Anticipated Crypto Regulatory Developments Could Make 2025 a Positive Year
With a series of regulatory challenges faced by the crypto industry in recent years, experts in the field are now looking forward to a more favorable 2025, thanks to positive developments in regulations.
In a recent article, senior Bloomberg policy analyst Nathan Dean expressed his optimism, stating, “2025 could be a good year for crypto policy.” He highlighted potential turning points such as the approval of Bitcoin ETFs and Ethereum ETFs, as well as the support of 71 House Democrats for the FIT Act and SAB 121. Dean also mentioned the possibility of stablecoin frameworks becoming a reality by the end of next year. However, he cautioned that the United States Securities and Exchange Commission still retains the power to regulate projects that classify their tokens as commodities instead of securities. Nevertheless, he viewed these as relatively minor issues as the industry gains more clarity under the law.
Eric Balchunas, another Bloomberg analyst, echoed Dean’s sentiments. He referred to a bipartisan group of House lawmakers urging SEC Chairman Gary Gensler to approve spot Ether ETFs in a letter, stating that this would offer investors regulated and transparent access to cryptocurrencies. Balchunas found it fascinating to witness ETFs becoming entangled in mainstream politics and an election year narrative.
Regulatory developments are not limited to the United States. On May 22, the London Stock Exchange approved the debut of the first Bitcoin and Ether exchange-traded products (ETPs) following approval from the United Kingdom’s Financial Conduct Authority. Although these ETPs are currently only available to professional investors, CryptoUK, the self-regulatory trade association for the UK crypto-asset industry, sees this as a step in the right direction towards establishing Britain as a global crypto-asset hub.
Similarly, the Hong Kong Securities and Futures Commission is currently considering allowing its spot Ether ETF issuers to stake custodied ETH, earning yields of 3.6% per annum for validating transactions on the blockchain. However, no concrete plans have been made yet.
The much-anticipated decision on a spot Ether ETF by US regulators is expected to be announced soon, and the market has already shown signs of anticipation with major currencies rallying in response.
Overall, these regulatory developments offer hope for a more positive and regulated crypto landscape in the future.