Contrary to belief, the crypto industry's primary need is not deregulation but clear, predictable rules. The ambiguous "regulation through enforcement" approach, where rules are defined via prosecution, creates uncertainty that drives innovation and capital offshore.

Unlike competitors using crypto to operate outside regulatory frameworks, Kalshi's CEO views on-chain technology as a tool to enhance a regulated system. He envisions using it for clearing to improve immutability and transparency, enabling a permissionless ecosystem built upon a compliant foundation.

Cryptocurrency's strategic impact isn't its potential to replace the entire financial system, but its ability to absorb the relatively small but critical volume of global transactions related to crime and sanctions evasion, where it can be uniquely effective.

Widespread adoption of blockchain, particularly stablecoins, has been hindered by a "semi-illegal" regulatory environment in the U.S. (e.g., Operation Chokepoint). Now that this barrier is removed, major financial players are racing to integrate the technology, likely making it common within a year.

While the early crypto market was dominated by cypherpunks advocating for anonymity, Coinbase took the opposite approach. They worked with banks and implemented KYC, betting that mainstream adoption required a compliant, trusted platform, even though it alienated the initial user base.

Maja Vujinovic posits that Gary Gensler, despite his pro-crypto past, was strategically positioned by banks to slow innovation. This regulatory friction gave traditional financial institutions the necessary time to understand the technology and formulate their own digital asset strategies before competing.

The immediate value for crypto is lower in the US, where traditional finance offers decent consumer protection. In countries with less reliable banking systems, crypto provides a much larger, more immediate leap in security and efficiency, accelerating its adoption.

The adoption of superior technologies like cryptocurrency is often hindered by the entrenched power of incumbents like banks and regulators. The ultimate victory for crypto may not come from winning arguments, but from a generational shift as older, resistant leaders pass away.

In past cycles, corporate interest in crypto was reactive to retail frenzy and often insincere. This time, financial institutions are building lasting tech and defining clear business cases, such as cost reduction and new product offerings, signaling a fundamental shift toward sustainable integration.