In January, the cryptocurrency industry toasted Donald Trump's second presidential inauguration at a pre-inauguration event featuring Snoop Dogg’s music, marking the start of a year filled with major legislative and regulatory victories. However, this momentum may not carry into 2026.
Under Trump’s crypto-friendly administration, the industry secured key wins: the SEC swiftly rescinded strict crypto accounting guidance, dropped lawsuits against firms like Coinbase Global, Inc. and Binance initiated during the Biden era, and passed landmark legislation establishing federal oversight for dollar-pegged stablecoins.
A top U.S. banking regulator also eased restrictions on crypto-related banking activities, granting conditional licenses to crypto firms. Coupled with the Trump administration’s Bitcoin reserve initiative and SEC approvals for new crypto products, these moves propelled Bitcoin to record highs, boosting mainstream adoption—though critics warn of investor and systemic risks.
Yet, crypto executives note unresolved challenges. Market-structure legislation addressing core industry issues and proposals exempting certain SEC rules remain pending, potentially dampening optimism. "2025 has been a banner year, but there’s still much work ahead," said Miller Whitehouse-Levine, CEO of the Solana Policy Institute, at the Reuters NEXT conference.
**"The Crypto President"** Trump, who courted industry donations by pledging to be a "pro-crypto president," saw his family’s crypto ventures further legitimize the sector. Days after his inauguration, the SEC ended years of enforcement actions against crypto firms, which had argued tokens resemble commodities, not securities.
Crypto firms and executives donated over $245 million in the 2024 election cycle to pro-crypto candidates, including Trump, per FEC data. In July, the House passed a bill clarifying token classifications—a milestone for legal certainty—but it stalled in the Senate over disputes on anti-money laundering rules and decentralized finance (DeFi) compliance.
"The industry has spent millions pushing this bill, but victory isn’t guaranteed," said Sheila Warren of the Tech Freedom Institute at Reuters NEXT. Lobbyists warn that Congress’s focus shifting to the 2026 midterms—where Democrats may retake the House—could kill the bill, leaving firms reliant on reversible regulatory guidance.
"Long-term, we can’t rely on crypto-friendly governments. We need market-structure laws," said David Mercer, CEO of LME Group, which operates a crypto exchange. The Senate Banking Committee is drafting its version, with Chair Tim Scott’s spokesperson noting progress toward early 2026 advancements.
**Regulatory Easing** Crypto firms are eyeing regulatory tweaks, particularly the SEC’s proposed "innovation waiver," expected in 2026, allowing faster rollout of new business models—though its scope remains unclear. Mercer called it a "breathing space" for token issuers avoiding SEC lawsuits. The SEC declined to comment.
Enhanced SEC-CFTC collaboration is also expected to streamline crypto product oversight. Trump’s CFTC nominee, Michael Selig, now advising SEC Chair Paul Atkins, awaits Senate confirmation, potentially accelerating the process.
"These policy and personnel shifts are paying off," said Les Borsai, co-founder of Wave Digital Assets, who attended January’s inaugural crypto industry dinner in D.C. He added that clearer regulations should encourage institutional investors to "dive deeper into crypto."
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