Crypto regulation is shifting from an enforcement-heavy approach toward establishing clear, tech-neutral standards that prioritize market integrity and investor protection. While smart contract security has matured, operational failures and poor governance remain primary vulnerabilities, necessitating stricter internal controls. Regulators, particularly the CFTC, are increasingly critical in bringing complex products like perpetual futures onshore, provided they maintain a principles-based framework. The industry must reframe its approach to illicit finance by acknowledging the tangible harm to victims and national security, rather than viewing hacks as isolated technical glitches. Privacy technology, including zero-knowledge proofs, offers a path to reconcile financial transparency with essential user privacy. Ultimately, the convergence of traditional finance and decentralized systems depends on building usable, secure infrastructure that translates complex blockchain capabilities into reliable, institutional-grade tools.
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