If you run a crypto business in the U.S., the regulatory outlook for 2025 looks different from just a year ago. Federal agencies are signaling a more collaborative stance, with early guidance on stablecoins, meme coins, and mining activities. At the same time, Congress is advancing new bills that could reshape stablecoin compliance and market structure.
However, the shift in tone at the federal level hasn’t stopped state regulators—or FinCEN—from continuing enforcement. The result is a legal landscape that’s less hostile, but far from settled.
This overview breaks down what’s changing, what’s still in play, and what crypto businesses should keep on their radar this year.
2025 regulatory changes: what you need to know
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce recently said that dealing with the SEC on crypto issues used to feel like a “regulatory version of an escape room.”
Now, the agency is focused on engaging with the crypto sector and clarifying industry regulations.
SEC’s new collaborative approach
Commissioner Pierce leads the “Crypto Task Force” created under the Trump administration, as part of a more collaborative approach to the crypto industry under more crypto-friendly SEC leaders.
The SEC is transitioning from an enforcement-heavy approach to one that emphasizes public feedback and rulemaking. It has also made some significant statements on what types of crypto coins and activities may not be considered a “security,” and thus not subject to the SEC’s securities regulations.
Clarified treatment of crypto assets
The SEC has made public determinations on several high-profile asset classes:
- Stablecoin guidance: The SEC clarified that certain USD-backed stablecoins are not considered securities, provided they meet specific criteria to be considered a “covered stablecoin.”
- Proof-of-work mining activities: Certain proof-of-work mining activities may not constitute securities transactions.
- Meme coins: The SEC has indicated that meme coins, which do not generate yield or convey rights to future income, profits, or assets, are not considered securities under federal law.
It’s worth noting that these assets are not exempt from all regulation—fraud, market manipulation, and consumer deception remain subject to both state and federal enforcement.
Stablecoin legislation on the horizon
Congress is also moving toward formal legislation that would reshape the stablecoin market. The Hagerty Bill, backed by the administration’s crypto committee, would require stablecoin issuers to:
- Maintain 100% reserves in cash or cash equivalents
- Submit to regular audits and public disclosures
- Meet federal standards for risk and reserve transparency
This would offer compliant issuers a clearer path to legitimacy while reducing systemic risk for investors and counterparties.
Jurisdictional tension between the SEC and CFTC
Jurisdictional questions are far from settled. While the SEC’s Crypto Task Force is encouraging no-action letters and offering retroactive relief for certain token offerings, the Commodity Futures Trading Commission (CFTC) is expanding its oversight of non-security tokens, especially for crypto derivatives and leveraged products.
Pending legislation—notably the Financial Innovation and Technology for the 21st Century Act (FIT21)—could codify CFTC authority over certain crypto assets, potentially redrawing regulatory boundaries. For businesses offering hybrid products, dual registration or evolving compliance frameworks may be necessary.
State-level compliance is still active
While the SEC’s tone has softened under the new administration, state regulators remain a force in crypto oversight. New York’s BitLicense regime and California’s Digital Financial Assets Law continue to impose licensing and operational requirements for crypto firms operating in those jurisdictions.
In addition, state attorneys general, most notably New York’s Letitia James, have escalated enforcement efforts targeting unregistered platforms, fraudulent token offerings, and misleading investor communications. Businesses must factor in dual compliance obligations, as state laws often operate independently of federal policy shifts.
Custody and insurance updates
The SEC’s Crypto Task Force has emphasized the importance of secure custody solutions. While formal rules are still under development, custodians are clearly expected to implement security measures.
Mandatory cold storage for non-trading assets
Hong Kong and Japan expect digital asset custody providers to keep a certain percentage of customers’ digital assets in cold storage.
This is not a requirement in the U.S. at the moment, but it’s not out of the question as the SEC works to build trust in the crypto space.
Simplified insurance requirements for custodians
The SEC is considering adjustments to insurance requirements for custodians. This may include additional licensing requirements to become “qualified custodians” capable of meeting certain fiduciary standards.
Avoiding compliance pitfalls
With increased SEC engagement, businesses must be aware of changing regulations in a rapidly evolving ecosystem. A new administration that is more “crypto-friendly” does not equate to an industry free-for-all.
AML/KYC and transaction monitoring
The SEC is still requiring that cryptocurrency exchanges and related businesses follow Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, including:
- Mandatory compliance: All cryptocurrency exchanges operating in the U.S. must have AML/KYC protocols.
- $3,000 threshold for cross-border transfers: Transactions that exceed $3,000 in cross-border crypto transfers may be subject to enhanced reporting requirements.
Additionally, FinCEN’s Travel Rule remains in effect. FinCEN, the Financial Crimes Enforcement Network, is the Treasury Department bureau responsible for enforcing AML laws in the U.S. Businesses facilitating cross-border crypto transfers of $3,000 or more must collect, store, and potentially transmit identifying information about the sender and the recipient.
While the SEC has taken a more collaborative tone on crypto policy, that shift doesn’t extend to all regulatory fronts. FinCEN continues to strictly enforce AML obligations, and state-level enforcement actions remain aggressive, particularly in cases involving fraud, identity mismanagement, or inadequate transaction monitoring.
Marketing and investor disclosures
The SEC emphasizes transparent marketing practices to protect investors, including:
- Required disclaimers: Crypto products must include clear disclosures, such as “Not FDIC insured,” to inform investors of the associated risks.
- Crackdown on “guaranteed returns” claims: The SEC is actively pursuing enforcement actions against entities making unsubstantiated promises of guaranteed returns.
Recent cases, including the SEC’s partial dismissal of claims against Coinbase, signal a shift in how enforcement is applied. While the SEC may be stepping back from an aggressive posture in some areas, state regulators and private litigants are increasingly active in pursuing fraud, market manipulation, and misleading advertising claims, particularly in high-volatility tokens like meme coins.
Strategic opportunities in the new era
For businesses in the crypto space, there are plenty of opportunities for growth under the new administration.
Banking partnerships
The Office of the Comptroller of the Currency (OCC) stated that banks and federal savings associations can perform crypto lending, so long as they adhere to sound risk management practices.
This development could open avenues for crypto companies to form partnerships with traditional financial institutions and expand their service offerings.
Global market access
While the European Union has ongoing sandboxes to foster innovation in the crypto space, it could be time for the U.S. to join in with its own innovative developments. While regulatory sandboxes (controlled environments where innovators can test new products and services in a safe space) currently exist only on a state level, that may change quickly.
El Salvador has already proposed a regulatory sandbox to the SEC, which could support innovation and global market access.
Future-proofing your crypto business
The Crypto Task Force has promised to engage with the industry, providing vehicles for businesses to submit comments, participate in roundtable discussions, and even request meetings with the task force to discuss current issues in the industry and future regulations.
To future-proof your business, stay abreast with current industry developments and build investor trust through transparent custody practices and regular audit reports. These best practices can establish your presence as a trustworthy player in the crypto industry over time.
Turning regulations into advantages
Over the next four years, we may see numerous shifts in the legal landscape. While the new administration may be more favorable towards crypto, it may also lead to rapid and dizzying change. Businesses that stay on top of these changes may have a competitive edge.
For legal guidance on how these regulatory changes impact your business, contact the Law Offices of Andrew Dressel LLC.
The content in this article is for general informational purposes only. It should not be construed as legal advice or a substitute for legal advice. The information above does not create an attorney-client relationship, nor do prior results guarantee future outcomes. Any reliance you place on such information is therefore strictly at your own risk.