Crypto regulation is becoming more defined across major markets, with new rules shaping how cryptocurrencies are overseen. Here’s what’s changed in recent years, which regulators are involved and what those shifts could mean for crypto holders.
For much of its early history, crypto developed faster than the laws around it. Products launched, adoption grew and regulators often responded after problems emerged. That left uncertainty around which rules applied and where regulatory boundaries sat.
That approach is starting to change. In the US, for example, the GENIUS Act establishes a federal framework specifically for payment stablecoins, while other markets are introducing their own licensing, disclosure and oversight requirements.
The details still vary widely by country, and many frameworks continue to evolve. Rules, implementation dates and requirements can therefore differ depending on the market and type of crypto activity.
Signed into law on July 18, 2025, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act created a federal regulatory framework specifically for payment stablecoins, rather than crypto assets as a whole.
Under the Act, a payment stablecoin is a digital asset designed or used for payment or settlement. The issuer must redeem or repurchase it for a fixed monetary value and the asset is expected to maintain a stable value relative to that amount.
Recommended read: What are stablecoins and how do they work?
Reserve requirements are central to the law. Permitted payment-stablecoin issuers must hold eligible reserves worth at least one dollar for every dollar of stablecoins issued. This can include US cash and currency, certain insured deposits, Treasury bills maturing in 93 days or less, qualifying repurchase agreements, government money-market funds and Federal Reserve balances (subject to the Act’s detailed conditions).
The GENIUS Act also restricts issuers from pledging, rehypothecating or otherwise reusing required reserves, subject to specific statutory exceptions.
Further, permitted issuers must publicly disclose their redemption procedures and publish monthly information on the amount of payment stablecoins outstanding, as well as the composition of their reserves. The reserve reports must also be certified by company executives and examined by a registered public accounting firm.
The Act doesn’t simply apply traditional banking rules to payment-stablecoin issuers. Instead, it directs federal and state regulators to develop tailored requirements for capital, liquidity, diversification and risk management. These requirements can reduce certain risks, but they don’t eliminate the possibility of losses.
The law isn't fully in force yet. It takes effect on January 18, 2027 or 120 days after regulators issue final rules, whichever comes first. Regulators missed the July 2026 deadline for those rules: As of October 2026, the OCC, the Treasury and the Federal Reserve have published proposals, but none have been finalized.
The GENIUS Act creates a federal framework specifically for payment stablecoins. A broader bill, the CLARITY Act, would establish clearer jurisdictional lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for other parts of the digital-asset market.
The CLARITY Act passed the House 294–134 on July 17, 2025. On September 15, 2026, a Senate cloture vote on the bill failed 49–50, short of the 60 votes needed to advance it.
The SEC proposed new crypto-asset rules in August 2026, including a tailored offering framework for certain investment contracts involving crypto assets. In September 2026, the CFTC submitted its own planned crypto rulemaking, covering crypto-asset transactions and markets, for White House regulatory review.
In the European Union, the Markets in Crypto-Assets Regulation (MiCA) sets specific requirements for issuing and offering certain types of crypto-assets, including asset-referenced tokens (ARTs) and e-money tokens (EMTs).
For asset-referenced tokens, issuers must be established in the EU and authorized by the competent authority in their home Member State before offering the token to the public or seeking admission to trading, unless an exemption applies. Once granted, that authorization can be used across the EU.
E-money tokens follow a different route. Their issuers must be authorized as either a credit institution or an electronic money institution. They must also notify the relevant competent authority of a crypto-asset white paper and publish it before offering the token to the public or seeking admission to trading.
MiCA also allows certain authorized firms to operate across the EU through what is commonly called ‘passporting’. A crypto-asset service provider authorized in one Member State can provide approved services in other Member States without obtaining a separate license in each country, subject to MiCA’s notification requirements.
A major MiCA milestone arrived on July 1, 2026, when the EU-wide transitional period for existing crypto-asset service providers expired. Providers that hadn't obtained MiCA authorization had to wind down their EU activities, while ESMA urged users to check its register to confirm whether their provider was authorized.
Always check the current requirements with the relevant authority before relying on a specific implementation detail.
