Written by: Sean Lee, Former CEO of Algorand Foundation
Translated by: Felix, PANews
Cryptocurrencies have long been navigating the gray area between innovation and regulation. As the United States pushes to establish a regulatory framework, the crypto industry is facing a critical moment that could unlock scale, capital, and global influence.
During collaboration with the Crypto Council for Innovation, after multiple dialogues with industry leaders and hearing various perspectives, a turning point emerged: the upcoming framework will guide the next stage of cryptocurrency development.
Reshaping US Crypto Policy and Enhancing Regulatory Clarity
President Trump signed a comprehensive executive order on the third day of his second term. The order "Strengthening US Leadership in Digital Financial Technology" issued on January 23rd revoked a directive signed by Biden in 2022, shifting from a primarily law enforcement-led stance to a new strategy focused on proactive governance. On March 6th, Trump signed an executive order establishing a strategic Bitcoin reserve. This reserve, sourced from seized bitcoins in criminal cases, will not be sold but held as a long-term strategic asset.
The US SEC restructured its cryptocurrency regulatory work into a "Cyber and Emerging Technologies Division", focusing on long-term rule-making and establishing a working group to develop a "comprehensive and clear regulatory framework". SEC Chair Hester Peirce stated that the goal is to allow companies to "experiment freely and build interesting things". Deputy Attorney General Todd Blanche ordered the immediate dissolution of the National Cryptocurrency Enforcement Team (NCET). This decision, outlined in a four-page memo titled "Ending Prosecutorial Regulation" on April 7th, marks a stark departure from the previous administration's approach.
The Stablecoin Act (GENIUS Act) was first proposed in February 2025, marking Washington's first serious attempt to incorporate stablecoins into a clear, federally-supported regulatory framework. At the time of writing, the total global stablecoin circulation was approximately $243 billion, with over 90% denominated in US dollars. The act proposed strict reserve, audit, and transparency standards for stablecoins and prohibited claims of government support. Although the GENIUS Act did not pass in May, it sparked rare bipartisan cooperation and paved the way for future consumer-centric cryptocurrency legislation.
So far, its impact is evident, with crypto market trading activity surging and investor enthusiasm reignited. For example, the $3.6 billion merger between Bitcoin company Twenty One Capital and a SPAC led by Commerce Secretary Howard Lutnick's son Brandon Lutnick reflects the current market sentiment: confident, speculative, and ready to expand. Companies are moving quickly to capitalize on this environment favorable to innovation, listing, and digital asset growth.
This shift in tone has not gone unnoticed: it has already changed how businesses handle infrastructure, legal strategies, and institutional trust.
Clear Regulation Injects New Vitality into Infrastructure Expansion
The policy adjustment has triggered tangible transformations. Uminers CEO Batyr Hydyrov views the SEC's latest stance on proof-of-work mining as a catalyst: "The SEC's clarification that certain proof-of-work mining activities are not subject to securities regulation could reduce miners' compliance burden. This shift and the broader approach to crypto regulation create new opportunities to accelerate the most ambitious parts of our roadmap."
For Hydyrov, establishing a national strategic Bitcoin reserve is a significant catalyst. "Establishing a national strategic Bitcoin reserve signals increasing institutional acceptance of cryptocurrencies, which could further encourage investment in mining infrastructure."
However, Hydyrov remains cautious. "We are gradually expanding targeted investments, especially in areas previously with high regulatory risks. Yet, we maintain a cautious attitude: the regulatory cycle itself is unpredictable... We see the current situation not as a reason to slow down or become complacent, but as an opportunity for prudent expansion and preparation for potential global policy changes."
Legal Adjustments and Fair Access
As the regulatory fog gradually dissipates, the legal framework for regulating market participation is also being redefined. Frank Hepworth, founder of Yieldschool and former regulatory lawyer, believes the policy shift provides a structural green light for decentralized models: "This is a signal. Chain-based companies do not want their tokens traded on SEC-regulated platforms... The government is tacitly allowing companies with competitive advantages to enter the market. Therefore, with reduced penalty risks, more companies can be expected to choose chain-based trading."
