As digital assets continue to seek regulatory clarity, 2025 is shaping up to be a pivotal year in the evolution of the cryptocurrency landscape. Key developments such as the GENIUS Act and new exchange-traded fund (ETF) approvals are laying the foundation for broader mainstream adoption. Major financial institutions and state governments are increasingly implementing sample coins and tokenization strategies, transitioning these digital assets from pilot concepts to permanent financial platforms.
The tokenization market now exceeds $30 billion in value, with sectors like private credit and real estate beginning to establish themselves on the blockchain. Stablecoins are gaining a clearer legal and regulatory framework, while public markets continue to welcome digital assets through strong listings and new digital asset treasury firms.
In a recent conversation at the New York Stock Exchange, Devin Ryan, head of financial technology research at Citizens, discussed the inflection point unfolding in the market. Ryan explained that we are close to achieving mass adoption of digital assets, but critical infrastructure still needs completion as regulatory frameworks remain unfinished. “The rules of the road need to be formed for crypto, and they haven’t been there in the past,” he said, calling attention to the primary barrier preventing large institutional players from fully entering the space.
This year has delivered several major milestones. The GENIUS Act has enabled stablecoins to operate within a regulated environment, a shift that may accelerate adoption. Ryan also pointed to the Clarity Act, currently under consideration in the Senate, as another crucial component that could bring major traditional financial institutions into the digital asset ecosystem. According to Ryan, if these frameworks take shape, 2026 could become the year where mass adoption becomes unmistakable.
On the regulatory timeline, Ryan pointed to rising momentum from a newly engaged SEC under Chair Paul Atkins. He noted the possibility of bipartisan cooperation within Congress to advance pro-crypto regulation. Such collaboration increases the likelihood that the Clarity Act could be finalized by early 2026, potentially creating a strong environment for asset managers and technology firms. With influential institutions like BlackRock supporting blockchain adoption and acknowledging that “virtually all assets are coming on-chain,” the alignment between Wall Street, regulators, and financial institutions appears closer than ever.
Ryan also highlighted the growing trend of mergers and acquisitions (M&A) within the digital asset industry. Traditional financial firms recognize that acquiring companies may be a faster path to competitiveness than merely hiring engineers. At the same time, digital-native firms are seeking partnerships with established regulatory expertise and well-known brands.
When discussing prediction markets, Ryan described them as a key area of future financial innovation. Although these markets currently generate about $10 billion in monthly volume across speculative sectors like sports, this figure remains small compared to the $10 trillion in equity volume. Companies like Robinhood are rapidly gaining market share and working toward regulatory acceptance. Ryan believes that once institutions enter prediction markets, their full potential will become evident, offering new forms of liquidity and valuable market insights.
As digital assets mature, regulators face mounting pressure to create frameworks that can support this rapid technological innovation. The demand for regulatory clarity is clear, and momentum is building toward more sophisticated structures that institutions can adopt. Ryan’s analysis illustrates a future in which digital assets are not simply adopted but fully integrated into the strategies of major financial institutions.
In summary, as cryptocurrency and blockchain technology continue interacting with traditional financial systems, the potential for disruption remains enormous. Clearer regulation, expanding tokenization, and the rise of prediction markets may reshape the way investors, entrepreneurs, and financial institutions operate. Looking toward 2025 and beyond, the foundations being built today are likely to define the financial industry for decades.