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Crypto has had an impressive 2024. Bitcoin and Ether ETFs were introduced, bringing institutional money to the market. The industry was not only discussed but hotly contested during the US Presidential election, with the eventual victor Donald Trump establishing himself as the candidate of choice for the crypto market.
That victory has already seen current SEC chair and crypto-sceptic Gary Gensler say he will stand down in January, and this will, in itself, lead to considerable changes in crypto and finance.
The State Of The Crypto Market
Bitcoin reached a new high of more than $100,000, Doge saw a significant price hike, and Solana became the network of choice for new meme coin projects. Interest in the cryptocurrency market has never been higher, and the list of meme coin presale projects is a testament to this fact. While meme coins are minted with no particular purpose in mind other than trading for profit, 2025 could be the year that they become more integrated into decentralized applications (DApps) platforms, which would grant them more use cases.
Elsewhere in 2025, analysts expect Trump to open up the crypto market and make it easier for new projects to get off the ground, especially after seeing the incoming President naming Paul Atkins as his nomination for SEC chair. With new projects come new presales and opportunities for early profits.
Bitcoin Operational Usage
The idea of using Bitcoin as a national strategic reserve was mooted by Trump during the run-up to the recent elections, and has been touted as a means of eradicating the $36 trillion of US national debt. Exactly how this will work hasn’t been outlined yet, but it isn’t just governments that are expected to use Bitcoin in this strategic manner.
Businesses will not only adopt Bitcoin as an alternative asset to protect against inflationary and other economic changes, but some analysts expect major organizations to convert at least 5% of their reserves and cash holdings to Bitcoin.
ETF Implementation
Bitcoin spot ETFs were introduced in January 2024 and were followed by Ether ETF approval in May. Approval came after years of battling with crypto companies on one side and SEC chair Gary Gensler on the other. Gary Gensler has been a vocal critic of cryptocurrency and has long held the position that existing regulations are ample to govern cryptocurrency’s use.
With Gensler resigning his post effective from January, Trump’s nominee Paul Atkins is likely to be installed in the post. Atkins is pro-crypto and as well as expediting new crypto regulations, the appointment will likely see the approval of new ETFs for different cryptos. Current favorites to gain ETF approval are Solana, Ripple, and Cardano. There have been some whispers that Dogecoin could even get its own ETF, although no fund managers have submitted proposals as yet.
Stablecoin Regulation
The issue of stablecoin regulation was being discussed long before Trump won the election, with governments in the UK and the US, as well as some European countries, being especially keen on these coins thanks to their backing by fiat currencies and their lack of volatility.
Stablecoins will likely see improved regulation even before the likes of Bitcoin. And, now that Trump has won the election, the likely timeframe for such regulations has been ramped up. With regulation will come greater investment and use by banks and other financial institutions.
CBDC Introduction
Another area that will see progress, and that will see major institutions adopt blockchain technology, if not cryptocurrencies, is the development of Central Bank Digital Currencies. CBDCs are digital equivalents of traditional currencies. They offer the same low-cost and fast-transaction time benefits as cryptocurrencies but they are backed by governments and central banks.
This means they can offer the security of fiat currencies, make banking easier for unbanked and underbanked citizens, and they will have the capability to interact with cryptocurrencies.
More Cryptocurrency Custody Options
There are multiple ways people and businesses can store cryptocurrency. The simplest, but typically least secure, is to leave coins on exchanges. Hardware wallets offer greater security compared to software wallets, and the safest option is custodial storage. A custodial storage service means that the service retains the private keys to an entity’s crypto holding.
The coins can be bought and sold, as usual, although some services may have terms that mean users have to wait a few days to gain access to their assets. With more businesses and even governments likely to hold crypto balances, these organizations will be looking for secure storage options. As such, we can expect to see more services like Coinbase’s custodial services, and more banks will start to offer the service.
Faster Payments
Certain cryptocurrencies like Ripple and Cardano were set up to act as bridges between traditional finance and crypto. Both have been described as the SWIFT of crypto, and their relationships with some banks are part of the reason that these coins look two of the most likely to get their exchange-traded funds.
Through these initiatives, as well as the introduction of CBDCs and the improved regulation of stablecoins, we are likely to see faster payments and money transfers. And not only in the cryptocurrency industry but using traditional payment methods, too.
Greater Adoption Of ReFi
One criticism regularly, and justifiably, leveled at cryptocurrencies like Bitcoin is they are highly energy intensive. Bitcoin mining requires a lot of processor power which, in turn, means the use of a lot of electricity. Some mining companies have gotten around this by setting up in areas with a lot of renewable energy, or by establishing their own renewable energy sources, but the problem does remain.
Regenerative Finance (ReFi) is a type of finance that aims to have the opposite effect, and it is likely to become more popular. Businesses wanting to invest in cryptocurrency but not sacrifice their environmental credentials to do so will be able to invest in cryptos that invest in environmental, social, and economic projects that benefit others.
Conclusion
Cryptocurrency has had an eventful year, and 2025 looks set to continue on the same path. With the new Presidency and a new SEC chairman taking their place in January, the finance industry won’t have to wait long before they start to see the changes, either.
New innovations will make payments faster while seeing cryptocurrency and blockchain integrate with fiat currencies and traditional payment systems.
