Crypto venture capital funding reached $8 billion in Q3 2025, driven by regulatory stability under the Trump administration. The pro-crypto stance and rise of tokenization have transformed regulation from a challenge into a competitive advantage, signaling a shift towards predictable frameworks and institutional exits. US-based funds accounted for one-third of the activity, with federal clarity on stablecoins and compliance attracting institutions back to the market. The Silicon Valley Venture Capitalist Confidence Index rebounded in Q2, indicating a recalibration towards fundamentals as policy replaces sentiment as the main risk compass. State Street reports that 60% of institutions plan to double digital-asset exposure within three years, with tokenized private equity and debt becoming key liquidity sources. Despite macroeconomic challenges, such as US debt concerns and AI speculation, the sector's new discipline is expected to hold, with tokenized funds becoming the standard for liquidity.