Author of the opinion: Kevin de Patoul, Co-founder and CEO of Keyrock

Cryptocurrency now has a sense of déjà vu. Real World Assets (RWA), tokenized funds, and on-chain treasuries are all buzzwords we've been discussing for years. In 2022, when the hype far exceeded actual adoption, a report from Boston Consulting Group (BCG) predicted that the total size of tokenized assets could reach $16 trillion by 2030, up from a current market value of $50 billion in 2025.

This time feels slightly different, not just because giants like BlackRock are launching tokenized money market funds, or because Circle's USDC has become the factual settlement layer for on-chain government bonds.

Rather, it’s because the narrative has finally collided with reality: real businesses, real cash flows, and real compliance.

However, despite this momentum, one thing still drags the industry to the brink of regression: the pursuit of an idealized regulatory framework.

The future of finance is digital. Every asset class, from bonds to real estate, will ultimately exist in tokenized form, and when it does, it must offer more than just a digital replica. Digitization will mean faster, cheaper, and more accessible markets.

If institutions cannot allocate capital at scale, none of this matters. Institutions are allergic to uncertainty, and that will never change. The issue is not that regulators are not acting. It’s that the current approach prioritizes theoretical integrity over practical clarity.

Universal frameworks, seamless cross-border rules, and global coordination sound good on paper. However, in practice, they lead to paralysis. People talk about traditional finance (TradFi) having a "global system," but it’s unclear if that’s strictly correct. The Basel III agreement in Europe differs from banking rules in the United States. Cryptocurrency is not uniquely fragmented. In general, global finance is isolated. Waiting for an elusive one-size-fits-all solution will delay progress.

This reality of fragmentation is visible in major markets. In the U.S., tokenized stocks are clearly defined as securities. MiCA in Europe provides a popular overall framework, but its limitations have become evident, especially in areas like decentralized finance (DeFi). Singapore allows institutional investors to invest in tokenized bonds while blocking public retail participation.

These examples are not regulatory failures. They demonstrate that regulation is evolving. The challenge is not regulatory ambiguity, but the lack of market infrastructure and strong demand; the tracks are in place but ultimately underutilized. Markets can operate under imperfect rules. If everyone stays on the sidelines, they cannot operate.

Institutions hesitate not because they dislike blockchain. Rather, it’s because no one wants to explain to their board or regulators why they support assets that could potentially be retroactively deemed in violation of existing laws.

The conversion costs for banks lie in dismantling and rebuilding, making it difficult to justify such a radical overhaul for what they still consider a niche market. In some regions, you can confidently deploy capital and services. In others, even slight licensing gaps force participants to sit on the sidelines.

Uncertainty not only slows adoption. It drives up the cost of legal opinions, forcing companies to isolate entire business units and weakening cross-border liquidity. Each jurisdiction becomes its own legal minefield. This is not just a technical issue. It is a deep, systemic problem of regulatory clarity.

The fact is, cryptocurrency can thrive without perfect global regulation. Traditional capital markets have operated for decades under anything but a unified framework. What matters is a baseline level of clarity and consistency, sufficient for companies to assess and price risk. Take shadow banking as an example: a $60 trillion system coexisting with formal regulation rather than outside of it. It is complex and imperfect, but it works.

This is not about relaxing regulation. It is about distinguishing between necessary safeguards and unattainable idealism. Fraud prevention and investor protection are important, but they do not require a perfect global framework.

For regulators, the path forward is to prioritize iterative clarity and release rules, even if they will evolve. Progress today is better than perfection tomorrow. For financial institutions, the biggest risk is falling behind. Tokenization will not wait for certainty; agile participants are already building in jurisdictions that provide workable guidance. For cryptocurrency builders, the challenge is to stop waiting for external validation and operate within the legal frameworks available today while actively pushing for incremental improvements.

The value of tokenization is not just a novelty for cryptocurrency insiders. It is about solving real problems—settlement times measured in days rather than seconds, capital stuck in reconciliation, and asset classes locked behind jurisdictional walls.

Stablecoins have already shown the blueprint. When regulators provide clarity, even imperfect clarity, adoption will explode. Tokenized securities can follow—but only if we stop viewing regulation as a binary choice between "perfect" and "broken." Some critics may see this as settling for mediocrity, but iterative progress is the way for the financial system to mature.

Cryptocurrency has moved beyond speculative memes. We are dealing with cash-positive businesses moving real funds onto the chain. If there is a moment to embrace iterative progress, it is now. Companies willing to operate in a clear (if evolving) regulatory environment will define the next chapter of finance.

Progress equals momentum, not perfection. If the industry is forced to wait on the sidelines for the integrity of the framework, the digital asset revolution will remain a frustrating theoretical state.

Author of the opinion: Kevin de Patoul, Co-founder and CEO of Keyrock.

Related: Crypto leaders join CFTC digital asset group, JPMorgan executive appointed as co-chair

This article is for general informational purposes only and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Original article: Opinion: Cryptocurrency Can't Afford Perfect Regulation

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