Crypto Regulations Might Evolve in 2026

It is clear that crypto is more valuable and popular than it has ever been. And this means that next year we have to build on the progress we’ve already seen. But how exactly might crypto regulations unfold?

Uniform Application of Laws

One of the challenges the crypto industry has faced over the years is the application of various laws in different regions. Generally speaking, each country, and even states and provinces within them, decides on their own treatment of crypto assets. This means, however, that crypto firms are having to navigate different laws in different states, sometimes moving operations to places with more favorable laws. But as more places are feeling the impact of the industry, there is more emphasis on creating laws that are applied across the board.

This is because more consumers are investing in cryptocurrency and seeking to use it as a medium of exchange. Bitcoin, for example, is more valuable. Alongside it, altcoins are also seeing strong consumer demand. Meme coins, for example, saw an increased wave of legitimacy after US President Donald Trump released his own token earlier this year. With this, many investors are looking for the top meme coins 2025, and this means they cannot be left to self-governance mechanisms. 2026 will see even more altcoins, such as meme coins, entering the market, and many governments are proactively putting in laws to manage this.

The biggest example would be the Markets in Crypto-Assets (MiCA) regulation, which is expected to be implemented across the European Union in 2025 and beyond. This will include consistent classification of digital assets, taxation of businesses, issuance of licenses to service providers, and much more. As these become more enforced, businesses and their customers will have to adjust their behavior to stay on the right side of the law. However, this will usher in greater uniformity and perhaps less friction between the government and industry.

Taxation

Crypto taxation has been a pressing issue for years now, with various governments even facing backlogs of transactions to enforce proper tax requirements. One notable development is the UK passing the OECD's Cryptoasset Reporting Framework (CARF) law. These will require digital asset service providers to provide information on consumer transactions to the government to ensure no one dodges their relevant taxes. In places like the United States, there is also a greater emphasis on crypto-related taxes and making sure everyone pays their fair share. Next year, we will likely see more tax-related bills passed and, more importantly, enforced.

Custody Regulations

The last few years have seen a greater emphasis on institutional investment in cryptocurrency. Not only were spot ETFs for several tokens approved in the United States, but more pension funds and government-backed institutions are dipping their toes in the crypto waters. This means that more laws are being pushed to regulate custody of tokens to ensure asset safety and reassure investors. In the UK, for example, new laws are being considered that would require institutional investment funds to be kept separate from broker funds.

This effectively eliminates the possibility of hacks, phishing schemes, or other attacks that could result in massive losses of investors' funds. While this is mainly being done in the United Kingdom, other countries with similar levels of institutional investment will likely follow suit.

The Legal Status of Cryptos

Perhaps the longest-running legal debate about cryptocurrency is what exactly it is. Are they currencies? Are they a medium of exchange? Are they investments? Are they stocks? These debates are not going away anytime soon, and as cryptocurrency remains prominent in the public eye, investors and regulators alike will take their stands.

This is further compounded by the rise of other blockchain-related assets, such as Non-Fungible Tokens (NFTs), which are poised for a bigger comeback in 2026. Regulators will have to confront their attitudes towards these assets and, in some cases, define their place in the legal sphere once and for all.

Central Bank Digital Currencies

The biggest sign of institutional support for cryptocurrencies as a concept might just be Central Bank Digital Currencies (CBDCs). China and the British Virgin Islands have already issued their own CBDCs, while the debate about a digital euro and digital pound continues to wage on. The United Kingdom is looking towards the design phase of the digital pound by 2026, moving forward with its ambitions to enter the space.

The digital euro is in a similar position, still in development, but without a definite release date. Meanwhile, the digital dollar, which is perhaps the most anticipated of all the CBDCs, remains in limbo. US President Donald Trump has said clearly that there will be no digital dollar during his tenure, as he does not see its value. And despite constant lobbying, it seems this will remain the case until at least he leaves office.

Conclusion

2026 is poised to be yet another interesting and impactful year for cryptocurrency-related regulation. Several countries will move forward with ongoing crypto-related regulations, including taxation, custody, and more. The theme seems to be creating a more mature crypto market where institutions and individuals can invest without issue. Certain issues, such as Central Bank Digital Currencies and even the legal status of crypto itself, will not be resolved in 2026 but will likely remain relevant well into the future.