A continuously growing field is moving from chaos to common standards, from closed systems to open, ethical innovation.

Written by: Sean Lee, former CEO of Algorand Foundation

Translated by: Felix, PANews

Cryptocurrency has long navigated the gray area between innovation and regulation. With the U.S. pushing for a regulatory framework, the crypto industry is facing a critical moment that could unlock scale, capital, and global influence.

After multiple dialogues with industry leaders and listening to various perspectives during collaboration with the Crypto Council for Innovation, a turning point has emerged: the upcoming framework will guide the next phase of cryptocurrency development.

Reshaping U.S. Crypto Policy, Enhancing Regulatory Clarity

On the third day of his second term, President Trump signed a comprehensive executive order. The order titled "Strengthening America's Leadership in Digital Financial Technologies," released on January 23, rescinded a directive signed by Biden in 2022, shifting the focus from a law enforcement-led stance to a new strategy centered on proactive governance. On March 6, Trump signed an executive order establishing a strategic Bitcoin reserve. This reserve, sourced from Bitcoin seized in criminal cases, will not be sold but held as a long-term strategic asset.

The U.S. SEC has reorganized its cryptocurrency regulatory work into a "Cyber and Emerging Technologies Division," serving as the focal point for long-term rulemaking, and has formed a working group to develop a "comprehensive and clear regulatory framework." SEC Chair Hester Peirce stated that the goal is to allow companies to "freely experiment and build interesting things." Deputy Attorney General Todd Blanche ordered the immediate dissolution of the National Cryptocurrency Enforcement Team (NCET). A decision outlined in a four-page memo titled "Ending Enforcement-Style Regulation," dated April 7, marks a stark departure from the previous administration's approach.

The "Stablecoin Act" (GENIUS Act) was first introduced in February 2025, marking Washington's first serious attempt to incorporate stablecoins into a clear, federally supported regulatory framework. As of this writing, the total amount of stablecoins in circulation globally is approximately $243 billion, with over 90% denominated in U.S. dollars. The bill proposes strict reserve, audit, and transparency standards for stablecoins and prohibits claims of government backing. Although the GENIUS Act did not pass in May, it sparked a rare bipartisan effort and paved the way for future consumer-centric cryptocurrency legislation.

So far, the impact is evident, with a surge in trading activity in the crypto market and renewed investor enthusiasm. For example, a $3.6 billion merger between Bitcoin company Twenty One Capital and a special purpose acquisition company (SPAC) led by Brandon Lutnick, son of Commerce Secretary Howard Lutnick. This reflects the current market sentiment: confidence, speculation, and readiness for expansion. Companies are moving quickly to capitalize on this environment favorable to innovation, public offerings, and digital asset growth.

This shift in tone has not gone unnoticed: it has changed the way companies handle infrastructure, legal strategies, and institutional trust.

Regulatory Clarity Injects New Vitality into Infrastructure Expansion

The adjustment in policy tone has triggered tangible changes. Uminers CEO Batyr Hydyrov views the SEC's latest stance on proof-of-work mining as a catalyst: "The SEC's clarification that certain proof-of-work mining activities are not subject to securities regulation may alleviate compliance burdens for miners. This shift, along with a broader approach to crypto regulation, creates new opportunities to accelerate the most ambitious parts of the roadmap."

For Hydyrov, establishing a national strategic Bitcoin reserve is an important catalyst. "The establishment of a national strategic Bitcoin reserve signifies increasing institutional acceptance of cryptocurrency, which may further encourage investment in mining infrastructure."

However, Hydyrov remains vigilant. "We are gradually expanding targeted investments, especially in areas that previously had higher regulatory risks. However, we still maintain a cautious attitude: the regulatory cycle itself is unpredictable… We believe the current situation is not a reason to slow down or become complacent, but rather an opportunity for prudent expansion and preparation for potential changes in global policy."

