Original | Odaily Planet Daily ( @OdailyChina )
Author | Dingdang ( @XiaMiPP )
Just two months into 2025, the new Trump administration has already made the crypto community smell the breath of policy relaxation. From the Bitcoin strategic reserve to the first White House crypto summit, friendly signals have been thrown out one after another, igniting the industrys expectations for the future. After the regulation is relaxed, which projects will be the first to reap the dividends? Odaily Planet Daily takes everyone to dismantle the logic behind this policy spring breeze.
What are the signals of regulatory relaxation?
After the Trump administration came to power, it released many signals of support for the crypto industry, making people feel that regulatory relaxation is no longer empty talk.
Support from the new government: On January 23, 2025, Trump signed an executive order to explicitly protect blockchain-related activities, such as mining and trading, and specifically mentioned support for dollar-pegged stablecoins. He also proposed a Bitcoin Strategic Reserve plan to turn the governments 200,000 bitcoins into national assets, which is a big move.
Personnel adjustments: New SEC Chairman Paul Atkins is friendly to the industry and not as tough as his predecessor Gary Gensler. The White House also appointed David Sacks as an advisor on encryption and AI, and the policy direction seems more open.
Legislative trend: The Financial Innovation and Technology Act for the 21st Century (FIT21) was passed by the House of Representatives in 2024. If the Senate also agrees in 2025, it will set clear rules for crypto assets. There is also a bill by Senator Cynthia Lummis, which may pave the way for stablecoins and Bitcoin reserves.
Market and global pressure: Bitcoin ETFs will attract more than $20 billion in 2024, and institutions are waiting and watching. Global competition is also fierce, and the EU has strict regulations. If the United States does not adjust, it may fall behind.
All these signs point to one trend: the regulatory environment may be more relaxed and the rules clearer in 2025.
What resistance might you encounter to relaxation?
Although the direction is promising, deregulation is not all smooth sailing. Some factors may slow down the pace of this spring breeze:
Risk concerns: The Federal Reserve and the FDIC have always worried that cryptocurrency volatility will disrupt the financial system. The shadow of the Terra collapse in 2022 is still there, and they may require additional insurance measures.
The two parties are in a tug of war: Republicans want to loosen up, but Democrats may not fully agree. If the Senate blocks FIT21, we will have to wait. The source of funds for Bitcoin reserves may also cause controversy.
Insufficient technical preparation: Relaxation requires supporting tools, such as on-chain KYC or tax systems. If the technology does not keep up, the policy will not be implemented so quickly.
Therefore, regulatory relaxation may need to be implemented gradually and will not be relaxed all at once.
What is the key to promoting relaxation?
Whether supervision can be relaxed and how effective it is depends on the following key points:
The new government’s execution ability: Whether the Trump team can implement the Bitcoin reserve and stablecoin policies will directly affect the progress of the relaxation.
Entry of institutional funds: Once the rules are clear, institutions may bring in hundreds of billions of dollars in funds, and the market will be more dynamic.
Demand for practical value: If policies encourage blockchain to solve practical problems, such as payment or asset management, project development will be more motivated.
Global competition: If the United States wants to maintain its leading position, it must attract more innovation and capital by loosening its policies.
Which projects will benefit?
If regulation is really relaxed, these crypto projects may have great opportunities:
Bitcoin (BTC) and related ecosystem
The Bitcoin strategic reserve will enhance the legitimacy and safe-haven status of Bitcoin, and its ecological projects will also benefit from attention and capital inflows. Specific projects:
Stacks (STX) brings smart contract functionality to Bitcoin, and regulatory relaxation will amplify its ecological potential and attract the attention of developers and institutions.
Rootstock (RSK) s BTC peg and smart contract functions meet the needs of ecological expansion under policy support.
The Bitcoin ecosystem has received policy support due to the strategic reserve plan, and the market potential will expand from the current ecosystem scale (billions of dollars) to tens of billions. STX and RBTC will stand out in this trend by adding practicality to BTC, and the value of tokens will increase due to the growth of traffic and applications.
