Crypto Market Poised for Q4 Boost from New Legislation, Stablecoins, and ETF Inflows

The final quarter of the year could bring a fresh wave of momentum to digital assets as new U.S. regulations, stablecoin adoption, and a growing number of ETPs set the stage for broader market participation. 

In a Thursday report, research analysts at crypto asset manager Grayscale highlighted several key drivers that could spur prices after a quiet third quarter dominated by digital treasury assets.

Grayscale pointed to the proposed CLARITY Act, a sweeping U.S. market structure bill, as a potential game changer. Describing it as “comprehensive financial services legislation,” the firm said the act could serve as a catalyst for deeper integration between cryptocurrency markets and traditional finance. If passed, it would establish clearer rules for digital asset trading venues and investor protections, paving the way for institutional investors to engage more confidently.

ETP Market Expansion and Federal Reserve Policy

Another tailwind comes from the SEC’s approval of generic listing standards for commodity-based ETPs. This move allows a wider range of crypto-related products to list without individual approvals, which Grayscale said should increase the “number of crypto assets accessible to U.S. investors.”

Monetary policy may add fuel to the rally. The Federal Reserve’s September 17 rate cut, its first in over a year, could make risk assets more attractive if borrowing costs continue to decline. Grayscale expects crypto assets to benefit from this trend. However, JPMorgan CEO Jamie Dimon warned that further rate cuts could be difficult unless inflation eases significantly, tempering some of the market’s optimism.

Stablecoins and Tokenization Gain Ground

U.S. President Donald Trump’s signing of the GENIUS Act in July also sets the stage for stablecoin growth. The law aims to create clear rules for payment stablecoins, though final regulations are still pending. Analysts believe these guidelines will give institutions the confidence to issue and use tokenized money market funds, bank deposits, and exchange-traded funds, accelerating the broader tokenization of traditional financial products.

Institutional demand remains strong in the Bitcoin market as well. A recent report from financial services firm River noted that ETFs are absorbing an average of 1,755 Bitcoin per day in 2025, signaling robust appetite for crypto exposure.

Meanwhile, stablecoins have already shown remarkable resilience and expansion this year. According to recent data, the total stablecoin market capitalization has climbed past $300 billion in 2025, up roughly 25% since January.