One meaningful regulatory shift we’re watching closely is the emergence of genuine, institutional-grade custody frameworks. For years, the real barrier to long-term crypto participation wasn’t market volatility — it was the absence of legally protected, reliable infrastructure for holding assets over time.

What changed in 2025 is that custody is finally becoming standardized. The SEC’s reversal of SAB 121, new guidance for trust companies, and MiCA’s rollout across Europe mean digital assets now operate under the same segregation, insurance, and audit standards as traditional finance. That matters immensely. It’s the difference between hoping an exchange doesn’t collapse and knowing your assets are protected by law.

This creates a ripple effect across the market. Institutional investors can now allocate capital without the custody risk being a structural showstopper. Transparency requirements improve market integrity. Stablecoins are transitioning from speculative tokens into legitimate financial instruments. And regulatory clarity is pulling crypto out of the grey zone into a recognized system.

For long-term investors, the impact is straightforward: more safety, better liquidity, and the ability to build investment theses on fundamentals rather than just weathering volatility. That’s when crypto matures from a speculation play into actual financial infrastructure.

One thing I am really enthusiastic about is the stricter and more transparent regulations concerning the custody and segregation of client assets. For long-term investors, the fact that their assets will be safeguarded in an exchange that has to maintain a certain amount of capital and follow the proper reporting and auditing routine lessens the counterparty risk styled “FTX” far more than any skilled trading strategy. Eventually, I anticipate that regulations will be key in creating a divided market which includes: regulated venues and instruments that bear resemblance to traditional finance in terms of the way they look and feel (not fancy but safe for a big amount of capital), and the other extreme — a parallel unregulated and highly speculative sector. The vast majority of long-horizon and institutional money will go to the first tier, therefore helping to make that section of the crypto market more stable, liquid, and investable.

The recent regulatory clarity around staking is a game-changer for long-term investors. For years, the big question was whether basic, protocol-level staking was a securities offering. That uncertainty kept serious institutional capital on the sidelines — you can’t build a 5-year strategy if the rules might change tomorrow.

The guidance that native staking is not a security changes everything. It creates predictable compliance. This means pension funds and endowments, who can’t operate in gray areas, can finally start participating. Their entry brings deeper liquidity and matures the entire asset class.

Even the IRS’s stricter tax rules are a net positive. It’s a demanding framework, but certainty is what allows for proper financial planning. Staking can now shift from a speculative side hustle to a legitimate, long-term income pillar for portfolios.

This move towards clearer rules is healthy. Good regulation protects investors without killing innovation and creates the guardrails that allow for real, integrated growth. This staking clarity is a crucial step in that direction.