Crypto Regulation: Experts Predict a Pivotal 2025

Industry experts are anticipating a much friendlier 2025 for the crypto sector, with Bloomberg policy analyst Nathan Dean believing that 2025 has the potential to be a pivotal year for crypto policy. Dean cites recent approvals of Bitcoin and Ethereum exchange-traded funds (ETFs) and increased support for the Financial Innovation and Technology (FIT) Act as reasons for his optimism.

While I try to be neutral on #cryptoregulations, it feels like this week may be the turning point. #Bitcoin ETF approval, likely soon #Ethereum ETF approval and 71 House Democrats joining in on the FIT Act (not too mention SAB 121).

2025 could be a good year for crypto policy.
— Nathan Dean (@nathandeanDC) May 23, 2024

Overcoming Regulatory Hurdles

Despite the United States Securities and Exchange Commission (SEC) maintaining the power to regulate companies that wish to classify their tokens as commodities rather than securities, Dean remains optimistic about the overall improving regulatory landscape. Bloomberg analyst Eric Balchunas echoes this sentiment, specifically referring to the bipartisan group of House lawmakers who urged SEC Chair Gary Gensler to approve spot Ether ETFs.

A bipartisan group of House lawmakers (incl Majority Whip Tom Emmer and NJ Democrat Josh Gottheimer) have sent Gary Gensler a letter urging the SEC to approve spot Ether ETFs (and 'other' digital assets) bc it offers investors crypto access in regulated transparent safe format pic.twitter.com/YLSJh6n0lF
— Eric Balchunas (@EricBalchunas) May 23, 2024

This positive trend extends beyond the United States. The United Kingdom’s Financial Conduct Authority has recently approved the first Bitcoin and Ether exchange-traded products (ETPs) for professional investors on the London Stock Exchange. Hong Kong’s Securities and Futures Commission is also considering allowing spot Ether ETF issuers to stake custodied ETH, potentially earning yields of 3.6% per annum for validating blockchain transactions.

ETH ETF Approvals and Token Regulations

The SEC’s recent approvals of spot ETH ETFs mark a significant step forward in the debate over whether certain cryptocurrencies should be classified as securities. Industry analysts suggest that the SEC’s approval of these commodity-based trust shares effectively states that they will not pursue Ether as a security. Digital asset lawyer Justin Browder adds that if the SEC approves Ether ETFs’ S-1 applications, it will finally settle the long-standing debate over ETH’s status as a security.

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Some experts believe this development could extend to other projects’ tokens as well. However, they caution that the SEC might still target those involved with staking Ether, as ETH itself may not be labelled security, but staked ETH could be.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.