Paid by Grayscale
It’s taken a while, but one of the last obstacles to widespread crypto adoption is finally being overcome: regulatory uncertainty. Under the Trump administration, a rapid succession of legislative actions, policy guidance, and securities market approvals has, on a near-monthly basis, paved the way for broader and deeper adoption of crypto assets by the institutional market.
As regulatory clarity continues into 2025, crypto is rapidly moving along the familiar rails of financial assets, with clearer rules and strategies ready for allocation. “After a long period of headwinds, the current crypto regulatory environment is nothing but tailwinds,” said Craig Salm, General Counsel at Grayscale. In this crypto inflection point article, Salm explains what’s changed, how the new policy expands choice and access for advisors and investors, and what could happen.
A greater sense of security and protection
While most investors have long viewed crypto as the Wild West of the financial frontier, Salm believes the industry is now in colonization mode: cities are being built, communities are being formed, and the rule of law is being clarified. “The industry has long been calling for clearer rules of conduct and regulations that would help it grow,” says Salm. “At Grayscale, we have become more focused on regulation, from working with regulators to designing market-ready structures that investors are accustomed to in the traditional financial world. »
In late 2025, this clarity is coming from multiple directions, including the formation of “Project Crypto,” a crypto task force within the Securities and Exchange Commission (SEC) with the goal of modernizing securities regulation, or congressional legislation on crypto market structure such as the Clarity Act. While the Clarity Act and other crypto-based legislation are still working their way through Congress, Salm notes that these conversations have pushed crypto from the fringes to the mainstream, and advisors and investors are paying attention.
“Investors want – and deserve – a greater sense of security and protection than digital assets have historically offered,” says Salm. “But they understand that now.” Salm sees the current environment as an opportunity to forge a true partnership between government and digital-first investment platforms: “At Grayscale, we will continue to advocate for stronger disclosures, better market oversight, and stricter custody standards – all attributes of a mature market.
From “on the side” to full portfolio integration
Legislation and rulemaking not only lend credibility, they expand access, Salm says. As Grayscale continues its long history of introducing new digital asset products, Salm believes the new legislation will open the door to even more ETF-based products.
Political dynamics also affect retirement plans: new guidance from the Department of Labor has increased the ability of 401(k) providers to offer alternative investment options, including digital assets. “It’s a huge opportunity,” says Salm. “Grayscale is entirely focused on creating products that will potentially allow retirement plans like 401(k)s to allocate to the space.”
Increased regulatory clarity is also changing investor psychology, particularly for clients guided by advisors. “If you ask financial advisors why they haven’t invested in this asset class, one of the main answers has always been the lack of regulatory clarity,” says Salm. “The shift you’re seeing toward pro-crypto regulation and legislation eliminates one of the major factors that has kept them out.”
And the wrapper matters, with ETF-based products offering more entry points for ordinary investors. “Some investors are comfortable with assets directly, but there are also those who want digital assets to be in their portfolio with their other stocks, bonds and commodities,” says Salm. ETFs are also subject to SEC reporting, institutional custody and tax reporting standards.
Validate the Playbook
Next step: expand this access and add functionality to current digital asset-based investments. Grayscale extends both passive exposures and active strategies that trade market movements, incorporate staking, and offer geared or leveraged exposures, similar to what investors see in other asset classes.
“Regulatory clarity doesn’t really change our strategy, it validates it,” says Salm. “Grayscale has long called for clear and consistent rules to protect investors and expand access.” As the rules evolve, thanks to clearer guidance from agencies and longer-term legislation from Congress, Salm sees more opportunities for investors and their advisors.
Grayscale has specialized in crypto since 2013. With over a decade of experience, we are an industry leader in creating crypto investment products and helping investors navigate this evolving asset class. Today, Grayscale is the largest digital asset focused* asset manager in the space with the longest track record.
Grayscale pioneered the crypto investment product category by introducing the first publicly traded Bitcoin fund, the first Ethereum investment fund, and the first SEC reporting crypto investment funds.
Grayscale’s products operate within established regulatory frameworks and are supported by institutional-level partners, including custodians and auditors. Investors, advisors, and allocators turn to Grayscale for reliable crypto exposure. Grayscale is dedicated to deepening understanding of the expanding crypto landscape. Through exclusive insights, we continue to clarify the use, relevance and growing impact of crypto on today’s digital economy.
To learn how Grayscale can help you and your customers, visit Grayscale.com.
*The largest investment platform focused on digital assets, based on $34 billion in assets under management as of 09/24/2025. For other companies, assets under management are considered to be those most recently published. 21 stocks under management per company website as of 09/23/2025; CoinShares AUM per company website as of 09/24/2025; Galaxy AUM according to Q2 2025 Financial Results Report as of 06/30/2025; Pantera AUM per company website as of 08/31/2025. Bitwise AUM reflects customer assets held per press release as of 08/14/2025.
Investments in digital assets are speculative investments that involve high degrees of risk, including partial or complete loss of invested funds. Investments in digital assets are not suitable for investors who cannot afford to lose their entire investment.
This material does not constitute tax, legal or accounting advice and neither Grayscale nor any of its agents, employees or registered representatives are engaged in offering such advice. Please consult your personal financial professionals for information regarding your individual situation. These views and opinions are subject to change and do not constitute investment advice or a recommendation regarding any specific product or security. Portfolios that have a greater percentage of alternatives may have higher risks.
This article was paid for by Grayscale and created by Yahoo Brand Studio. The Yahoo Finance editorial staff was not involved in the creation of this content.
