News 
December 23, 2024 
3 min. 
Coinbase 2025 market outlook highlights tokenization, a DeFi revival, and a shift toward pro-crypto regulation in the US as major trends set to shape the crypto industry. These developments could reshape how digital assets integrate with traditional finance and regulatory frameworks.
Coinbase Comments on Pro-Crypto Regulation Next Year
Coinbase predicts a significant turning point for US crypto legislation in 2025. With bipartisan support for pro-crypto policies growing in Congress, regulatory frameworks may transition from being roadblocks to growth enablers. One sign of this shift is the push for a Strategic Bitcoin Reserve. In August, Senator Cynthia Lummis introduced the idea, followed by Pennsylvania’s proposal for a Bitcoin Strategic Reserve Act, which could allow the state to allocate up to 10% of its general fund to Bitcoin.
The tokenization of real-world assets (RWA) is gaining traction. By December 2024, the market had grown over 60%, reaching $13.5 billion. Looking ahead, projections suggest this sector could grow to anywhere between $2 trillion and $30 trillion within five years.
After a challenging period marked by overhyped and unsustainable projects, decentralized finance (DeFi) is entering a more mature phase. Coinbase sees the growing connection between off-chain and on-chain capital markets as a key driver of this recovery.
The evolving US regulatory landscape could be a game-changer for DeFi, enabling stablecoin governance frameworks and institutional access. Decentralized exchanges now handle 14% of the trading volume seen on centralized platforms, up from 8% in early 2023. Federal Reserve Governor Christopher Waller’s recognition of DeFi’s complementary role to traditional finance adds further credibility.
Rise of Stablecoins and ETFs
Stablecoins and crypto-based ETFs are poised to play critical roles in the next phase of crypto adoption. In 2024, stablecoin market capitalization grew 48%, reaching $193 billion, with projections pointing to a $3 trillion market by 2030. Their ability to enable faster, cheaper payments makes them a cornerstone for global financial innovation.
Meanwhile, the introduction of spot Bitcoin and Ethereum ETFs in 2024 has attracted nearly $40 billion in net inflows within a year. Innovations like in-kind creations and redemptions are improving ETF efficiency, solidifying their role in the crypto ecosystem.
