In a previous article I reviewed a few factors that affected bitcoin valuations in 2025. The main objective of that type of analysis is to identify underlying trends that will most likely continue to impact prices in the near future.
Many jurisdictions rolled out clearer rules for digital assets, focusing on licensing, anti-money laundering (AML), and consumer protection. These regulations improved investor confidence and gave more respectability to crypto assets. This was especially true in the US and European Union, markets that are often seen as leaders in the financial world. It is safe then to assume that some of the regulations implemented in these markets will be used as blueprints for legislation in other jurisdictions.
The GENIUS Act was the most important crypto-related regulation implemented in the US. This act puts stablecoins in very solid footing with regards to customer confidence. The act set strict rules for issuers of stablecoins, requiring them to back their coins with high-quality reserves (cash or Treasuries for example) all subject to audits for verification of their compliance.
As it is a federal ordinance, the act covers all US states, providing a consistent standard for the handling of these coins. Customers will now have clear disclosures regarding any potential risks, redemption rights and reserve backing from the stablecoin provider.
Other new regulations in the US were the Clarity Act, which provides clear guidelines for classifying digital assets and avoids the common turf wars between the SEC (which regulates securities) and the CFTC (for commodities). Another regulation, namely the CBDC Anti-Surveillance State Act, may also prove to be very important in the future, as it limits the ability of the government to issue Central Bank Digital Currency without safeguarding the user’s privacy.
The European Union implemented the MiCAR (Markets in Crypto Assets Regulation) a uniform framework for regulations amongst all EU member states. This regulation assures that markets must provide transparent disclosures and safeguards for customer funds.
As a result, these regulations give investors more confidence as it reduces uncertainty when operating across national borders.
Now many in the crypto world have been steadfast in their opposition to any form of regulation, as they see it as an infringement on their rights to privacy, enterprise, and other basic freedoms. These regulations will certainly make it harder for startups as they now have more conditions to conform with in order to operate in these markets. On the other hand, the certainty provided by these norms is attracting fresh cash from investors who may have otherwise stayed out of these markets.
Looking forward it is clear that more regulations will be forthcoming, especially in areas where there is little or no regulation currently. These jurisdictions will most likely study the effects of these regulations which will result in a safer global crypto environment, and open the door to more investments.
