The cryptocurrency landscape in the United States has experienced significant shifts recently, marked by strategic acquisitions, policy clarifications, and regulatory adjustments. These developments underscore the government's evolving approach to digital assets and their integration into the broader financial system.
A notable move involves American Bitcoin, a U.S.-based cryptocurrency mining company backed by Donald Trump Jr. and Eric Trump. The firm is actively seeking acquisitions in Asia, particularly targeting publicly listed companies in Japan and potentially Hong Kong. This strategy aims to build a substantial bitcoin reserve, emulating the model of firms that accumulate large bitcoin holdings and operate as "crypto treasury companies." American Bitcoin plans to go public in the U.S. in September through a reverse merger with Gryphon Digital Mining. The company is positioning itself as a premier bitcoin accumulation platform, having evolved from American Data Centers , a subsidiary of Dominari Holdings. The Trump sons' involvement in this venture reflects a broader interest in integrating cryptocurrency into traditional business models.
In a related development, U.S. Treasury Secretary Scott Bessent recently clarified the administration's stance on cryptocurrency. In an interview on Fox Business, Bessent initially stated that the government wasn't planning to acquire more bitcoin, leading to speculation about a halt in acquisitions. However, he later clarified on social media that the Treasury remains open to acquiring more bitcoin through "budget-neutral pathways," indicating no firm policy shift. The strategic bitcoin reserve, established via executive order in March, comprises approximately $20 billion worth of bitcoin seized from criminal activities. Despite widespread anticipation, the White House's recent comprehensive report on crypto policy did not include details about this reserve, leaving its future handling a key point of interest.
The Federal Reserve has also made significant regulatory adjustments. On August 15, 2025, the Fed announced the discontinuation of its "novel activities" supervision program, which was established in 2023 to oversee how banks engage with cryptocurrency and fintech technologies. The program's purpose was to specifically monitor banks' involvement with these emerging sectors. However, the Fed stated that it now has a better understanding of the associated risks and how banks manage them. Consequently, this specialized oversight will be folded into the Fed's routine bank supervision framework, eliminating the need for a separate program.
In the realm of decentralized finance , advocates are urging the U.S. Securities and Exchange Commission to clarify policies for blockchain-based financial applications. Groups like the DeFi Education Fund and a16z Crypto propose the creation of a "safe harbor" that would exempt certain DeFi apps—specifically neutral software interfaces to decentralized systems—from registration requirements. Their recommendations aim to distinguish these apps from traditional brokers, who typically facilitate transactions, maintain records, and manage customer funds. The defenders argue that these DeFi apps do not introduce trust-based or custodial risks that federal securities laws target. Citing the SEC's previous case involving Coinbase's wallet—where a judge ruled Coinbase did not control user assets—the proposal emphasizes the autonomous and non-custodial nature of these DeFi tools. The coalition has outlined four specific conditions for eligibility under the safe harbor. As the SEC plans to release more guidance soon, these groups are attempting to influence the regulatory framework for decentralized technologies, aiming to maintain innovation while aligning with legal safety.
On the enforcement front, Do Kwon, a South Korean cryptocurrency entrepreneur known as "the cryptocurrency king," pleaded guilty in a Manhattan federal court to two counts of fraud related to the $40 billion collapse of Terraform Labs. The charges involved conspiring to commit commodities, securities, and wire fraud, as well as a separate count of wire fraud. Kwon co-founded Terraform Labs, which launched the stablecoin TerraUSD, claiming it was a safe investment. However, its collapse in May 2022, alongside its companion token Luna, led to massive investor losses worldwide. Under a plea deal with U.S. prosecutors, Kwon agreed to serve no more than 12 years in prison, though federal guidelines suggested a 25-year sentence. He will forfeit over $19 million in assets and relinquish his stake in Terraform Labs and its cryptocurrencies. Kwon, who was arrested in Montenegro in March 2023 for using a false passport and extradited to the U.S. in December 2023, accepted responsibility for misleading investors. U.S. Attorney Jay Clayton stated that Kwon exploited the hype around cryptocurrency to orchestrate one of the largest financial frauds in history. Sentencing is set for December 11.
These developments reflect a dynamic and rapidly evolving cryptocurrency landscape in the United States, characterized by strategic corporate maneuvers, policy clarifications, regulatory shifts, and significant legal actions. As the government continues to navigate the complexities of digital assets, stakeholders across the financial sector are closely monitoring these changes to understand their implications for the future of cryptocurrency in the U.S.
