Blockchain Association Urges SEC to Abandon Equity-Style Crypto Regulation as Global Rules Tighten

May 2, 2025 marks a pivotal day for cryptocurrency regulation on both sides of the Atlantic. The Blockchain Association submits a comprehensive letter to the US Securities and Exchange Commission calling for an end to equity-style crypto regulation, while the United Kingdom unveils plans to ban consumers from borrowing to buy cryptocurrency and the European Union continues its crackdown on privacy tokens. These parallel regulatory developments signal a global shift in how governments approach digital asset oversight — with vastly different philosophies emerging across jurisdictions.

TL;DR

• Blockchain Association submits formal letter to SEC Crypto Task Force on May 2, calling for fundamental regulatory reform
• The industry group urges the SEC to stop treating crypto tokens like traditional equity securities
• UK announces plans to prohibit consumers from borrowing money to purchase cryptocurrency
• Netherlands AFM publishes new CASP guidelines under anti-money laundering frameworks
• Senate advances revised GENIUS Stablecoin Bill with enhanced privacy and consumer protections

Blockchain Association’s Push for Regulatory Reform

The Blockchain Association delivers a detailed submission to the SEC’s Crypto Task Force on May 2, 2025, focusing primarily on trading, clearing, settlement, and custody of digital assets. The letter argues that applying traditional equity securities frameworks to crypto tokens creates fundamental mismatches that stifle innovation without protecting investors.

The association contends that crypto assets operate under fundamentally different mechanics than stocks — they trade around the clock across decentralized and centralized venues, settle on blockchain networks rather than through legacy clearinghouses, and often carry utility or governance functions that have no equivalent in traditional equity markets. Forcing these assets into a regulatory mold designed for 20th-century securities markets creates unnecessary friction and drives innovation offshore, the group argues.

The submission comes at a moment of transition for the SEC itself. Under new Chair Paul S. Atkins, appointed by President Trump earlier in 2025, the agency has already suspended lawsuits against major crypto firms including Coinbase and Ripple. Atkins has publicly stated that the SEC will not regulate memecoins as securities and has signaled a broader willingness to rethink how digital assets fit within existing regulatory frameworks.

The Blockchain Association’s letter builds on this momentum, pressing the agency to establish bespoke rules for crypto trading, custody, and settlement rather than simply extending equity market regulations through enforcement actions and interpretive guidance.

UK Bans Crypto Purchases on Credit

On the same day, the United Kingdom takes a markedly different regulatory approach. The UK Treasury announces new rules that will bar consumers from borrowing money to buy cryptocurrency, a move aimed at curbing speculative excess and protecting retail investors from leveraged losses.

The UK Financial Conduct Authority also advances requirements that all crypto platforms report every transaction made by UK-based users, dramatically expanding surveillance over the domestic crypto market. The framework positions the UK as one of the most aggressive consumer protection regimes for digital assets globally.

The British approach contrasts sharply with the more industry-friendly posture emerging in the United States under the Trump administration’s pro-crypto executive order. While the US pushes toward deregulation and innovation-first policies, the UK doubles down on consumer safeguards and anti-money laundering enforcement.

EU Crackdown and Dutch CASP Guidelines

The European Union continues to tighten its oversight of the crypto sector. On May 2, the Netherlands Authority for the Financial Markets publishes an annex to its anti-money laundering guidelines specifically dedicated to crypto-asset service providers, setting detailed expectations for customer due diligence, transaction monitoring, and suspicious activity reporting.

The Dutch guidelines align with the broader EU Markets in Crypto-Assets regulation framework, which continues to roll out across member states. MiCA establishes comprehensive rules for stablecoin issuers, crypto exchanges, and wallet providers, with enforcement deadlines approaching throughout 2025.

The EU’s approach represents a middle ground between the US deregulatory push and the UK’s consumer-protection-heavy framework — comprehensive rules that create regulatory certainty but impose significant compliance costs on crypto businesses operating within the bloc.

Senate Advances GENIUS Stablecoin Bill

Back in the United States, the Senate moves forward with a revised version of the GENIUS Stablecoin Bill on May 2, advancing legislation that would create a dedicated regulatory framework for payment stablecoins. The revised bill incorporates enhanced provisions for consumer privacy and reserve transparency, addressing concerns raised during earlier committee markups.

The stablecoin legislation represents one of the most concrete pieces of crypto-specific regulation to advance through Congress, potentially establishing clear rules for issuers like Tether and Circle that have operated in regulatory gray zones for years. Tether CEO Paolo Ardoino confirms the company’s plans to launch a US-focused stablecoin later in 2025, a move that would position the largest stablecoin issuer directly within American regulatory jurisdiction.

Meanwhile, Apple relaxes its App Store rules related to cryptocurrency in the US, easing restrictions that have long frustrated crypto wallet developers and exchange operators seeking to offer full functionality through mobile applications. The policy shift removes another structural barrier to mainstream crypto adoption in the American market.

What These Parallel Developments Mean

The regulatory divergence across major jurisdictions creates both opportunities and challenges for the crypto industry. Companies operating globally must navigate a patchwork of rules — from the US innovation-friendly posture to the UK’s protective framework to the EU’s comprehensive compliance regime. This fragmentation increases operational costs but also creates competitive dynamics where jurisdictions compete to attract crypto businesses through regulatory clarity and favorable terms.

For investors and market participants, the trend is clear: regulation of digital assets is accelerating worldwide, but the shape of that regulation varies dramatically. The coming months will determine which approach proves most effective at balancing innovation, consumer protection, and financial stability.

Why This Matters

The simultaneous regulatory actions on May 2, 2025 represent an inflection point for the cryptocurrency industry. The Blockchain Association’s direct engagement with the SEC, combined with the agency’s new leadership under Atkins, creates a genuine opportunity for the US to establish clear, crypto-specific rules that could set a global template. But the contrasting approaches from the UK and EU show that international regulatory convergence remains far off. For the market, regulatory clarity — even restrictive clarity — is generally positive because it reduces the uncertainty premium that suppresses institutional adoption. The stablecoin bill alone could unlock billions in institutional capital by providing a clear legal framework for the most widely used crypto instruments. The question now is whether the US seizes this moment or allows regulatory fragmentation to persist.

Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Cryptocurrency regulations vary by jurisdiction and evolve rapidly. Always consult qualified professionals for guidance specific to your circumstances.