After a wave of regulatory pushbacks against crypto over the last couple of years, industry experts are anticipating a much friendlier 2025, thanks in part to positive regulatory developments. 

“2025 could be a good year for crypto policy,” wrote senior Bloomberg policy analyst Nathan Dean on May 23. “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).”

Dean further explained that aside from crypto exchange-traded fund (ETF) approvals, stablecoin frameworks could also come to fruition by the end of next year. However, the analyst warned that the United States Securities and Exchange Commission still had the power to regulate projects that seek to classify their tokens as commodities instead of securities, though they are rather “nice to have” problems as the industry obtains further clarity under the law. 

Another Bloomberg analyst, Eric Balchunas, also agrees.

“A bipartisan group of House lawmakers has sent Gary Gensler a letter urging the SEC to approve spot Ether ETFs,” Balchunas said, citing a congressional letter. This “offers investors crypto access in a regulated, transparent, safe format.” The analyst then expressed his awe: “It’s pretty surreal and fascinating to see ETFs get sucked into mainstream politics and an election year narrative.”

It’s not just in the U.S. where lawmakers have turned to regulation as opposed to plain enforcement. 

On May 22, the first Bitcoin (BTC) and Ether (ETH) exchange-traded products (ETPs) debuted on the London Stock Exchange following approval by the United Kingdom’s Financial Conduct Authority. Although the ETPs are only available to professional investors for the time being, a spokesperson for CryptoUK, the self-regulatory trade association for the U.K. crypto-asset industry, said that the approval was a “step in the right direction” and adds to “the government’s aspiration to secure Britain as a global crypto-asset hub.”

The following day, Cointelegraph reported that Hong Kong’s Securities and Futures Commission is currently considering allowing its spot Ether ETF issuers to stake custodied ETH, earning yields of 3.6% per annum for validating transactions on the blockchain and delivering them to shareholders. However, no concrete plans have materialized for a decision. 

A spot Ether ETF decision by U.S. regulators is anticipated the same day, with the price of major currencies rallying in anticipation of approval.

Related: SEC Ethereum ETF discussions underway, S-1 approval expected in hours