Russia advances crypto rules as US bill stalls

Russia has moved closer to opening a regulated cryptocurrency market while Washington struggles to complete its own digital-asset framework, creating a sharp contrast between state-controlled certainty in Moscow and political deadlock in the United States.

The State Duma approved legislation governing cryptocurrency trading in its second and third readings on July 21. The measure must complete the remaining constitutional steps, including consideration by the Federation Council and presidential approval, before becoming law. Core provisions are scheduled to take effect on September 1, 2026.

The legislation allows qualified and non-qualified investors to buy and sell cryptocurrencies through licensed intermediaries supervised by the Bank of Russia. It does not make Bitcoin or other tokens legal tender. Cryptocurrency payments for domestic goods and services will remain prohibited.

Non-qualified investors will be allowed to purchase selected liquid cryptocurrencies after passing a knowledge test. Their annual purchases will be capped at 300,000 roubles through each intermediary, equivalent to roughly $3,800 at current exchange rates.

Qualified investors will also face testing requirements but will be permitted to trade a wider range of cryptocurrencies without a statutory investment ceiling. Privacy-focused tokens and assets designed to conceal transaction information are expected to remain restricted.

Exchanges, brokers, custodians and other service providers will need regulatory approval. A transition period running until July 1, 2027 will give market participants time to obtain licences and adapt their operations. Unauthorised cryptocurrency businesses could later face penalties comparable to those imposed on illegal banking operations.

Russian residents will still be able to trade through foreign platforms, but transactions must pass through declared overseas bank accounts. Holdings maintained abroad will have to be reported to tax authorities. Transfers of cryptocurrency purchased inside Russia will be permitted through regulated intermediaries.

The framework also supports the use of digital assets in foreign trade, an area Moscow has explored as sanctions restrict access to dollar-based banking channels. Regulators are seeking to expand cross-border settlement options without surrendering control over capital movements or allowing cryptocurrency to compete directly with the rouble.

That approach differs from the market-led model being debated in Washington. Russia is legalising access within tightly controlled boundaries, while US lawmakers are attempting to divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The US House of Representatives passed its version of the Digital Asset Market Clarity Act in 2025. Senate committees have since produced revised texts, including a 616-page consolidated draft released on July 22, but the legislation has not received a final Senate vote.

Supporters say the measure would settle years of uncertainty over whether particular tokens should be treated as securities, commodities or another class of asset. It would also establish registration rules for exchanges and clarify the responsibilities of federal regulators.

Negotiations have been slowed by disputes over consumer safeguards, stablecoin rewards, decentralised finance, public-official ethics and the treatment of tokenised financial products. Banks have warned that interest-like returns offered on stablecoins could pull deposits away from traditional lenders, reducing funds available for household and business credit.

Some Democrats want stronger provisions addressing conflicts of interest involving elected officials and their families. Industry groups, meanwhile, argue that overly restrictive rules could push development and trading activity towards jurisdictions offering clearer legal treatment.

The disagreement has narrowed the congressional timetable. Senate leaders face competing legislative priorities before the August recess, while November’s midterm elections are likely to make bipartisan negotiations harder. Failure to secure a vote this year could force lawmakers to restart parts of the process in the next Congress.

For cryptocurrency prices, the immediate effect of Russia’s law may be more psychological than structural. The annual retail cap limits the amount of new domestic buying, while sanctions and compliance risks could discourage large international exchanges from entering the market.

Licensed access could nevertheless improve local liquidity and reduce the legal uncertainty faced by Russian investors. It may also encourage Moscow Exchange, St Petersburg Exchange and established financial groups to develop regulated cryptocurrency products, custody services and derivatives.

The delayed US bill carries greater importance for global valuations because the country hosts major exchanges, asset managers, stablecoin issuers and institutional investors. A clear division of regulatory authority could lower compliance risks and support new products. Another postponement would preserve uncertainty over enforcement, token classification and access to banking services.