Crypto markets moved through waves of volatility, enforcement pressure and renewed investment between 2021 and 2024. Major exchanges collapsed, stablecoins failed and regulators widened their reach. Companies left the sector and later returned as liquidity improved. New technologies also emerged as investors weighed the risks and rewards of digital assets during a period of intense scrutiny. These shifts kept policymakers engaged and pushed governments to respond in ways that suited their domestic priorities.
Those responses varied widely. Some countries expanded enforcement programs and tightened rules for unregistered platforms. Others built licensing systems to manage custody, trading and capital requirements. Additionally, finance ministries introduced new tax treatments for digital assets. Central banks advanced digital currency pilots that tested updated payment infrastructure. These initiatives moved forward at different speeds. They also created uneven conditions for firms operating across borders.
The United States changed direction in early 2025 as Donald Trump returned to office. His administration took a friendlier tone toward digital assets and emphasized economic growth. Officials voiced support for innovation and reduced regulatory barriers. These signals lifted sentiment in parts of the market. However, ongoing court cases and active investigations kept companies cautious. Agencies continued to enforce existing rules. Additionally, lawmakers debated how far they should reshape digital-asset oversight. This mix of optimism and uncertainty left the sector watching for clearer policy coordination.
Other governments tracked the U.S. shift while advancing their own agendas. Some explored ways to attract businesses seeking predictable laws. Others reinforced consumer safeguards and maintained narrow permissions for digital-asset activity. These decisions reflected domestic economic pressures and political calculations.
This edition of the Mugglehead roundup outlines how five jurisdictions adjusted their approach to cryptocurrency through documented policy changes in 2025. Each represents a distinct model for managing digital-asset markets as the sector heads into 2026.
The United States – the land of crypto opportunity
The United States saw major policy movement in 2025 as federal agencies and lawmakers adjusted their approach to cryptocurrency. Congress advanced several bills designed to stabilize digital asset markets. The GENIUS Act, a bipartisan stablecoin bill, gained strong support and became law in July. It introduced backing requirements and new disclosure rules for payment tokens. Lawmakers also moved the Digital Asset Market Clarity Act through committee review. In addition, they considered related bills aimed at clarifying jurisdiction and market structure.
Regulators also shifted their posture as courts weighed in on key disputes. Judges curtailed several aggressive enforcement actions from the SEC. They also issued rulings that shaped how agencies classify certain tokens. These decisions, however, pushed regulators to refine their oversight methods. They also encouraged agencies to coordinate more closely with lawmakers.
The crypto industry faced its own pressures as these changes unfolded. Bitcoin miners dealt with rising network difficulty and weaker hashprice conditions. As a result, profitability declined across much of the sector. Companies such as Marathon Digital Holdings (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) continued to operate at scale. However, they adjusted strategies to manage higher costs and lower margins. Some miners also explored new revenue streams, including artificial intelligence and high-performance computing. These efforts aimed to offset reduced mining income and diversify business models.
Federal policy, industry economics, and judicial rulings interacted throughout the year. Additionally, each development forced companies and regulators to reassess how they manage digital asset activity.
Read more: Ripple gains regulatory clearance to boost crypto payments in Singapore
Read more: China signals tougher enforcement on stablecoins and crypto operations
The European Union (EU) and its cautious regulatory rollout
The European Union advanced a decisive phase of digital asset oversight in 2025 as the Markets in Crypto-Assets Regulation, or MiCA, moved through its planned rollout. MiCA introduced the first union-wide framework for cryptocurrency operations. It also set rules for issuance, custody, trading platforms and stablecoins. Regulators designed its rollout in two stages. The first stage covered asset-referenced tokens and e-money tokens. The second stage set operational standards for exchanges, custodians and other service providers.
Mandatory licensing requirements also took effect in 2025. Exchanges, custodians and wallet operators must now meet standardized capital levels and cybersecurity rules. They must also follow disclosure and consumer-protection requirements. Firms that work across the EU no longer navigate separate national systems. Instead, they can apply for authorization in one member state and “passport” that license across the bloc. This system attracted global operators that sought clearer rules and easier market access.
EU institutions issued technical standards to support this transition. ESMA and the EBA released guidance on reporting, market abuse controls and reserve practices for stablecoin issuers. National regulators, meanwhile, began to align their supervision with these union-level rules. Additionally, joint supervisory teams expanded across borders. These teams improved information sharing and helped regulators monitor activity more consistently.
MiCA’s rollout created a more uniform regulatory foundation for digital asset companies. It also reduced fragmentation across member states and increased predictability for firms operating in the sector.
Canada includes diverging ideas and converging companies
Canada saw stronger digital asset oversight in 2025 as regulators increased enforcement activity and tightened operational standards for crypto firms.