USD-pegged stablecoin
The new government explicitly supports stablecoins pegged to the U.S. dollar, viewing them as a tool to maintain the global hegemony of the U.S. dollar. If the regulation provides a clear framework for stablecoins, it will accelerate their application in payment, settlement and DeFi, becoming a hub between traditional finance and the crypto market. Its low volatility also makes it popular among institutions. Specific projects: USDC is very popular because of its strong compliance; USDT can also maintain its advantages if it can improve transparency as required and pass the review.
Due to policy endorsement and institutional demand, the US dollar-pegged stablecoin will become the mainstay of the crypto economy, and the market size may exceed one trillion US dollars. USDC and USDT will dominate this wave with their compliance and wide application, and the circulation and market value of tokens will continue to expand.
Compliant DeFi Projects
Regulatory relaxation will attract institutional funds into decentralized finance (DeFi), and projects with strong compliance will be more likely to seize this wave of dividends because they meet KYC/AML requirements. The new government emphasizes the practicality of blockchain, which also provides soil for DeFi to move from experimentation to mainstream. Compliant DeFi will become a bridge between institutions and the crypto economy. Specific projects:
Aave (AAVE) Pro is its institutional version and has cooperated with Fireblocks to provide compliant lending. Its compliance and technological maturity make it the first choice for institutions, and it has great potential for integration with traditional finance.
Compound (COMP) has partnered with Coinbase Custody to provide BTC staking services to institutions. Its transparency and stability are in line with the needs of institutions after regulatory relaxation, and its market position is solid.
Compliant DeFi has become an entry point for institutional funds due to regulatory relaxation, and the market size may jump from the current tens of billions of dollars to hundreds of billions. AAVE and COMP will take the lead in this transformation with their technological advantages and compliance foundation, and the value of tokens will increase due to the growth of users and funds.
Tokenization of Real World Assets (RWA)
The new government wants blockchain to serve the real economy, and tokenized assets are just the right fit. Specific projects:
Ondo Finance (ONDO) is tokenizing government bonds and collaborating with traditional giants such as BlackRock and Pimco to enhance its compliance and market recognition.
Centrifuge (CFG) supports diversified assets (such as invoices and loans) through Tinlake, which is closer to the actual needs of small and medium-sized enterprises.
The RWA market will expand rapidly due to policy support and institutional demand. ONDO and CFG, with their technological advantages and practicality, may accelerate the process of real assets on-chain and lead the wave of asset tokenization.
Payment and cross-border transaction projects
The new government hopes to reduce transaction costs and support USD stablecoins, which opens the door to payment and cross-border transaction projects. Regulatory relaxation will promote the application of these projects in the global payment field, especially replacing the inefficient and high-cost parts of traditional systems such as SWIFT. Specific projects:
Ripple (XRP) has high cross-border efficiency. If the SEC lawsuit is settled due to loose regulation, XRPs compliance will be greatly improved, regaining the trust of banks and soaring market recognition.
Stellar (XLM) s high efficiency and low-threshold design are close to the needs of emerging markets, and the synergy with stablecoins enhances its competitiveness.
Payment and cross-border transaction tracks will expand rapidly due to policy support and global demand. XRP and XLM may seize the share of traditional finance with their efficiency and wide application scenarios. The value of tokens will rise due to the increase in transaction volume, and the market potential may reach tens of billions of dollars.
Why did they seize the opportunity?
These projects stand out because of several things in common:
Policy support: Bitcoin and stablecoins are directly endorsed by the government, and compliant projects can avoid detours.
Favored by institutions : Big funds will choose these reliable and feasible projects.
Market trends: The industry is shifting from hype to practicality, and these projects are right on the right track.
On the other hand, if there is no practical value, such as Meme coin, the enthusiasm for the track may subside; anonymous coins (such as Monero) also have to see whether they can pass the compliance test.
In 2025, US crypto regulation is likely to be relaxed, with the support of the new government, the efforts of Congress, and the expectations of the market all pushing in this direction. Although some resistance will slow down the pace, the general trend is unstoppable. Bitcoin, stablecoins, compliant DeFi, RWA, and payment projects will be the biggest beneficiaries. With favorable policies, institutional funds, and technological advantages, they are expected to gain a foothold in this wave of changes. For friends who are interested in crypto, keeping an eye on policy trends and the development of these projects may be the key to seizing opportunities!
