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IOTA Responds to U.S. Crypto Regulation Drafts: Advocates for Clear Utility Token Standards

source-logo  crypto-news-flash.com 24 September 2025 12:00, UTC
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  • As IOTA is shaping policy, not just reacting, which strengthens its position as a leader in building balanced crypto regulations.
  • Regulatory clarity in the U.S. could serve as a major catalyst for IOTA’s price, with the potentially unlocking institutional inflows and accelerating adoption.

As the IOTA Foundation recently submitted formal feedback to two major U.S. draft laws: the Senate Banking Committee’s Responsible Financial Innovation Act (RFIA) and the CFTC’s initiative on listing spot crypto contracts. Nonetheless, IOTA had already expanded its global footprint with strategic government talks in Malaysia, according to a previous report by Crypto News Flash (CNF).

For more context, according to IOTA’s official announcement on X, they recently gave feedback to two major U.S. digital asset law drafts: first, the Senate Banking Committee’s Responsible Financial Innovation Act (RFIA), and second, the CFTC initiative on listing spot crypto asset contracts. Their concluding statement emphasized:

The United States is beginning to build a more coherent framework for digital assets. The GENIUS Act is a milestone, while broader reforms like the CLARITY Act remain to be seen. What’s most encouraging is the open and collaborative process: by inviting feedback from industry, nonprofits, and innovators, U.S. policymakers are signaling that they want to get this right.

In general, IOTA isn’t just responding — it is co-authoring the rules. This positions it as a thought leader, bridging academia, industry, and government for sensible frameworks that support sustainable innovation, which so far is the most essential point.

Market Implications as a Tailwind for IOTA’s Price

In a another recent update by CNF on IOTA’s enhancement of interoperability with the native BTC bridge, the IOTA token price was trading up 4.32%, with daily trading volume surging 40% to $220 million at that time.

As regulatory clarity emerges, the implications for IOTA’s market price (MIOTA) are profoundly bullish. Clear utility token standards would affirm MIOTA’s non-security status, easing exchange listings and institutional inflows, which are likely to be key drivers for altcoin rallies.

Historically, positive U.S. policy signals, for an example, ETF approvals, have spiked crypto prices 20–50%. IOTA, with its real-world anchors in trade and IoT, could amplify this through adoption multipliers.

To this end, our analysts project 2–3x growth by mid-2026 if RFIA passes, driven by reduced uncertainty and DeFi/RWA expansion. Needless to say, risks may remain, as delays or SEC pushback could cap gains. But IOTA’s advocacy signals resilience, potentially turning regulatory headwinds into sustained price appreciation.

As of now, IOTA is trading at $0.1720, with an increase of 0.23% in the past day and however after a decrease of 8.47% in the past week. See IOTA price chart below.

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