Blockchain.com co-CEO Lane Kasselman says regulatory changes have shifted crypto markets toward institutional investors, while the cost of complying with U.S. rules gives established firms an advantage over startups.
In an Oct. 20 interview with Bitcoin Magazine, Kasselman said businesses operating across the United States must obtain money transmitter licenses in most states. He said Blockchain.com can manage those requirements more easily than a new company and called for a federal approach to simplify nationwide operations.
Kasselman described a different mix of investors in 2021, when he said individual traders led the market and much of the institutional activity came from offshore crypto hedge funds. He credited clearer rules in the European Union and United Kingdom, as well as regulatory developments elsewhere, with opening more room for professional firms. That assessment is his view of the market, rather than a measured share of trading activity.
Blockchain.com is also expanding its tokenized securities business. On Feb. 3, the company announced that eligible European customers could access tokenized U.S. stocks and exchange-traded funds through its partnership with Ondo Finance. Blockchain.com describes the products as providing exposure to the economic performance of the securities they represent.
The company and NYSE Group, Inc. signed a memorandum of understanding on Sept. 23 to explore wider distribution of tokenized U.S. stocks and exchange-traded funds. Kasselman cast distribution as Blockchain.com’s opportunity, arguing that fewer firms can bring tokenized assets to customers than can issue them.
The expansion sits alongside other products: Blockchain.com introduced options trading on seven crypto assets for eligible customers on Oct. 20. Kasselman said the offering responds to demand for more sophisticated trading tools.
On U.S. policy, Kasselman said support for digital assets spans both major parties, although the Clarity Act had not passed. He also pointed to unfinished rulemaking involving the SEC and CFTC as consequential for the industry. The proposed NYSE Group distribution plan requires regulatory approvals; the companies have announced no launch date.
