This uncertainty creates opportunities as well as risks, as traditional financial institutions (TradFi) accelerate their entry into digital assets. TradFi’s sophisticated regulatory strategies, honed over decades of navigating complex compliance environments, are better positioned than smaller crypto-native companies. As major players launch products such as Bitcoin ETFs and tokenized funds, innovators without regulatory expertise could be squeezed out unless they adapt to emerging frameworks such as those offered by the Stablecoin Standardwhich proposes voluntary requirements for transparency, operational resilience and support for reserves. This model could provide a path for other innovators to meet compliance expectations and accelerate growth and adoption.
