Can US Keep Up With Other Markets On Digital Asset Regulation? 'Headwinds Are Turning Into Tailwinds,' Coinbase Exec Says

As the world looks toward 2025, a growing alignment between regulation and technology is paving the way for the broader adoption of digital assets.

At Benzinga’s Future of Digital Assets event, panelists expressed optimism about the direction of U.S. policy, noting a shift from regulatory headwinds to a more supportive environment. Gregg Wysocki of Coinbase described the change as a critical turning point. "The last four years with a major policy headwind…now feels as if those headwinds are turning into powerful tailwinds," he said.

Wysocki outlined the potential for expanded institutional involvement driven by more transparent regulations. He highlighted the opportunity for innovation and growth, adding, "It's just very exciting as to what kind of investment we can see in this new regime."

Maredith Hannon of WisdomTree echoed this sentiment, emphasizing the potential for the U.S. to accelerate adoption in response to global developments. "I think with MiCA and other areas of the world adopting regulation…it also provides a path for the U.S. to accelerate that," she said. Hannon added that this momentum could lead to the introduction of more products and greater market access for investors.

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Regional Hubs Lead the Way

Sandra Ro, CEO of the Global Blockchain Business Council, pointed to regional leaders adopting digital assets. "UAE has been absolutely dominating in terms of attracting talent and companies. So has Singapore. Hong Kong is trying to come online," she noted. Ro added that Japan is another country to watch, citing its efforts to organize regulatory and market structures as it vies for a stronger presence in the digital economy.

In Europe, the Markets in Crypto-Assets (MiCA) regulation is set to take effect at the end of December, a move expected to clarify rules and foster innovation. Ro emphasized the importance of this deadline, stating, "The reality is, the stuff is hitting reality, and I think what we will see is the regulatory frameworks that work in practice versus the ones that need further clarification and tweaking."

Public-Private Collaboration and Education

The panel also discussed the importance of public-private partnerships and industry-wide education in advancing adoption. Ro underscored the need for the industry to set high standards, emphasizing collaboration with regulators to build trust. "How do we actually ensure that we help regulators use the technology for their betterment?" she asked, suggesting that doing so would foster a more sustainable and transparent market.

Rajeev Bamra of Moody's highlighted sandbox initiatives as a critical collaboration component. "We are already seeing a lot of sandboxes,” Bamra said. It’s “allowing the industry to innovate within a certain framework," he added.

These initiatives create opportunities to test regulatory frameworks in real-world scenarios.

A Transformative Future

As regulatory clarity emerges and technological capabilities expand, the panelists anticipate a period of rapid evolution for digital assets. Ro describes 2025 as a time when the industry can achieve seamless integration of digital and traditional assets. The shift, she says, is "convergence."

The next phase of digital asset adoption appears poised to deliver on its promise of reshaping global finance. The discussion at Benzinga's event underscored the work that remains and the significant strides made toward that goal.

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