U.S. Regulatory Push Aims to Reclaim Crypto Innovation Lead

Acting Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Caroline D. Pham, has highlighted the U.S. government’s rapid progress in shaping a pro-innovation regulatory landscape for digital assets during a recent address to the UK All-Party Parliamentary Group on Blockchain Technologies. Pham emphasized the Trump administration’s executive order establishing the President’s Working Group on Digital Asset Markets, which aims to position the U.S. as a global leader in digital financial technology. The group’s report, released six weeks ago, outlines recommendations to provide regulatory clarity and foster innovation in the digital asset space [3]. The report highlights key areas, including modernizing bank regulation for digital assets, strengthening the role of the U.S. dollar, and combating illicit finance in the digital age. Pham noted that the lack of clarity in the U.S. previously drove innovation offshore, underscoring the urgency of creating a favorable domestic environment for digital asset development [3].

In parallel, the U.S. Securities and Exchange Commission (SEC) has announced plans to propose broad reforms to cryptocurrency regulations, aiming to reduce burdensome compliance requirements for public companies and traditional financial institutions. SEC Chair Paul Atkins stated that these initiatives reflect a renewed focus on supporting innovation and capital formation within the digital asset industry [1]. The SEC’s agenda includes potential rule changes to allow the trading of digital assets on national securities exchanges and to clarify how its broker-dealer rules apply to crypto. These reforms are expected to align with the Trump administration’s broader pro-innovation stance on digital assets and are being seen as a significant win for the crypto industry [1].

Legislative efforts have also gained momentum, with the enactment of the GENIUS Act in July 2025 marking a pivotal step toward comprehensive crypto regulation. The law establishes clear rules for stablecoin issuance, requiring full reserve backing, monthly audits, and anti-money laundering compliance. The act also mandates that only approved issuers may create stablecoins pegged to the U.S. dollar, aiming to enhance market trust and stability [2]. Additionally, the House has passed the CLARITY Act and the Anti-CBDC Surveillance State Act, which are now under Senate consideration. The CLARITY Act seeks to define how digital assets are treated under federal securities and commodities laws, while the Anti-CBDC Act aims to block the Federal Reserve from issuing a central bank digital currency (CBDC) without congressional approval [2]. These legislative actions reflect a shift toward greater federal coordination in digital asset oversight and underscore the importance of regulatory clarity for the industry.

The CFTC has also launched initiatives to accelerate regulatory progress, including the CFTC’s “Crypto Sprint,” a public consultation process on listed spot crypto trading and other recommendations from the President’s Working Group report. Pham emphasized the importance of harmonizing regulatory frameworks between the SEC and CFTC to avoid duplication and ensure a cohesive approach to digital asset oversight [3]. The CFTC’s recent advisory reaffirmed its longstanding framework for the registration and recognition of non-U.S. exchanges or foreign boards of trade, enabling foreign trading venues to access U.S. market participants under appropriate regulatory conditions [3]. These efforts are aimed at creating a robust and flexible regulatory environment that can adapt to the evolving nature of digital assets while maintaining market integrity and investor protection.

Pham and the CFTC have also prioritized the development of cross-border frameworks to prevent market fragmentation and facilitate international collaboration. By leveraging existing regulatory structures and exploring mutual recognition agreements, the U.S. aims to maintain its competitive edge in global financial markets [3]. Pham underscored the importance of pragmatic cross-border solutions, particularly as many foreign jurisdictions have already implemented regulatory regimes for digital assets. The U.S. approach seeks to ensure that these frameworks align with global standards while preserving the integrity of domestic markets. These efforts highlight the administration’s commitment to fostering innovation and leadership in the global digital asset landscape.

Source: [1] US SEC unveils agenda to revamp crypto policies, ease ... (https://www.reuters.com/legal/government/us-sec-unveils-agenda-revamp-crypto-policies-ease-wall-street-rules-2025-09-04/) [2] Cryptocurrency Regulation: A Guide to U.S. & Global Policies (https://www.britannica.com/money/cryptocurrency-regulation) [3] Remarks by Acting Chairman Caroline D. Pham before ... (https://www.cftc.gov/PressRoom/SpeechesTestimony/opapham18)