The Evolving Landscape of Cryptocurrency Development: A New Era of Opportunity Since 2017

The Law Office of Matthew J. Bouillon Mascareñas Team

Since the onset of the Trump administration in 2017, the environment for cryptocurrency development in the United States has undergone a remarkable transformation. What was once a nascent industry shrouded in regulatory uncertainty and skepticism has evolved into a vibrant ecosystem bolstered by increasing legislative clarity, bipartisan support, and a forward-thinking approach to digital assets. This shift, driven by pivotal legislation and a proactive Treasury Department under Secretary Scott Bessent, has positioned the U.S. as a potential global leader in cryptocurrency innovation. Below, we explore how these changes have unfolded, examine key legislative proposals currently navigating Congress, and offer predictions on their passage, sponsorship, timing, and likely vote breakdowns. 

A Shifting Regulatory Landscape 

In 2017, the cryptocurrency industry operated in a regulatory gray zone. Bitcoin was gaining traction, but initial coin offerings (ICOs) were often scams, and regulators like the Securities and Exchange Commission (SEC) took a heavy-handed enforcement approach. The lack of clear guidelines stifled innovation, pushing many startups to jurisdictions like Switzerland and Singapore. Fast forward to 2025, and the environment is markedly different. The Treasury Department, led by Scott Bessent, has championed a balanced approach that fosters innovation while protecting consumers. Bessent’s vision for stablecoins, which he projects could grow into a $3.7 trillion market by 2030, has galvanized lawmakers to prioritize digital asset legislation. His leadership has been instrumental in shifting the narrative from punitive enforcement to regulatory clarity, encouraging domestic investment and development. 

The crypto industry itself has matured, with major players like Coinbase advocating for bipartisan frameworks. The 2024 election cycle saw the sector invest heavily—around $250 million—to support pro-crypto candidates, reflecting its growing influence. This political clout, combined with a more crypto-friendly Congress, has created fertile ground for legislative progress. The result is a series of bills that aim to regulate stablecoins, clarify market structures, and position the U.S. as a hub for blockchain innovation. 

Pivotal Legislation Shaping the Future 

Several bills currently making their way through Congress are poised to redefine the cryptocurrency landscape. Below, we analyze five key pieces of legislation, their sponsors, predicted timing, and likely vote breakdowns. 

1. GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins)

Overview: The GENIUS Act, spearheaded by Senator Bill Hagerty (R-TN), establishes the first federal regulatory framework for stablecoins, requiring issuers to hold liquid reserves like Treasury bills and comply with anti-money-laundering rules. It aims to protect consumers, boost demand for U.S. Treasuries, and maintain dollar dominance.

Progress and Sponsorship: The Senate passed the GENIUS Act on June 17, 2025, with a bipartisan 68-30 vote, including 18 Democrats joining most Republicans. Senate Banking Committee Chairman Tim Scott (R-SC) and Senator Kirsten Gillibrand (D-NY) were key advocates, navigating months of negotiations to secure bipartisan support.

Prediction: The bill now awaits House consideration, where it faces a more fragmented regulatory approach, with authority split between the Federal Reserve and state regulators. Given the House’s passage of related bills like FIT21 in 2024, and strong industry backing, the GENIUS Act is likely to pass by August 2025, meeting the administration’s deadline. Expect a House vote of approximately 280-150, with 60-70 Democrats joining Republicans, though some Democrats may push for stronger anti-corruption provisions. 

Impact: Passage would unlock stablecoin innovation, enabling fintechs and retailers like Amazon to issue digital dollars, while reinforcing U.S. financial leadership.

2. STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy Act)

Overview: Introduced in 2025, the STABLE Act focuses on consumer protection and competition in stablecoin issuance. It proposes strict reserve requirements and transparency measures, building on the GENIUS Act’s framework.

Progress and Sponsorship: The House Financial Services Committee discussed the STABLE Act during a March 2025 hearing, with Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) engaged in ongoing talks. The bill lacks a lead Senate sponsor but has bipartisan interest. 

