Quicknode

July 29, 2025 — 13 min read

Top figures in government finance and banking called Bitcoin and cryptocurrency a tool for terrorism and law-bypassers only.

Governments and Federal agencies disagree on what a token even was. One called it a commodity. Another? A security. And courts? They were still figuring it out.

Or wait: Can a US citizen sue the SEC or a court to seek justice for the FTX or Terra-Luna implosions?

Further, can a celebrity or their family be held liable for insider trading if they market a cryptocurrency named after them?

“Not really sure” or “It’s not that black and white” are the answers to most questions.

Cryptocurrency or web3 in general, till 2-3 years back, was lawless. Since then, we had half-baked laws and regulations, meaning it was undefined which is not law.

Now, in 2025, the fog is lifting. Executive orders are being signed, acts are being passed, and frameworks passed in 2025 that are helping cryptocurrency emerge from its current gray area are going live.

In the US, crypto policy is no longer an agency tug-of-war. In the EU, MiCA is live across 27 countries.

This blog is a global snapshot of acts, laws, and orders passed in 2025 that are helping cryptocurrency emerge from its current gray area. In 2025, America passed two executive orders and three major pieces of legislation, making it one of the first nations with basic structured digital asset regulation.

Note: This report highlights the most impactful regulatory developments across key jurisdictions in 2025. Many countries are also advancing meaningful crypto legislation. Due to length constraints, this piece focuses on a few major regions with widely adopted policy shifts.

Cryptocurrency Regulations in the United States (US)

For years, the US has been leading the world in tech and innovation. With regards to cryptocurrencies and blockchain, the US is falling behind, and its regulatory chaos didn’t help at all. Agencies like the SEC, CFTC, and Treasury clashed on definitions.

In 2025, America passed two executive orders and three major pieces of legislation making them one of the first nations with basic structured digital asset regulation.

Let’s take a look at the key acts and orders shaping cryptocurrency regulation 2025.

GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins)

Signed into law in July 2025, the GENIUS Act is the United States’ first comprehensive legislation focused exclusively on payment stablecoins. The law establishes a clear legal category for fiat-backed digital assets and defines the conditions under which they can be issued and circulated.

Status: The Act was signed into law on July 18, 2025.

Key provisions include:

• Issuer eligibility: Both insured depository institutions and non-bank fintechs can issue stablecoins, provided they meet federal standards.

• Reserve requirements: All issued stablecoins must be backed 1:1 by US dollars or high-quality liquid assets held in segregated accounts.

• Consumer protections: Issuers must provide redemption rights, daily reserve disclosures, and must comply with fraud, AML, and cybersecurity protocols.

• Oversight: The Act places regulatory authority with federal agencies, including the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, depending on the issuer class.

This Act lays the groundwork for integrating stablecoins into mainstream finance, particularly for use in payments and settlement infrastructure. It also signals that the US government sees properly regulated stablecoins as a complement and not a threat to the dollar.

Digital Asset Market Clarity Act (CLARITY Act)

The CLARITY Act promises to address the single most contentious issue in US crypto regulation: the legal classification of digital assets. The Act provides a formal test to determine whether a token should be treated as a security or a commodity, based on its degree of decentralization and functional use.

Status: Currently pending Senate consideration. Passed the House of Representatives 294-134 on July 17, 2025.

Key components include:

• Token classification framework: The Act outlines criteria related to network decentralization, token utility, and information asymmetry to classify assets.

• Regulatory boundaries: Grants the CFTC authority over digital commodities and establishes SEC oversight only where clear securities characteristics exist.

Outside this, the Act also provides a,

• Safe harbor provision for new projects i.e. a grace period (typically 18–24 months) to achieve sufficient decentralization without triggering violations.

• Disclosure mandates informing projects operating under the safe harbor to provide standardized disclosures to protect retail participants.

The legislation resolves the multi-year jurisdictional conflict between federal agencies by providing objective criteria rather than subjective interpretation.

Anti-Central Bank Digital Currency Surveillance State Act

This Act was passed in direct response to rising concerns about financial surveillance and state overreach. Overarchingly, it prohibits the Federal Reserve from issuing a retail central bank digital currency (CBDC) to the public.

Status: Currently pending Senate consideration. Passed the House of Representatives 219-210 on July 17, 2025.

Key provisions:

• Direct ban: The Federal Reserve is legally barred from issuing a CBDC that is accessible directly by consumers or through intermediaries.

• Privacy and sovereignty: The Act cites the risk of programmable money and financial surveillance as incompatible with civil liberties.

• Stablecoin preference: The Act implicitly supports the development of regulated, privately issued stablecoins under federal oversight.

This law draws a firm line.

It makes clear that US digital currency innovation will proceed through private and market-led development and not via government control.

With all three Acts moving cryptocurrency regulations in the US forward, the House of Representatives declared the Week of July 14th as ‘Crypto Week’.

Outside these Acts, the US also issued a couple of executive orders in 2025, furthering its belief in cryptocurrency.

Establishment of a Strategic Bitcoin Reserve and Digital Asset Stockpile

This executive order establishes the framework for the United States government to create and manage a strategic reserve of Bitcoin.