The Canada Revenue Agency continued its multi-year audit program for digital assets. It reported significant gains in back taxes, in addition to new compliance findings across multiple platforms.
Provincial securities regulators also enforced stricter custody, leverage and reporting requirements. These rules affected every major exchange that operated in the country.
The country’s crypto sector also experienced consolidation.
WonderFi emerged as a dominant player after a series of mergers that included several major Canadian exchanges, and then itself became a subsidiary of RobinHood Markets (NASDAQ: HOOD).
These deals created a single, regulated entity with national reach. They also reduced the number of independent platforms in the market. This trend, however, raised questions about concentration and long-term competition. It also showed how regulatory pressure can shape industry structure.
British Columbia took a different approach in early 2025. The province imposed a ban on new cryptocurrency mining operations. Officials cited grid concerns and environmental impacts. Vancouver’s municipal government, however, debated alternative strategies.
Several councillors argued for limited or conditional mining zones. Others pushed for broader restrictions. These debates showed that governments within Canada did not share the same outlook on crypto mining or digital assets. They also suggested that national policy and provincial policy may continue to diverge.
Regulators issued updated pre-registration undertakings as part of this shift. These undertakings set conditions for foreign and domestic platforms. Additionally, they clarified expectations for custody, capital reserves and investor protection. Firms that could not meet these standards exited the market or sought partnerships with compliant operators.
Canada’s regulatory direction emphasized oversight, documentation and consumer safeguards. It also reflected conflicting political views about the role of digital assets in the country’s economic future.
China leans into blockchain but ignores crypto
China entered 2025 with a long and complex history with cryptocurrency.
The country once hosted a dominant share of global Bitcoin mining. It later banned mining operations in 2021 and forced major companies to relocate. Firms moved equipment to Kazakhstan, the United States and other jurisdictions with more flexible rules. This shift changed global mining geography and reduced China’s influence over network hashrate.
It also signaled the government’s commitment to reducing private involvement in decentralized assets.
Authorities continued to restrict retail cryptocurrency use in 2025. They maintained prohibitions on trading platforms and token issuance.
However, they expanded state-led digital projects at the same time. The Digital Yuan, or e-CNY, advanced through new pilot programs across additional provinces. It also appeared in transit systems, municipal payments and selective commercial trials.
These pilots showed how a central bank digital currency could function at scale. They also positioned China as the first major economy to test a CBDC in sustained, real-world conditions.
Regulators and state agencies strengthened blockchain-based infrastructure as well. They supported settlement systems for logistics, trade finance and customs processing. Additionally, they worked with domestic technology firms to integrate blockchain tools into government workflows.
These projects focused on traceability, compliance and efficiency. They also avoided any interaction with decentralized cryptocurrencies.
Local authorities aligned their enforcement with national directives. They increased inspections of unauthorized mining sites and digital asset promotions. Meanwhile, policymakers pushed research groups to study CBDC design and cross-border payment links. This work supported broader financial modernization goals.
China’s approach blended strict controls on private digital assets with development of state-backed systems. It also encouraged other governments to explore their own CBDC programs after observing China’s efforts.
Read more: Stablecoin giant Tether moves into physical AI with robotics investment
Read more: IMF warns stablecoins could erode Central Banks control
Two different approaches in Latin America
Latin America entered 2025 with two of the world’s most visible national crypto experiments: Argentina’s political embrace of digital assets and El Salvador’s ongoing Bitcoin project. Each country moved in different directions as political pressure, economic realities and public responses shaped policy outcomes.
Argentina saw renewed interest in crypto policy after President Javier Milei promoted market liberalization and digital-asset innovation. His administration, however, faced a setback when a fraudulent crypto scheme linked to political supporters drew national criticism. Investigators examined how the scheme operated and why it gained traction during a period of rapid economic change. The episode raised questions about oversight, consumer education and the role of speculative products in a stressed economy. Additionally, it exposed the tension between pro-market rhetoric and the need for effective safeguards.
El Salvador confronted its own challenges as it maintained Bitcoin as legal tender. President Nayib Bukele promoted Bitcoin as a tool for economic growth and financial inclusion. However, negotiations with the International Monetary Fund increased pressure on the government to moderate its stance. Officials shifted several Bitcoin-related initiatives to the background. Businesses continued to prefer the U.S. dollar for most transactions. They did so because the dollar offered price stability and easier accounting. Bitcoin usage in daily commerce remained limited. Remittance flows also showed low adoption. Most Salvadorans continued to rely on traditional dollar-based transfer services.
Both countries continued to experiment with regulatory models. Argentina evaluated licensing frameworks for exchanges and custody providers. Meanwhile, El Salvador refined compliance rules for Bitcoin service operators. Additionally, each government reassessed the practical limits of national-level crypto adoption. Economic volatility, institutional capacity and user behavior shaped these reassessments.
