The Changing Landscape of the US Crypto Regulation

Donald Trump’s re-election has the potential to change the policy as well as the people’s opinion on crypto in the US and around the world. We have already seen how much this has influenced the crypto market, and in today’s article, we are going to have a look at legislative initiatives and their possible outcomes.

Historical Context

The US government's approach to cryptocurrencies has evolved significantly from initial skepticism and uncertainty to a more nuanced and regulated framework over the past decade. In the early 2010s, federal agencies struggled to classify cryptocurrencies, with the Internal Revenue Service (IRS) eventually defining them as property for tax purposes in 2014, while the US Securities and Exchange Commission (SEC) grappled with determining which digital assets qualified as securities. 

A major turning point came around 2017, during the Initial Coin Offering (ICO) boom, when the SEC began actively cracking down on unregistered securities offerings, establishing precedents for future enforcement. By 2020, the regulatory landscape had matured considerably, with clearer guidelines for crypto businesses, including FinCEN's requirements for exchanges to implement robust KYC/AML procedures. 

The current environment, as of 2025, includes a more nuanced understanding of blockchain technology, with federal agencies working to balance innovation with investor protection, though debates about regulatory frameworks for DeFi platforms and stablecoins continue. At the same time, the recent approval of spot Bitcoin ETFs shows a big shift in regulatory acceptance.

Latest Changes in Legislation 

Donald Trump's victory in the 2024 presidential election in November became a key catalyst for the cryptocurrency industry in the US. At the Bitcoin 2024 conference, Trump emphasized the importance of crypto assets, calling Bitcoin a strategic tool for the country's financial independence. These statements, along with the fact of his election in November, triggered a so-called "Trump rally" in the crypto market, where Bitcoin reached a new all-time high. 

This optimistic outlook is not limited to a short-term market reaction. Trump's ideas about creating strategic reserves in Bitcoin are now being actively discussed at the state level. Some states have already introduced legislative initiatives, confirming a new round of recognition of cryptocurrency as a tool of strategic policy. 

On December 5, the CEO of Satoshi Action Fund Dennis Porter reported that 11 states within the US as well as 2 other countries are poised to introduce legislation centered around strategic Bitcoin reserves. 

States’ Crypto Initiatives

Here are some states that are taking steps in this direction. 

• Florida. A leader in this direction, the state has already invested $800 million in cryptocurrency and plans to allocate 1% of its funds to create a strategic reserve, which is expected to launch in the first quarter of 2025. 

• Pennsylvania. Local authorities have proposed a bill that allows investing up to 10% of state funds in Bitcoin, demonstrating long-term confidence in cryptocurrency as a savings instrument. 

• Texas. On December 12, a bill was introduced in the Texas House of Representatives proposing the formation of a strategic Bitcoin reserve. According to the document, the reserve will be replenished through taxes, fees, and donations in BTC, which must be held for at least five years. The author of the initiative is Republican Giovanni Capriglione. 

• Ohio. On December 17, a proposal to create a Bitcoin reserve was introduced in the Ohio House of Representatives. The author of the bill, Republican Derek Merrin, noted that he sees Bitcoin as a way to strengthen the state's financial stability. 

What is more, South Dakota, Wyoming, Oklahoma, Arizona, Tennessee, Kentucky, and Alabama are actively discussing similar initiatives and collaborating with experts to create the legislative framework necessary to integrate cryptocurrencies into their financial strategies. 

In conclusion, growing interest in creating Bitcoin reserves highlights the changing attitude towards cryptocurrencies in the US. Such initiatives lay a solid foundation for the long-term development of the industry, strengthening investor confidence and enhancing the country's position in the global financial arena. 

The formation of strategic reserves in Bitcoin could be an important step towards the mass adoption of cryptocurrencies, supporting market capitalization and stimulating the growth of innovation.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.