Crypto’s Next Cycle Belongs To Banks, Not Token Narrative
Flashy protocols or smart token mechanics won’t lead the next cycle in crypto. Instead, it will be led by companies that did the “boring” work of obtaining licenses, building compliance systems, and securing distribution through banks and regulated channels. At the same time, the markets were focused on speculation.
Everyone can already see that reality in the number of deals being made, the growth of stablecoins, and the steady entry of traditional banks into the crypto space.
Although the cryptocurrency industry was once referred to as the “Wild West” due to a lack of clear-cut regulation, as well as its perceived disregard for existing rules, this viewpoint is now a competitive disadvantage. Major jurisdictions are tightening their oversight, and the companies that can function under scrutiny and integrate with the current financial rails will be the ones to survive.
Put simply, the winners of the next phase will resemble financial utilities designed for scale, rather than startups chasing hype.
Compliance Is the Real Moat
The clearest signal of the argument above comes from consolidation. According to the Financial Times, there were 267 crypto mergers and acquisitions worth $8.6 billion in 2025. This total was four times more than the year before.
These included Coinbase’s $2.9 billion acquisition of Deribit, Kraken’s purchase of NinjaTrader, and Ripple’s acquisition of Hidden Road. These were deliberate moves to obtain access to traditional markets, licenses, and regulated infrastructure rather than token plays or talent grabs.
Legal experts quoted in the same report pointed to a rush for regulatory approval as a primary motive behind these deals. When firms pay billions for regulated entities, it signals that compliance is no longer a box to tick later – it is an asset.
This trend has also been strengthened by changes in European and Washington policy. While the European Union’s MiCA regime has transitioned from theory to implementation, the U.S. GENIUS Act established a federal framework for stablecoins.
Furthermore, the Financial Conduct Authority in the UK has instructed cryptocurrency companies to get ready for full authorization in advance of its 2027 regime. All told, it means that digital asset businesses that view licensing as optional will be forced to the periphery of the market.
These developments expose a critical miscalculation by parts of …
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