Evolving Regulation and Its Impact on Crypto Prices in 2025
Bitcoin and cryptocurrency are a relatively new sector. Recent interest has signalled that regulations and laws have yet to catch up. So, how will increased regulation affect the price of new and old coins?
Cryptocurrency is extremely volatile at the best of times. Over the past few months, as interest increased, so has its tendency to rise and fall in value. Many believe better regulation will attract more traditional investors, reducing this variable. But why is regulatory clarity needed, and do investors want it at all?
Why is Regulatory Clarity Needed?
In the past year, Bitcoin and cryptocurrency have been thrown back into the spotlight. Between 2022 and the end of 2023, prices were in decline, and consumer interest waned. With the advent of a new government in the United States who were vocally crypto-friendly, this has changed. Socioeconomic factors across the globe also made decentralized currency a more attractive prospect.
This resulted in heightened volatility, with heightened prices to match. In May 2025, Bitcoin climbed to a record high of around $111,000 and has remained strong with higher lows ever since. This Bitcoin price action has attracted even more investors, particularly those from the traditional financial sector. Governments, states, and even companies have begun to set up Bitcoin treasuries in response.
While this quick change in fortunes is great for short-term traders, the speed with which it has happened has left some glaring issues, which many believe regulations need to address. Mainly, regulations would appease many traditional financial sector investors, who will gain confidence from the oversight it would bring. This could also help reduce its volatility.
Generally, they would protect investors and reduce the risk of fraud. While many will say how safe cryptocurrencies are, they are increasingly related to fraudulent activity. Increasing safety would open up the door for exciting new tech startups, cementing a country's credentials as a tech titan.
Regulation of the Meme Coin Sector
The SEC recently announced that certain coins, known as meme coins, do not fall under the jurisdiction of securities. Therefore, they act as commodities, meaning buyers of meme coins are not protected by federal securities law. With less regulation, there have been questions raised about how meme coins operate, and further regulation or clarity is essential.
There is a host of meme coins, arriving on an almost monthly or weekly basis. These coins have no intrinsic value other than desirability. While this is a negative for some, for others, it is akin to collecting artwork. The value will rise and fall depending on how in demand a certain piece is. Some meme coins are extremely famous, such as Doge. Yet others come and go in cycles, such as Pudgy Penguins and PepePawn.
As they are currently unregulated, buyers must do their research thoroughly. When looking at new crypto coins to invest in, people should use a well-known exchange that provides statistical information. This can include graphs and charts on price rises and falls of the meme coin. It is also possible to find brand new coins that can be bought on presale here, along with when they are released.
US Regulatory Changes and the Genius Act
One major step forward for the US has been the GENIUS Act. This was at least the start of cryptocurrency regulation. It mainly targeted the use of stablecoins. This is important, as they are a cryptocurrency that has its value pegged to that of the US dollar. However, this also makes it wildly different from Bitcoin, which is not pegged to anything and is truly decentralized.
The main focus of the bill was that issuers of stablecoins must have a reserve of currency backing them. This means that if buyers wish to offload their coins, and others do at the same time, they will not face issues or a loss. Effectively, it prevents stablecoin issuers from simply printing or coding money. It also gave coin holders priority in the event of the company going bankrupt.
Those in favour of the bill were adamant that it would help protect consumers. They also said that setting standards opened the way for digital currencies to be more widely used in retail and business settings. Criticism of the act mainly came from those who espoused the fact that it did not go far enough. Many had expected it to cover consumer rights for other digital offerings, such as Bitcoin and altcoins like Ethereum and XRP. However, as they are less reliant on the US Dollar and the Federal Reserve, it could make it harder to push these rules through.
Environmental Regulations
Finally, many are calling for regulation due to environmental concerns. In 2025, energy prices rose once again in most Western countries. It is no secret that crypto mining uses huge amounts of energy, around 150 TWh annually. These costs have forced many miners out of business already, with some countries banning mining outright.
Even in places where crypto mining has employed sustainable energy practices, such as hydropower or solar, there are still concerns. Noise pollution is the main one, and this is still energy that could be used by local businesses and residents. Thus, many are looking for regulation on the production of Bitcoin as well as its use.
Is Regulation Actually Desired?
Regulation seems to be the answer to the crypto community's prayers. More investors will arrive, fraud will reduce, and prices will rise. This means enhanced profits, a bonus for everyone involved. Yet one question must be asked: Do people actually want this?
With regulation comes a general acceptance in mainstream institutions and finance. This involves oversight, a can-do and can-not-do list of rules for Bitcoin. Yet its whole ethos, and the reason it was created, was to avoid these very bodies that rule global finance. By doing so, Bitcoin loses the unique characteristics that make it so attractive: Freedom and anonymity.
Bitcoin has already pulled away from its intended use as a way to pay for daily consumer goods and has instead become an investment tool. Regulation could take away the last unique properties it has, and with that, it could be hard to imagine a use for it at all.
About The Author
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