Cryptocurrency industry seeks legislative stability amid regulatory shifts

Industry leaders are warning that recent gains for the cryptocurrency sector may be unstable due to a reliance on executive orders and agency guidance rather than permanent legislation. While the White House and the SEC have adopted more favorable stances, these administrative actions are reversible and may not provide the long-term certainty required for large-scale investment.

Two major legislative pieces have provided some structural foundation. The GENIUS Act, signed in July 2025, established the first federal framework for stablecoins, with regulators tasked with issuing implementing rules by July 2026. Additionally, the CLARITY Act aims to resolve jurisdictional disputes between the SEC and the CFTC by defining which digital tokens are classified as securities versus commodities.

In parallel, SEC Chair Paul Atkins has initiated ‘Project Crypto,’ which utilizes existing regulatory authority to update securities rules for digital assets, including token offerings and custody arrangements, without requiring new laws.