DEX derivatives market forecast to reach $3.48T in 2025: dYdX

DEX derivatives market forecast to reach $3.48T in 2025: dYdX

Derivatives trading on decentralized exchanges (DEXs) is forecast to more than double this year as more investors opt for cheaper and more liquid alternatives to centralized platforms.

According to the dYdX “Annual Ecosystem Report 2024,” DEX derivatives volumes grew 132% last year to reach a record $1.5 trillion. Perpetual DEX volumes were valued at $81 billion in January before skyrocketing to $242 billion by December.

Assuming the same growth rate, dYdX expects total DEX volumes to reach $3.48 trillion in 2025.

DEXs have also become a popular venue for spot trading, more than doubling their spot market share from 9% to 20%, the report said.

While surging DEX volumes are a reflection of the crypto bull market, these platforms also attract users due to their low transaction fees and greater access to more speculative assets.

For example, DEX trading volumes on Solana have skyrocketed due to the memecoin frenzy. In early January, daily trading volumes on Solana-based DEXs exceeded Ethereum and Base combined.

US reporting requirements could push more users toward DEXs in the short term

Despite the inauguration of the pro-crypto Trump administration, certain reporting requirements affecting centralized exchanges in the United States may compel more traders to opt for DEXs.

Beginning this year, the US Internal Revenue Service will require centralized exchanges and other brokers to report digital asset transactions. The reporting rules will expand to DEXs in 2027.

While the IRS said this rule should help investors “file accurate tax returns” on their crypto, some industry participants view it as an overreach.

There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” government blockchain expert Anndy Lian told Cointelegraph.

“While decentralized systems currently pose challenges for tax enforcement, advancements in blockchain analytics and potential regulatory developments by 2027 could change this landscape,” said Lian.

The IRS’ reporting rules have faced heavy opposition from the crypto industry, with the Blockchain Association suing the tax agency in December. According to the lawsuit, the IRS has overstepped its statutory authority and has violated the Administrative Procedure Act.

 

Source: https://cointelegraph.com/news/dex-derivatives-market-forecast-double-2025-dydx

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Hong Kong SFC Grants First Crypto Licenses Of 2025

Hong Kong SFC Grants First Crypto Licenses Of 2025

Hong Kong’s Securities and Futures Commission (SFC) granted the first operational licenses of 2025 to two cryptocurrency trading platforms. Since beginning its licensing initiative in mid-2024, the regulator has issued a total of seven crypto licenses.

On January 27, the SFC granted operational licenses to two cryptocurrency exchanges based in Hong Kong, PantherTrade and YAX. Public records maintained by the Hong Kong government indicate that both entities were registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO).

Utah House committee passes bill for state to buy crypto

A bill has been passed by the Utah House committee that would allow the state to invest a portion of public funds into crypto, with the measure now heading to the House for a vote.

On Jan 28, the Utah House Economic Development Committee passed HB 230, the Blockchain and Digital Innovation Amendments, by an 8-1 vote.

Jordan Teuscher, Utah Representative proposed the bill on Jan. 21. It would give the state’s treasurer authority to allocate up to 5% of certain public funds to buy “qualifying digital assets,” such as those with a market capitalization over $500 billion or approved stablecoins.

The updated second substitute of the initial bill, containing provisions for crypto mining zoning restrictions, was revised on January 28.

The bill will now proceed to the full House, where it must receive majority approval there and in the Senate before being presented to the governor for signing or vetoing.

Arizona Senate moves forward with Bitcoin reserve legislation

Arizona legislators have moved forward with a bill to establish a Bitcoin strategic reserve, aiming to use the leading cryptocurrency as a savings tool for the state.

The Strategic Bitcoin Reserve Act (SB1025), co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, was passed by the Arizona State Senate Finance Committee with a five to two vote on Jan. 27.

The bill is set to proceed to the Senate Rules Committee for its final debate and potential amendments. If approved by the Senate, it will then be forwarded to the House of Representatives.