US (GENIUS Act) | EU (MiCA) | |
What is covers | Payment stablecoins specifically | Asset-referenced tokens (ARTs) and e-money tokens (EMTs), plus crypto-asset service providers |
Key requirement | At least 1:1 reserves for permitted issuers | ART issuers require MiCA authorization; EMT issuers must be authorized as a credit institution or electronic money institution |
Status | Signed July 2025; takes effect by January 18, 2027 | Fully applicable since December 30, 2024; transition period ended July 1, 2026 |
Legal instrument | Public Law 119-27 | Markets in Crypto-Assets Regulation |
The UK and Singapore are taking different approaches to crypto regulation, but both are moving toward clearer requirements for firms operating in the sector.
In the UK, the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 bring a broader range of cryptoasset activities within the FCA’s regulatory perimeter.
The new regime is scheduled to take full effect on October 25, 2027. It will cover activities such as operating crypto trading platforms, safeguarding cryptoassets, issuing qualifying stablecoins, plus certain dealing, arranging and staking services. Firms can already apply for FCA authorization ahead of the regime taking effect.
Singapore’s framework places a strong emphasis on licensing and anti-money-laundering controls. The Monetary Authority of Singapore (MAS) requires digital payment token service providers to verify customers and beneficial owners. Firms must also review accounts regularly and monitor suspicious activity as part of their AML/CFT obligations.
Since June 30, 2025, Singapore-based digital token service providers that serve only customers outside Singapore must obtain a MAS licence for certain regulated token activities. MAS has set a high bar for these licences and says it will generally not grant them.
Singapore gives eligible firms a supervised way to test financial innovation. Through the MAS FinTech Regulatory Sandbox, firms can trial new financial products or services in a live environment within defined limits. MAS may relax certain regulatory requirements during the test, while safeguards remain in place to manage potential risks.
Crypto regulation can affect what information you receive, which safeguards apply and what checks you encounter when using regulated services.
For example, new stablecoin rules can give users more visibility into how certain products are backed and redeemed. Licensing and compliance requirements can also mean more identity checks, disclosures or account procedures when using regulated platforms.
Tax reporting is changing too. US crypto brokers now report customers' sales to the IRS on Form 1099-DA. The form covers gross proceeds from sales made since January 1, 2025 and cost basis is added for assets acquired from January 1, 2026.
Rules may also affect which products or services are available in a particular country. A firm authorized in one market may face different requirements or restrictions elsewhere.
Regulation can set minimum standards and improve transparency, but it doesn’t make crypto or any particular digital asset risk-free. You still need to understand the product and the risks involved.
Yes, but there’s no single federal law governing every type of crypto asset or activity. Different assets and services can fall under different regulatory frameworks, depending on how they’re structured and used.
The SEC oversees crypto assets that are securities, the CFTC oversees commodity derivatives, and states license many crypto businesses. The CLARITY Act, which would set clearer federal lines between the SEC and CFTC, stalled in the Senate in September 2026.
The GENIUS Act is a US federal law enacted on July 18, 2025, as Public Law 119-27. It creates a regulatory framework specifically for payment stablecoins. Among other requirements, permitted issuers must maintain at least 1:1 reserves, disclose redemption procedures, as well as publish monthly information on outstanding stablecoins and reserve composition. It takes effect by January 18, 2027, at the latest.
MiCA applies directly within the European Union, but users outside the EU may still be affected if the firms or products they use operate there. Asset-referenced token issuers need authorization under MiCA before offering tokens to the public or seeking admission to trading in the EU, subject to exemptions. E-money token issuers must already be authorized as a credit institution or electronic money institution and must meet MiCA’s white-paper requirements.
It depends on the jurisdiction, the service you use and the rules that apply to it. Regulated crypto firms may be required to identify customers, monitor activity, conduct account reviews, report suspicious transactions, etc. But that doesn’t mean regulators automatically see every transaction associated with every individual.
Not automatically, no. Legal-tender status is determined by national law, while a stablecoin is generally defined by how it’s structured and what value it is designed to track. Under the GENIUS Act, a payment stablecoin is a digital asset whose issuer is obligated to redeem or repurchase it for a fixed monetary value and that‘s designed to maintain a stable value relative to that amount. That’s different from being designated as a legal tender.
Important information: This article is for informational purposes only and should not be construed as financial or investment advice. Past performance does not guarantee future results. Services, features and other benefits referenced in this article may be subject to eligibility requirements, token holdings, and may change at the discretion of Crypto.com.
Although the term "stablecoin" is commonly used, there is no guarantee that the asset will maintain a stable value in relation to the value of the reference asset when traded on secondary markets or that the reserve of assets, if there is one, will be adequate to satisfy all redemptions.
