U.S. Policy Cleared Crypto Hurdles as Bitcoin Halved

Federal actions in 2025 and 2026 removed several legal and regulatory barriers for digital assets, while Bitcoin’s market price fell sharply over the same period.

In January 2025 an executive order endorsed lawful use of public blockchains and stablecoins, created a presidential working group on digital assets and directed agencies to support U.S. crypto leadership. In March 2025 a second order established a Strategic Bitcoin Reserve, instructing officials to explore ways to retain Bitcoin forfeited to the federal government. In July 2025 Congress enacted the GENIUS Act, which set reserve, licensing and disclosure rules for payment stablecoins.

Regulatory agencies adjusted their positions. The Securities and Exchange Commission opened a dedicated crypto task force and dismissed multiple enforcement cases that had been active under prior leadership; the agency dismissed the case against Coinbase in February 2025 and reported seven crypto-related dismissals by April 2026. The Federal Reserve removed special notification requirements for banks’ crypto activities, and the Office of the Comptroller of the Currency reiterated that national banks may offer custody and execution services. Spot Bitcoin exchange-traded funds had been available since January 2024.

Market prices moved separately from the policy changes. Bitcoin reached an all-time high of $126,000 on Oct. 6, 2025. Four days later a global risk shock and heavy leverage triggered liquidations exceeding $19 billion over roughly 24 hours on Oct. 10–11, 2025. By Aug. 3, 2026 Bitcoin traded around $62,600.

Institutional flows and exchange metrics showed weakening demand. By July 1, 2026 Citigroup estimated U.S. spot Bitcoin ETFs had recorded about $3.3 billion of net outflows for the year and reduced its 12-month Bitcoin forecast to $82,000 after removing expected ETF inflows for 2026. Midyear ETF reviews recorded June outflows near $4.5 billion. One major U.S. exchange reported second-quarter 2026 transaction revenue of $599.2 million, down from $764.3 million a year earlier, monthly transacting users declined from 8.7 million to 7.6 million, and the company posted a $359.5 million net loss.

Corporate treasury activity also shifted. Between June 29 and July 5, 2026 a publicly traded treasury company sold 3,588 Bitcoin for roughly $216 million to meet preferred-stock obligations and rebuild dollar reserves. The company reported an $8.32 billion unrealized second-quarter loss on its digital assets, mostly driven by lower Bitcoin valuations.

Spot ETFs and bank custody provided on‑ramp and trading convenience: ETFs trade on public exchanges and can be bought or sold through standard brokerage accounts. The regulatory changes clarified legal exposure for exchanges, banks and stablecoin issuers and altered operational rules for custody and product launches.

The timeline above lists the actions taken, the dates they occurred and the market and corporate figures reported through early August 2026.