The year 2025 is shaping up to be a turning point for crypto businesses. With new federal legislation, the Bitcoin Reserve and the GENIUS Act stable coin framework, the U.S. government is signaling both stronger oversight and a clearer regulatory pathway for entrepreneurs. For business owners looking to launch or scale a crypto venture, these developments create opportunities but also significant compliance and tax obligations.
The Bitcoin Reserve: What Entrepreneurs Should Know
The Bitcoin Reserve represents a dramatic shift in how the U.S. government engages with cryptocurrency. The Reserve envisions government-managed Bitcoin holdings, with the dual goals of stabilizing price volatility and legitimizing Bitcoin as a reserve asset alongside traditional foreign currency reserves. With this, it potentially opens the door for an influx of startup businesses, looking to capitalize on the stability and standardization. The use of crypto may even extend amongst established fintech companies, payment processors, and institutional investors due to its growing legitimacy. However, a federal reserve of Bitcoin does not eliminate volatility. Entrepreneurs relying on Bitcoin transactions must still prepare for rapid price swings. In addition, new obligations could arise if dealing with Bitcoin triggers enhanced compliance, particularly around anti-money laundering (AML) and consumer protection rules.
The GENIUS Act Stablecoin Framework
The GENIUS Act (short for Guaranteed Electronic Notes Issued Under Stability) establishes the first comprehensive federal framework for stablecoins, cryptocurrencies pegged to the value of assets such as the U.S. dollar. The law is designed to build trust and transparency by requiring stablecoin issuers to, register and license at the state and federal level, maintain 1:1 reserves in approved, highly liquid assets, and submit to regular audits and compliance reviews, ensuring consumer funds are safeguarded.
For entrepreneurs, this framework is a double-edged sword. On the one hand, stricter regulation may increase confidence in stablecoins, expanding their use in e-commerce, global remittances, and financial services. On the other hand, compliance obligations are heavy, and noncompliance could carry steep penalties.
Business Formation and Compliance Considerations
Launching a crypto business requires more than just a strong technical model, it requires choosing the right legal and tax structure and ensuring compliance from day one.
Most crypto startups choose between LLCs and C-Corporations. LLCs may provide flexibility and pass-through taxation, while C-Corps are often preferred by venture capital investors. Another factor most entrepreneurs consider are which states to establish business in; within the US, some states offer more flexible statues in cryptocurrency management. Additionally, depending on the business model, you may need licensing and registration. A few options include:
- FinCEN registration as a Money Services Business (MSB).
- State money-transmitter licenses (MTLs) in one or more jurisdictions.
- SEC or CFTC oversight if tokens are classified as securities or commodities.
Tax Implications for Crypto Startups
Crypto taxation remains complex, and the IRS continues to expand its enforcement. Key issues for 2025 include:
- Business Taxation. The IRS treats cryptocurrency as property, meaning every transaction can trigger a taxable gain or loss. Stablecoins may simplify some accounting, but do not eliminate reporting obligations.
- Employee Compensation. If employees are paid in crypto, the company must withhold payroll taxes and report fair market value at the time of payment. Employers should document valuations carefully to avoid disputes.
- Founders and Investors. Token-based fundraising (such as Initial Coin Offerings or SAFTs) may create immediate tax obligations. Entrepreneurs must weigh whether equity financing or token issuance is more tax-efficient.
- Cross-Border Operations. Crypto businesses often operate globally, creating exposure to double taxation and international reporting requirements. Entrepreneurs should consult tax counsel early when expanding abroad.
Risk Management and Strategic Planning
Even with new clarity under the Bitcoin Reserve and GENIUS Act, legal risks remain high in the crypto space. Entrepreneurs should be aware of:
- Regulatory Uncertainty. Federal rules may conflict with state laws, and agencies such as the SEC and CFTC continue to assert overlapping jurisdiction.
- Enforcement Risks. Crypto startups remain a target for regulatory crackdowns, especially around investor disclosures and consumer protection.
- Market Risks. Stablecoins may be more predictable than other tokens, but the collapse of projects like TerraUSD shows that even pegged currencies can fail.
Navigating these risks include practical strategies to build compliance and tax planning into the business model from the beginning, diversify revenue streams and avoiding dependence on a single platform or token, and monitoring regulatory updates and adjusting policies quickly.
Conclusion
The launch of the Bitcoin Reserve and the GENIUS Act stablecoin framework in 2025 mark a new chapter in U.S. crypto regulation. While these initiatives provide greater legitimacy and a clearer roadmap for stablecoin businesses, they also create more oversight, reporting obligations, and potential liability.
For entrepreneurs, the path forward is clear: choose the right entity structure, implement strong compliance, and prepare for complex tax issues. Those who invest in legal and regulatory planning today will be best positioned to thrive in the rapidly evolving crypto marketplace.
If you’re considering starting a crypto business in 2025, consult with a business and tax attorney to ensure your company is structured for success and compliance.
Contribution to this blog by Anastasia Pedraza.