Crypto Regulation: It’s Finally Happening (Maybe 🤷)

Right then. After several years of arguing about whether digital whatsits are actually money – a debate that’s mostly involved a lot of pointing and the occasional outraged tweet – the US crypto industry in 2026 finds itself with a direction. A direction, mind you, that could change with the wind, a particularly grumpy regulatory committee, or the President deciding he prefers carrier pigeons. But a direction nonetheless. It’s a mix of laws that are supposed to happen, rules that are being argued over, and politicians doing what politicians do best: shifting things around.

Under President Trump’s… let’s call it a continued administration, Washington has developed a sudden and suspiciously enthusiastic fondness for crypto. Industry-friendly people are now in all the right chairs, nobody’s yelling at crypto firms quite so much, and banks are being cautiously allowed to hold people’s digital coins. It’s all set up for a potentially important year for US crypto policy, if the world doesn’t end first. ☄️

January Could Break the Deadlock (Or Just Cause More Deadlocks)

The year kicks off with a flurry of activity, mostly involving people talking. The US Senate is expected to start arguing about the CLARITY Act again. It’s supposed to sort out this business of who’s in charge of what – the SEC, the CFTC, possibly a particularly judgmental badger – but mostly it seems to involve lawyers getting paid.

White House crypto advisor David Sacks, a man who clearly has more faith in politicians than most sensible people, says the bill is closer to passing than ever before. Which, given the previous attempts, is a bit like saying a snail is closer to winning the Grand Prix. 🐌 If it does pass, everyone will then start arguing about how to actually implement it, shifting the focus from bluster to the incredibly tedious business of actual rules.

January might also see the SEC doing something surprisingly reasonable. SEC Chair Paul Atkins has promised an “innovation exemption,” meaning crypto startups can try out new things without immediately being sued. This could mean fewer delays and more genuinely interesting projects, or it could just mean more lawyers, cleverly disguised as innovators.

Stablecoin Rules and Crypto Tax Changes Take Shape (Slowly)

Stablecoins are the next big thing to be wrestled with. The GENIUS Act – yes, really – created a framework, but it’s a framework with several crucial bits missing. Regulators are supposed to fill in the gaps by mid-2026, which will probably involve endless committees, PowerPoint presentations, and the occasional strongly-worded memo. 📝

And taxes, oh the taxes. Lawmakers are toying with ideas to make taxing crypto less…well, confusing. Staking rewards, lending, even paying for a cup of coffee with Bitcoin – it’s all a bit of a mess at the moment. They’re thinking about exemptions and clearer guidelines, so you might actually know how much you owe by next Christmas. Possibly.

Federal and State Actions Add Momentum (And Confusion)

The wider economy is also lurking, ready to throw a spanner into the works. Federal Reserve Chair Jerome Powell’s job is up in May, and President Trump is expected to pick someone more keen on lowering interest rates. Cheaper money is generally good for things like Bitcoin, but then inflation might decide to rear its ugly head again. It’s all terribly unpredictable.

Meanwhile, back at the ranches (or rather, the state houses), things are getting interesting. California’s new law means crypto companies need licenses, adding another layer of bureaucracy. And Texas is getting all excited about Bitcoin reserves. Because everything’s bigger in Texas, even digital money.🤠

Midterm Elections Remain a Key Risk (As They Always Do)

But hold on to your hats, because November is looming. The US midterm elections could change everything. A different Congress could mean stalled legislation, watered-down rules, or even a complete reversal of direction. Such is the way of politics. 🤷‍♀️

So, 2026 is shaping up to be the year when US crypto regulation finally leaves the talking stage and enters the messy world of action. Whether that action actually leads to a thriving industry, or just more confusion, remains to be seen. But at least it won’t be boring.

2026-01-02 13:08

January Could Break the Deadlock (Or Just Cause More Deadlocks)

Stablecoin Rules and Crypto Tax Changes Take Shape (Slowly)

Federal and State Actions Add Momentum (And Confusion)

Midterm Elections Remain a Key Risk (As They Always Do)

Read More