At the beginning of 2025, the crypto industry stands at a pivotal juncture, with regulatory clarity emerging after years of uncertainty.
Neil Bergquist, CEO of crypto exchange and bitcoin ATM operator Coinme, sees a critical role for established financial infrastructure in the push for more mainstream crypto adoption.
“The vast majority of the market is still custodying crypto with large centralized exchanges because it’s easy,” he says.
The Regulatory Pendulum Swings
The regulatory environment has been challenging for crypto companies in recent years. The Financial Times reported that regulatory actions and lawsuits have cost U.S. crypto companies more than $400 million.
“Speaking as someone trying as hard as we can to build fast and make crypto use cases alive today, there’s still a gap between what’s possible and what’s available,” says Bergquist.
This gap stems partly from regulatory uncertainty that has kept financial institutions on the sidelines.
“In the previous bull market cycle, we were talking to a lot of banks who wanted to offer digital currency services,” recalls Bergquist. “Those partnerships quickly evaporated after the FTX fiasco.”
The hope is that this reticence is evaporating, particularly given signals of a more crypto-friendly regulatory environment following the 2024 U.S. presidential election.
A Bipartisan Path Forward
Despite past setbacks, crypto regulation has found increasing support across party lines. Congressional initiatives are now focused on providing guidance for safe industry growth rather than imposing blanket restrictions.
“It’s not supposed to be a red or blue thing,” says Bergquist. “Several people in Congress have highlighted that. There are a lot of crypto bills that have bipartisan support. Just the fact that there are crypto bills in Congress is a totally new world.”
While federal regulations grab headlines, state-level oversight continues to shape day-to-day operations for crypto businesses.
“We’ve gone to every state and educated them on bitcoin and blockchain, and they’ve given us determinations,” Bergquist says. “There are some states that heavily regulate it, and there are some states that say, ‘Bitcoin’s not money, and we regulate financial institutions, so therefore we don’t regulate you.’”
The Future of Crypto Infrastructure
Bergquist points to stablecoins as a key area where clearer regulations could unlock new possibilities.
“USDC, which is essentially a dollar on a blockchain, is available 24/7. You can move it around like an email,” he explains.
“Imagine if your online bank account gave you choices to move your money. With crypto, you can just move your money around as you please. We’re seeing a lot of demand in the marketplace from partners that are really focused on creating a seamless fiat on- and off-ramp. Interoperability is really important. We want to enable those who have crypto to be able to spend it for goods or services.”
For bitcoin ATM operators, the ability to integrate with traditional banking infrastructure is crucial. “If you have a token and you want someone to be able to buy it, you’re going to need to offer a fiat payment processing to be able to purchase that token,” says Bergquist. “That’s where Coinme comes in.”
Businesses could also begin to encourage digital currency use, similar to offering discounts for cash payments, as a way to bypass traditional card processing fees.
“We’ve all seen signs that say pay in cash and get a discount,” says Bergquist. “I think we will see something very similar around digital currency.”
Bergquist thinks that traditional financial institutions will eventually return to the crypto space once regulatory clarity emerges.
He cited Bank of America data on crypto enthusiasm among investors under 40. Its annual survey of wealthy Americans found that 28% of investors aged 21 to 43 consider crypto and digital assets to have growth potential, compared to 4% of investors over 44 who hold the same view.
“Data like that makes banks really want to participate, but the regulation hasn’t been there and has not been supportive,” says Bergquist.
Building for the Long Term
The road to regulatory clarity hasn’t been straight. Major setbacks like the FTX collapse have complicated the relationship between regulators and the crypto industry. However, enthusiasts maintain that these events have ultimately pushed the industry toward better practices.
“There’s actually less money laundering fraud in crypto than there is in fiat,” says Bergquist.
“Certainly, some of these big events have been distractions and headwinds, and that’s been unfortunate for consumer adoption, for B2B adoption, and for regulatory support. There have been really high-profile fake-outs, but we shouldn’t conclude that crypto is bad. [FTX’s] Sam Bankman-Fried was a bad actor who exploited crypto.”
The measured pace of regulatory progress has taught crypto companies valuable lessons about patience and persistence. “Ideas are easy, execution is very difficult,” says Bergquist. “Making it happen takes a very long time. Sometimes it’s more like an iceberg than it is like an earthquake.”
Rather than rushing to market with untested ideas, companies can build more robust infrastructure while regulators decide on clear frameworks for oversight. The focus remains on creating accessible on-ramps that work within regulatory guidelines.
Views, thoughts, and opinions expressed in this article belong solely to the author, and not necessarily to the author’s employer, organization, committee, or other group or individual.
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