Crypto Adoption Surges in US as States and Banks Embrace Bitcoin

Crypto adoption in the United States is rapidly gaining momentum, with institutions increasingly entering the crypto space due to the rise of tokenized treasuries and real-world asset (RWA) tokenization. This shift is evident as several US states are exploring the implementation of a Strategic Bitcoin Reserve (SBR), which would allow states to hold Bitcoin (BTC) as part of their investment strategies. Texas and New Hampshire have already taken steps to add Bitcoin to their balance sheets, signaling a growing acceptance of cryptocurrencies at the state level.

The regulatory environment in the US is also becoming more favorable for cryptocurrencies. The US Securities and Exchange Commission (SEC) recently clarified that protocol staking is not considered a securities transaction under US law when performed under certain conditions. This clarification is a significant step forward for the industry, as it provides more legal certainty for crypto companies. Additionally, policies implemented under the Trump administration, such as the repeal of The Staff Accounting Bulletin (SAB) 121, have enabled traditional financial institutions to offer custodial services for digital assets. Major banks like Citibank and JPMorgan Chase are actively exploring or planning to offer crypto-related services, further integrating cryptocurrencies into the mainstream financial system.

Industry experts emphasize that the progress made in crypto adoption would not be possible without collaboration with policymakers and regulators. Margaret Rosenfeld, chief legal officer at Everstake, highlighted the importance of technical fluency in shaping effective crypto regulations. She noted that Everstake played a crucial role in educating the SEC on staking, which influenced the SEC’s decision to clarify that protocol staking is not a security. Rosenfeld explained that providing both legal and technical insights helps regulators gain a clearer understanding of the technologies they are evaluating, leading to better policy outcomes.

Blockchain advocacy groups are also playing a significant role in educating policymakers and pushing for legislation that supports crypto adoption. The Texas Blockchain Council, for example, worked closely with legislative champions, policy advisors, and industry stakeholders to ensure the passage of the Texas SBR. Lee Bratcher, founder and president of the Texas Blockchain Council, noted that the success of the Texas SBR was rooted in years of building trust with lawmakers and demystifying Bitcoin. The Texas Blockchain Council educated policymakers on how Bitcoin can serve as a modern reserve asset, which has gained bipartisan support.

Major US crypto exchange Coinbase is also actively engaging with policymakers to drive mainstream adoption of cryptocurrency. In February, the SEC dropped its lawsuit against Coinbase, ending a contentious legal battle. Since then, Coinbase has submitted various documents and requests to influence US policies, including urging the US Treasury to exclude unrealized crypto gains and losses from the Corporate Alternative Minimum Tax (CAMT). Coinbase’s efforts extend beyond the US, as it recently secured a Markets in Crypto-Assets (MiCA) license from the Luxembourg Commission de Surveillance du Secteur Financier, enabling it to offer crypto products across European Union countries and potentially influencing EU crypto regulations.

Despite the progress, challenges remain in the path to widespread crypto adoption. One of the biggest hurdles is the technical complexity of blockchain infrastructure. Rosenfeld pointed out that regulators often lack the technical fluency needed to understand how protocols work, which can lead to overly broad or misapplied rules that stifle innovation. To overcome this, she believes that more dialogue is needed, involving not just lawyers and lobbyists, but also engineers and protocol builders. Collaboration built on mutual education and transparency is essential for shaping effective regulations that support the growth of the crypto industry.