Crypto's Regulatory Tailwinds Fail to Lift Prices in Uneven 2025

The crypto industry entered 2025 with expectations that a more constructive political and regulatory backdrop could support a renewed phase of growth, following President Donald Trump's outreach to the sector and deeper engagement from major financial institutions. Early in the year, that optimism appeared justified as digital-asset prices rose, companies accelerated IPO plans, and several high-profile legal actions were dropped or resolved. Industry participants pointed to a perception shift around crypto's legitimacy and long-term role in finance, even as market performance failed to fully reflect the improving sentiment.Performance across the sector ultimately diverged. Bitcoin was down roughly 6% through mid-December, with many other tokens declining further, creating pressure on prominent founders and executives. At the same time, businesses tied to stablecoins and crypto infrastructure fared better than token-heavy models. Circle's public listing lifted investor enthusiasm around USDC, while Tether expanded USDT circulation, paid out more than $10 billion in dividends and explored a fundraising that could imply a valuation as high as $500 billion. Galaxy Digital Inc. also benefited from the rise of corporate crypto treasury firms, generating third-quarter gross revenue of $28.4 billion, more than 200% higher than a year earlier, even as its founder cautioned that newer entrants could face funding constraints.Other major players saw more muted outcomes. Coinbase expanded into stock trading, prediction markets and tokenized assets and joined the S&P 500 Index, yet its shares traded close to where they began the year. Strategy continued accumulating Bitcoin but lagged as competition compressed its valuation premium. Binance's Changpeng Zhao regained influence following a presidential pardon and new commercial ties linked to World Liberty Financial, though his net worth edged lower. Meanwhile, Gemini's IPO exposed scale challenges relative to larger rivals, with shares down about 60% since September. Taken together, 2025 suggested that regulatory relief and political tailwinds could be meaningful for crypto's long-term positioning, even as translating those developments into sustained investor returns remains uneven.