Policy Backgrounder: The Outlook for Digital Assets in 2026

The Outlook for Digital Assets in 2026

05 February 2026 / Article

After a landmark year in digital assets, policymakers and regulatory agencies appear poised to continue to ease regulatory burdens and clarify legal frameworks for the sector. This may encourage firms to integrate digital assets into their operations, including in treasury management, cross-border transactions, and payments.

Trusted Insights for What’s Ahead^®

Passage of the GENIUS Act may encourage more firms to become stablecoin issuers including, with receipt of a regulatory exemption, non-financial firms. It may also facilitate further integration of digital asset markets and traditional financial markets.
Regulators significantly eased regulatory barriers for the crypto industry in 2025, for example rescinding guidance that blocked SEC-regulated firms from engaging in crypto services and dropping pending enforcement actions.
Congress appears likely to pass the CLARITY Act, which would complement the GENIUS Act by establishing a regulatory framework for digital assets not covered by the GENIUS Act. The CLARITY Act would give the Commodity Futures Trading Commission (CFTC) jurisdiction over most types of digital assets.
The SEC is also exploring significant regulatory changes to expand the crypto industry, including allowing a temporary “innovation exemption” to allow firms to bring new products to market while waiting for regulatory approvals and adopting regulations to allow tokenized securities to trade on platforms not regulated by the SEC.

Key Developments in 2025

In 2024, the President pledged to make the US the “crypto capital of the planet and the bitcoin superpower of the world.” Upon taking office, the Administration worked swiftly to make good on this promise – signing executive orders, enacting a landmark regulatory bill, and advancing regulatory measures to support the crypto industry and promote the integration of digital assets and traditional finance. Taken together, these steps made 2025 a highly consequential year not only for crypto firms, but also for traditional financial institutions and businesses considering increased involvement in crypto markets.

Executive Orders

In January the President signed an executive order establishing a working group of Federal agencies to recommend federal policy changes to support the growth of digital assets, including evaluating the feasibility of a national digital asset stockpile. The President subsequently issued an Order in March creating the reserve, initially consisting of bitcoin and other cryptocurrencies already held by the Federal government. While the government has not released much additional information about the status of the reserve, according to press reports, the US government holds about $29 billion in Bitcoin, a 50% increase since a year ago.¹

Stablecoin Regulation

Enactment of the GENIUS Act in July, establishing a comprehensive regulatory framework for stablecoins in the US, was a landmark event for the crypto sector. The first major US law specifically designed to regulate a crypto asset, the GENIUS Act addresses key regulatory issues related to stablecoins, including what types of firms could issue stablecoins, the respective roles of Federal and state regulators, management of reserve assets, and the payment of interest on stablecoin holdings.

Regulatory Agencies

The Securities and Exchange Commission (SEC) has favored a more permissive approach that has prioritized developing guidelines tailored to digital asset markets. To that end, the SEC also launched a Crypto Task Force to develop a “comprehensive and clear regulatory framework for crypto assets.”

In early 2025, the SEC rescinded guidance – Staff Accounting Bulletin (SAB) 121 – which had required that firms providing custody services for crypto assets record the value of those assets on their own balance sheet, which raised costs for firms with balance sheet regulatory requirements (e.g., capital ratios). The replacement guidance – SAB 122 – granted firms more discretion in determining whether the crypto assets should be recorded as liabilities based on the likelihood and value of potential losses, opening the door to major banks providing custody services. The SEC also terminated most enforcement actions pending against crypto firms, including a key case in which the SEC alleged that the sale of cryptocurrencies on the exchange Coinbase constituted the sale of unregistered securities. This approach is now reflected in SEC guidance and statements on a variety of topics.²

The banking regulators – the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), and Federal Deposit Insurance Corporation (FDIC) – have also taken a more accommodating approach to the crypto sector, rescinding guidance that had discouraged banks from engaging with crypto firms or providing crypto custody services to customers.

