Biggest US Regulatory Changes in Q1 2025

The first quarter of 2025 has brought significant changes to the way the United States approaches digital assets and financial innovation. From the top levels of federal policy to agency-level leadership and accounting rules, the new administration has acted quickly to change direction. These updates reflect a clear shift toward embracing new technologies with fewer restrictions and more clarity.

Here are the most important developments from Q1 that are already influencing the digital asset space and the industries around it.

A New Executive Order on Digital Finance

Just three days after taking office, President Trump signed an executive order that replaced the 2022 digital asset policy from the previous administration. This new order lays out a clear agenda. It supports the use of public blockchain networks, encourages the development of stablecoins backed by the dollar, and blocks the creation of a U.S. central bank digital currency.

It also calls for regulation that treats technologies equally, regardless of the form they take. This change in tone is aimed at making the U.S. more competitive in areas where other countries have already moved ahead.

A Federal Task Force Focused on Digital Assets

Along with the executive order came the formation of a new interagency working group on digital assets. This group, led by David Sacks, the Special Advisor for AI and Crypto, includes leadership from key agencies like the SEC, CFTC, and the Department of Treasury.

They have been directed to review all existing digital asset-related regulations within 30 days and to recommend updates or withdrawals within 60. A full report with proposed policy and legislative changes is expected in 180 days.

SAB 121 Is Out. SAB 122 Changes the Game

One of the biggest obstacles for traditional banks wanting to offer crypto custody services was SAB 121, introduced in 2022. It required banks to report customer-held crypto assets as liabilities on their balance sheets, making it economically difficult to offer those services.

In January, the SEC rolled back SAB 121 and issued SAB 122. This new bulletin returns to the longstanding approach of keeping customer assets off the custodian’s balance sheet. This one change opens the way for banks to begin developing digital asset custody solutions, something institutional investors have long been waiting for.

Movement in Congress on Digital Asset Legislation

While the executive branch has been active, lawmakers have also shown renewed focus on digital assets through two major bills.

The FIT 21 Act proposes giving the SEC and the CFTC different roles based on the structure and function of the digital asset in question. It also brings digital asset platforms, custodians, and intermediaries under clearer rules.

The Lummis-Gillibrand Payment Stablecoin Act outlines requirements for stablecoin issuers, including reserve management, liquidity restrictions, and audit obligations. It allows only banks or registered trust companies to issue stablecoins and introduces CFO-level reporting.

Both bills have bipartisan backing and reflect a broader interest in creating legal clarity for the digital asset industry.

Changing the Tone at the Top

Key personnel changes are shaping how agencies now view digital assets and related technologies.

David Sacks was appointed to advise the president on AI and crypto. Paul Atkins was nominated to lead the SEC, bringing a history of support for crypto. Mark Uyeda, now Acting SEC Chair, launched a dedicated crypto task force headed by Hester Pierce. The CFTC has also shifted, with Commissioner Pham now serving as Acting Chair and calling for more industry engagement. At the FDIC, Travis Hill has stepped in as Acting Chair and has signaled openness toward tokenization and financial innovation.

This group represents a clear shift toward a regulatory approach that is more open to new ideas and business models.

Resetting the Direction on AI

The administration has also taken steps to revisit how the federal government approaches artificial intelligence. President Biden’s 2023 executive order on AI was rolled back in January. In its place, a new directive outlines a strategy to keep the U.S. ahead in AI development.

The new policy prioritizes innovation and growth over international coordination. A full strategy document is expected by mid-year and is being developed by the same group leading the crypto policy review.

This reset suggests that AI and digital assets will be developed under a similar policy mindset — one that supports experimentation and aims to remove roadblocks for businesses.

Looking Ahead

The first quarter of 2025 has set a clear tone. The U.S. is taking a position that supports innovation in financial technology without clinging to outdated rules. The changes already made to federal policy, agency leadership, and legislative direction signal a larger shift that will likely continue to unfold through the year.

The United States is undergoing a major transformation in its approach to digital asset regulation, driven by a newly redefined federal policy under the Trump administration. Just days after the 2025 inauguration, the administration introduced the “Strengthening American Leadership in Digital Financial Technology” Executive Order, signaling a clear pivot toward fostering innovation. This order outlines support for public blockchain networks, the development of dollar-backed stablecoins, and a firm stance against the creation of a U.S. central bank digital currency (CBDC). It also established a new Working Group on Digital Assets, responsible for reviewing current regulations and proposing updates that align with this forward-looking policy agenda.

Leadership changes across key agencies are reinforcing this policy shift. High-profile appointments, such as David Sacks as Special Advisor for AI and Crypto and Paul Atkins as the new SEC nominee, underscore a growing emphasis on creating a business-friendly regulatory environment for digital assets. One of the most impactful changes to date has been the rescission of SAB 121, replaced by SAB 122, which lifts a major obstacle for banks to offer digital asset custody services. This development is especially significant for institutional investors, many of whom had been waiting on the sidelines for trusted financial institutions to enter the crypto custody space.

The road ahead appears to be one of expanded regulatory clarity and legislative action. Proposed bills like the FIT 21 Act and the Lummis-Gillibrand Payment Stablecoin Act reflect bipartisan efforts to establish a comprehensive legal framework for the digital asset ecosystem. While the administration has chosen not to pursue a government-backed CBDC, private sector initiatives may bridge the gap. On the AI front, a similar theme emerges — one of prioritizing domestic innovation over international regulatory alignment, signaling a U.S.-centric approach to emerging technologies. Altogether, these actions suggest a strategic embrace of digital transformation built on regulatory reform and market confidence.