Another year has passed and cryptocurrency is once again at a critical crossroads. After surviving comprehensive regulation crusade As we navigate the last remnants of the last bear market in the United States, the digital asset industry is once again on the rise. By all accounts, 2025 looks set to be the best year in cryptocurrency history.
But exactly how the industry chooses to navigate this moment of opportunity is far from set in stone. Regulatory movements, technology updates, and market trends can still cause problems in thousands of ways.
Don’t worry, readers. decryption We are here to predict the unpredictable. Here are some of the key questions experts predict will define the coming year, and what their answers could mean for you.
First: How much political capital is Donald Trump willing to spend on cryptocurrencies?
The cryptocurrency market soared following the president-elect’s victory in November. I think it’s pretty obvious The persistent days of the American government attacking The key players in the industry are over, and that alone is a huge step forward.
But will the Trump administration be willing to aggressively pursue policies that industry experts say are critical to ensuring the long-term success of cryptocurrencies?
“An end to hostility would be beneficial in itself,” said Kristin Smith, CEO of the Blockchain Association, a prominent cryptocurrency lobbying group. Decrypt. “But we need more than that.”
Trump has done countless things promise As for the industry on the campaign trail, such promises to specific constituencies routinely get lost in the chaos once a president takes office and becomes fraught with competing concerns. All of this will be urgent.
“There will be a lot of priorities throughout the Trump administration,” Smith said. “If you don’t have someone who can run something like this, it’s going to be a problem.”
One positive indicator for Smith that digital asset policy could advance meaningfully in 2025 is that, for the first time in history, the Trump White House will stated A dedicated AI and cryptocurrency emperor. Venture capitalist David Sacks accepted the position in early December.
The White House cryptocurrency advisor will “ensure we get the job done” by coordinating the administration’s digital asset vision across the White House, the administration and Congress, Smith said.
This kind of focus could have a huge and immediate impact on the strength, scope, and impact of a cryptocurrency.
Consider repealing SAB 121, the Securities and Exchange Commission (SEC) rule that prevents U.S. banks from storing cryptocurrency assets. In May, bipartisan majorities in both houses of Congress voted to: invalidate However, shortly thereafter, President Joe Biden exercise the right to veto effort.
If Congress were simply urged to pass the same bill again and Trump signed it into law, that single move could open a whole new chapter for cryptocurrencies in the U.S., Smith argued.
“This opens up a whole new market,” she said.
Despite Bitcoin and Ethereum Spot ETF Currently trading on Wall Street, the majority of American investors and companies are sitting on the sidelines due to a lot of yellow tape and cryptocurrency-related anxiety.
Allow mainstream banks to hold cryptocurrencies themselves and pass basic legislation. market structure bill Smith said that formally legalizing the industry would free up a ton of still-uneasy TradFi capital for the digital asset industry. These basic steps will give “comfort to broader investors and market participants that cryptocurrencies are a safe place, they can come here to invest, and developers can build new businesses here.”
The difference between TradFi dipping its toes into cryptocurrency and jumping headfirst would be enormous. The industry will be able to taste some of the difference in 2025.
Editor: Andrew Hayward
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