Crypto's Regulatory Reset: Trump Administration Signals Major Policy Shift For Digital Assets

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

After years of uncertainty and aggressive enforcement actions, the crypto industry may finally be entering a new era of regulatory clarity. The Trump administration has begun implementing what many see as a fundamental shift in how digital assets are regulated in the U.S., potentially creating a more hospitable environment for innovation while maintaining focus on preventing illicit activities.

On Jan. 23, President Donald Trump signed an executive order aimed at “providing regulatory clarity and certainty” in the digital asset space. This order established the President’s Working Group on Digital Asset Markets, led by newly appointed “Crypto and AI Czar” David Sacks. The Working Group has been tasked with reviewing existing regulations, recommending modifications or rescissions, and proposing a comprehensive federal framework for digital assets, including stablecoins.

Don’t Miss:

Just two days before the executive order, on Jan. 21, the Securities and Exchange Commission formed its own Crypto Task Force, chaired by Commissioner Hester Peirce, a longtime advocate for clearer crypto regulations. The Task Force’s mandate represents a significant departure from the previous administration’s approach, focusing on developing “a comprehensive and clear regulatory framework” rather than relying primarily on enforcement actions.

The Task Force is addressing several critical areas that have plagued the industry with uncertainty, including:

The security status of various crypto assets
Creating pathways for token registration
Developing custodial solutions for investment advisors
Clarifying rules for crypto-lending and staking programs
Establishing frameworks for crypto exchange-traded products

Recent actions by the SEC indicate this policy shift is already underway. On Feb 21, the agency closed investigations into both Robinhood’s (NASDAQ:HOOD) crypto business and OpenSea, an NFT exchange, without taking enforcement action. On the same day, Coinbase (NASDAQ:COIN) announced that the SEC had agreed in principle to dismiss charges against the company, which had previously been accused of operating as an unregistered securities exchange, broker, and clearing agency.

In a particularly noteworthy development, the SEC declared on Feb. 27 that memecoins “do not involve the offer and sale of securities under federal securities law.” This pronouncement means memecoin transactions do not require SEC registration, providing significant clarity for a popular category of digital assets.

Despite the regulatory relaxation, authorities remain focused on unlawful operations. On Feb. 24, cryptocurrency exchange OKX pleaded guilty to operating an unlicensed money transmitting business and agreed to pay over $500 million in penalties. The exchange was specifically faulted for allowing U.S. customers despite having a ban in place and for lacking adequate anti-money laundering procedures.

U.S. Attorney Matthew Podolsky said in a statement that there will be “consequences for financial institutions that avail themselves of the U.S. markets but violate the law by allowing criminal activity to continue,” signaling that while registration issues may receive less scrutiny, fraud and money laundering will remain enforcement priorities.

Even as federal enforcement shifts, private litigation continues to provide accountability. A class action lawsuit against OKX alleging failure to implement necessary anti-money laundering procedures highlights that legal risks extend beyond regulatory actions.

For crypto businesses and investors, these developments suggest a complex but potentially more favorable regulatory landscape is emerging—one that aims to provide clear rules while continuing to protect against illicit activities. As these changes unfold, industry participants would be wise to stay informed and ensure compliance with fundamental financial regulations that remain firmly in place.

Read Next:

Image: Shutterstock

Send To MSN: 0

This article Crypto’s Regulatory Reset: Trump Administration Signals Major Policy Shift For Digital Assets originally appeared on Benzinga.com