelines for stablecoin issuers and enforces compliance with Anti-Money Laundering (AML) laws.
• FIT21 Act – Officially called the Financial Innovation and Technology for the 21st Century Act, this legislation defines the structure for digital asset markets, providing businesses and investors with regulatory certainty.

While the House of Representatives has already passed FIT21, it still needs Senate approval before it can become law.

Why This Matters to the Crypto Industry

For years, crypto executives have been vocal about the need for regulatory clarity. While many celebrated President Donald Trump’s move to establish a US Strategic Bitcoin Reserve, industry insiders believe that well-structured regulations will bring even greater benefits.

“Markets expect a roadmap for innovation and clear guidelines on stablecoins, institutional adoption, and taxation,” Max Giammario, CEO of Web3 AI startup Kindred, explained.

A defined legal framework could help attract institutional investors, mitigate risks, and provide businesses with the certainty they need to build and innovate within the US.

The Road Ahead

With laws potentially passing by August, the crypto industry in the US is on the brink of one of its most significant transformations. If successful, these regulations could offer the clarity and stability that businesses, investors, and consumers have long sought.

Will 2025 be the year that the US finally embraces comprehensive crypto regulation? Stay tuned—big things are on the horizon.

📖 Further Reading:
Unstablecoins: Depegging, Bank Runs, and Other Risks Loom