With the new GENIUS Act being passed and the CLARITY bills gaining traction in Congress, the long-awaited clarity for digital assets regulation is approaching. This legal structure, sought after by the crypto industry, raises questions about whether existing players will still dominate in this new regulatory landscape.

In the past, ongoing debates about unclear regulations hindered the crypto sector in the U.S., leading to numerous lawsuits that paralyzed startups and caused significant capital migration away from the U.S. market. Millions of dollars found their way into competing firms like Coinbase and Robinhood, while over 3,300 U.S. broker-dealers were sidelined.

Cryptocurrency expanded robustly in four of the last five years, with only a downturn in 2022 due to the collapse of FTX. However, as the landscape shifts toward clearer regulations, broker-dealers have an opening to step into this lucrative market without facing major hurdles.

Also, SEC Commissioner Hester Peirce recently asserted that tokenized stocks qualify as securities, necessitating compliance with federal securities laws. Such statements aim to create equilibrium between traditional finance and digital assets.

Now, Wall Street is racing to catch up, launching new digital asset products and accumulating considerable assets in crypto ETFs. Financial giants like Citigroup and JPMorgan are also jumping into the stablecoin race.

With new opportunities arising for both retail and institutional investors, the traditional finance sector is gearing up for a substantial shift, taking cues from the rapidly evolving landscape of digital assets. It is imperative that existing firms adapt quickly to avoid being left behind.