- Cryptocurrencies 2025: The price suffered the biggest drop in nearly three years
- But in the long term, a turning point in the industry is anticipated, driven by clearer regulation in the United States
- Industry leaders highlighted the impact of decisions by this new administration on the adoption and regulation of digital assets
- Mass adoption: Experts at Davos emphasized that regulatory clarity will be key for cryptocurrency growth in 2025.
- Jennifer Johnson (Franklin Templeton) and Denelle Dixon (Stellar) stressed the importance of flexible legal frameworks that allow innovation; Armstrong compared the evolution of cryptocurrencies to the mass adoption of the internet
The debate on the future of cryptocurrencies in 2025 has taken an unexpected turn with the recent launch of the cryptocurrency $TRUMP, just days before the new U.S. president assumed office. During the 2025 Annual Meeting of the World Economic Forum in Davos, the session Crypto at a Crossroads brought together experts to discuss how this action could influence global regulation and the adoption of digital assets.
The scenario is complex: this week, the Trump administration’s executive order to impose tariffs on key U.S. trading partners led to a massive sell-off of cryptocurrencies and a drop in the price of all assets.
But beyond the current situation, let’s analyze the long term.
The ‘Trump Effect’ and the Boost to the Cryptocurrency Industry in 2025
The launch of $TRUMP not only symbolizes the U.S. administration’s support for cryptocurrencies, but it could also represent a turning point for the global financial ecosystem. Brian Armstrong, CEO of Coinbase, highlighted the significance of this move.
‘For the leader of the country with the world’s largest GDP to unequivocally declare that he wants to be the first crypto president, that he wants this industry to develop in the U.S., and that he will direct all government agencies to establish clear rules that allow innovation, is unprecedented,’ he stated.
Anthony Scaramucci, founder of SkyBridge Capital and former communications director at the White House, also emphasized the impact of the new administration on the direction of cryptocurrencies in 2025.
‘When I saw Trump give a speech at a Bitcoin conference in 2024, it became very, very clear that if he won the election, the industry would change,’ he said.
He also previewed that Republicans aim to approve cryptocurrency regulations before February 2026.
Regulation: challenges and opportunities
One of the main points of discussion was the need for clear and effective regulation. Lesetja Kganyago, president of the South African Reserve Bank, stressed that proper regulation must be ‘clear, simple, so that everyone can understand it.’ However, he acknowledged that many regulators still face challenges in precisely defining which aspects need to be regulated.
Jennifer Johnson, CEO of Franklin Templeton, referred to the importance of adapting financial regulations to technological evolution.
‘The securities rules in the U.S. emerged as a reaction to the depression and the market crash in 1929. Their purpose was consumer protection. [Today, regulators must] recognize that technology advances so rapidly that they have to adapt regulation to keep pace with technology,’ she explained.
Denelle Dixon, CEO of the Stellar Development Foundation, warned that cryptocurrencies are still ‘widely misunderstood.’ In her intervention at Davos, she explained,
‘The goal of this technology is to enable assets to move extremely quickly, from person to person, without borders, anywhere in the world,’ she detailed.
A driver of change in the financial system
The panelists agreed that cryptocurrency adoption is still in its early stages, but its impact could be transformative. Armstrong compared the growth of digital assets to the adoption of the Internet and projected that ‘it could reach 50% of the world in 10 or 15 years.’
Johnson, for her part, called for not underestimating the magnitude of the industry:
‘I am always surprised by how big the cryptocurrency sector is. There is blindness towards the enormous growth of this community,’ she pointed out.
However, she acknowledged that traditional financial institutions and regulators still struggle to understand the potential of this technology.
Kganyago presented the South African Reserve Bank’s progress in implementing blockchain for payments, which has reduced transaction settlement times from one day to 46 minutes. In this regard, Johnson emphasized that ‘what this technology does is provide a source of truth’ and could facilitate so-called ‘atomic settlements,’ eliminating intermediaries in financial transactions.
Key factors for the mass adoption of cryptocurrencies
For experts, ease of use and regulation are crucial elements for the adoption of cryptocurrencies. Armstrong insisted, “We need to make cryptocurrencies easier to use. Most people don’t understand how electricity works, but they can turn on a light switch. I think we need to make it as simple as that.”
Dixon added that privacy and integration with traditional financial systems are fundamental aspects.
“Privacy is another issue. We need to reach the point where we’re focusing on ease of use, the design of the user experience (UX), but also incorporating privacy.”
Johnson mentioned that “the lack of wallets has been one of the challenges [because] they haven’t been integrated into platforms [in general].” For Dixon, this is directly related to regulation. “What really gets lost when there is no regulatory clarity… is the technology.”
Economic and social impact of global adoption
If regulatory and technological barriers are removed, the impact of cryptocurrencies could be significant on the global economy. Dixon explained that cryptocurrencies are already enabling economic growth locally in various regions: “These people receive the local currency and spend it in their village, which creates what we call the ‘cascading effect.'”
Armstrong concluded with an optimistic vision for the future of cryptocurrencies: “If we manage to introduce good financial infrastructure in every country in the world for anyone with a smartphone, connecting them to the global economy, I believe we will lift billions of people out of poverty.”
With clearer regulation and support from governments and businesses, 2025 could mark a turning point in the history of cryptocurrencies, solidifying them as a key player in the future of global finance.