Crypto adoption in Australia has stagnated in 2025, with nearly 60% of Australians expressing distrust in the market due to unclear regulatory frameworks. Despite government efforts, including a four-pillar agenda and new legislation targeting stablecoins and exchanges, public confidence remains low. The Senate's recent passage of the Payments System Modernization Bill in September aims to expand regulatory oversight of digital platforms. Younger investors, particularly Gen Z, continue to lead market participation, while older demographics remain hesitant. Swyftx estimates that 1.6 million Australians could enter the market once regulations are clarified.