As other jurisdictions implement tailored rules for digital assets, US policymakers are increasingly feeling pressure to respond to maintain US competitiveness. While many of these prior legislative efforts have yet to pass, the tone at the federal level has taken a striking change with the Trump administration. As the administration continues to develop its policy approach, a more favorable regulatory environment may be expected for the sector.

In our Digital Assets Policy Primer, we outlined two distinct paths that US regulatory policy could potentially take: with legislation or without legislation.

As other jurisdictions implement tailored rules for digital assets, US policymakers are increasingly feeling pressure to respond to maintain US competitiveness. While many of these legislative efforts have yet to be fully enacted, regulators and lawmakers are working towards developing further clarity regarding the status of digital assets and providing a regulatory framework for the industry.

As other jurisdictions implement tailored rules for digital assets, US policymakers are increasingly feeling pressure to respond to maintain US competitiveness. In the absence of federal legislation, many states are developing their own rules and licensing frameworks. As a result of these and other forces in the space, a few themes are expected to drive the US policy environment in 2024.

The discourse surrounding digital assets and their applications has undergone significant developments. After the failure of several digital asset entities, there has been an increased readiness among policymakers and regulatory authorities to tackle the unresolved issues prevalent within the sector.

From a policy and regulatory perspective, 2023 continues to be a challenging year for blockchain and digital assets in the United States. Federal regulators have taken decisive actions to confront the industry with little response from Congress.

The reporting framework for digital assets became clearer, although disputes over the classification of specific assets continued, and President Biden's Working Group, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency's Report on stablecoins recommended a bank regulatory framework.

This issue focuses on the “Executive Order on Ensuring Responsible Development of Digital Assets,” which set in motion efforts across the federal government to consider digital assets from every angle—their national security implications, environmental impacts, and financial risks.