With the approval of the Genius Law and the growing impulse behind the clarity bill in Congress, regulatory clarity for digital assets is finally available, which requires the legal framework that the cryptographic industry demanded for a long time. But as that clarity comes, are the heads of the crypto the true winners?
For years, the dominant narrative of the cryptographic industry was that the unclear regulation and application shuddered the industry in the world’s largest economy. He did it. Paralyzed Startup demands. Capital left American talent flowed abroad.
A group suffered above all: the more than 3,300 American stockbroops. Overido by federal laws, stockbrokers were forced to sit outside, since billions of dollars flowed to cryptography that would otherwise be his. Retail investors financed the rapid expansion of Coinbase, Robinhood and other Fintech companies happy to capitalize on the demand.
Crypto grew in four of the last five years, the only stain of 2022, tarnished by the FTX implosion. At the same time, the US brokerage industry was inactive, waiting for guidance on how to issue, trade and custody these assets.
The lack of regulatory clarity did not block cryptography, gave the cryptographic industry a several years to capture the market share and the construction of loyalty to the brand. But as regulatory clarity is exacerbated, does Wall Street have an advantage of second movement in digital assets?
The road is becoming clearer. In July, the SEC Commissioner Hester Peirce said that tokenized actions are values and must comply with federal values of values. His statement followed the launch of Tokenized Robinhood actions in the EU and sent a direct message: any product of tokenized values in the US. UU. It is subject to federal laws of values.
This statement, in line with the prior orientation of the SEC on the modernization of the capital markets of the USA. UU., Levels the field of playing for holders and disruptors indicating that there will be no choice of federal laws of values. Traditional finances and cryptography are now on equal terms.
Wall Street has moved quickly to offer its own digital asset products. More than $ 170 billion in assets flowed to 105 Cryptographic ETFs that were negotiated in US markets, with Blackrock and Fidelity accumulating more than $ 100 billion. The big banks, more recently lit by Citigroup and JPMorgan, are launching Stablecoins to ensure that payments are on their rails. And they are not just the largest banks: the Fiserv Finanvation Technology giant will provide regional banks for their new stablecoin, Fiusd.
The new roads provide retail and institutional investors opportunities to enter the market. Bag runners can offer customers direct exposure to digital assets through a correspondent that clarifies the special purpose stockbroker without reviewing their infrastructure or requesting new licenses. This opens the door for E-Trade, Merrill Edge, Fidelity and others to meet the demand of clients of digital assets while remaining directly within the limits of US law.
Internationally, the trend is also clear. Recently, Standard Chartered became the first systemically important global bank in launching a spot cryptography trade table, offering Bitcoin and ether to institutional clients.
Ironically, now are the inherited cryptographic firms that are running to embrace the regulated model they once sought to avoid. Companies are acquiring stockbrokers registered in the SEC, seek Finra membership and request bank charters to extend their offers to brokerage and bank accounts.
The president of the SEC, Paul Atkins, said in May that “values are increasingly migrating from the traditional (or “Out of chain”) databases to blockchain based on (or “in chain”) Accounting systems. “Its priorities are” to develop a rational regulatory framework for cryptographic asset markets that establish clear rules of the way for the issuance, custody and trade of cryptographic assets. “
Atkins’ vision to integrate blockchain into the existing market infrastructure underlines a fundamental truth: the way to follow is not about creating parallel systems, but about updating the existing one. This favors companies already full of compliance, operations and protections of investors. The United States runners can immediately benefit from this given the introduction of correspondent compensation, compliance with existing compliance structures, the large customer base and the operational scale.
Beyond the stockbrokers, the opportunity now is that Wall Street leads the development of digital markets in the United States and consolidate the country’s position as a world leader in capital formation, market integrity and financial innovation. Wall Street has infrastructure, regulatory clarity is taking shape and demand for investors is there. The question now is who will direct the next chapter.
