Anticipating a more favorable regulatory environment in 2025, experts in the crypto industry are optimistic about positive developments in the coming years. Bloomberg policy analyst Nathan Dean expressed his belief that 2025 could be a good year for crypto policy, considering the potential approval of Bitcoin and Ethereum exchange-traded funds (ETFs) and the support from House Democrats on the FIT Act. Dean also noted that stablecoin frameworks could become a reality by the end of next year. However, he cautioned that the US Securities and Exchange Commission still has the authority to regulate projects that classify their tokens as commodities instead of securities, although this is seen as a relatively minor issue as the industry gains more clarity under the law.
Eric Balchunas, another Bloomberg analyst, concurred with Dean’s views, pointing to a bipartisan group of House lawmakers urging the SEC to approve spot Ether ETFs. Balchunas found it surreal and fascinating to witness ETFs being intertwined with mainstream politics and an election year narrative.
Regulatory efforts are not limited to the United States. On May 22, the London Stock Exchange saw the debut of the first Bitcoin and Ether exchange-traded products (ETPs) following approval from the UK’s Financial Conduct Authority. While these ETPs are currently accessible only to professional investors, CryptoUK, the self-regulatory trade association for the UK crypto-asset industry, viewed the approval as a step in the right direction towards the government’s goal of establishing Britain as a global crypto-asset hub.
In Hong Kong, the Securities and Futures Commission is currently evaluating the possibility of allowing spot Ether ETF issuers to stake custodied ETH and earn annual yields of 3.6% by validating transactions on the blockchain. However, no concrete plans have been announced yet.
The crypto community eagerly awaits the decision on spot Ether ETFs by US regulators, and the anticipation of approval has already caused a rally in the prices of major currencies.
Related: Discussions about an Ethereum ETF by the SEC are underway, with an expected approval of the S-1 in a matter of hours.