Future of Crypto Securities Law in the U.S. After 2025 Breakthroughs

For years, crypto companies in the U.S. operated in a legal gray zone. The SEC sued exchanges, labeled tokens as securities without clear rules, and left developers guessing what was allowed. That changed in 2025. What happened this year didn’t just tweak the rules-it rewrote them.

What Changed in 2025?

The biggest shift came with the passage of the GENIUS Act, signed into law on July 18, 2025. This was the first federal law ever to give stablecoins a clear legal home. It gave the Treasury and Fed authority to regulate them as payment instruments, not securities. Suddenly, companies like Circle and Paxos could operate without fearing an SEC crackdown just for offering dollar-backed tokens.

On the same day, the House passed the CLARITY Act. This bill doesn’t become law until the Senate approves it, but its language is already shaping how markets behave. It says: if a digital asset isn’t sold as an investment contract with the expectation of profit from others’ efforts, it’s not a security. That’s a direct rejection of the old Howey Test as applied to crypto. No more vague accusations. No more “we’ll sue you and let the courts figure it out.”

The Anti-CBDC Surveillance State Act also passed the House. It blocks the Federal Reserve from launching a U.S. digital dollar that tracks every transaction. That wasn’t just about privacy-it was about preserving the open, permissionless nature of crypto networks. If the government could monitor every crypto transfer, innovation would die.

SEC’s Big Reversal: Project Crypto

In July 2025, SEC Chair Paul Atkins dropped a bombshell: “Most crypto assets are not securities.” That’s not a suggestion. It’s a policy shift backed by new internal directives.

Before this, the SEC treated every token like a stock. If a project raised money and promised future returns, it was automatically a security-even if the token was used to access a decentralized app. Project Crypto changes that. The SEC now has to create clear, written rules for when a digital asset becomes a security. No more ad-hoc enforcement. No more lawsuits against projects that never claimed to be investments.

The SEC is also drafting rules for:

• How airdrops and network rewards can be distributed without triggering securities laws
• What disclosures are needed for token sales that actually are securities
• How exchanges can offer self-custody options without being classified as brokers

This isn’t deregulation. It’s smart regulation. The goal is to let innovation happen where it belongs-on decentralized networks-while keeping fraud and scams in check.

State Regulators Are Watching Closely

While federal laws are moving fast, state regulators aren’t standing still. NASAA, the group representing all 50 state securities agencies, warned Congress not to weaken their power to fight fraud. They’ve brought over 120 crypto-related enforcement actions since 2020, mostly against fake ICOs and unlicensed advisors.

Their main concern? The CLARITY Act’s attempt to define “investment contract” too narrowly. If federal law only covers assets that meet a strict four-part test, states might lose the ability to go after shady offerings that don’t fit neatly into that box. That’s why the final version of the bill includes a clause preserving state authority to enforce antifraud laws.

This isn’t a fight between federal and state power-it’s about making sure no bad actor slips through the cracks.

How This Affects Real-World Crypto Projects

Before 2025, a startup building a decentralized social media app had to choose between:

• Launching a token and risking an SEC lawsuit
• Not launching a token and losing funding and user incentives

Now, they have a third option: build a network where the token is used for access, voting, or rewards-not as a speculative investment. If the token is distributed fairly, isn’t marketed as a way to get rich, and functions like a utility, it likely falls outside securities law.

Token sales are still possible, but now they have rules. A project can use a “safe harbor” exemption if they:

• Provide a public whitepaper with technical details
• Limit token sales to accredited investors for the first 12 months
• Make the network fully decentralized within three years

This isn’t a loophole. It’s a roadmap.

What About Custody and Banking?

Banks are finally allowed to offer crypto custody services. In August 2025, the OCC, FDIC, and Fed released joint guidance that says federally chartered banks can hold digital assets for customers-even if those assets are classified as securities. They just need to follow clear custody standards: separate accounts, cold storage, insurance, and audit trails.

This is huge. Before, crypto companies had to use unregulated third-party custodians like Coinbase Custody or BitGo. Now, JPMorgan, Wells Fargo, and regional banks can compete. That means lower fees, more trust, and better protection for investors.

What’s Next?

The Senate is expected to vote on the CLARITY Act by December 2025. If it passes, the U.S. will have a full legal framework for crypto: stablecoins regulated, utility tokens exempt from securities law, and securities tokens handled with clear disclosure rules.

The SEC’s rulemaking process will take 12-18 months to finalize. But the direction is clear: innovation is welcome, as long as it’s transparent.

Crypto markets reacted instantly. Bitcoin and Ethereum prices jumped 30% after the GENIUS Act passed. Trading volume on U.S.-based exchanges like Coinbase and Kraken hit record highs. Startups are now filing for SEC registration-not to avoid lawsuits, but to prove they’re compliant.

Why This Matters Globally

For years, crypto innovation moved to Europe, Singapore, and Dubai because the U.S. was too risky. Now, the opposite is happening. Companies that left are coming back. Token issuers are choosing U.S. legal structures. Venture capital is flowing into U.S.-based blockchain teams.

The U.S. isn’t trying to be the “crypto capital of the world” by lowering standards. It’s doing it by setting clear, enforceable rules. That’s what builds real trust.

What You Need to Do Now

If you’re a developer, investor, or business using crypto:

• Stop assuming every token is a security. Look at how it’s used, not just how it was sold.
• If you’re raising funds, use the new safe harbor rules. Document everything.
• If you’re a custodian or exchange, update your compliance policies to match the new banking guidance.
• If you’re a retail investor, understand that not all tokens are the same. Some are like stocks. Others are like digital memberships.

The era of guesswork is over. The rules are being written. And you need to know them.