4 LEGISLATIVE PREDICTIONS FOR CRYPTO IN 2023

Last updated: June 19, 2025, 20:55 | Written by: Elizabeth Rossiello

4 Legislative Predictions For Crypto In 2023
4 Legislative Predictions For Crypto In 2023

Predicting the future is a tricky business, especially in the volatile world of cryptocurrency. Crypto Converter; Trending Topics Octo. 2 4 AI has killed the industry : EasyTranslate boss on adapting to changeIf my crypto portfolio's performance this year were any indication, you’d be wise to take my market predictions with a grain of salt!However, understanding the legislative landscape is crucial for navigating the crypto sphere. 4 legislative predictions for crypto in 2025. PANews | 5:02 We may not see much from Congress, but there is a chance the SEC will continue making cryptoInstead of attempting to forecast market trends, let's delve into the realm of regulatory predictions for the crypto industry, focusing specifically on what we might expect to see in 2025. 16K subscribers in the CryptoCurrencyClassic community. The unofficial Wild Wild West of r/CryptoCurrency. CryptoCurrency Memes, News andGiven the impact of U.S. economic and political power globally, understanding how legislation is developed stateside provides valuable insights.We'll examine the current regulatory approaches, consider the key legislative proposals on the table, and explore some of the critical issues that still need to be addressed. We may not see much from Congress, but there is a chance the SEC will continue making crypto policy via 4 legislative predictions for crypto in 2025 - XBT.Market Market Cap: $3,379,420,297,228.69While sweeping changes may be unlikely, smaller legislative fixes stand a better chance of being incorporated into ""must-pass"" bills.Let’s dive in and explore four key regulatory developments we can anticipate in the world of crypto by 2025.

1. So, I will stick to what I know and share some regulatory predictions for the crypto industry. Few legislative changes. A few minor victories will logroll small legislative fixes into must pass bills like the defense authorization or omnibus spending bills. The top candidate would be a de minimis exemption for smaller crypto transactionsSlow and Steady Wins the Race: Incremental Legislative Changes

Don't expect a seismic shift in crypto legislation overnight. The piece discusses the practical significance of four of the leading legislative proposals for cryptocurrency regulation and flags two key topics that are inadequately addressed by those proposals: questions related to crypto assets classification as a security and their custody.The U.S. legislative process is often characterized by its deliberate pace and the need for consensus-building. In the second half of 2025, Bitcoin will rise to $30K. Lower inflation, easing energy concerns, a possible truce in Ukraine, and a turnaround in M2 supply will power the start of a new bull market. Financial institutions will tokenize more than $10B in off-chain assets.Therefore, the most likely scenario is a series of incremental changes, rather than a comprehensive overhaul of crypto regulations.

The De Minimis Exemption: A Small Victory

One of the more promising developments is the potential for a de minimis tax exemption for small crypto transactions. The U.S. has a chance to compete with Europe on crypto development if it can better rationalize rules for centralized crypto entities while leaving true DeFi alone that are workable and ignore voices such as Democratic Senator Elizabeth Warren, who would use KYC rules to effectively destroy crypto.This exemption would simplify tax reporting for casual crypto users and reduce the burden on the IRS. 2025 is the year that crypto users wake up to the need for privacy. A Cambrian explosion is coming in crypto privacy as the government s surveillance efforts pick up steam. Crypto privacy in the United States is under sustained assault.Imagine being able to use crypto to pay for your morning coffee without needing to meticulously track the capital gains or losses for such a minor transaction.This would be a welcomed change. We may not see much from Congress, but there is a chance the SEC will continue making crypto policy via litigation. If you saw the returns in my crypto portfolio this year, you would take a pass on my predictions for the direction of the cryptocurrency market.Small legislative fixes will likely be attached to important spending bills.

This type of provision has a good chance of being included in larger ""must-pass"" bills, such as the defense authorization or omnibus spending bills.Think of it as a ""logrolling"" strategy – small, non-controversial measures tacked onto legislation that is guaranteed to pass.

