From Crackdown to Clarity: Crypto’s Comeback in Washington
Last week MV Global’s Group CEO and Managing Partner, Lee Pickavance, met with key actors driving the crypto markets in Washington D.C. Lee met with the Trump Administration at the White House, Senate, and policy-making organizations to provide input into key legislation that helps shape our quickly maturing industry at a key inflection point.
Executive Director Bo Hines is coordinating the efforts of the White House across multiple government agencies and becoming an increasingly important voice at crypto’s biggest events. Bo clearly articulates the President’s vision and actions to ensure the U.S.’s role in shaping the crypto regulatory landscape with ambitious timelines for legislation supporting stablecoins and market structure, both in public and in our conversation. It is evident this administration understands the strategic importance of new financial plumbing, the power that comes with holding today’s and tomorrow’s reserve assets, and leading innovation in capital markets. He also expressed confidence in meaningful directives regarding crypto coming by this Summer which should continue to positively shape the industry.
Meeting with Senator Lummis’ team it became immediately clear that the historical shifts in monetary systems — nothing less than a paradigm shift in what constitutes money — are top of mind as money enters the digital age. With a deeper understanding of Bitcoin’s significance, this should be a bipartisan no-brainer for lawmakers on the Hill. By adopting much of what is already established by the Howey test, the focus is on updating rather than redefining existing frameworks and offers a viable path forward for legislation that can unlock the full potential of this emerging technology.
An objective and cautiously optimistic view from GBBC’s Chief Executive highlights that momentum is positive but much still has to happen to pass legislation. Both sides of the political aisle are coming together to support key initiatives around stablecoins and market structure, but there are still challenges around perceived missteps around things like meme coins.
Support for crypto more broadly in Washington is reflected in the stakeholder engagement and openness of many Departments including the SEC — with a number of roundtable discussions planned — and openness to engage with and explore how crypto businesses can re-engage and conduct business in the US.
There is still much to do but clearly a momentum swing with energy and smarts to take this forward in the most important global market — where the US leads many will follow.
Crypto’s U.S. Comeback: Regulation, Innovation, and Institutional Momentum
It is worth restating the many actions that highlight the U.S. pivot toward a more crypto-friendly regulatory environment — the impact of these changes is profound and shouldn’t be drowned out by the noise common in the crypto world:
- The new administration is signaling the end of “regulation by enforcement” and laying the groundwork for a structured framework that fosters innovation.
- President Trump signed an executive order establishing the Digital Asset Working Group, chaired by David Sacks, to align federal agencies around a unified digital asset strategy.
- The SEC formed its own Crypto Task Force, led by Commissioner Hester Peirce, aimed at developing clear regulatory classifications, creating realistic registration paths, and shifting away from enforcement-led policy.
- Over 70 percent of U.S. states have now enacted crypto or blockchain legislation, signaling strong regulatory momentum beyond the federal level.
The impact of the regulatory pivot is already playing out across key areas of the ecosystem:
- Crypto Market Structure Bill: A broad package of crypto rules from the Trump administration is targeted for August 1. Lawmakers, including Senator Tim Scott and Rep. Bryan Steil, are confident Congress will deliver a market structure bill by then — backed by Executive pressure to align agencies. The bill aims to clearly divide regulatory oversight between the SEC and CFTC and establish formal registration pathways for crypto exchanges and intermediaries. If passed, it could unlock a wave of institutional capital by removing long-standing regulatory uncertainty.
- Expansion of crypto ETFs: Following the approval of spot Bitcoin and Ethereum ETFs, the SEC’s evolving stance is paving the way for a broader range of products — including proposed ETFs for Solana, XRP, and staking-enabled funds across multiple blockchain networks. These vehicles offer institutional access to staking yields, enhance market liquidity, and channel capital into a wider set of blockchain ecosystems.
- Deepening Integration into Traditional Portfolios: BlackRock’s iShares Bitcoin Trust has been integrated into traditional model portfolios, while RIAs and institutional investors are steadily increasing allocations to spot BTC as regulatory clarity improves. Simultaneously, retail participation continues to grow — with nearly 30% of American adults now owning crypto and many planning to expand their exposure in 2025.
- Strategic Bitcoin reserves at federal and state levels: A March 2025 executive order established a U.S. Strategic Bitcoin Reserve and a broader Digital Asset Stockpile, sourced from seized assets. Multiple states are advancing similar efforts, with Arizona, Texas, New Hampshire, and Oklahoma leading in Bitcoin-backed reserves and treasury diversification. While formal purchases remain under discussion, momentum is building behind the idea — framed increasingly as a strategic and national security imperative by advocates close to the process.
- Federal stablecoin legislation approaching finalization: With the STABLE and GENIUS Acts advancing through Congress, a unified federal framework for stablecoin issuance is expected by August 2025. The legislation outlines reserve requirements, enables both banks and non-financial companies to issue stablecoins, and paves the way for seamless integration into payment systems — addressing long-standing regulatory uncertainty and unlocking institutional participation.
- SEC enforcement pull-back: The SEC has dismissed multiple high-profile enforcement actions, including cases involving Robinhood and OpenSea, while signaling a move toward clearer guidance on token classifications and disclosures. This shift follows mounting judicial pushback — through rulings in cases like Ripple and Grayscale — that have constrained the SEC’s authority and reinforced limits on regulatory overreach.
- Integration of TradFi and DeFi: Regulatory clarity from the rollback of SAB 121, the introduction of SAB 122, and OCC guidance (IL 1183) is enabling U.S. banks to custody digital assets and offer blockchain-based services — laying the foundation for deeper integration between traditional and decentralized finance.
- Tax and accounting reforms: A new law signed in 2025 rolls back the IRS rule that extended broker reporting requirements to DeFi, easing the compliance burden. In parallel, updated FASB standards now allow companies to report crypto assets at fair value, enabling gain recognition and making on-balance-sheet crypto holdings more attractive.
- Surge in enterprise and financial sector adoption: Major U.S. banks and asset managers are expanding digital asset offerings — from crypto custody and trading to tokenized treasuries and funds. BlackRock’s BUIDL, JPMorgan’s tokenized bond initiatives, and partnerships by firms like Visa and PayPal signal deepening institutional engagement.
- Crypto projects eye U.S. return: Regulatory clarity is giving crypto-native firms a viable path to scale operations within the U.S. With enforcement easing, SEC leadership evolving, and new legal structures like DUNAs gaining traction, crypto firms are finally seeing a viable path to operate — and scale — within the U.S. again.
About MV Global
Established in 2019, MV Global has emerged as a force in the Web3 landscape focused on early-stage investments and venture building. Our mission is clear: to partner with mavericks, visionaries, and free thinkers to leverage blockchain-enabled technologies to build for the future.
