Elliptic Report Signals Global Crypto Regulatory Pivot
A seismic shift in global cryptocurrency regulation is underway, moving from enforcement-heavy approaches to innovation-focused frameworks. According to Elliptic’s Global Crypto Regulation Review 2025, governments worldwide are constructing comprehensive policies that prioritize growth, with banks, stablecoins, and Asian financial hubs positioned to drive the next phase of development. This marks a clear departure from years of regulatory hostility and uncertainty.
U.S. Policy Reversal Under Trump Administration
The most visible regulatory pivot occurred in the United States, where President Donald Trump declared crypto leadership a top policy priority. This shift culminated in the passage of the GENIUS Act, the country’s first federal digital asset framework.
Key Regulatory Changes in the U.S.
Elliptic’s report highlights several critical developments: the Department of Justice terminated its “regulation by prosecution” approach, the SEC formed a dedicated crypto advisory committee under Commissioner Hester Peirce, and new federal coordination emerged on market structure. These changes have “revived optimism that the US can be a leading source of cryptoasset innovation and growth,” according to the report.
The Evolving Role of Stablecoins
“The biggest shift has been in how stablecoins are used natively across blockchains,” noted Calvin Leyon, Kraken’s Head of Onchain. Stablecoins have evolved from centralized bank IOUs “mostly sitting in exchanges or bridges” to becoming critical components as “collateral, in settlement rails and as yield-bearing instruments” across genuine DeFi systems.
Banking Sector Embraces Digital Assets
U.S. banking regulators reversed restrictive policies that had effectively barred banks from offering crypto-related services, issuing comprehensive guidance on crypto safekeeping and custody. This regulatory clarity has prompted major financial institutions in the EU and Hong Kong to begin planning stablecoin issuance and custody offerings.
Institutional Participation Grows
“Clearer and comprehensive regulation is giving traditional financial institutions more confidence to engage with the cryptoasset space,” the report states. “The presence of these established players in the market is also enabling greater maturation of the space, which is crucial amid the increasing regulatory scrutiny on crypto banking access.” The Wolfsberg Group, an association of 12 major global banks, published guidance in September on providing banking services to stablecoin issuers, signaling growing institutional acceptance.
APAC and Middle East Regulatory Momentum
Hong Kong, Singapore, South Korea, Japan, the UAE, and Australia have advanced new licensing, custody, and stablecoin frameworks. The UK implemented its stablecoin regulatory regime with robust AML/CFT standards in August, with the EU and Switzerland continuing to develop their own planned frameworks.
Regional Coordination Challenges Persist
Despite regional progress, harmonization across Asia-Pacific remains distant. When asked whether APAC should adopt a region-wide regulatory standard similar to the GENIUS Act, Peter Chung of Presto Labs told Decrypt, “If you were to ask me, yes, they should — but they won’t… there are too many vested interests… APAC countries operate under vastly different foundations.”
The global regulatory landscape for cryptocurrency is undergoing fundamental transformation, with traditional financial institutions and stablecoin frameworks emerging as key drivers of mainstream adoption and market maturation.
