Weekly Regulation Roundup: Pardons, Pullbacks, and a Pro-Crypto Reset in Washington

Washington’s tone toward crypto shifted noticeably this week, signaling what many in the industry see as the start of a regulatory reset. After years of enforcement-heavy policy, lawmakers and regulators appear to be stepping back, rethinking priorities, and opening space for clearer rules.

One of the biggest talking points was renewed discussion around potential presidential pardons tied to high-profile crypto cases. While nothing has been finalized, the conversation alone reflects a softer political stance and growing recognition that some past enforcement actions may have gone too far or lacked regulatory clarity.

At the same time, federal agencies are quietly pulling back. The U.S. Securities and Exchange Commission has paused or slowed several aggressive actions, while signaling more interest in guidance and public dialogue rather than headline-grabbing lawsuits. The Commodity Futures Trading Commission is also expected to gain a more defined role, particularly around spot crypto markets.

Capitol Hill is reinforcing this shift. Lawmakers from both parties are reviving talks on market structure, custody standards, and stablecoin oversight, aiming to replace uncertainty with rules that actually work. Instead of treating crypto as a threat, policymakers are increasingly framing it as infrastructure worth regulating properly.

This doesn’t mean crypto is entering a free-for-all. Oversight is still coming but the mood has changed. After years of tension, Washington appears ready to move from punishment to policy, giving the industry its clearest path yet toward legitimacy and long-term growth.