Congress Grapples with Cryptocurrency Regulation Amid Fragmented Oversight
The US Congress is grappling with how to regulate cryptocurrencies due to fragmented federal oversight. A report from the Congressional Research Service, dated May 29, highlights that cryptocurrency regulation remains divided among agencies, statutes, and shifting administrative interpretations.
The market capitalization of cryptocurrencies reached $4 trillion in October 2025 and stood at approximately $2.5 trillion in March 2026. Bitcoin and Ether together represented roughly 70% of the market.
The report notes that there is no overarching federal framework covering issuance, trading-market structure, financial-law relationships, and asset classifications. This has led to a shift towards less restrictive application at agencies during the Trump administration compared to the Biden administration.