Trump, Tariffs, and Utility Tokens: Animoca’s Yat Siu Says Crypto Finally Has to Mature

Key Takeaways

• The crypto industry has faced numerous challenges in 2025, from Trump-era tariffs to real-world rate pressures, necessitating a shift towards utility-based tokens.
• Animoca Brands’ Yat Siu envisions 2026 as the pivotal year for crypto maturation, emphasizing compliance and real-world applications.
• Animoca’s IPO aims to provide public market investors with a strategic Altcoin proxy, facilitating broader exposure to diversified crypto assets.
• The upcoming Clarity and GENIUS acts are poised to provide regulatory frameworks that will drive the institutionalization and practical utility of crypto tokens.
• The focus is shifting away from speculative memecoins towards tokens that offer tangible solutions, preparing the crypto space for the next wave of innovation.

WEEX Crypto News, 2025-12-29 06:07:40

The year 2025 has been a tumultuous one for the cryptocurrency landscape. The industry was rocked by various external pressures, most notably the economic policies under President Donald Trump. While many had hoped that Trump would be a boon for cryptocurrency, the reality painted a different picture. Tariffs, rising interest rates, and a speculative memecoin frenzy have challenged the sector, demanding an evolution beyond its ‘Peter Pan’ phase. According to Yat Siu, co-founder of Animoca Brands, the cryptocurrency industry needs to grow up, and the year 2026 holds the potential for a significant shift towards utility-based tokens.

The Trump Effect on the Cryptocurrency Market

During his time in office, President Trump’s economic strategies have reverberated across multiple sectors, with crypto being no exception. There was an expectation that Trump’s administration might indirectly benefit the cryptocurrency markets through deregulation and other policies. However, the emphasis on tariffs, trade confrontations, and changes in the Federal Reserve’s approach had a notably adverse impact on risk assets, including digital currencies. Yat Siu points out that such policies do not consider the implications for cryptocurrency values, such as Bitcoin, which is ending 2025 in decline for the fourth year in its history.

The market’s hope that Trump’s previous unpredictable nature would drive crypto values failed to materialize. Instead, many investors found themselves grappling with the realities of policy-driven market contractions. As a result, 2025 might be remembered as a year when both seasoned and new investors overestimated the immediate benefits of political shifts for digital assets.

The Shift from Speculation to Utility

Animoca Brands, driven by Yat Siu, envisages 2026 as the transformative year where cryptocurrency must evolve beyond the speculative bubble and focus on real utility. Siu critiques the overreliance on speculative assets, especially during the memecoin craze, which diverted significant liquidity away from more mature investments. The allure of quick gains faded as these speculative tokens experienced sharp declines.

As the trading frenzy subdued, there emerged an urgent call for crypto innovation to align closer with real-world applications. The focus is transitioning to delivering value through utility tokens — digital assets that provide practical and functional uses in ecosystems like gaming, content creation, and digital commerce. With tighter regulatory frameworks anticipated from the upcoming Clarity and GENIUS acts, the industry is moving towards a future where compliance and utility dictate the direction of growth.

Animoca’s Strategy with Altcoin Proxy IPO

To navigate through this evolving landscape, Animoca Brands has taken a strategic step to capitalize on the growing demand for diversified crypto exposure. The firm plans a reverse merger IPO with a Nasdaq-listed fintech firm, Currenc Group. This move aims to position Animoca as a SoftBank-style aggregator for altcoin exposure, offering investors a comprehensive portfolio of digital assets beyond Bitcoin.

This initiative reflects a growing recognition that while individual tokens like Ether or Solana offer direct investment opportunities, public investors crave a more diversified and holistic exposure to the broader altcoin market and Web3 architecture. By fostering over 620 portfolio companies and maintaining a consistent financial performance, Animoca is betting on an expanded investor base eager for more structured and legally compliant crypto investments.

Regulatory Frameworks as Catalysts for Growth

Siu’s anticipation of the regulatory environment is pivotal to the projected maturation of the crypto market. The Clarity and GENIUS acts promise to solidify rules around token issuance, classification, and oversight, which could encourage broader institutional engagement. Siu suggests that once regulatory boundaries are well-defined, a wave of established companies might enter the tokenization space, similar to how many businesses ventured into stablecoins once regulations were set.

