Blockchain and Cryptocurrency

Blockchain and cryptocurrency are digital technologies transforming finance, enabling secure transactions without traditional intermediaries. From a government perspective, these innovations require balanced regulation to foster growth while protecting consumers and preventing illicit activities.

Federal Regulatory Advances

In 2025, President Trump signed the GENIUS Act into law on July 18, establishing federal standards for stablecoin issuers, including reserves, anti-money laundering compliance, and capabilities to freeze or seize assets when required. The SEC’s Project Crypto provides clarity on securities classification and custody rules, while the CLARITY Act allocates oversight between the SEC and CFTC for markets and commodities. Executive orders created a President’s Working Group on Digital Assets and a Strategic Bitcoin Reserve to promote U.S. leadership.

State and Banking Developments

States like California enacted the Digital Financial Assets Law, mandating platform registration by 2026, complementing New York’s stringent rules. Federal banking regulators, including the OCC and Federal Reserve, now permit national banks to custody digital assets and conduct certain crypto transactions with proper risk management.

Protecting Against Fraud and Illicit Use

Regulators prioritize consumer protection through scam trackers, sanctions enforcement, and fraud prevention, mirroring efforts like how the Commerce Department fights the $4.5 trillion counterfeit goods market. These measures ensure blockchain’s legitimate uses in finance while curbing risks.