Cryptocurrency regulations have evolved over time as governments and financial institutions around the world have become more familiar with the technology and potential applications. Initial regulations focused on prevention of money-laundering and other illegal activities, but now some countries are developing regulations to encourage innovation and protect investors. Many nations are implementing licensing frameworks that regulate cryptocurrencies and related services, while the European Union has adopted a regulatory framework for financial instruments. Additionally, several international bodies, such as the G7, are setting standards to promote consumer protection and financial stability. In the United States, the SEC is increasingly taking a proactive role in monitoring cryptocurrency activities and issuing guidance on how to classify certain digital assets.