Regulators Unleash New Rules Amid Congressional Crypto Frenzy

As Congress Talks Up Its 'Earth-Shaking' Crypto Bill, Regulators Are Already at Work

March 20, 2025 - Washington, D.C.

As lawmakers on Capitol Hill continue to tout a forthcoming "earth-shaking" cryptocurrency bill, regulators are quietly getting to work on implementing the new rules.

According to sources familiar with the matter, the Financial Stability Oversight Council (FSOC) has already begun drafting guidelines for the proposed legislation, which aims to bring greater transparency and oversight to the digital asset market.

The FSOC, a council of regulators tasked with identifying potential threats to the financial system, is expected to play a key role in shaping the new rules. Its chairman, Federal Reserve Vice Chairman for Supervision Randal Quarles, has been a vocal proponent of stricter regulations on crypto.

The proposed bill, which has yet to be formally introduced, is expected to tackle issues such as consumer protection, anti-money laundering (AML) and know-your-customer (KYC) requirements, and capital requirements for crypto firms.

Regulators are also working to establish a new framework for the oversight of cryptocurrency exchanges, which have grown rapidly in recent years. The goal is to ensure that these exchanges are subject to the same standards as traditional financial institutions.

Industry insiders say that the proposed bill could have far-reaching implications for the crypto market, which has long operated in a regulatory gray area. Some firms are already adapting to the changing landscape, while others are bracing for the potential impact on their businesses.

"This is a big deal for the industry," said one crypto executive, who spoke on condition of anonymity. "We're talking about a whole new level of oversight and regulation. It's going to be a wild ride."

The proposed bill is expected to be introduced in the coming weeks, with lawmakers aiming to pass the legislation before the end of the year. In the meantime, regulators will continue to work behind the scenes to shape the new rules and ensure a smooth transition for the crypto market.