In addition, the Department of Justice announced that it would cease targeting crypto currency exchanges and service providers for the actions of their users or for “unwitting” violations of regulations (including violations of the Bank Secrecy Act, operating as an unlicensed money transmitter, or offering unregistered securities) except in cases involving defrauding customers and investors or unlawful conduct by cartels, terrorists, or similar organizations. The Treasury Department also removed sanctions imposed on Tornado Cash, which the Department had previously accused of facilitating money laundering more than $7 billion in cryptocurrency, including $455 million stolen by a North Korean state-sponsored hacking ground.³

Policy Outlook

In 2026, Congress and regulators are focused on resolving longstanding questions around jurisdiction, market structure, and permissible trading venues for digital assets beyond stablecoins. These debates will shape not only the regulatory perimeter, but also the extent to which digital asset markets can integrate with traditional financial infrastructure.

Market Structure Legislation

Congress is currently considering the Digital Asset Market Clarity Act (the “CLARITY Act”), which would complement the GENIUS Act by establishing a regulatory regime for the rest of the digital assets landscape. Notably, the Act would narrow the SEC’s jurisdiction over digital assets and define most types of digital assets as commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC). The House passed the Clarity Act with bipartisan support in July, but passage in the Senate has been complicated by a debate over whether a provision should be added to strengthen a GENIUS Act prohibition on stablecoin issuers paying interest on holdings. Still, many observers expect passage this year.⁴

Additioanl Regulatory Developments

The SEC and CFTC have launched a “Harmonization Initiative” to “eliminate duplicative and conflicting regulatory requirements [and] provide clear guidance on jurisdictional boundaries,” among other objectives. While the initiative’s scope includes traditional financial products, emerging technologies such as digital assets are a major focus. Agency leaders have indicated that in 2026 they will work to outline a clear taxonomy for digital assets to reduce regulatory ambiguity with the SEC focusing on developing a regulatory framework for oversight of tokenized securities – that is financial instruments represented by crypto assets where the record of ownership is maintained on a crypto network.⁵ According to some estimates, the global market for tokenized assets (including securities and other financial instruments) could reach $2 trillion by 2030.⁶

The SEC Chair has also expressed interest in establishing a temporary “innovation exemption” to allow firms to bring new products to market while waiting for regulatory approvals.⁷ At his direction, the SEC is also exploring the possibility of allowing tokenized securities to trade on platforms not regulated by the SEC. This would expand secondary markets for securities while also raising questions about investor protection, jurisdictional boundaries, and the roles of existing securities intermediaries.⁸ A statement from the SEC Commissioner leading its Crypto Task Force suggested that the agency may also revise existing regulations governing national securities exchanges and alternative trading systems to facilitate trading of digital assets across platforms.⁹

Federal Reserve Accounts for Stablecoin Issuers

The Federal Reserve has requested input on the possibility of creating a limited Federal Reserve account for firms that provide innovative payment services, potentially including some stablecoin issuers.¹⁰ This would provide such firms with access to the Federal Reserve’s payment rails and a safe destination for stablecoin reserve assets that lacks credit or liquidity risk.¹¹

Outlook & Implications for Business

Passage of the GENIUS Act significantly reduces regulatory uncertainty for the stablecoin sector, which may encourage new and incumbent firms to issue stablecoins. This is perhaps most likely for financial institutions seeking to avoid being disrupted by digital asset firms and consumer-facing brands that see another way to earn yield on customer funds held as stablecoin reserves. Starbucks, for example, holds about $1.77 billion in customer funds in unredeemed gift cards.¹² Notably, the Act limits the ability of public non-financial companies – including wholly or majority-owned subsidiaries – from issuing stablecoins without a banking license without an exemption granted by a new Stablecoin Certification Review Committee (SCRC), consisting of the Treasury Secretary, the Chair of the Board of Governors of the Federal Reserve, and the Chair of the FDIC. It is not yet clear how easily the SCRC will choose to issue exemptions, but only two members are necessary to approve an exemption.

Firms may also begin to consider how stablecoins may be used in their operations. For example, stablecoins could help firms manage treasury operations and payments across borders by facilitating 24/7 instant settlement subject to relevant regulations in each country. Stablecoins can also help reduce counterparty risk by facilitating delivery v. payment (DVP) without relying on a central clearinghouse or intermediary. Over time, depository institutions may observe substitution of deposits for stablecoins, particularly if issues are allowed to pay interest (or its technical equivalent) to holders.

Digital asset firms in the US should also expect to see an accommodative regulatory posture, reflecting the Administration’s ongoing commitment to promoting the crypto industry.