The proposed bill suggests establishing a strategic Bitcoin reserve managed by the US Treasury to store government Bitcoin holdings. This reserve would also permit other public funds to securely store their digital assets in a separate account within the strategic Bitcoin reserve.

The proposed bill permits up to 10% of a government entity’s or public fund’s capital to be invested in Bitcoin BTC$102,461 and other digital assets. It also allows pension funds to allocate resources to Bitcoin, which could boost public interest in cryptocurrencies.

According to Anndy Lian, author and intergovernmental blockchain expert, this decision to include Bitcoin in its financial strategy could lead to a domino effect among other states.

 

Source: https://www.outlookmoney.com/cryptocurrency/hong-kong-sfc-grants-first-crypto-licenses-of-2025

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Arizona Senate moves forward with Bitcoin reserve legislation

Arizona Senate moves forward with Bitcoin reserve legislation

Arizona lawmakers have advanced a Bitcoin strategic reserve bill, which seeks to deploy the world’s first cryptocurrency as a savings technology for the state.

The Strategic Bitcoin Reserve Act (SB1025), co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, was passed by the Arizona State Senate Finance Committee with a five to two vote on Jan. 27.

The bill will now move to the Senate Rules Committee for final debate and amendments. Approval by the Senate would advance the bill to the House of Representatives.

The bill proposes the creation of a strategic Bitcoin reserve by the US Treasury for “the storage of government Bitcoin holdings,” which would also allow other public funds to store their digital assets in a “secure, segregated account within the strategic Bitcoin reserve.”

The bill would allow up to 10% of a government entity’s or public fund’s capital to be invested in Bitcoin and other digital assets. It also opens the door for pension funds to allocate resources to Bitcoin, potentially increasing public interest in cryptocurrencies.

Up to 20% of Gen Z and Alpha are already open to receiving pensions in cryptocurrency, while 78% expressed greater trust in “alternative retirement savings options” over traditional pension funds, Cointelegraph reported on Jan. 16.

Arizona’s decision to include Bitcoin in its financial strategy could lead to a domino effect among other states, according to Anndy Lian, author and intergovernmental blockchain expert.

He told Cointelegraph:

“Imagine if your state decided to put some of your tax dollars into Bitcoin; it might encourage places like Texas or Pennsylvania, where they’ve already been talking about similar ideas, to jump on the bandwagon quicker.”

However, Lian cautioned that a Bitcoin reserve would require safeguards due to cryptocurrency’s volatility, noting that taxpayers could face financial risks similar to those encountered by crypto investors.

Bitcoin price to $1 million on federal Bitcoin Reserve Act?

As one of the most anticipated crypto-related bills in history, the Bitcoin Act — championed by Wyoming Republican Senator Cynthia Lummis — has generated significant excitement among investors.

The nationwide approval of a US Bitcoin reserve could push Bitcoin above the seven-figure mark as soon as this cycle, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most notable cryptographers in the industry.

The potential approval could lead to a rapid price appreciation, as market participants have yet to price in this likelihood, wrote Back in a Nov. 18 X post.

There are at least 13 other Bitcoin reserve-related bills at various stages in states such as Massachusetts, Pennsylvania, Kansas, New Hampshire, Wyoming, Ohio, Utah and North Dakota, according to Bitcoinlaws.io.

Bitcoin reserve proposals are gaining support across the US thanks to President Donald Trump’s pro-crypto policies and recent executive order on crypto.

The success of the bill could bring an influx of new institutional Bitcoin adopters, according to Anastasija Plotnikova, co-founder and CEO of Fideum.

The regulatory expert told Cointelegraph:

“Analysts suggest it could drive Bitcoin’s price toward $500,000 while attracting institutional investors like pension and sovereign wealth funds, further legitimizing Bitcoin as an asset class.”

 

Source: https://cointelegraph.com/news/arizona-bitcoin-reserve-bill-passes-senate

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