April 2025 proved that the crypto market’s transformation isn’t just a series of isolated events — it’s a coordinated shift toward making digital assets a foundational part of the global financial system.

From high-level regulatory moves to renewed institutional optimism, the month offered brief reprieve for the crypto bloodbath caused by the recent trade war. Here’s everything you need to know.

Market Performance

Bitcoin: Steady Amid Shifting Winds

After a turbulent start to the year — including a record Bybit hack and rising global tensions — Bitcoin (BTC) finally found firmer footing in April. While BTC spent most of the month consolidating between $82,000 and $86,000, it ended April up 3.1%, buoyed by renewed institutional buying and geopolitical shifts favoring decentralized assets. Analysts noted that the relative calm in BTC pricing, despite ongoing macroeconomic uncertainty, signals growing maturity in the market.

Ethereum’s Quiet Recovery

Ethereum (ETH), after facing a “midlife crisis” moment in March, showed signs of resilience. Though ETH still trails some of its newer rivals in terms of transaction speed and cost-efficiency, key network upgrades to address Layer 2 integration issues were successfully initiated in mid-April. ETH prices rose modestly by 2.4% over the month, signaling cautious optimism among developers and investors alike.

Altcoin Divergence

While major altcoins like Solana (SOL) and Avalanche (AVAX) bounced back alongside Ethereum, April also saw the rise of niche Layer 1 networks offering specialized solutions for AI integrations and IoT applications. These projects captured attention from both venture capitalists and developers looking beyond traditional DeFi and gaming use cases.

Key Developments

1. Cynthia Lummis Turns Up the Heat on the Fed

In April 2025, Senator Cynthia Lummis made headlines by openly challenging the U.S. Federal Reserve’s handling of digital assets.

In a fiery statement, Lummis vowed to "continue to hold the Fed accountable until the digital asset industry gets more than a life jacket," criticizing the Fed’s prior role in the debanking of crypto firms under the previous administration. With the end of "Operation Chokepoint"-style practices — where banks were unofficially discouraged from serving crypto companies — Lummis is now demanding proactive support, not just passive tolerance.

Why it matters:

• From Defense to Offense: It's no longer about crypto fighting to survive — it's about pushing for mainstream financial integration.
• Political Will: The Trump administration is making crypto a policy priority, with Lummis as one of its most vocal champions.
• Industry Impact: Greater access to banking and financial services could unlock a new wave of growth for crypto startups and institutions alike.

Lummis' push reflects a broader strategic shift: crypto is now seen not just as a disruptive force, but as a national asset worth defending and nurturing.

2. Federal Reserve Withdraws Crypto-Related Guidance

On April 24, 2025, the Federal Reserve announced the withdrawal of its previous guidance that required banks to seek approval before engaging in cryptocurrency-related activities. This move completes a rollback of crypto restrictions from all three U.S. prudential banking regulators—the FDIC and the OCC had already rescinded their own guidance earlier in April and March 2025, respectively.

Why it matters:

• Regulatory Clarity: Banks no longer need prior approval to engage in crypto activities, reducing uncertainty and encouraging participation.
• Innovation Support: The Fed's decision aligns with President Trump's campaign promise to ease restrictions on banks participating in legal blockchain ventures.
• Market Confidence: The removal of these guardrails is expected to boost confidence among financial institutions considering crypto services.

This policy shift marks a significant departure from the previous administration's approach, signaling a more supportive environment for crypto integration within the traditional banking system.

3. SEC Chair Paul Atkins Advocates for Clear Crypto Regulations

On April 25, 2025, Paul Atkins, the newly appointed chairman of the U.S. Securities and Exchange Commission (SEC), emphasized the need for clearer regulations for the cryptocurrency sector. Speaking at the SEC's crypto roundtable, Atkins criticized previous regulatory ambiguity for stifling innovation and acknowledged growing tensions between digital asset firms and the agency.

