Traditional financial institutions are now driving the conversation in the crypto industry, and they’re set to reap the biggest rewards, according to Arthur Azizov, founder of B2 Ventures, an alliance of crypto services and fintech companies. Azizov says this market cycle is dominated by institutional players, including big banks, exchange-traded funds (ETFs), governments, and stablecoin issuers.

He predicts that once major banks gain regulatory clarity to handle crypto, they could launch their own stablecoins within months. With massive customer bases and loyal clients, these banks could integrate crypto quickly and seamlessly, giving them a competitive advantage over smaller startups.

Azizov warns that this shift is already changing the industry landscape — and the balance of power. “In the future, it’s going to change even more, and it’s not good for small startups,” he says. The move toward institutional dominance has also widened the divide between traditional finance and the cypherpunk vision of a fully decentralized system.

Governments are playing a central role in this transition. Azizov points out that regulatory efforts are not only about consumer protection, but also about attracting tech companies, young talent, and fintech startups. This push for regulation comes with stricter compliance, including expanded anti-money laundering (AML) and Know Your Customer (KYC) rules.

These requirements are already standard for retail crypto apps in the Asia-Pacific and Europe, and Azizov expects the U.S. to follow. However, critics say this focus on surveillance and identity checks undermines decentralized finance’s core promise: permissionless, censorship-resistant access to global markets.