2025: The End of Four Years of Crypto Regulatory Standoff

In 2025, a four-year crypto regulatory standoff came to an end. US Securities and Exchange Commission (SEC) Chair Gary Gensler resigned, marking the formal conclusion of his “enforcement-based regulation” era.

During Gensler’s tenure, the SEC initiated over 100 enforcement actions against crypto companies. Some had predicted that Gary Gensler’s hardline stance could even influence US presidential election results, once causing significant controversy.

01 The Shift in Regulatory Paradigm

Gary Gensler’s resignation as SEC Chair in January 2025 marked the end of a high-pressure era in American crypto regulation.

Under Gensler’s leadership, the SEC employed “enforcement actions” as its primary regulatory tool, initiating over 100 enforcement actions against crypto companies during his tenure.

His regulatory philosophy became known in the industry as the “ostrich policy,” criticized for avoiding substantive rulemaking while over-relying on temporary, punitive enforcement to address the rapidly evolving crypto ecosystem.

The relationship between industry and regulators was once tense, with Ripple’s CEO even publicly stating that Gensler’s regulatory approach could be a key factor leading to Biden’s defeat in the presidential election.

02 The Turning Point Between Old and New Eras

Gensler’s departure became a clear watershed moment. On April 21, 2025, Paul Atkins was sworn in as the SEC’s 34th Chair.

Unlike his predecessor, Atkins served as co-chair of the Token Alliance since 2017, bringing deep understanding and direct experience in the cryptocurrency sector.

Upon taking office, Atkins quickly redirected the SEC’s course. He publicly criticized his predecessor’s regulatory approach and announced that the SEC’s goal would shift from “regulating through enforcement” to “promoting compliance and fostering innovation.”

His early concrete actions included: withdrawing multiple initiated crypto-related enforcement investigations and establishing a clearer framework for digital asset regulation.

03 Legislative Milestones

The shift in regulatory attitude cleared political obstacles for substantive legislation. On July 18, 2025, the US President signed the “Guidance Establishment and Recognition of Innovation for the Nation’s Unified Stablecoin Act” (GENIUS Act), America’s first comprehensive federal stablecoin legislation.

This law laid the regulatory foundation for payment stablecoins, with core requirements including: issuers must hold 100% dollar-equivalent or short-term Treasury securities as liquid asset reserves, implement strict anti-money laundering (AML) and sanctions compliance programs, and disclose reserve composition monthly.

The passage of the GENIUS Act was widely recognized as a key victory for the crypto industry in Washington. It brought stablecoins into the federal legal framework for the first time, providing much-needed legitimacy to this multi-billion-dollar industry.

Stablecoin legislation was just the first step. The House passed the “Clarity for Law on Regulation of Markets in Digital Assets Act” (CLARITY Act) shortly thereafter in the same month, aimed at clarifying the structure of digital asset markets.

04 Key Dates and Market Outlook for 2026

In 2026, the regulatory blueprint will enter an intensive phase of implementation and refinement. That year’s US crypto policy calendar is packed with key dates that will continue to shape the industry’s future.

• In January 2026, Senate hearings on market structure legislation are expected, aiming to advance the CLARITY Act already passed in the House through the Senate.

Paul Atkins’ promised “innovation exemptions” are also expected to be announced in January, designed to allow entrepreneurs to test new products in a more flexible manner while meeting specific consumer protection requirements.

• July 1, 2026: California’s “Digital Financial Asset Act” will take effect, requiring businesses serving state residents to obtain licenses from state regulators.
• July 18, 2026: The deadline for federal and state regulators to establish specific implementation rules under the GENIUS Act.
• August 2026: Congress may advance key crypto tax legislation proposals, addressing tax ambiguities surrounding staking, lending, and other activities. Meanwhile, CFTC regulatory rules on blockchain technology applications in capital markets are expected to be finalized.
• November 3, 2026: US midterm elections. Potential changes in congressional control could affect whether the current pro-crypto legislative agenda can continue advancing.

You can check the latest and most accurate real-time prices and trading data anytime in Gate’s “Markets” section.

In Gate’s “Crypto Square” and “News” sections, industry veterans and professional analysts share their real-time interpretations of these macroeconomic policy developments.

05 Global Perspective and Uncertainties

America’s regulatory transformation from confrontation to dialogue is not an isolated case. The European Union’s “Regulation on Markets in Crypto-assets” (MiCA) has fully taken effect in phases by late 2024 and 2025, establishing unified crypto-asset rules for 27 member states.

MiCA similarly emphasizes requirements for 1:1 stablecoin reserves, mandatory audits, and comprehensive compliance, while allowing service providers authorized in one member state to operate throughout the EU.

Although regulatory frameworks on both sides of the Atlantic are becoming increasingly clear, significant uncertainties remain globally. How to regulate decentralized finance (DeFi), manage cross-border capital flows, and establish institutional participation rules remain unresolved challenges.

Industry experts point out that these outstanding issues will be core topics that global regulators need to collectively address in 2026 and beyond.

Future Outlook

The transition from the Gensler era to the Paul Atkins era represents just one chapter in the long process of the American and global financial system’s acceptance of digital assets. Gensler’s strict enforcement, to some extent, forced the industry to recognize the importance of compliance, while Atkins’ framework-building provides a viable path for compliance.

In 2026, when California begins issuing crypto asset service provider licenses, when the SEC’s innovation exemptions officially launch, and when Congress debates crypto taxation, market participants will clearly sense that the boundary between the crypto world and mainstream finance is shifting from confrontation toward integration.

This silent transfer of power will ultimately push the crypto industry from Washington’s conference rooms into the digital wallets of everyday users.