Assuming we eventually get some clearer regulatory guidance from the SEC regarding digital assets, how do we anticipate this impacting institutional adoption and capital flows into established DeFi protocols? Would a clearer framework reduce perceived risk enough to unlock significant new capital?
While clarity would help, I'm not convinced it's a magic bullet. Institutional investors also care about liquidity, scalability, and integration with existing systems. Regulatory clarity is just one piece of a much larger puzzle they need to solve before committing significant capital.
Absolutely, clearer guidance would be a game-changer. The current uncertainty is a major hurdle for many traditional institutions, even those already interested in the tech. Once that risk is mitigated, expect to see a lot more conservative money move in.