Why it matters:

• Shift in Approach: Atkins' stance represents a move away from the enforcement-first approach of the previous administration, aiming for a more industry-friendly regulatory environment.
• Regulatory Development: The SEC has started revising its stance by developing new crypto regulations and pulling back on some enforcement actions.
• Global Implications: Clearer U.S. regulations could set a precedent for other countries, influencing global crypto policy.

Atkins' leadership is expected to foster a more collaborative relationship between the SEC and the crypto industry, promoting innovation while ensuring investor protection.

4. Justice Department Disbands Crypto Enforcement Team

In a significant policy shift, the U.S. Department of Justice (DOJ) announced on April 8 the disbandment of its National Cryptocurrency Enforcement Team. This decision aligns with directives from the Trump administration to reduce regulatory enforcement on digital assets and redirect focus toward issues such as immigration, gang violence, and drug crimes.

Why it matters:

• Regulatory Shift: The move marks a departure from the Biden administration’s aggressive stance on crypto-related crimes, particularly targeting platforms like exchanges and mixers used to conceal illicit transactions.
• Industry Relief: The disbandment has been welcomed by crypto industry advocates, who criticized the previous administration's approach as overreaching.
• Focus on Criminal Use: The DOJ will now prioritize prosecuting individuals or groups that use cryptocurrency for direct criminal activities, such as terrorism, human trafficking, or fraud, rather than targeting developers or platforms peripherally involved.

This change reflects the Trump administration’s broader strategy to bolster the cryptocurrency industry by reducing regulatory burdens and fostering a more crypto-friendly environment.

Points of Interest

Stablecoin Legislation Gains Momentum — But State Regulators Push Back

At the TIME100 Talks event on April 26, industry leaders expressed renewed optimism about U.S. stablecoin legislation finally gaining traction, with bipartisan support growing for bills like the STABLE Act and the GENIUS Act. However, behind the scenes, major tensions surfaced between federal ambitions and state regulators.

Previously, the Conference of State Bank Supervisors (CSBS) submitted a formal letter criticizing the draft STABLE Act. While broadly supportive of national stablecoin oversight, the CSBS warned that the proposed legislation poses significant risks to financial stability and consumer protection if not properly amended.

Key concerns highlighted by the CSBS included:

• Federal Overreach: The draft Act would concentrate regulatory power at the federal level, sidelining the states that currently oversee over $50 billion in stablecoin activity.
• Operational Risk: The Act would allow payment stablecoin issuers (PSIs) to engage in risky non-stablecoin activities without adequate capital and liquidity safeguards, raising fears of systemic instability.
• Weak Consumer Protections: There is no clear bankruptcy protection for stablecoin holders if an issuer collapses, potentially exposing users to unexpected losses.
• State Parity Issues: The Act stacks the deck against state-regulated issuers by allowing "host states" to impose additional requirements, undermining the U.S.’s traditional dual banking system.

The CSBS urged Congress to preserve cooperative federalism by strengthening reserve requirements, clarifying bankruptcy protections, and maintaining a meaningful role for state oversight.

Why it matters:

• Legislative Risks: While the industry welcomes the push for clear rules, rushed or imbalanced legislation could introduce new systemic vulnerabilities.
• Structural Tensions: The growing conflict between federal ambitions and state protections underscores the complexity of regulating stablecoins, which straddle both banking and technology sectors.
• Investor Caution: Until these gaps are addressed, institutional investors may hesitate to fully embrace stablecoin-backed products, slowing broader market growth.

Stablecoins remain the linchpin for connecting traditional finance with blockchain systems — but April 2025 showed that ironing out the details won't be smooth or uncontested.

Final Thoughts

After years of fragmented efforts and regulatory uncertainty, the tides are shifting - digital assets are cementing their role as essential pillars of the future financial system.

But challenges remain. Security risks, regulatory balancing acts, and macroeconomic tensions continue to loom large. As the crypto market enters the summer months, momentum is building — but the next moves, especially from Washington, Beijing, and Brussels, will determine just how fast this transformation accelerates.