Regulatory Clarity for Digital Assets Emerges as Wall Street Moves In
The passage of the GENIUS Act and momentum behind the CLARITY bills signal impending regulatory clarity for digital assets in the U.S. This shift could favor crypto incumbents, who previously benefited from unclear regulations.
- Unclear regulations hindered U.S. broker-dealers, leading to loss of capital and talent as billions flowed into crypto.
- Crypto market grew in four of the last five years, with 2022's decline attributed to the FTX crisis.
- SEC Commissioner Hester Peirce confirmed tokenized stocks are securities under federal law, ensuring compliance for both traditional finance and crypto.
- Over $170 billion entered U.S. crypto ETFs, with major firms like BlackRock and Fidelity leading the charge.
- Traditional banks are launching stablecoins to facilitate payments, while fintechs adapt to meet demand without extensive regulatory changes.
- Standard Chartered launched a spot crypto trading desk, becoming the first major bank to do so.
- Legacy crypto firms are now acquiring SEC-registered broker-dealers and pursuing compliance to integrate more fully into regulated finance.
- SEC Chairman Paul Atkins aims to create a rational regulatory framework that incorporates blockchain into existing systems.
- Wall Street has the infrastructure and regulatory clarity to lead the development of digital markets in the U.S.