Crypto industry experts are optimistic about the regulatory landscape in 2025, expecting positive developments that will benefit the sector. Bloomberg policy analyst Nathan Dean believes that this year could be a turning point for crypto policy, citing the potential approval of Bitcoin and Ethereum exchange-traded funds (ETFs) and the support of House Democrats for the FIT Act. Dean also mentions the possibility of stablecoin frameworks coming into effect by the end of next year. Despite the progress, Dean notes that the US Securities and Exchange Commission still has the authority to regulate projects that classify their tokens as commodities instead of securities. However, he sees this as a minor issue as the industry gains more clarity under the law.
Another Bloomberg analyst, Eric Balchunas, agrees with the positive sentiment, pointing out that a bipartisan group of House lawmakers has written a letter to SEC Chair Gary Gensler urging the approval of spot Ether ETFs. Balchunas describes this as an opportunity for investors to access cryptocurrencies in a regulated and transparent manner. He finds it fascinating to see ETFs becoming part of mainstream politics and an election year narrative.
Regulatory developments are not limited to the US. On May 22, the London Stock Exchange approved the first Bitcoin and Ether exchange-traded products (ETPs) in the UK. Although currently limited to professional investors, this move is seen as a step in the right direction by CryptoUK, the self-regulatory trade association for the UK crypto-asset industry. The approval aligns with the UK government’s goal of establishing the country as a global hub for crypto-assets.
In Hong Kong, the Securities and Futures Commission is considering allowing spot Ether ETF issuers to stake custodied ETH, earning annual yields of 3.6% for validating transactions on the blockchain. However, no concrete plans have been announced yet.
The anticipated decision on a spot Ether ETF by US regulators has led to a rally in major cryptocurrencies, as market participants eagerly await approval.
Overall, the crypto industry is optimistic about the future of regulation, with various countries taking steps to provide a regulated environment for investors and promote the growth of the sector.