# U.S. Digital Asset Regulation to Face Major Overhaul by Late 2025
The U.S. is gearing up for significant changes in digital asset regulation by late 2025. Moving away from the traditional “regulation by enforcement” approach, the White House and Congress are actively working on new legislation to reestablish the country as a global hub for cryptocurrency.
According to research from U.S.-based cryptocurrency exchange Coinbase, legislation related to stablecoins is likely to be the first to yield results. Both the House and Senate are pushing for bipartisan cooperation with the “Stable Act” and the “Genius Act,” respectively. The Senate could pass the Genius Act as early as next week, sending it to the House for consideration. Both pieces of legislation address the requirements for stablecoin issuers, including reserve requirements, anti-money laundering requirements, consumer protections, and priority in bankruptcy.
However, some issues still need resolution, such as dealing with non-U.S. stablecoin issuers and federal regulatory transition standards. The administration aims to finalize a single bill and secure the President’s signature by the August 4 congressional recess. This could serve as a stepping stone for future cryptocurrency market structure legislation.
The House Committee on Financial Services ignited discussions around market structure legislation by introducing the “Clarity Act” on May 29. This bill aims to clarify the supervisory authority of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) over digital commodities and investment contract assets.
Although built on last year’s “Financial Innovation Technology for the 21st Century Act (FIT21),” the new bill requires the CFTC and SEC to jointly define key terms and adjust their regulatory scopes through additional provisions. This indicates a high level of regulatory fluidity. The Clarity Act is considered a foundation for long-term negotiations and is expected to be more complex than stablecoin legislation.
# Accelerated ETF Approval Process
Meanwhile, the SEC is reviewing various applications for cryptocurrency exchange-traded funds (ETFs) this year. Approximately eighty applications fall into categories such as spot trading-based issuance and redemption, staking inclusions, index-based, and single altcoin-based ETFs.
Index-based ETFs proposed by firms like Bitwise, Franklin Templeton, Grayscale, and Hashdex could see approval as early as July 2. These funds allocate up to ninety percent of their assets to Bitcoin (BTC) and Ethereum (ETH), making them compatible with existing regulatory frameworks. Spot trading-based issuance and redemption methods could be decided in July, with final approval possibly extended to October. Staking inclusion decisions are also expected by October, although Bloomberg Intelligence suggests the SEC might conclude sooner. Most single altcoin-based ETFs face final decision deadlines in October.
# Optimistic Outlook for Q3 Crypto Market
The outlook for the cryptocurrency market in the third quarter is positive, driven by expectations of U.S. economic growth, potential rate cuts by the Federal Reserve, increased corporate adoption, and regulatory clarity. However, risks such as widening interest rate differentials and selling pressure on listed cryptocurrency investment products persist. Despite these risks, Bitcoin is expected to maintain its upward momentum, while performance among altcoins could vary based on individual circumstances.
