Crypto Policy Blitz Expected in 2025 as Bitcoin Grows in 2024

The year 2025 could bring big changes for crypto, with states potentially opening up to public pension funds and treasuries investing in it. Proponents see it as a valuable hedge against inflation, akin to gold. While some worry about its volatility, others believe that increased government involvement could stabilize its price and give it more legitimacy.

Currently, only a few public pension funds have invested in cryptocurrency, and a recent study highlighted its high volatility and the lack of a standard approach for projecting returns. Despite these concerns, it has been a significant year for crypto, with bitcoin hitting new highs and more states considering bills to become crypto-friendly.

In Pennsylvania, a proposed bill to allow the state treasurer and public pension funds to invest in bitcoin garnered a lot of attention but did not move forward. However, similar bills may resurface in the future. While some state officials remain cautious about investing in crypto due to its unpredictability, others, like Louisiana Treasurer John Fleming, are exploring new ways to incorporate cryptocurrencies into government transactions.

While the future of crypto remains uncertain, the growing interest from states and the federal government, as well as ongoing debates about its risks and rewards, suggest that it will continue to be a significant topic in 2025.