According to Franklin Templeton, the crypto industry will be reshaped by clearer regulations, growing institutional interest, and advancements in technology in 2025. They believe the US crypto space will particularly lead crypto innovation next year with favorable ETF regulations.
The company remarked, “2025 will mark a shift from speculation to utility, as crypto’s foundational technologies become integral to global financial and operational systems.”
Franklin Templeton expects friendlier crypto regulations
Franklin Templeton anticipates that the U.S. will lead in crypto innovation by implementing more accommodating regulations for ETFs and tokenized assets in 2025. They believe favorable regulations will drive the industry’s growth, expecting traditional finance players and the crypto infrastructure to converge.
The firm also projects for the establishment of a stablecoin regulatory framework in the US which they believe will allow for many other financial institutions to launch their own stablecoins.
Moreover, Templeton believes tokenized products and stablecoin adoption will continue to expand and be major drivers of decentralized finance (DeFi) growth globally. They also expect to see many countries starting their own Bitcoin reserves, and for BTC to grow into a global financial asset driven by increased institutional adoption.
Franklin Templeton says AI and crypto interactions will increase
Franklin Templeton added that they expected decentralized physical infrastructure networks (DePIN) to see growing demand due to their application in practical areas such as logistics and the Internet of Things (IoT).
They also predict that artificial intelligence and crypto will merge faster, utilizing blockchain technology for transparency and verification.
The investment company also said that AI agents would likely employ blockchain infrastructure to streamline on-chain transactions, manage portfolios, and connect digital content and social media with blockchain ecosystems.
They added that stakeholders needed to monitor regulatory changes, and institutional strategies, and advance AI-crypto integration to remain competitive in this dynamic field.
However, they recognized that digital assets are still tied to underdeveloped technologies, potential security vulnerabilities, intellectual property disputes, exchange credit risks, regulatory uncertainty, value instability, limited global adoption, and susceptibility to manipulation and fraud.
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