USA Crypto Regulation Watch: May 2025
When cryptocurrency first launched in 2009, many OG investors boasted that cryptocurrency could never be regulated. The reality is, it can, and while not all cryptocurrencies can be controlled, governments are going to do what they can to ensure they track all the money in their society—even the digital money.
Anyway, it’s time to start tracking the regulations of various cryptocurrencies as they come through, so welcome to our cryptocurrency regulation watch, the May 2025 edition.
Currently Existing Federal Regulations (US only)
KYC and AML
Currently, there are no federal regulations governing cryptocurrency activities specifically; however, any cryptocurrency exchanges operating within the United States that offer financial services (such as buying or selling) are required by law to collect KYC and AML information.
KYC and AML specify data that must be collected from customers, usually including their name, address, and their social security number. While the exact data may vary based on the platform and the type of trades they offer, if you use a US-based cryptocurrency exchange, then your data is reported to the US government with some regularity.
Currently Existing State Regulations
In the United States, the states often have just as much power as the federal government, and as such, various states have different regulations that pertain to cryptocurrency. They are as follows.
New York: BitLicenses Required
Any cryptocurrency listed for sale to New York residents must be certified and receive a BitLicense before it can be listed.
California: Digital Financial Assets Law (DEAL)
Similar to New York, California requires crypto companies to obtain a license from the DFPI (Department of Financial Protection and Innovation) and imposes serious penalties to any companies operating outside of the law.
Though this may sound insane compared to the New York law above, the California program is known for being more affordable and easier to navigate than its New York counterpart.
New Jersey: The Digital Asset and Blockchain Technology Act
Like California and New York, New Jersey requires cryptocurrency businesses to obtain operational licenses prior to operating. To receive a certificate a cryptocurrency business must meet certain regulations and obligations to ensure consumer safety.
Connecticut: Money Transmitter License Laws
In Connecticut, any cryptocurrency company must obtain a money transmitter license and meet the same requirements as fiat money transmitting companies—which can be steep, especially when you consider that most companies meeting these regulations are well-known and long-established financial institutions.
Cryptocurrency Bills Under Active Consideration
There have been several cryptocurrency regulations under consideration for years, and they have barely moved. Of course, many are hopeful that this will change with the current administration, but don’t count your chickens yet!
Here are the regulations currently being considered for implementation into law.
1. Financial Innovation and Technology for the 21st Century Act (FIT21)
The FIT21 Act has been proposed to stop the years-long tiff between the SEC and the CFTC over their stances on cryptocurrency. It not only redefines the role of the SEC but also details how digital assets can achieve regulated status.
It passed the House in May 2025 and currently awaits its day in the Senate.
2. GENIUS Act
The GENIUS Act was specifically created to regulate stablecoins—which serve to make both interacting with the cryptocurrency world easier, as well as making it easier to send US dollars across borders. It also adds limits to the issuance of Stablecoins and increases consumer protections.
Our favorite part of this bill is that it would apply to everyone—no special treatment allowed, including Elon Musk and David Sacks. It would also prevent politicians from issuing their own stablecoins to protect their campaigns.
This bill is interesting as it has gained both opposition and support from both parties, finally passing the House vote in May 2025, it is now headed for the Senate where it is assumed it will pass due to the Republican majority.
3. STABLE Act
It’s hard to mention the GENIUS Act without also mentioning the STABLE Act, as both of these aim to regulate cryptocurrency, more specifically, stablecoins. It is important to note, however, that they are separate bills and that they are both in Congress right now. There are rumors that both bills will be combined in summer 2025 in order to present one, unified bill, on Trump’s desk by early fall.
Regardless, the STABLE Act, is more pro cryptocurrency than the GENIUS Act, allowing large companies to create their own stablecoins as long as they get approval from the law. This would allow large companies, specifically those run by Mark Zuckerberg and Elon Musk, to make stablecoins (as we all know they will both gain approval!) What’s more is that both moguls have already expressed interest in the space.
As such, unlike the GENIUS Act, which is loved and hated by both parties, the STABLE Act is staunchly being opposed by most democrats. Especially when they dive down the rabbit hole, which assumes that stablecoins could put banks out of business and ultimately harm the economy.
The democrats have expressed their willingness to pass the bill if certain stipulations are added to prevent large corporations and individuals from making a stablecoin. Unfortunately, the creators of the bill (Republicans) state this would defeat the purpose of the bill. Currently, this bill is still in Congress with no approvals.
4. The Bitcoin Act of 2024
Though Trump was the first to make the idea of a Bitcoin US Federal Reserve go viral, the idea was actually proposed by Congress in 2024. At first glance, the bill was laughed off due to the previous administration, but after Trump’s executive order in March 2025, it seems this bill is back in business.
This bill would serve as a blueprint for how and when the US government acquires digital assets for the Federal Reserve. It would also dictate what needs to be done with the currently estimated 207,000 BTC the US government owns.
While we can’t find an update on this bill in recent months, it is still listed as active in Congress, and we assume that changes/updates will be announced this summer.
