The US government is set to undergo major reshuffles in 2025. How will they impact the crypto market?

Earlier, we learned that the SEC would also be getting new leadership. And that includes not just Chairman Paul Atkins, but also the commissioners who vote on key decisions.

In this regard, the coin niche is also expecting positive changes due to the actions of the SEC. Read more about this in a separate article.

What Will Happen to Cryptocurrency Regulation in 2025?

The House Financial Services Committee will begin work on digital asset legislation in the new year. It will be chaired by Republican French Hill. He currently chairs the subcommittee focused on digital assets and has worked on a number of cryptocurrency-related bills in the past.

In an interview with The Block, Hill noted the following about the upcoming changes.

If the cryptocurrency bills fail to pass in the current Congress, both will be my top priorities in the 119th Congress.

It will take about three to four months for congressmen to adapt to the new working conditions, after which they will most likely begin to actively adopt new regulations. This is what Ron Hammond, director of government relations at the Blockchain Association, thinks. Here is his response.

We will see the reintroduction of many bills that we are already familiar with.

Members of the House of Representatives have been trying to pass stablecoin legislation for years. House Financial Services Committee Chairman Patrick McHenry, who is retiring in January, has been working with Democratic Leader Maxine Waters to create a regulatory framework for stablecoins since 2022.

Their stablecoin bill passed a Republican-led committee last year but never gained much traction. At the time, Waters called the bill “extremely problematic” because of a provision that would allow government regulators to approve stablecoins without the Federal Reserve’s involvement.

In the context of the Democrats’ general stance on digital assets, it’s safe to assume that this move was another step in the fight against the coin industry. After all, the SEC under Gary Gensler has been doing this almost openly.

Hill could reintroduce the bill, but other officials could also take the initiative, Hammond said.

The bill will likely move again in the House as the Senate becomes busy with appointments and other matters early in the year.

Specifically, in the Senate, Republican Bill Hagerty introduced a bill back in October to create a regulatory structure for the stablecoin industry. This document is in many ways similar to the version from the House of Representatives. However, the prospects for the bill’s approval remain unclear even in 2025, according to DeFi Education Fund CEO Miller Whitehouse-Levine. He estimated the likelihood of this event at 25 percent.

Patrick McHenry also led the push for FIT21, a bill that would expand the powers and funding of the Commodity Futures Trading Commission (CFTC) to oversee the cryptocurrency spot market and digital commodities. FIT21 would also regulate the powers of the Securities and Exchange Commission (SEC), which, as we’ve noted, has attracted a lot of negative attention after a couple of years of litigation against the digital asset industry.

The new composition of the SEC and CFTC adds uncertainty to the fate of FIT21. In particular, Trump chose Paul Atkins, known for his friendly attitude towards cryptocurrencies, as the SEC chairman. Given this, some provisions of FIT21 may be revised, such as the criteria for determining the decentralization of crypto projects.

Meanwhile, the idea of ​​creating a strategic Bitcoin reserve in the United States is being discussed at the federal and regional levels. Before the election, Donald Trump promised to begin creating a crypto reserve based on an initiative by Senator Cynthia Lummis. In July, she presented a project proposing that the US Treasury Department buy a million BTC over five years, with these coins not to be moved for twenty years.

But Lummis’s proposal lacks support in the Senate and in both parties, Hammond said. Another factor weighing on the bill is Sen. Elizabeth Warren’s new seat on the Senate Banking Committee.

Warren is known for her skepticism of the crypto industry. However, the new Congress will have other priorities, including tax reform and border security, which could push crypto initiatives into the background.

So far, everything is moving towards the fact that the regulation of coins in the US will finally become adequate. This was not the case under Joe Biden, since the Democrats openly fought the crypto industry. Well, the attitude of the new government towards digital assets will be completely opposite.