In 2025, businesses involved in digital assets are facing new compliance challenges due to evolving regulations in the United States and the European Union. As these frameworks develop, companies must adjust to new rules that impact how they operate in the digital asset space.
The European Union has introduced the Markets in Crypto-Assets Regulation (MiCAR), which is now fully in effect. This regulation, along with the Transfer of Funds Regulation and the Digital Operational Resilience Act, aims to enhance oversight of the digital asset market. The goal is to improve market integrity, combat money laundering, and ensure operational security.
Steven S. McNew, a senior managing director at FTI Consulting, highlighted that these changes will have broad implications as digital assets continue to evolve. He noted that there is a lot of anticipation in the industry for clearer regulations and potential growth in the market.
MiCAR seeks to make crypto trading more secure across EU member states. It has four main objectives: protecting consumers from fraud, removing regulatory barriers for crypto transactions, providing companies with new financing options, and fostering new business models using crypto payments. Strong consumer protections under MiCAR are expected to build trust in EU-based crypto firms, potentially attracting more customers, especially in markets where security is a priority.
However, McNew also pointed out potential downsides. The emphasis on transparency and compliance may hinder EU companies focused on decentralized finance or privacy, possibly driving innovation to countries with fewer regulations.
In the United States, recent actions from the executive branch are drawing attention. On January 23, 2025, President Donald Trump signed Executive Order 14178, which aims to strengthen U.S. leadership in digital financial technology. This order sets up a task force to create a federal regulatory framework for digital assets within 180 days and prohibits the promotion of central bank digital currencies.
McNew explained that this could lead to a single regulatory body overseeing cryptocurrency in the U.S., contrasting with the current situation where multiple agencies enforce regulations. This change could provide clarity for businesses on compliance and which agency they need to work with.
Market participants are also watching the U.S. Securities and Exchange Commission (SEC) for signs of a more favorable stance towards cryptocurrency. Recent signals suggest that the SEC may approve more cryptocurrency exchange-traded funds (ETFs) in the near future. The agency has already stepped back from some enforcement actions, including dropping a high-profile lawsuit earlier this year.
Legislation like the Financial Innovation and Technology for the 21st Century Act, or FIT21, is in the works to clarify regulations for digital assets. This bill aims to define standards for decentralization and the roles of intermediaries to support growth and innovation in the U.S. digital asset market.
Stablecoins are receiving significant attention in U.S. legislative discussions because they are easier to understand and assess. The regulation of stablecoins will involve debates on whether traditional banks can participate in this ecosystem and if they will be subject to existing banking rules.
The conversation around digital assets also touches on privacy, security, and law enforcement. Digital transactions are easier to trace than cash, which helps investigators track illicit activities. However, this traceability raises concerns about privacy, especially for companies that may need to disclose payments made under duress, like ransom payments.
As regulations evolve, businesses must find ways to comply while also protecting their privacy and security. McNew emphasized the importance of investing in internal processes to ensure compliance with various financial and data protection laws. Organizations will need expert guidance to implement and validate their compliance controls effectively.
In summary, as regulatory frameworks for digital assets take shape in both the U.S. and EU, businesses must adapt to new rules that could significantly impact their operations. The balance between compliance, innovation, and consumer protection will be crucial in shaping the future of the digital asset landscape.