One of the most significant developments in 2025 for the crypto industry was undoubtedly the passage of the GENIUS Act, a critical piece of legislation emerging from Congress. This act established a regulatory framework for stablecoins, although it restricted banks from offering interest to stablecoin holders. The environment has ignited a major conflict between traditional banking institutions and crypto exchanges, such as Coinbase and Kraken. As a prominent figure in the crypto space, Ray Salmond, the head of markets for Cointelegraph, provided insightful analysis on this emerging landscape and its implications for the future of cryptocurrency and finance.
The recent exchanges between industry leaders highlight the core of the debate; Brian Armstrong, CEO of Coinbase, declared on social media that any attempt to reopen the GENIUS Act would be a “red line issue” for his company. This strong stance illustrates the intense competition emerging from traditional finance as banks resist the implications of the new legislation. Armstrong’s argument centers on the notion that stablecoins should not be allowed to offer yields, as that undermines the fundamental functions of traditional banking. However, Salmond reflects a different perspective, indicating that the legislation has already been finalized, and revisiting it at this point may set a negative precedent for the future of cryptocurrency regulation.
Salmond points out that crypto’s primary need is for clarity and a straightforward regulatory framework that fosters confidence in deploying capital within the industry. This clarity is crucial for both traditional financial institutions and blockchain companies, as they navigate the evolving landscape of cryptocurrency, stablecoins, and the legislation governing them. Furthermore, the argument that permitting stablecoins to provide yields could endanger community banks appears to be tenuous. Historical context shows that banks offered negligible interest rates to depositors during prolonged quantitative easing while reaping substantial yields on their treasury investments.
The discourse surrounding these developments also sheds light on the wider climate of the financial markets. Heading into a midterm election year, members of Congress may not want to engage deeply in these regulatory battles, favoring a focus on re-election campaigns instead. Nevertheless, Salmond suggests that the legislative direction may ultimately favor the crypto industry in 2026, aligning with political mandates and lobbying efforts from influential figures, including former president Trump. The current Republican majority appears to lean toward progressive attitudes concerning technology and finance, potentially swaying legislation in favor of crypto ventures like Coinbase and other exchange platforms.
Despite these positive legislative movements, the crypto market has seen a disappointing end to 2025, with Bitcoin prices reflecting weakness compared to traditional markets. With potential declines of about 6% for Bitcoin, the S&P 500 and Dow Jones are set to see notable gains, leaving cryptocurrencies like Bitcoin in a challenging position. However, Salmond emphasizes the importance of examining the broader context. He notes that while Bitcoin has faced recent price declines, the adoption of spot Bitcoin ETFs has absorbed $113 billion in net assets, and the asset’s price experienced substantial growth—from $68,000 at the year’s beginning to $126,000 by October.
This year has witnessed a structural win for Bitcoin, demonstrating that market liquidity has increased, and ownership is becoming more diversified. A shift in capital towards longer-term holders has taken place, moving away from speculative investors drawn to rapid price fluctuations. However, there are several external factors contributing to the current bearish sentiment, including global economic uncertainty, inflation concerns, and geopolitical tensions involving Russia and China. Such factors contribute to the overall skepticism in the markets, but Salmond notes that this environment can also present opportunities for savvy investors willing to navigate the complexities.
As we reflect on the tumultuous journey of cryptocurrency in 2025, it is clear that the landscape is evolving. The future will depend on how both banking institutions and cryptocurrency platforms evolve amidst new regulations and market dynamics. The insights provided by Ray Salmond illuminate the strategic shifts occurring within the crypto industry and the wider financial markets, suggesting that while challenges remain, so do significant opportunities for participants willing to adapt.