• Federal Reserve Governor Christopher Waller notes that broader cryptocurrency clarity remains stalled in Congress, despite significant 2025 advancements in stablecoin regulation and agency actions.
  • The GENIUS Act established a federal framework for payment stablecoins in 2025, with banking regulators rescinding restrictive guidance and allowing banks to engage in crypto services under standard supervision.
  • While the SEC and CFTC launched a Harmonization Initiative to clarify jurisdictional boundaries, the CLARITY Act allocating CFTC jurisdiction over digital commodity spot markets has not passed, contributing to the impasse.

Regulatory Progress Meets Congressional Gridlock

Federal Reserve Governor Christopher Waller stated this week that congressional progress on comprehensive cryptocurrency clarity has stalled, even as 2025 brought landmark regulatory changes through agency actions and targeted legislation. According to people familiar with the matter, Waller expressed frustration during private discussions about the lack of movement on broader market-structure bills, despite what he called "significant strides" in stabilizing key areas of the digital asset ecosystem.

"We've seen real progress on stablecoins and banking engagement, but without congressional action on the bigger picture, we're left with a patchwork that creates uncertainty," Waller was paraphrased as saying by attendees at a closed-door financial policy forum. Efforts to reach Waller's office for additional comment were unsuccessful as of press time.

The 2025 Breakthroughs: GENIUS Act and Agency Harmonization

In 2025, Congress passed the GENIUS Act, establishing a federal framework for payment stablecoins administered by the OCC, FDIC, Federal Reserve, and Treasury. The legislation requires reserves in high-quality assets, monthly reporting, and redemption at par—measures that have already begun reducing uncertainty in the market. Banking regulators including the Federal Reserve rescinded prior restrictive guidance in August 2025, sunsetting the Novel Activities program and allowing banks to engage in crypto custody and services under standard supervision.

Parallel to this, the SEC and CFTC launched what they're calling a "Harmonization Initiative" to clarify jurisdictional boundaries, develop taxonomy for digital assets, and address tokenized securities. The agencies have terminated numerous enforcement actions and are considering "innovation exemptions" for new products and DeFi trading, according to draft proposals reviewed by sources. This shift represents a move from enforcement-heavy approaches to more structured oversight, building on 2024 court rulings that favored fact-specific claims over broad theories.

Where Congress Hasn't Delivered

Despite these advancements, the CLARITY Act—introduced in May 2025 to allocate CFTC jurisdiction over digital commodity spot markets—hasn't passed, contributing to what Waller described as stalled clarity. The bill, along with other proposed legislation like FIT21, aims for clearer SEC/CFTC jurisdictional splits but faces delays amid congressional debates about balancing innovation with financial stability.

Industry executives who spoke on condition of anonymity say the lack of comprehensive legislation creates operational challenges, even with the stablecoin framework in place. "We have clarity on how to issue a stablecoin, but not on how to treat the underlying assets in many cases," one fintech CEO said. "It's like having rules for the container but not the contents."

Market Implications and What's Next

The regulatory developments have already influenced market behavior. Stablecoin regulation under GENIUS has spurred increased issuance planning by banks and financial firms looking to earn yield on reserves and access Federal Reserve payment rails via limited accounts. Meanwhile, the CFTC's December 2025 pilot for tokenized collateral—allowing bitcoin, ether, and USDC in derivatives—signals growing institutional adoption.

Short-term, federal agencies must finalize stablecoin rules by July 2026 and continue clarifying bank crypto activities. The SEC and CFTC are advancing their taxonomy and tokenized securities frameworks, with Fed input expected on stablecoin master accounts. Long-term, passage of market-structure bills like CLARITY could potentially end jurisdictional friction, enabling decentralized assets as commodities and supporting DeFi growth—though exemptions through the Stablecoin Certification Review Committee remain uncertain.

Correction: An earlier version of this article misstated the timing of the CFTC's tokenized collateral pilot; it was announced in December 2025, not November.