Wall Street Is Moving Into Crypto, but Regulatory Barriers Remain, Executives Say

MIAMI — Wall Street financial firms are actively integrating cryptocurrency infrastructure and tokenized real-world assets, but significant regulatory obstacles continue to slow the pace of adoption, according to executives speaking at the Consensus 2026 conference.

In a panel discussion on Tuesday, leaders from Ondo Finance, Robinhood, and Babylon Labs agreed that institutional interest in digital assets has shifted from theoretical exploration to concrete implementation. However, they emphasized that legacy financial systems and unclear regulations remain formidable barriers.

Clear Signs of Institutional Entry

Ian de Bode, Chief Strategy Officer at Ondo Finance, described Wall Street’s move into crypto as unmistakable. He pointed to the recent partnership between Broadridge and the Depository Trust & Clearing Corporation (DTCC) as a significant example of traditional financial infrastructure adapting to blockchain-based systems. “This is no longer a pilot project or an R&D exercise,” de Bode said. “Major institutions are committing real capital and resources to build on these rails.”

Nicola White, a senior executive at Robinhood, added that the conversation among banks has fundamentally changed. “They are no longer asking what blockchain is,” she said. “They are asking how to build on it and how to do so compliantly.” White noted that the demand for tokenized assets, including bonds, funds, and real estate, is growing rapidly among institutional clients.

Regulatory Constraints Remain a Bottleneck

Despite the clear momentum, all panelists acknowledged that regulatory uncertainty continues to hinder full-scale adoption. White pointed out that many banks operate under robust legacy compliance frameworks that were not designed for digital assets. “The existing rules were built for a different era,” she said. “Adapting them to accommodate tokenized securities and crypto custody requires clarity from regulators, and that clarity is still incomplete in many jurisdictions.”

Representatives from Babylon Labs echoed this sentiment, noting that cross-border regulatory fragmentation adds complexity for firms operating globally. Without consistent standards, institutions face higher legal costs and operational risks.

What This Means for the Market

The comments from Consensus 2026 underscore a pivotal moment for the crypto industry. While retail interest has driven much of the market’s growth in past cycles, institutional participation could bring deeper liquidity, greater stability, and broader acceptance. However, the pace of that transition depends heavily on regulatory developments in the United States and other major economies.

For investors and industry observers, the key takeaway is that the infrastructure for institutional crypto adoption is being built now, but the regulatory framework has not yet caught up. The coming months may determine whether the United States maintains its competitive edge in digital finance or cedes ground to jurisdictions with clearer rules.

Conclusion

The panel at Consensus 2026 reinforced a growing consensus: Wall Street is serious about crypto, but regulatory hurdles are the single biggest factor determining how fast and how far the industry can grow. As executives push for clearer guidelines, the conversation has shifted from whether institutions will enter the space to when and under what conditions they will fully commit.

FAQs

Q1: Why are Wall Street firms interested in crypto now?
Institutions are drawn to the efficiency gains from blockchain-based settlement, the potential for new revenue streams through tokenized assets, and growing client demand for digital asset exposure.

Q2: What are the main regulatory hurdles for institutional crypto adoption?
Key issues include unclear custody rules, inconsistent state and federal regulations, lack of a comprehensive stablecoin framework, and uncertainty around how existing securities laws apply to tokenized assets.

Q3: How might regulatory clarity affect the crypto market?
Clearer rules would likely accelerate institutional participation, increase market liquidity, reduce volatility, and pave the way for more mainstream financial products tied to digital assets.