U.S. lawmakers are actively reconsidering their stance on crypto regulation, with growing optimism that the country could become a global hub for digital assets. The SEC’s crypto task force recently held its first meeting, debating whether existing securities laws—some dating back to the 1940s—are still relevant in the blockchain era. Critics argue that outdated regulations are hampering innovation and pushing crypto businesses out of the U.S.
The SEC Act of 2025: A New Approach?
Lawmakers are backing the SEC Act of 2025 (H.R. 216), a proposed bill aimed at establishing a fairer regulatory framework and limiting excessive penalties. The bill seeks to clarify the legal status of digital assets, ensuring that crypto companies can operate with greater certainty. Supporters argue that the legislation will reduce regulatory ambiguity, making the U.S. a more attractive destination for blockchain innovation.
The Howey Test Debate
A key point of contention is the Howey Test, an 80-year-old benchmark for defining securities. Some experts believe it is ill-suited for modern digital assets, as it was originally designed to regulate traditional investment contracts. Critics argue that applying the Howey Test to cryptocurrencies and DeFi projects creates legal uncertainty, discouraging investment and development in the sector.
Concerns Over Financial Stability
Beyond regulatory clarity, lawmakers also discussed crypto’s potential risks to financial stability. The task force raised concerns about crypto’s role in illicit activities, including ransomware, drug trafficking, and terrorism financing. Additionally, panelists warned that unchecked crypto markets could lead to a crisis similar to the 2008 financial collapse.
Shogun Lin
