2025 Cryptocurrency Landscape Reshaping: Policy Shifts and Market Volatility Waves

The cryptocurrency market in 2025 has taken on a completely different appearance due to rapid changes in the regulatory environment and shifts in political policies. In particular, Gary Gensler’s departure from the SEC sent a new signal to the industry, and subsequent policy changes immediately impacted market sentiment.

Turning Point in the Regulatory Paradigm

With the resignation of former SEC Chairman Gary Gensler and the introduction of new retirement account operation regulations, institutional investors’ interest in Bitcoin-related products surged. The increased pure investment demand for Bitcoin ETFs is interpreted as a sign that regulatory uncertainties have been alleviated. At the same time, a strengthened regulatory framework, including measures to prevent terrorist financing, has begun to systematize the oversight of stablecoins.

Escalation of Market Volatility

On October 11, 2025, a massive $10.11 billion in liquidations occurred across global markets. This event revealed more than just technical adjustments; it exposed vulnerabilities in market liquidity and the excessive accumulation of leverage positions. The scale of liquidations suggests that both individual investors’ excessive options positions and institutional investors’ position rebalancing occurred simultaneously.

Policy-Driven Speculative Boom

With the full implementation of the GENIUS Act, speculative activity around TRUMP coins spread. This demonstrates that the policy environment’s pro-cryptocurrency shift has transformed market psychology itself, beyond mere regulatory easing. A pattern was observed where new policies directly triggered trading activities in specific assets.

Promoting Institutionalization and Balancing Regulations

The new regulatory framework established by Gensler’s successors has accelerated institutional adoption of cryptocurrencies. Clear supervisory standards for stablecoins have lowered the barriers for institutional investors to enter related products. These changes are viewed as positive signals that will enhance market maturity in the long term.

2025 is expected to be remembered as the end of the Gensler era and the beginning of a new policy paradigm. Amid the coexistence of regulatory risks and speculative fervor, market participants should return to fundamentals and focus more on risk management.