Weekly Crypto Regulation Roundup: Sec Pulls Back, Cftc Expands And Trump’s Influence Grows

What Happened

This week delivered one of the most consequential stretches for U.S. digital-asset policy in recent memory. From the SEC stepping back from past enforcement priorities to the CFTC launching new pilots and rewriting old rules, the regulatory agenda is shifting rapidly—and the political backdrop is changing just as fast.

In another sign of shifting enforcement posture, the SEC formally ended its multi-year investigation into Ondo Finance without filing charges. The probe focused on whether Ondo’s tokenized treasuries complied with securities law and whether the ONDO token itself constituted a security.

The no-action outcome echoes a broader pattern emerging at the regulator: several enforcement cases initiated during the Biden administration have been softened, paused, or dropped entirely. For market participants, it raises a key question: Is the era of aggressive regulatory hostility finally ending?

Rep. Keith Self (R-Texas) introduced an amendment to the annual defense bill that would prohibit the development of a U.S. central bank digital currency. He accused GOP leadership of breaking promises by removing anti-CBDC language from the bill’s latest version.

Market Context

With banks now gaining expanded permissions to transact in crypto and Congress re-opening the CBDC debate, the industry is entering 2026 with an entirely new set of power dynamics. Below are the major developments shaping the new regulatory landscape.

For a pro-crypto administration that has already established the President’s Working Group on Digital Assets, signed the GENIUS Act for stablecoin regulation, and pulled back on several enforcement actions, the omission stands out. It indicates that while the White House is making room for digital assets in market policy, crypto has not yet broken into core national-security planning.

The decision also gives further legitimacy to the fast-growing real-world asset (RWA) sector, which is increasingly viewed as a regulated bridge between traditional finance and blockchain markets.

Acting Chair Caroline Pham unveiled a major pilot program allowing Bitcoin, Ether, and USDC to be used as collateral in derivatives markets. The initiative will give regulators real-time visibility into how tokenized collateral performs under market stress, a key step toward integrating crypto into regulated clearing and settlement.

Scrapped its outdated 2020 “actual delivery” Bitcoin guidance, which had long been criticized as incompatible with modern trading practices and the GENIUS Act;

Granted no-action relief to four prediction markets—Polymarket US, LedgerX, PredictIt, and Gemini Titan—easing reporting burdens and reducing enforcement risks for a category of platforms that has grown faster than regulators expected.

This effectively gives banks permission to operate as regulated intermediaries in crypto trading, narrowing the gap between banking and digital-asset markets. Combined with previous OCC guidance allowing custody and balance-sheet holdings, the banking sector is now closer to full crypto market participation than ever before.

Why It Matters

Still, the administration’s actions matter more than the document’s omissions. Bitcoin may not have earned a line in the NSS, but regulatory behavior suggests digital assets are becoming embedded in the economic strategy—even if not yet the security framework.

In a landmark decision, the Office of the Comptroller of the Currency (OCC) said national banks may now engage in riskless principal crypto transactions, allowing them to buy from one customer and sell to another without holding inventory.

Details

Trump’s National Security Strategy Sidesteps Bitcoin, but the Context Matters

The Trump administration released its 2025 National Security Strategy (NSS), a 33-page document detailing the White House’s priorities across global economic and technological fronts. Surprisingly, digital assets received no mention. Instead, the report leaned heavily into AI, quantum computing, biotech, and other frontier sectors.

SEC Closes Ondo Probe Without Charges—A Break From the Past

CFTC Expands Its Role: New Collateral Pilot and Rule Withdrawals

If the SEC is stepping back, the CFTC is accelerating.

In the same week, the CFTC:

These moves show that the CFTC is preparing to become the dominant U.S. crypto regulator, a shift that appears to be in line with Congressional momentum behind expanding the agency’s mandate.

Congress Reignites the CBDC Fight

The amendment highlights deepening political divides over digital cash. Conservatives argue that a CBDC threatens financial privacy, while supporters say it modernizes payment infrastructure. With the 2026 election cycle approaching, CBDCs are becoming a wedge issue, and legislative momentum remains uncertain.

Banks Move Into Crypto as Regulators Open the Door

In parallel, regulators revealed that nine major banks imposed inappropriate restrictions on crypto companies, further underscoring the need for consistent standards as banks move deeper into the space.