Interview: Foresight Ventures’ Zac Tsui on how regulation will shape crypto in 2025

Zac Tsui, Investment Director at Foresight Ventures, anticipates that 2025 will mark a turning point for digital assets, as regulatory clarity drives mainstream adoption and innovation.

Speaking to Invezz about the evolving policy landscape across the US, Europe, and Asia, Tsui said the US is entering a more accommodative phase, setting the tone for global markets through frameworks such as the GENIUS Act.

He also noted that Europe’s harmonised rules under MiCA and Asia’s gradual regulatory progress will collectively shape the next stage of tokenization, stablecoin use, and institutional participation in the digital asset ecosystem.

Here are the excerpts from the interview:

Invezz: How do you see regulation shaping the trajectory of digital assets in 2025?

US regulation is entering a more accommodative phase. The current administration is signalling greater openness toward financial innovation, which is accelerating tokenization across asset classes.

Following the success of on-chain Treasuries, the tokenization of US equities is expected to be a key catalyst in 2025, allowing dollar-denominated assets to capture global liquidity and wealth more effectively.

Derivative and structured products will naturally develop around this new market.

In Europe, the harmonisation achieved under MiCA is notable, given historic fragmentation among national regulators.

Greater clarity under frameworks such as MiFID for perp future, securitised products, and RWA will likely enable broader innovation beyond spot instruments.

Asia’s progress remains mixed. Despite Hong Kong’s enthusiasm for stablecoins and RWA, regulatory conservatism in mainland China has limited momentum.

Even in Hong Kong, strict distribution and usage rules restrict flexibility. As a result, regulatory developments in the US are likely to remain the dominant influence on global market direction.

Invezz: The GENIUS Act’s stablecoin framework is being closely watched. What aspects stand out as most impactful for crypto adoption?

The GENIUS Act represents a structural milestone. Its provisions largely align with market expectations. By establishing a clear federal framework, it encourages broader participation.

Market participants that were previously hesitant can now engage with confidence, while existing issuers like Tether are incentivised to seek a solution through partnerships to issue GENIUS-compliant stablecoin (USAT).

It marks a key inflection point for regulated stablecoin adoption.

Invezz: How do you see stablecoin regulation influencing liquidity and capital flows into Bitcoin and other digital assets?

Regulated stablecoins will expand access to compliant digital dollars, strengthening the liquidity foundation of the entire ecosystem.

As stablecoins become more trusted, capital is likely to flow from on-chain cash positions into yield-bearing assets like ETH or inflation-resistant assets such as BTC.

At the same time, in jurisdictions with more developed fiat rails, the rise of regulated exchanges that enable users to trade directly with fiat/crypto pairs could offset part of that stablecoin use case.

The overall direction, however, remains net positive for market liquidity.

Invezz: With Hong Kong and other Asian markets stepping up their regulatory efforts, how do you compare their approach to the US and Europe?

The US and Europe remain regulatory leaders. Europe treats stablecoins akin to fiat issuance under the EMI framework, while the US is constructing a comprehensive federal/state model.

Asian jurisdictions—Hong Kong, Singapore, Japan, and Korea—are aligning with these templates but with a notable time lag.

Hong Kong’s regime, in particular, maintains tight controls and discourages speculative use of stablecoins in on-chain environment on and offshore venues.

Invezz: Institutional participation has been steadily rising. Do you think regulatory clarity will accelerate institutional adoption in 2025, and if so, in what form?

Yes. Even in tightly regulated jurisdictions such as Hong Kong, brokerages are actively partnering with licensed virtual asset platforms like OSL to expand crypto brokerage and custody capabilities.

Once the regulatory perimeter is well defined, institutional demand tends to scale rapidly.

The next phase of adoption will centre on brokerage, custody, tokenization, and structured solutions built for institutional clients.

Current market valuations already price in a strong expansion of institutional adoption.

A regulatory setback or restrictive shift would invalidate these expectations, potentially triggering volatility and repricing across digital assets.

Invezz: Beyond policy and macro drivers, what underlying structural trends could support the crypto market’s growth?

Two secular trends are gaining momentum:

Stablecoin adoption in cross-border and payment infrastructure — both crypto-native and traditional finance participants recognize its potential to improve efficiency and settlement speed.

Comprehensive tokenization of real-world assets — from Treasuries and HELOC to tokenized securities and alternative assets.

This enhances settlement efficiency, liquidity distribution, and aligns with broader economic objectives in the US and beyond.

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