The US Takes Significant Steps Towards Digital Asset Regulation: Can It Compete with Europe’s Framework?

The big picture is clear: after years of avoidance, the U.S. is now building a regulatory structure for digital assets.

The United States is finally making substantial moves toward regulating digital assets after years of hesitation. As Europe enhances its regulatory framework for cryptocurrencies under the Markets in Crypto-Assets Regulation (MiCA), the U.S. government is also stepping into the spotlight with new bills aimed at establishing a clearer regulatory structure. This shift represents a pivotal moment for the crypto industry in the U.S., presenting both challenges and opportunities.

Key Takeaways

The U.S. is transitioning from avoiding specific crypto regulations to establishing a comprehensive framework.
The proposed CLARITY Act aims to define federal oversight over digital commodities, while the GENIUS Act imposes stringent requirements on stablecoin issuers.
The Anti-CBDC Surveillance State Act seeks to ban U.S. central bank digital currency, contrasting with the EU's plans for a digital euro.
The U.S. regulatory landscape remains fragmented compared to the EU's integrated system, but agencies are already stepping in to provide some clarity.

A Changing Landscape for Digital Assets

For years, the European Union has been at the forefront of regulating digital assets, particularly since the early discussions in 2020 that led to the Markets in Crypto-Assets Regulation (MiCA). In contrast, the United States has primarily relied on existing laws to govern the digital space, resulting in a lack of specific regulations for cryptocurrencies. This approach allowed the crypto sector to develop but created significant uncertainty, prompting many businesses and individuals to relocate to more crypto-friendly jurisdictions. Under the Biden administration, efforts to curb banking support for the crypto industry—often referred to as Operation Choke Point 2.0—further complicated matters.

However, 2023 marked a turning point for the U.S. in the world of cryptocurrencies, highlighted by an increased focus on digital finance. President Donald Trump emphasized the importance of digital assets at the federal level, which coincided with three notable bills being introduced in Congress: the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act. Together, these measures aim to move the U.S. closer to a regulatory framework that aligns with the EU’s approach to recognizing and categorizing digital assets.

The Proposed Regulatory Framework

The CLARITY Act seeks to establish a federal framework for digital commodities, overseeing them through both the SEC and CFTC. A notable feature of this proposal is the introduction of the term "investment contract asset," which allows a token initially classified as a security to transition to commodity status after becoming decentralized and reaching maturity. This act creates distinct categories for Digital Commodities, Digital Assets regarded as securities, and Permitted Payment Stablecoins, while also outlining rules for custody, transactions, anti-money laundering (AML), and international cooperation.

On the other hand, the GENIUS Act, which was enacted in July 2025, mandates strict licensing measures for stablecoin issuers. Requirements include maintaining a 1:1 backing with safe liquid assets, monthly reserve reporting, compliance with AML regulations, and ensuring that stablecoins do not accrue interest for holders while providing redemption rights in the event of issuer failure. The MiCA regulation has similar provisions but streamlines the process under a single license applicable throughout the EU.

Contrarily, the Anti-CBDC Surveillance State Act, which has passed the U.S. House of Representatives but is not yet law, aims to outright ban any U.S. central bank digital currency. In contrast, the EU is actively pursuing the idea of a digital euro under the governance of the European Central Bank (ECB).

Progress Amidst Fragmentation

The U.S. government is now emphasizing three central areas: asset categorization, stablecoin reserves, and consumer protection. This approach invites comparison with the EU framework, which is seen as a cohesive system, while the proposed U.S. strategy appears to be divided and agency-driven. For issuers, the EU provides a straightforward compliance pathway, whereas the U.S. regulatory environment, even with the new framework, requires navigation through multiple regulatory bodies. However, the regulatory gap may begin to contract.

Despite having two proposals pending, regulatory agencies are taking proactive steps to establish clear guidelines. The SEC has already approved Bitcoin Bitcoin btc0.56% and Ethereum eth1.72% exchange-traded products to facilitate “in-kind” creations and redemptions, thereby aligning them with commodity-based exchange-traded products like gold. SEC Chairman Paul S. Atkins described this development as a move toward a “fit-for-purpose” framework. Additionally, Nasdaq has approached the SEC for approval to trade tokenized securities, stipulating clear labeling for processing under traditional stock frameworks. If implemented, blockchain technology could transition from a peripheral role to a central component in equity markets.

In conclusion, the U.S. is embarking on a journey to establish a regulatory framework for digital assets after years of neglect. While it may not yet be as unified as Europe’s, the rapid progress indicates a significant leap forward. For industry leaders, this presents both challenges and opportunities in adapting to new regulations and influencing the U.S.'s role in the global digital economy.