On May 5, 2025, US legislators proposed a new framework for future digital asset rules. The wide-ranging 212-page strategy lays out how the United States plans to treat and regulate digital assets. This ambitious framework would offer much-needed clarity and structure to our rapidly growing cryptocurrency market.
I raised some of these very issues on behalf of the proposal’s classification of digital assets. The bill attempts to clarify what assets should be considered subject to securities regulations and what should be considered commodities. That distinction is key to figuring out what kind of regulatory oversight and compliance obligations should apply to each kind of crypto asset.
Lawmakers emphasized the need for consumer protection. They reiterated approaches to guard against illicit financial behavior from surfacing in the digital asset space. This means going beyond just addressing money laundering and terrorist financing. Overall, the proposed rules are a positive step to increasing transparency, accountability and security of this speculative investment market.
The framework further describes new regulatory requirements for activities connected to crypto markets like trading, lending and custody of crypto. It proposes a licensing regime for crypto firms operating in the US, ensuring they meet certain capital requirements, operational standards, and reporting obligations. This would help create a level playing field for responsible innovation and protect the experimentation the industry needs to thrive.
Industry stakeholders are reviewing the proposal. But they’re looking to see what its ultimate impact will be on their businesses as well as the overall crypto market. Others raise alarms about the risk of overregulating, leading to a lack of innovation and pushing companies out of the country. Meanwhile, others are praising the clarity and certainty that a big, confusing and contradictory regulatory framework would bring.
The proposal will now travel through the state Capitol, likely to face months of vigorous public debate and revision. Lawmakers will hear firsthand from industry stakeholders and regulators. They will further work with the public to hammer out the rules to make sure they’re working while still striking a balance. This ongoing legislative effort will determine where crypto is headed in the United States. Its ultimate fate will be hugely consequential for the industry.