Addressing the Classification Conundrum

One of the most pressing issues facing the crypto industry is the lack of clarity regarding the classification of crypto assets. BTCUSD Bitcoin 4 legislative predictions for crypto in 2025. We may not see much from Congress, but there is a chance the SEC will continue making crypto policy via litigation.Are they securities, commodities, or something else entirely?This ambiguity creates uncertainty for businesses and investors alike.

Legislative proposals need to address this question head-on. The U.S. has a chance to compete with Europe on crypto development if it can better rationalize rules for centralized crypto entities while leaving true DeFi alone that are workable andClear definitions are essential for determining which regulatory frameworks apply to different types of crypto assets.For example, should stablecoins be treated differently than utility tokens? 4 legislative predictions for crypto in 2025 Copy Link. Cointelegraph Subscribe. Collect. Share. WeChat. Share With Friends Or Circle Of Friends.A well-defined classification system would provide a much-needed foundation for regulatory compliance.

2. 4 legislative predictions for crypto in 2025 - Coin Surges Coin SurgesSEC's Litigation-Led Regulation: Policy Through Enforcement

Given the slow pace of legislative action, the Securities and Exchange Commission (SEC) is likely to continue shaping crypto policy through litigation. LEGISLATIVE CRYPTO FUTURE PREDICTIONS IN 2025.JCC tidak melihat banyak berita dari Kongres,tetapi SEC mungkin akan terus membentuk kebijakan crypto melaluiThis approach involves bringing enforcement actions against companies that the SEC believes are violating existing securities laws. 4 legislative predictions for crypto in 2025 If you saw the returns in my crypto portfolio this year, you would take a pass on my predictions.This ""regulation by enforcement"" approach can create uncertainty and stifle innovation. Let's take a look at how legislative regulation is done in the U.S. to make predictions for the future given the impact of U.S. economic and political power around the world. Recent changes in U.S. law. The main development was the de minimis tax exemption for small crypto transactions.SEC litigation efforts are not always welcomed by the crypto community, as they may fear this will stifle innovation and the growth of the digital asset space.

The Case-by-Case Approach

The SEC's strategy involves a case-by-case approach, targeting specific companies and practices that it deems problematic. 2025 is the year that crypto users wake up to the need for privacy Between the United States and European Union, both may lose 4 legislative predictions for crypto in 2025While this approach can provide some clarity on specific issues, it can also leave the broader industry in a state of uncertainty.

For example, the SEC may bring an enforcement action against a company that offers unregistered securities.While this action may clarify the SEC's position on that particular type of offering, it may not provide clear guidance for other companies operating in similar areas.

The Impact on Innovation

The SEC's litigation-led approach has raised concerns about its potential impact on innovation. 4 legislative predictions for crypto in 2025. Open in AppSome argue that the uncertainty created by this approach may discourage companies from developing and launching new crypto products and services.It can be argued that companies do not understand the regulatory standards.

However, the SEC argues that its enforcement actions are necessary to protect investors and maintain the integrity of the markets.They will argue that they are protecting everyday people from scams and unregulated offerings.

3.The Rise of Crypto Privacy: A Response to Surveillance

As government surveillance efforts increase, the need for crypto privacy will become more apparent. We may not see much from Congress, but there is a chance the SEC will continue making crypto policy via litigation. 4 legislative predictions for crypto in 2025 - PANews 风险提示:央行等十部委发布《关于进一步防范和处置虚拟货币交易炒作风险的通知》, 请读者提高风险意识,理性看待区块链。This will lead to a surge in the development and adoption of privacy-enhancing technologies (PETs) within the crypto ecosystem.Users will increasingly demand tools that allow them to transact anonymously or with greater control over their personal data.

The Cambrian Explosion of Privacy

Expect to see a ""Cambrian explosion"" of new privacy-focused crypto projects and technologies. If you saw the returns in my crypto portfolio this year, you would take a pass on my predictions for the direction of the cryptocurrency market. So, I will sticThese may include advanced mixing services, zero-knowledge proofs, and decentralized identity solutions.The technical innovation will continue to improve privacy solutions within crypto.

