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For years, crypto regulation in the US has been marked by uncertainty. While digital assets gain mainstream traction, policymakers have often struggled to keep pace, often opting to take an enforcement-led approach rather than setting clear rules.
Since 2021, the number of Americans holding cryptocurrencies has nearly doubled, with roughly 28% of adults now exposed to digital assets in some form.
Over time, and brought into the spotlight during the election, Vice President Harris faced criticism from within her own party for offering only vague assurances on crypto’s future. Meanwhile, frustration has only grown with the SEC’s approach, often described as “regulation by enforcement” – a strategy that many in the industry felt pushed innovation overseas rather than fostering growth within the US.
In his opening days in office, President Trump has set a clear intent to reshape the regulatory landscape, signing the Executive Order titled: “Strengthening American Leadership in Digital Financial Technology.”
But does this mark a true shift, or just a change in strategy?
What’s in the Executive Order?
The order marks a fundamental shift in US crypto policy, setting three major priorities:
- Promoting digital assets, blockchain, and financial technology innovation.
- Blocking the development of a central bank digital currency (CBDC).
- Creating a new Presidential Working Group to draft a clear regulatory framework for digital assets.
Chaired by tech investor David Sacks, the group has been tasked with proposing a comprehensive federal framework within 180 days. It will also assess the feasibility of a national digital asset stockpile, aiming to ensure US leadership in blockchain technology.
In an interview with FOX, Sacks outlined the importance of setting clear definitions for digital assets, stating:
Digital assets can be a number of different things – securities, commodities, collectibles. That’s why we need clear regulations. Founders just need to know the rules of the road so they can innovate without fear of arbitrary prosecution.”
This departure from the previous administration’s approach signals that the White House is serious about regulatory clarity and is prepared to grapple with some of the underlying principles to do so.
A new SEC, a new approach?
Beyond the executive order, Trump’s early moves with the SEC suggest a major regulatory reset. With the appointment of Commissioner Mark Uyeda as Acting Chair, the rescindment and replacement of Staff Accounting Bulletin (SAB) 121 and the creation of a new Crypto Task Force, led by Commissioner Hester Peirce – there’s plenty of clear statements of intent.
Why these changes matter
Under the previous administration, SAB 121 forced crypto custodians to account for customer assets as both assets and liabilities, complicating reporting and discouraging traditional financial institutions from offering crypto services. Uyeda’s move to replace SAB 121 with SAB 122 effectively removes a key roadblock, potentially allowing banks to expand into crypto custody.
The SEC’s new Crypto Task Force also marks a departure from enforcement-driven oversight. Unlike previous regulatory efforts that relied on lawsuits to define crypto rules, the Task Force’s mandate is to:
- provide clear regulatory pathways for token issuers
- develop realistic compliance frameworks for crypto firms
- ensure enforcement actions target true misconduct, not legitimate businesses.
For crypto firms that felt side-lined under the previous administration, these policy changes signal a potential turning point.
From London to the US – A16z and the policy whiplash
The clearest sign of changing sentiment comes from venture capital giant Andreessen Horowitz (a16z).
In June 2023, a16z announced the launch of its first international office in London, citing regulatory uncertainty in the US as a key reason for looking abroad. At the time, a16z’s crypto head, Chris Dixon, accused the Biden administration of trying to “kill off the technology.”
Fast-forward to January 24, 2025 – just one day after Trump’s executive order, a16z announced that it would be closing its London office to refocus on the US, stating:
“We’re excited by the enthusiasm for crypto adoption in the UK, but given the new administration’s strong policy momentum, we’ve chosen to refocus on the US.”
This rapid policy shift is already reshaping investment decisions. Will more firms that previously left the US return?
Regulatory clarity vs legal uncertainty
While these moves suggest a friendlier regulatory climate, ongoing legal battles still cast a shadow over the industry.
Crypto-related lawsuits against firms including Coinbase, Ripple Labs, Roman Storm (Tornado Cash), and Lido DAO could set important precedents that will shape the industry’s future.
While momentum may be building elsewhere, these unresolved legal battles could still create an element of uncertainty.
The route forward for crypto in the US
Moving forward, crypto firms, investors, and regulators alike can expect to see:
Clearer guidelines, but more regulatory complexity: The Presidential Working Group and SEC Crypto Task Force will likely propose formal rulemaking, but the process will take time.
More institutional adoption: Banks and traditional finance firms may re-enter the crypto space now that previous barriers like SAB 121 have been removed.
A potential shift in global regulatory leadership: If the US. truly embraces digital assets, it could regain its leadership in blockchain innovation, reversing years of capital flight.
But one big question remains. How much of this momentum will hold if legal battles continue to dictate crypto’s future?
For now, Trump’s early policy moves have sent a strong signal: The US wants to be a global leader in digital assets again. Whether it succeeds, however, will depend on how this evolving framework translates into action.
How can Bovill Newgate help you stay compliant in the ever-changing crypto landscape?
As the crypto and digital asset landscape rapidly evolves under the new administration, we’re here to help you seize opportunities while minimizing risks. Our expert team ensures that your RIA remains compliant, competitive, and confident in navigating the shifting regulatory currents of crypto and digital assets.
Stay current on evolving regulations: The team continuously monitors new rules and guidance on digital assets and crypto, ensuring your compliance program remains up to date and prepared for changes.
Tailored filings & disclosures: Skilled consultants handle your regulatory filings (ADV, 13F, etc.) making sure all disclosures accurately reflect digital asset activities and comply with SEC requirements.
Digital asset policies and procedures: Specialists draft or refine compliance manuals and codes of ethics, addressing unique crypto-related challenges such as custody, trading, and recordkeeping.
Comprehensive compliance program testing: Regular reviews pinpoint any gaps or weaknesses, allowing issues to be addressed proactively before regulators become involved.
Employee training & enhanced code of ethics monitoring: Ongoing training performed by our specialists helps clarifies responsibilities for staff, while our enhanced code of ethics oversight helps prevent conflicts of interest and other risks that can arise with crypto-native team members.
Regulatory exam preparedness: Our team is available to review policies, coach personnel, and ensure you can demonstrate a robust compliance program when regulators arrive.
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