The State of Crypto Laws in 2026
The State of Crypto Laws in 2026: Tread Carefully, Trade Smart
When we started our Cryptocurrency and Digital Asset Program back in 2017, the vast majority of students were skeptical. Most wanted nothing to do with it. The idea of blockchain, tokenized finance, and digital wallets felt fringe, too speculative, too risky, or just too weird. My, how the times have changed.
Fast forward to 2026, and crypto is center stage. Every major political party has a position on it. Presidents are talking about it in Davos. Congress is passing (and stalling) major legislation on it. Banks are building around it. And your Uber driver probably has a favorite altcoin. Like it or not, digital assets are no longer just a niche, they’re part of the global financial system. But with that growth comes complexity, and risk. Which means now, more than ever, you need to understand what you're investing in and the rules that govern it.
We’re at a regulatory crossroads in the U.S., and for once, politicians on both sides of the aisle are starting to recognize that the $3+ trillion crypto market isn’t going to regulate itself. But before you assume this means clarity is finally here, hold up. While there’s real progress on some fronts, other parts of the legal landscape are as murky, and politically messy, as ever.
Let’s break it down.
The GENIUS Act: A Step Forward for Stablecoins
The most significant progress so far? The Guiding and Establishing National Innovation for U.S. Stablecoins Act, better known as the GENIUS Act, which President Trump signed into law back in July 2025.
This bipartisan bill creates the first real federal framework for payment stablecoins—those dollar-pegged tokens like USDC and USDT. Under the new rules, only approved issuers can create stablecoins, and they need to be backed 100% by liquid assets (think: cash, Treasuries, money market funds). No leverage. No funny business.
Issuers must also disclose their reserves every month, and all statements need to be independently audited and signed off by executives. In other words, if you’re minting dollars on-chain, you’re going to be held to bank-level standards.
The GENIUS Act prohibits interest-bearing stablecoins, so don’t expect yield-farming versions of cash. But it does align federal and state regulations, boosting confidence and bringing in traditional finance players. That’s not just bullish, it’s foundational.
If you’re a trader or investor, this matters. Because it means a major piece of infrastructure, how digital dollars move, is finally on solid footing. That brings liquidity, credibility, and institutional buy-in. But don’t confuse regulation with risk-free. Even with stablecoins, due diligence still applies.
CLARITY Act: Stuck in the Mud
The other major bill, The Digital Asset Market Clarity Act (CLARITY Act), hasn’t been as lucky.
This one aims to finally define which digital assets are securities and which are commodities, splitting oversight between the SEC and CFTC. That’s something the crypto industry has been begging for… until it actually came time to read the fine print.
After passing the House last summer, the bill stalled in the Senate. Why? Infighting. Political games. And, frankly, a lot of big players (Coinbase included) backed out when they didn’t like the revisions. Concerns over stablecoin restrictions, yield bans, and regulatory burden killed the momentum.
Senate markups were delayed. The Banking Committee shifted focus to housing policy ahead of the elections. Now we’re looking at late Q1, or maybe even later, before this thing moves again.
Translation? If you're hoping for a clean roadmap on what coins or tokens are safe to trade from a legal standpoint… don’t hold your breath.
CBDCs: Still in the Crosshairs
Then there’s the Anti-CBDC bill, which passed the House but is stalled in the Senate. It blocks the Fed from launching, testing, or even researching a retail central bank digital currency unless Congress says so.
Supporters frame it as a defense against surveillance. Opponents say it’s holding back innovation. Either way, this is one of the most partisan pieces of crypto legislation out there, and that alone is enough to keep it from gaining traction.
The only thing we know for sure? U.S. regulators aren’t launching a digital dollar anytime soon. And that creates both risk and opportunity for private stablecoin issuers… if they play by the new GENIUS rules.
Politics and Timing: What Comes Next?
Let’s not forget the political reality: It’s an election year. President Trump is pushing hard for crypto innovation. He made that clear in his January 21st Davos speech, calling for faster crypto legislation to “unlock financial freedom” and beat China in the tech race.
That’s a strong message. But the reality is messy.
Committees are backed up. Industry players can’t agree on what they want. And priorities like housing, inflation, and interest rates are sucking up the spotlight in Washington. Don’t expect clarity overnight.
If anything, the most important thing you can do right now as a trader or investor is stay alert, stay informed, and stay cautious.
What This Means for You: Educate Before You Allocate
The digital asset space is full of promise, but also full of traps.
New laws are coming. Old ones still apply. Enforcement is ramping up. And hype never goes away. If you don’t know how to read the regulatory landscape, you’re flying blind.
That’s why education matters more than ever. This is not the time to guess. It's the time to understand what you're buying, how it’s classified, and whether it fits your strategy.
Are you holding yield-bearing stablecoins? You better know what the GENIUS Act says about them.
Are you trading tokens with murky security status? You better know what the SEC is cracking down on.
Are you participating in DeFi protocols that may soon fall under new CFTC rules? Time to read up and adjust.
Join Us in Class, Seriously!
At Trading Academy, we’re not just teaching charts and indicators. We’re breaking down how the rules are changing, what they mean for risk, and how to adapt your trading and investing strategies in real time.
If you’re serious about building a future in this space, whether you’re a crypto trader, investor, or just crypto-curious, this is the time to double down on your education.
Tread with caution. Arm yourself with knowledge. And join us in class. We’re breaking it all down, and helping you stay ahead of the curve.
Let’s go.