Status: Signed March 6, 2025.

Key directives:

• Bitcoin as strategic reserve asset: Seized or forfeited Bitcoin will be retained, not auctioned, and consolidated into a national reserve account.

• Separate digital asset stockpile: Non-Bitcoin digital assets will be held in a separate portfolio, with their own custodial and audit requirements.

• Acquisition authority: Federal agencies may acquire Bitcoin through budget-neutral mechanisms or surplus recovery, subject to Treasury oversight.

This is the first time Bitcoin has been formally integrated into US strategic financial policy. It repositions BTC from a speculative asset to one of potential global relevance.

Strengthening American Leadership in Digital Financial Technology

This executive order establishes the foundational policy framework for all subsequent regulatory developments..

Status: Signed January 23, 2025. This crypto executive order revokes Biden’s EO 14067.

Key commitments:

• Rights protection: This bill affirms the US citizens’ right to self-custody, to run nodes, mine cryptocurrencies, and conduct peer-to-peer transactions.

• Anti-CBDC directive: Reiterates the administration’s position against the creation of a digital dollar.

• Unified agency coordination: Directs federal agencies to adopt a consistent and coordinated digital asset policy approach.

• Support for stablecoins: Declares USD-backed stablecoins to be in the national interest, particularly for payments and cross-border commerce.

2025 marks the first clear step toward legal and strategic coherence for the US. With federal stablecoin legislation, clear jurisdictional boundaries, CBDC prohibitions, and a Strategic Bitcoin Reserve, America has established an innovation-friendly regulatory framework for digital assets globally.

Cryptocurrency Regulations in the European Union (EU)

The European Union now leads globally in establishing a unified legal framework for digital assets. After years of fragmented national rules, the EU’s Markets in Crypto-Assets Regulation (MiCA) and the Transfer of Funds Regulation (TFR) have come into full effect.

This gives crypto businesses and institutions operating in Europe a clear, enforceable standard, whether they issue stablecoins or operate exchanges.

Markets in Crypto-Assets Regulation (MiCA)

MiCa is the European Union’s flagship unified digital asset regulation, setting standardized requirements for cryptocurrency asset issuers and service providers across 27 sovereign nations.

Status: Fully implemented December 30, 2024, with active enforcement throughout 2025.

Key provisions:

• Licensing and Passporting: Exchanges, custodians, and wallet providers (CASPs) must obtain a license from one EU authority, which grants them permission to operate across the entire bloc.

• Stablecoin Regulation: Euro-pegged and other fiat-backed stablecoins (termed "e-money tokens" and "asset-referenced tokens") must be fully backed, redeemable, and comply with capital and governance rules. Algorithmic stablecoins are effectively banned.

• Whitepaper Requirements: All public token offerings must include detailed whitepapers outlining risks, operations, and compliance information.

• Market Integrity and Consumer Protection: Stronger rules around insider trading, market manipulation, and investor disclosures.

• Exemptions: Fully decentralized protocols and NFTs are largely excluded from the scope, although regulators may revisit this in future revisions.

MiCA is the EU’s answer to regulatory uncertainty and overall it simply demands innovation to be supervised, documented, and accountable.

Transfer of Funds Regulation (TFR)

The Transfer of Funds Regulation, passed alongside MiCA, brings AML compliance and traceability rules to crypto transactions. It applies the ‘travel rule’ (already used in traditional finance) to crypto asset transfers involving service providers.

Status: Implemented December 30, 2024.

Universal Travel Rule

• Requires complete originator and beneficiary information for ALL cryptocurrency transactions, regardless of amount.

• Eliminates the €1,000 threshold that applies to traditional wire transfers.

• Mandates collection of names, addresses, official identification numbers, and distributed ledger addresses.

• Creates real-time information sharing obligations between CASPs for cross-border transactions.

Self-Hosted Wallet Requirements:

• Transactions above €1,000 to or from self-hosted wallets trigger enhanced verification procedures.

• CASPs must obtain and verify beneficiary information from clients.

TFR ensures that crypto asset flows are subject to the same scrutiny as fiat payments, closing long-standing loopholes in AML enforcement.

The EU has done what few regions have achieved: created a harmonized, enforceable crypto regime across multiple sovereign nations. The frameworks balance innovation enablement with consumer protection and financial stability, likely serving as a template for other regional regulatory initiatives.

Cryptocurrency Regulations in the United Kingdom (UK)

The UK is building a tailored regulatory regime for digital assets grounded in common law. While not as far along as the EU, it has introduced legal recognition for crypto as property and is finalizing a broader framework under its existing financial legislation.

Property (Digital Assets etc) Bill

This Digital Assets bill proposes to grant formal legal recognition to digital assets as a distinct category of personal property under UK law.

Status: Passed House of Lords May 8, 2025, and House of Commons second reading July 16, 2025. Royal Assent expected late 2025.

The Bill effectively creates a ‘third category’ of personal property rights distinct from traditional ‘things in possession’ and ‘things in action’.

