TradFi firms wading deeper into crypto waters despite regulatory uncertainty
Despite the Securities and Exchange Commission’s crackdown on prominent participants in the industry, many traditional finance giants remain undeterred in their pursuit of crypto-related opportunities. Though regulatory clarity will be key for such companies, industry watchers said, financial heavyweights look to utilize their regulatory muscle and large client bases to move deeper into crypto in a bid to help shape the future of finance. Since the SEC sued Binance and Coinbase, competing exchanges have delisted tokens that the SEC deemed securities, including Robinhood, eToro, and Bakkt. The SEC kicked off 2023 with a lawsuit against Gemini and Genesis for allegedly mishandling customer funds. It telegraphed its lawsuit against Coinbase by slapping the company with a Wells notice in March. Despite the SEC’s ramp-up of enforcement actions in the space, certain TradFi firms are staying the course — seemingly viewing the space as a long-term play. BlackRock, Deutsche Bank, Citadel ...