U.S. Lawmakers Aim to Enact Comprehensive Crypto Policy by August 2025

Multiple U.S. officials have expressed confidence that a clear and comprehensive cryptocurrency policy will be enacted within the year, with strong bipartisan support from Congress. This development comes as lawmakers and officials across the political spectrum recognize the need for regulatory clarity in the rapidly evolving crypto market.

The U.S. Senate Banking Committee is actively working towards passing a comprehensive crypto market bill by August 2025. This legislation aims to foster innovation while maintaining the economic competitiveness of the United States. The committee's efforts are part of a broader push to establish a regulatory framework that can adapt to the dynamic nature of cryptocurrencies and blockchain technology.

Senator Tim Scott, Chairman of the Senate Banking, Housing, and Urban Affairs Committee, recently stated that he expects the cryptocurrency market structure bill to be formally legislated by August 2025. Scott's proposed timeline for the cryptocurrency market structure bill aligns with the prediction of Kristin Smith, CEO of the Blockchain Association, an industry advocacy organization, who also expects market structure and stablecoin legislation to be completed before August.

U.S. Representatives Tom Emmer and Darren Soto reintroduced the bipartisan Securities Clarity Act last month. This legislation seeks to provide clarity on the regulatory treatment of cryptocurrencies, addressing long-standing concerns about the legal status of digital assets. The reintroduction of this bill underscores the growing bipartisan support for clear and consistent crypto regulations.

The recent passage of a resolution reversing an IRS rule that expanded the broker definition to include decentralized crypto exchanges further highlights the bipartisan consensus on crypto policy. This resolution, which was supported by both chambers of Congress, demonstrates the willingness of lawmakers to address regulatory issues in a manner that balances innovation with consumer protection.

Democratic Congressman Ro Khanna expressed at the New York Digital Assets Summit on March 18th that he expects both market structure and stablecoin bills to pass this year, with approximately 70-80 Democratic lawmakers understanding the importance of the U.S. adopting clear digital asset regulations. Bo Hines, the Executive Director of the Presidential Advisory Council on Digital Assets, also predicts that stablecoin legislation will pass within 60 days. Hines noted that establishing America's dominance in the digital asset space is a goal widely supported by both parties in Washington.

The optimism surrounding the enactment of clear crypto policies is not limited to legislative efforts. Officials and lawmakers have also emphasized the importance of a balanced approach to crypto regulation. For instance, Hon. Hester M. Peirce has noted that writing new rules for crypto trading should not be a "blank slate" exercise, but rather a process that builds on existing regulatory frameworks.

The bipartisan support for crypto regulations is evident in various legislative initiatives. For example, the STABLE Act in the House and the GENIUS Act in the Senate both aim to provide regulatory clarity for stablecoins, with the House version giving more power to state regulators. These bills are expected to move forward with full floor votes, although the timeline may be influenced by other political developments.

The industry's response to these regulatory efforts has been mixed. While some stakeholders welcome the clarity and consistency that these policies promise, others remain divided on the specifics of market structure regulations. Despite these differences, there is a general consensus that stablecoin legislation will be the first crypto measure to pass, followed by broader market structure regulations.

In summary, the expectation of a clear and comprehensive cryptocurrency policy being enacted within the year reflects a growing bipartisan consensus in the U.S. This development is driven by a recognition of the need for regulatory clarity in the crypto market, as well as a commitment to fostering innovation while maintaining economic competitiveness. The legislative efforts underway, including the Securities Clarity Act and the STABLE Act, are key steps towards achieving this goal.