He believes this transformation is disrupting traditional regulatory systems. "Several prominent crypto lawyers like Gabriel Shapiro have commented that this administration is unfavorable to their industry, but overall it's extremely beneficial... I agree with this view."
However, Hepworth's sharpest criticism targets outdated access rules: "Voluntary compliance is healthy... but mandatory regulation leads to unequal outcomes, which is the fundamental cause of inequality in the United States." What is his vision? "The regulatory system should be crypto-led and have cryptocurrency as its native element."
Thus, as the legal framework loosens and on-chain innovation accelerates, the next obstacle will be psychological: institutional trust. The industry is currently at this stage, establishing its own standards.
Transparency as a Means of Addressing Uncertainty
Even as regulation becomes clearer, it is not yet perfect. During the transition period, trust must be actively built. GT Protocol, led by Peter Ionov, is at the forefront of this. "Yes, the trend of regulatory relaxation sends complex signals to the market. On one hand, loosening regulatory control is usually seen as a green light for innovation... but on the other hand, the lack of a clear regulatory framework also worries institutional participants."
Peter Ionov states that investor reactions remain as divided as ever: "This largely depends on the type of investor. More flexible entities with higher risk tolerance... may view this as a window of opportunity. In contrast, traditional financial institutions... tend to remain cautious, waiting for more definitive information."
Currently, market-driven trust-building methods are promoting responsible innovation, especially in areas seeking to modernize traditional systems: "The entire industry is shifting towards trust mechanisms centered on transparency... Companies are open-sourcing, publishing audit reports, and collaborating with licensed providers."
More Lenient Regulation as an Economic Catalyst
As transparency enhances investor confidence and legal innovation expands access channels, the stage for the next phase is set: scaling bold ideas. For Construct Koin, this means using AI and blockchain technology to transform real estate finance. Co-founder Chris Baldrey-Chourio explains: "Reducing regulatory burden doesn't mean abandoning rules. It's about creating space for real-world solutions."
However, he warns that as global competitors like the EU and Singapore accelerate their crypto strategies, "The US is currently leading, but this advantage won't last if no action is taken." He also notes the growing momentum around central bank digital currencies and stablecoin standards globally.
While cautious about over-expansion, he believes that reduced enforcement intensity, coupled with collaboration, can be a catalyst for experimentation. "We need regulators and builders to be on the same side." "Only then can we achieve breakthroughs while protecting consumers."
Moreover, this dialogue must be built on shared principles and moral foundations, not just common interests.
Focusing on Ethics in Policy Impact
Certified Public Accountant and founder of Crypto Accounting Group, Andrea Perlak, provided a comprehensive explanation on this topic, stating: "Organizations within the Web3 industry have been committed to maintaining high ethical standards since their inception... Unethical behavior in such a small industry is repulsive and has lasting reputational consequences."
She refuted the misconception that "decentralization means chaos." "Decentralization and accountability are not mutually exclusive concepts... These systems thrive through transparency, multi-level governance, and incentive mechanisms."
As Perlak pointed out, claims of deregulation miss the mark: "It's a misunderstanding to think that crypto industry regulation is being relaxed... The previous government was prevalent in 'enforcement regulation'... Once appropriate legislation is introduced, the industry will breathe a sigh of relief."
Ultimately, with a viable framework on the horizon, the industry is no longer avoiding regulation—but is prepared to welcome it on a solid foundation.
Summary
These voices collectively reflect: a growing field is moving from chaos to shared standards, from closed systems to open, ethical innovation. If the industry can seize this opportunity, leading with transparency, ethics, and inclusivity—not because it is required, but because it is the right thing to do—it may have the potential to redraw the blueprint of modern finance.