This regulatory certainty is essential for the market’s next phase of growth, enabling firms to introduce tokens that are integrally linked with their core operations. Animoca’s engagement with real-world assets (RWAs) and tokenized securities forecasts a future where tokens are as commonplace in traditional finance as shares or bonds.

The Year of the Utility Token: Looking Ahead

As 2026 approaches, the outlook is being shaped by the imperative for cryptocurrencies to offer genuine solutions rather than mere speculative opportunities. The forthcoming year is expected to underscore a thematic shift where utility tokens, which inherently offer users practical benefits, form the cornerstone of crypto ventures.

The thriving sectors within the crypto space are poised to absorb elements such as stablecoins, AI integration, and Distributed Energy Productive Investment Networks (DePIN). These elements enrich the token economy, making it robust against speculative whims. For Animoca and similar firms, this transformation is not just about surviving the shifting economic winds but thriving by pioneering utility-driven token models.

The Necessity for Industry Maturity

The maturation of the crypto sector is not optional. As fewer new tokens are launched based solely on hype and more emphasis is placed on sustainable digital assets, both investors and consumers stand to benefit from a more predictable and regulated market. Yat Siu firmly believes that this evolution is already underway, driven by necessity rather than choice. The industry is steering towards innovations that align with daily digital interactions, ensuring that tokens are utilized in contexts beyond merely trading.

In 2026, the crypto landscape could very well resemble traditional, yet innovative, financial markets where digital assets work seamlessly alongside fiat systems. The goal is to attract a demographic that never regarded themselves as crypto enthusiasts by offering solutions that naturally weave into their online behaviors and needs.

The collective move toward these objectives represents not just an opportunity for individual companies but a paradigm shift for the entire digital financial ecosystem. Animoca Brands stands at the forefront of this transformation, advocating for and driving the change towards cryptocurrencies that yield tangible benefits to users and investors alike.

Conclusion: Adapting to the New Reality

For the crypto sector, the coming year heralds a chance to redefine its purpose and value proposition. The lessons from 2025’s market tribulations are prompting serious contemplation on the road ahead. It’s a moment of introspection where the industry must acknowledge its growing pains and adapt accordingly.

As companies like Animoca Brands strive towards this vision by actively engaging in tokenization initiatives and establishing robust market roots, the groundwork is being laid for a future where digital assets are second nature rather than speculative novelties. It’s no longer about whether crypto can mature, but how swiftly and effectively it does so within the regulatory frameworks being established worldwide.

The path to maturity is cleared by initiatives that demand practical utility, regulatory compliance, and comprehensive market integration. Embracing this path is crucial for ensuring the long-term resilience and sustainability of the crypto sector.

Frequently Asked Questions

What impact have Trump-era policies had on cryptocurrency?

Trump-era policies, particularly trade tariffs and economic confrontations, have contributed to increased volatility in crypto markets. These policies have impacted risk assets broadly, and cryptocurrencies like Bitcoin have experienced substantial value fluctuations as a result.

Why is 2026 considered pivotal for utility tokens?

2026 is pivotal as it marks a likely transition from speculative focus to utility-based crypto models. Regulatory clarity from acts like Clarity and GENIUS will enable companies to issue practical utility tokens, enhancing their real-world application.

How is Animoca Brands positioning itself in the crypto market?

Animoca Brands is positioning itself as an aggregator of altcoin exposure through a planned IPO, offering investors diversified access to the crypto market beyond individual token investments like Bitcoin or Ether.

What role do the Clarity and GENIUS acts play in the crypto industry’s future?

These acts are expected to provide a robust regulatory framework for digital assets, facilitating wider institutional participation and increasing market stability by clearly defining legal and operational guidelines for crypto exchanges and token issuances.

How should investors approach the changing cryptocurrency landscape?

Investors should focus on digital assets with clear utility and compliance records. As the market shifts towards regulated and practical crypto use-cases, investments in utility tokens that demonstrate tangible benefits are likely to offer sustained value.