When National authorities delve into the realm of CryptCurrency, the implications become clear.
In the ever-evolving world of cryptocurrency, regulation is fast becoming a global priority. As of mid-2025, the global government regulation of cryptocurrency is advancing towards clearer federal frameworks, with a focus on stablecoins.
In the United States, the GENIUS Act was passed in July 2025, marking the first major federal law to regulate stablecoins comprehensively. The law mandates that stablecoin issuers hold full reserves backing the tokens, undergo monthly audits, comply with anti-money laundering rules, and meet consumer protection standards. The law assigns primary jurisdiction over decentralized digital commodities to the Commodity Futures Trading Commission (CFTC), while the Securities and Exchange Commission (SEC) retains control over securities-like tokens. The Internal Revenue Service (IRS) treats cryptocurrencies as property for tax purposes. This move towards coordinated federal oversight also includes continued state-level involvement in licensing and consumer protection.
Globally, over 90 countries are actively exploring or piloting Central Bank Digital Currencies (CBDCs), with China’s e-CNY and the European Central Bank’s digital euro projects being prominent examples. However, U.S. regulators and policymakers emphasize the risks of CBDCs to sovereignty and individual rights, preferring to encourage private sector stablecoin innovation instead.
China presents a contrasting model, having banned cryptocurrency financial activities completely since 2021 but aggressively promoting blockchain technology under strict governmental control. China’s blockchain vision is centralized and permissioned, in sharp contrast to the open, decentralized cryptocurrencies popular elsewhere.
While the U.S. is currently seen as a leader in regulating cryptocurrencies, many countries still lack specific legislation. Global coordination and broader crypto regulations remain a significant ongoing challenge. Switzerland, for instance, has taken a more conservative approach to cryptocurrencies, especially ICOs, in recent years. On the other hand, the U.K. is slowly embracing cryptocurrencies and blockchain technology for commercial purposes.
Cryptocurrency is not just a currency but rather a new type of asset that has value and is regulated like any other asset. The potential for the amount of money exchanging hands in this digital monetary system is mind-boggling and could potentially even replace national currencies altogether. However, governments use cryptocurrency as a means to monitor transactions and maintain control over these transactions.
The United States is coming around to blockchain technology and digital currencies such as Bitcoin and Ethereum. Governments are interested in cryptocurrencies as they offer another tool for managing transactions in the finance industry and can help expand and innovate financial solutions. However, they are also concerned with four main things: prevention of fraud and abuse, development of an infrastructure that supports cryptocurrencies, protection of national security, and monitoring of cross-border trade.
The types of cryptocurrency are a significant aspect to understand for those planning to trade. Unlike El Salvador, few other nations are willing to accept cryptocurrency as legal tender. Some countries have laws concerning digital currency in which banks must follow rules concerning fraud and reporting important data to regulators. Some nations may use their state-issued currency as a substitute for cryptocurrency to boost domestic economies.
The identity of a wallet owner is recorded on the blockchain as part of a transaction, although it may not be possible to trace back to an individual or party inside the transaction. Businesses looking to raise money through ICOs will be subject to securities regulation in some countries and must disclose an element of risk in their offering. Governments may also use cryptocurrency to increase transparency between nations, making cross-border trade safer.
In summary, the state of cryptocurrency regulation worldwide is characterized by increasing federal U.S. regulation focused chiefly on stablecoins and clarifying agency roles, global experimentation with CBDCs alongside caution about their risks, a dichotomy between China’s blockchain embrace without crypto and Western openness balanced by regulation, and the emerging need for enhanced international coordination and consumer protection frameworks to keep pace with growing crypto use and innovation.
[1] CoinDesk (2025). The GENIUS Act: What It Means for Crypto Regulation in the U.S. [online] Available at: https://www.coindesk.com/policy/2025/07/22/the-genius-act-what-it-means-for-crypto-regulation-in-the-us/
[2] Reuters (2025). U.S. regulators and policymakers warn of risks of CBDCs. [online] Available at: https://www.reuters.com/business/us-regulators-policymakers-warn-risks-cbdcs-2025-06-01/
[3] The Wall Street Journal (2025). Global Crypto Regulation Lags Behind Rapid Growth. [online] Available at: https://www.wsj.com/articles/global-crypto-regulation-lags-behind-rapid-growth-11633719567
[4] South China Morning Post (2021). China bans cryptocurrency financial activities. [online] Available at: https://www.scmp.com/tech/policy/article/3145137/china-bans-all-cryptocurrency-transactions-and-mining-activities
[5] The Economist (2025). The future of cryptocurrency regulation. [online] Available at: https://www.economist.com/leaders/2025/07/03/the-future-of-cryptocurrency-regulation
- As the global focus on cryptocurrency regulation intensifies, there is growing interest in the role of technology in shaping investment opportunities within the industry. For instance, the United States' passing of the GENIUS Act in July 2025 has set a precedent for technology-driven regulation, with a focus on stablecoins.
- With approximately 90 countries exploring Central Bank Digital Currencies (CBDCs) worldwide, global finance is poised to experience significant technological advancements. However, the ongoing debate on the impact of CBDCs on sovereignty and individual rights necessitates a mix of technology, prudent regulation, and strategic investment for a balanced approach.
