- Major banks piloting tokenized assets set to launch market-ready solutions in 2025.
- Trump’s regulatory changes could ease crypto burdens, boosting market stability.
- Tech leaders like Andreessen are influencing crypto policy for a favorable future.
In the near future, the US cryptocurrency landscape may experience significant changes. A growing number of major global banks are piloting tokenized asset projects, setting the stage for market-ready offerings in 2025.
As these institutions await clarity from the US government, there’s optimism that the regulatory fog surrounding crypto will clear soon. This clarity could unleash a wave of innovation, particularly if large banks are permitted to custody cryptocurrencies, further integrating digital assets into traditional financial markets. Such a development could have far-reaching implications, including increasing liquidity and reducing volatility in the crypto space.
Banks Leading the Charge in Tokenized Assets
Fifteen of the 25 largest banks worldwide have already initiated tokenized asset projects. This widespread interest indicates a growing acceptance of blockchain-based financial products. Consequently, the stage is set for these banks to introduce market-ready solutions by 2025, assuming the US government provides regulatory clarity.
The ability for these banks to handle crypto assets will bring significant stability to the market. This increased liquidity, in turn, is expected to ease volatility, which has long been a challenge in the cryptocurrency market. As these institutions gain approval to engage with crypto assets, their involvement will offer new opportunities for both institutional and retail investors.
Trump’s Legislative Push and Crypto’s Future
A major shift in US cryptocurrency regulation could come from the Trump administration. Behind the scenes, influential tech leaders, including those close to the former president, are working on a legislative strategy to address key issues in the digital asset space.
Notably, Trump’s first day in office might see executive orders aimed at easing some of the regulatory burdens currently faced by crypto businesses. This includes the controversial crypto accounting policy that forces banks to classify digital assets as liabilities on their balance sheets. Additionally, discussions are underway to tackle the issue of “de-banking” — the practice of excluding crypto-related businesses from traditional financial services.
Once large banks can start custodying crypto they will be able to do anything
— Frank Chaparro (@fintechfrank) January 13, 2025
Credit = more liquidity.
Major major tailwind for crypto market structure and tempering volatility
Soon https://t.co/EyV5BFtHpD
The Role of Tech Leaders in Shaping Crypto Policy
Among the tech leaders influencing this shift is Marc Andreessen, co-founder of the venture capital firm Andreessen Horowitz. Andreessen’s influence within the Trump administration is growing, particularly in relation to technology policy.
Since feeling sidelined under President Biden, Andreessen has been instrumental in recruiting candidates for positions in the incoming administration. His efforts extend beyond just crypto policy, with involvement in defense and intelligence appointments as well.
The new political alliance between Trump and Andreessen could significantly impact how cryptocurrency is regulated, offering the industry a more favorable environment for growth and innovation.