The Battle for Privacy

The push for crypto privacy will likely face significant resistance from governments and regulators.Many view anonymity as a facilitator of illicit activities, such as money laundering and terrorism financing.This is where regulation attempts to control crypto and the privacy it offers could lead to conflict.

This will create a tension between the desire for privacy and the need for regulatory compliance.The challenge will be to find solutions that balance these competing interests.Governments may attempt to restrict the use of privacy-enhancing technologies, while privacy advocates will push for greater protections for user anonymity.

Example:

  • Imagine a decentralized exchange (DEX) implementing zero-knowledge proofs to allow users to trade without revealing their identities or transaction histories.This would provide a significant level of privacy, but it would also make it more difficult for regulators to track illicit activity.

4.The U.S. vs.Europe: A Regulatory Race

The United States and Europe are currently engaged in a regulatory race to attract crypto businesses and investment.The EU's Markets in Crypto-Assets (MiCA) regulation provides a comprehensive framework for regulating crypto assets, while the U.S. approach is more fragmented and uncertain.One area where the US lags is having defined legislation to operate.

Rationalizing Rules for Centralized Entities

The U.S. has an opportunity to compete with Europe by rationalizing its rules for centralized crypto entities, such as exchanges and custodians.This would involve creating a clear and consistent regulatory framework that provides businesses with the certainty they need to operate and innovate.Many crypto businesses want to operate in the U.S., however regulatory uncertainty makes this difficult.

One key aspect of this is to provide clarity on which crypto assets are considered securities and which are not.This would allow businesses to comply with the appropriate regulations and avoid enforcement actions.

Leaving DeFi Alone

It is crucial that the U.S. avoids overregulating the decentralized finance (DeFi) space.DeFi protocols are inherently different from centralized entities, and they require a different regulatory approach.Trying to apply traditional regulatory frameworks to DeFi could stifle innovation and drive developers and users to other jurisdictions.Regulation and enforcement will look different for a DeFi platform compared to a centralized exchange.

The U.S. should focus on fostering innovation in the DeFi space while also addressing potential risks, such as fraud and market manipulation.This could involve developing new regulatory tools and approaches that are tailored to the unique characteristics of DeFi.

Avoiding the influence of voices like Democratic Senator Elizabeth Warren, who advocates for KYC rules that would effectively destroy crypto, is critical for fostering a thriving crypto ecosystem in the U.S.Senator Warren has publicly stated her concerns around crypto.

Key Considerations and Lingering Questions

Beyond these four predictions, several key considerations and unanswered questions will shape the future of crypto regulation.

  • Custody: Who is responsible for safeguarding crypto assets?What are the appropriate standards for custodians?
  • Interoperability: How can different crypto networks and protocols be made to work together seamlessly?
  • International Coordination: How can countries coordinate their regulatory approaches to avoid regulatory arbitrage?

Conclusion: Navigating the Crypto Regulation Landscape in 2025

While predicting the future with certainty is impossible, these four legislative predictions for crypto in 2025 offer a glimpse into the likely trajectory of regulation.Expect incremental legislative changes, continued SEC enforcement, a growing emphasis on privacy, and a regulatory race between the U.S. and Europe.Staying informed about these developments is crucial for anyone involved in the crypto space, whether you are an investor, a developer, or a business owner.

Here are the key takeaways:

  • Expect incremental legislative changes, focusing on issues like the de minimis tax exemption.
  • The SEC will likely continue to shape crypto policy through litigation.
  • Crypto privacy will become increasingly important as government surveillance increases.
  • The U.S. and Europe are in a regulatory race to attract crypto businesses and investment.

By understanding these trends, you can better navigate the evolving regulatory landscape and make informed decisions about your involvement in the exciting world of cryptocurrency.Consider consulting with legal and financial professionals to get personalized advice.

Elizabeth Rossiello can be reached at [email protected].

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