The retreat of the cypherpunk ethos is evident as traditional financial institutions increasingly influence crypto narratives. Arthur Azizov, founder of B2 Ventures, emphasizes that this market cycle is driven significantly by investment vehicles like Bitcoin ETFs, which attract substantial capital. He predicts that big banks will soon adopt crypto solutions, particularly stablecoins, once regulatory clarity is achieved, benefiting from their existing loyal customer base. This shift raises concerns for smaller startups as institutional presence grows. Additionally, governments recognize economic incentives to regulate crypto, allowing for greater integration with conventional financial systems. As regulatory focus intensifies on anti-money laundering (AML) and know your customer (KYC) processes, particularly in the U.S., it contradicts the decentralized finance (DeFi) principle of permissionless access, challenging the foundational values of cryptocurrencies.

Source 🔗