The Legal Landscape of Digital Asset Ownership

In an era where blockchain technology reshapes finance, understanding the evolving legal framework is essential. From federal statutes to agency guidance, the contours of digital asset ownership are taking clearer shape, empowering innovators and safeguarding investors.

Major Legislative Milestones Shaping the Future

Over the past two years, US lawmakers enacted and advanced key bills that establish a foundation for digital asset regulation. These measures address stablecoins, digital commodities, and market infrastructure, providing a roadmap for industry participants.

• GENIUS Act (2025): Enacted as the first major US law regulating crypto assets, it focuses on payment stablecoins. The Act creates a comprehensive federal framework covering issuers, regulators, reserve assets management, and prohibits interest on stablecoin holdings.
• CLARITY Act (2025): Passed by the House with bipartisan support, this Act resolves SEC–CFTC jurisdictional friction by defining most digital assets as commodities under CFTC oversight, narrowing the SEC’s authority over tokens.
• Market Infrastructure Bill (anticipated 2026): Poised for adoption, it will establish a regime for digital asset brokers, dealers, and exchanges, and clarify when crypto transactions qualify as securities offers or sales.

Regulatory Agency Actions and Guidance

Beyond statutes, federal agencies have issued transformative guidance, signaling a shift from enforcement to facilitation. This evolution is crucial for mainstream adoption and clarity.

SEC Developments: Early 2025 saw the rescission of SAB 121 and the introduction of SAB 122, granting firms discretion in recording crypto custody as liabilities based on loss risk. The SEC withdrew its 2019 joint statement with FINRA, allowing broker-dealers to custody digital asset securities under Rule 15c3-3(b)(1) with enhanced DLT controls. Project Crypto (2026) promises a taxonomy of cryptoassets and potential innovation sandboxes.

CFTC Developments: The CFTC withdrew Staff Advisory 20-34 and issued no-action relief permitting futures commission merchants to accept digital assets as collateral under specified reporting and valuation rules. It also expanded retail access to event contracts and spot trading on regulated platforms.

Banking Regulators: The OCC, FDIC, and Federal Reserve have relaxed prior constraints on banks engaging with digital assets and DLT. The OCC now grants national trust charters to fintechs, and the Fed is exploring central bank accounts for non-depository entities to access payment rails.

Other Federal Initiatives: The White House’s Working Group on Digital Assets aims to solidify the US as the "crypto capital of the world." Recommendations include tax and non-tax measures like the Crypto Asset Reporting Framework (CARF) to enhance transparency in purchases, sales, and DeFi activities.

Commercial and Custody Frameworks

Legal certainty for digital asset collateral and custody is critical for lenders, exchanges, and investors. Amendments to Article 12 of the Uniform Commercial Code (UCC) have been adopted in most states, treating digital assets as "controllable electronic records."

These reforms deliver uniform treatment of digital collateral, reducing counterparty risk and unlocking new lending and trading opportunities.

Emerging Trends and Predictions for 2026

As the regulatory framework solidifies, industry participants should watch several key themes that will drive growth and compliance in the coming year.

• Democratization of digital assets through guidance minimizing enforcement fears.
• Tokenization of traditional securities under proposed SEC frameworks.
• Enhanced focus on risk management: market, capital, liquidity, cyber, and AML controls.
• Expansion of innovation sandboxes and single-license regimes for super apps.

Persistent Uncertainties and Looking Ahead

Despite significant progress, certain areas remain in flux. Courts continue to interpret property rights in tokens, while private litigation challenges definitions under the Howey test. The implementation of CARF raises questions around DeFi reporting, aggregation of wallets, and identification of controlling persons.

Global regulators are also moving forward, making 2026 a pivotal year for harmonizing standards. US leadership in digital finance will depend on balancing innovation-friendly policies with robust consumer protections and transparency requirements.

For businesses and investors, staying informed and engaged is imperative. Monitor agency rulemakings, participate in industry working groups, and adapt governance frameworks to meet evolving expectations. With a clearer legal landscape, the promise of secure, scalable, and inclusive digital finance is within reach.

Embrace these developments to position your organization at the forefront of the next financial revolution.