Prediction: The STABLE Act is less advanced than the GENIUS Act and may face delays due to debates over federal versus state oversight. A House vote is possible by late 2025 or early 2026, with a predicted 260-170 breakdown, as some Democrats remain skeptical of rapid deregulation. Senate passage could follow in mid-2026, likely requiring concessions to secure 10-15 Democratic votes. 

Impact: If passed, the STABLE Act would complement the GENIUS Act, fostering trust in stablecoins for remittances and cross-border payments. 

3. Digital Markets Clarity Act 

Overview: This bill, advanced by House Financial Services and Agriculture Committees in 2025, aims to clarify the regulatory roles of the SEC and Commodity Futures Trading Commission (CFTC) for digital assets, reducing jurisdictional overlap.

Progress and Sponsorship: Led by Representatives Patrick McHenry (R-NC) (since retired) and Glenn “GT” Thompson (R-PA), the bill builds on FIT21’s momentum. It has bipartisan support but faces resistance from Democrats like Maxine Waters, who seek stricter SEC oversight. 

Prediction: The House is likely to pass the bill by December 2025, with a 270-160 vote, as 50-60 Democrats join Republicans. Senate passage, potentially led by Senator Cynthia Lummis (R-WY), could occur in Q2 2026, with a 65-35 vote, assuming compromises on consumer protections. Delays may arise from SEC-CFTC turf battles. 

Impact: Clarifying regulatory boundaries would reduce legal risks for crypto firms, encouraging domestic development.

4. Anti-CBDC Surveillance State Act

Overview: This bill seeks to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC), citing privacy and surveillance concerns. It aligns with the administration’s opposition to a digital dollar. 

Progress and Sponsorship: While specific sponsors are unclear, the bill enjoys support from Republican lawmakers like Senator Cynthia Lummis and House Majority Whip Tom Emmer (R-MN). It has not yet been formally introduced but is gaining traction.

Prediction: The bill could be introduced by late 2025 and pass the House by mid-2026 with a 300-130 vote, reflecting strong Republican support and some Democratic backing from privacy advocates. Senate passage is less certain, likely requiring a 60-40 vote in late 2026, as Democrats may prioritize digital euro competition. 

Impact: Blocking a CBDC would reinforce private-sector cryptocurrencies, boosting decentralized finance (DeFi) innovation.

5. BITCOIN Act of 2024 

Overview: Introduced by Senator Cynthia Lummis in July 2024, the BITCOIN Act mandates Treasury to purchase 1 million Bitcoins over five years for a Strategic Bitcoin Reserve, held for 20 years unless used to retire debt. 

Progress and Sponsorship: The bill remains in early stages, with Lummis as the primary advocate. It has garnered interest from pro-crypto Republicans but faces skepticism from Democrats and fiscal conservatives.

Prediction: Passage is uncertain due to concerns over funding and market impacts. A Senate vote may occur in 2026, with a narrow 55-45 breakdown if Lummis secures moderate Democratic support. House passage is less likely before 2027, given competing priorities. A 250-180 vote is possible with significant lobbying.

Impact: A Bitcoin reserve would signal strong U.S. commitment to cryptocurrencies, potentially driving adoption but risking market volatility.

The Road Ahead 

The cryptocurrency development environment has improved significantly since 2017, thanks to a more receptive Congress, industry advocacy, and Scott Bessent’s leadership at Treasury. The GENIUS Act is on track for passage by August 2025, setting a precedent for stablecoin regulation. The STABLE Act and Digital Markets Clarity Act are likely to follow by 2026, providing further clarity. The Anti-CBDC and BITCOIN Acts face longer odds but reflect the growing crypto-friendly sentiment. 

These legislative efforts, if successful, will cement the U.S. as a global crypto hub, fostering innovation in stablecoins, DeFi, and blockchain applications. Developers can expect a more predictable regulatory environment, reduced legal risks, and increased access to capital. As Bessent has emphasized, this is a “once-in-a-generation opportunity” to lead the digital asset revolution, ensuring the U.S. remains at the forefront of financial technology. 

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