The cryptocurrency industry reached a regulatory inflection point on June 7, 2025, as Securities and Exchange Commission Chair Paul Atkins formally declared an end to the agency’s controversial “regulation by enforcement” approach. The announcement, coming amid a broader global shift toward structured crypto oversight, signaled what analysts described as the beginning of the “Great Clarification” — a transition from punitive enforcement to clear, predictable rulemaking.
TL;DR
- SEC Chair Paul Atkins committed to a “notice and comment” rulemaking process, replacing years of enforcement-first crypto policy
- The Federal Reserve removed “reputation risk” from bank examination manuals, effectively ending Operation Chokepoint 2.0
- MiCA Technical Standards for stablecoin supervision became applicable across 27 EU member states
- SEC issued a memorandum clarifying that staking-as-a-service is generally not a security offering
- The GENIUS Act advanced in Congress, aiming to establish 1:1 dollar-backing requirements for stablecoin issuers
SEC Pivots From Enforcement to Rulemaking
In what industry observers called the most significant policy shift in the SEC’s crypto history, Chair Paul Atkins formally signaled the end of the “regulation by enforcement” era that had defined the agency’s approach under previous leadership. Atkins committed the SEC to a transparent “notice and comment” rulemaking process, prioritizing clear guidelines over litigation — particularly for decentralized finance (DeFi) protocols and staking services.
The shift was accompanied by a concrete budget request: Atkins asked Congress for a $2.149 billion budget for fiscal year 2026, with specific funding earmarked for a new “Crypto Task Force” designed to foster innovation rather than police it. The task force was structured to engage with industry participants proactively, a stark departure from the subpoena-driven approach that had characterized previous years.
Bitcoin was trading between $104,300 and $105,067 on the day of the announcement, with the global crypto market capitalization hovering around $3.29 trillion — figures that underscored the urgency of establishing clear regulatory frameworks for an industry that had grown too large to govern through ad hoc enforcement.
Federal Reserve Ends Crypto Debanking Era
In a parallel development that sent shockwaves through the banking sector, the Federal Reserve formally removed “reputation risk” from its bank examination manuals. The change effectively ended what the crypto industry had long criticized as Operation Chokepoint 2.0 — the systematic debanking of cryptocurrency companies that had made it nearly impossible for many firms to maintain basic banking relationships.
The removal of reputation risk as a supervisory tool meant that banks could now engage with crypto clients without fearing regulatory retaliation simply for serving the industry. Major financial institutions had been quietly preparing for the shift, with several announcing expanded digital asset custody services in anticipation of the policy change.
Europe’s MiCA Framework Reaches Full Operational Status
Across the Atlantic, the European Union’s Markets in Crypto-Assets (MiCA) regulation achieved another milestone on June 7, as several MiCA Technical Standards under Title III and IV became applicable. These standards standardized how national competent authorities supervise stablecoin issuers — specifically Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs) — across all 27 EU member states.
The Pillar 3 Data Hub, MiCA’s reporting framework for stablecoin issuers, became fully operational, requiring daily liquidity reporting to the European Banking Authority. The framework represented the most comprehensive stablecoin oversight regime in the world, establishing reserve composition requirements, redemption rights, and operational standards that issuers had to meet to operate within the EU.
SEC Clarifies Staking Is Not a Security
Perhaps the most immediately impactful regulatory development came from the SEC’s Division of Corporation Finance, which issued a memorandum clarifying that staking-as-a-service on public proof-of-stake networks would generally not be treated as a security offering — provided certain decentralized governance criteria were met.
The clarification resolved years of uncertainty that had cast a shadow over Ethereum’s validator ecosystem and the growing staking industry. Staking service providers, who had operated under the threat of enforcement actions since the SEC’s 2023 crackdown on Kraken’s staking product, could now offer their services with significantly greater legal certainty.
Legislative Momentum Builds in Congress
The regulatory thaw extended to Capitol Hill, where the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) continued to advance through the legislative process. The bill aimed to establish comprehensive federal standards for stablecoin issuers, including 1:1 dollar-backing requirements and regular auditing obligations.
Meanwhile, Congressman Tim Burchett introduced the Strategic Bitcoin Reserve Bill, proposing that the U.S. Treasury begin acquiring Bitcoin as a national strategic asset. The legislation reflected a growing bipartisan recognition that digital assets had become a permanent fixture of the global financial landscape.
Swiss CARF Implementation Adds Global Dimension
Switzerland added to the global regulatory momentum as the Swiss Federal Council approved plans to automatically exchange crypto asset data with 74 countries starting in 2027, adhering to the OECD’s Crypto-Asset Reporting Framework (CARF). The move signaled that tax transparency for digital assets was becoming an international norm, not just a national policy choice.
Why This Matters
June 7, 2025, may well be remembered as the day the cryptocurrency industry finally emerged from its regulatory adolescence. The simultaneous moves by the SEC, the Federal Reserve, and European regulators created a coordinated shift from uncertainty to clarity — and from enforcement to engagement. For investors, developers, and institutions, the message was unambiguous: the rules of the game were being written in plain sight, and the industry was being invited to help write them. The era of operating in regulatory gray zones was giving way to a new chapter of compliance-driven growth.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Readers should consult qualified professionals before making investment or compliance decisions. Past regulatory actions and legislative proposals do not guarantee future outcomes.
Fed removing reputation risk from bank examination manuals is the real story here. Operation Chokepoint 2.0 is officially dead and crypto companies can finally get bank accounts
2.149 billion budget request with a dedicated Crypto Task Force. thats a serious commitment to shifting from enforcement to actual rulemaking
the staking as a service memo clarifying its generally not a security is exactly what the industry needed. protocols can finally breathe
MiCA technical standards going live across 27 EU member states at the same time. the US is playing catchup with Atkins trying to close the gap