Coinbase believes tokenization, DeFi will be key themes in 2025 amid pro-crypto policies
Author: Content Editor
Coinbase predicts that 2025 will be a crucial year for US crypto regulation, with the potential for pro-crypto legislation and a shift towards integrating crypto with traditional finance. This follows initiatives such as Senator Cynthia Lummis' proposal for a Strategic Bitcoin Reserve and Pennsylvania's consideration of a Bitcoin Strategic Reserve Act. Internationally, jurisdictions like the EU and financial hubs like the UAE, Hong Kong, and Singapore are also developing regulatory frameworks for crypto. The tokenization of real-world assets is growing rapidly, with the market reaching $13.5 billion by December 2024, and projections suggesting it could expand to $2 trillion to $30 trillion in the next five years. Decentralized finance (DeFi) is transitioning to a more mature and transparent phase, driven by the growing synergy between off-chain and on-chain capital markets. The US regulatory shift could enable stablecoin governance frameworks and institutional access to DeFi. Stablecoins and crypto-based exchange-traded funds (ETFs) are experiencing significant growth, with stablecoin market capitalization reaching $193 billion and the potential to reach $3 trillion by 2030. Spot Bitcoin and Ethereum ETFs have attracted institutional interest and innovations in their creation and redemption processes could improve efficiency and reduce costs.