With the adoption of the law on engineering and increasing impulse behind the bills of clarity in the congress, the regulatory clarity of digital assets is finally at hand – having the legal framework that the cryptographic industry has long required. But as this clarity arrives, are crypto holders the real winners?
For years, the dominant account of the cryptographic industry has been that the regulations and unclear application would be cadru of the greatest economy in the greatest economy in the world. It did. The prosecution paralyzed startups. The capital has left American talents abroad.
A group has suffered the most: the more than 3,300 American brokers in the country. Boulé by federal laws, the brokers were forced to sit on the sidelines while billions of dollars rushed into the crypto which would otherwise belong to them. Retail investors have financed the rapid expansion of Coinbase, Robinhood and other Fintech Ravies companies to capitalize on demand.
The crypto has developed in the past four of the past four years – the only imperfection in 2022, spoiled by the FTX implosion. At the same time, the American brokerage industry has been inactive, pending advice on how to issue, trade and hold these assets.
The absence of regulatory clarity did not blocked the crypto – it has given the cryptography industry a multi -year step ahead in the capture of the market share and the loyalty to the brand. But as regulatory clarity accumulates, has Wall Street an advantage to the second engine in digital assets?
The path becomes clearer. In July, the SEC commissioner, Hester Peirce, said that tokenized actions were titles and had to comply with federal securities laws. His declaration followed the launch of Robinhood’s actions in the EU and sent a direct message: all securities products to Tokenized in the United States are subject to federal securities.
This declaration, in accordance with the previous directives of the SEC on the American modernization of the capital markets, levels the rules of the game for the holders and the disruptors by indicating that there will be no bypass of the federal laws on securities. Traditional finance and crypto are now on an equal footing.
Wall Street quickly moved to offer its own digital asset products. More than 170 billion dollars in assets flocked in 105 ETF Crypto exchanged on the US markets, BlackRock and Fidelity Amant more than $ 100 billion. Large banks – The head of the head more recently by Citigroup and JPMorgan – launch Stablecoins to ensure that payments pass on their rails. And it’s not just the biggest banks: the FISERV financial technology giant will provide regional banks with its new Stablecoin, FIUSD.
The new avenues offer retail and institutional investors opportunities to enter the market. Brokers can offer customers direct exposure to digital assets through a special -use broker correspondent without revising their infrastructure or requesting new licenses. This opens the door to E-Trade, Merrill Edge, Fidelity and others to meet the demand of customers of digital assets while remaining squarely within the limits of American law.
Internationally, the trend is also clear. Recently, Standard Charterd has become the first world bank of systemic importance to launch a Crypto Spot trading office, offering a bitcoin and an ether to institutional customers.
Ironically, it is now the inherited cryptography societies that run to embrace the regulated model that they formerly sought to bypass. Companies acquire brokers registered in the SEC, are looking for members of FINRA and apply to banking charters to extend their offers on brokerage and banking accounts.
The president of the SEC, Paul Atkins, said in May that “the titles are increasingly migrating traditional (or” out -chain “) databases to the Blockchain (or” on chain “). Its priorities are to “develop a rational regulatory framework for the markets of cryptographic assets which establishes clear rules of the road for the issuance, the custody and the trade in cryptographic assets”.
The vision of Atkins for the integration of blockchain into existing market infrastructures underlines a fundamental truth: the path to follow does not consist in creating parallel systems, but the upgrading of that existing. This promotes companies already imbued with compliance, exploitation and protection of investors. American brokers can benefit immediately given the introduction of corresponding compensation, membership of existing compliance structures, large customers and operational scale.
Beyond the brokers, the opportunity is now for Wall Street to direct the development of digital markets in the United States and cement the position of the country as a world leader in capital training, market integrity and financial innovation. Wall Street has infrastructure, regulatory clarity takes shape and investor demand is there. The question is now who will lead the next chapter.
