One month into Donald Trump's presidency, the cryptocurrency industry's euphoria over anticipated deregulation is giving way to a sobering realization: meaningful change may take years, not weeks.
At a Denarii Labs-hosted panel titled “Regulatory Crossfire: What's Next for Crypto in 2025,” held at the Eth Denver summit, legal experts Jonathan Turnham of NXT Law and Nick Pullman of One Law dissected the U.S. regulatory landscape, questioning whether the administration can deliver on its blockchain promises--or if global competitors will seize the moment first.
The discussion comes amid a whirlwind of post-election speculation.
Crypto markets surged in late 2024, hoping that Trump's administration would usher in a golden era of regulatory relief, fueled by the president's meme coin ventures and public statements favoring digital assets.
Yet, 30 days into his term, tangible progress remains elusive.
"We've seen a number of efforts spot-cundered," said Pullman, a legal advisor at One Law, referencing stalled initiatives like stablecoin regulation. "These things take time."
Turnham, a Cayman Islands-based lawyer with a decade of crypto law experience at NXT Law, echoed the sentiment, tempering enthusiasm with pragmatism.
"There's been a reality check," he noted, pointing to the gap between initial market exuberance and the slow grind of policy-making.
The panelists agreed that while the Securities and Exchange Commission's (SEC) recent decisions to drop enforcement cases against firms like Uniswap Labs and Coinbase signal a potential softening, it's far from a regulatory revolution.
The SEC's pivot under Acting Chair Hester Peirce, who now leads a rebooted crypto task force, and the expected confirmation of Paul Atkins as chair, marks a stark contrast to Gary Gensler's enforcement-heavy tenure.
Turnham expressed cautious optimism: "Those dropped cases involved mature projects with mature legal teams that tried to engage with regulators.
The fact that it happened quickly is progress."
He suggested Atkins, a respected figure with a pro-business bent, could bring "tough love and guidance" to an industry craving clarity.
Pullman predicted a pause in the SEC's aggressive posture, potentially reducing the need for reactive lawsuits like the Blockchain Association's challenge to the IRS.
"We've seen more collaboration in six weeks than in six years," he said, citing joint rule-making efforts between the SEC and the Commodity Futures Trading Commission (CFTC) to clarify the murky divide between securities and commodities in crypto.
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Yet, challenges loom. Defining "decentralized" remains a sticking point, and Pullman warned that stablecoin regulations--like the Stables Act of 2025--could stifle innovation if consumer protections (e.g., mandatory KYC whitelists) clash with interoperability.
"It's going to be challenging," he admitted, though he sees a path forward with better disclosures.
Beyond U.S. borders, the panel highlighted a jurisdictional arms race. Europe's Markets in Crypto-Assets (MiCA) framework, despite implementation hiccups across 27 nations, has prompted regulatory arbitrage, with some firms fleeing stringent rules.
Turnham's clients, many operating globally from the Cayman Islands, view the U.S. as a potential counterweight--if it can act decisively. "There's competition between jurisdictions," he said. "If Trump wants to bring it back here, he needs a regime people trust."
Emerging markets like India and Brazil, however, lag. Turnham attributed this to fears of losing financial control: "Governments historically use capital controls as a lever. Crypto threatens that."
Pullman added that building international trust in such markets takes decades, citing the Cayman Islands' decades-long reputation as a stable hub.
The panel also spotlighted signs of industry maturity.
Turnham, who has facilitated over a dozen token-level mergers, sees consolidation as healthy: "It's a recognition that running these businesses globally is difficult."
Banking support may also rise with the reported end of Operation Choke Point 2.0, though Pullman noted lingering hesitancy from risk-averse institutions.
Meanwhile, spot crypto ETFs are gaining traction post-SEC softening, though Turnham cautioned that legal hurdles around custody and consumer education persist.
Looking ahead, the interplay between U.S. regulations and global frameworks like the OECD's tax visibility efforts remains fluid.
"The U.S. is the gold standard everyone's trying to crack," Turnham said, but warned that clarity must come soon to fend off competitors.
For all the optimism, the panelists underscored a central truth: crypto's regulatory fate hinges on execution, not promises.
"No one wants the time and cost of litigation," Pullman said, advocating for collaboration over courtroom battles. As the Trump administration navigates its first 100 days, the industry watches--hopeful, but no longer starry-eyed.
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