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Breaking News: Trump Prepares To Allow Crypto Investments In $9 Trillion Retirement Market

How 2025 Provided the Perfect Storm for Onchain Privacy to Arrive

NewsBTC
NewsBTC
1 hour ago
5 mins read

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There’s been a few themes running through this year’s crypto bull market. Onchain agents. RWAs. Restaking. Stablecoins. And of course privacy. If you’ve been spending a lotta time in web3 lately, there’s a good chance you’ve caught conversations about advancing onchain privacy. Whether it’s the latest privacy-focused startups attracting millions in VC backing or a new L2 springing up to safeguard user data, privacy is a hot topic.

But what’s particularly interesting about this privacy renaissance, which its proponents have been dubbing a “privacy summer,” is who these calls are coming from. In the past, when the first wave of privacy protocols such as Zcash and Monero were gaining traction, it was cypherpunks, anarchists, and libertarians calling stridently for greater defenses against onchain surveillance. This time around, the argument is being made by everyone from web3 founders to Wall Street institutions. The Overton window has shifted and privacy, once verboten, is back on the agenda.

This is the story of how 2025 provided the perfect storm for onchain privacy to come of age – and of the projects turning this topic into a working reality.

The Legitimization of Crypto 

While this year’s crypto market has been driven by many overlapping narratives and metas, if there’s an overarching theme coursing through the industry it’s one of increased legitimacy. On January 20, Donald Trump was inaugurated as the 47th President of the United States and within 48 hours of officially taking office, he’d announced a pardon for Ross Ulbricht, the Silk Road founder whose life sentence without parole had made him a cult hero and cause celebré within the crypto community.

Ulbricht’s release was the first sign that America’s first pro-crypto President was intent on keeping his campaign promises. And more good news was to come as the new U.S. administration got to work in showing that it was now open for crypto business. In April, Paul Atkins was sworn in as the new SEC chair, replacing the crypto-averse Gary Gensler, providing further evidence of the industry’s legitimization under the Trump regime. 

Then in June, the GENIUS Act was signed into law by President Trump, just weeks after stablecoin issuer Circle had completed its IPO. The legislation provided clear guidance for U.S. businesses wishing to use and issue stablecoins, giving the green light to institutions that had been waiting on the sidelines for regulatory clarity before beginning to move money onchain. A month later, the CLARITY Act was passed, giving crypto exchanges and DeFi platforms greater certainty as to which assets they can list that don’t constitute securities, reducing the risk of regulatory enforcement.

These catalysts have uplifted the entire industry, as a glance at the performance of the leading crypto markets for the year to date clearly shows. Stablecoins are now being embedded into payment apps. Banks are rolling out crypto custody solutions. And on Wall Street, everyone from Goldman Sachs to JPMorgan is using blockchain. As the world has learned to not only live with crypto, but love it, the need for greater privacy has naturally crystallized. Rather than a forced meme, it is an idea whose time has come in order to facilitate the broad array of user groups and use cases that web3 now supports.

Progressive regulation under a crypto-friendly U.S. administration may have sent the clouds scurrying across the sky, but the perfect storm for privacy couldn’t have come about without another element also aligning – the maturation of the technology itself. In 2025, privacy tech has come of age as the following examples show.

The Maturation of Privacy Protocols

Institutions need onchain privacy to conceal proprietary trading algos and stop-losses. AI agents need them to keep user data private while performing tasks on their behalf. Crypto employers need it to conceal balances and salaries when paying employees. Retail users need it to avoid front-running and MEV exploits. And web3 dapps need it so they can verify users without being burdened with storing customer data. In 2025, everyone needs onchain privacy for a different reason – and everyone’s going to get it too, using various cryptographic technologies to facilitate this.

COTI has been making great strides with mainstreaming privacy, not just on its EVM-based Layer 2 but industry-wide, since its Garbled Circuits technology can be integrated anywhere to support private transactions. This enables users to not only conceal sensitive data, but to dictate who they share it with – be it no one, a trusted third party, or a specific auditor. It also helps that Garbled Circuits enables computations to be run on encrypted data, which is great for use cases such as AI.

Zama, meanwhile, has been working with Fully Homomorphic Encryption, having completed a $57M Series B that valued the company at over $1B. FHE can also work with encrypted data, allowing it to be fed into smart contracts for processing everything from customer data to AI-based diagnostics, all without disclosing sensitive information onchain. VCs have queued up to back Zama, providing incontestable proof that privacy is no longer a dirty word, but a major driver of web3 innovation.

Meanwhile, Midnight Network is working with Zero Knowledge Proofs to support the creation of pro-privacy dapps on Cardano. This allows users to interact with their favorite DeFi services and games without leaving a trail of breadcrumbs scattered across public blockchains that reveals everything about them. Midnight, like COTI and Zama, is intent on proving that privacy can be normalized while also maintaining compliance. The best of both worlds, in other words.

The Making of the Perfect Storm

In the past, it felt like there was a small group of blockchain users trying to shield their activities from the prying eyes of the world: from financial agencies; regulators; law enforcement; hackers. In 2025, there’s an army composed of different factions all trying to attend to their respective duties onchain without sharing sensitive data with the enemy – whether that’s other traders or other nations that form their direct competitors.

Now that everyone is onchain, everyone has something to hide. And the latest wave of privacy protocols enables that. Not only are they more granular than anything that’s gone before, allowing for selective disclosure and selective privacy, but they’re also lighter than previous implementations. This makes them practical for integrating into payment apps, PerpDEXes, and DeFi protocols without sending fees spiraling or causing congestion. Thanks to a combination of softer-touch regulations, greater institutional adoption, and more sophisticated tech, the perfect storm for privacy has arrived. The cloudburst is going to permeate every last facet of the multi-chain landscape, bringing opt-in privacy to users everywhere.

Image by Enrique from Pixabay

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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