Bipartisan federal bills, EU coordination, and state-level crypto experiments

In 2026, the momentum behind digital asset regulation and innovation is reaching new heights at both the federal and international levels, with significant bipartisan legislative efforts, robust infrastructure development, and international cooperation shaping the future landscape.

Main Event: Legislative and International Push for Clarity and Market Structure Reform

At the forefront, the United States is advancing key bills aimed at clarifying and modernizing the digital asset ecosystem:

• The CLARITY Act, a bipartisan initiative, is poised for enactment by April, promising to provide definitive classifications for digital assets—distinguishing securities from commodities. This move is designed to reduce regulatory uncertainty, fostering a more compliant environment that encourages institutional participation. As Senator Bernie Moreno indicated, "The CLARITY Act could clear Congress by April, offering much-needed certainty for industry and regulators alike."

• The Markets Structure Bill continues its legislative journey, with a focus on integrating digital assets into traditional market infrastructure, enabling banks and financial institutions to participate actively in crypto trading. This legislation aims to establish a federally regulated crypto banking ecosystem, a critical step toward mainstream acceptance.

• The GENIUS Act, introduced by the OCC, seeks to encourage utility and innovation for stablecoins by promoting licensed, bank-backed stablecoins issued under a regulated framework. Industry stakeholders are scrutinizing the proposal, as it could shift stablecoin development toward more controlled, federally endorsed models, impacting how stablecoins are issued and used.

Regulatory Posture and Enforcement

• The SEC is adopting a more pragmatic yet assertive approach, with recent appointments signaling a focus on integrity, transparency, and investor protection. SEC Chair Paul S. Atkins and Commissioner Hester Peirce have outlined an incremental, step-by-step path toward supporting tokenized securities and innovation exemptions. A notable example is WisdomTree’s SEC-approved tokenized money market fund, enabling instant liquidity and 24/7 trading, which exemplifies the push toward market modernization.

• The CFTC continues to push for a robust market structure, with Chairman Mike Selig emphasizing the need for regulatory clarity to prevent manipulation and ensure resilience. The CFTC's derivatives legislation is expected to become law soon, further reinforcing the integrated regulatory framework.

• The FATF and other international bodies are tightening AML and CFT standards, exemplified by investigations into Binance’s alleged transfers totaling over $1.7 billion to Iranian entities, underscoring the global push for transparency and compliance.

Bank Charters and State-level Experiments

• Major firms like Crypto.com and Coinbase are actively pursuing federal banking licenses through the OCC to enhance stability and compliance. Simultaneously, states are pioneering innovative public finance models:

  • Missouri has revived efforts to establish a Bitcoin strategic reserve, with House Bill HB2080 proposing to hold Bitcoin as a state asset—a groundbreaking move in public asset management.

  • Indiana has passed legislation allowing public pension funds to invest directly in cryptocurrencies, signaling a significant institutional shift toward mainstream acceptance. Industry experts see this as a blueprint for broader pension involvement.

• Arizona is exploring the creation of a state-level crypto reserve, including holdings in assets like XRP, to bolster regional resilience and demonstrate strategic use of digital assets in public finance.

International Infrastructure and Harmonization

• Europe continues to lead with the MiCA regulation, which has been phased in across countries like Germany, France, and Italy, creating a harmonized regulatory landscape that emphasizes transparency, market integrity, and investor protection.

• The European Central Bank (ECB) is making strides on its Digital Euro initiative, with early pilots launched in 2026 and full deployment expected in 2027. The Digital Euro aims to reinforce monetary sovereignty, reduce reliance on dollar-pegged stablecoins, and offer a state-backed alternative to private stablecoins.

• The UK's FCA is actively testing stablecoins within its regulatory sandbox, with firms like Revolut participating in pilot programs. This reflects the UK’s commitment to fostering responsible innovation amidst regulatory uncertainties.

• Hong Kong is establishing itself as a regional hub for digital finance, with plans to launch a digital bond platform that enables cross-border issuance and settlement of tokenized bonds—a move that will increase liquidity and support regional interoperability.

• Asia is also tightening regulations, with South Korea requiring crypto influencers to disclose holdings and paid promotions, aiming to increase transparency and curb illicit activities.

Implications and Future Outlook

The convergence of these regulatory, infrastructural, and institutional initiatives signals a paradigm shift in digital assets' role within global finance:

• Regulatory clarity and infrastructure upgrades are reducing regulatory arbitrage and increasing market trust.
• The move toward public sector reserves and CBDCs like the Digital Euro demonstrates a dual approach: fostering innovation while safeguarding monetary sovereignty.
• International cooperation via FATF and regional regulators aims to harmonize standards, facilitating cross-border compliance and market integration.

Recent developments, such as Revolut securing FCA backing for stablecoin testing despite ongoing licensing uncertainties, exemplify ambitious regulatory experimentation. As these efforts mature, digital assets are poised to become integral to public finance, monetary policy, and global markets.

While challenges around systemic stability and regulatory harmonization remain, the 2026 landscape suggests that digital assets will be mainstream, well-regulated, and strategically vital for economic resilience and growth. The next phase will focus on consolidating these reforms, resolving remaining hurdles, and building a transparent, inclusive, and resilient digital economy.