Legal Adjustments and Fair Access

As the regulatory fog gradually lifts, the legal framework governing market participants is also being redefined. Frank Hepworth, founder of Yieldschool and former regulatory lawyer, believes the policy shift provides a structural green light for decentralized models: "This is a signal. On-chain businesses do not want their tokens traded on SEC-regulated platforms… The government is tacitly allowing competitive businesses to enter the market. Therefore, with the reduced risk of penalties, more businesses are expected to choose on-chain trading."

He believes this shift is disrupting the traditional regulatory framework. "Several well-known crypto lawyers, like Gabriel Shapiro, have commented that this administration is unfavorable to their industry, but overall it is a significant positive… I agree with this view."

However, Hepworth's sharpest criticism targets outdated access rules: "Voluntary compliance is healthy… but mandatory regulation leads to unequal outcomes, which is the root cause of wealth inequality in the U.S." What is his vision? "The regulatory system should be crypto-led and incorporate cryptocurrency as a native element."

Thus, as the legal framework loosens and on-chain innovation accelerates, the next barrier will be psychological: institutional trust. The industry is currently at this stage, setting its own standards.

Transparency as a Means to Address Uncertainty

Even as regulation becomes clearer, it is not yet perfect. During this transitional period, trust must be actively built. GT Protocol, led by Peter Ionov, is at the forefront of this effort. "Indeed, the trend of regulatory relaxation sends complex signals to the market. On one hand, loosening regulatory controls is often seen as a green light for innovation… but on the other hand, the lack of a clear regulatory framework also raises concerns among institutional participants."

Peter Ionov states that investor reactions are as divided as ever: "This largely depends on the type of investor. More flexible entities with a higher risk tolerance… may see this as a window of opportunity. In contrast, traditional financial institutions… often still maintain a cautious stance, waiting for more clear information."

Currently, market-oriented approaches to building trust are promoting responsible innovation, especially in areas looking to modernize traditional systems: "The entire industry is shifting towards a trust mechanism centered on transparency… Companies are open-sourcing code, publishing audit reports, and collaborating with licensed providers."

Looser Regulation as an Economic Catalyst

With increased transparency boosting investor confidence and expanding access through legal innovation, the stage is set for the next phase: scaling bold ideas. For Construct Koin, this means leveraging AI and blockchain technology to transform real estate finance. Co-founder Chris Baldrey-Chourio explains: "Reducing regulatory burdens does not mean abandoning rules. Rather, it creates space for real-world solutions to develop."

However, with global competitors like the EU and Singapore accelerating their crypto strategies, he warns: "The U.S. is currently in a leading position, but this advantage will not last if no action is taken." He also points out the growing momentum around central bank digital currencies and stablecoin standards globally.

He is cautious about overexpansion but believes that if enforcement weakens and is accompanied by collaboration, it can become a catalyst for experimentation. "We need regulators and builders to stand on the same side." "Only then can breakthroughs be achieved while protecting consumers."

Moreover, this dialogue must be based on shared principles and ethical foundations, not just common interests.

Focusing on Ethics Amid Policy Shock

Certified public accountant and founder of Crypto Accounting Group Andrea Perlak elaborated on this topic, stating: "Organizations in the Web3 industry have been committed to maintaining high ethical standards since their inception… Unethical behavior within the industry is abhorrent, and in such a small industry, the impact of a bad reputation is lasting."

She refuted the myth that "decentralization means chaos." "Decentralization and accountability are not mutually exclusive concepts… These systems thrive through transparency, multi-level governance, and incentive mechanisms."

As Perlak points out, the notion of regulatory relaxation misses the mark: "It is a misunderstanding to think that crypto industry regulation is being relaxed… The previous administration's 'enforcement regulation' prevailed… Once appropriate legislation is enacted, the industry will breathe a sigh of relief."

Ultimately, as a practical framework is about to be introduced, the industry is no longer avoiding regulation—rather, it is ready to embrace it on a solid foundation.

Conclusion

These voices collectively reflect that a continuously growing field is moving from chaos to common standards, from closed systems to open, ethical innovation. If the industry can seize this opportunity, leading with transparency, ethics, and inclusivity—not because it is required to do so, but because it is the right thing to do—it has the potential to redraw the blueprint of modern finance.

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