This category recognizes digital assets like tokens, stablecoins, and NFTs as a recognized form of property. They all receive property rights like:

• Theft protection: Digital assets gain full criminal law protection against unauthorized taking.

• Inheritance inclusion: Digital assets become part of estate planning and succession law.

• Collateral usage: Enables secured lending arrangements using digital assets as security.

• Insolvency claims: Establishes creditor rights in bankruptcy proceedings involving digital assets.

• Trust arrangements: Permits digital assets to be held in trust structures.

This legal designation gives developers, institutions, and courts a shared understanding of how crypto fits into the broader property framework. It reduces ambiguity around ownership and rights enforcement — a critical step for scaling institutional adoption.

Broader UK Regulatory Timeline

While not yet finalized, the UK government has released draft legislation to regulate crypto activities under the Financial Services and Markets Act (FSMA). This includes exchange operations, token issuance, and custody — all treated as regulated activities requiring FCA authorization.

Highlights of the draft:

• Activity-based regulation: Covers both centralized exchanges and crypto service providers that have UK users.

• Stablecoin rules: Fiat-backed stablecoins intended for payments will be supervised by the Bank of England and FCA, with specific rules on reserve backing and redemption.

• DeFi carve-outs: The draft exempts ‘fully decentralized arrangements’ where no identifiable party exists.

• Overseas services: Foreign firms serving UK residents may be required to establish a UK legal entity.

The framework is still under review, with final legislation expected in late 2025.

Cryptocurrency Regulations in Hong Kong

Hong Kong established itself as Asia's leading jurisdiction for cryptocurrencies, implementing the region's first stablecoin licensing framework.

Stablecoins Ordinance

The Stablecoins Ordinance introduces a full licensing regime for the issuance and circulation of fiat-pegged stablecoins in Hong Kong. It requires mandatory licensing for entities meeting specified business conduct thresholds and establishes the Hong Kong Monetary Authority (HKMA) as the sole licensing and supervisory authority.

Status: Passed Legislative Council May 21, 2025. Effective August 1, 2025.

Key provisions:

• Reserve requirements: Stablecoins must be backed 1:1 by high-quality liquid assets (HQLAs), held in segregated accounts, and subject to third-party audits.

• Redemption rights: Issuers must guarantee redemption at par value at all times and honor withdrawal requests promptly.

• Capital standards: Issuers must maintain a minimum paid-up capital of HK$25 million and meet ongoing solvency requirements.

• Ban on algorithmic stablecoins: Any stablecoin that is not fully collateralized or relies on algorithmic mechanisms is strictly prohibited.

Note: The HKMA has clarified that marketing or offering unlicensed stablecoins — regardless of jurisdiction of origin — will be a prosecutable offense.

Hong Kong is not attempting to regulate the full breadth of web3 or DeFi. It’s starting with the most systemically relevant component: stablecoins.

The focus is narrow and firm: fiat-backed stablecoins, financial soundness, and investor and consumer protection.

Legality, Regulations, and Acts: What This Means for Cryptocurrency and Web3

2025’s wave of regulatory clarity is a high signal for infrastructure maturity.

As laws replace ambiguity, builders now have stable ground to design systems that align with compliance, institutional requirements, and public accountability.

Here’s what this unlocks:

• Stablecoins at scale
  Legal frameworks in the US, EU, and Hong Kong allow payment networks, fintechs, and banks to build compliant, fiat-backed stablecoins.

• Custody, compliance, and identity layers
  With clear rules on ownership, licensing, and AML standards, new options emerge for custody solutions, KYC modules, and permissioned access rails.

• Institutional adoption
  Clear regulatory pathways remove adoption barriers that previously constrained institutional participation. Traditional financial institutions, sovereign wealth funds, and multinational corporations can now allocate capital to digital assets within defined risk parameters.

• DeFi Legibility
  Even if not directly regulated, DeFi protocols now operate in a world where optional compliance is increasingly valuable — for frontends, integrations, and growth.

• Compliance is a competitive advantage
  Regulatory frameworks impose professional standards that demand infrastructure reliability. Licensed entities cannot afford network downtime, API failures, or data inconsistencies. This creates sustainable competitive advantages for infrastructure providers capable of meeting institutional requirements.

All in all, regulations are clearing the path for infrastructure builders to go mainstream.

Looking Forward with Regulation as Foundation

The laws and executive orders of 2025 are establishing the foundation for cryptocurrency's phase of legitimacy and adoption. For the first time, jurisdictions are drawing lines around cryptocurrency for what’s permitted, what’s enforceable, and where responsibility lies.

That clarity matters. It signals to builders that cryptocurrency isn’t outside the system anymore.

But with clarity comes accountability. The next wave of progress will depend on how well infrastructure aligns with these rules like how:

1. Protocols integrate compliance without compromising openness,

2. Stablecoins scale without slipping into systemic risk, and

3. Builders adapt in a world that has legal boundaries.

The regulatory foundation is complete. What’s ahead now is construction — on solid ground.

Note: This report highlights the most impactful regulatory developments across key jurisdictions in 2025. Many countries are also advancing meaningful crypto legislation. Due to length constraints, this piece focuses on a few major regions with widely adopted policy shifts.