New Crypto Regulations and What They Mean for Investors
17 April 2025
U.S. Turns Pro-Crypto
President Trump’s administration has signaled a dramatic shift in U.S. crypto policy. From establishing a federal working group to developing a digital asset framework and supporting the creation of a national stockpile of Bitcoin, the government is actively embracing digital assets.
Key elements of the new policy agenda include:
- Appointing pro-crypto leadership at the SEC
- Enforcing fair banking access for crypto businesses
- Promoting privately issued stablecoins
- Launching a strategic digital asset reserve
These initiatives are aimed at making the U.S. the global hub for digital assets, while simultaneously encouraging innovation and boosting investor confidence through regulatory clarity.
Europe Leads with Regulation
While the U.S. signals its intent to become more crypto-friendly, the European Union has already taken the lead by implementing MiCA. This regulatory framework introduces:
- Licensing requirements for crypto service providers
- Anti-money laundering protocols
- Structured classification of crypto assets into categories such as asset-referenced tokens, utility tokens, electronic money tokens, and others
MiCA’s structured and transparent approach aims to promote legitimacy, safeguard investors, and enhance trust in digital asset markets across Europe. It could also serve as a blueprint for other jurisdictions looking to regulate crypto effectively.
Implications for Investors
Despite the promise of these regulatory shifts, crypto assets continue to carry significant risk. While regulatory clarity may enhance market stability and foster institutional adoption, it also introduces the potential for greater centralization, which could challenge the decentralized ethos that underpins cryptocurrencies.
Investors must remain alert to:
- Evolving legal frameworks
- Transitional uncertainties
- Potential shifts in how decentralized platforms operate
A diversified and indirect investment strategy may be the most prudent approach in this environment.
A Structured Way to Access the Crypto Economy
VanEck’s Crypto and Blockchain Innovators UCITS ETF (DAPP) offers an alternative way to participate in the digital asset space without holding crypto directly. The fund provides diversified exposure to key segments of the crypto economy:
- Crypto miners
- Blockchain software developers
- Crypto exchanges
- Hardware providers
- Payment gateways
Through DAPP, investors gain indirect access to the crypto industry while avoiding technical barriers such as managing wallets or navigating evolving tax frameworks. Nevertheless, the fund remains subject to market volatility and the risks inherent to crypto-related equities.
Geographic and Sectoral Exposure
DAPP’s portfolio spans several major markets, including the United States, Singapore, China, Germany, and Canada. This geographic diversity allows investors to capture the global momentum behind digital asset development. However, regional regulatory differences and sector-specific volatility can still impact performance. At the same time, the ETF’s sectoral breadth, from infrastructure to application services, ensures a more stable and comprehensive exposure to the ongoing evolution of the blockchain and crypto ecosystem.
Final Thoughts
Crypto regulation is no longer a future consideration, it is now an active force shaping the trajectory of the digital asset space. For investors who want to engage with this rapidly developing sector while managing risk, solutions like VanEck’s DAPP ETF present a compelling opportunity. As both the U.S. and EU push forward with new frameworks, understanding these changes will be crucial for navigating the crypto economy’s next phase, though the impact of regulatory shifts remains a key risk.
To dive deeper into the regulatory changes and what they mean for your investments, read the full white paper: How New Crypto Regulations May Shape the Future of Digital Assets.
IMPORTANT INFORMATION
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This material is only intended for general and preliminary information and shall not be construed as investment, legal or tax advice. VanEck (Europe) GmbH and its associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed.
VanEck Crypto and Blockchain Innovators UCITS ETF (the "ETF") is a sub-fund of VanEck UCITS ETFs plc, an open-ended variable capital umbrella investment company with limited liability between sub-funds. The ETF is registered with the Central Bank of Ireland, passively managed and tracks an equity index. Investing in the ETF should be interpreted as acquiring shares of the ETF and not the underlying assets.
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Important Disclosure
This is a marketing communication. Please refer to the prospectus of the UCITS and to the KID before making any final investment decisions.
This information originates from VanEck (Europe) GmbH, which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin).
The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice VanEck (Europe) GmbH, VanEck Switzerland AG, VanEck Securities UK Limited and their associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results. Information provided by third party sources is believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. Brokerage or transaction fees may apply.
All performance information is based on historical data and does not predict future returns. Investing is subject to risk, including the possible loss of principal.
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