This past week brought major changes in U.S. crypto policy, signaling a big shift in how digital assets will be regulated going forward. From the SEC easing up on enforcement to the CFTC launching new programs, it’s clear that the government is rethinking its approach to cryptocurrency. Banks are starting to get more involved, and lawmakers are once again debating the future of a U.S. digital dollar (CBDC). Here’s a breakdown of the biggest developments.

Trump’s New Security Plan Skips Bitcoin – But That’s Not the Whole Story

The Trump administration just released its 2025 National Security Strategy, outlining top priorities in tech and global affairs. Interestingly, cryptocurrency didn’t get a single mention in the 33-page document. Instead, it focused on areas like artificial intelligence, quantum computing, and biotechnology.

This is surprising because Trump has already taken several pro-crypto actions, such as setting up the President’s Working Group on Digital Assets and signing the GENIUS Act to regulate stablecoins. Even though crypto wasn’t named in the security report, the administration’s recent moves suggest it’s becoming an important part of economic planning – just not yet a top concern for national security.

SEC Ends Investigation Into Ondo Finance With No Charges

In a major sign of changing attitudes at the SEC, the agency has officially closed its long-running investigation into Ondo Finance without taking any action. The case was focused on whether Ondo’s tokenized treasury products and its ONDO token were illegal securities.

This no-action outcome is part of a trend where several crypto-related cases have been dropped or delayed. It may signal the end of the SEC’s more aggressive stance on crypto regulation. It’s also a win for the real-world asset (RWA) sector, which connects traditional finance with blockchain technology.

CFTC Steps Up With New Crypto Pilot and Rule Changes

While the SEC appears to be stepping back, the Commodity Futures Trading Commission (CFTC) is moving full speed ahead.

Acting Chair Caroline Pham introduced a new pilot program allowing Bitcoin, Ethereum, and USDC to be used as collateral in derivatives trading. This will help regulators understand how digital assets perform under pressure and support safer integration into traditional finance.

The CFTC also made other big moves:

– They scrapped outdated 2020 guidance on Bitcoin delivery rules, which many said didn’t work with today’s crypto markets.
– They granted relief to four prediction market platforms – Polymarket US, LedgerX, PredictIt, and Gemini Titan – making it easier for them to operate legally.

These changes show that the CFTC wants to become the main crypto regulator in the U.S., especially as Congress seems ready to expand its authority.

Congress Reopens Debate Over U.S. Digital Dollar (CBDC)

Congress is once again fighting over whether the U.S. should launch a central bank digital currency. Rep. Keith Self from Texas introduced an amendment to block any development of a CBDC as part of the annual defense bill. He argued that previous promises to stop CBDCs were removed from the latest version of the bill.

This debate highlights strong political disagreements. Some Republicans believe a CBDC could harm financial privacy and give too much power to the government. Supporters say it could modernize payments and help America keep up with other countries developing digital currencies.

Banks Get Green Light for Crypto Trading

In a big move for traditional finance, the Office of the Comptroller of the Currency (OCC) now allows national banks to conduct “riskless principal” crypto trades. This means banks can buy crypto from one customer and sell it to another without holding it themselves, acting more like middlemen than traders.

This decision follows earlier OCC guidance allowing banks to hold crypto and offer custody services. Together, these steps bring traditional banks much closer to full participation in digital asset markets.

At the same time, regulators revealed that nine large banks had unfairly restricted services for crypto companies, highlighting a need for clearer and more consistent rules as banks enter the space.

Trump’s Pick for CFTC Chair Heads to Senate Vote

Michael Selig, Trump’s nominee to lead the CFTC, is now up for a Senate confirmation vote. If approved, he’ll take charge of an agency rapidly gaining power over crypto regulation. Selig has pledged to make the U.S. “the Crypto Capital of the World,” hinting at bold changes ahead.

This comes at a critical time: the CFTC currently has only one commissioner and is dealing with staffing shortages as its responsibilities expand.

The Big Picture: A New Era for Crypto Regulation

In just one week, U.S. crypto policy took major steps toward change:

– The SEC is backing off aggressive enforcement.
– The CFTC is becoming more active and assertive.
– Banks are being allowed to trade crypto.
– Congress is reigniting debates over CBDCs.
– Trump is reshaping policy through agency appointments.

All these shifts point to a new era where digital assets are no longer on the sidelines – they’re becoming central to economic strategy and regulation in America.