In 2026, the landscape of cryptocurrency regulations is poised for significant transformation, influenced by developments throughout 2025. This evolution will notably affect users in the United States, the United Kingdom, and the Asia-Pacific (APAC) regions.
The Federal Deposit Insurance Corporation (FDIC) in the United States released a proposal in December that outlines a pathway for banks to issue dollar-pegged stablecoins under the GENIUS framework, which was authorized by Congress in mid-2025. According to the proposal, banks are required to issue these stablecoins via a subsidiary, with both entities undergoing thorough FDIC reviews and audits to ensure financial stability.
Moreover, the US Federal Reserve has reversed its previous guidance that prohibited banks from engaging in cryptocurrency activities. This change will enable banks to manage customer assets and offer a wider range of crypto services starting in 2026. Investors should also keep an eye on the anticipated passage of the CLARITY Act in the United States in 2026, which aims to establish a comprehensive regulatory framework for cryptocurrencies. This legislation will address key areas such as taxation, asset classification, and the issuance of digital assets.
In the United States, the taxation of cryptocurrencies will be applied when digital assets are exchanged or sold. Tax rates will vary, with a range of 0%-20% for assets held for over a year, and 10%-37% for assets held for shorter timeframes. As of January 2026, centralized crypto brokerages and service providers will be required to report the cost basis of digital assets to the IRS. However, decentralized exchanges will not be subject to these new reporting requirements, as noted by Coinbase.
Across the Atlantic, the UK”s Financial Conduct Authority (FCA) is expected to finalize its regulations for the crypto industry in 2026, which will include anti-money laundering (AML) and Know Your Customer (KYC) requirements. These regulations will align with standards in traditional financial markets and encompass consumer protections as well as licensing mandates for approved digital asset service providers. Additionally, the UK and the EU recently adopted the Crypto-Asset Reporting Framework (CARF), which standardizes data collection from crypto exchanges regarding users” trades for tax purposes. Under CARF, crypto service providers are required to gather extensive customer data and submit annual reports on account balances and transactions to local tax authorities, which will then share this information with international counterparts.
In the Asia-Pacific region, Hong Kong has made strides in advancing a regulatory framework for stablecoins, with lawmakers moving forward on a stablecoin regulatory bill in December. After undergoing three readings that will include revisions and discussions, the legislation is anticipated to become law in 2026, establishing a comprehensive regulatory framework for stablecoins in Hong Kong. However, the mainland Chinese government has exhibited inconsistency in its stance on crypto policies, recently issuing another ban on cryptocurrencies. After advocating for stablecoin reforms in 2025, regulators have shifted focus back to the development of the digital yuan, a central bank digital currency (CBDC). In a recent initiative, the People”s Bank of China has begun allowing commercial banks to provide interest to holders of digital yuan starting January 2026, broadening its functionality beyond merely replacing fiat currency.
As 2026 approaches, these regulatory changes are set to shape the future of cryptocurrency markets and user experiences, with significant implications for compliance, taxation, and the overall framework within which digital assets operate.
