The SEC's shift to "generic listing standards" for crypto ETFs removes the bespoke, lengthy approval process for each fund. This mirrors a historical rule change in traditional finance that led to a 4X increase in ETF launches, signaling an imminent explosion of diverse crypto products.

Instead of ignoring client interest in assets like crypto, Som Seif argues firms should provide a safe, regulated way to engage. Saying "we don't do that" pushes clients elsewhere. Embracing their curiosity within a structured framework builds a stronger, more trusting relationship.

Circle's CEO chose to engage US regulators from the start in 2013, a harder path than competitors who went offshore. This "buttoned up" approach, while met with hate from crypto purists, established long-term trust and a competitive moat, which proved crucial for attracting institutional partners.

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.

Executives from both fintech and crypto-native firms agree that the engineering work is the most straightforward part of launching a crypto product. The primary obstacles lie in managing regulators, navigating state-by-state legal frameworks, and getting stakeholder buy-in, making legal and policy teams more critical than dev teams for go-to-market.

Unlike the typical 'ask for forgiveness' tech playbook, Kalshi spent years getting CFTC approval before launching. They believed that for regulated industries like finance, establishing a legal, credible foundation was the most critical problem to solve for achieving mainstream and institutional adoption, not early growth.

Prediction market Kalshi adopted a "regulatory-first" approach, similar to Coinbase. This difficult path built essential trust, directly enabling partnerships with Robinhood, Coinbase, and CNN, demonstrating how compliance can be a powerful moat and business development tool.

To maintain high velocity, Robinhood integrates legal and compliance partners into product development from the very beginning. By making them co-owners of the product vision, they become creative problem-solvers rather than end-stage blockers, which is crucial for shipping quickly in a regulated industry.

Instead of viewing regulation as a barrier, Kalshi approached the CFTC as a key stakeholder in a product development process. They engaged in an iterative cycle of feedback and adjustments, akin to building a product, to co-design a compliant system. This concept of achieving 'regulatory market fit' was central to their launch.