How America’s 21% Crypto Ownership Sparks Global Regulatory Divide

- Dramatic shifts in global crypto regulations over the past five years. - U.S. pro-crypto policies deepen the global regulatory divide. Over the last five years, global cryptocurrency regulations have evolved significantly, creating a polarized landscape that divides nations embracing digital assets from those retreating from them. The United States has emerged as a leader in crypto adoption due to positive policy shifts. In contrast, countries like China and Russia maintain restrictive stances, while "sovereign innovators" such as El Salvador are pioneering groundbreaking experiments using Bitcoin as a strategic asset. On August 5, 2025, Cointelegraph reported that the United States has taken substantial steps to embrace cryptocurrency, transitioning the nation from skepticism to proactive adoption. The approval of spot Bitcoin ETFs, including one from BlackRock, and the passage of bipartisan stablecoin legislation reflect this policy shift. Cointelegraph also noted that nearly 21% of Americans now own cryptocurrency, a trend that further influences political attitudes. While the U.S. accelerates innovation, "insider" nations that traditionally follow its regulatory lead maintain a cautious stance. For instance, the United Kingdom plans to enforce significant fines for non-compliance with the OECD's Crypto-Asset Reporting Framework (CARF). The European Union has implemented the Markets in Crypto-Assets (MiCA) regulation to legitimize exchanges under strict oversight, while Japan and South Korea have also adopted regulatory policies to mitigate perceived risks to their monetary systems. Conversely, "outsider" nations like China and Russia have retreated further from cryptocurrency markets. China continues its ban on crypto-related activities, instead promoting its central bank digital currency, the digital yuan. Russia, however, has legalized crypto mining and its use for cross-border trade to circumvent U.S. sanctions, while limiting domestic usage to its digital ruble. Other BRICS countries, like Brazil and India, have taken a more balanced approach, allowing crypto payments but imposing heavy taxes to protect their national currencies. A notable development comes from "sovereign innovators," led by El Salvador. In 2021, the nation made Bitcoin legal tender. Since then, the country has accumulated significant Bitcoin reserves and expanded its geothermal-powered mining operations. Reports indicate that other nations, including Bhutan, Pakistan, and Argentina, have followed this trend, demonstrating the increased use of cryptocurrency as a strategic economic tool. Meanwhile, countries once seen as crypto experimenters have evolved into compliance-bound jurisdictions. Nations like Singapore, Switzerland, Malta, and Estonia now adhere to international standards such as the Travel Rule and CARF. According to market data on August 5 at 16:16 UTC: Bitcoin (BTC) is trading at $113,168.97, a 1.61% decrease over the past 24 hours. Bitcoin Cash (BCH) is priced at $565.15, down 2.03% for the day. Ripple USD (RLUSD) traded at $1.00, a minimal decline of 0.005%.